Question 1

The US government often uses Dutch auctions to procure supplies.

Accepted Answer

A) True 
 B)False

Question 2

When Sony introduced the first high-definition television to the Japanese market in 1990, it was priced at $43,000, which is an example of partial-cost recovery pricing.

Accepted Answer

A) True 
 B)False

Question 3

Companies that aim to ________ strive to be affordable luxuries.

Accepted Answer

A)  survive in the market 
B)  partially recover their costs 
C)  maximize their market share 
D)  pursue value pricing 
E)  be product-quality leaders 
A)  survive in the market 
B)  partially recover their costs 
C)  maximize their market share 
D)  pursue value pricing 
E)  be product-quality leaders

Question 4

After estimating the demand and costs associated with alternative prices, a company has chosen to price its product in such a way that it gains the highest rate of return on its investment. The company is looking to ________.

Accepted Answer

A)  maximize market share 
B)  skim the market 
C)  become a product-quality leader 
D)  survive in the market 
E)  maximize current profit 
A)  maximize market share 
B)  skim the market 
C)  become a product-quality leader 
D)  survive in the market 
E)  maximize current profit

Question 5

Daryl convinced his prospective client that Car A was the best for him. But, the client insisted that the car cost him a good $10,000 more than Car B, the one which he was thinking of buying. Daryl told him that the amount he would have to spend on the fuel, insurance, repairs, and maintenance for Car B would be 5 times more than what he would have to spend on Car A. Finally convinced, the client consented to buy Car A. What technique did Daryl use to convince his customer?

Accepted Answer

Daryl convinced his

Question 6

________ refers to selling below cost with the intention of destroying competition.

Accepted Answer

A)  Bid rigging 
B)  Loss-leader pricing 
C)  Predatory pricing 
D)  Price discrimination 
E)  Price penetration 
A)  Bid rigging 
B)  Loss-leader pricing 
C)  Predatory pricing 
D)  Price discrimination 
E)  Price penetration

Question 7

________ price refers to what the consumers feel the product should cost.

Accepted Answer

A)  Fair 
B)  Typical 
C)  Usual discounted 
D)  List 
E)  Maximum retail 
A)  Fair 
B)  Typical 
C)  Usual discounted 
D)  List 
E)  Maximum retail

Question 8

Movie matinees are priced lower than the evening shows at local theaters; television advertising costs less when run after midnight. These are examples of what type of price discrimination?

Accepted Answer

These are examples o

Question 9

Companies prefer customers who are less price sensitive.

Accepted Answer

A) True 
 B)False

Question 10

The airline and hospitality industries use ________, by which they offer discounted but limited early purchases, higher-priced late purchases, and the lowest rates on unsold inventory just before it expires.

Accepted Answer

A)  special-customer pricing 
B)  yield pricing 
C)  cash rebates 
D)  location pricing 
E)  customer-segment pricing 
A)  special-customer pricing 
B)  yield pricing 
C)  cash rebates 
D)  location pricing 
E)  customer-segment pricing

Question 11

In target-return pricing, the firm adds a standard markup to the product's cost.

Accepted Answer

A) True 
 B)False

Question 12

Agatha's Inc. is about to introduce a new product in the market, but is not sure as to how it should price the product. The company is facing intense competition from five other companies. In the past, it has also failed to keep up with the changing consumer wants. In such a situation, what should be its main objective?

Accepted Answer

The main objective for Agatha's Inc. sho

Question 13

When higher-priced competitors match lower prices of their competitors but have longer staying power because of deeper cash reserves, it leads to a(n) ________ trap.

Accepted Answer

A)  low-quality 
B)  fragile-market-share 
C)  price war 
D)  escalator 
E)  shallow-pockets 
A)  low-quality 
B)  fragile-market-share 
C)  price war 
D)  escalator 
E)  shallow-pockets

The US government often uses Dutch auctions to procure supplies.

When Sony introduced the first high-definition television to the Japanese market in 1990, it was priced at $43,000, which is an example of partial-cost recovery pricing.

Companies that aim to ________ strive to be affordable luxuries.

After estimating the demand and costs associated with alternative prices, a company has chosen to price its product in such a way that it gains the highest rate of return on its investment. The company is looking to ________.

________ refers to selling below cost with the intention of destroying competition.

________ price refers to what the consumers feel the product should cost.

Movie matinees are priced lower than the evening shows at local theaters; television advertising costs less when run after midnight. These are examples of what type of price discrimination?

Companies prefer customers who are less price sensitive.

The airline and hospitality industries use ________, by which they offer discounted but limited early purchases, higher-priced late purchases, and the lowest rates on unsold inventory just before it expires.

In target-return pricing, the firm adds a standard markup to the product's cost.

When higher-priced competitors match lower prices of their competitors but have longer staying power because of deeper cash reserves, it leads to a(n) ________ trap.

Defining Marketing for the New Realities

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Creating Long-Term Loyalty Relationships

Analyzing Consumer Markets

Analyzing Business Markets

Tapping Into Global Markets

Identifying Market Segments and Targets

Crafting the Brand Positioning

Creating Brand Equity

Addressing Competition and Driving Growth

Setting Product Strategy

Designing and Managing Services

Introducing New Market Offerings

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Digital Communications: Online, Social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Managing a Holistic Marketing Organization for the Long Run

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Exam 16: Developing Pricing Strategies and Programs

The US government often uses Dutch auctions to procure supplies.

When Sony introduced the first high-definition television to the Japanese market in 1990, it was priced at $43,000, which is an example of partial-cost recovery pricing.

Companies that aim to ________ strive to be affordable luxuries.

After estimating the demand and costs associated with alternative prices, a company has chosen to price its product in such a way that it gains the highest rate of return on its investment. The company is looking to ________.

________ refers to selling below cost with the intention of destroying competition.

________ price refers to what the consumers feel the product should cost.

Movie matinees are priced lower than the evening shows at local theaters; television advertising costs less when run after midnight. These are examples of what type of price discrimination?

Companies prefer customers who are less price sensitive.

The airline and hospitality industries use ________, by which they offer discounted but limited early purchases, higher-priced late purchases, and the lowest rates on unsold inventory just before it expires.

In target-return pricing, the firm adds a standard markup to the product's cost.

When higher-priced competitors match lower prices of their competitors but have longer staying power because of deeper cash reserves, it leads to a(n) ________ trap.

Defining Marketing for the New Realities

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Creating Long-Term Loyalty Relationships

Analyzing Consumer Markets

Analyzing Business Markets

Tapping Into Global Markets

Identifying Market Segments and Targets

Crafting the Brand Positioning

Creating Brand Equity

Addressing Competition and Driving Growth

Setting Product Strategy

Designing and Managing Services

Introducing New Market Offerings

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Digital Communications: Online, Social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Managing a Holistic Marketing Organization for the Long Run

Filters