Question 1

What is a demand curve? Why is it useful to marketers?

Accepted Answer

Each price a company might charge will l

Question 2

Radox,a luxury watch brand,identifies a market segment that is willing to pay premium prices for its watches,and Radox managers select an ideal selling price.Managers then determine the costs to create watches that meet the ideal selling price.The company's pricing approach is referred to as ________.

Accepted Answer

A)  mass production 
B)  cost-plus pricing 
C)  target costing 
D)  value-added pricing 
E)  target return pricing 
A)  mass production 
B)  cost-plus pricing 
C)  target costing 
D)  value-added pricing 
E)  target return pricing

Question 3

Pricing a product based on consumers' reference prices is referred to as ________ pricing.

Accepted Answer

A)  geographical 
B)  psychological 
C)  allowance 
D)  by-product 
E)  captive-product 
A)  geographical 
B)  psychological 
C)  allowance 
D)  by-product 
E)  captive-product

Question 4

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

Accepted Answer

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

Question 5

________ is the only element in the marketing mix that produces revenue.

Accepted Answer

A)  Price 
B)  Place 
C)  Promotion 
D)  Product 
E)  Profit 
A)  Price 
B)  Place 
C)  Promotion 
D)  Product 
E)  Profit

Question 6

________ pricing refers to selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business.

Accepted Answer

A)  Oligopolistic 
B)  Captive 
C)  Dynamic 
D)  Zone 
E)  Predatory 
A)  Oligopolistic 
B)  Captive 
C)  Dynamic 
D)  Zone 
E)  Predatory

Question 7

Selling accessory products along with the main product is referred to as ________ pricing.

Accepted Answer

A)  product bundle 
B)  optional-product 
C)  market-penetration 
D)  by-product 
E)  product line 
A)  product bundle 
B)  optional-product 
C)  market-penetration 
D)  by-product 
E)  product line

Question 8

Which group is most likely offered functional discounts by manufacturers?

Accepted Answer

A)  trade-channel members that perform sales tasks 
B)  consumers who buy products in large quantities 
C)  buyers who pay their bills before the due date 
D)  buyers who purchase merchandise out of season 
E)  retailers that participate in advertising programs 
A)  trade-channel members that perform sales tasks 
B)  consumers who buy products in large quantities 
C)  buyers who pay their bills before the due date 
D)  buyers who purchase merchandise out of season 
E)  retailers that participate in advertising programs

Question 9

Market skimming makes sense when a product's quality and image support its higher price,and enough buyers want the product at that price.

Accepted Answer

A) True 
 B)False

Question 10

Andy Candy Stores prices its candy displays at ten different price levels,ranging from $2.00 per pound to $4.95 per pound.This is an illustration of price steps.

Accepted Answer

A) True 
 B)False

Question 11

Explain competition-based pricing.

Accepted Answer

Competition-based pricing involves setti

Question 12

What is customer value-based pricing? Describe the two types of value-based pricing.

Accepted Answer

Customer value-based pricing uses buyers

Question 13

When World Movers,a house mover,sells boxes and pads that must be used in moving a household's furniture,the company is practicing dynamic pricing.

Accepted Answer

A) True 
 B)False

Question 14

How do firms that use captive-product pricing make up for the low prices of their main products?

Accepted Answer

A)  They reduce the cost of the captive products. 
B)  They provide the captive products as freebies. 
C)  They set high markups on the captive products. 
D)  They increase the price of the main products. 
E)  They offer the captive products and main products together at a reasonable price. 
A)  They reduce the cost of the captive products. 
B)  They provide the captive products as freebies. 
C)  They set high markups on the captive products. 
D)  They increase the price of the main products. 
E)  They offer the captive products and main products together at a reasonable price.

Question 15

Qriosity Inc.released a new antivirus program at half-price to attract buyers.This is most likely an example of ________.

Accepted Answer

A)  market-skimming pricing 
B)  market-penetration pricing 
C)  optional-product pricing 
D)  by-product pricing 
E)  allowance pricing 
A)  market-skimming pricing 
B)  market-penetration pricing 
C)  optional-product pricing 
D)  by-product pricing 
E)  allowance pricing

Question 16

If demand is elastic rather than inelastic,sellers typically consider increasing their prices.

