Question 1

If used infrequently, price promotions create "deal-prone" customers who wait until brands go on sale before buying them.

Accepted Answer

A) True 
 B)False

Question 2

The discount offered by Glamor Gifts to customers who bought Valentine-themed merchandise the week following Valentine's Day is an example of a ________.

Accepted Answer

A)  functional discount 
B)  seasonal discount 
C)  trade discount 
D)  cash discount 
E)  time-based discount 
A)  functional discount 
B)  seasonal discount 
C)  trade discount 
D)  cash discount 
E)  time-based discount

Question 3

Launching a fighter brand is an effective way to deal with a situation in which the market segment being lost is price sensitive and will not respond to arguments of higher quality.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a price adjustment strategy?

Accepted Answer

A)  product bundle pricing 
B)  by-product pricing 
C)  product line pricing 
D)  optional product pricing 
E)  discount and allowance pricing 
A)  product bundle pricing 
B)  by-product pricing 
C)  product line pricing 
D)  optional product pricing 
E)  discount and allowance pricing

Question 5

In return for participating in Honda advertising and sales support programs, Honda dealerships are rewarded with payments or price reductions, which are known as ________.

Accepted Answer

A)  seasonal discounts 
B)  functional allowances 
C)  cash discounts 
D)  promotional allowances 
E)  trade-in allowances 
A)  seasonal discounts 
B)  functional allowances 
C)  cash discounts 
D)  promotional allowances 
E)  trade-in allowances

Question 6

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

Accepted Answer

Student answers will vary. Exa

Question 7

Tone Zone plans to introduce four mp3 player models over the next year. These models range from basic players at $99 per unit, to more sophisticated players at $399 per unit. The more features a model has, the more expensive it is. What pricing strategy is Tone Zone using for its range of mp3 players?

Accepted Answer

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

Question 8

A market-skimming pricing strategy should NOT be used for a new product when ________.

Accepted Answer

A)  the product's quality and image support its higher price 
B)  enough buyers want the products at that price 
C)  competitors are unable to enter the market 
D)  competitors can undercut prices easily 
E)  producing a smaller number of goods is feasible 
A)  the product's quality and image support its higher price 
B)  enough buyers want the products at that price 
C)  competitors are unable to enter the market 
D)  competitors can undercut prices easily 
E)  producing a smaller number of goods is feasible

Question 9

Why is predatory pricing considered illegal?

Accepted Answer

Predatory pricing works agains

Question 10

Which of the following would be considered predatory pricing?

Accepted Answer

A)  a company that prices it products below cost to get rid of a surplus 
B)  a company that prices below cost to drive out competitors 
C)  a company that offers a volume discount 
D)  a company that offers the suggested retail price on the manufacturer's package 
E)  a company that offers real-time pricing online 
A)  a company that prices it products below cost to get rid of a surplus 
B)  a company that prices below cost to drive out competitors 
C)  a company that offers a volume discount 
D)  a company that offers the suggested retail price on the manufacturer's package 
E)  a company that offers real-time pricing online

Question 11

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

Accepted Answer

A)  weakened economy 
B)  possession of outdated merchandise 
C)  excess capacity 
D)  over-demand 
E)  possession of defective merchandise 
A)  weakened economy 
B)  possession of outdated merchandise 
C)  excess capacity 
D)  over-demand 
E)  possession of defective merchandise

Question 12

The New Age Gallery has three admission prices for students, adults, and seniors, even though all three groups are entitled to the same services. This form of pricing is called ________ pricing.

Accepted Answer

A)  psychological 
B)  product form 
C)  customer-segment 
D)  captive product 
E)  by-product 
A)  psychological 
B)  product form 
C)  customer-segment 
D)  captive product 
E)  by-product

Question 13

The "bottom of the pyramid" refers to ________.

Accepted Answer

A)  the world's poorest consumers 
B)  the middle classes of Brazil, Russia, India, and China 
C)  a market with little or no purchasing power 
D)  people with easy access to luxury goods 
E)  the middle class of high-income countries 
A)  the world's poorest consumers 
B)  the middle classes of Brazil, Russia, India, and China 
C)  a market with little or no purchasing power 
D)  people with easy access to luxury goods 
E)  the middle class of high-income countries

Question 14

Why might marketers use market-penetration pricing?

