Question 1

A _____ is a price reduction offered to a consumer,an industrial user,or a marketing intermediary in return for prompt payment of a bill.

Accepted Answer

A)  cash discount 
B)  quantity discount 
C)  functional discount 
D)  seasonal discount 
A)  cash discount 
B)  quantity discount 
C)  functional discount 
D)  seasonal discount A

Question 2

A software program that searches the Web for the best price for a particular item that you wish to purchase is called ______________.

Accepted Answer

A)  a shopping bot 
B)  the extranet 
C)  a wireless setup 
D)  an internet auction 
A)  a shopping bot 
B)  the extranet 
C)  a wireless setup 
D)  an internet auction A

Question 3

According to garment makers,the demands of big volume customers,such as department stores,are nearly wiping out profits for all suppliers except the very largest.

Accepted Answer

A) True 
 B)False  True

Question 4

Return on investment (ROI)for a firm is

Accepted Answer

A)  the margin of profit earned by the firm inclusive of the taxes payable by the firm. 
B)  the firm's total assets multiplied by net profits after taxes. 
C)  a measure of the firm's effectiveness in generating profits with the available assets. 
D)  lower than the previous year if the firm has performed better in the market. 
A)  the margin of profit earned by the firm inclusive of the taxes payable by the firm. 
B)  the firm's total assets multiplied by net profits after taxes. 
C)  a measure of the firm's effectiveness in generating profits with the available assets. 
D)  lower than the previous year if the firm has performed better in the market.

Question 5

Which of the following helps determine what sales volume must be reached before total revenue equals total costs?

Accepted Answer

A)  SWOT analysis 
B)  Breakeven analysis 
C)  Status quo pricing 
D)  Dynamic pricing 
A)  SWOT analysis 
B)  Breakeven analysis 
C)  Status quo pricing 
D)  Dynamic pricing

Question 6

The quantity of a product that will be offered to the market by a supplier at various prices for a specified period determines the product's ______.

Accepted Answer

A)  demand 
B)  supply 
C)  market share 
D)  product share 
A)  demand 
B)  supply 
C)  market share 
D)  product share

Question 7

Zone pricing is a modification of uniform delivered pricing,and it divides the United States (or the total market)into segments (or zones)and charges a flat freight rate to all customers in a given zone.

Accepted Answer

A) True 
 B)False

Question 8

The managers at Click-to-Door,an e-commerce website,closely monitor its rival online retailers to analyze how consumers respond to changes in the prices of certain products.They use the results of this analysis to constantly change the prices on their website to maximize sales and profits.In this case,which of the following pricing strategies does Click-to-Door follow?

Accepted Answer

A)  Comparative pricing 
B)  Dynamic pricing 
C)  Capacitive pricing 
D)  Dependent pricing 
A)  Comparative pricing 
B)  Dynamic pricing 
C)  Capacitive pricing 
D)  Dependent pricing

Question 9

Costs that change with the level of output are called _____ costs.

Accepted Answer

A)  fixed 
B)  variable 
C)  independent 
D)  indirect 
A)  fixed 
B)  variable 
C)  independent 
D)  indirect

Question 10

Prices always steadily decline for a product in the decline stage of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 11

Which statement best defines price fixing?

Accepted Answer

A)  A policy whereby a firm charges a high introductory price,often coupled with heavy promotion 
B)  A policy whereby a firm charges a relatively low price for a product when it is first rolled out 
C)  An agreement between two or more firms on the price they will charge for a product 
D)  Charging a price identical to or very close to the competition's price 
A)  A policy whereby a firm charges a high introductory price,often coupled with heavy promotion 
B)  A policy whereby a firm charges a relatively low price for a product when it is first rolled out 
C)  An agreement between two or more firms on the price they will charge for a product 
D)  Charging a price identical to or very close to the competition's price

Question 12

Generally speaking,which of the following marks a product's entry into the growth stage of its life cycle?

Accepted Answer

A)  Prices generally begin to destabilize. 
B)  Prices generally begin to stabilize. 
C)  Prices decrease rapidly as competition increases. 
D)  Prices decrease moderately as competition decreases. 
A)  Prices generally begin to destabilize. 
B)  Prices generally begin to stabilize. 
C)  Prices decrease rapidly as competition increases. 
D)  Prices decrease moderately as competition decreases.

Question 13

To increase the popularity of its new range of smartphones,GizmoPro Inc.offered several free accessories to customers who bought their smartphones.However,the offer turned out to be unsustainable and the company had to offer discounts on the accessories instead.GizmoPro's decision is aimed at _____.

Accepted Answer

A)  market share pricing 
B)  profit maximization 
C)  demand orientation 
D)  sales maximization 
A)  market share pricing 
B)  profit maximization 
C)  demand orientation 
D)  sales maximization

Question 14

Which of the following happens if demand is elastic?

Accepted Answer

A)  As price goes up,consumer demand changes. 
B)  The competition between organizations reduces. 
C)  Products will not have any substitutes. 
D)  The purchasing power of the consumer decreases. 
A)  As price goes up,consumer demand changes. 
B)  The competition between organizations reduces. 
C)  Products will not have any substitutes. 
D)  The purchasing power of the consumer decreases.

Question 15

Which term refers to selling commodities of similar grade and quality to two or more different buyers at different prices,within a reasonably short time,where the result would be to substantially lessen competition?

Accepted Answer

A)  Price discrimination 
B)  Price fixing 
C)  Bait pricing 
D)  Penetration pricing 
A)  Price discrimination 
B)  Price fixing 
C)  Bait pricing 
D)  Penetration pricing

Question 16

A price reduction offered to buyers who purchase product in multiple units or above a specified dollar amount is termed a ______ discount.

