Question 1

Reasons sellers go beyond what is required by pricing regulations include all of the following EXCEPT that ________.

Accepted Answer

A)  it is good business to treat customers fairly 
B)  customers that fully understand prices and pricing terms are happy customers 
C)  word-of-mouth from dissatisfied customers spreads rapidly 
D)  building strong and lasting relationships is key to business success 
E)  it improves profitability to earn additional revenue due to customer confusion 
A)  it is good business to treat customers fairly 
B)  customers that fully understand prices and pricing terms are happy customers 
C)  word-of-mouth from dissatisfied customers spreads rapidly 
D)  building strong and lasting relationships is key to business success 
E)  it improves profitability to earn additional revenue due to customer confusion

Question 2

After entering a market by using market-penetration pricing, a company can easily raise its price and maintain its market share.

Accepted Answer

A) True 
 B)False

Question 3

By definition, ________ pricing is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost.

Accepted Answer

A)  segmented 
B)  variable 
C)  flexible 
D)  cost-plus 
E)  reference 
A)  segmented 
B)  variable 
C)  flexible 
D)  cost-plus 
E)  reference

Question 4

Under ________ pricing, different versions of the product are priced differently but not according to differences in their costs.

Accepted Answer

A)  product form 
B)  optional product 
C)  captive product 
D)  by-product 
E)  seasonal 
A)  product form 
B)  optional product 
C)  captive product 
D)  by-product 
E)  seasonal

Question 5

________ 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 6

Why might marketers use market-penetration pricing?

Accepted Answer

Marketers use such pricing whe

Question 7

Which of the following companies uses captive product pricing?

Accepted Answer

A)  Photo Genie, which sells inexpensive cameras that run only on their own expensive batteries 
B)  Go Zone, which launched a range of tablet models, each priced according to its features 
C)  Penguin's Parlor, which offers customers a 20-percent discount on their birthdays 
D)  Sportsprint, which prices sports equipment according to customer evaluations 
E)  Burger Den, whose combo meals are priced lower than its individual components sold together 
A)  Photo Genie, which sells inexpensive cameras that run only on their own expensive batteries 
B)  Go Zone, which launched a range of tablet models, each priced according to its features 
C)  Penguin's Parlor, which offers customers a 20-percent discount on their birthdays 
D)  Sportsprint, which prices sports equipment according to customer evaluations 
E)  Burger Den, whose combo meals are priced lower than its individual components sold together

Question 8

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

Accepted Answer

The price steps should take into account

Question 9

Constantly reduced prices can erode a brand's value in the eyes of customers.

Accepted Answer

A) True 
 B)False

Question 10

When faced with a competitor who has cut its product's price, which of the following is the most cost-effective way for a company to maintain its own price but raise the perceived value of its offer?

Accepted Answer

A)  by improving the quality of the product 
B)  by introducing a higher-priced premium brand 
C)  by altering the company's marketing communications 
D)  by bundling the offer with add-ons 
E)  by distributing the product through less costly channels 
A)  by improving the quality of the product 
B)  by introducing a higher-priced premium brand 
C)  by altering the company's marketing communications 
D)  by bundling the offer with add-ons 
E)  by distributing the product through less costly channels

Question 11

Refer to the scenario below to answer the following question(s).
Champion, Inc. is a manufacturer of lunch boxes, school bags, and school stationery. Charles Payton, the CEO of Champion, hopes to sell the products at a low price to penetrate the market quickly.
-Which of the following best supports a market-penetration strategy for Champion?

Accepted Answer

A)  Production costs increase as sales volume increases. 
B)  It is very difficult for competitors to enter the market. 
C)  The cost of producing a smaller volume is negligible. 
D)  The quality of the products supports high initial prices. 
E)  The market for the products is highly price sensitive. 
A)  Production costs increase as sales volume increases. 
B)  It is very difficult for competitors to enter the market. 
C)  The cost of producing a smaller volume is negligible. 
D)  The quality of the products supports high initial prices. 
E)  The market for the products is highly price sensitive.

Question 12

Sensenig Propeller manufactures replica antique wooden airplane propellers. In the process of production, the company generates a great deal of scrap hardwood. How can using by-product pricing benefit the company?

Accepted Answer

Using by-product pricing, Sensenig can s

Question 13

In response to price cuts from competitors, a cereal company with several more expensive and higher quality cereals introduced a lower-priced option to its product line. This is an example of which of the following responses to a competitor's price cut?

