Question 1

Excess capacity leads to companies initiating an increase in price.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following factors would most likely lead to a company initiating a price cut?

Accepted Answer

A)  overdemand 
B)  weakened economy 
C)  poor competition 
D)  cost inflation 
E)  weak price competition 
A)  overdemand 
B)  weakened economy 
C)  poor competition 
D)  cost inflation 
E)  weak price competition

Question 3

Segmented pricing is only effective when ________.

Accepted Answer

A)  the segments show similar degrees of demand 
B)  the cost of segmenting does not exceed the revenue obtained from the price difference 
C)  the segmented prices do not reflect real differences in customers' perceived value 
D)  the customers of different socio-economic classes are treated according to their rank 
E)  companies make their services and products accessible exclusively to wealthy patrons 
A)  the segments show similar degrees of demand 
B)  the cost of segmenting does not exceed the revenue obtained from the price difference 
C)  the segmented prices do not reflect real differences in customers' perceived value 
D)  the customers of different socio-economic classes are treated according to their rank 
E)  companies make their services and products accessible exclusively to wealthy patrons

Question 4

________ is a pricing strategy in which the company sets up two or more clearly identified geographic regions within which all customers pay the same total price.

Accepted Answer

A)  Freight-absorption pricing 
B)  Zone pricing 
C)  Uniform-delivered pricing 
D)  FOB-origin pricing 
E)  Basing-point pricing 
A)  Freight-absorption pricing 
B)  Zone pricing 
C)  Uniform-delivered pricing 
D)  FOB-origin pricing 
E)  Basing-point pricing

Question 5

List four types of discounts.

Accepted Answer

Four types of discounts are ca

Question 6

Which of the following is true of market-penetration pricing?

Accepted Answer

A)  It should be used when the product's quality and image support a high price. 
B)  It involves setting a high price for a new product to appeal to the elite in society. 
C)  It results in drawing in large numbers of buyers quickly, winning a large market share. 
D)  It is best used in conjunction with a market-skimming pricing strategy. 
E)  It results in the company making fewer and less profitable sales. 
A)  It should be used when the product's quality and image support a high price. 
B)  It involves setting a high price for a new product to appeal to the elite in society. 
C)  It results in drawing in large numbers of buyers quickly, winning a large market share. 
D)  It is best used in conjunction with a market-skimming pricing strategy. 
E)  It results in the company making fewer and less profitable sales.

Question 7

Mark's Markers, a manufacturer of white board markers, has required its dealers to charge a specified retail price for its markers. Mark's is most likely guilty of ________.

Accepted Answer

A)  captive pricing 
B)  retail price maintenance 
C)  price discrimination 
D)  competitive pricing 
E)  unfair price skimming 
A)  captive pricing 
B)  retail price maintenance 
C)  price discrimination 
D)  competitive pricing 
E)  unfair price skimming

Question 8

In product line pricing, the price steps should account for differences in customer perceptions of the value of different features.

Accepted Answer

A) True 
 B)False

Question 9

Give two examples of products for which marketers might use optional-product pricing.

Accepted Answer

Such products may include refr

Question 10

What is deceptive pricing?

Accepted Answer

Deceptive pricing occurs when

Question 11

The uniform-delivered pricing strategy means that the goods sold are placed free on board a carrier with the customer paying the freight from the factory to the destination.

Accepted Answer

A) True 
 B)False

Question 12

A number of top fashion-modeling agencies would most likely be charged with ________ for jointly determining what commissions they charge for models.

Accepted Answer

A)  prestige pricing 
B)  competitive pricing 
C)  price bundling 
D)  dynamic pricing 
E)  price fixing 
A)  prestige pricing 
B)  competitive pricing 
C)  price bundling 
D)  dynamic pricing 
E)  price fixing

Question 13

Compare the practices of price fixing and predatory pricing, explaining why each is prohibited by law.

Accepted Answer

Many federal, state, and local laws gove

Question 14

Why is identifying predatory pricing difficult?

Accepted Answer

Selling below cost to unload excess inve

Question 15

Give two examples of products for which captive product pricing might be used.

Accepted Answer

Examples of captive products a

Question 16

A(n) ________ refers to promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way.

Accepted Answer

A)  allowance 
B)  sample 
C)  discount 
D)  tax credit 
E)  tax exemption 
A)  allowance 
B)  sample 
C)  discount 
D)  tax credit 
E)  tax exemption

Question 17

Which of the following price adjustment strategies involves reducing prices to reward customer responses such as volume purchases, paying early, or promoting the product promptly?

Accepted Answer

A)  product bundle pricing 
B)  captive product pricing 
C)  product line pricing 
D)  dynamic pricing 
E)  discount and allowance pricing 
A)  product bundle pricing 
B)  captive product pricing 
C)  product line pricing 
D)  dynamic pricing 
E)  discount and allowance pricing

Question 18

Which of the following involves adjusting prices to account for the physical location of customers?

