Question 1

What are some of the objectives a firm might hope to achieve when setting prices?

Accepted Answer

The answer of What are some of the objectives a...

Question 2

A marketer is most likely to set prices according to a cash-flow objective when a

Accepted Answer

A)  trial-and-error approach to the market is acceptable. 
B)  certain market share must be maintained. 
C)  quick return on investment is desired. 
D)  higher price is acceptable to the firm. 
E)  product is expected to have a long life cycle. 
A)  trial-and-error approach to the market is acceptable. 
B)  certain market share must be maintained. 
C)  quick return on investment is desired. 
D)  higher price is acceptable to the firm. 
E)  product is expected to have a long life cycle.

Question 3

Use the following to answer the questions.
Glenwood Pet Hospital is considering implementing a new pricing strategy for its veterinarian services.After reviewing the previous three years' revenue,Glenwood finds that most of its customers bring their pets in for the required annual vaccinations and then only if the animal is ill.Glenwood's objective is to generate more income per customer on an annual basis.The hospital has previously priced its services by charging a flat fee for the office visit,a fee for each vaccine,and a fee for each type of examination beyond the basic office visit.Most customers pay the flat office fee and a fee for a rabies vaccine.Glenwood is now considering a new plan where the pet owner would pay one fee that would cover an office visit,the required rabies vaccine,and additional vaccines that prevent heartworm,kennel-cough,and fleas.Glenwood hopes to encourage the pet owners to view their pet's health as part of a prevention program,rather than a one-time annual visit.
-Refer to Scenario 20.2.Glenwood is considering a markup pricing basis,with the cost for office visit plus vaccines at $45.If Glenwood were to add a markup of 33.3 percent of the costs,its price would be ____.

Accepted Answer

A)  $79 
B)  $65 
C)  $55 
D)  $78 
E)  $60 
A)  $79 
B)  $65 
C)  $55 
D)  $78 
E)  $60

Question 4

Maintaining a certain market share,meeting competitors' prices,maintaining a favorable image,and achieving price stability are all associated with a ____ pricing objective.

Accepted Answer

A)  product quality 
B)  market share 
C)  survival 
D)  profit 
E)  status quo 
A)  product quality 
B)  market share 
C)  survival 
D)  profit 
E)  status quo

Question 5

Two types of new-product pricing are price skimming and product-line pricing.

Accepted Answer

A) True 
 B)False

Question 6

Cost-plus pricing is popular in periods of rapid inflation.

Accepted Answer

A) True 
 B)False

Question 7

Some grocery stores collect data on competitive prices

Accepted Answer

A)  by calling their competitors. 
B)  on a quarterly basis. 
C)  through stores' purchase data. 
D)  from their resellers. 
E)  by using full-time comparison shoppers. 
A)  by calling their competitors. 
B)  on a quarterly basis. 
C)  through stores' purchase data. 
D)  from their resellers. 
E)  by using full-time comparison shoppers.

Question 8

When a company attempts to influence a consumer's perception of price to make a product's price more attractive and reduce "sticker shock," it is using a ____ pricing strategy.

Accepted Answer

A)  competition-based 
B)  professional 
C)  promotional 
D)  comparison 
E)  psychological 
A)  competition-based 
B)  professional 
C)  promotional 
D)  comparison 
E)  psychological

Question 9

Identify and describe six types of psychological pricing.

Accepted Answer

1. Charm Pricing: This is when prices ar

Question 10

The government frequently uses competition-based pricing in granting defense contracts.

Accepted Answer

A) True 
 B)False

Question 11

Captive pricing,premium pricing,bait pricing,and price lining are all strategies aimed at maximizing the profits of an entire product line rather than an individual product.

Accepted Answer

A) True 
 B)False

Question 12

Gambrell Designs thinks its new product,the Automatic Dog Walker,will have a short product life cycle; therefore,its marketing department sets its primary pricing objective as

Accepted Answer

A)  market share. 
B)  cash flow. 
C)  profit. 
D)  product quality. 
E)  status quo. 
A)  market share. 
B)  cash flow. 
C)  profit. 
D)  product quality. 
E)  status quo.

