Question 1

Which of the following is a geographical pricing strategy?

Accepted Answer

A)  basing-point pricing 
B)  segmented pricing 
C)  dynamic pricing 
D)  Internet pricing 
E)  location-based pricing 
A)  basing-point pricing 
B)  segmented pricing 
C)  dynamic pricing 
D)  Internet pricing 
E)  location-based pricing

Question 2

When a firm varies its price by the season, it is using ________ pricing.

Accepted Answer

A)  product form 
B)  customer-segment 
C)  location-based 
D)  time-based 
E)  value-added 
A)  product form 
B)  customer-segment 
C)  location-based 
D)  time-based 
E)  value-added

Question 3

Which of the following is true of product line pricing?

Accepted Answer

A)  The price steps take cost differences between products in the line into account. 
B)  The pricing strategy cannot be used by companies in developed countries. 
C)  The price steps do not account for the prices of similar products from competitors. 
D)  The pricing strategy involves overpricing products so that they appeal to the elite. 
E)  The customer's perception of the value of different features is considered irrelevant. 
A)  The price steps take cost differences between products in the line into account. 
B)  The pricing strategy cannot be used by companies in developed countries. 
C)  The price steps do not account for the prices of similar products from competitors. 
D)  The pricing strategy involves overpricing products so that they appeal to the elite. 
E)  The customer's perception of the value of different features is considered irrelevant.

Question 4

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 5

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

Accepted Answer

A) True 
 B)False

Question 6

Which of the following price adjustment strategies involves reducing prices to reward customer responses such as volume purchases, paying early, or participating in sales-support programs?

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 7

What should the price steps of product line pricing take into account?

Accepted Answer

The price steps should take into account

Question 8

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 9

Which of the following product mix pricing strategies involves setting prices across an entire product range based on cost differences between the products, customer evaluations of different features, and competitors' prices?

Accepted Answer

A)  by-product pricing 
B)  product bundle pricing 
C)  optional product pricing 
D)  captive product pricing 
E)  product line pricing 
A)  by-product pricing 
B)  product bundle pricing 
C)  optional product pricing 
D)  captive product pricing 
E)  product line pricing

Question 10

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 11

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

Accepted Answer

Student answers will vary. Suc

Question 12

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

Accepted Answer

A)  over-demand 
B)  weakened economy 
C)  poor competition 
D)  cost inflation 
E)  weak price competition 
A)  over-demand 
B)  weakened economy 
C)  poor competition 
D)  cost inflation 
E)  weak price competition

Question 13

Which of the following product mix pricing strategies involves pricing multiple products to be sold together?

Accepted Answer

A)  product line pricing 
B)  product bundle pricing 
C)  optional product pricing 
D)  by-product pricing 
E)  captive product pricing 
A)  product line pricing 
B)  product bundle pricing 
C)  optional product pricing 
D)  by-product pricing 
E)  captive product pricing

Question 14

Which of the following is true of price skimming?

Accepted Answer

A)  It is effective in situations in which competitors are able to undercut prices easily. 
B)  It can be profitably used when the product's quality and image support its price. 
C)  It involves underpricing products so that companies make larger sales. 
D)  It is ineffective in situations in which competitors are unable to enter the market easily. 
E)  It leads to a situation in which the company completes more, though less profitable, sales. 
A)  It is effective in situations in which competitors are able to undercut prices easily. 
B)  It can be profitably used when the product's quality and image support its price. 
C)  It involves underpricing products so that companies make larger sales. 
D)  It is ineffective in situations in which competitors are unable to enter the market easily. 
E)  It leads to a situation in which the company completes more, though less profitable, sales.

Question 15

A(n) ________ is a straight reduction in price on purchases during a stated period of time or of larger quantities.

Accepted Answer

A)  allowance 
B)  free sample 
C)  discount 
D)  tax credit 
E)  quota 
A)  allowance 
B)  free sample 
C)  discount 
D)  tax credit 
E)  quota

Question 16

For segmented pricing to be an effective strategy, prices should reflect real differences in customers' perceived value.

