Question 1

Companies pursue survival as their major objective if they are plagued with ________.

Accepted Answer

A) legal prosecution 
B) weak competition 
C) static consumer wants 
D) shareholder activism 
E) overcapacity 
A) legal prosecution 
B) weak competition 
C) static consumer wants 
D) shareholder activism 
E) overcapacity E

Question 2

As the marketing manager for your product,you have been forced to take a price increase due to cost pressures from your suppliers.After adjusting for customer and consumer demand fluctuations and elasticity,you feel that you have accounted for all possible reactions.Your boss,however,feels differently and says that your recommendations are not complete.What other factors,besides consumer/customers,are affected by price changes?

Accepted Answer

Other parties that must be accounted for include distributors and dealers,the sales force,suppliers,government agencies,and your competitors.

Question 3

A(n)________ is offered by a manufacturer to trade-channel members if they will perform certain functions,such as selling,storing,and record keeping.

Accepted Answer

A) functional discount 
B) quantity discount 
C) allowance 
D) cash discount 
E) none of the above 
A) functional discount 
B) quantity discount 
C) allowance 
D) cash discount 
E) none of the above A

Question 4

An increasing number of companies are basing their prices on the customer's perceived value.Explain the concept of "perceived value" and identify the key to pricing in this manner.

Accepted Answer

Perceived value is made up of several el

Question 5

A major circumstance provoking price increases is ________.

Accepted Answer

A) market demand 
B) profitability versus target 
C) cost inflation 
D) price versus competition 
E) stock price versus target price 
A) market demand 
B) profitability versus target 
C) cost inflation 
D) price versus competition 
E) stock price versus target price

Question 6

How can the Internet impact consumer price sensitivity?

Accepted Answer

Research has found that in some establis

Question 7

Value pricing is a matter of reengineering the company's operations to become a low-cost producer.

Accepted Answer

A) True 
 B)False

Question 8

Price elasticity depends upon the magnitude and direction of the contemplated price change.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) Total costs 
B) Manufacturing costs 
C) Delivery costs 
D) Fixed costs 
E) Variable costs 
A) Total costs 
B) Manufacturing costs 
C) Delivery costs 
D) Fixed costs 
E) Variable costs

Question 10

The most elementary pricing method is to add a standard ________ to the product's cost.

Accepted Answer

A) target margin 
B) target price 
C) markup 
D) margin 
E) target-return 
A) target margin 
B) target price 
C) markup 
D) margin 
E) target-return

Question 11

Identify and describe three methods companies can use to attempt to measure their demand curves.

Accepted Answer

Companies can use surveys of consumer pu

Question 12

A quantity discount is a price reduction given to those who buy a large volume of the manufacturer's products.

Accepted Answer

A) True 
 B)False

Question 13

In large companies,pricing is typically set by the boss.

Accepted Answer

A) True 
 B)False

Question 14

The price a firm charges for its product does not affect where it chooses to position the product in the marketplace.

Accepted Answer

A) True 
 B)False

Question 15

Your competitor has reduced prices on his entire line of products.You can interpret these price cuts by assuming that your competitor is trying to gain market share,is doing poorly and wants to increase revenue quickly,or ________.

Accepted Answer

A) signals an end to price/promotion wars 
B) signals that price is no longer a competitive advantage 
C) wants the whole industry to reduce prices 
D) wants you to reduce your prices below his 
E) none of the above 
A) signals an end to price/promotion wars 
B) signals that price is no longer a competitive advantage 
C) wants the whole industry to reduce prices 
D) wants you to reduce your prices below his 
E) none of the above

Question 16

Movie matinees are priced lower than the evening shows;afternoon ball games are sometimes priced cheaper than the evening games,television advertising costs less when run after midnight.These are examples of what type of price discrimination?

Accepted Answer

These are examples o

Question 17

When prices start off high and are slowly lowered over time,this is called market-skimming pricing.

Accepted Answer

A) True 
 B)False

Question 18

________ occurs when a company sells a product or service at two or more prices that do not reflect a proportional difference in costs.

Accepted Answer

A) Psychological pricing 
B) Loss-leader pricing 
C) Product-form pricing 
D) Customer-segment pricing 
E) Price discrimination 
A) Psychological pricing 
B) Loss-leader pricing 
C) Product-form pricing 
D) Customer-segment pricing 
E) Price discrimination

Question 19

Your local retailer has instituted an EDLP pricing program for his stores.What would one of the reasons be for the retailer to adopt an EDLP pricing policy?