Accepted Answer

A) True 
 B)False

Question 17

________ pricing involves charging a constant low price with few or no temporary price discounts.

Accepted Answer

A)  High-low 
B)  Target return 
C)  Cost-plus 
D)  Everyday low 
E)  Market-skimming 
A)  High-low 
B)  Target return 
C)  Cost-plus 
D)  Everyday low 
E)  Market-skimming

Question 18

When Luxury Motors gives price reductions to its new car dealers to reward them for participating in advertising and sales support programs,the firm is granting ________.

Accepted Answer

A)  cash discounts 
B)  seasonal discounts 
C)  quantity discounts 
D)  promotional allowances 
E)  trade-in allowances 
A)  cash discounts 
B)  seasonal discounts 
C)  quantity discounts 
D)  promotional allowances 
E)  trade-in allowances

Question 19

With reference to the different types of markets,compare pure competition with monopolistic competition.

Accepted Answer

Under pure competition,the market consis

Question 20

The demand curve shows the number of units the market will buy in a given time period at similar prices.

Accepted Answer

A) True 
 B)False

What is a demand curve? Why is it useful to marketers?

Pricing a product based on consumers' reference prices is referred to as ________ pricing.

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

________ is the only element in the marketing mix that produces revenue.

________ pricing refers to selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business.

Selling accessory products along with the main product is referred to as ________ pricing.

Which group is most likely offered functional discounts by manufacturers?

Market skimming makes sense when a product's quality and image support its higher price,and enough buyers want the product at that price.

Andy Candy Stores prices its candy displays at ten different price levels,ranging from $2.00 per pound to $4.95 per pound.This is an illustration of price steps.

Explain competition-based pricing.

What is customer value-based pricing? Describe the two types of value-based pricing.

When World Movers,a house mover,sells boxes and pads that must be used in moving a household's furniture,the company is practicing dynamic pricing.

How do firms that use captive-product pricing make up for the low prices of their main products?

Qriosity Inc.released a new antivirus program at half-price to attract buyers.This is most likely an example of ________.

If demand is elastic rather than inelastic,sellers typically consider increasing their prices.

________ pricing involves charging a constant low price with few or no temporary price discounts.

When Luxury Motors gives price reductions to its new car dealers to reward them for participating in advertising and sales support programs,the firm is granting ________.

With reference to the different types of markets,compare pure competition with monopolistic competition.

The demand curve shows the number of units the market will buy in a given time period at similar prices.

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

Understanding Consumer 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

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

The Global Marketplace

Social Responsibility and Ethics

Filters

Exam 9: Pricing: Understanding and Capturing Customer Value

What is a demand curve? Why is it useful to marketers?

Pricing a product based on consumers' reference prices is referred to as ________ pricing.

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

________ is the only element in the marketing mix that produces revenue.

________ pricing refers to selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business.

Selling accessory products along with the main product is referred to as ________ pricing.

Which group is most likely offered functional discounts by manufacturers?

Market skimming makes sense when a product's quality and image support its higher price,and enough buyers want the product at that price.

Andy Candy Stores prices its candy displays at ten different price levels,ranging from $2.00 per pound to $4.95 per pound.This is an illustration of price steps.

Explain competition-based pricing.

What is customer value-based pricing? Describe the two types of value-based pricing.

When World Movers,a house mover,sells boxes and pads that must be used in moving a household's furniture,the company is practicing dynamic pricing.

How do firms that use captive-product pricing make up for the low prices of their main products?

Qriosity Inc.released a new antivirus program at half-price to attract buyers.This is most likely an example of ________.

If demand is elastic rather than inelastic,sellers typically consider increasing their prices.

________ pricing involves charging a constant low price with few or no temporary price discounts.

When Luxury Motors gives price reductions to its new car dealers to reward them for participating in advertising and sales support programs,the firm is granting ________.

With reference to the different types of markets,compare pure competition with monopolistic competition.

The demand curve shows the number of units the market will buy in a given time period at similar prices.

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

Understanding Consumer 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

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

The Global Marketplace

Social Responsibility and Ethics

Filters