Question 1

The key to effectively using perceived-value pricing is to deliver value that is on par with your competitors.

Accepted Answer

A) True 
 B)False

Question 2

When hotels drop their rates on the weekends,then this form of price discrimination is known as ________.

Accepted Answer

A) channel pricing 
B) image pricing 
C) product-form pricing 
D) time pricing 
E) location pricing 
A) channel pricing 
B) image pricing 
C) product-form pricing 
D) time pricing 
E) location pricing

Question 3

What are the different possible consumer reference prices?

Accepted Answer

Although consumers have fairly good know

Question 4

A company that pays its bills each month for its rent,heat,interest,and salaries regardless of its output is said to be incurring what type of costs?

Accepted Answer

These are

Question 5

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 6

Ellie's manager has asked her to come up with ways to reduce costs of their new product by utilizing a process called "target costing." What should Ellie do?

Accepted Answer

Ellie will have to ask the marketing res

Question 7

The minimum price that most consumers would pay for a given product is known as the ________ price.

Accepted Answer

A) everyday low 
B) usual discounted 
C) fair 
D) typical 
E) lower-bound 
A) everyday low 
B) usual discounted 
C) fair 
D) typical 
E) lower-bound

Question 8

In first-degree price discrimination,the seller charges less to buyers of larger volumes.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following auctions is characterized by one seller and many buyers?

Accepted Answer

A) All auctions 
B) ascending bid auctions 
C) closed auctions 
D) sealed-bid auctions 
E) reverse auctions 
A) All auctions 
B) ascending bid auctions 
C) closed auctions 
D) sealed-bid auctions 
E) reverse auctions

Question 10

Armac Ltd.is a sluice-box manufacturer based in China.A sluice-box is used for gold prospecting.Armac is interested in selling a few of its machines to an American mining company,but it wants 95 percent of the machines' price in gold and the rest in ores recovered by using the machines.This is an example of a ________.

Accepted Answer

A) buyback arrangement 
B) functional discount 
C) barter deal 
D) compensation deal 
E) sealed bid 
A) buyback arrangement 
B) functional discount 
C) barter deal 
D) compensation deal 
E) sealed bid

Question 11

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 12

________ pricing is a matter of reengineering the company's operations to become a low-cost producer without sacrificing quality.

Accepted Answer

A) Value 
B) Going-rate 
C) Auction-type 
D) Markup 
E) Perceived-value 
A) Value 
B) Going-rate 
C) Auction-type 
D) Markup 
E) Perceived-value

Question 13

In a compensation deal,the seller sells a plant,equipment,or technology to another country and agrees to accept as partial payment products manufactured with the supplied equipment.

Accepted Answer

A) True 
 B)False

Question 14

When Apple introduced its iPhone,it was priced at $599.This allowed Apple to earn the maximum amount of revenue from the various segments of the market.Two months after the introduction,the price has come down to $399.What kind of pricing did Apple adopt?

Accepted Answer

A) loss-leader pricing 
B) market-penetration pricing 
C) market-skimming pricing 
D) target-return pricing 
E) value pricing 
A) loss-leader pricing 
B) market-penetration pricing 
C) market-skimming pricing 
D) target-return pricing 
E) value pricing

Question 15

Price is one of the two elements of the marketing mix that produces revenue.

Accepted Answer

A) True 
 B)False

Question 16

________ let would-be suppliers submit only one bid;they cannot know the other bids.

Accepted Answer

A) Descending bid auctions 
B) Sealed-bid auctions 
C) English auctions 
D) Dutch auctions 
E) Reverse auctions 
A) Descending bid auctions 
B) Sealed-bid auctions 
C) English auctions 
D) Dutch auctions 
E) Reverse auctions

Question 17

If demand hardly changes with a small change in price,the demand is said to be ________.

Accepted Answer

A) strained 
B) marginal 
C) inelastic 
D) flexible 
E) unit elastic 
A) strained 
B) marginal 
C) inelastic 
D) flexible 
E) unit elastic

Question 18

Price discrimination in all forms is illegal in the United States.

Accepted Answer

A) True 
 B)False

Question 19

What is third-degree price discrimination?

Accepted Answer

In third-degree price discrimination,the

Question 20

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

Exam 14: Developing Pricing Strategies and Programs

The key to effectively using perceived-value pricing is to deliver value that is on par with your competitors.

When hotels drop their rates on the weekends,then this form of price discrimination is known as ________.

What are the different possible consumer reference prices?

A company that pays its bills each month for its rent,heat,interest,and salaries regardless of its output is said to be incurring what type of costs?

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

Ellie's manager has asked her to come up with ways to reduce costs of their new product by utilizing a process called "target costing." What should Ellie do?

The minimum price that most consumers would pay for a given product is known as the ________ price.

In first-degree price discrimination,the seller charges less to buyers of larger volumes.

Which of the following auctions is characterized by one seller and many buyers?

________ pricing is a matter of reengineering the company's operations to become a low-cost producer without sacrificing quality.

In a compensation deal,the seller sells a plant,equipment,or technology to another country and agrees to accept as partial payment products manufactured with the supplied equipment.

When Apple introduced its iPhone,it was priced at $599.This allowed Apple to earn the maximum amount of revenue from the various segments of the market.Two months after the introduction,the price has come down to $399.What kind of pricing did Apple adopt?

Price is one of the two elements of the marketing mix that produces revenue.

________ let would-be suppliers submit only one bid;they cannot know the other bids.

If demand hardly changes with a small change in price,the demand is said to be ________.

Price discrimination in all forms is illegal in the United States.

What is third-degree price discrimination?

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.

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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