Question 1

Tendollars.com offers thousands of gifts,all priced at $10.This is an example of a(n)__________.

Accepted Answer

A) skimming pricing approach 
B) loss-leader pricing approach 
C) fixed-price policy 
D) penetration pricing approach 
E) everyday low pricing approach 
A) skimming pricing approach 
B) loss-leader pricing approach 
C) fixed-price policy 
D) penetration pricing approach 
E) everyday low pricing approach

Question 2

To encourage retailers to pay their bills quickly,manufacturers offer them

Accepted Answer

A) quantity discounts. 
B) cash discounts. 
C) flexible pricing policies. 
D) promotional allowances. 
E) manufacturer's inducements. 
A) quantity discounts. 
B) cash discounts. 
C) flexible pricing policies. 
D) promotional allowances. 
E) manufacturer's inducements.

Question 3

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

Accepted Answer

A) skimming pricing 
B) prestige pricing 
C) loss-leader pricing 
D) experience curve pricing 
E) bundle pricing 
A) skimming pricing 
B) prestige pricing 
C) loss-leader pricing 
D) experience curve pricing 
E) bundle pricing

Question 4

Figure 14-3 above is a graph that shows which pricing strategy?

Accepted Answer

A) skimming 
B) penetration 
C) cost-plus 
D) price lining 
E) prestige 
A) skimming 
B) penetration 
C) cost-plus 
D) price lining 
E) prestige

Question 5

In the early 1980s,typical round-trip coach airfares from the East Coast to London were more than $500.Then Freddie Laker introduced the People's Express,a competing service into Newark at $350.Major airlines matched his price-and continued to do so until they drove People's Express out of business.Then prices shot back up to over $500.A lawsuit filed under the Sherman Act resulted in the judgment that the major airlines had explicitly tried to destroy a competitor.The experience of People's Express is an example of __________ on the part of the major airlines.

Accepted Answer

A) price fixing 
B) price discrimination 
C) deceptive pricing 
D) predatory pricing 
E) pricing constraints 
A) price fixing 
B) price discrimination 
C) deceptive pricing 
D) predatory pricing 
E) pricing constraints

Question 6

In some cases,penetration pricing may follow skimming pricing.The skimming pricing would help __________ and the penetration pricing would help __________.

Accepted Answer

A) increase market share;attract price-insensitive customers 
B) attract price sensitive customers;increase market share 
C) recoup initial research and development costs;increase market share 
D) recoup initial research and development costs;improve firm reputation 
E) increase market share;attract price insensitive customers 
A) increase market share;attract price-insensitive customers 
B) attract price sensitive customers;increase market share 
C) recoup initial research and development costs;increase market share 
D) recoup initial research and development costs;improve firm reputation 
E) increase market share;attract price insensitive customers

Question 7

When Amazon introduced the Kindle Fire tablet device at $199 while Apple was selling the lowest price iPad for $499,Amazon was using a __________ pricing strategy.

Accepted Answer

A) skimming 
B) price lining 
C) BOGO 
D) penetration 
E) loss-leader 
A) skimming 
B) price lining 
C) BOGO 
D) penetration 
E) loss-leader

Question 8

A manufacturer using __________ is setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

Accepted Answer

A) skimming pricing 
B) penetration pricing 
C) price lining 
D) odd-even pricing 
E) prestige pricing 
A) skimming pricing 
B) penetration pricing 
C) price lining 
D) odd-even pricing 
E) prestige pricing

Question 9

What pricing strategy did the National Aeronautics and Space Administration (NASA)use to pay Lockheed Martin for the Orion lunar spacecraft,which is shown in the photo above?

Accepted Answer

A) cost-plus-percentage-of-cost pricing 
B) experience curve pricing 
C) standard markup pricing 
D) yield management pricing 
E) cost-plus fixed-fee pricing 
A) cost-plus-percentage-of-cost pricing 
B) experience curve pricing 
C) standard markup pricing 
D) yield management pricing 
E) cost-plus fixed-fee pricing

Question 10

Consider Figure 14-8 above.Suppose a manufacturer quotes price in the following form: List price-$100 less 30/10/5.What does "B" represent?

Accepted Answer

A) the wholesaler's trade discount 
B) the retailer's trade discount 
C) the jobber's trade discount 
D) the manufacturer's trade discount 
E) the manufacturer's markup 
A) the wholesaler's trade discount 
B) the retailer's trade discount 
C) the jobber's trade discount 
D) the manufacturer's trade discount 
E) the manufacturer's markup

Question 11

Five pricing practices are closely scrutinized because of potential unethical or illegal actions.They include: (1)price fixing; (2)price discrimination; (3)deceptive pricing; (4)predatory pricing;and (5)__________.

Accepted Answer

A) geographical pricing 
B) price discounting 
C) lateral price fixing 
D) delayed payment penalties 
E) price discrimination 
A) geographical pricing 
B) price discounting 
C) lateral price fixing 
D) delayed payment penalties 
E) price discrimination

Question 12

Product-line pricing involves determining: (1)the lowest-priced product and price; (2)__________;and (3)the price differentials for all other products in the line.

