Question 1

A marketer must be familiar with the five major product mix pricing situations.Which of the following is NOT one of them?

Accepted Answer

A)  product line pricing 
B)  optional product pricing 
C)  captive product pricing 
D)  unbundled product pricing 
E)  by-product pricing 
A)  product line pricing 
B)  optional product pricing 
C)  captive product pricing 
D)  unbundled product pricing 
E)  by-product pricing

Question 2

Why is product line pricing used?

Accepted Answer

Such pricing is used

Question 3

For what types of products might marketers use market-penetration pricing?

Accepted Answer

Marketers use such pricing whe

Question 4

Which of the following is LEAST likely to cause price escalation in foreign markets?

Accepted Answer

A)  the additional costs of product modifications 
B)  the additional costs of shipping and insurance 
C)  the additional costs of import tariffs and taxes 
D)  the additional costs of improving a country's infrastructure 
E)  exchange rate fluctuations 
A)  the additional costs of product modifications 
B)  the additional costs of shipping and insurance 
C)  the additional costs of import tariffs and taxes 
D)  the additional costs of improving a country's infrastructure 
E)  exchange rate fluctuations

Question 5

How does deceptive pricing harm consumers?

Accepted Answer

Deceptive pricing occurs when

Question 6

Give two examples of by-product pricing.

Accepted Answer

Examples could include selling

Question 7

In a form of promotion pricing,customers buy products from manufacturers' dealers within a specified time period,and then the manufacturer sends the customer a check called a ________.

Accepted Answer

A)  cash rebate 
B)  discount 
C)  dealer reduction 
D)  promotional pricing reward 
E)  discount allowance 
A)  cash rebate 
B)  discount 
C)  dealer reduction 
D)  promotional pricing reward 
E)  discount allowance

Question 8

IKEA slashed its prices in China to the lowest in the world.This is an example of a _____________.

Accepted Answer

A)  market-skimming pricing 
B)  market-penetration pricing 
C)  new-product pricing 
D)  discount pricing 
E)  value-added pricing 
A)  market-skimming pricing 
B)  market-penetration pricing 
C)  new-product pricing 
D)  discount pricing 
E)  value-added pricing

Question 9

A firm is using ________ when it charges a high,premium price for a new product with the intention of reducing the price in the future.

Accepted Answer

A)  price skimming 
B)  trial pricing 
C)  value pricing 
D)  market-penetration pricing 
E)  prestige pricing 
A)  price skimming 
B)  trial pricing 
C)  value pricing 
D)  market-penetration pricing 
E)  prestige pricing

Question 10

Promotional pricing can have all of the following adverse effects EXCEPT ________.

Accepted Answer

A)  creating deal-prone customers 
B)  eroding the brand's value in the eyes of customers 
C)  giving pricing secrets away to competitors 
D)  becoming addictive to both the customer and business 
E)  delaying the company's focus on long-term strategies 
A)  creating deal-prone customers 
B)  eroding the brand's value in the eyes of customers 
C)  giving pricing secrets away to competitors 
D)  becoming addictive to both the customer and business 
E)  delaying the company's focus on long-term strategies

Question 11

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 "fighting 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 "fighting brand" 
E)  using high-low pricing

Question 12

_____________ is a core element of a free-market economy.

Accepted Answer

A)  Predatory pricing 
B)  Price competition 
C)  Price fixing 
D)  Skimming pricing 
E)  Penetration pricing 
A)  Predatory pricing 
B)  Price competition 
C)  Price fixing 
D)  Skimming pricing 
E)  Penetration pricing

Question 13

Market-skimming pricing would likely be most effective in selling ________.

Accepted Answer

A)  any convenience item 
B)  an electronic device for which research and development must be recouped 
C)  shampoo and bath soap 
D)  anything easily copied by competitors 
E)  most items at EDLP retailers such as Walmart 
A)  any convenience item 
B)  an electronic device for which research and development must be recouped 
C)  shampoo and bath soap 
D)  anything easily copied by competitors 
E)  most items at EDLP retailers such as Walmart

Question 14

Sun Recycling has a history of problems with customers who do not pay their bills on time.It wants to improve its cash situation,reduce bad debts,and reduce credit-collection costs.The company might consider which of the following forms of pricing?

Accepted Answer

A)  by-product 
B)  inflation-adjusted 
C)  discounts 
D)  captive-product 
E)  penetration 
A)  by-product 
B)  inflation-adjusted 
C)  discounts 
D)  captive-product 
E)  penetration

Question 15

Used too frequently,promotional pricing can have the negative effect of decreasing the brand's value in the eyes of customers and erode brand equity.

Accepted Answer

A) True 
 B)False

Question 16

Using product bundle pricing,sellers combine several products and offer the bundle ________.

