Question 1

Which of the following is used in an attempt to dominate the market through a pricing strategy?

Accepted Answer

A)  price increase 
B)  match competitors' pricing 
C)  price cuts 
D)  quantity discounts 
E)  custom prices 
A)  price increase 
B)  match competitors' pricing 
C)  price cuts 
D)  quantity discounts 
E)  custom prices

Question 2

Companies that set a low price for a new product in order to attract a large number of buyers and a large market share are using the ________ strategy.

Accepted Answer

A)  market-skimming pricing 
B)  market-penetration pricing 
C)  cost-plus pricing 
D)  inclusive pricing 
E)  exclusive pricing 
A)  market-skimming pricing 
B)  market-penetration pricing 
C)  cost-plus pricing 
D)  inclusive pricing 
E)  exclusive pricing

Question 3

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 4

Electrowhip, a company that manufacturers blenders and electric whisks, has decided to use a market penetration pricing strategy. Which of the following, if true, proves their decision to be a wise one?

Accepted Answer

A)  Electrowhip's competitors utilize social media for marketing their products. 
B)  Electrowhip sells products whose image and quality support high prices. 
C)  Electrowhip operates in a market with many competitors. 
D)  Electrowhip does not operate in a price sensitive market. 
E)  Electrowhip's products are intended to appeal to the elite in society. 
A)  Electrowhip's competitors utilize social media for marketing their products. 
B)  Electrowhip sells products whose image and quality support high prices. 
C)  Electrowhip operates in a market with many competitors. 
D)  Electrowhip does not operate in a price sensitive market. 
E)  Electrowhip's products are intended to appeal to the elite in society.

Question 5

Excess capacity leads to companies initiating an increase in price.

Accepted Answer

A) True 
 B)False

Question 6

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 7

Which of the following is true of optional-product pricing?

Accepted Answer

A)  It involves capitalizing on low value by-products. 
B)  It involves pricing products that can be added to the base product. 
C)  It is used to price a company's main product. 
D)  It involves setting geographically specific prices. 
E)  It is used to price products that must be used with the company's main product. 
A)  It involves capitalizing on low value by-products. 
B)  It involves pricing products that can be added to the base product. 
C)  It is used to price a company's main product. 
D)  It involves setting geographically specific prices. 
E)  It is used to price products that must be used with the company's main product.

Question 8

A market-penetration pricing policy should LEAST likely be used for a new product when ________.

Accepted Answer

A)  the market is highly price sensitive 
B)  production and distribution costs fall as sales volume increases 
C)  the product's quality and image support a high price 
D)  a high price helps keep out the competition 
E)  there are few or no competitors in the market 
A)  the market is highly price sensitive 
B)  production and distribution costs fall as sales volume increases 
C)  the product's quality and image support a high price 
D)  a high price helps keep out the competition 
E)  there are few or no competitors in the market

Question 9

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 10

Some industries commonly use two-part pricing, breaking the price down into a fixed fee and a fixed usage rate.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following would be considered predatory pricing?

Accepted Answer

A)  a company that prices its 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 its 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 12

________ is a pricing strategy in which the company sets up two or more clearly identified geographic regions within which all customers pay the same total price.

Accepted Answer

A)  Freight-absorption pricing 
B)  Zone pricing 
C)  Uniform-delivered pricing 
D)  FOB-origin pricing 
E)  Basing-point pricing 
A)  Freight-absorption pricing 
B)  Zone pricing 
C)  Uniform-delivered pricing 
D)  FOB-origin pricing 
E)  Basing-point pricing

Question 13

While comparison pricing claims are legal if they are truthful, the FTC warns sellers not to advertise a) factory or wholesale prices unless such prices are what they claim to be, b) comparable value prices on imperfect goods, or c) ________.

Accepted Answer

A)  a sale unless the products are available in sufficient quantity to meet expected demand 
B)  in a way which confuses potential buyers of the product 
C)  a description of a product unless all versions of the product are offered with the same pricing terms 
D)  a price reduction unless it is a savings from the usual retail price 
E)  if only a limited quantity are available at the reduced price 
A)  a sale unless the products are available in sufficient quantity to meet expected demand 
B)  in a way which confuses potential buyers of the product 
C)  a description of a product unless all versions of the product are offered with the same pricing terms 
D)  a price reduction unless it is a savings from the usual retail price 
E)  if only a limited quantity are available at the reduced price

Question 14

Which of the following companies uses product bundle 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)  Green Thumb, which gives away free watering cans with the purchase of certain potted plants 
E)  Panizza, 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)  Green Thumb, which gives away free watering cans with the purchase of certain potted plants 
E)  Panizza, whose combo meals are priced lower than its individual components sold together

Question 15

Hearth & Home, a store which sells household products, has announced a one-week sale on its new carpet line. This is an example of ________.