Accepted Answer

A)  location-based pricing 
B)  geographic pricing 
C)  domestic pricing 
D)  interior pricing 
E)  captive pricing 
A)  location-based pricing 
B)  geographic pricing 
C)  domestic pricing 
D)  interior pricing 
E)  captive pricing

Question 19

Which of the following is an adverse effect of using promotional pricing?

Accepted Answer

A)  It makes shopping stressful if used by multiple stores simultaneously. 
B)  It erodes the value of competing brands in the eyes of customers. 
C)  It gives pricing secrets away to competitors. 
D)  It creates "deal-immune" customers if used often. 
E)  It delays the company's focus on short-term strategies. 
A)  It makes shopping stressful if used by multiple stores simultaneously. 
B)  It erodes the value of competing brands in the eyes of customers. 
C)  It gives pricing secrets away to competitors. 
D)  It creates "deal-immune" customers if used often. 
E)  It delays the company's focus on short-term strategies.

Question 20

Low-interest financing and longer warranties are both examples of ________.

Accepted Answer

A)  segmented pricing 
B)  promotional pricing 
C)  product bundling pricing 
D)  captive product pricing 
E)  product-form pricing 
A)  segmented pricing 
B)  promotional pricing 
C)  product bundling pricing 
D)  captive product pricing 
E)  product-form pricing

Excess capacity leads to companies initiating an increase in price.

Which of the following factors would most likely lead to a company initiating a price cut?

Segmented pricing is only effective when ________.

________ is a pricing strategy in which the company sets up two or more clearly identified geographic regions within which all customers pay the same total price.

List four types of discounts.

Which of the following is true of market-penetration pricing?

Mark's Markers, a manufacturer of white board markers, has required its dealers to charge a specified retail price for its markers. Mark's is most likely guilty of ________.

In product line pricing, the price steps should account for differences in customer perceptions of the value of different features.

Give two examples of products for which marketers might use optional-product pricing.

What is deceptive pricing?

The uniform-delivered pricing strategy means that the goods sold are placed free on board a carrier with the customer paying the freight from the factory to the destination.

A number of top fashion-modeling agencies would most likely be charged with ________ for jointly determining what commissions they charge for models.

Compare the practices of price fixing and predatory pricing, explaining why each is prohibited by law.

Why is identifying predatory pricing difficult?

Give two examples of products for which captive product pricing might be used.

A(n) ________ refers to promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way.

Which of the following price adjustment strategies involves reducing prices to reward customer responses such as volume purchases, paying early, or promoting the product promptly?

Which of the following involves adjusting prices to account for the physical location of customers?

Which of the following is an adverse effect of using promotional pricing?

Low-interest financing and longer warranties are both examples of ________.

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Consumer Buyer Behavior

Business Markets and Business Buyer Behavior

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

New-Product Development and Product Life Cycle Strategies

Pricing: Understanding and Capturing Customer Value

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct and Online Marketing: Building Direct Customer Relationships

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters

Exam 11: Pricing Strategies: Additional Considerations

Excess capacity leads to companies initiating an increase in price.

Which of the following factors would most likely lead to a company initiating a price cut?

Segmented pricing is only effective when ________.

________ is a pricing strategy in which the company sets up two or more clearly identified geographic regions within which all customers pay the same total price.

List four types of discounts.

Which of the following is true of market-penetration pricing?

Mark's Markers, a manufacturer of white board markers, has required its dealers to charge a specified retail price for its markers. Mark's is most likely guilty of ________.

In product line pricing, the price steps should account for differences in customer perceptions of the value of different features.

Give two examples of products for which marketers might use optional-product pricing.

What is deceptive pricing?

The uniform-delivered pricing strategy means that the goods sold are placed free on board a carrier with the customer paying the freight from the factory to the destination.

A number of top fashion-modeling agencies would most likely be charged with ________ for jointly determining what commissions they charge for models.

Compare the practices of price fixing and predatory pricing, explaining why each is prohibited by law.

Why is identifying predatory pricing difficult?

Give two examples of products for which captive product pricing might be used.

A(n) ________ refers to promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way.

Which of the following price adjustment strategies involves reducing prices to reward customer responses such as volume purchases, paying early, or promoting the product promptly?

Which of the following involves adjusting prices to account for the physical location of customers?

Which of the following is an adverse effect of using promotional pricing?

Low-interest financing and longer warranties are both examples of ________.

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Consumer Buyer Behavior

Business Markets and Business Buyer Behavior

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

New-Product Development and Product Life Cycle Strategies

Pricing: Understanding and Capturing Customer Value

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct and Online Marketing: Building Direct Customer Relationships

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters