Question 1

In second-degree price discrimination,the seller charges ________.

Accepted Answer

A)  less to buyers of larger volumes 
B)  different prices depending on the season, day, or hour 
C)  a separate price to each customer depending on the intensity of his or her demand 
D)  different prices for different versions of the same product 
E)  different prices for the same product depending on the channel through which it is sold 
A)  less to buyers of larger volumes 
B)  different prices depending on the season, day, or hour 
C)  a separate price to each customer depending on the intensity of his or her demand 
D)  different prices for different versions of the same product 
E)  different prices for the same product depending on the channel through which it is sold

Question 2

When hotels,motels,and airlines offer discounts in slow selling periods,they are said to be offering ________.

Accepted Answer

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

Question 3

When a company maintains its price but removes or prices separately one or more elements that were part of the former offer,such as free delivery or installation,it is known as ________.

Accepted Answer

A)  escalating 
B)  differentiation 
C)  unbundling 
D)  reverse discounting 
E)  delayed quotation pricing 
A)  escalating 
B)  differentiation 
C)  unbundling 
D)  reverse discounting 
E)  delayed quotation pricing

Question 4

Many consumers use price as an indicator of quality and value.

Accepted Answer

A) True 
 B)False

Question 5

After determining its pricing objectives,what is the next logical step a firm should take in setting its pricing policy?

Accepted Answer

A)  It should analyze its competitors' costs, prices, and offers. 
B)  It should select its pricing method. 
C)  It should select its final price. 
D)  It should determine the demand for its product. 
E)  It should estimate the cost of its product. 
A)  It should analyze its competitors' costs, prices, and offers. 
B)  It should select its pricing method. 
C)  It should select its final price. 
D)  It should determine the demand for its product. 
E)  It should estimate the cost of its product.

Question 6

What are the different price-setting methods? Briefly describe each of them.

Accepted Answer

The six major price-setting methods are:

Question 7

Pricing cues such as sale signs and prices that end in 9 are more influential ________.

Accepted Answer

A)  when customers have substantial knowledge about prices 
B)  when customers purchase the particular item regularly 
C)  when product quality is standardized 
D)  when product designs vary over time 
E)  when prices do not vary from time to time 
A)  when customers have substantial knowledge about prices 
B)  when customers purchase the particular item regularly 
C)  when product quality is standardized 
D)  when product designs vary over time 
E)  when prices do not vary from time to time

Question 8

A manufacturer has invested $750,000 in a new product and wants to set a price to earn a 15 percent ROI.The cost per unit is $18 and the company expects to sell 50,000 units in the first year.Calculate the company's target-return price for this product.

Accepted Answer

A)  $20.25 
B)  $18.23 
C)  $18.10 
D)  $20.70 
E)  $25.50 
A)  $20.25 
B)  $18.23 
C)  $18.10 
D)  $20.70 
E)  $25.50

Question 9

Value pricing requires a company to reengineer its operations to become a low-cost producer.

Accepted Answer

A) True 
 B)False

Question 10

________ pricing is a matter of reengineering the company's operations to become a low-cost producer without sacrificing quality.

Accepted Answer

A)  Value 
B)  Going-rate 
C)  Auction-type 
D)  Markup 
E)  Perceived-value 
A)  Value 
B)  Going-rate 
C)  Auction-type 
D)  Markup 
E)  Perceived-value

Question 11

When Sony introduced the world's first high-definition television to the Japanese market in 1990,it was priced at $43,000.This helped Sony to scoop the maximum amount of revenue from the various segments of the market.The price dropped steadily through the years-a 28-inch Sony HDTV cost just over $6,000 in 1993,but a 40-inch Sony HDTV cost only $600 in 2010.What pricing strategy did Sony use here?

Accepted Answer

Sony used market-skimming pric

Question 12

If demand hardly changes with a small change in price,the demand is said to be ________.

Accepted Answer

A)  strained 
B)  marginal 
C)  inelastic 
D)  flexible 
E)  unit elastic 
A)  strained 
B)  marginal 
C)  inelastic 
D)  flexible 
E)  unit elastic

Question 13

Many consumers are willing to pay $100 for a perfume that contains $10 worth of scent because the perfume is from a well-known brand.What kind of a pricing is the company depending on?

Accepted Answer

A)  going-rate pricing 
B)  image pricing 
C)  market-skimming pricing 
D)  target pricing 
E)  markup pricing 
A)  going-rate pricing 
B)  image pricing 
C)  market-skimming pricing 
D)  target pricing 
E)  markup pricing

Question 14

In which of the following forms of countertrade do buyers and sellers directly exchange goods,when no money and no third party is involved?

Accepted Answer

A)  buyback arrangements 
B)  offsets 
C)  barter 
D)  sealed bids 
E)  compensation deals 
A)  buyback arrangements 
B)  offsets 
C)  barter 
D)  sealed bids 
E)  compensation deals

Question 15

Consumers are less price sensitive when ________.

Accepted Answer

A)  price is only a small part of the total cost spent on the product over its lifetime 
B)  they perceive the higher prices to be unjustified 
C)  they change their buying habits regularly 
D)  there are many substitutes and competitors in the market 
E)  they are buying high-cost items 
A)  price is only a small part of the total cost spent on the product over its lifetime 
B)  they perceive the higher prices to be unjustified 
C)  they change their buying habits regularly 
D)  there are many substitutes and competitors in the market 
E)  they are buying high-cost items

Question 16

The airline and hospitality industries use ________,by which they offer discounted but limited early purchases,higher-priced late purchases,and the lowest rates on unsold inventory just before it expires.