Accepted Answer

A)  raising the perceived value of a product 
B)  improving product quality 
C)  accepting a reduced market share 
D)  launching a "fighter brand" 
E)  using high-low pricing 
A)  raising the perceived value of a product 
B)  improving product quality 
C)  accepting a reduced market share 
D)  launching a "fighter brand" 
E)  using high-low pricing

Question 14

Differentiate between dynamic and fixed pricing.

Accepted Answer

Throughout most of history, prices were

Question 15

Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________ pricing.

Accepted Answer

A)  comparative 
B)  competitive 
C)  market-skimming 
D)  market-segmentation 
E)  cost-plus 
A)  comparative 
B)  competitive 
C)  market-skimming 
D)  market-segmentation 
E)  cost-plus

Question 16

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 17

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products, the manufacturer is able to reduce the main product's price to make it more competitive.

Accepted Answer

A) True 
 B)False

Question 18

What type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency?

Accepted Answer

A)  segmented pricing 
B)  international pricing 
C)  reference pricing 
D)  promotional pricing 
E)  basing-point pricing 
A)  segmented pricing 
B)  international pricing 
C)  reference pricing 
D)  promotional pricing 
E)  basing-point pricing

Question 19

Which of the following is NOT true of public policies and pricing?

Accepted Answer

A)  Companies are free to charge whatever prices they wish. 
B)  Federal, state, and local laws govern the rules of fair play in pricing. 
C)  Deceptive pricing is not permitted. 
D)  Companies must consider broader societal pricing concerns. 
E)  Regulations exist to control predatory pricing. 
A)  Companies are free to charge whatever prices they wish. 
B)  Federal, state, and local laws govern the rules of fair play in pricing. 
C)  Deceptive pricing is not permitted. 
D)  Companies must consider broader societal pricing concerns. 
E)  Regulations exist to control predatory pricing.

Question 20

Why is identifying predatory pricing difficult?

Accepted Answer

Selling below cost to unload excess inve

Reasons sellers go beyond what is required by pricing regulations include all of the following EXCEPT that ________.

After entering a market by using market-penetration pricing, a company can easily raise its price and maintain its market share.

By definition, ________ pricing is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost.

Under ________ pricing, different versions of the product are priced differently but not according to differences in their costs.

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

Why might marketers use market-penetration pricing?

Which of the following companies uses captive product pricing?

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

Constantly reduced prices can erode a brand's value in the eyes of customers.

When faced with a competitor who has cut its product's price, which of the following is the most cost-effective way for a company to maintain its own price but raise the perceived value of its offer?

Sensenig Propeller manufactures replica antique wooden airplane propellers. In the process of production, the company generates a great deal of scrap hardwood. How can using by-product pricing benefit the company?

In response to price cuts from competitors, a cereal company with several more expensive and higher quality cereals introduced a lower-priced option to its product line. This is an example of which of the following responses to a competitor's price cut?

Differentiate between dynamic and fixed pricing.

Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________ pricing.

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

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products, the manufacturer is able to reduce the main product's price to make it more competitive.

What type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency?

Which of the following is NOT true of public policies and pricing?

Why is identifying predatory pricing difficult?

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

Reasons sellers go beyond what is required by pricing regulations include all of the following EXCEPT that ________.

After entering a market by using market-penetration pricing, a company can easily raise its price and maintain its market share.

By definition, ________ pricing is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost.

Under ________ pricing, different versions of the product are priced differently but not according to differences in their costs.

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

Why might marketers use market-penetration pricing?

Which of the following companies uses captive product pricing?

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

Constantly reduced prices can erode a brand's value in the eyes of customers.

When faced with a competitor who has cut its product's price, which of the following is the most cost-effective way for a company to maintain its own price but raise the perceived value of its offer?

Sensenig Propeller manufactures replica antique wooden airplane propellers. In the process of production, the company generates a great deal of scrap hardwood. How can using by-product pricing benefit the company?

In response to price cuts from competitors, a cereal company with several more expensive and higher quality cereals introduced a lower-priced option to its product line. This is an example of which of the following responses to a competitor's price cut?

Differentiate between dynamic and fixed pricing.

Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________ pricing.

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

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products, the manufacturer is able to reduce the main product's price to make it more competitive.

What type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency?

Which of the following is NOT true of public policies and pricing?

Why is identifying predatory pricing difficult?

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