Question 1

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 market has a pure monopoly 
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 market has a pure monopoly

Question 2

Some companies set up multiple basing points to create more flexibility: they quote freight charges from the basing-point city nearest to the customer.

Accepted Answer

A) True 
 B)False

Question 3

A manufacturer offers 3/10,net 30 terms to a wholesaler for a recent purchase.The wholesaler may deduct ________ percent if the bill is paid within ________ days.

Accepted Answer

A)  10; 30 
B)  10; 3 
C)  3; 30 
D)  3; 10 
E)  7; 10 
A)  10; 30 
B)  10; 3 
C)  3; 30 
D)  3; 10 
E)  7; 10

Question 4

Refer to the scenario below to answer the following questions.
Pilot is a manufacturer of ballpoint pens, pencils, and stationery. The firm's primary distribution strategy is to sell in large volumes to office supply stores and large discount chains. Iwao Takada, CEO of Pilot, had hoped to manufacture and sell in large enough quantities that prices could be held low. However, in the first several months, the firm experimented with the price portion of its marketing mix in an effort to cater to a number of markets.
-By offering a set of pens packaged with stationery and matching envelopes,Pilot would be using ______________.

Accepted Answer

A)  optional product pricing 
B)  product bundle pricing 
C)  by-product pricing 
D)  dynamic pricing 
E)  price fixing 
A)  optional product pricing 
B)  product bundle pricing 
C)  by-product pricing 
D)  dynamic pricing 
E)  price fixing

Question 5

Manufacturers may offer functional discounts within trade channels for channel members who store inventory.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following would most likely be considered predatory pricing?

Accepted Answer

A)  pricing below cost to get rid of a surplus 
B)  pricing below cost to drive out competitors 
C)  offering a volume discount 
D)  offering a suggested retail price on the manufacturer's package 
E)  offering real-time pricing online 
A)  pricing below cost to get rid of a surplus 
B)  pricing below cost to drive out competitors 
C)  offering a volume discount 
D)  offering a suggested retail price on the manufacturer's package 
E)  offering real-time pricing online

Question 7

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

Accepted Answer

A)  basing-point pricing 
B)  freight-absorption pricing 
C)  uniform-delivered pricing 
D)  zone pricing 
A)  basing-point pricing 
B)  freight-absorption pricing 
C)  uniform-delivered pricing 
D)  zone pricing

Question 8

When Calms Gift Shop offers a price reduction to customers who buy Christmas cards the week after Christmas,Calms is giving a(n)________ discount.

Accepted Answer

A)  functional 
B)  seasonal 
C)  annual 
D)  allowance 
E)  credit 
A)  functional 
B)  seasonal 
C)  annual 
D)  allowance 
E)  credit

Question 9

A company considering a price change should be more concerned about consumers' reactions than competitors' reactions.

Accepted Answer

A) True 
 B)False

Question 10

How can a manufacturer avoid using retail price maintenance but still exert some influence over the price retailers charge for its product?

Accepted Answer

The manufacturer can

Question 11

Which of the following is an example of a cash discount?

Accepted Answer

A)  2/10, net 30 
B)  $5.00 with a two-pack 
C)  a free case when you buy 12 
D)  when you pay cash and take the product with you 
E)  none of the above 
A)  2/10, net 30 
B)  $5.00 with a two-pack 
C)  a free case when you buy 12 
D)  when you pay cash and take the product with you 
E)  none of the above

Question 12

When amusement parks and movie theaters charge admission plus fees for food and other attractions,they are following a(n)________ pricing strategy.

Accepted Answer

A)  by-product 
B)  optional-product 
C)  two-part 
D)  skimming 
E)  penetration 
A)  by-product 
B)  optional-product 
C)  two-part 
D)  skimming 
E)  penetration

Question 13

Which of the following is NOT an effective action that a company can take to combat a competitor's price cut on a product?

Accepted Answer

A)  reduce price 
B)  raise perceived value 
C)  improve quality and increase price 
D)  improve quality and decrease price 
E)  launch a low-price "fighter brand" 
A)  reduce price 
B)  raise perceived value 
C)  improve quality and increase price 
D)  improve quality and decrease price 
E)  launch a low-price "fighter brand"

Question 14

Boeing sells its jetliners at about the same price everywhere.This is an example of ________.

Accepted Answer

A)  predatory pricing 
B)  price competition 
C)  price fixing 
D)  skimming pricing 
E)  international pricing 
A)  predatory pricing 
B)  price competition 
C)  price fixing 
D)  skimming pricing 
E)  international pricing

Question 15

A company that raises its prices is most at risk of being accused of which of the following?

Accepted Answer

A)  high-low pricing 
B)  price gouging 
C)  predatory pricing 
D)  price discrimination 
E)  retail price maintenance 
A)  high-low pricing 
B)  price gouging 
C)  predatory pricing 
D)  price discrimination 
E)  retail price maintenance

Question 16

When a house moving service company sells boxes and pads that must be used in moving a household's furniture,the company is practicing by-product pricing.

