Question 1

The popularity of "early-bird" specials at restaurants is an example of what type of price discrimination?

Accepted Answer

A) Time pricing 
B) Channel pricing 
C) Image pricing 
D) Product-form pricing 
E) Customer-segment pricing 
A) Time pricing 
B) Channel pricing 
C) Image pricing 
D) Product-form pricing 
E) Customer-segment pricing

Question 2

As a small firm in a commodity industry,you are often faced with a pricing policy that can best be described as "going-rate pricing." Explain how this pricing policy works.

Accepted Answer

With "going-rate," pricing,the

Question 3

Pricing cues such as sale signs and prices that end in 9 become more influential when ________.

Accepted Answer

A) consumer price knowledge is poor 
B) items are purchased frequently 
C) items have been on the market a long time 
D) prices are consistent year-round 
E) they are employed frequently 
A) consumer price knowledge is poor 
B) items are purchased frequently 
C) items have been on the market a long time 
D) prices are consistent year-round 
E) they are employed frequently

Question 4

What is experience-curve pricing and what risks does it carry?

Accepted Answer

Experience-curve pricing is pricing belo

Question 5

________ sets a ceiling on the price the company can charge for its products.

Accepted Answer

A) Government regulations 
B) Market forces 
C) Costs 
D) Demand 
E) Competition 
A) Government regulations 
B) Market forces 
C) Costs 
D) Demand 
E) Competition

Question 6

How do EDLP and high-low pricing strategies affect consumer price judgments?

Accepted Answer

Deep discounts (EDLP)can lead

Question 7

Explain why "value pricing" is not just a matter of simply setting lower prices.

Accepted Answer

Value pricing is not just a matter of si

Question 8

Varying prices by time of the day,the season of the year,or the day of the week is called ________.

Accepted Answer

A) discounting 
B) time pricing 
C) price discrimination 
D) product-form pricing 
E) channel pricing 
A) discounting 
B) time pricing 
C) price discrimination 
D) product-form pricing 
E) channel pricing

Question 9

A British aircraft manufacturer sold planes to Brazil for 70% cash and the rest in coffee.This is an example of ________.

Accepted Answer

A) bartering 
B) a compensation deal 
C) a buyback arrangement 
D) an offset 
E) a price allowance 
A) bartering 
B) a compensation deal 
C) a buyback arrangement 
D) an offset 
E) a price allowance

Question 10

What is market skimming and where might you see market-skimming pricing practiced in consumer goods?

Accepted Answer

Market-skimming pricing is a s

Question 11

If demand changes considerably,we say that the demand is ________.

Accepted Answer

A) equal 
B) elastic 
C) inelastic 
D) marginal 
E) none of the above 
A) equal 
B) elastic 
C) inelastic 
D) marginal 
E) none of the above

Question 12

Given strong consumer resistance to price hikes,marketers go to great lengths to find alternative approaches that will allow them to postpone a price increase.Which of the following is NOT one of these approaches?

Accepted Answer

A) Reduce or eliminate some product features. 
B) Reduce or eliminate some services,such as free delivery. 
C) Shrink package sizes. 
D) Demand upfront payment before shipping goods. 
E) None of the above 
A) Reduce or eliminate some product features. 
B) Reduce or eliminate some services,such as free delivery. 
C) Shrink package sizes. 
D) Demand upfront payment before shipping goods. 
E) None of the above

Question 13

Your company is considering employing a "freemium" strategy.Identify five guidelines for success using this strategy.

Accepted Answer

Students may choose any five of the foll

Question 14

An increasing number of companies are basing their pricing on perceived value,which is the value that the consumer decides the product is worth and is the same across all incomes and regions of the company.

Accepted Answer

A) True 
 B)False

Question 15

Total costs consist of the sum of the fixed and variable costs associated with the product.

Accepted Answer

A) True 
 B)False

Question 16

Price elasticity depends on the magnitude and direction of the price change.If may differ for a price cut versus a price increase.When the price changes have little or no effect,there might exist a ________ for your product.

Accepted Answer

A) selective price 
B) price indifference band 
C) substitute product 
D) promotional price 
E) collective price 
A) selective price 
B) price indifference band 
C) substitute product 
D) promotional price 
E) collective price

Question 17

When firms charge different prices to different consumer groups (senior citizens for example),this is a form of price discrimination and is illegal.

Accepted Answer

A) True 
 B)False

Question 18

Companies sometimes initiate price cuts in a drive to dominate the market through lower costs.

Accepted Answer

A) True 
 B)False

Question 19

Manufacturing costs such as rent,utilities,interest expense,and some salaries are considered ________ and these costs do not vary with the production or sale of the item.

Accepted Answer

A) corporate overhead 
B) division overhead 
C) overhead 
D) fixed costs 
E) variable 
A) corporate overhead 
B) division overhead 
C) overhead 
D) fixed costs 
E) variable

Question 20

When a consumer buys a $100 bottle of perfume containing $10 worth of materials,the gift giver is communicating their high regard to the receiver,and this represents the concept of ________ in pricing.

Accepted Answer

A) maximum current profit 
B) price-quality relationship 
C) reference prices 
D) price cues 
E) price leadership 
A) maximum current profit 
B) price-quality relationship 
C) reference prices 
D) price cues 
E) price leadership

Exam 14: Developing Pricing Strategies and Programs

The popularity of "early-bird" specials at restaurants is an example of what type of price discrimination?

As a small firm in a commodity industry,you are often faced with a pricing policy that can best be described as "going-rate pricing." Explain how this pricing policy works.

Pricing cues such as sale signs and prices that end in 9 become more influential when ________.

What is experience-curve pricing and what risks does it carry?

________ sets a ceiling on the price the company can charge for its products.

How do EDLP and high-low pricing strategies affect consumer price judgments?

Explain why "value pricing" is not just a matter of simply setting lower prices.

Varying prices by time of the day,the season of the year,or the day of the week is called ________.

A British aircraft manufacturer sold planes to Brazil for 70% cash and the rest in coffee.This is an example of ________.

What is market skimming and where might you see market-skimming pricing practiced in consumer goods?

If demand changes considerably,we say that the demand is ________.

Given strong consumer resistance to price hikes,marketers go to great lengths to find alternative approaches that will allow them to postpone a price increase.Which of the following is NOT one of these approaches?

Your company is considering employing a "freemium" strategy.Identify five guidelines for success using this strategy.

An increasing number of companies are basing their pricing on perceived value,which is the value that the consumer decides the product is worth and is the same across all incomes and regions of the company.

Total costs consist of the sum of the fixed and variable costs associated with the product.

Price elasticity depends on the magnitude and direction of the price change.If may differ for a price cut versus a price increase.When the price changes have little or no effect,there might exist a ________ for your product.

When firms charge different prices to different consumer groups (senior citizens for example),this is a form of price discrimination and is illegal.

Companies sometimes initiate price cuts in a drive to dominate the market through lower costs.

Manufacturing costs such as rent,utilities,interest expense,and some salaries are considered ________ and these costs do not vary with the production or sale of the item.

When a consumer buys a $100 bottle of perfume containing $10 worth of materials,the gift giver is communicating their high regard to the receiver,and this represents the concept of ________ in pricing.

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

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