Question 1

What is predatory pricing?

Accepted Answer

Predatory pricing is the pract

Question 2

Newsweek ran a pricing experiment that involved setting different prices for its magazine in different cities and counting the number of units sold. After adjusting for factors like the population of the different cities, Newsweek could plot these prices and units to result in a:

Accepted Answer

A) demand curve. 
B) target return curve. 
C) consumer tastes curve. 
D) unit volume curve. 
A) demand curve. 
B) target return curve. 
C) consumer tastes curve. 
D) unit volume curve.

Question 3

Which of the following types of competitive markets is LEAST likely to need pricing objectives?

Accepted Answer

A) pure monopoly 
B) pure competition 
C) oligopoly 
D) monopolistic competition 
A) pure monopoly 
B) pure competition 
C) oligopoly 
D) monopolistic competition

Question 4

Most consumers realize the quality of diamonds varies, and most believe the higher the price of the diamond, the higher its quality. This is an example of price influencing the perception of overall quality, and_________ to consumers.

Accepted Answer

A) acceptable cost 
B) return on investment 
C) value 
D) perceptual investment 
A) acceptable cost 
B) return on investment 
C) value 
D) perceptual investment

Question 5

The three special adjustments to list or quoted price are:

Accepted Answer

A) discounts; allowances; geographical adjustments 
B) discounts; allowances; seasonal 
C) seasonal; allowances; geographical adjustments 
D) discounts; seasonal; geographical adjustments 
A) discounts; allowances; geographical adjustments 
B) discounts; allowances; seasonal 
C) seasonal; allowances; geographical adjustments 
D) discounts; seasonal; geographical adjustments

Question 6

Which of the following statements about geographical adjustments to price is correct?

Accepted Answer

A) Multiple-zone pricing is sometimes referred to as "postage-stamp" pricing. 
B) In FOB origin pricing, the seller selects the mode of transportation. 
C) Basing point pricing seems to have been used in industries where freight expenses are a significant part of the total cost to the buyer. 
D) In FOB with freight allowed pricing, the seller adds the transportation costs to the list price. 
A) Multiple-zone pricing is sometimes referred to as "postage-stamp" pricing. 
B) In FOB origin pricing, the seller selects the mode of transportation. 
C) Basing point pricing seems to have been used in industries where freight expenses are a significant part of the total cost to the buyer. 
D) In FOB with freight allowed pricing, the seller adds the transportation costs to the list price.

Question 7

When setting the prices for their smart TVs, VIZIO based its pricing strategy on:

Accepted Answer

A) Copying Sony's winning strategy 
B) Distributing with Costco and Sam's Club warehouses 
C) Affordable products with innovative features 
D) High-end features, high-end price 
A) Copying Sony's winning strategy 
B) Distributing with Costco and Sam's Club warehouses 
C) Affordable products with innovative features 
D) High-end features, high-end price

Question 8

You are president of a manufacturing unit of small electronic appliances. You want to reduce your break-even quantity. Other things equal, you can do this by:

Accepted Answer

A) reducing marginal revenue. 
B) increasing fixed cost. 
C) increasing the quantity sold, while keeping price unchanged. 
D) reducing unit variable cost. 
A) reducing marginal revenue. 
B) increasing fixed cost. 
C) increasing the quantity sold, while keeping price unchanged. 
D) reducing unit variable cost.

Question 9

GE has fixed costs of $13B and variable costs for the year of $8B. Their total costs are:

Accepted Answer

A) $5B 
B) $21B 
C) $13B 
D) there is not enough information to calculate 
A) $5B 
B) $21B 
C) $13B 
D) there is not enough information to calculate

Question 10

Rents, executive salaries, and insurance are examples of typical:

Accepted Answer

A) fixed costs. 
B) variable costs. 
C) dividends. 
D) liquidity payments. 
A) fixed costs. 
B) variable costs. 
C) dividends. 
D) liquidity payments.

