Question 1

Why are there laws to prohibit retail price maintenance?

Accepted Answer

a manufacturer cannot require dealers to charge a specified retail price for its product.The seller can propose a manufacturer's suggested retail price to dealers.Deceptive pricing occurs when a seller states prices or price savings that mislead consumers or are not actually available to them.This might involve bogus reference or comparison prices,as when a retailer sets artificially high "regular" prices then announces "sale" prices close to its previous everyday prices.

Question 2

The frequent use of promotional pricing can encourage customers to only buy when a brand is on sale.

Accepted Answer

A) True 
 B)False  True

Question 3

Price fixing,predatory pricing,retail price maintenance,and deceptive pricing are examples of ________.

Accepted Answer

A)  common pricing policies 
B)  major public policy issues in pricing 
C)  ethical pricing strategies 
D)  pricing policies used mostly in the wholesale sector 
E)  pricing used mostly in the retail sector 
A)  common pricing policies 
B)  major public policy issues in pricing 
C)  ethical pricing strategies 
D)  pricing policies used mostly in the wholesale sector 
E)  pricing used mostly in the retail sector B

Question 4

Among the following,a market-penetration strategy will likely be most effective with ________.

Accepted Answer

A)  pharmaceuticals 
B)  an electronic device for which R&D must be recouped 
C)  convenience items for which there is much competition 
D)  any specialty item 
E)  a product manufactured in small quantities and distributed in limited areas 
A)  pharmaceuticals 
B)  an electronic device for which R&D must be recouped 
C)  convenience items for which there is much competition 
D)  any specialty item 
E)  a product manufactured in small quantities and distributed in limited areas

Question 5

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)  psychological pricing 
C)  referent pricing 
D)  promotional pricing 
E)  basing-point pricing 
A)  segmented pricing 
B)  psychological pricing 
C)  referent pricing 
D)  promotional pricing 
E)  basing-point pricing

Question 6

___________ is illegal.

Accepted Answer

A)  Price-fixing 
B)  Price matching 
C)  Price sensitivity 
D)  Price elasticity 
E)  Price changing 
A)  Price-fixing 
B)  Price matching 
C)  Price sensitivity 
D)  Price elasticity 
E)  Price changing

Question 7

Segmented pricing takes several forms; two of the most common are psychological pricing and reference pricing.

Accepted Answer

A) True 
 B)False

Question 8

When a firm varies its price by the season,month,day,or even hour,it is using ________ pricing.

Accepted Answer

A)  revenue management 
B)  penetration 
C)  variable 
D)  time 
E)  value-added 
A)  revenue management 
B)  penetration 
C)  variable 
D)  time 
E)  value-added

Question 9

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 10

________ pricing is the approach of setting a low initial price in order to attract a large number of buyers quickly and win a large market share.

Accepted Answer

A)  Market-skimming 
B)  Market-penetration 
C)  Below-market 
D)  Value-based 
E)  Leader 
A)  Market-skimming 
B)  Market-penetration 
C)  Below-market 
D)  Value-based 
E)  Leader

Question 11

When a competitor cuts its price,a company is most likely to decide to ________ if it believes it will not lose much market share or would lose too much profit by cutting its own price.

Accepted Answer

A)  stabilize its production costs 
B)  reduce its marketing costs 
C)  hold its current prices and profit margin 
D)  increase its marketing budget to raise the perceived value of the product 
E)  increase its production costs to improve the quality of the product 
A)  stabilize its production costs 
B)  reduce its marketing costs 
C)  hold its current prices and profit margin 
D)  increase its marketing budget to raise the perceived value of the product 
E)  increase its production costs to improve the quality of the product

Question 12

If a company charges the same price for delivery of its product to any customer that is located within Southeast Asia,but a different price to customers outside of Southeast Asia,the company is using ________.

Accepted Answer

A)  psychological pricing 
B)  promotional pricing 
C)  reference pricing 
D)  zone pricing 
E)  uniform-delivered pricing 
A)  psychological pricing 
B)  promotional pricing 
C)  reference pricing 
D)  zone pricing 
E)  uniform-delivered pricing

Question 13

When supermarket raised its store prices 40 percent and then ran a 20 percent off sale,it was guilty of deceptive pricing.

Accepted Answer

A) True 
 B)False

Question 14

Most companies that conduct international business ________ to ________.

Accepted Answer

A)  adjust their prices; take local market conditions into consideration 
B)  use promotional pricing; create excitement in new markets 
C)  use geographical pricing; reduce delivery costs 
D)  set a uniform price; maintain a consistent product image 
E)  initiate price cuts; compensate for import tariffs and taxes 
A)  adjust their prices; take local market conditions into consideration 
B)  use promotional pricing; create excitement in new markets 
C)  use geographical pricing; reduce delivery costs 
D)  set a uniform price; maintain a consistent product image 
E)  initiate price cuts; compensate for import tariffs and taxes

Question 15

Market-skimming is a more popular strategy for pricing new products,and market-penetration is a more popular strategy for pricing products that are more advanced in the product life cycle.

Accepted Answer

A) True 
 B)False

Question 16

Brown Baby Tanning Salon offers weekly tanning sessions for $15 and 6 month passes with unlimited tanning for $150.Brown Baby Tanning Salon is offering ________ pricing.

Accepted Answer

A)  by-product 
B)  captive product 
C)  product bundling 
D)  discount 
E)  psychographic 
A)  by-product 
B)  captive product 
C)  product bundling 
D)  discount 
E)  psychographic

Question 17

Why do businesses use cash discounts when they are in essence losing some money on the sale?

