Question 1

How did Walmart utilize a maximizing profit strategy?

Accepted Answer

In a bad economy,Walmart first tried to lower its prices to gain customers from competitors.Walmart then discovered that consumers were cross-shopping,thus many wealthier consumers were frequenting Walmart locations.Thus,Walmart changed its product mix to offer higher quality products for this segment.In addition,Walmart improved the checkout process and appearance of key store locations.

Question 2

Define price discrimination and explain its legality.

Accepted Answer

Price discrimination is the act of charging different customers different prices for the same product.Price discrimination is legal when it is offered to all of a certain group of end users.In addition,firms can charge different prices when certain market conditions are in play or goods are perishable.

Question 3

A(n)_____ strategy for a new product involves setting an initial price based on what the seller expects to charge throughout the product's life cycle.

Accepted Answer

A)  price skimming 
B)  loss leader 
C)  leader pricing 
D)  penetration pricing 
E)  everyday low price 
A)  price skimming 
B)  loss leader 
C)  leader pricing 
D)  penetration pricing 
E)  everyday low price E

Question 4

The Robinson-Patman Act:

Accepted Answer

A)  regulates how marketers advertise their products on television. 
B)  limits a seller's ability to charge different customers different prices for the same products. 
C)  deems unsupported claims on labels to be unfair competition. 
D)  restricts the amount of puffery utilized in marketing claims. 
E)  prohibits monopolies in the marketplace. 
A)  regulates how marketers advertise their products on television. 
B)  limits a seller's ability to charge different customers different prices for the same products. 
C)  deems unsupported claims on labels to be unfair competition. 
D)  restricts the amount of puffery utilized in marketing claims. 
E)  prohibits monopolies in the marketplace.

Question 5

_____ involves pricing one or more items low to get people into a store.

Accepted Answer

A)  Leader pricing 
B)  Bait-and-switch pricing 
C)  Demand backward pricing 
D)  Loss leader pricing 
E)  Premium pricing 
A)  Leader pricing 
B)  Bait-and-switch pricing 
C)  Demand backward pricing 
D)  Loss leader pricing 
E)  Premium pricing

Question 6

When firms assess the marketplace,indirect competitors and substitutes do not influence the pricing strategies of a firm because they do not carry the same merchandise.Thus,companies focus on direct competitors when making pricing decisions.

Accepted Answer

A) True 
 B)False

Question 7

_____ involves pricing one or more items below cost to get people into a store.

Accepted Answer

A)  Leader pricing 
B)  Bait-and-switch pricing 
C)  Demand backward pricing 
D)  Loss leader pricing 
E)  Premium pricing 
A)  Leader pricing 
B)  Bait-and-switch pricing 
C)  Demand backward pricing 
D)  Loss leader pricing 
E)  Premium pricing

Question 8

Leader pricing is legal.

Accepted Answer

A) True 
 B)False

Question 9

Cutting costs cannot be a(n)_____ if a company wants to maintain its image and position in the marketplace.

Accepted Answer

The answer of Cutting costs cannot be a(n)_____ if a...

Question 10

Bait-and-switch pricing occurs when a business tries to lure in customers with an incredibly _____.

Accepted Answer

The answer of Bait-and-switch pricing occurs when a business tries...

Question 11

What must a company do prior to pricing a product?

Accepted Answer

A company must determine its pricing obj

Question 12

How does the economy and government impact a firm's pricing decisions?

Accepted Answer

There are many different laws that influ

Question 13

Jeff owns a book company.It costs $10.00 to produce a new book and the company wants a 30% profit,so he charges $13.00 for the book.Jeff is using what type of pricing approach?

Accepted Answer

A)  Demand backward pricing 
B)  Cost-plus pricing 
C)  Forward pricing 
D)  Odd-even pricing 
E)  Prestige pricing 
A)  Demand backward pricing 
B)  Cost-plus pricing 
C)  Forward pricing 
D)  Odd-even pricing 
E)  Prestige pricing

Question 14

How do customers affect a firm's pricing decisions?

Accepted Answer

A firm is interested in how buyers will

Question 15

Price elastic refers to consumers who are very sensitive to price changes and buy _____ at _____ prices and _____ at _____ prices.

Accepted Answer

more; low;

Question 16

_____ involves pricing a product based on what customers are willing to pay for it and then creating the offering based on that price.

Accepted Answer

Demand bac

Question 17

Marketers who start with the price demanded by consumers and then create offerings to meet the price are utilizing which pricing strategy?

Accepted Answer

A)  Forward pricing 
B)  Demand backward pricing 
C)  Price lining 
D)  Premium pricing 
E)  Odd-even pricing 
A)  Forward pricing 
B)  Demand backward pricing 
C)  Price lining 
D)  Premium pricing 
E)  Odd-even pricing

Question 18

Online auction sites involve _____ and _____ prices online with buyers and sellers.