Question 11

When Panera Bread opened Panera Cares Cafes, they implemented a pricing model that allowed consumers to pay what they wished for their items. The goal of this cafe was to still be:

Accepted Answer

A) profit maximizing 
B) profit minimizing 
C) self-sustaining 
D) a charity service 
A) profit maximizing 
B) profit minimizing 
C) self-sustaining 
D) a charity service

Question 12

Chico's sells women's sportswear. A simple tank top with the Chico's label costs $48. If you know you simply want a tank top, you can buy a tank top for $5 at a Family Dollar Store, but it won't have the Chico's label. What kind of demand-oriented approach to pricing is being used by this manufacturer?

Accepted Answer

A) prestige pricing 
B) experience curve pricing 
C) target market share pricing 
D) demand-backward pricing 
A) prestige pricing 
B) experience curve pricing 
C) target market share pricing 
D) demand-backward pricing

Question 13

All of the following statements about the Competition Act are true, except:

Accepted Answer

A) The Competition Act covers promotional allowances. 
B) The Competition Act allows price differentials to different customers under certain changing market conditions. 
C) It is easy to prove that price discrimination under the Competition Act has taken place. 
D) The Competition Act deals with price discrimination. 
A) The Competition Act covers promotional allowances. 
B) The Competition Act allows price differentials to different customers under certain changing market conditions. 
C) It is easy to prove that price discrimination under the Competition Act has taken place. 
D) The Competition Act deals with price discrimination.

Question 14

List four key factors used to estimate demand.

Accepted Answer

The answer of List four key factors used to estimate...

Question 15

Geographic adjustments are made by manufacturers or wholesalers to:

Accepted Answer

A) cover transportation costs. 
B) cover promotional costs. 
C) cover production costs. 
D) cover administrative costs. 
A) cover transportation costs. 
B) cover promotional costs. 
C) cover production costs. 
D) cover administrative costs.

Question 16

The pricing model in your text, has six distinct steps in the pricing process. Considering the following list of steps in setting prices: identify pricing objectives and constraints; estimate demand and revenue; determine cost, volume, and profit relationships; _______; set the list or quoted price; and make special adjustments to the list or quoted price.

Accepted Answer

A) raise initial capital 
B) select an approximate price level 
C) scan competitors for price lines of similar products or services 
D) select the appropriate pricing formula 
A) raise initial capital 
B) select an approximate price level 
C) scan competitors for price lines of similar products or services 
D) select the appropriate pricing formula

Question 17

Charging different prices to maximize revenue for a set amount of capacity at any given time is referred to as:

Accepted Answer

A) Demand backward pricing 
B) Skimming pricing 
C) Target pricing 
D) Yield management pricing 
A) Demand backward pricing 
B) Skimming pricing 
C) Target pricing 
D) Yield management pricing

Question 18

Manufacturers use seasonal discounts to:

Accepted Answer

A) "load up" their dealers. 
B) rid themselves of dated merchandise. 
C) entice dealers to purchase seasonal merchandise earlier in the selling season. 
D) prolong the peak seasonal selling season. 
A) "load up" their dealers. 
B) rid themselves of dated merchandise. 
C) entice dealers to purchase seasonal merchandise earlier in the selling season. 
D) prolong the peak seasonal selling season.

Question 19

For every ten pallets of watermelon a local grocery store purchases, the farm will include one pallet of cucumbers for free. This is an example of offering a(n):

Accepted Answer

A) flexible pricing policy. 
B) quantity discount. 
C) promotional allowance. 
D) payoff. 
A) flexible pricing policy. 
B) quantity discount. 
C) promotional allowance. 
D) payoff.

Question 20

Prices such as: $19.99, $29.99, and $39.99 are examples of:

Accepted Answer

A) incremental pricing 
B) odd-even pricing 
C) target pricing 
D) range-based pricing 
A) incremental pricing 
B) odd-even pricing 
C) target pricing 
D) range-based pricing

What is predatory pricing?

Newsweek ran a pricing experiment that involved setting different prices for its magazine in different cities and counting the number of units sold. After adjusting for factors like the population of the different cities, Newsweek could plot these prices and units to result in a:

Which of the following types of competitive markets is LEAST likely to need pricing objectives?

