Question 1

or more competitors explicitly or implicitly setting prices is referred to as __________.

Accepted Answer

A)  competitive collusion 
B)  vertical price fixing 
C)  horizontal price fixing 
D)  lateral price fixing 
E)  price cooperation 
A)  competitive collusion 
B)  vertical price fixing 
C)  horizontal price fixing 
D)  lateral price fixing 
E)  price cooperation

Question 2

Instead of everyday low prices (EDLP),supermarkets prefer a __________ approach,which is based on frequent specials where prices are temporarily lowered for a brief period of time and then raised again.

Accepted Answer

A)  odd-even pricing 
B)  a one-price policy 
C)  hi-lo pricing 
D)  bundle-pricing 
E)  flexible-pricing 
A)  odd-even pricing 
B)  a one-price policy 
C)  hi-lo pricing 
D)  bundle-pricing 
E)  flexible-pricing

Question 3

of the following are profit-oriented approaches to selecting an approximate price level EXCEPT:

Accepted Answer

A)  target ROI pricing. 
B)  target return-on-investment pricing. 
C)  target return-on-sales pricing. 
D)  target profit pricing. 
E)  cost-plus percentage-of-cost pricing. 
A)  target ROI pricing. 
B)  target return-on-investment pricing. 
C)  target return-on-sales pricing. 
D)  target profit pricing. 
E)  cost-plus percentage-of-cost pricing.

Question 4

Figure 14-8
-Consider Figure 14-8 above."A" represents which of the following legislative acts?

Accepted Answer

A)  The Robinson-Patman Act 
B)  The Clayton Act 
C)  The Sherman Act 
D)  The Federal Trade Commission Act 
E)  The Consumer Goods Pricing Act 
A)  The Robinson-Patman Act 
B)  The Clayton Act 
C)  The Sherman Act 
D)  The Federal Trade Commission Act 
E)  The Consumer Goods Pricing Act

Question 5

is the difference between noncumulative and cumulative quantity discounts?

Accepted Answer

Noncumulative quantity discounts are bas

Question 6

Toro Ad
-is it called when a manufacturer offers discounts to resellers in the marketing channel on the basis of where they are in the channel?

Accepted Answer

A)  seasonal discounts 
B)  trade discounts 
C)  cash discounts 
D)  promotional allowances 
E)  trade-in allowances 
A)  seasonal discounts 
B)  trade discounts 
C)  cash discounts 
D)  promotional allowances 
E)  trade-in allowances

Question 7

trade-in allowance refers to

Accepted Answer

A)  a noncash exchange of one product for another of equal or greater value. 
B)  a cash-back payment when a more expensive item is replaced with a less expensive item. 
C)  a price reduction given when a used product is part of the payment on a new product. 
D)  the return of money based on proof of purchase. 
E)  a cash payment to a retailer for extra in-store support or special featuring of the brand. 
A)  a noncash exchange of one product for another of equal or greater value. 
B)  a cash-back payment when a more expensive item is replaced with a less expensive item. 
C)  a price reduction given when a used product is part of the payment on a new product. 
D)  the return of money based on proof of purchase. 
E)  a cash payment to a retailer for extra in-store support or special featuring of the brand.

Question 8

Figure 14-6
-Figure 14-6 above shows the three types of special adjustments to list or quoted price."C" represents

Accepted Answer

A)  demand-oriented price adjustments. 
B)  allowances. 
C)  discounts. 
D)  customary pricing adjustments. 
E)  geographical adjustments. 
A)  demand-oriented price adjustments. 
B)  allowances. 
C)  discounts. 
D)  customary pricing adjustments. 
E)  geographical adjustments.

Question 9

Figure 14-6
-Figure 14-6 above shows the three types of special adjustments to list or quoted price."A" represents

Accepted Answer

A)  demand-oriented price adjustments. 
B)  allowances. 
C)  geographical adjustments. 
D)  discounts. 
E)  customary pricing adjustments. 
A)  demand-oriented price adjustments. 
B)  allowances. 
C)  geographical adjustments. 
D)  discounts. 
E)  customary pricing adjustments.