Accepted Answer

bidding; n

Question 19

Markups are a form of _____ pricing.

Accepted Answer

The answer of Markups are a form of _____ pricing....

Question 20

Maximizing sales is typically a short-term objective since profitability is not considered.

Accepted Answer

A) True 
 B)False

How did Walmart utilize a maximizing profit strategy?

Define price discrimination and explain its legality.

A(n)_____ strategy for a new product involves setting an initial price based on what the seller expects to charge throughout the product's life cycle.

The Robinson-Patman Act:

_____ involves pricing one or more items low to get people into a store.

When firms assess the marketplace,indirect competitors and substitutes do not influence the pricing strategies of a firm because they do not carry the same merchandise.Thus,companies focus on direct competitors when making pricing decisions.

_____ involves pricing one or more items below cost to get people into a store.

Leader pricing is legal.

Cutting costs cannot be a(n)_____ if a company wants to maintain its image and position in the marketplace.

Bait-and-switch pricing occurs when a business tries to lure in customers with an incredibly _____.

What must a company do prior to pricing a product?

How does the economy and government impact a firm's pricing decisions?

Jeff owns a book company.It costs $10.00 to produce a new book and the company wants a 30% profit,so he charges $13.00 for the book.Jeff is using what type of pricing approach?

How do customers affect a firm's pricing decisions?

Price elastic refers to consumers who are very sensitive to price changes and buy ___ at _ prices and _ at ___ prices.

_____ involves pricing a product based on what customers are willing to pay for it and then creating the offering based on that price.

Marketers who start with the price demanded by consumers and then create offerings to meet the price are utilizing which pricing strategy?

Online auction sites involve _ and _ prices online with buyers and sellers.

Markups are a form of _____ pricing.

Maximizing sales is typically a short-term objective since profitability is not considered.

What Is Marketing?

Strategic Planning

Consumer Behavior: How People Make Buying Decisions

Business Buying Behavior

Market Segmenting, Targeting, and Positioning

Creating Offerings

Developing and Managing Offerings

Using Marketing Channels to Create Value for Customers

Using Supply Chains to Create Value for Customers

Gathering and Using Information: Marketing Research and Market Intelligence

Integrated Marketing Communications and the Changing Media Landscape

Public Relations, Social Media, and Sponsorships

Professional Selling

Customer Satisfaction, Loyalty, and Empowerment

The Marketing Plan

Filters

Exam 15: Price,the Only Revenue Generator

How did Walmart utilize a maximizing profit strategy?

Define price discrimination and explain its legality.

A(n)_____ strategy for a new product involves setting an initial price based on what the seller expects to charge throughout the product's life cycle.

The Robinson-Patman Act:

_____ involves pricing one or more items low to get people into a store.

When firms assess the marketplace,indirect competitors and substitutes do not influence the pricing strategies of a firm because they do not carry the same merchandise.Thus,companies focus on direct competitors when making pricing decisions.

_____ involves pricing one or more items below cost to get people into a store.

Leader pricing is legal.

Cutting costs cannot be a(n)_____ if a company wants to maintain its image and position in the marketplace.

Bait-and-switch pricing occurs when a business tries to lure in customers with an incredibly _____.

What must a company do prior to pricing a product?

How does the economy and government impact a firm's pricing decisions?

Jeff owns a book company.It costs $10.00 to produce a new book and the company wants a 30% profit,so he charges $13.00 for the book.Jeff is using what type of pricing approach?

How do customers affect a firm's pricing decisions?

Price elastic refers to consumers who are very sensitive to price changes and buy _____ at _____ prices and _____ at _____ prices.

_____ involves pricing a product based on what customers are willing to pay for it and then creating the offering based on that price.

Marketers who start with the price demanded by consumers and then create offerings to meet the price are utilizing which pricing strategy?

Online auction sites involve _____ and _____ prices online with buyers and sellers.

Markups are a form of _____ pricing.

Maximizing sales is typically a short-term objective since profitability is not considered.

What Is Marketing?

Strategic Planning

Consumer Behavior: How People Make Buying Decisions

Business Buying Behavior

Market Segmenting, Targeting, and Positioning

Creating Offerings

Developing and Managing Offerings

Using Marketing Channels to Create Value for Customers

Using Supply Chains to Create Value for Customers

Gathering and Using Information: Marketing Research and Market Intelligence

Integrated Marketing Communications and the Changing Media Landscape

Public Relations, Social Media, and Sponsorships

Professional Selling

Customer Satisfaction, Loyalty, and Empowerment

The Marketing Plan

Filters

Price elastic refers to consumers who are very sensitive to price changes and buy ___ at _ prices and _ at ___ prices.

Online auction sites involve _ and _ prices online with buyers and sellers.