Question 1

North America's largest HDTV company is

Accepted Answer

A) Samsung. 
B) Panasonic. 
C) LG. 
D) Sony. 
E) Vizio. 
A) Samsung. 
B) Panasonic. 
C) LG. 
D) Sony. 
E) Vizio.

Question 2

Target return-on-sales pricing refers to

Accepted Answer

A) adjusting the price of a product so it is "in line" with that of its largest competitor. 
B) setting the price of a line of products at a number of different price points. 
C) adding a fixed percentage to the cost of all items in a specific product class. 
D) setting prices to achieve a profit that is a specified percentage of the sales volume. 
E) setting a price based on a specific annual dollar target profit volume. 
A) adjusting the price of a product so it is "in line" with that of its largest competitor. 
B) setting the price of a line of products at a number of different price points. 
C) adding a fixed percentage to the cost of all items in a specific product class. 
D) setting prices to achieve a profit that is a specified percentage of the sales volume. 
E) setting a price based on a specific annual dollar target profit volume.

Question 3

Standard markup pricing refers to

Accepted Answer

A) adjusting the price of a product so it is "in line" with that of its largest competitor. 
B) setting the price of a line of products at a number of different price points. 
C) setting prices to achieve a profit that is a specified percentage of the sales volume. 
D) increasing the price slightly to protect against undue profit losses from unforeseen environmental forces. 
E) adding a fixed percentage to the cost of all items in a specific product class. 
A) adjusting the price of a product so it is "in line" with that of its largest competitor. 
B) setting the price of a line of products at a number of different price points. 
C) setting prices to achieve a profit that is a specified percentage of the sales volume. 
D) increasing the price slightly to protect against undue profit losses from unforeseen environmental forces. 
E) adding a fixed percentage to the cost of all items in a specific product class.

Question 4

Manufacturers use seasonal discounts to

Accepted Answer

A) get rid of expired merchandise. 
B) prevent retailers from purchasing competitors' products. 
C) extend the peak seasonal selling season. 
D) encourage buyers to stock inventory earlier than their normal demand would require. 
E) temporarily spur primary demand during periods of soft sales,such as the beginning of a month,after which prices will return to normal when selective demand picks up. 
A) get rid of expired merchandise. 
B) prevent retailers from purchasing competitors' products. 
C) extend the peak seasonal selling season. 
D) encourage buyers to stock inventory earlier than their normal demand would require. 
E) temporarily spur primary demand during periods of soft sales,such as the beginning of a month,after which prices will return to normal when selective demand picks up.

Question 5

A method of pricing where the price the seller quotes includes only the cost of loading the product onto the vehicle and specifies the name of the location where the loading is to occur is referred to as

Accepted Answer

A) FOB origin pricing. 
B) FOB destination pricing. 
C) geographical allowance. 
D) uniform delivered pricing. 
E) mode of transportation pricing. 
A) FOB origin pricing. 
B) FOB destination pricing. 
C) geographical allowance. 
D) uniform delivered pricing. 
E) mode of transportation pricing.

Question 6

Which of the following is the fourth step in setting a final price for a product?

Accepted Answer

A) set list or quoted price 
B) select an approximate price level 
C) scan competitors for prices of similar products or services 
D) determine cost,volume,and profit relationships 
E) identify pricing objectives and constraints 
A) set list or quoted price 
B) select an approximate price level 
C) scan competitors for prices of similar products or services 
D) determine cost,volume,and profit relationships 
E) identify pricing objectives and constraints

Question 7

If the terms of the trade discount are listed 20/10/5,the number "5" represents

Accepted Answer

A) 5 percent of the suggested retail price that is available to the retailer to cover costs and provide a profit. 
B) 5 percent of the suggested retail price that is available to the wholesaler to cover costs and provide a profit. 
C) 5 percent of the suggested retail price that is available to the jobber to cover costs and provide a profit. 
D) 5 percent of the suggested retail price that is available to the ultimate consumer. 
E) 5 percent of the suggested retail price that is the profit margin to the manufacturer. 
A) 5 percent of the suggested retail price that is available to the retailer to cover costs and provide a profit. 
B) 5 percent of the suggested retail price that is available to the wholesaler to cover costs and provide a profit. 
C) 5 percent of the suggested retail price that is available to the jobber to cover costs and provide a profit. 
D) 5 percent of the suggested retail price that is available to the ultimate consumer. 
E) 5 percent of the suggested retail price that is the profit margin to the manufacturer.

Question 8

According to Figure 14-8 above,how much is the retailer trade discount?

Accepted Answer

A) $3.15 
B) $7.00 
C) $30.00 
D) $63.00 
E) $70.00 
A) $3.15 
B) $7.00 
C) $30.00 
D) $63.00 
E) $70.00

Question 9

Southern gardeners normally pay $5 for a 2-cubit-foot bag of pine bark mulch that they buy at their local gardening-supply and home-improvement stores to keep the weeds down in their gardens.If the price being charged by a retailer is not within a narrow range that gardeners feel is appropriate,they will use substitutions-newspaper,grass clippings,or some other kind of ground covering.When pricing pine bark mulch,a garden-supply or home-improvement retailer should use

Accepted Answer

A) customary pricing. 
B) at-market pricing. 
C) loss-leader pricing. 
D) penetration pricing. 
E) bundle pricing. 
A) customary pricing. 
B) at-market pricing. 
C) loss-leader pricing. 
D) penetration pricing. 
E) bundle pricing.

Question 10

Figure 14-1 above represents the six steps in setting price.Which letter represents the step where a firm would use a cost-oriented approach to setting price?

Accepted Answer

A) "B" 
B) "C" 
C) "D" 
D) "E" 
E) "F" 
A) "B" 
B) "C" 
C) "D" 
D) "E" 
E) "F"

Question 11

You can buy a General Electric dishwasher for $399 or you can buy a similar Bosch brand dishwasher for $989.Since Bosch uses its pricing strategy to project a high-quality product image,it is most likely using __________ pricing.

Accepted Answer

A) bundle 
B) standard markup 
C) prestige 
D) penetration 
E) cost plus fixed-fee 
A) bundle 
B) standard markup 
C) prestige 
D) penetration 
E) cost plus fixed-fee

Question 12

Setting one price for all buyers of a product or service is referred to as __________.

Accepted Answer

A) customary pricing 
B) a fixed-price policy 
C) a dynamic pricing policy 
D) standard markup pricing 
E) uniform pricing 
A) customary pricing 
B) a fixed-price policy 
C) a dynamic pricing policy 
D) standard markup pricing 
E) uniform pricing

Question 13

Target pricing is considered to be a __________ approach to pricing.

Accepted Answer

A) cost-oriented 
B) profit-oriented 
C) demand-oriented 
D) competition-oriented 
E) service-oriented 
A) cost-oriented 
B) profit-oriented 
C) demand-oriented 
D) competition-oriented 
E) service-oriented

Question 14

Skimming pricing is a strategy that introduces a new or innovative product by

Accepted Answer

A) following a price elastic strategy. 
B) creating multiple price points. 
C) setting a high initial price. 
D) setting a low initial price. 
E) setting the price at the average of competitors' prices. 
A) following a price elastic strategy. 
B) creating multiple price points. 
C) setting a high initial price. 
D) setting a low initial price. 
E) setting the price at the average of competitors' prices.

Question 15

To reward wholesalers and retailers for the risk they accept in assuming increased inventory carrying costs,manufacturers offer

Accepted Answer

A) noncumulative discounts. 
B) cumulative discounts. 
C) trade discounts. 
D) seasonal discounts. 
E) functional discounts. 
A) noncumulative discounts. 
B) cumulative discounts. 
C) trade discounts. 
D) seasonal discounts. 
E) functional discounts.

Question 16

What is loss-leader pricing and why do retailers use it?

Accepted Answer

For a special promotion,many retail stor

Question 17

The UMD14: Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks.What is the price premium for Monster in 2009?

Accepted Answer

A) 12.1% 
B) 0% 
C) -5.0% 
D) -5.6% 
E) -11.1% 
A) 12.1% 
B) 0% 
C) -5.0% 
D) -5.6% 
E) -11.1%

Question 18

Yield management pricing is most consistent with services trying to deal with

Accepted Answer

A) perceived risk. 
B) capacity management. 
C) cognitive dissonance. 
D) inelasticity of demand. 
E) new product strategy development. 
A) perceived risk. 
B) capacity management. 
C) cognitive dissonance. 
D) inelasticity of demand. 
E) new product strategy development.

Question 19

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,is referred to as

Accepted Answer

A) loss-leader pricing. 
B) bundle pricing. 
C) magnet pricing. 
D) predatory pricing. 
E) below-market pricing. 
A) loss-leader pricing. 
B) bundle pricing. 
C) magnet pricing. 
D) predatory pricing. 
E) below-market pricing.

Question 20

When Hallmark cards introduced a line of 99-cent cards (about half the price of the previously least expensive cards it sold),the greeting card company was trying to appeal to a mass market that was price sensitive.Hallmark was using a __________ pricing strategy.

Accepted Answer

A) prestige 
B) skimming 
C) target ROI 
D) penetration 
E) experience-curve 
A) prestige 
B) skimming 
C) target ROI 
D) penetration 
E) experience-curve

Exam 14: Arriving at the Final Price

North America's largest HDTV company is

Target return-on-sales pricing refers to

Standard markup pricing refers to

Manufacturers use seasonal discounts to

A method of pricing where the price the seller quotes includes only the cost of loading the product onto the vehicle and specifies the name of the location where the loading is to occur is referred to as

Which of the following is the fourth step in setting a final price for a product?

If the terms of the trade discount are listed 20/10/5,the number "5" represents

According to Figure 14-8 above,how much is the retailer trade discount?

Figure 14-1 above represents the six steps in setting price.Which letter represents the step where a firm would use a cost-oriented approach to setting price?

You can buy a General Electric dishwasher for $399 or you can buy a similar Bosch brand dishwasher for $989.Since Bosch uses its pricing strategy to project a high-quality product image,it is most likely using __________ pricing.

Setting one price for all buyers of a product or service is referred to as __________.

Target pricing is considered to be a __________ approach to pricing.

Skimming pricing is a strategy that introduces a new or innovative product by

To reward wholesalers and retailers for the risk they accept in assuming increased inventory carrying costs,manufacturers offer

What is loss-leader pricing and why do retailers use it?

The UMD14: Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks.What is the price premium for Monster in 2009?

Yield management pricing is most consistent with services trying to deal with

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,is referred to as

When Hallmark cards introduced a line of 99-cent cards (about half the price of the previously least expensive cards it sold),the greeting card company was trying to appeal to a mass market that was price sensitive.Hallmark was using a __________ pricing strategy.

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility in 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 to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multichannel Marketing

Pulling It All Together: the Strategic Marketing Process

Building an Effective Marketing Plan

Financial Aspects of Marketing

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