Question 1

In what way does the government regulate pricing?

Accepted Answer

The most important pieces of federal leg

Question 2

Which of the following would most likely lead to a company initiating a price increase?

Accepted Answer

A)  weakened economy 
B)  possession of outdated merchandise 
C)  excess capacity 
D)  over-demand 
E)  possession of defective merchandise 
A)  weakened economy 
B)  possession of outdated merchandise 
C)  excess capacity 
D)  over-demand 
E)  possession of defective merchandise

Question 3

Which term refers to prices that buyers carry in their minds and check with when they look at a given product?

Accepted Answer

A)  product line prices 
B)  reference prices 
C)  location-based prices 
D)  product form prices 
E)  time-based prices 
A)  product line prices 
B)  reference prices 
C)  location-based prices 
D)  product form prices 
E)  time-based prices

Question 4

Which of the following factors would most likely lead to a company initiating a price cut?

Accepted Answer

A)  over-demand 
B)  weakened economy 
C)  poor competition 
D)  cost inflation 
E)  weak price competition 
A)  over-demand 
B)  weakened economy 
C)  poor competition 
D)  cost inflation 
E)  weak price competition

Question 5

For segmented pricing to be an effective strategy, prices should reflect real differences in customers' perceived value.

Accepted Answer

A) True 
 B)False

Question 6

In addition to its customary services, On the Spot, a moving company, also sells the boxes and padding that are used when moving household furniture. This is an example of customer-segmented pricing.

Accepted Answer

A) True 
 B)False

Question 7

Print-Fast Printers prices its printer cartridges at a premium, since customers must buy Print-Fast cartridges to work with their Print-Fast printer. Print-Fast uses optional-product pricing.

Accepted Answer

A) True 
 B)False

Question 8

Beach Heaven uses two-part pricing for its holiday resort charges. Because this is a service, the price is broken into a fixed fee for the room plus a(n) ________ usage rate for activities, including kite-sailing and child care.

Accepted Answer

A)  fixed 
B)  variable 
C)  standard 
D)  market 
E)  optional 
A)  fixed 
B)  variable 
C)  standard 
D)  market 
E)  optional

Question 9

Shoe Trends, a company that manufactures formal shoes for men and women, offers to give its customers $10 for an old pair of shoes when they buy a new pair. In essence, they're reducing the price of the new shoes by $10. What is this type of price adjustment called?

Accepted Answer

A)  functional discount 
B)  captive product pricing 
C)  seasonal discount 
D)  trade-in allowance 
E)  by-product pricing 
A)  functional discount 
B)  captive product pricing 
C)  seasonal discount 
D)  trade-in allowance 
E)  by-product pricing

Question 10

For a market penetration-price strategy to succeed, which of the following is LEAST likely to be true?

Accepted Answer

A)  Production costs decrease as sales volume increases. 
B)  A low price triggers market growth. 
C)  Distribution costs decrease as sales volume increases. 
D)  Low prices must inhibit competition from entering the market. 
E)  The strategy can be changed quickly, to a higher-priced position, with no negative impact. 
A)  Production costs decrease as sales volume increases. 
B)  A low price triggers market growth. 
C)  Distribution costs decrease as sales volume increases. 
D)  Low prices must inhibit competition from entering the market. 
E)  The strategy can be changed quickly, to a higher-priced position, with no negative impact.

Question 11

Stores can combat the current consumer practice of ________, in which consumers visit stores and then check online for price comparisons.

Accepted Answer

A)  discounting 
B)  conferencing 
C)  using Instagram to share purchases 
D)  showrooming 
E)  auctioning 
A)  discounting 
B)  conferencing 
C)  using Instagram to share purchases 
D)  showrooming 
E)  auctioning

Question 12

Whizz Corp. wishes to introduce a new hybrid car into mature markets in developed countries with the goal of gaining mass-market share quickly. Which of the following pricing strategies would help the firm meet its goal?

Accepted Answer

A)  market-skimming pricing 
B)  market-penetration pricing 
C)  market-segmentation pricing 
D)  cost-plus pricing 
E)  captive-product pricing 
A)  market-skimming pricing 
B)  market-penetration pricing 
C)  market-segmentation pricing 
D)  cost-plus pricing 
E)  captive-product pricing

Question 13

A seasonal discount is a price reduction to buyers who buy merchandise while the products are in season.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is an adverse effect of using promotional pricing?

Accepted Answer

A)  It makes shopping stressful if used by multiple stores simultaneously. 
B)  It erodes the value of competing brands in the eyes of customers. 
C)  It gives pricing secrets away to competitors. 
D)  It creates "deal-immune" customers if used often. 
E)  It delays the company's focus on short-term strategies. 
A)  It makes shopping stressful if used by multiple stores simultaneously. 
B)  It erodes the value of competing brands in the eyes of customers. 
C)  It gives pricing secrets away to competitors. 
D)  It creates "deal-immune" customers if used often. 
E)  It delays the company's focus on short-term strategies.

Question 15

In product line pricing, price steps should account for differences in customer perceptions of the value of different features.

Accepted Answer

A) True 
 B)False

Question 16

La Belle released a cut glass bottle of perfume at $299 per item, even though its major competitor prices its signature scent at $99 per item. La Belle reasons that customers in search of luxury goods will prefer its product because they are likelier to believe that high price indicates superior quality. What price adjustment strategy is evident in its reasoning?

