Question 1

Price discrimination may be used to match competition as long as the strategy is temporary, localized, and ________.

Accepted Answer

A)  defensive 
B)  offensive 
C)  publicized 
D)  private 
E)  uniform across channels 
A)  defensive 
B)  offensive 
C)  publicized 
D)  private 
E)  uniform across channels

Question 2

Whizz Corp. wishes to introduce a new hybrid car into mature markets in developed countries with the goal of gaining mass-market share quickly. Which of the following pricing strategies would help the firm meet its goal?

Accepted Answer

A)  market-skimming pricing 
B)  market-penetration pricing 
C)  market-segmentation pricing 
D)  cost-plus pricing 
E)  captive-product pricing 
A)  market-skimming pricing 
B)  market-penetration pricing 
C)  market-segmentation pricing 
D)  cost-plus pricing 
E)  captive-product pricing

Question 3

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 4

Online flash sales are used to create buying urgency and make buyers feel lucky to have gotten in on the deal.

Accepted Answer

A) True 
 B)False

Question 5

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

Question 6

Casual Comfort sells its catalog items using FOB-origin pricing. Who pays the freight charges?

Accepted Answer

The custom

Question 7

In the case of services, captive product pricing is called ________ pricing.

Accepted Answer

A)  by-product 
B)  optional product 
C)  two-part 
D)  bundle 
E)  segmented 
A)  by-product 
B)  optional product 
C)  two-part 
D)  bundle 
E)  segmented

Question 8

Go Zone plans to introduce four tablet models over the next year. These models range from basic readers at $99 per unit, to more sophisticated tablets 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 tablets?

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 9

For a market penetration-price strategy to succeed, which of the following is LEAST likely to be true?

Accepted Answer

A)  Production costs decrease as sales volume increases. 
B)  A low price triggers market growth. 
C)  Distribution costs decrease as sales volume increases. 
D)  Low prices must inhibit competition from entering the market. 
E)  The strategy can be changed quickly, to a higher-priced position, with no negative impact. 
A)  Production costs decrease as sales volume increases. 
B)  A low price triggers market growth. 
C)  Distribution costs decrease as sales volume increases. 
D)  Low prices must inhibit competition from entering the market. 
E)  The strategy can be changed quickly, to a higher-priced position, with no negative impact.

Question 10

When are competitors most likely to react to price changes? How can a firm anticipate the likely reactions of its competitors?

Accepted Answer

Competitors are most likely to react whe

Question 11

Competitors are most likely to react to a price change when ________.

Accepted Answer

A)  a large number of competitors are involved 
B)  the product is uniform 
C)  the buyers are not well informed about product features 
D)  buyers are not well informed about price differences 
E)  the products are not uniform 
A)  a large number of competitors are involved 
B)  the product is uniform 
C)  the buyers are not well informed about product features 
D)  buyers are not well informed about price differences 
E)  the products are not uniform

Question 12

A lumber mill takes in logs, turns them into 2 x 4's and other sizes needed for building construction. Wood chips created in the milling process are a(n) ________ that can be sold.

Accepted Answer

A)  bundled product 
B)  captive product 
C)  by-product 
D)  optional product 
E)  primary product 
A)  bundled product 
B)  captive product 
C)  by-product 
D)  optional product 
E)  primary product

Question 13

Reasons for a price increase include all of the following EXCEPT ________.

Accepted Answer

A)  a desire to improve profits 
B)  cost inflation 
C)  when the alternative is rationing of the product 
D)  decreasing gross margins 
E)  increasing supply of product 
A)  a desire to improve profits 
B)  cost inflation 
C)  when the alternative is rationing of the product 
D)  decreasing gross margins 
E)  increasing supply of product

Question 14

Discuss the conditions under which a company might consider using price cuts or price increases.

Accepted Answer

Price cuts may be necessary when there i

Question 15

The Internet offers ________, where the price can easily be adjusted to meet changes in demand.

Accepted Answer

A)  captive pricing 
B)  dynamic pricing 
C)  basing-point pricing 
D)  price bundling 
E)  cost-plus pricing 
A)  captive pricing 
B)  dynamic pricing 
C)  basing-point pricing 
D)  price bundling 
E)  cost-plus pricing

Question 16

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 17

For market skimming to be successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more.

Accepted Answer

A) True 
 B)False

Question 18

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 19

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 20

Explain the psychology behind a price of $9.99 instead of $10.00.

Accepted Answer

Consumers typically see a prod

Price discrimination may be used to match competition as long as the strategy is temporary, localized, and ________.

Whizz Corp. wishes to introduce a new hybrid car into mature markets in developed countries with the goal of gaining mass-market share quickly. Which of the following pricing strategies would help the firm meet its goal?

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

Online flash sales are used to create buying urgency and make buyers feel lucky to have gotten in on the deal.

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

Casual Comfort sells its catalog items using FOB-origin pricing. Who pays the freight charges?

In the case of services, captive product pricing is called ________ pricing.

Go Zone plans to introduce four tablet models over the next year. These models range from basic readers at $99 per unit, to more sophisticated tablets 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 tablets?

For a market penetration-price strategy to succeed, which of the following is LEAST likely to be true?

When are competitors most likely to react to price changes? How can a firm anticipate the likely reactions of its competitors?

Competitors are most likely to react to a price change when ________.

A lumber mill takes in logs, turns them into 2 x 4's and other sizes needed for building construction. Wood chips created in the milling process are a(n) ________ that can be sold.

Reasons for a price increase include all of the following EXCEPT ________.

Discuss the conditions under which a company might consider using price cuts or price increases.

The Internet offers ________, where the price can easily be adjusted to meet changes in demand.

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

For market skimming to be successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more.

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?

Segmented pricing is only effective when ________.

Explain the psychology behind a price of $9.99 instead of $10.00.

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

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Exam 11: Pricing Strategies: Additional Considerations

Price discrimination may be used to match competition as long as the strategy is temporary, localized, and ________.

Whizz Corp. wishes to introduce a new hybrid car into mature markets in developed countries with the goal of gaining mass-market share quickly. Which of the following pricing strategies would help the firm meet its goal?

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

Online flash sales are used to create buying urgency and make buyers feel lucky to have gotten in on the deal.

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

Casual Comfort sells its catalog items using FOB-origin pricing. Who pays the freight charges?

In the case of services, captive product pricing is called ________ pricing.

Go Zone plans to introduce four tablet models over the next year. These models range from basic readers at $99 per unit, to more sophisticated tablets 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 tablets?

For a market penetration-price strategy to succeed, which of the following is LEAST likely to be true?

When are competitors most likely to react to price changes? How can a firm anticipate the likely reactions of its competitors?

Competitors are most likely to react to a price change when ________.

A lumber mill takes in logs, turns them into 2 x 4's and other sizes needed for building construction. Wood chips created in the milling process are a(n) ________ that can be sold.

Reasons for a price increase include all of the following EXCEPT ________.

Discuss the conditions under which a company might consider using price cuts or price increases.

The Internet offers ________, where the price can easily be adjusted to meet changes in demand.

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

For market skimming to be successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more.

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?

Segmented pricing is only effective when ________.

Explain the psychology behind a price of $9.99 instead of $10.00.

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