Accepted Answer

A) True 
 B)False

Question 17

Solar Tanning Salon prices tanning sessions at $25 per visit. It also offers seasonal passes for $175 that allow the customer to visit the salon multiple times in a year. This is an example of a(n) ________.

Accepted Answer

A)  sample 
B)  promotional allowance 
C)  product bundle 
D)  discount 
E)  product line 
A)  sample 
B)  promotional allowance 
C)  product bundle 
D)  discount 
E)  product line

Question 18

________ allowances are payments or price reductions that reward dealers for participating in advertising and sales support programs.

Accepted Answer

A)  Promotional 
B)  Trade-in 
C)  Segmented 
D)  Functional 
E)  Dynamic 
A)  Promotional 
B)  Trade-in 
C)  Segmented 
D)  Functional 
E)  Dynamic

Question 19

Explain product line pricing.

Accepted Answer

With product line pricing, management mu

Question 20

Which of the following is true of FOB-origin pricing?

Accepted Answer

A)  It is a strategy in which the company charges the same price plus freight to all customers. 
B)  It is a costly option for customers who are located near the company. 
C)  It charges all customers the freight cost from a base city to the customer location. 
D)  It is an expensive alternative for customers in distant locations. 
E)  It is a strategy in which the seller absorbs all or part of the freight charges. 
A)  It is a strategy in which the company charges the same price plus freight to all customers. 
B)  It is a costly option for customers who are located near the company. 
C)  It charges all customers the freight cost from a base city to the customer location. 
D)  It is an expensive alternative for customers in distant locations. 
E)  It is a strategy in which the seller absorbs all or part of the freight charges.

Which of the following is a geographical pricing strategy?

When a firm varies its price by the season, it is using ________ pricing.

Which of the following is true of product line pricing?

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

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

Which of the following price adjustment strategies involves reducing prices to reward customer responses such as volume purchases, paying early, or participating in sales-support programs?

What should the price steps of product line pricing take into account?

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

Which of the following product mix pricing strategies involves setting prices across an entire product range based on cost differences between the products, customer evaluations of different features, and competitors' prices?

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

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

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

Which of the following product mix pricing strategies involves pricing multiple products to be sold together?

Which of the following is true of price skimming?

A(n) ________ is a straight reduction in price on purchases during a stated period of time or of larger quantities.

For segmented pricing to be an effective strategy, prices should reflect real differences in customers' perceived value.

Solar Tanning Salon prices tanning sessions at $25 per visit. It also offers seasonal passes for $175 that allow the customer to visit the salon multiple times in a year. This is an example of a(n) ________.

________ allowances are payments or price reductions that reward dealers for participating in advertising and sales support programs.

Explain product line pricing.

Which of the following is true of FOB-origin pricing?

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and 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

Engaging Customers and Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters

Exam 11: Pricing Strategies: Additional Considerations

Which of the following is a geographical pricing strategy?

When a firm varies its price by the season, it is using ________ pricing.

Which of the following is true of product line pricing?

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

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

Which of the following price adjustment strategies involves reducing prices to reward customer responses such as volume purchases, paying early, or participating in sales-support programs?

What should the price steps of product line pricing take into account?

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

Which of the following product mix pricing strategies involves setting prices across an entire product range based on cost differences between the products, customer evaluations of different features, and competitors' prices?

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

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

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

Which of the following product mix pricing strategies involves pricing multiple products to be sold together?

Which of the following is true of price skimming?

A(n) ________ is a straight reduction in price on purchases during a stated period of time or of larger quantities.

For segmented pricing to be an effective strategy, prices should reflect real differences in customers' perceived value.

Solar Tanning Salon prices tanning sessions at $25 per visit. It also offers seasonal passes for $175 that allow the customer to visit the salon multiple times in a year. This is an example of a(n) ________.

________ allowances are payments or price reductions that reward dealers for participating in advertising and sales support programs.

Explain product line pricing.

Which of the following is true of FOB-origin pricing?

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and 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

Engaging Customers and Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters