Question 1

In high-low pricing, retailers charge low prices on an everyday basis with occasional price increases.

Accepted Answer

A) True 
 B)False

Question 2

Companies prefer customers who are less price-sensitive.

Accepted Answer

A) True 
 B)False

Question 3

When Carl's company introduced its new product in the market, it introduced it at the lowest possible price assuming that the demand for the product is going to be highly responsive to the price it is being introduced at. It also believes that a higher sales volume will lead to lower unit costs and higher long-run profit. What can be said about the company's objective?

Accepted Answer

The company's object

Question 4

Companies strive to maximize their current profits if they are plagued with overcapacity, intense competition, or changing consumer wants.

Accepted Answer

A) True 
 B)False

Question 5

Madame Tussaud's wax museum is a popular tourist attraction. The museum charges higher entry rates for tourists compared to locals. This form of price discrimination is known as ________.

Accepted Answer

A)  customer-segment pricing 
B)  image pricing 
C)  location pricing 
D)  special customer pricing 
E)  special event pricing 
A)  customer-segment pricing 
B)  image pricing 
C)  location pricing 
D)  special customer pricing 
E)  special event pricing

Question 6

Agatha's 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 5 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 should b

Question 7

Which of the following is the most elementary pricing method?

Accepted Answer

A)  value pricing 
B)  going-rate pricing 
C)  markup pricing 
D)  target-return pricing 
E)  perceived-value pricing 
A)  value pricing 
B)  going-rate pricing 
C)  markup pricing 
D)  target-return pricing 
E)  perceived-value pricing

Question 8

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 9

For price discrimination to work, ________.

Accepted Answer

A)  the market must be segmentable and the segments must show similar intensities of demand 
B)  members in the lower-price segment must be able to resell the product to the higher-price segment 
C)  competitors must be able to undersell the firm in the higher-price segment 
D)  the practice must not breed customer resentment and ill will 
E)  the extra revenue derived from price discrimination must not exceed the cost of segmenting and policing the market 
A)  the market must be segmentable and the segments must show similar intensities of demand 
B)  members in the lower-price segment must be able to resell the product to the higher-price segment 
C)  competitors must be able to undersell the firm in the higher-price segment 
D)  the practice must not breed customer resentment and ill will 
E)  the extra revenue derived from price discrimination must not exceed the cost of segmenting and policing the market

Question 10

Loss leader pricing dilutes a company's brand image.

Accepted Answer

A) True 
 B)False

Question 11

When firms charge different prices to different customer groups for the same product or service, it is a case of second-degree price discrimination.

Accepted Answer

A) True 
 B)False

Question 12

What are the different types of price discounts and allowances?

Accepted Answer

The different types of price discounts a

Question 13

What are the different types of promotional pricing?

Accepted Answer

Companies can use any of the following p

Question 14

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

Accepted Answer

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

Question 15

Explain the concept of overdemand.

Accepted Answer

One of the factors that prompt a firm to

Question 16

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 17

Escalator clauses are found in contracts for major industrial projects, such as aircraft construction and bridge building.

Accepted Answer

A) True 
 B)False

Question 18

Psychological discounting involves setting an artificially high price and then offering the product at substantial savings.

Accepted Answer

A) True 
 B)False

Question 19

A firm is said to be following a market-skimming pricing strategy, if it introduces a product into the market at a high price and slowly drops the price over time.

Accepted Answer

A) True 
 B)False

Question 20

In the case of prestige goods, the demand curve sometimes slopes upward.

Accepted Answer

A) True 
 B)False

In high-low pricing, retailers charge low prices on an everyday basis with occasional price increases.

Companies prefer customers who are less price-sensitive.

Companies strive to maximize their current profits if they are plagued with overcapacity, intense competition, or changing consumer wants.

Madame Tussaud's wax museum is a popular tourist attraction. The museum charges higher entry rates for tourists compared to locals. This form of price discrimination is known as ________.

Which of the following is the most elementary pricing method?

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.

For price discrimination to work, ________.

Loss leader pricing dilutes a company's brand image.

When firms charge different prices to different customer groups for the same product or service, it is a case of second-degree price discrimination.

What are the different types of price discounts and allowances?

What are the different types of promotional pricing?

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

Explain the concept of overdemand.

Companies that aim to ________ strive to be affordable luxuries.

Escalator clauses are found in contracts for major industrial projects, such as aircraft construction and bridge building.

Psychological discounting involves setting an artificially high price and then offering the product at substantial savings.

A firm is said to be following a market-skimming pricing strategy, if it introduces a product into the market at a high price and slowly drops the price over time.

In the case of prestige goods, the demand curve sometimes slopes upward.

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Gathering Information and Scanning the Environment

Conducting Marketing Research and Forecasting Demand

Creating Customer Value, Satisfaction, and Loyalty

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning

Competitive Dynamics

Setting Product Strategy

Designing and Managing Services

Designing and Managing Marketing Channels and Value Networks

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

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

Managing Personal Communications: Direct Marketing and Personal Selling

Introducing New Market Offerings

Tapping Into Global Markets

Managing a Holistic Marketing Organization for the Long Run

Filters

Exam 14: Developing Pricing Strategies and Programs

In high-low pricing, retailers charge low prices on an everyday basis with occasional price increases.

Companies prefer customers who are less price-sensitive.

Companies strive to maximize their current profits if they are plagued with overcapacity, intense competition, or changing consumer wants.

Madame Tussaud's wax museum is a popular tourist attraction. The museum charges higher entry rates for tourists compared to locals. This form of price discrimination is known as ________.

Which of the following is the most elementary pricing method?

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.

For price discrimination to work, ________.

Loss leader pricing dilutes a company's brand image.

When firms charge different prices to different customer groups for the same product or service, it is a case of second-degree price discrimination.

What are the different types of price discounts and allowances?

What are the different types of promotional pricing?

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

Explain the concept of overdemand.

Companies that aim to ________ strive to be affordable luxuries.

Escalator clauses are found in contracts for major industrial projects, such as aircraft construction and bridge building.

Psychological discounting involves setting an artificially high price and then offering the product at substantial savings.

A firm is said to be following a market-skimming pricing strategy, if it introduces a product into the market at a high price and slowly drops the price over time.

In the case of prestige goods, the demand curve sometimes slopes upward.

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Gathering Information and Scanning the Environment

Conducting Marketing Research and Forecasting Demand

Creating Customer Value, Satisfaction, and Loyalty

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning

Competitive Dynamics

Setting Product Strategy

Designing and Managing Services

Designing and Managing Marketing Channels and Value Networks

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

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

Managing Personal Communications: Direct Marketing and Personal Selling

Introducing New Market Offerings

Tapping Into Global Markets

Managing a Holistic Marketing Organization for the Long Run

Filters