Accepted Answer

A) True 
 B)False

Question 17

Valeo Fashions has just introduced a new line of fashion dresses for teens.It will initially enter the market at high prices in a ________ pricing strategy.

Accepted Answer

A)  market-penetration 
B)  market-skimming 
C)  competitive market 
D)  psychological 
E)  demographic 
A)  market-penetration 
B)  market-skimming 
C)  competitive market 
D)  psychological 
E)  demographic

Question 18

Which of the following is a major factor that influences price increases?

Accepted Answer

A)  cost inflation 
B)  surplus of raw materials 
C)  government intervention 
D)  foreign competition 
E)  excess capacity 
A)  cost inflation 
B)  surplus of raw materials 
C)  government intervention 
D)  foreign competition 
E)  excess capacity

Question 19

A challenge for management in product line pricing is to decide on the price steps between the ________.

Accepted Answer

A)  various products in a line 
B)  product mixes 
C)  product groupings 
D)  product lines 
E)  channel partners 
A)  various products in a line 
B)  product mixes 
C)  product groupings 
D)  product lines 
E)  channel partners

Question 20

Which of the following refers to the prices that a buyer carries in his or her mind and refers to when looking at a given product?

Accepted Answer

A)  target prices 
B)  reference prices 
C)  promotional prices 
D)  geographical prices 
E)  dynamic prices 
A)  target prices 
B)  reference prices 
C)  promotional prices 
D)  geographical prices 
E)  dynamic prices

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

Some companies set up multiple basing points to create more flexibility: they quote freight charges from the basing-point city nearest to the customer.

A manufacturer offers 3/10,net 30 terms to a wholesaler for a recent purchase.The wholesaler may deduct percent if the bill is paid within days.

Manufacturers may offer functional discounts within trade channels for channel members who store inventory.

Which of the following would most likely be considered predatory pricing?

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

When Calms Gift Shop offers a price reduction to customers who buy Christmas cards the week after Christmas,Calms is giving a(n)________ discount.

A company considering a price change should be more concerned about consumers' reactions than competitors' reactions.

How can a manufacturer avoid using retail price maintenance but still exert some influence over the price retailers charge for its product?

Which of the following is an example of a cash discount?

When amusement parks and movie theaters charge admission plus fees for food and other attractions,they are following a(n)________ pricing strategy.

Which of the following is NOT an effective action that a company can take to combat a competitor's price cut on a product?

Boeing sells its jetliners at about the same price everywhere.This is an example of ________.

A company that raises its prices is most at risk of being accused of which of the following?

When a house moving service company sells boxes and pads that must be used in moving a household's furniture,the company is practicing by-product pricing.

Valeo Fashions has just introduced a new line of fashion dresses for teens.It will initially enter the market at high prices in a ________ pricing strategy.

Which of the following is a major factor that influences price increases?

A challenge for management in product line pricing is to decide on the price steps between the ________.

Which of the following refers to the prices that a buyer carries in his or her mind and refers to when looking at a given product?

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

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

Some companies set up multiple basing points to create more flexibility: they quote freight charges from the basing-point city nearest to the customer.

A manufacturer offers 3/10,net 30 terms to a wholesaler for a recent purchase.The wholesaler may deduct ________ percent if the bill is paid within ________ days.

Manufacturers may offer functional discounts within trade channels for channel members who store inventory.

Which of the following would most likely be considered predatory pricing?

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

When Calms Gift Shop offers a price reduction to customers who buy Christmas cards the week after Christmas,Calms is giving a(n)________ discount.

A company considering a price change should be more concerned about consumers' reactions than competitors' reactions.

How can a manufacturer avoid using retail price maintenance but still exert some influence over the price retailers charge for its product?

Which of the following is an example of a cash discount?

When amusement parks and movie theaters charge admission plus fees for food and other attractions,they are following a(n)________ pricing strategy.

Which of the following is NOT an effective action that a company can take to combat a competitor's price cut on a product?

Boeing sells its jetliners at about the same price everywhere.This is an example of ________.

A company that raises its prices is most at risk of being accused of which of the following?

When a house moving service company sells boxes and pads that must be used in moving a household's furniture,the company is practicing by-product pricing.

Valeo Fashions has just introduced a new line of fashion dresses for teens.It will initially enter the market at high prices in a ________ pricing strategy.

Which of the following is a major factor that influences price increases?

A challenge for management in product line pricing is to decide on the price steps between the ________.

Which of the following refers to the prices that a buyer carries in his or her mind and refers to when looking at a given product?

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

A manufacturer offers 3/10,net 30 terms to a wholesaler for a recent purchase.The wholesaler may deduct percent if the bill is paid within days.