Question 10

explained in "Going Online" box,the Federal Trade Commission (FTC)is especially concerned about the

Accepted Answer

A)  overuse of FOB origin pricing. 
B)  misuse of quantity discounting. 
C)  elimination of seasonal discounts. 
D)  children under 18 making online purchases. 
E)  misuse of the word "free" in promotions. 
A)  overuse of FOB origin pricing. 
B)  misuse of quantity discounting. 
C)  elimination of seasonal discounts. 
D)  children under 18 making online purchases. 
E)  misuse of the word "free" in promotions.

Question 11

Product-line pricing refers to

Accepted Answer

A)  setting the price of a line of products at a number of different specific pricing points. 
B)  deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well. 
C)  adding a fixed percentage to the cost of all items in a specific product class. 
D)  setting of prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item. 
E)  the marketing of two or more products in a single package. 
A)  setting the price of a line of products at a number of different specific pricing points. 
B)  deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well. 
C)  adding a fixed percentage to the cost of all items in a specific product class. 
D)  setting of prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item. 
E)  the marketing of two or more products in a single package.

Question 12

retail price of a fax machine has decreased from more than $10,000 in the early 1970s to less than $100 today.This is due in large part to

Accepted Answer

A)  skimming pricing. 
B)  prestige pricing. 
C)  odd-even pricing. 
D)  experience curve pricing. 
E)  customary pricing. 
A)  skimming pricing. 
B)  prestige pricing. 
C)  odd-even pricing. 
D)  experience curve pricing. 
E)  customary pricing.

Question 13

Discounts that apply to the accumulation of purchases of a product over a given time period,such as a year,are referred to as

Accepted Answer

A)  promotional allowances. 
B)  cumulative quantity discounts. 
C)  cash discounts. 
D)  functional discounts. 
E)  noncumulative quantity discounts. 
A)  promotional allowances. 
B)  cumulative quantity discounts. 
C)  cash discounts. 
D)  functional discounts. 
E)  noncumulative quantity discounts.

Question 14

Setting an annual target of a specific dollar volume of profit is referred to as __________.

Accepted Answer

A)  target profit pricing 
B)  target return-on-investment pricing 
C)  loss leader pricing 
D)  at-, above-, or below-market pricing 
E)  yield management pricing 
A)  target profit pricing 
B)  target return-on-investment pricing 
C)  loss leader pricing 
D)  at-, above-, or below-market pricing 
E)  yield management pricing

Question 15

Functional discounts are offered to resellers in the marketing channel on the basis of where they are in the channel and

Accepted Answer

A)  the size of the order. 
B)  the frequency of the order. 
C)  when orders are placed during the year. 
D)  the length of the relationship with the manufacturer. 
E)  the marketing activities they are expected to perform in the future. 
A)  the size of the order. 
B)  the frequency of the order. 
C)  when orders are placed during the year. 
D)  the length of the relationship with the manufacturer. 
E)  the marketing activities they are expected to perform in the future.

Question 16

a cost-oriented pricing strategy,a price setter stress the __________ side of the pricing problem and the price is set by looking at _________.

Accepted Answer

A)  demand; revenue 
B)  production and marketing; profit 
C)  demand; target sales 
D)  cost; production and marketing costs 
E)  cost; consumer demand 
A)  demand; revenue 
B)  production and marketing; profit 
C)  demand; target sales 
D)  cost; production and marketing costs 
E)  cost; consumer demand

Question 17

Vizio,Inc.is an up-and-coming contender in the __________ market.

Accepted Answer

A)  designer eyewear 
B)  virtual media 
C)  HDTV 
D)  3D video game 
E)  exotic travel 
A)  designer eyewear 
B)  virtual media 
C)  HDTV 
D)  3D video game 
E)  exotic travel

Question 18

Which of the following is a competition-oriented approach to pricing?

