Question 1

The price normally quoted to potential buyers before any discounts or allowances are allowed is called the _____ price.

Accepted Answer

A) market 
B) list 
C) cash 
D) trade 
A) market 
B) list 
C) cash 
D) trade

Question 2

Discuss the relationship between price and consumer perceptions of quality.

Accepted Answer

In the absence of other cues,price has a

Question 3

Match each item with the correct statement below.
-The price reduction granted on a one-time-only basis is called a(n)_____.

Accepted Answer

A) competitive bidding 
B) penetration pricing strategy 
C) list price 
D) trade discount 
E) price flexibility
F)promotional pricing
G)loss leader
H)cannibalization
I)bundle pricing
J)odd pricing
K)transfer price
L)profit center
M)skimming pricing strategy
N)competitive pricing strategy
O)pricing policy
P)market price
Q)noncumulative quantity discount
R)step out
S)bot
T)cash discount 
A) competitive bidding 
B) penetration pricing strategy 
C) list price 
D) trade discount 
E) price flexibility
F)promotional pricing
G)loss leader
H)cannibalization
I)bundle pricing
J)odd pricing
K)transfer price
L)profit center
M)skimming pricing strategy
N)competitive pricing strategy
O)pricing policy
P)market price
Q)noncumulative quantity discount
R)step out
S)bot
T)cash discount

Question 4

Which of the following pricing policies is more likely to be applied in marketing programs based on individual bargaining?

Accepted Answer

A) Product-line pricing 
B) Promotional pricing 
C) Price flexibility 
D) Odd pricing 
A) Product-line pricing 
B) Promotional pricing 
C) Price flexibility 
D) Odd pricing

Question 5

Auctions such as eBay are considered the purest form of negotiating prices.​

Accepted Answer

A) True 
 B)False

Question 6

A firm that manufactures TVs sells them at prices of $750,$1,000,and $1,250.The manufacturer will return $75,$100,or $125 respectively,by mail,to those who purchase its brand of TV.This reduction in price is an example of a:

Accepted Answer

A) promotion allowance. 
B) trade-in. 
C) rebate. 
D) quantity discount. 
A) promotion allowance. 
B) trade-in. 
C) rebate. 
D) quantity discount.

Question 7

Cumulative quantity discounts tend to bind customers to a single supply source.

Accepted Answer

A) True 
 B)False

Question 8

The amount by which the average transportation charge exceeds the actual cost of shipping to a particular destination under postage stamp pricing is called phantom freight.

Accepted Answer

A) True 
 B)False

Question 9

Match each item with the correct statement below.
-A(n)_____ is a price reduction offered to a consumer or a business buyer in return for prompt payment of a bill.

Accepted Answer

A) competitive bidding 
B) penetration pricing strategy 
C) list price 
D) trade discount 
E) price flexibility
F)promotional pricing
G)loss leader
H)cannibalization
I)bundle pricing
J)odd pricing
K)transfer price
L)profit center
M)skimming pricing strategy
N)competitive pricing strategy
O)pricing policy
P)market price
Q)noncumulative quantity discount
R)step out
S)bot
T)cash discount 
A) competitive bidding 
B) penetration pricing strategy 
C) list price 
D) trade discount 
E) price flexibility
F)promotional pricing
G)loss leader
H)cannibalization
I)bundle pricing
J)odd pricing
K)transfer price
L)profit center
M)skimming pricing strategy
N)competitive pricing strategy
O)pricing policy
P)market price
Q)noncumulative quantity discount
R)step out
S)bot
T)cash discount

Question 10

Cannibalization occurs when companies offer their products in multiple retail channels such as drug stores,convenience stores,grocery stores and discount stores.​

Accepted Answer

A) True 
 B)False

Question 11

A grocery store places tags on shelves just below the products that list the product name,UPC number,a store code,and the regular price of the product.This regular price is called the market price.

Accepted Answer

A) True 
 B)False

Question 12

A(n)_____ is a general guideline that reflects marketing objectives and influences specific pricing decisions.

Accepted Answer

A) MAP 
B) pricing policy 
C) leader pricing strategy 
D) EDLP 
A) MAP 
B) pricing policy 
C) leader pricing strategy 
D) EDLP

Question 13

A one-time reduction in list price typically offered at the time of sale is referred to as a(n):

Accepted Answer

A) allowance. 
B) rebate. 
C) cumulative discount. 
D) noncumulative discount. 
A) allowance. 
B) rebate. 
C) cumulative discount. 
D) noncumulative discount.

Question 14

Which of the following is a disadvantage associated with product-line pricing?

Accepted Answer

A) It does not provide flexibility for making price changes on individual items. 
B) It results in consumers having difficulty in making purchase decisions. 
C) It is ineffective in differentiating between products. 
D) It does not allow shoppers to choose desired price ranges. 
A) It does not provide flexibility for making price changes on individual items. 
B) It results in consumers having difficulty in making purchase decisions. 
C) It is ineffective in differentiating between products. 
D) It does not allow shoppers to choose desired price ranges.

Question 15

​Jim plans to rent a car during an upcoming business trip to Dallas.He expects to pay a rental rate similar to what he was charged last year in the same city.However,he could be persuaded to pay more under certain conditions.Which of the following conditions might influence Jim to pay more?

