Question 1

Cost-based pricing relies on consumers' perceptions of value to drive pricing.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A)  market-skimming pricing 
B)  target costing 
C)  deceptive pricing 
D)  market-penetration pricing 
E)  predatory pricing 
A)  market-skimming pricing 
B)  target costing 
C)  deceptive pricing 
D)  market-penetration pricing 
E)  predatory pricing

Question 3

What is the difference between price-fixing and predatory pricing? How do governments discourage firms from engaging in such practices?

Accepted Answer

Federal legislation on price-fixing stat

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

The Robinson-Patman Act seeks to prevent unfair price discrimination by ensuring that sellers offer the same price terms to customers at a given level of trade.

Accepted Answer

A) True 
 B)False

Question 6

There are more than 20 stores on a street in Sao Paulo that specialize in selling the same quality and brand of wheat products.An individual seller cannot charge more than the going market price without the risk of losing business to the other stores.What type of market does this example represent?

Accepted Answer

A)  pure competition 
B)  monopolistic competition 
C)  oligopolistic competition 
D)  a pure monopoly 
E)  a black market 
A)  pure competition 
B)  monopolistic competition 
C)  oligopolistic competition 
D)  a pure monopoly 
E)  a black market

Question 7

Price discrimination is allowed if a seller can prove that its costs are different when selling to different retailers.

Accepted Answer

A) True 
 B)False

Question 8

The simplest pricing method is break-even pricing,which involves adding a standard markup to the cost of a product.

Accepted Answer

A) True 
 B)False

Question 9

What are the two different types of costs a company incurs? Explain with examples.

Accepted Answer

A company's costs take two forms: fixed

Question 10

The Sherman Act,Clayton Act,and Robinson-Patman Act are all federal laws that were initially adopted to curb the formation of ________.

Accepted Answer

A)  monopolies 
B)  oligopolies 
C)  competitive markets 
D)  international markets 
E)  limited partnerships 
A)  monopolies 
B)  oligopolies 
C)  competitive markets 
D)  international markets 
E)  limited partnerships

Question 11

With reference to pricing in different types of markets,compare oligopolistic competition with a pure monopoly.

Accepted Answer

Under oligopolistic competition,the mark

Question 12

When a firm varies the price of a product by the season,month,day,or even hour,without changing product features,it is using ________ pricing.

Accepted Answer

A)  product form 
B)  market-penetration 
C)  market-skimming 
D)  time-based 
E)  value-added 
A)  product form 
B)  market-penetration 
C)  market-skimming 
D)  time-based 
E)  value-added

Question 13

What external factors affect the pricing decisions made by organizations?

Accepted Answer

External factors that affect pricing dec

Question 14

When using product line pricing,a firm sets one price for all products in the line based on average manufacturing costs.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following sets the upper limit for a product's pricing?

Accepted Answer

A)  profits 
B)  product costs 
C)  consumer perceptions of value 
D)  elements of the product mix 
E)  competition 
A)  profits 
B)  product costs 
C)  consumer perceptions of value 
D)  elements of the product mix 
E)  competition

Question 16

Providing extra amenities to differentiate and support high-priced products is referred to as ________ pricing.

Accepted Answer

A)  high-low 
B)  value-added 
C)  target return 
D)  everyday low 
E)  cost-plus 
A)  high-low 
B)  value-added 
C)  target return 
D)  everyday low 
E)  cost-plus

Question 17

What is segmented pricing? Briefly describe the different types of segmented pricing.

Accepted Answer

In segmented pricing,the company sells a

Question 18

When demand hardly changes with a small change in the price of a product,then the demand for the product is best described as ________.

Accepted Answer

A)  elastic 
B)  flexible 
C)  inelastic 
D)  variable 
E)  cyclical 
A)  elastic 
B)  flexible 
C)  inelastic 
D)  variable 
E)  cyclical

Question 19

Target costing starts with an ideal selling price based on customer value considerations and then aims at costs that will ensure that the price is met.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following pricing strategies charges the same price plus freight to all customers,regardless of their location?

Accepted Answer

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

Cost-based pricing relies on consumers' perceptions of value to drive pricing.

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

What is the difference between price-fixing and predatory pricing? How do governments discourage firms from engaging in such practices?

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

The Robinson-Patman Act seeks to prevent unfair price discrimination by ensuring that sellers offer the same price terms to customers at a given level of trade.

There are more than 20 stores on a street in Sao Paulo that specialize in selling the same quality and brand of wheat products.An individual seller cannot charge more than the going market price without the risk of losing business to the other stores.What type of market does this example represent?

Price discrimination is allowed if a seller can prove that its costs are different when selling to different retailers.

The simplest pricing method is break-even pricing,which involves adding a standard markup to the cost of a product.

What are the two different types of costs a company incurs? Explain with examples.

The Sherman Act,Clayton Act,and Robinson-Patman Act are all federal laws that were initially adopted to curb the formation of ________.

With reference to pricing in different types of markets,compare oligopolistic competition with a pure monopoly.

When a firm varies the price of a product by the season,month,day,or even hour,without changing product features,it is using ________ pricing.

What external factors affect the pricing decisions made by organizations?

When using product line pricing,a firm sets one price for all products in the line based on average manufacturing costs.

Which of the following sets the upper limit for a product's pricing?

Providing extra amenities to differentiate and support high-priced products is referred to as ________ pricing.

What is segmented pricing? Briefly describe the different types of segmented pricing.

When demand hardly changes with a small change in the price of a product,then the demand for the product is best described as ________.

Target costing starts with an ideal selling price based on customer value considerations and then aims at costs that will ensure that the price is met.

Which of the following pricing strategies charges the same price plus freight to all customers,regardless of their location?

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

Cost-based pricing relies on consumers' perceptions of value to drive pricing.

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

What is the difference between price-fixing and predatory pricing? How do governments discourage firms from engaging in such practices?

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

The Robinson-Patman Act seeks to prevent unfair price discrimination by ensuring that sellers offer the same price terms to customers at a given level of trade.

There are more than 20 stores on a street in Sao Paulo that specialize in selling the same quality and brand of wheat products.An individual seller cannot charge more than the going market price without the risk of losing business to the other stores.What type of market does this example represent?

Price discrimination is allowed if a seller can prove that its costs are different when selling to different retailers.

The simplest pricing method is break-even pricing,which involves adding a standard markup to the cost of a product.

What are the two different types of costs a company incurs? Explain with examples.

The Sherman Act,Clayton Act,and Robinson-Patman Act are all federal laws that were initially adopted to curb the formation of ________.

With reference to pricing in different types of markets,compare oligopolistic competition with a pure monopoly.

When a firm varies the price of a product by the season,month,day,or even hour,without changing product features,it is using ________ pricing.

What external factors affect the pricing decisions made by organizations?

When using product line pricing,a firm sets one price for all products in the line based on average manufacturing costs.

Which of the following sets the upper limit for a product's pricing?

Providing extra amenities to differentiate and support high-priced products is referred to as ________ pricing.

What is segmented pricing? Briefly describe the different types of segmented pricing.

When demand hardly changes with a small change in the price of a product,then the demand for the product is best described as ________.

Target costing starts with an ideal selling price based on customer value considerations and then aims at costs that will ensure that the price is met.

Which of the following pricing strategies charges the same price plus freight to all customers,regardless of their location?

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