Question 1

In segmented pricing, the difference in prices is based on differences in costs.

Accepted Answer

A) True 
 B)False

Question 2

Ways to avoid accusations of price gouging include ________.

Accepted Answer

A)  bundling products together 
B)  matching competitors' pricing 
C)  communications to customers explaining why prices are being increased 
D)  passing along increased costs 
E)  increase quality of the product 
A)  bundling products together 
B)  matching competitors' pricing 
C)  communications to customers explaining why prices are being increased 
D)  passing along increased costs 
E)  increase quality of the product

Question 3

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 4

Stores can combat the current consumer practice of ________, in which consumers visit stores and then check online for price comparisons.

Accepted Answer

A)  discounting 
B)  conferencing 
C)  using Instagram to share purchases 
D)  showrooming 
E)  auctioning 
A)  discounting 
B)  conferencing 
C)  using Instagram to share purchases 
D)  showrooming 
E)  auctioning

Question 5

Give two examples of by-product pricing.

Accepted Answer

Student answers will vary. Exa

Question 6

Multiprint, a printer manufacturing firm, sells ink cartridges for each of its specific models. Only Multiprint cartridges are compatible with Multiprint printers, and no two models share the same specifications. What type of pricing does Multiprint use?

Accepted Answer

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

Question 7

Which of the following is true of product bundle pricing?

Accepted Answer

A)  It promotes the sale of products that consumers might not otherwise buy. 
B)  It is used to set prices across an entire product range based on customer evaluations. 
C)  It forces customers to buy product parts that are only compatible with the main product. 
D)  It results in companies making fewer-though more profitable-sales. 
E)  It involves pricing the main product low and setting high markups on the supplies. 
A)  It promotes the sale of products that consumers might not otherwise buy. 
B)  It is used to set prices across an entire product range based on customer evaluations. 
C)  It forces customers to buy product parts that are only compatible with the main product. 
D)  It results in companies making fewer-though more profitable-sales. 
E)  It involves pricing the main product low and setting high markups on the supplies.

Question 8

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 9

When theaters vary seat prices due to audience preferences for seats in coveted rows, they use ________ pricing.

Accepted Answer

A)  customer-segment 
B)  location-based 
C)  time-based 
D)  product line 
E)  captive product 
A)  customer-segment 
B)  location-based 
C)  time-based 
D)  product line 
E)  captive product

Question 10

Why is predatory pricing considered illegal?

Accepted Answer

Predatory pricing works agains

Question 11

Sellers cannot influence or use consumers' reference prices when setting their product prices.

Accepted Answer

A) True 
 B)False

Question 12

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.

Question 13

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 14

In what way does the government regulate pricing?

Accepted Answer

The most important pieces of federal leg

Question 15

________ are formed by noting current prices, remembering past prices, or assessing the buying situation.

Accepted Answer

A)  Product line prices 
B)  Seasonal prices 
C)  Reference prices 
D)  Time-based prices 
E)  Product bundle prices 
A)  Product line prices 
B)  Seasonal prices 
C)  Reference prices 
D)  Time-based prices 
E)  Product bundle prices

Question 16

Which of the following is true of public policies and pricing?

Accepted Answer

A)  The government imposes no limits on intrastate pricing issues. 
B)  The Robinson-Patman Act governs interstate commerce. 
C)  Companies have free rein when it comes to setting prices. 
D)  The Sherman Act governs intrastate commerce. 
E)  The Clayton Act encourages the formation of monopolies. 
A)  The government imposes no limits on intrastate pricing issues. 
B)  The Robinson-Patman Act governs interstate commerce. 
C)  Companies have free rein when it comes to setting prices. 
D)  The Sherman Act governs intrastate commerce. 
E)  The Clayton Act encourages the formation of monopolies.

Question 17

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 18

List four types of discounts.

Accepted Answer

Four types of discounts are ca

Question 19

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 20

Freight-absorption pricing is used for ________.

Accepted Answer

A)  penetrating international markets 
B)  generating customer buzz about new products 
C)  holding on to increasingly competitive markets 
D)  generating quick profits to offset input costs 
E)  maintaining quality service records 
A)  penetrating international markets 
B)  generating customer buzz about new products 
C)  holding on to increasingly competitive markets 
D)  generating quick profits to offset input costs 
E)  maintaining quality service records

In segmented pricing, the difference in prices is based on differences in costs.

Ways to avoid accusations of price gouging include ________.

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 ________.

Stores can combat the current consumer practice of ________, in which consumers visit stores and then check online for price comparisons.

Give two examples of by-product pricing.

Multiprint, a printer manufacturing firm, sells ink cartridges for each of its specific models. Only Multiprint cartridges are compatible with Multiprint printers, and no two models share the same specifications. What type of pricing does Multiprint use?

Which of the following is true of product bundle pricing?

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

When theaters vary seat prices due to audience preferences for seats in coveted rows, they use ________ pricing.

Why is predatory pricing considered illegal?

Sellers cannot influence or use consumers' reference prices when setting their product prices.

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

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

In what way does the government regulate pricing?

________ are formed by noting current prices, remembering past prices, or assessing the buying situation.

Which of the following is true of public policies and pricing?

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

List four types of discounts.

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.

Freight-absorption pricing is used for ________.

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Buyer Behavior

Business Markets and Business Buyer Behavior

Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Pricing: Understanding and Capturing Customer Value

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers 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

In segmented pricing, the difference in prices is based on differences in costs.

Ways to avoid accusations of price gouging include ________.

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 ________.

Stores can combat the current consumer practice of ________, in which consumers visit stores and then check online for price comparisons.

Give two examples of by-product pricing.

Multiprint, a printer manufacturing firm, sells ink cartridges for each of its specific models. Only Multiprint cartridges are compatible with Multiprint printers, and no two models share the same specifications. What type of pricing does Multiprint use?

Which of the following is true of product bundle pricing?

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

When theaters vary seat prices due to audience preferences for seats in coveted rows, they use ________ pricing.

Why is predatory pricing considered illegal?

Sellers cannot influence or use consumers' reference prices when setting their product prices.

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

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

In what way does the government regulate pricing?

________ are formed by noting current prices, remembering past prices, or assessing the buying situation.

Which of the following is true of public policies and pricing?

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

List four types of discounts.

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.

Freight-absorption pricing is used for ________.

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Buyer Behavior

Business Markets and Business Buyer Behavior

Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Pricing: Understanding and Capturing Customer Value

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers 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