Question 1

As in all marketing decisions,the marketing intermediaries establish the basic premise for pricing.

Accepted Answer

A) True 
 B)False  False

Question 2

When _____ is used,the product is offered at a low price intended to generate volume sales and achieve high market share,which would compensate for a lower per-unit return.

Accepted Answer

A)   market pricing
B)   skimming
C)   penetration pricing
D)   isolation pricing C

Question 3

_____ is a compensation arrangement where one party agrees to supply technology or equipment that enables the other party to produce goods with which the price of the supplied products or technology is repaid.

Accepted Answer

A)   Clearing arrangements
B)   Buyback
C)   Switch trading
D)   Offset B

Question 4

Price should be determined in isolation from the other marketing mix elements.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a weak exporter strategy used under varying currency conditions?

Accepted Answer

A)   Speed repatriation
B)   Export prioritization
C)   Using nonprice competition
D)   Buying needed services abroad

Question 6

Why has price become such a dynamic element of the marketing mix?

Accepted Answer

The answer of Why has price become such a dynamic...

Question 7

What is a letter of credit?

Accepted Answer

A)   It is an instrument issued by a bank at the request of a buyer in which the bank promises to pay a specified amount of money on presentation of documents stipulated in the letter.
B)   It is a letter which states that after the seller ships the goods, the shipping documents and the draft demanding payment should be presented to the importer through banks acting as the seller's agent.
C)   It is a set of instructions given to shipping companies who have a line of vessels.
D)   It is an instrument of currency issued by a foreign government to the exporter.

Question 8

An option gives the holder the right to buy or sell foreign currency at a prespecified price on or up to a prespecified date.

Accepted Answer

A) True 
 B)False

Question 9

What are the two forms of risk which might affect an export transaction?

Accepted Answer

A)   Inward and outbound
B)   Unilateral and bilateral
C)   Commercial and political
D)   Contact and expatriate

Question 10

As more segments of the market are targeted and more of a product is made available,the price is gradually increased.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is considered as an external factor in setting the export price?

Accepted Answer

A)   Promotion needs
B)   Overall price position of firm
C)   Distribution system
D)   Exchange rate stability

Question 12

Which of the following is a strategy to compensate for price escalation?

Accepted Answer

A)   Weeding out government controls and avoiding them by entering markets through third parties
B)   Reorganizing the channel of distribution
C)   Reassessing customer needs by conducting market research
D)   Assembling products made with domestic components

Question 13

Political risk is a controllable variable,which the exporter controls through paying extra taxes or import duties.

Accepted Answer

A) True 
 B)False

Question 14

Market-differentiated pricing calls for export pricing according to the dynamic conditions of the marketplace.What are the three changes which might affect this type of pricing?

Accepted Answer

A)   Pre-, present, or post-fluctuations
B)   Competition, exchange rates, or environment
C)   Space, time, or utility
D)   Operations, media, or markets

Question 15

Under _____ to a named overseas port of import,the seller quotes a price for the goods including the cost of transportation to the named port of debarkation.The cost of insurance and the choice of insurer are left to the buyer.

Accepted Answer

A)   delivered duty paid
B)   cost and freight
C)   free on board
D)   free alongside ship

Question 16

The most favorable term to the exporter is cash in advance.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following allows an exporter to be refunded up to 99 percent of duties paid on imported goods when they are incorporated in articles that are subsequently exported within five years of the importation?

Accepted Answer

A)   Foreign sourcing
B)   Skimming
C)   Duty drawbacks
D)   Forfaiting

Question 18

_____ pricing calls for pricing exports according to the dynamic conditions of the marketplace.

Accepted Answer

A)   Marginal
B)   Market-differentiated
C)   Isolation
D)   Cost-plus

Question 19

For an exporter to use the _____ approach,the product has to be unique,and some segments of the market must be willing to pay the high price.

Accepted Answer

A)   extinction pricing
B)   skimming
C)   penetration pricing
D)   market pricing

Question 20

Reorganizing the channel of distribution can help overcome price escalation.

Accepted Answer

A) True 
 B)False

Exam 14: Pricing Strategies and Tactics

As in all marketing decisions,the marketing intermediaries establish the basic premise for pricing.

When _____ is used,the product is offered at a low price intended to generate volume sales and achieve high market share,which would compensate for a lower per-unit return.

_____ is a compensation arrangement where one party agrees to supply technology or equipment that enables the other party to produce goods with which the price of the supplied products or technology is repaid.

Price should be determined in isolation from the other marketing mix elements.

Which of the following is a weak exporter strategy used under varying currency conditions?

Why has price become such a dynamic element of the marketing mix?

What is a letter of credit?

An option gives the holder the right to buy or sell foreign currency at a prespecified price on or up to a prespecified date.

What are the two forms of risk which might affect an export transaction?

As more segments of the market are targeted and more of a product is made available,the price is gradually increased.

Which of the following is considered as an external factor in setting the export price?

Which of the following is a strategy to compensate for price escalation?

Political risk is a controllable variable,which the exporter controls through paying extra taxes or import duties.

Market-differentiated pricing calls for export pricing according to the dynamic conditions of the marketplace.What are the three changes which might affect this type of pricing?

Under _____ to a named overseas port of import,the seller quotes a price for the goods including the cost of transportation to the named port of debarkation.The cost of insurance and the choice of insurer are left to the buyer.

The most favorable term to the exporter is cash in advance.

Which of the following allows an exporter to be refunded up to 99 percent of duties paid on imported goods when they are incorporated in articles that are subsequently exported within five years of the importation?

_____ pricing calls for pricing exports according to the dynamic conditions of the marketplace.

For an exporter to use the _____ approach,the product has to be unique,and some segments of the market must be willing to pay the high price.

Reorganizing the channel of distribution can help overcome price escalation.