Accepted Answer

A) ​He is offered an eco-friendly hybrid car. 
B) ​He is offered a Range Rover or other top quality car at only a small premium. 
C) ​He is offered the same car he drove last year. 
D) ​He is offered the option of paying in installments. 
A) ​He is offered an eco-friendly hybrid car. 
B) ​He is offered a Range Rover or other top quality car at only a small premium. 
C) ​He is offered the same car he drove last year. 
D) ​He is offered the option of paying in installments.

Question 16

The price a consumer or marketing intermediary actually pays for a product after subtracting any discounts,allowances,or rebates from the list price is called _____ price.

Accepted Answer

A) retail 
B) market 
C) functional 
D) sticker 
A) retail 
B) market 
C) functional 
D) sticker

Question 17

Since many firms begin penetration pricing with the intention of increasing prices in the future,success depends on generating numerous trial purchases.

Accepted Answer

A) True 
 B)False

Question 18

Match each item with the correct statement below.
-A(n)_____ is a pricing practice in which a firm raises prices and then wait to see if others follow suit.

Accepted Answer

A) competitive bidding 
B) penetration pricing strategy 
C) list price 
D) trade discount 
E) price flexibility
F)promotional pricing
G)loss leader
H)cannibalization
I)bundle pricing
J)odd pricing
K)transfer price
L)profit center
M)skimming pricing strategy
N)competitive pricing strategy
O)pricing policy
P)market price
Q)noncumulative quantity discount
R)step out
S)bot
T)cash discount 
A) competitive bidding 
B) penetration pricing strategy 
C) list price 
D) trade discount 
E) price flexibility
F)promotional pricing
G)loss leader
H)cannibalization
I)bundle pricing
J)odd pricing
K)transfer price
L)profit center
M)skimming pricing strategy
N)competitive pricing strategy
O)pricing policy
P)market price
Q)noncumulative quantity discount
R)step out
S)bot
T)cash discount

Question 19

Most businesses slowly change the amounts they charge customers,even when they clearly recognize strong demand.

Accepted Answer

A) True 
 B)False

Question 20

Retailers such as Walmart achieve everyday low pricing by negotiating better prices from suppliers and by cutting their own costs.

Accepted Answer

A) True 
 B)False

Exam 19: Pricing Strategies

The price normally quoted to potential buyers before any discounts or allowances are allowed is called the _____ price.

Discuss the relationship between price and consumer perceptions of quality.

Match each item with the correct statement below. -The price reduction granted on a one-time-only basis is called a(n)_____.

Which of the following pricing policies is more likely to be applied in marketing programs based on individual bargaining?

Auctions such as eBay are considered the purest form of negotiating prices.​

A firm that manufactures TVs sells them at prices of $750,$1,000,and $1,250.The manufacturer will return $75,$100,or $125 respectively,by mail,to those who purchase its brand of TV.This reduction in price is an example of a:

Cumulative quantity discounts tend to bind customers to a single supply source.

The amount by which the average transportation charge exceeds the actual cost of shipping to a particular destination under postage stamp pricing is called phantom freight.

Match each item with the correct statement below. -A(n)_____ is a price reduction offered to a consumer or a business buyer in return for prompt payment of a bill.

Cannibalization occurs when companies offer their products in multiple retail channels such as drug stores,convenience stores,grocery stores and discount stores.​

A grocery store places tags on shelves just below the products that list the product name,UPC number,a store code,and the regular price of the product.This regular price is called the market price.

A(n)_____ is a general guideline that reflects marketing objectives and influences specific pricing decisions.

A one-time reduction in list price typically offered at the time of sale is referred to as a(n):

Which of the following is a disadvantage associated with product-line pricing?

​Jim plans to rent a car during an upcoming business trip to Dallas.He expects to pay a rental rate similar to what he was charged last year in the same city.However,he could be persuaded to pay more under certain conditions.Which of the following conditions might influence Jim to pay more?

The price a consumer or marketing intermediary actually pays for a product after subtracting any discounts,allowances,or rebates from the list price is called _____ price.

Since many firms begin penetration pricing with the intention of increasing prices in the future,success depends on generating numerous trial purchases.

Match each item with the correct statement below. -A(n)_____ is a pricing practice in which a firm raises prices and then wait to see if others follow suit.

Most businesses slowly change the amounts they charge customers,even when they clearly recognize strong demand.

Retailers such as Walmart achieve everyday low pricing by negotiating better prices from suppliers and by cutting their own costs.

Marketing: the Art and Science of Satisfying Customers

Strategic Planning in Contemporary Marketing

The Marketing Environment, ethics, and Social Responsibility

Social Media: Living in the Connected World

E-Business: Managing the Customer Experience

Consumer Behavior

Business-To-Business B2bmarketing

Global Marketing

Market Segmentation, targeting, and Positioning

Marketing Research in the Era of Big Data

Relationship Marketing and Customer Relationship Management Crm

Product and Service Strategies

Developing and Managing Brand and Product Categories

Marketing Channels and Supply Chain Management

Retailers, wholesalers, and Direct Marketers

Integrated Marketing Communications, advertising, and Public Relations

Personal Selling and Sales Promotion

Pricing Concepts

Developing an Effective Marketing Plan

Financial Analysis in Marketing

Filters

Auctions such as eBay are considered the purest form of negotiating prices.

Cannibalization occurs when companies offer their products in multiple retail channels such as drug stores,convenience stores,grocery stores and discount stores.

Jim plans to rent a car during an upcoming business trip to Dallas.He expects to pay a rental rate similar to what he was charged last year in the same city.However,he could be persuaded to pay more under certain conditions.Which of the following conditions might influence Jim to pay more?