Most consumers realize the quality of diamonds varies, and most believe the higher the price of the diamond, the higher its quality. This is an example of price influencing the perception of overall quality, and_________ to consumers.

The three special adjustments to list or quoted price are:

Which of the following statements about geographical adjustments to price is correct?

When setting the prices for their smart TVs, VIZIO based its pricing strategy on:

You are president of a manufacturing unit of small electronic appliances. You want to reduce your break-even quantity. Other things equal, you can do this by:

GE has fixed costs of $13B and variable costs for the year of $8B. Their total costs are:

Rents, executive salaries, and insurance are examples of typical:

When Panera Bread opened Panera Cares Cafes, they implemented a pricing model that allowed consumers to pay what they wished for their items. The goal of this cafe was to still be:

All of the following statements about the Competition Act are true, except:

List four key factors used to estimate demand.

Geographic adjustments are made by manufacturers or wholesalers to:

Charging different prices to maximize revenue for a set amount of capacity at any given time is referred to as:

Manufacturers use seasonal discounts to:

For every ten pallets of watermelon a local grocery store purchases, the farm will include one pallet of cucumbers for free. This is an example of offering a(n):

Prices such as: $19.99, $29.99, and $39.99 are examples of:

Creating Customer Value, Relationships, and Experiences Through Marketing

Developing Successful Marketing Strategies

Scanning the Marketing Environment

Ethics and Social Responsibility for Sustainable Marketing

Consumer Behaviour

Understanding Organizations As Customers

Reaching Global Markets

Marketing Research: From Information to Action

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Managing Products and Brands

Managing Services

Managing Marketing Channels and Supply Chains

Retailing

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Personal Selling and Sales Management

Pulling It All Together: the Strategic Marketing Process

Using Social Media and Mobile Marketing to Connect With Consumers

Filters

Exam 13: Pricing Products and Services

What is predatory pricing?

Newsweek ran a pricing experiment that involved setting different prices for its magazine in different cities and counting the number of units sold. After adjusting for factors like the population of the different cities, Newsweek could plot these prices and units to result in a:

Which of the following types of competitive markets is LEAST likely to need pricing objectives?

Most consumers realize the quality of diamonds varies, and most believe the higher the price of the diamond, the higher its quality. This is an example of price influencing the perception of overall quality, and_________ to consumers.

The three special adjustments to list or quoted price are:

Which of the following statements about geographical adjustments to price is correct?

When setting the prices for their smart TVs, VIZIO based its pricing strategy on:

You are president of a manufacturing unit of small electronic appliances. You want to reduce your break-even quantity. Other things equal, you can do this by:

GE has fixed costs of $13B and variable costs for the year of $8B. Their total costs are:

Rents, executive salaries, and insurance are examples of typical:

When Panera Bread opened Panera Cares Cafes, they implemented a pricing model that allowed consumers to pay what they wished for their items. The goal of this cafe was to still be:

All of the following statements about the Competition Act are true, except:

List four key factors used to estimate demand.

Geographic adjustments are made by manufacturers or wholesalers to:

Charging different prices to maximize revenue for a set amount of capacity at any given time is referred to as:

Manufacturers use seasonal discounts to:

For every ten pallets of watermelon a local grocery store purchases, the farm will include one pallet of cucumbers for free. This is an example of offering a(n):

Prices such as: $19.99, $29.99, and $39.99 are examples of:

Creating Customer Value, Relationships, and Experiences Through Marketing

Developing Successful Marketing Strategies

Scanning the Marketing Environment

Ethics and Social Responsibility for Sustainable Marketing

Consumer Behaviour

Understanding Organizations As Customers

Reaching Global Markets

Marketing Research: From Information to Action

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Managing Products and Brands

Managing Services

Managing Marketing Channels and Supply Chains

Retailing

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Personal Selling and Sales Management

Pulling It All Together: the Strategic Marketing Process

Using Social Media and Mobile Marketing to Connect With Consumers

Filters