Accepted Answer

A)  trade 
B)  cash 
C)  seasonal 
D)  quantity 
A)  trade 
B)  cash 
C)  seasonal 
D)  quantity

Question 17

Explain the significance of market share as a sales-oriented pricing objective.

Accepted Answer

Answers will vary.Sales-oriented pricing

Question 18

www.ebay.com is the most popular extranet in the United States.

Accepted Answer

A) True 
 B)False

Question 19

The Internet,Extranets (private electronic networks),and wireless setups are enabling buyers to quickly and easily compare products and prices,putting them in a better bargaining position.

Accepted Answer

A) True 
 B)False

Question 20

Because it denotes a high price relative to the prices of competing products,______ is sometimes called a "market-plus" approach to pricing.

Accepted Answer

A)  price skimming 
B)  price fixing 
C)  status quo pricing 
D)  bait-and-switch pricing 
A)  price skimming 
B)  price fixing 
C)  status quo pricing 
D)  bait-and-switch pricing

A _____ is a price reduction offered to a consumer,an industrial user,or a marketing intermediary in return for prompt payment of a bill.

A software program that searches the Web for the best price for a particular item that you wish to purchase is called ______________.

According to garment makers,the demands of big volume customers,such as department stores,are nearly wiping out profits for all suppliers except the very largest.

Return on investment (ROI)for a firm is

Which of the following helps determine what sales volume must be reached before total revenue equals total costs?

The quantity of a product that will be offered to the market by a supplier at various prices for a specified period determines the product's ______.

Zone pricing is a modification of uniform delivered pricing,and it divides the United States (or the total market)into segments (or zones)and charges a flat freight rate to all customers in a given zone.

Costs that change with the level of output are called _____ costs.

Prices always steadily decline for a product in the decline stage of the product life cycle.

Which statement best defines price fixing?

Generally speaking,which of the following marks a product's entry into the growth stage of its life cycle?

To increase the popularity of its new range of smartphones,GizmoPro Inc.offered several free accessories to customers who bought their smartphones.However,the offer turned out to be unsustainable and the company had to offer discounts on the accessories instead.GizmoPro's decision is aimed at _____.

Which of the following happens if demand is elastic?

Which term refers to selling commodities of similar grade and quality to two or more different buyers at different prices,within a reasonably short time,where the result would be to substantially lessen competition?

A price reduction offered to buyers who purchase product in multiple units or above a specified dollar amount is termed a ______ discount.

Explain the significance of market share as a sales-oriented pricing objective.

www.ebay.com is the most popular extranet in the United States.

The Internet,Extranets (private electronic networks),and wireless setups are enabling buyers to quickly and easily compare products and prices,putting them in a better bargaining position.

Because it denotes a high price relative to the prices of competing products,______ is sometimes called a "market-plus" approach to pricing.

An Overview of Marketing

Strategic Planning and Competitive Advantage

Ethics and Social Responsibility

The Marketing Environment

Developing a Global Vision

Consumer Decision Making

Business Marketing

Segmenting and Targeting Markets

Marketing Research

Product Concepts

Developing and Managing Products

Services and Nonprofit Organization Marketing

Supply Chain Management and Marketing Channels

Retailing

Marketing Communications

Advertising,public Relations,and Sales Promotion

Personal Selling and Sales Management

Social Media and Marketing

Filters

Exam 19: Pricing Concepts

A _____ is a price reduction offered to a consumer,an industrial user,or a marketing intermediary in return for prompt payment of a bill.

A software program that searches the Web for the best price for a particular item that you wish to purchase is called ______________.

According to garment makers,the demands of big volume customers,such as department stores,are nearly wiping out profits for all suppliers except the very largest.

Return on investment (ROI)for a firm is

Which of the following helps determine what sales volume must be reached before total revenue equals total costs?

The quantity of a product that will be offered to the market by a supplier at various prices for a specified period determines the product's ______.

Zone pricing is a modification of uniform delivered pricing,and it divides the United States (or the total market)into segments (or zones)and charges a flat freight rate to all customers in a given zone.

Costs that change with the level of output are called _____ costs.

Prices always steadily decline for a product in the decline stage of the product life cycle.

Which statement best defines price fixing?

Generally speaking,which of the following marks a product's entry into the growth stage of its life cycle?

Which of the following happens if demand is elastic?

Which term refers to selling commodities of similar grade and quality to two or more different buyers at different prices,within a reasonably short time,where the result would be to substantially lessen competition?

A price reduction offered to buyers who purchase product in multiple units or above a specified dollar amount is termed a ______ discount.

Explain the significance of market share as a sales-oriented pricing objective.

www.ebay.com is the most popular extranet in the United States.

The Internet,Extranets (private electronic networks),and wireless setups are enabling buyers to quickly and easily compare products and prices,putting them in a better bargaining position.

Because it denotes a high price relative to the prices of competing products,______ is sometimes called a "market-plus" approach to pricing.

An Overview of Marketing

Strategic Planning and Competitive Advantage

Ethics and Social Responsibility

The Marketing Environment

Developing a Global Vision

Consumer Decision Making

Business Marketing

Segmenting and Targeting Markets

Marketing Research

Product Concepts

Developing and Managing Products

Services and Nonprofit Organization Marketing

Supply Chain Management and Marketing Channels

Retailing

Marketing Communications

Advertising,public Relations,and Sales Promotion

Personal Selling and Sales Management

Social Media and Marketing

Filters