Accepted Answer

A)  skimming pricing 
B)  target pricing 
C)  loss-leader pricing 
D)  target return-on-sales pricing 
E)  standard markup pricing 
A)  skimming pricing 
B)  target pricing 
C)  loss-leader pricing 
D)  target return-on-sales pricing 
E)  standard markup pricing

Question 19

According to Vizio,"The whole goal is to ensure that we have the right product,at the right time and the right price and __________."

Accepted Answer

A)  forever rid the world of plugs and wires 
B)  create customer value that is unmatched in the industry 
C)  deliver it to the right people 
D)  at the right place 
E)  drive a seamless end-to-end value chain 
A)  forever rid the world of plugs and wires 
B)  create customer value that is unmatched in the industry 
C)  deliver it to the right people 
D)  at the right place 
E)  drive a seamless end-to-end value chain

Question 20

manufacturer of a new kind of fat-free ice cream that has the consistency and taste of regular ice cream is thinking of using a penetration pricing strategy for its new product.Which of the following conditions would argue AGAINST using a penetration pricing strategy for the tasty fat-free ice cream?

Accepted Answer

A)  The ice cream market is highly conservative. 
B)  Economies of scale in production would be substantial. 
C)  Retailers are not willing to carry new brands of ice cream in the already overcrowded category. 
D)  Once the initial price is set, it is nearly impossible to lower the price without alienating early buyers. 
E)  The ice cream market exhibits inelastic demand over a fairly broad range of prices. 
A)  The ice cream market is highly conservative. 
B)  Economies of scale in production would be substantial. 
C)  Retailers are not willing to carry new brands of ice cream in the already overcrowded category. 
D)  Once the initial price is set, it is nearly impossible to lower the price without alienating early buyers. 
E)  The ice cream market exhibits inelastic demand over a fairly broad range of prices.

Exam 14: Arriving at the Final Price

or more competitors explicitly or implicitly setting prices is referred to as __________.

Instead of everyday low prices (EDLP),supermarkets prefer a __________ approach,which is based on frequent specials where prices are temporarily lowered for a brief period of time and then raised again.

of the following are profit-oriented approaches to selecting an approximate price level EXCEPT:

Figure 14-8 -Consider Figure 14-8 above."A" represents which of the following legislative acts?

is the difference between noncumulative and cumulative quantity discounts?

Toro Ad -is it called when a manufacturer offers discounts to resellers in the marketing channel on the basis of where they are in the channel?

trade-in allowance refers to

Figure 14-6 -Figure 14-6 above shows the three types of special adjustments to list or quoted price."C" represents

Figure 14-6 -Figure 14-6 above shows the three types of special adjustments to list or quoted price."A" represents

explained in "Going Online" box,the Federal Trade Commission (FTC)is especially concerned about the

Product-line pricing refers to

retail price of a fax machine has decreased from more than $10,000 in the early 1970s to less than $100 today.This is due in large part to

Discounts that apply to the accumulation of purchases of a product over a given time period,such as a year,are referred to as

Setting an annual target of a specific dollar volume of profit is referred to as __________.

Functional discounts are offered to resellers in the marketing channel on the basis of where they are in the channel and

a cost-oriented pricing strategy,a price setter stress the __________ side of the pricing problem and the price is set by looking at _________.

Vizio,Inc.is an up-and-coming contender in the __________ market.

Which of the following is a competition-oriented approach to pricing?

According to Vizio,"The whole goal is to ensure that we have the right product,at the right time and the right price and __________."

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation,Targeting,and Positioning

Developing New Products and Services

Managing Successful Products,Services,and Brands

Services Marketing

Building the Price Foundation

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multi-Channel Marketing

Pulling It All Together: The Strategic Marketing Process

Filters

a cost-oriented pricing strategy,a price setter stress the __ side of the pricing problem and the price is set by looking at _.