Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Under product- form pricing,different versions of a product are priced differently,but not according to differences in its _ .

Accepted Answer

A) distribution channels 
B) retail outlets 
C) marketing budgets 
D) costs 
E) reference prices 
A) distribution channels 
B) retail outlets 
C) marketing budgets 
D) costs 
E) reference prices

Question 3

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

Accepted Answer

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

Question 4

A company sets not a single price,but rather a that covers different items in its line that change over time as products move through their life cycles.

Accepted Answer

A) pricing loop 
B) pricing by- product 
C) pricing bundle 
D) pricing structure 
E) pricing cycle 
A) pricing loop 
B) pricing by- product 
C) pricing bundle 
D) pricing structure 
E) pricing cycle

Question 5

What is a major advantage of product bundle pricing?

Accepted Answer

A) It combines the benefits of the other pricing strategies. 
B) It offers consumers less value for the money. 
C) It creates a brand experience for consumers. 
D) It can promote the sales of products consumers might not otherwise buy. 
E) It allows a company to offset the costs of disposing of by- products. 
A) It combines the benefits of the other pricing strategies. 
B) It offers consumers less value for the money. 
C) It creates a brand experience for consumers. 
D) It can promote the sales of products consumers might not otherwise buy. 
E) It allows a company to offset the costs of disposing of by- products.

Question 6

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

Accepted Answer

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

Question 7

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

Question 8

Bose prices its most expensive noise reduction earphones at $399.95,which is a full $100.00 more than its next most expensive earphones.It costs Bose only a few dollars more to make the most expensive earphones.Bose is using pricing.

Accepted Answer

A) captive product 
B) customer- segment 
C) promotional 
D) penetration 
E) product- form 
A) captive product 
B) customer- segment 
C) promotional 
D) penetration 
E) product- form

Question 9

When a company charges the same rate to ship a product anywhere in the United States,it is using which form of geographic pricing?

Accepted Answer

A) FOB origin 
B) uniform- delivered 
C) FOB delivered 
D) FOB factory 
E) basing- point 
A) FOB origin 
B) uniform- delivered 
C) FOB delivered 
D) FOB factory 
E) basing- point

Question 10

When consumers cannot judge quality because they lack the information or skill,price becomes .

Accepted Answer

A) insignificant 
B) an important quality signal 
C) negotiable 
D) the only driver of the purchase 
E) less important 
A) insignificant 
B) an important quality signal 
C) negotiable 
D) the only driver of the purchase 
E) less important

Question 11

When a manufacturer seeks a market for by- products and accepts a price that covers more than the cost of storing and delivering those by- products,the manufacturer is able to reduce the main product's price to make it more competitive.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) discounts 
B) product- form pricing 
C) promotional pricing 
D) allowances 
E) segmented pricing 
A) discounts 
B) product- form pricing 
C) promotional pricing 
D) allowances 
E) segmented pricing

Question 13

Trade or functional discounts are offered by manufacturers to .

Accepted Answer

A) other channel members that agree to exclusive distribution contracts 
B) intermediaries such as financing institutions as a cost of doing business with them 
C) the government market and other organizations that require bid proposals 
D) channel members who perform tasks that the manufacturer would otherwise have to perform 
E) consumers who earn a price reduction for buying in bulk 
A) other channel members that agree to exclusive distribution contracts 
B) intermediaries such as financing institutions as a cost of doing business with them 
C) the government market and other organizations that require bid proposals 
D) channel members who perform tasks that the manufacturer would otherwise have to perform 
E) consumers who earn a price reduction for buying in bulk

Question 14

Pricing is often difficult because various products have related demand and costs,and they face different degrees of competition.

Accepted Answer

A) True 
 B)False

Question 15

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

Question 16

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

Accepted Answer

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

Question 17

Consumers are less likely to use price to judge the quality of a product when they .

Accepted Answer

A) cannot physically examine the product 
B) have experience with the product 
C) lack information 
D) lack skills to use the product 
E) are shopping for a specialty item 
A) cannot physically examine the product 
B) have experience with the product 
C) lack information 
D) lack skills to use the product 
E) are shopping for a specialty item

Question 18

Zone pricing involves the customers paying for the shipping if they live outside the zone where the company is located.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) captive pricing 
B) cost- plus pricing 
C) dynamic pricing 
D) price bundling 
E) basing- point pricing 
A) captive pricing 
B) cost- plus pricing 
C) dynamic pricing 
D) price bundling 
E) basing- point pricing

Question 20

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

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

Under product- form pricing,different versions of a product are priced differently,but not according to differences in its _ .

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

A company sets not a single price,but rather a that covers different items in its line that change over time as products move through their life cycles.

What is a major advantage of product bundle pricing?

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

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

Bose prices its most expensive noise reduction earphones at $399.95,which is a full $100.00 more than its next most expensive earphones.It costs Bose only a few dollars more to make the most expensive earphones.Bose is using pricing.

When a company charges the same rate to ship a product anywhere in the United States,it is using which form of geographic pricing?

When consumers cannot judge quality because they lack the information or skill,price becomes .

When a manufacturer seeks a market for by- products and accepts a price that covers more than the cost of storing and delivering those by- products,the manufacturer is able to reduce the main product's price to make it more competitive.

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

Trade or functional discounts are offered by manufacturers to .

Pricing is often difficult because various products have related demand and costs,and they face different degrees of competition.

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.

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

Consumers are less likely to use price to judge the quality of a product when they .

Zone pricing involves the customers paying for the shipping if they live outside the zone where the company is located.

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

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?

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

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Exam 11: Additional Pricing Considerations

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

Under product- form pricing,different versions of a product are priced differently,but not according to differences in its _ .

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

A company sets not a single price,but rather a that covers different items in its line that change over time as products move through their life cycles.

What is a major advantage of product bundle pricing?

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

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

Bose prices its most expensive noise reduction earphones at $399.95,which is a full $100.00 more than its next most expensive earphones.It costs Bose only a few dollars more to make the most expensive earphones.Bose is using pricing.

When a company charges the same rate to ship a product anywhere in the United States,it is using which form of geographic pricing?

When consumers cannot judge quality because they lack the information or skill,price becomes .

When a manufacturer seeks a market for by- products and accepts a price that covers more than the cost of storing and delivering those by- products,the manufacturer is able to reduce the main product's price to make it more competitive.

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

Trade or functional discounts are offered by manufacturers to .

Pricing is often difficult because various products have related demand and costs,and they face different degrees of competition.

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.

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

Consumers are less likely to use price to judge the quality of a product when they .

Zone pricing involves the customers paying for the shipping if they live outside the zone where the company is located.

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

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?

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