Accepted Answer

Constant sales and promotions

Question 20

Your company has invested $1,000,000 in plant and equipment and wants to ensure that it receives a 20% ROI on the pricing of its products.This 20% translates into $200,000.At a $16.00 cost and a 50,000 expected sales volume,at what price must your product "go out the door" to satisfy this ROI return?

Accepted Answer

A) $24.00 
B) $20.00 
C) $40.00 
D) $44.00 
E) none of the above 
A) $24.00 
B) $20.00 
C) $40.00 
D) $44.00 
E) none of the above

Companies pursue survival as their major objective if they are plagued with ________.

A(n)________ is offered by a manufacturer to trade-channel members if they will perform certain functions,such as selling,storing,and record keeping.

An increasing number of companies are basing their prices on the customer's perceived value.Explain the concept of "perceived value" and identify the key to pricing in this manner.

A major circumstance provoking price increases is ________.

How can the Internet impact consumer price sensitivity?

Value pricing is a matter of reengineering the company's operations to become a low-cost producer.

Price elasticity depends upon the magnitude and direction of the contemplated price change.

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

The most elementary pricing method is to add a standard ________ to the product's cost.

Identify and describe three methods companies can use to attempt to measure their demand curves.

A quantity discount is a price reduction given to those who buy a large volume of the manufacturer's products.

In large companies,pricing is typically set by the boss.

The price a firm charges for its product does not affect where it chooses to position the product in the marketplace.

Your competitor has reduced prices on his entire line of products.You can interpret these price cuts by assuming that your competitor is trying to gain market share,is doing poorly and wants to increase revenue quickly,or ________.

Movie matinees are priced lower than the evening shows;afternoon ball games are sometimes priced cheaper than the evening games,television advertising costs less when run after midnight.These are examples of what type of price discrimination?

When prices start off high and are slowly lowered over time,this is called market-skimming pricing.

________ occurs when a company sells a product or service at two or more prices that do not reflect a proportional difference in costs.

Your local retailer has instituted an EDLP pricing program for his stores.What would one of the reasons be for the retailer to adopt an EDLP pricing policy?

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

Dealing With Competition

Setting Product Strategy

Designing and Managing Services

Designing and Managing Integrated Marketing

Managing Retailing, wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications:

Managing Personal Communications:

Introducing New Market Offerings

Tapping Into Global Markets

Managing a Holistic Marketing Organization

Filters

Exam 14: Developing Pricing Strategies and Programs

Companies pursue survival as their major objective if they are plagued with ________.

A(n)________ is offered by a manufacturer to trade-channel members if they will perform certain functions,such as selling,storing,and record keeping.

An increasing number of companies are basing their prices on the customer's perceived value.Explain the concept of "perceived value" and identify the key to pricing in this manner.

A major circumstance provoking price increases is ________.

How can the Internet impact consumer price sensitivity?

Value pricing is a matter of reengineering the company's operations to become a low-cost producer.

Price elasticity depends upon the magnitude and direction of the contemplated price change.

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

The most elementary pricing method is to add a standard ________ to the product's cost.

Identify and describe three methods companies can use to attempt to measure their demand curves.

A quantity discount is a price reduction given to those who buy a large volume of the manufacturer's products.

In large companies,pricing is typically set by the boss.

The price a firm charges for its product does not affect where it chooses to position the product in the marketplace.

Your competitor has reduced prices on his entire line of products.You can interpret these price cuts by assuming that your competitor is trying to gain market share,is doing poorly and wants to increase revenue quickly,or ________.

Movie matinees are priced lower than the evening shows;afternoon ball games are sometimes priced cheaper than the evening games,television advertising costs less when run after midnight.These are examples of what type of price discrimination?

When prices start off high and are slowly lowered over time,this is called market-skimming pricing.

________ occurs when a company sells a product or service at two or more prices that do not reflect a proportional difference in costs.

Your local retailer has instituted an EDLP pricing program for his stores.What would one of the reasons be for the retailer to adopt an EDLP pricing policy?

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

Dealing With Competition

Setting Product Strategy

Designing and Managing Services

Designing and Managing Integrated Marketing

Managing Retailing, wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications:

Managing Personal Communications:

Introducing New Market Offerings

Tapping Into Global Markets

Managing a Holistic Marketing Organization

Filters