Accepted Answer

A)  seasonal pricing 
B)  time-based pricing 
C)  captive product pricing 
D)  psychological pricing 
E)  location-based pricing 
A)  seasonal pricing 
B)  time-based pricing 
C)  captive product pricing 
D)  psychological pricing 
E)  location-based pricing

Question 17

Excess capacity leads to companies initiating an increase in price.

Accepted Answer

A) True 
 B)False

Question 18

What is deceptive pricing?

Accepted Answer

Deceptive pricing occurs when

Question 19

Which of the following product mix pricing strategies did Polaroid use when it set the general price range of its cameras low and the markup on its film high?

Accepted Answer

A)  product-segmented pricing 
B)  by-product pricing 
C)  customer-segmented pricing 
D)  captive product pricing 
E)  product bundling pricing 
A)  product-segmented pricing 
B)  by-product pricing 
C)  customer-segmented pricing 
D)  captive product pricing 
E)  product bundling pricing

Question 20

A movie theater offers a reduced price for an afternoon showing of a film. This type of pricing is ________ pricing.

Accepted Answer

A)  location-based 
B)  customer-segmented 
C)  cost-based 
D)  product form 
E)  time-based 
A)  location-based 
B)  customer-segmented 
C)  cost-based 
D)  product form 
E)  time-based

In what way does the government regulate pricing?

Which of the following would most likely lead to a company initiating a price increase?

Which term refers to prices that buyers carry in their minds and check with when they look at a given product?

Which of the following factors would most likely lead to a company initiating a price cut?

For segmented pricing to be an effective strategy, prices should reflect real differences in customers' perceived value.

In addition to its customary services, On the Spot, a moving company, also sells the boxes and padding that are used when moving household furniture. This is an example of customer-segmented pricing.

Print-Fast Printers prices its printer cartridges at a premium, since customers must buy Print-Fast cartridges to work with their Print-Fast printer. Print-Fast uses optional-product pricing.

Beach Heaven uses two-part pricing for its holiday resort charges. Because this is a service, the price is broken into a fixed fee for the room plus a(n) ________ usage rate for activities, including kite-sailing and child care.

Shoe Trends, a company that manufactures formal shoes for men and women, offers to give its customers $10 for an old pair of shoes when they buy a new pair. In essence, they're reducing the price of the new shoes by $10. What is this type of price adjustment called?

For a market penetration-price strategy to succeed, which of the following is LEAST likely to be true?

Stores can combat the current consumer practice of ________, in which consumers visit stores and then check online for price comparisons.

Whizz Corp. wishes to introduce a new hybrid car into mature markets in developed countries with the goal of gaining mass-market share quickly. Which of the following pricing strategies would help the firm meet its goal?

A seasonal discount is a price reduction to buyers who buy merchandise while the products are in season.

Which of the following is an adverse effect of using promotional pricing?

In product line pricing, price steps should account for differences in customer perceptions of the value of different features.

Excess capacity leads to companies initiating an increase in price.

What is deceptive pricing?

Which of the following product mix pricing strategies did Polaroid use when it set the general price range of its cameras low and the markup on its film high?

A movie theater offers a reduced price for an afternoon showing of a film. This type of pricing is ________ pricing.

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Buyer Behavior

Business Markets and Business Buyer Behavior

Customer Value-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: Understanding and Capturing Customer Value

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters

Exam 11: Pricing Strategies: Additional Considerations

In what way does the government regulate pricing?

Which of the following would most likely lead to a company initiating a price increase?

Which term refers to prices that buyers carry in their minds and check with when they look at a given product?

Which of the following factors would most likely lead to a company initiating a price cut?

For segmented pricing to be an effective strategy, prices should reflect real differences in customers' perceived value.

In addition to its customary services, On the Spot, a moving company, also sells the boxes and padding that are used when moving household furniture. This is an example of customer-segmented pricing.

Print-Fast Printers prices its printer cartridges at a premium, since customers must buy Print-Fast cartridges to work with their Print-Fast printer. Print-Fast uses optional-product pricing.

Beach Heaven uses two-part pricing for its holiday resort charges. Because this is a service, the price is broken into a fixed fee for the room plus a(n) ________ usage rate for activities, including kite-sailing and child care.

Shoe Trends, a company that manufactures formal shoes for men and women, offers to give its customers $10 for an old pair of shoes when they buy a new pair. In essence, they're reducing the price of the new shoes by $10. What is this type of price adjustment called?

For a market penetration-price strategy to succeed, which of the following is LEAST likely to be true?

Stores can combat the current consumer practice of ________, in which consumers visit stores and then check online for price comparisons.

Whizz Corp. wishes to introduce a new hybrid car into mature markets in developed countries with the goal of gaining mass-market share quickly. Which of the following pricing strategies would help the firm meet its goal?

A seasonal discount is a price reduction to buyers who buy merchandise while the products are in season.

Which of the following is an adverse effect of using promotional pricing?

In product line pricing, price steps should account for differences in customer perceptions of the value of different features.

Excess capacity leads to companies initiating an increase in price.

What is deceptive pricing?

Which of the following product mix pricing strategies did Polaroid use when it set the general price range of its cameras low and the markup on its film high?

A movie theater offers a reduced price for an afternoon showing of a film. This type of pricing is ________ pricing.

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Buyer Behavior

Business Markets and Business Buyer Behavior

Customer Value-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: Understanding and Capturing Customer Value

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters