Question 1

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

Accepted Answer

Marketers use such pricing when attempting to attract a large number of buyers quickly and win a large market share;such pricing may be common when competition for products is high.

Question 2

Price discrimination may be used to match competition as long as the strategy is temporary,localized,and .

Accepted Answer

A) defensive 
B) offensive 
C) private 
D) published 
E) used in all channels 
A) defensive 
B) offensive 
C) private 
D) published 
E) used in all channels A

Question 3

Describe the differences between dynamic and fixed pricing.

Accepted Answer

Throughout most of history,prices were set by negotiation between buyers and sellers.The fixed price policy-setting one price for all buyers-is a relatively modern idea that arose with the development of large- scale retailing at the end of the nineteenth century.Today most prices are set this way.However,some companies are now reversing the fixed pricing trend.They are using dynamic pricing,adjusting prices continually to meet the characteristics and needs of individual customers and situations.Dynamic pricing makes sense in many contexts.It adjusts prices according to market forces,and it often works to the benefit of the customer.

Question 4

All of the following are typical ways a buyer might form a reference price EXCEPT .

Accepted Answer

A) being influenced by sellers 
B) identifying perceived value 
C) remembering past prices 
D) noting current prices 
E) assessing the buying situation 
A) being influenced by sellers 
B) identifying perceived value 
C) remembering past prices 
D) noting current prices 
E) assessing the buying situation

Question 5

Consumers usually perceive higher- priced products as .

Accepted Answer

A) having a higher quality 
B) being in the introductory stage of the product life cycle 
C) popular brands 
D) having low profit margins 
E) being in the maturity stage of the product life cycle 
A) having a higher quality 
B) being in the introductory stage of the product life cycle 
C) popular brands 
D) having low profit margins 
E) being in the maturity stage of the product life cycle

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

There are many reasons why a firm might consider cutting its price.All of the following are among them EXCEPT .

Accepted Answer

A) a drive to gain market share and cut costs through volume 
B) a drive to dominate the market through lower costs 
C) a drive to reduce market share 
D) excess capacity 
E) falling demand in the face of strong price competition 
A) a drive to gain market share and cut costs through volume 
B) a drive to dominate the market through lower costs 
C) a drive to reduce market share 
D) excess capacity 
E) falling demand in the face of strong price competition

Question 9

When Murphy's Candies sets a low initial price in order to get its "foot in the door" and quickly attract a large number of buyers,the company is practicing market- skimming pricing.

Accepted Answer

A) True 
 B)False

Question 10

Pricing strategies tend to change and evolve as the average product passes through its life cycle.

Accepted Answer

A) True 
 B)False

Question 11

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

Question 12

Federal legislation on price fixing requires that sellers set their prices .

Accepted Answer

A) based on their fixed and variable costs 
B) to achieve a specific profit margin 
C) without the intention of cutting into competitors' profits 
D) without communication from competitors 
E) consistently throughout a region 
A) based on their fixed and variable costs 
B) to achieve a specific profit margin 
C) without the intention of cutting into competitors' profits 
D) without communication from competitors 
E) consistently throughout a region

Question 13

How do consumers benefit from product bundle pricing?

Accepted Answer

Several products are sold toge

Question 14

When General Motors provides payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs,it is granting a .

Accepted Answer

A) trade discount 
B) functional discount 
C) promotional allowance 
D) trade credit 
E) cash discount 
A) trade discount 
B) functional discount 
C) promotional allowance 
D) trade credit 
E) cash discount

Question 15

A car maker's strategy of advertising a basic vehicle model with few conveniences and comforts at a low price to entice buyers and then convincing customers to buy higher- priced models with more amenities is an example of which of the following?

Accepted Answer

A) captive product pricing 
B) allowance pricing 
C) optional product pricing 
D) product line pricing 
E) segmented pricing 
A) captive product pricing 
B) allowance pricing 
C) optional product pricing 
D) product line pricing 
E) segmented pricing

Question 16

When Polaroid set the general price range of its cameras low and the markup on its film high,it was practicing .

Accepted Answer

A) captive product pricing 
B) product line pricing 
C) market- skimming pricing 
D) market- penetration pricing 
E) price bundling 
A) captive product pricing 
B) product line pricing 
C) market- skimming pricing 
D) market- penetration pricing 
E) price bundling

Question 17

Casual Kids sells its catalog items FOB- origin pricing.Who pays the freight charges?

Accepted Answer

The custom

Question 18

Using _ _,companies are able to turn their trash into cash,allowing them to make the price of their main product more competitive.

Accepted Answer

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

Question 19

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

Accepted Answer

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

Question 20

Which of the following is NOT a geographical pricing strategy?

Accepted Answer

A) basing- point pricing 
B) uniform- delivered pricing 
C) zone pricing 
D) FOB- origin pricing 
E) dynamic pricing 
A) basing- point pricing 
B) uniform- delivered pricing 
C) zone pricing 
D) FOB- origin pricing 
E) dynamic pricing

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

Price discrimination may be used to match competition as long as the strategy is temporary,localized,and .

Describe the differences between dynamic and fixed pricing.

All of the following are typical ways a buyer might form a reference price EXCEPT .

Consumers usually perceive higher- priced products as .

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

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?

There are many reasons why a firm might consider cutting its price.All of the following are among them EXCEPT .

When Murphy's Candies sets a low initial price in order to get its "foot in the door" and quickly attract a large number of buyers,the company is practicing market- skimming pricing.

Pricing strategies tend to change and evolve as the average product passes through its life cycle.

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?

Federal legislation on price fixing requires that sellers set their prices .

How do consumers benefit from product bundle pricing?

When General Motors provides payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs,it is granting a .

A car maker's strategy of advertising a basic vehicle model with few conveniences and comforts at a low price to entice buyers and then convincing customers to buy higher- priced models with more amenities is an example of which of the following?

When Polaroid set the general price range of its cameras low and the markup on its film high,it was practicing .

Casual Kids sells its catalog items FOB- origin pricing.Who pays the freight charges?

Using _ _,companies are able to turn their trash into cash,allowing them to make the price of their main product more competitive.

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

Which of the following is NOT a geographical pricing strategy?

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

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

Developing New Products and Managing the Product Life Cycle

Pricing Strategies: Understanding and Capturing Customer Value

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value

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: Additional Pricing Considerations

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

Price discrimination may be used to match competition as long as the strategy is temporary,localized,and .

Describe the differences between dynamic and fixed pricing.

All of the following are typical ways a buyer might form a reference price EXCEPT .

Consumers usually perceive higher- priced products as .

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

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?

There are many reasons why a firm might consider cutting its price.All of the following are among them EXCEPT .

When Murphy's Candies sets a low initial price in order to get its "foot in the door" and quickly attract a large number of buyers,the company is practicing market- skimming pricing.

Pricing strategies tend to change and evolve as the average product passes through its life cycle.

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?

Federal legislation on price fixing requires that sellers set their prices .

How do consumers benefit from product bundle pricing?

When General Motors provides payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs,it is granting a .

A car maker's strategy of advertising a basic vehicle model with few conveniences and comforts at a low price to entice buyers and then convincing customers to buy higher- priced models with more amenities is an example of which of the following?

When Polaroid set the general price range of its cameras low and the markup on its film high,it was practicing .

Casual Kids sells its catalog items FOB- origin pricing.Who pays the freight charges?

Using _ _,companies are able to turn their trash into cash,allowing them to make the price of their main product more competitive.

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

Which of the following is NOT a geographical pricing strategy?

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

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

Developing New Products and Managing the Product Life Cycle

Pricing Strategies: Understanding and Capturing Customer Value

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value

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