Question 1

What are the different forms of countertrade?

Accepted Answer

Countertrade can take the following form

Question 2

When examining products,consumers compare an observed price to an internal reference price they remember or an external frame of reference.

Accepted Answer

A) True 
 B)False

Question 3

When Alan bought his car,the bank gave him 24 months to repay his car loan.But when Alan made a request to increase the time frame to 36 months,the bank granted the extension.The bank was willing to offer Alan a ________.

Accepted Answer

A) longer payment term 
B) warranty contract 
C) service contract 
D) special customer price 
E) special event price 
A) longer payment term 
B) warranty contract 
C) service contract 
D) special customer price 
E) special event price

Question 4

________ consist of the sum of the fixed and variable costs for any given level of production.

Accepted Answer

A) Total costs 
B) Average costs 
C) Opportunity costs 
D) Learning costs 
E) Target costs 
A) Total costs 
B) Average costs 
C) Opportunity costs 
D) Learning costs 
E) Target costs

Question 5

Many consumers are willing to pay $100 for a perfume that contains $10 worth of scent because the perfume is from a well-known brand.What kind of a pricing is the company depending on?

Accepted Answer

A) going-rate pricing 
B) image pricing 
C) market-skimming pricing 
D) target pricing 
E) markup pricing 
A) going-rate pricing 
B) image pricing 
C) market-skimming pricing 
D) target pricing 
E) markup pricing

Question 6

Bella's has estimated the demand and costs associated with alternative prices.It has finally chosen to price its new offering in such a way that it will maximize the rate of return on investment.What can be deduced about the company's objective?

Accepted Answer

It can be deduced th

Question 7

A(n)________ is an extra payment designed to gain reseller participation in special programs.

Accepted Answer

A) seasonal discount 
B) allowance 
C) discount 
D) quantity discount 
E) functional discount 
A) seasonal discount 
B) allowance 
C) discount 
D) quantity discount 
E) functional discount

Question 8

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

Question 9

________ 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 10

When a company requires the customers to pay today's price and all or part of any inflation increase that takes place before delivery,it is known as ________.

Accepted Answer

A) special-customer pricing 
B) an escalator clause 
C) delayed quotation pricing 
D) unbundling 
E) time pricing 
A) special-customer pricing 
B) an escalator clause 
C) delayed quotation pricing 
D) unbundling 
E) time pricing

Question 11

In oligopolistic industries,all firms normally charge the same price.What kind of a pricing method are they said to be following?

Accepted Answer

Oligopolistic industries follo

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

What are the different types of promotional pricing?

Accepted Answer

Companies can use any of the following p

Question 14

Purchase decisions are based on how consumers perceive prices and what they consider the current actual price to be-not the marketer's stated price.

Accepted Answer

A) True 
 B)False

Question 15

When Ian goes shopping,he comes across a T-shirt that is priced at $35.Although he wants to buy it,judging from the material used,he feels that the T-shirt should only cost $20.What reference price is Ian using here?

Accepted Answer

$20 is what Abe perc

Question 16

Value pricing requires a company to reengineer its operations to become a low-cost producer.

Accepted Answer

A) True 
 B)False

Question 17

In a price-war trap,higher-priced competitors match the firm's lower prices but have longer staying power because of deeper cash reserves.

Accepted Answer

A) True 
 B)False

Question 18

Offset is a form of countertrade where sellers receive full payment in cash and agree to spend a substantial amount of the money in the country where they are trading within a stated time period.

Accepted Answer

A) True 
 B)False

Question 19

Shrinking the amount of product instead of raising the price is a good way to counteract consumer resistances to price increases.

Accepted Answer

A) True 
 B)False

Question 20

A Japanese firm is ready to sell its recent technological innovation to the U.S.government.But it has asked for 80 percent in cash and the rest in mica.The Japanese firm is looking to enter into a(n)________ with the U.S.government.

Accepted Answer

A) functional discount 
B) compensation deal 
C) buyback arrangement 
D) offset agreement 
E) barter deal 
A) functional discount 
B) compensation deal 
C) buyback arrangement 
D) offset agreement 
E) barter deal

Exam 14: Developing Pricing Strategies and Programs

What are the different forms of countertrade?

When examining products,consumers compare an observed price to an internal reference price they remember or an external frame of reference.

When Alan bought his car,the bank gave him 24 months to repay his car loan.But when Alan made a request to increase the time frame to 36 months,the bank granted the extension.The bank was willing to offer Alan a ________.

________ consist of the sum of the fixed and variable costs for any given level of production.

Many consumers are willing to pay $100 for a perfume that contains $10 worth of scent because the perfume is from a well-known brand.What kind of a pricing is the company depending on?

Bella's has estimated the demand and costs associated with alternative prices.It has finally chosen to price its new offering in such a way that it will maximize the rate of return on investment.What can be deduced about the company's objective?

A(n)________ is an extra payment designed to gain reseller participation in special programs.

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.

When a company requires the customers to pay today's price and all or part of any inflation increase that takes place before delivery,it is known as ________.

In oligopolistic industries,all firms normally charge the same price.What kind of a pricing method are they said to be following?

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

What are the different types of promotional pricing?

Purchase decisions are based on how consumers perceive prices and what they consider the current actual price to be-not the marketer's stated price.

When Ian goes shopping,he comes across a T-shirt that is priced at $35.Although he wants to buy it,judging from the material used,he feels that the T-shirt should only cost $20.What reference price is Ian using here?

Value pricing requires a company to reengineer its operations to become a low-cost producer.

In a price-war trap,higher-priced competitors match the firm's lower prices but have longer staying power because of deeper cash reserves.

Offset is a form of countertrade where sellers receive full payment in cash and agree to spend a substantial amount of the money in the country where they are trading within a stated time period.

Shrinking the amount of product instead of raising the price is a good way to counteract consumer resistances to price increases.

A Japanese firm is ready to sell its recent technological innovation to the U.S.government.But it has asked for 80 percent in cash and the rest in mica.The Japanese firm is looking to enter into a(n)________ with the U.S.government.

Defining Marketing for the New Realities

Developing Marketing Strategies and Plans

Gathering Information and Forecasting Demand

Conducting Marketing Research

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 Digital Communications: Online, social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Introducing New Market Offerings

Tapping Into Global Markets

Managing a Holistic Marketing Organization

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