Question 1

A price indifference band is that section of the price increase in which the consumer does not notice or does not have any effect in demand.

Accepted Answer

A) True 
 B)False

Question 2

In some cases,price is not as important as quality and other benefits in the market offering.

Accepted Answer

A) True 
 B)False

Question 3

An increasing number of companies now base their price on the customer's ________ of their products.

Accepted Answer

A) usage 
B) EDLP pricing 
C) everyday value pricing 
D) perceived value 
E) value proposition 
A) usage 
B) EDLP pricing 
C) everyday value pricing 
D) perceived value 
E) value proposition

Question 4

In oligopolistic industries that sell a commodity,firms base their prices largely on competitors' prices.This is an example of ________.

Accepted Answer

A) EDLP 
B) countertrade 
C) price discrimination 
D) going-rate pricing 
E) high-low pricing 
A) EDLP 
B) countertrade 
C) price discrimination 
D) going-rate pricing 
E) high-low pricing

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

The key to effectively using perceived-value pricing is always to deliver the same or equal value as your competitors.

Accepted Answer

A) True 
 B)False

Question 7

To maximize market share,a firm may use _____________ pricing,which is based on the theory that as sales volume increases,unit costs will decrease.

Accepted Answer

A) market-penetration 
B) market-skimming 
C) value pricing 
D) demand pricing 
E) price bands 
A) market-penetration 
B) market-skimming 
C) value pricing 
D) demand pricing 
E) price bands

Question 8

________ is the result of a concentrated effort by designers,engineers,and purchasing agents to reduce the product's overall costs.

Accepted Answer

A) Learning curve 
B) Target costing 
C) Least cost producer 
D) Experience curve 
E) None of the above 
A) Learning curve 
B) Target costing 
C) Least cost producer 
D) Experience curve 
E) None of the above

Question 9

Market-skimming prices make sense under the following conditions EXCEPT ________.

Accepted Answer

A) the high price communicates high value 
B) the high initial price blocks competition from entering the market 
C) the unit costs of producing a small number of units are not too high 
D) the product is a "me-too" and contains no new technology or points of difference 
E) a sufficient number of buyers have a high current demand 
A) the high price communicates high value 
B) the high initial price blocks competition from entering the market 
C) the unit costs of producing a small number of units are not too high 
D) the product is a "me-too" and contains no new technology or points of difference 
E) a sufficient number of buyers have a high current demand

Question 10

Many consumers use price as an indicator of ________.Image pricing is especially effective with ego-sensitive products such as perfumes and expensive cars.

Accepted Answer

A) status 
B) quality 
C) ability 
D) capability 
E) size 
A) status 
B) quality 
C) ability 
D) capability 
E) size

Question 11

Under what conditions is demand likely to be less elastic for a product?

Accepted Answer

Demand is likely to be less elastic unde

Question 12

The three major considerations in price setting are: costs set the floor price;________;and customers' assessment of unique features establishes the price ceiling.

Accepted Answer

A) competitors' prices and the price of substitutes provide an orientation point 
B) competitors' prices establishes a "target price" goal 
C) the price of substitutes establishes a "target price" 
D) the price of competitors and substitutes does not enter into the pricing considerations. 
E) none of the above 
A) competitors' prices and the price of substitutes provide an orientation point 
B) competitors' prices establishes a "target price" goal 
C) the price of substitutes establishes a "target price" 
D) the price of competitors and substitutes does not enter into the pricing considerations. 
E) none of the above

Question 13

Most companies will ________ their list price and give discounts and allowances for early payments,volume purchases,and off-season buying.

Accepted Answer

A) raise 
B) increase 
C) reduce 
D) adjust 
E) none of the above 
A) raise 
B) increase 
C) reduce 
D) adjust 
E) none of the above

Question 14

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

Accepted Answer

A) current actual 
B) last purchased price 
C) current sale price 
D) referent price 
E) none of the above 
A) current actual 
B) last purchased price 
C) current sale price 
D) referent price 
E) none of the above

Question 15

The quantity demanded of your firm's product increased only 5% when the price of each unit was reduced by 33%.This is an example of what type of demand?

Accepted Answer

A) Elastic 
B) Coefficient 
C) Unitary 
D) Inelastic 
E) None of the above 
A) Elastic 
B) Coefficient 
C) Unitary 
D) Inelastic 
E) None of the above

Question 16

Some of the considerations that companies face when deciding to match a competitor's price decline include the product's importance in the company's portfolio,the competitor's intentions,and the ________.

Accepted Answer

A) reaction by the channels of distribution 
B) shareholder value 
C) market's price and quality sensitivity 
D) ordering time frames for the product 
E) ordering ease for the product 
A) reaction by the channels of distribution 
B) shareholder value 
C) market's price and quality sensitivity 
D) ordering time frames for the product 
E) ordering ease for the product

Question 17

A major circumstance provoking price increases is cost inflation.

Accepted Answer

A) True 
 B)False

Question 18

EDLP pricing is a type of going-rate pricing in which the retailer sets low prices everyday on selected items.

Accepted Answer

A) True 
 B)False

Question 19

In recent years,companies have adopted ________,trying to win loyal customers by charging a fairly low price for a high-quality offering.

Accepted Answer

A) EDLP 
B) high-low pricing 
C) value pricing 
D) everyday low pricing 
E) none of the above 
A) EDLP 
B) high-low pricing 
C) value pricing 
D) everyday low pricing 
E) none of the above

Question 20

When the seller receives full payment in cash and agrees to spend a substantial amount of the money in a country within a stated time period,this is called offset.

Accepted Answer

A) True 
 B)False

Exam 14: Developing Pricing Strategies and Programs

A price indifference band is that section of the price increase in which the consumer does not notice or does not have any effect in demand.

In some cases,price is not as important as quality and other benefits in the market offering.

An increasing number of companies now base their price on the customer's ________ of their products.

In oligopolistic industries that sell a commodity,firms base their prices largely on competitors' prices.This is an example of ________.

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

The key to effectively using perceived-value pricing is always to deliver the same or equal value as your competitors.

To maximize market share,a firm may use _____________ pricing,which is based on the theory that as sales volume increases,unit costs will decrease.

________ is the result of a concentrated effort by designers,engineers,and purchasing agents to reduce the product's overall costs.

Market-skimming prices make sense under the following conditions EXCEPT ________.

Many consumers use price as an indicator of ________.Image pricing is especially effective with ego-sensitive products such as perfumes and expensive cars.

Under what conditions is demand likely to be less elastic for a product?

The three major considerations in price setting are: costs set the floor price;________;and customers' assessment of unique features establishes the price ceiling.

Most companies will ________ their list price and give discounts and allowances for early payments,volume purchases,and off-season buying.

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

The quantity demanded of your firm's product increased only 5% when the price of each unit was reduced by 33%.This is an example of what type of demand?

Some of the considerations that companies face when deciding to match a competitor's price decline include the product's importance in the company's portfolio,the competitor's intentions,and the ________.

A major circumstance provoking price increases is cost inflation.

EDLP pricing is a type of going-rate pricing in which the retailer sets low prices everyday on selected items.

In recent years,companies have adopted ________,trying to win loyal customers by charging a fairly low price for a high-quality offering.

When the seller receives full payment in cash and agrees to spend a substantial amount of the money in a country within a stated time period,this is called offset.

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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