Accepted Answer

A)  special-customer pricing 
B)  yield pricing 
C)  cash rebates 
D)  location pricing 
E)  customer-segment pricing 
A)  special-customer pricing 
B)  yield pricing 
C)  cash rebates 
D)  location pricing 
E)  customer-segment pricing

Question 17

In which of the following auctions does the auctioneer first announce a high price for a product and then slowly decreases the price until a bidder accepts?

Accepted Answer

A)  a Dutch auction with one buyer and many sellers 
B)  an English auction with one seller and many buyers 
C)  an ascending bid auction 
D)  a sealed-bid auction 
E)  a Dutch auction with one seller and many buyers 
A)  a Dutch auction with one buyer and many sellers 
B)  an English auction with one seller and many buyers 
C)  an ascending bid auction 
D)  a sealed-bid auction 
E)  a Dutch auction with one seller and many buyers

Question 18

Consumers are less price sensitive ________.

Accepted Answer

A)  to high cost items 
B)  when they frequently change their buying habits 
C)  when there are more substitutes 
D)  when there are more competitors 
E)  when they do not readily notice higher prices 
A)  to high cost items 
B)  when they frequently change their buying habits 
C)  when there are more substitutes 
D)  when there are more competitors 
E)  when they do not readily notice higher prices

Question 19

When examining products,consumers compare an observed price to an internal reference price they remember or an external frame of reference.

Accepted Answer

A) True 
 B)False

Question 20

Briefly describe the different types of pricing objectives.

Accepted Answer

When a company is preparing to set its p

In second-degree price discrimination,the seller charges ________.

When hotels,motels,and airlines offer discounts in slow selling periods,they are said to be offering ________.

When a company maintains its price but removes or prices separately one or more elements that were part of the former offer,such as free delivery or installation,it is known as ________.

Many consumers use price as an indicator of quality and value.

After determining its pricing objectives,what is the next logical step a firm should take in setting its pricing policy?

What are the different price-setting methods? Briefly describe each of them.

Pricing cues such as sale signs and prices that end in 9 are more influential ________.

A manufacturer has invested $750,000 in a new product and wants to set a price to earn a 15 percent ROI.The cost per unit is $18 and the company expects to sell 50,000 units in the first year.Calculate the company's target-return price for this product.

Value pricing requires a company to reengineer its operations to become a low-cost producer.

________ pricing is a matter of reengineering the company's operations to become a low-cost producer without sacrificing quality.

If demand hardly changes with a small change in price,the demand is said to be ________.

Many consumers are willing to pay $100 for a perfume that contains $10 worth of scent because the perfume is from a well-known brand.What kind of a pricing is the company depending on?

In which of the following forms of countertrade do buyers and sellers directly exchange goods,when no money and no third party is involved?

Consumers are less price sensitive when ________.

The airline and hospitality industries use ________,by which they offer discounted but limited early purchases,higher-priced late purchases,and the lowest rates on unsold inventory just before it expires.

In which of the following auctions does the auctioneer first announce a high price for a product and then slowly decreases the price until a bidder accepts?

Consumers are less price sensitive ________.

When examining products,consumers compare an observed price to an internal reference price they remember or an external frame of reference.

Briefly describe the different types of pricing objectives.

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Creating Long-term Loyalty Relationships

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning and Competing Effectively

Setting Product Strategy

Designing and Managing Services

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling

Managing Marketing in the Global Economy

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Exam 12: Developing Pricing Strategies and Programs

In second-degree price discrimination,the seller charges ________.

When hotels,motels,and airlines offer discounts in slow selling periods,they are said to be offering ________.

When a company maintains its price but removes or prices separately one or more elements that were part of the former offer,such as free delivery or installation,it is known as ________.

Many consumers use price as an indicator of quality and value.

After determining its pricing objectives,what is the next logical step a firm should take in setting its pricing policy?

What are the different price-setting methods? Briefly describe each of them.

Pricing cues such as sale signs and prices that end in 9 are more influential ________.

A manufacturer has invested $750,000 in a new product and wants to set a price to earn a 15 percent ROI.The cost per unit is $18 and the company expects to sell 50,000 units in the first year.Calculate the company's target-return price for this product.

Value pricing requires a company to reengineer its operations to become a low-cost producer.

________ pricing is a matter of reengineering the company's operations to become a low-cost producer without sacrificing quality.

If demand hardly changes with a small change in price,the demand is said to be ________.

Many consumers are willing to pay $100 for a perfume that contains $10 worth of scent because the perfume is from a well-known brand.What kind of a pricing is the company depending on?

In which of the following forms of countertrade do buyers and sellers directly exchange goods,when no money and no third party is involved?

Consumers are less price sensitive when ________.

The airline and hospitality industries use ________,by which they offer discounted but limited early purchases,higher-priced late purchases,and the lowest rates on unsold inventory just before it expires.

In which of the following auctions does the auctioneer first announce a high price for a product and then slowly decreases the price until a bidder accepts?

Consumers are less price sensitive ________.

When examining products,consumers compare an observed price to an internal reference price they remember or an external frame of reference.

Briefly describe the different types of pricing objectives.

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Creating Long-term Loyalty Relationships

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning and Competing Effectively

Setting Product Strategy

Designing and Managing Services

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling

Managing Marketing in the Global Economy

Filters