Accepted Answer

A)  promotional pricing 
B)  seasonal pricing 
C)  by-product pricing 
D)  product bundle pricing 
E)  time-based pricing 
A)  promotional pricing 
B)  seasonal pricing 
C)  by-product pricing 
D)  product bundle pricing 
E)  time-based pricing

Question 16

Which of the following is true of the bottom of the pyramid?

Accepted Answer

A)  It is a market segment that has been tapped into and depleted. 
B)  It consists of people who have easy access to luxury goods. 
C)  It comprises people who have easy access to the basic amenities of life. 
D)  It is considered a source of fresh growth opportunities. 
E)  It is a market segment that has insignificant purchasing power. 
A)  It is a market segment that has been tapped into and depleted. 
B)  It consists of people who have easy access to luxury goods. 
C)  It comprises people who have easy access to the basic amenities of life. 
D)  It is considered a source of fresh growth opportunities. 
E)  It is a market segment that has insignificant purchasing power.

Question 17

Which of the following likely does NOT play into products being offered for different prices in different countries?

Accepted Answer

A)  additional costs of operations 
B)  product commonality 
C)  physical distribution 
D)  shipping and insurance 
E)  exchange-rate fluctuations 
A)  additional costs of operations 
B)  product commonality 
C)  physical distribution 
D)  shipping and insurance 
E)  exchange-rate fluctuations

Question 18

Give two examples of product bundle pricing.

Accepted Answer

Student answers will vary. Exa

Question 19

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

Accepted Answer

Student answers will vary. Suc

Question 20

Which of the following companies uses product line pricing?

Accepted Answer

A)  Photo Genie, which sells inexpensive cameras that run only on their own expensive batteries 
B)  Mobile Point, which launched a range of cell phone models, each priced according to its features 
C)  Penguin's Parlor, which offers customers a 20-percent discount on their birthdays and certain holidays 
D)  Green Thumb, which gives away free watering cans with the purchase of certain potted plants 
E)  Panizza, whose combo meals are priced lower than the individual components sold together 
A)  Photo Genie, which sells inexpensive cameras that run only on their own expensive batteries 
B)  Mobile Point, which launched a range of cell phone models, each priced according to its features 
C)  Penguin's Parlor, which offers customers a 20-percent discount on their birthdays and certain holidays 
D)  Green Thumb, which gives away free watering cans with the purchase of certain potted plants 
E)  Panizza, whose combo meals are priced lower than the individual components sold together

Which of the following is used in an attempt to dominate the market through a pricing strategy?

Companies that set a low price for a new product in order to attract a large number of buyers and a large market share are using the ________ strategy.

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

Electrowhip, a company that manufacturers blenders and electric whisks, has decided to use a market penetration pricing strategy. Which of the following, if true, proves their decision to be a wise one?

Excess capacity leads to companies initiating an increase in price.

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

Which of the following is true of optional-product pricing?

A market-penetration pricing policy should LEAST likely be used for a new product when ________.

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

Some industries commonly use two-part pricing, breaking the price down into a fixed fee and a fixed usage rate.

Which of the following would be considered predatory pricing?

________ is a pricing strategy in which the company sets up two or more clearly identified geographic regions within which all customers pay the same total price.

While comparison pricing claims are legal if they are truthful, the FTC warns sellers not to advertise a) factory or wholesale prices unless such prices are what they claim to be, b) comparable value prices on imperfect goods, or c) ________.

Which of the following companies uses product bundle pricing?

Hearth & Home, a store which sells household products, has announced a one-week sale on its new carpet line. This is an example of ________.

Which of the following is true of the bottom of the pyramid?

Which of the following likely does NOT play into products being offered for different prices in different countries?

Give two examples of product bundle pricing.

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

Which of the following companies uses product line pricing?

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

Which of the following is used in an attempt to dominate the market through a pricing strategy?

Companies that set a low price for a new product in order to attract a large number of buyers and a large market share are using the ________ strategy.

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

Electrowhip, a company that manufacturers blenders and electric whisks, has decided to use a market penetration pricing strategy. Which of the following, if true, proves their decision to be a wise one?

Excess capacity leads to companies initiating an increase in price.

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

Which of the following is true of optional-product pricing?

A market-penetration pricing policy should LEAST likely be used for a new product when ________.

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

Some industries commonly use two-part pricing, breaking the price down into a fixed fee and a fixed usage rate.

Which of the following would be considered predatory pricing?

________ is a pricing strategy in which the company sets up two or more clearly identified geographic regions within which all customers pay the same total price.

While comparison pricing claims are legal if they are truthful, the FTC warns sellers not to advertise a) factory or wholesale prices unless such prices are what they claim to be, b) comparable value prices on imperfect goods, or c) ________.

Which of the following companies uses product bundle pricing?

Hearth & Home, a store which sells household products, has announced a one-week sale on its new carpet line. This is an example of ________.

Which of the following is true of the bottom of the pyramid?

Which of the following likely does NOT play into products being offered for different prices in different countries?

Give two examples of product bundle pricing.

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

Which of the following companies uses product line pricing?

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