Accepted Answer

A)  as a functional unit 
B)  at a reduced price 
C)  as a complete self-service package 
D)  as a reward to loyal customers 
E)  at a premium price 
A)  as a functional unit 
B)  at a reduced price 
C)  as a complete self-service package 
D)  as a reward to loyal customers 
E)  at a premium price

Question 17

Explain product line pricing.

Accepted Answer

With this option,management must decide

Question 18

Service Industries Pte Ltd plans to offer a price-adjustment strategy in the near future.It could consider each of the following EXCEPT ________.

Accepted Answer

A)  discount and allowance pricing 
B)  segmented pricing 
C)  physiological pricing 
D)  promotional pricing 
E)  location pricing 
A)  discount and allowance pricing 
B)  segmented pricing 
C)  physiological pricing 
D)  promotional pricing 
E)  location pricing

Question 19

Of the following,which statement(s)would NOT support a market-skimming policy for a new product?

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 not able to undercut the high price. 
D)  Competitors can enter the market easily. 
E)  C and D 
A)  The product's quality and image support its higher price. 
B)  Enough buyers want the products at that price. 
C)  Competitors are not able to undercut the high price. 
D)  Competitors can enter the market easily. 
E)  C and D

Question 20

Mach 3 razor blades must be used in the Mach 3 razor.Which type of pricing is being used?

Accepted Answer

A)  product line pricing 
B)  optional product pricing 
C)  captive product pricing 
D)  by-product pricing 
E)  product bundle pricing 
A)  product line pricing 
B)  optional product pricing 
C)  captive product pricing 
D)  by-product pricing 
E)  product bundle pricing

A marketer must be familiar with the five major product mix pricing situations.Which of the following is NOT one of them?

Why is product line pricing used?

For what types of products might marketers use market-penetration pricing?

Which of the following is LEAST likely to cause price escalation in foreign markets?

How does deceptive pricing harm consumers?

Give two examples of by-product pricing.

In a form of promotion pricing,customers buy products from manufacturers' dealers within a specified time period,and then the manufacturer sends the customer a check called a ________.

IKEA slashed its prices in China to the lowest in the world.This is an example of a _____________.

A firm is using ________ when it charges a high,premium price for a new product with the intention of reducing the price in the future.

Promotional pricing can have all of the following adverse effects EXCEPT ________.

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?

_____________ is a core element of a free-market economy.

Market-skimming pricing would likely be most effective in selling ________.

Sun Recycling has a history of problems with customers who do not pay their bills on time.It wants to improve its cash situation,reduce bad debts,and reduce credit-collection costs.The company might consider which of the following forms of pricing?

Used too frequently,promotional pricing can have the negative effect of decreasing the brand's value in the eyes of customers and erode brand equity.

Using product bundle pricing,sellers combine several products and offer the bundle ________.

Explain product line pricing.

Service Industries Pte Ltd plans to offer a price-adjustment strategy in the near future.It could consider each of the following EXCEPT ________.

Of the following,which statement(s)would NOT support a market-skimming policy for a new product?

Mach 3 razor blades must be used in the Mach 3 razor.Which type of pricing is being used?

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

A marketer must be familiar with the five major product mix pricing situations.Which of the following is NOT one of them?

Why is product line pricing used?

For what types of products might marketers use market-penetration pricing?

Which of the following is LEAST likely to cause price escalation in foreign markets?

How does deceptive pricing harm consumers?

Give two examples of by-product pricing.

In a form of promotion pricing,customers buy products from manufacturers' dealers within a specified time period,and then the manufacturer sends the customer a check called a ________.

IKEA slashed its prices in China to the lowest in the world.This is an example of a _____________.

A firm is using ________ when it charges a high,premium price for a new product with the intention of reducing the price in the future.

Promotional pricing can have all of the following adverse effects EXCEPT ________.

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?

_____________ is a core element of a free-market economy.

Market-skimming pricing would likely be most effective in selling ________.

Sun Recycling has a history of problems with customers who do not pay their bills on time.It wants to improve its cash situation,reduce bad debts,and reduce credit-collection costs.The company might consider which of the following forms of pricing?

Used too frequently,promotional pricing can have the negative effect of decreasing the brand's value in the eyes of customers and erode brand equity.

Using product bundle pricing,sellers combine several products and offer the bundle ________.

Explain product line pricing.

Service Industries Pte Ltd plans to offer a price-adjustment strategy in the near future.It could consider each of the following EXCEPT ________.

Of the following,which statement(s)would NOT support a market-skimming policy for a new product?

Mach 3 razor blades must be used in the Mach 3 razor.Which type of pricing is being used?

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