Accepted Answer

Such discounts are customary in many ind

Question 18

Trade-in allowances are most commonly used in the ________ industry.

Accepted Answer

A)  real estate 
B)  automobile 
C)  packaged goods 
D)  financial services 
E)  health care 
A)  real estate 
B)  automobile 
C)  packaged goods 
D)  financial services 
E)  health care

Question 19

A company would most likely consider launching a low-price "fighting brand" in response to a competitor reducing prices if ________.

Accepted Answer

A)  the market segment being lost is price sensitive 
B)  the market segment being lost is not price sensitive 
C)  the market segment being lost responds to arguments of higher quality 
D)  the market segment being lost no longer demands the product 
E)  the market segment being lost has shifted culturally 
A)  the market segment being lost is price sensitive 
B)  the market segment being lost is not price sensitive 
C)  the market segment being lost responds to arguments of higher quality 
D)  the market segment being lost no longer demands the product 
E)  the market segment being lost has shifted culturally

Question 20

Golden Ville Cinemas has announced that seniors over 60 years of age can enter the theater for free prior to 4:00 p.m.when accompanied by a paying customer.This is an example of ________.

Accepted Answer

A)  promotional pricing 
B)  discounts and allowances 
C)  by-product pricing 
D)  product bundle pricing 
E)  location-based pricing 
A)  promotional pricing 
B)  discounts and allowances 
C)  by-product pricing 
D)  product bundle pricing 
E)  location-based pricing

Why are there laws to prohibit retail price maintenance?

The frequent use of promotional pricing can encourage customers to only buy when a brand is on sale.

Price fixing,predatory pricing,retail price maintenance,and deceptive pricing are examples of ________.

Among the following,a market-penetration strategy will likely be most effective with ________.

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?

___________ is illegal.

Segmented pricing takes several forms; two of the most common are psychological pricing and reference pricing.

When a firm varies its price by the season,month,day,or even hour,it is using ________ pricing.

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

________ pricing is the approach of setting a low initial price in order to attract a large number of buyers quickly and win a large market share.

When a competitor cuts its price,a company is most likely to decide to ________ if it believes it will not lose much market share or would lose too much profit by cutting its own price.

If a company charges the same price for delivery of its product to any customer that is located within Southeast Asia,but a different price to customers outside of Southeast Asia,the company is using ________.

When supermarket raised its store prices 40 percent and then ran a 20 percent off sale,it was guilty of deceptive pricing.

Most companies that conduct international business to .

Market-skimming is a more popular strategy for pricing new products,and market-penetration is a more popular strategy for pricing products that are more advanced in the product life cycle.

Brown Baby Tanning Salon offers weekly tanning sessions for $15 and 6 month passes with unlimited tanning for $150.Brown Baby Tanning Salon is offering ________ pricing.

Why do businesses use cash discounts when they are in essence losing some money on the sale?

Trade-in allowances are most commonly used in the ________ industry.

A company would most likely consider launching a low-price "fighting brand" in response to a competitor reducing prices if ________.

Golden Ville Cinemas has announced that seniors over 60 years of age can enter the theater for free prior to 4:00 p.m.when accompanied by a paying customer.This is an example of ________.

Marketing: Managing Profitable Customer Relationships

Company and Marketing Strategy: Partnering to Build

The Marketing Environment

Managing Marketing Information

Consumer Markets and Consumer 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 Products: Understanding and Capturing Customer Value

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value: Integrated Marketing

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct and Online Marketing: Building Direct Customer Relationships

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters

Exam 11: Pricing Products: Pricing Strategies

Why are there laws to prohibit retail price maintenance?

The frequent use of promotional pricing can encourage customers to only buy when a brand is on sale.

Price fixing,predatory pricing,retail price maintenance,and deceptive pricing are examples of ________.

Among the following,a market-penetration strategy will likely be most effective with ________.

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?

___________ is illegal.

Segmented pricing takes several forms; two of the most common are psychological pricing and reference pricing.

When a firm varies its price by the season,month,day,or even hour,it is using ________ pricing.

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

________ pricing is the approach of setting a low initial price in order to attract a large number of buyers quickly and win a large market share.

When a competitor cuts its price,a company is most likely to decide to ________ if it believes it will not lose much market share or would lose too much profit by cutting its own price.

If a company charges the same price for delivery of its product to any customer that is located within Southeast Asia,but a different price to customers outside of Southeast Asia,the company is using ________.

When supermarket raised its store prices 40 percent and then ran a 20 percent off sale,it was guilty of deceptive pricing.

Most companies that conduct international business ________ to ________.

Market-skimming is a more popular strategy for pricing new products,and market-penetration is a more popular strategy for pricing products that are more advanced in the product life cycle.

Brown Baby Tanning Salon offers weekly tanning sessions for $15 and 6 month passes with unlimited tanning for $150.Brown Baby Tanning Salon is offering ________ pricing.

Why do businesses use cash discounts when they are in essence losing some money on the sale?

Trade-in allowances are most commonly used in the ________ industry.

A company would most likely consider launching a low-price "fighting brand" in response to a competitor reducing prices if ________.

Golden Ville Cinemas has announced that seniors over 60 years of age can enter the theater for free prior to 4:00 p.m.when accompanied by a paying customer.This is an example of ________.

Marketing: Managing Profitable Customer Relationships

Company and Marketing Strategy: Partnering to Build

The Marketing Environment

Managing Marketing Information

Consumer Markets and Consumer 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 Products: Understanding and Capturing Customer Value

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value: Integrated Marketing

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct and Online Marketing: Building Direct Customer Relationships

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters

Most companies that conduct international business to .