Question 13

A pricing strategy is a course of action designed to achieve pricing and marketing objectives.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following pricing objectives sets prices to recover cash as quickly as possible?

Accepted Answer

A)  Market share 
B)  Profit 
C)  Cash flow 
D)  Return on investment 
E)  Product quality 
A)  Market share 
B)  Profit 
C)  Cash flow 
D)  Return on investment 
E)  Product quality

Question 15

Differential pricing means different buyers pay different prices for the same quality and quantity of product.

Accepted Answer

A) True 
 B)False

Question 16

The use of market share as a pricing objective oversimplifies the value of price in contributing to profits.

Accepted Answer

A) True 
 B)False

Question 17

The federal government often uses ____ pricing when it grants defense contracts.

Accepted Answer

A)  markup 
B)  differential 
C)  breakeven 
D)  cost-plus 
E)  competition-based 
A)  markup 
B)  differential 
C)  breakeven 
D)  cost-plus 
E)  competition-based

Question 18

How can a marketer use product quality as a pricing objective to influence purchasing decisions?

Accepted Answer

The answer of How can a marketer use product quality...

Question 19

Which of the following statements about markup pricing is correct?

Accepted Answer

A)  The use of similar markups reduces price competition. 
B)  Markup pricing is inconvenient to use. 
C)  Markup pricing results in a high price when demand is high and a low price when demand is low. 
D)  Markup pricing is a demand-based pricing method. 
E)  Using markups makes pricing a time-consuming,difficult process. 
A)  The use of similar markups reduces price competition. 
B)  Markup pricing is inconvenient to use. 
C)  Markup pricing results in a high price when demand is high and a low price when demand is low. 
D)  Markup pricing is a demand-based pricing method. 
E)  Using markups makes pricing a time-consuming,difficult process.

Question 20

The "White Sale" that many department stores have every year a few weeks after Christmas is an example of

Accepted Answer

A)  secondary pricing. 
B)  off-peak pricing. 
C)  periodic discounting. 
D)  random discounting. 
E)  captive pricing. 
A)  secondary pricing. 
B)  off-peak pricing. 
C)  periodic discounting. 
D)  random discounting. 
E)  captive pricing.

Exam 20: Pricingdecisions

What are some of the objectives a firm might hope to achieve when setting prices?

A marketer is most likely to set prices according to a cash-flow objective when a

Maintaining a certain market share,meeting competitors' prices,maintaining a favorable image,and achieving price stability are all associated with a ____ pricing objective.

Two types of new-product pricing are price skimming and product-line pricing.

Cost-plus pricing is popular in periods of rapid inflation.

Some grocery stores collect data on competitive prices

When a company attempts to influence a consumer's perception of price to make a product's price more attractive and reduce "sticker shock," it is using a ____ pricing strategy.

Identify and describe six types of psychological pricing.

The government frequently uses competition-based pricing in granting defense contracts.

Captive pricing,premium pricing,bait pricing,and price lining are all strategies aimed at maximizing the profits of an entire product line rather than an individual product.

Gambrell Designs thinks its new product,the Automatic Dog Walker,will have a short product life cycle; therefore,its marketing department sets its primary pricing objective as

A pricing strategy is a course of action designed to achieve pricing and marketing objectives.

Which of the following pricing objectives sets prices to recover cash as quickly as possible?

Differential pricing means different buyers pay different prices for the same quality and quantity of product.

The use of market share as a pricing objective oversimplifies the value of price in contributing to profits.

The federal government often uses ____ pricing when it grants defense contracts.

How can a marketer use product quality as a pricing objective to influence purchasing decisions?

Which of the following statements about markup pricing is correct?

The "White Sale" that many department stores have every year a few weeks after Christmas is an example of

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