Accepted Answer

Marketers use such pricing whe

Question 15

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

Accepted Answer

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

Question 16

When The Candy Store sets a low initial price in order to get its "foot in the door" and to quickly attract a large number of buyers, the company is using market-skimming pricing.

Accepted Answer

A) True 
 B)False

Question 17

List four types of discounts.

Accepted Answer

Four types of discounts are ca

Question 18

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

Accepted Answer

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

Question 19

Sparkling Valley, a luxury resort, prices cottages facing the lake higher than cottages that do not, even though the cottages and services offered are identical in every other aspect. This form of pricing is called ________ pricing.

Accepted Answer

A)  location-based 
B)  time-based 
C)  by-product 
D)  seasonal 
E)  captive product 
A)  location-based 
B)  time-based 
C)  by-product 
D)  seasonal 
E)  captive product

Question 20

Which form of geographic pricing is a company using when it charges the same rate to ship a product anywhere in the United States?

Accepted Answer

A)  uniform-delivered pricing 
B)  psychological pricing 
C)  zone pricing 
D)  FOB-origin pricing 
E)  basing-point pricing 
A)  uniform-delivered pricing 
B)  psychological pricing 
C)  zone pricing 
D)  FOB-origin pricing 
E)  basing-point pricing

If used infrequently, price promotions create "deal-prone" customers who wait until brands go on sale before buying them.

The discount offered by Glamor Gifts to customers who bought Valentine-themed merchandise the week following Valentine's Day is an example of a ________.

Launching a fighter brand is an effective way to deal with a situation in which the market segment being lost is price sensitive and will not respond to arguments of higher quality.

Which of the following is a price adjustment strategy?

In return for participating in Honda advertising and sales support programs, Honda dealerships are rewarded with payments or price reductions, which are known as ________.

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

A market-skimming pricing strategy should NOT be used for a new product when ________.

Why is predatory pricing considered illegal?

Which of the following would be considered predatory pricing?

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

The New Age Gallery has three admission prices for students, adults, and seniors, even though all three groups are entitled to the same services. This form of pricing is called ________ pricing.

The "bottom of the pyramid" refers to ________.

Why might marketers use market-penetration pricing?

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

When The Candy Store sets a low initial price in order to get its "foot in the door" and to quickly attract a large number of buyers, the company is using market-skimming pricing.

List four types of discounts.

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

Sparkling Valley, a luxury resort, prices cottages facing the lake higher than cottages that do not, even though the cottages and services offered are identical in every other aspect. This form of pricing is called ________ pricing.

Which form of geographic pricing is a company using when it charges the same rate to ship a product anywhere in the United States?

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

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Exam 11: Pricing Strategies: Additional Considerations

If used infrequently, price promotions create "deal-prone" customers who wait until brands go on sale before buying them.

The discount offered by Glamor Gifts to customers who bought Valentine-themed merchandise the week following Valentine's Day is an example of a ________.

Launching a fighter brand is an effective way to deal with a situation in which the market segment being lost is price sensitive and will not respond to arguments of higher quality.

Which of the following is a price adjustment strategy?

In return for participating in Honda advertising and sales support programs, Honda dealerships are rewarded with payments or price reductions, which are known as ________.

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

A market-skimming pricing strategy should NOT be used for a new product when ________.

Why is predatory pricing considered illegal?

Which of the following would be considered predatory pricing?

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

The New Age Gallery has three admission prices for students, adults, and seniors, even though all three groups are entitled to the same services. This form of pricing is called ________ pricing.

The "bottom of the pyramid" refers to ________.

Why might marketers use market-penetration pricing?

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

When The Candy Store sets a low initial price in order to get its "foot in the door" and to quickly attract a large number of buyers, the company is using market-skimming pricing.

List four types of discounts.

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

Sparkling Valley, a luxury resort, prices cottages facing the lake higher than cottages that do not, even though the cottages and services offered are identical in every other aspect. This form of pricing is called ________ pricing.

Which form of geographic pricing is a company using when it charges the same rate to ship a product anywhere in the United States?

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