Accepted Answer

A) the single most popular item in the line 
B) the least vulnerable product in the line 
C) the highest-priced product and price 
D) the most frequently sold product in the line 
E) the most price insensitive product in the line 
A) the single most popular item in the line 
B) the least vulnerable product in the line 
C) the highest-priced product and price 
D) the most frequently sold product in the line 
E) the most price insensitive product in the line

Question 13

When establishing product line pricing,the highest priced item is typically positioned as

Accepted Answer

A) the oldest product item in the line. 
B) the premium item in the line in terms of quality and features. 
C) the largest selling product item in the line. 
D) the loss leader item for the rest of the product line. 
E) the most price insensitive product item in the line. 
A) the oldest product item in the line. 
B) the premium item in the line in terms of quality and features. 
C) the largest selling product item in the line. 
D) the loss leader item for the rest of the product line. 
E) the most price insensitive product item in the line.

Question 14

The UMD14: Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks.What is the price premium for Red Bull 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 15

According to the textbook,clothing manufacturer Christian Dior and retailer Neiman Marcus use __________ pricing.

Accepted Answer

A) above-market 
B) at-market 
C) below-market 
D) prestige pricing 
E) everyday low pricing 
A) above-market 
B) at-market 
C) below-market 
D) prestige pricing 
E) everyday low pricing

Question 16

Consider Figure 14-8 above.Suppose a manufacturer quotes price in the following form: List price-$100 less 30/10/5.What does $7.00 represent?

Accepted Answer

A) the wholesaler's trade discount 
B) the retailer's trade discount 
C) the jobber's trade discount 
D) the manufacturer's trade discount 
E) the manufacturer's markup 
A) the wholesaler's trade discount 
B) the retailer's trade discount 
C) the jobber's trade discount 
D) the manufacturer's trade discount 
E) the manufacturer's markup

Question 17

Price discrimination refers to

Accepted Answer

A) the practice of charging different prices to different buyers for goods of like grade and quality. 
B) an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor. 
C) the practice of charging a very low price for a product with the intent of driving competitors out of business. 
D) a conspiracy among firms to set prices for a product or service. 
E) a seller's requirement that the purchaser of one product also buy another product in the line. 
A) the practice of charging different prices to different buyers for goods of like grade and quality. 
B) an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor. 
C) the practice of charging a very low price for a product with the intent of driving competitors out of business. 
D) a conspiracy among firms to set prices for a product or service. 
E) a seller's requirement that the purchaser of one product also buy another product in the line.

Question 18

According to Figure 14-1 above,"A" represents which step in the price-setting process?

Accepted Answer

A) raise initial capital 
B) identify pricing objectives and constraints 
C) scan competitors for prices of similar products or services 
D) select the appropriate pricing formula 
E) establish the price range 
A) raise initial capital 
B) identify pricing objectives and constraints 
C) scan competitors for prices of similar products or services 
D) select the appropriate pricing formula 
E) establish the price range

Question 19

What are the six major steps involved in setting prices?

Accepted Answer

The six major steps involved in setting

Question 20

Price fixing is illegal under the

Accepted Answer

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

Exam 14: Arriving at the Final Price

Tendollars.com offers thousands of gifts,all priced at $10.This is an example of a(n)__________.

To encourage retailers to pay their bills quickly,manufacturers offer them

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

Figure 14-3 above is a graph that shows which pricing strategy?

In some cases,penetration pricing may follow skimming pricing.The skimming pricing would help __________ and the penetration pricing would help __________.

When Amazon introduced the Kindle Fire tablet device at $199 while Apple was selling the lowest price iPad for $499,Amazon was using a __________ pricing strategy.

A manufacturer using __________ is setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

What pricing strategy did the National Aeronautics and Space Administration (NASA)use to pay Lockheed Martin for the Orion lunar spacecraft,which is shown in the photo above?

Consider Figure 14-8 above.Suppose a manufacturer quotes price in the following form: List price-$100 less 30/10/5.What does "B" represent?

Five pricing practices are closely scrutinized because of potential unethical or illegal actions.They include: (1)price fixing; (2)price discrimination; (3)deceptive pricing; (4)predatory pricing;and (5)__________.

Product-line pricing involves determining: (1)the lowest-priced product and price; (2)__________;and (3)the price differentials for all other products in the line.

When establishing product line pricing,the highest priced item is typically positioned as

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

According to the textbook,clothing manufacturer Christian Dior and retailer Neiman Marcus use __________ pricing.

Consider Figure 14-8 above.Suppose a manufacturer quotes price in the following form: List price-$100 less 30/10/5.What does $7.00 represent?

Price discrimination refers to

According to Figure 14-1 above,"A" represents which step in the price-setting process?

What are the six major steps involved in setting prices?

Price fixing is illegal under the

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

Filters

In some cases,penetration pricing may follow skimming pricing.The skimming pricing would help and the penetration pricing would help .