Question 1

Two types of new-product pricing are price skimming and product-line pricing.

Accepted Answer

A) True 
 B)False

Question 2

The effectiveness of demand-based pricing often depends on a marketer's ability to determine all the costs associated with the product.

Accepted Answer

A) True 
 B)False

Question 3

Department stores such as Kohl's and Macy's are interested in learning how much their competitors are charging for similar merchandise. Which of the following practices might these retailers utilize to identify competitors' prices?

Accepted Answer

A)  Employing comparative shoppers who systematically collect data on prices at competing stores 
B)  Stealing price lists from a display at a trade show 
C)  Hiring sales representatives from competitors' companies and asking them to share price information 
D)  Pretending to be a buyer and soliciting pricing information from the competitor 
A)  Employing comparative shoppers who systematically collect data on prices at competing stores 
B)  Stealing price lists from a display at a trade show 
C)  Hiring sales representatives from competitors' companies and asking them to share price information 
D)  Pretending to be a buyer and soliciting pricing information from the competitor

Question 4

Kendra has been doing research for a smartphone manufacturing company. She has just been reviewing the results of several focus groups and has found that for customers, value is a function of the product's

Accepted Answer

A)  quality attributes. 
B)  price and brand name. 
C)  price and durability. 
D)  quality and functional attributes. 
E)  quality relative to the quality of competing brands. 
A)  quality attributes. 
B)  price and brand name. 
C)  price and durability. 
D)  quality and functional attributes. 
E)  quality relative to the quality of competing brands.

Question 5

Some grocery stores collect data on competitive prices

Accepted Answer

A)  by calling their competitors. 
B)  on a quarterly basis. 
C)  through stores' purchase data. 
D)  from their resellers. 
E)  by using full-time comparison shoppers. 
A)  by calling their competitors. 
B)  on a quarterly basis. 
C)  through stores' purchase data. 
D)  from their resellers. 
E)  by using full-time comparison shoppers.

Question 6

Reference pricing is

Accepted Answer

A)  listing the manufacturer's suggested retail price on the price tag along with the store's lower price. 
B)  mentioning the price that other retailers charge for the same product on the display for the product. 
C)  using a consumer's internal perceptions of what the appropriate price should be to help price a firm's products. 
D)  pricing a product at a moderate level and positioning it next to a more expensive model or brand. 
E)  using prices in advertising so that customers will have a point of reference when they come to the retail facility. 
A)  listing the manufacturer's suggested retail price on the price tag along with the store's lower price. 
B)  mentioning the price that other retailers charge for the same product on the display for the product. 
C)  using a consumer's internal perceptions of what the appropriate price should be to help price a firm's products. 
D)  pricing a product at a moderate level and positioning it next to a more expensive model or brand. 
E)  using prices in advertising so that customers will have a point of reference when they come to the retail facility.

Question 7

The fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ____ pricing.

Accepted Answer

A)  price-line 
B)  promotional 
C)  professional 
D)  differential 
E)  psychological 
A)  price-line 
B)  promotional 
C)  professional 
D)  differential 
E)  psychological

Question 8

When Sharp first introduced its line of graphing calculators, it set the price quite high; it has lowered the price as competitors have entered the market. The pricing strategy initially used by Sharp is called

Accepted Answer

A)  customary pricing. 
B)  odd-even pricing. 
C)  penetration pricing. 
D)  price skimming. 
E)  prestige pricing. 
A)  customary pricing. 
B)  odd-even pricing. 
C)  penetration pricing. 
D)  price skimming. 
E)  prestige pricing.

Question 9

When determining markup as a percentage of cost, divide the markup amount by

Accepted Answer

A)  price. 
B)  cost. 
C)  quantity. 
D)  revenue. 
E)  100. 
A)  price. 
B)  cost. 
C)  quantity. 
D)  revenue. 
E)  100.

Question 10

Competitors' prices, along with the marketing variables they emphasize, are determining factors in

Accepted Answer

A)  the instability of prices in a particular industry. 
B)  using markup pricing for consumer goods. 
C)  how much marketing research a firm needs to collect. 
D)  using differential pricing to demonstrate quality differences. 
E)  how important price will be to customers. 
A)  the instability of prices in a particular industry. 
B)  using markup pricing for consumer goods. 
C)  how much marketing research a firm needs to collect. 
D)  using differential pricing to demonstrate quality differences. 
E)  how important price will be to customers.

Question 11

Which of the following statements about markup pricing is correct?

Accepted Answer

A)  The use of similar markups reduces price competition. 
B)  Markup pricing is inconvenient to use. 
C)  Markup pricing results in a high price when demand is high and a low price when demand is low. 
D)  Markup pricing is a demand-based pricing method. 
E)  Using markups makes pricing a time-consuming, difficult process. 
A)  The use of similar markups reduces price competition. 
B)  Markup pricing is inconvenient to use. 
C)  Markup pricing results in a high price when demand is high and a low price when demand is low. 
D)  Markup pricing is a demand-based pricing method. 
E)  Using markups makes pricing a time-consuming, difficult process.

Question 12

A major reason why retailers use markup pricing is that it is convenient.

Accepted Answer

A) True 
 B)False

Question 13

The role played by attitudes toward price in the overall evaluation of the marketing mix is a minor concern in identifying the target market.

Accepted Answer

A) True 
 B)False

Question 14

A problem associated with ____ is that consumers can predict when prices will be lowered and delay purchases until that time.

Accepted Answer

A)  random discounting 
B)  penetration pricing 
C)  reference pricing 
D)  everyday low pricing 
E)  periodic discounting 
A)  random discounting 
B)  penetration pricing 
C)  reference pricing 
D)  everyday low pricing 
E)  periodic discounting

Question 15

Differential pricing means different buyers pay different prices for the same quality and quantity of product.

Accepted Answer

A) True 
 B)False

Question 16

A manager at Kohl's discovers that Macy's has reduced the price of its children's Levi's from $31.99 to $24.99, according to an advertisement in the Sunday newspaper. She immediately phones her store and instructs the salesperson on duty to put a sign up next to their children's Levi's that reads, "SALE: $24.99." This is an example of what pricing strategy?

Accepted Answer

A)  Secondary-market pricing 
B)  Bait-pricing 
C)  Reference pricing 
D)  Random discounting 
E)  Comparison discounting 
A)  Secondary-market pricing 
B)  Bait-pricing 
C)  Reference pricing 
D)  Random discounting 
E)  Comparison discounting

Question 17

The six stages of setting prices should always be followed if prices are to be set correctly.

Accepted Answer

A) True 
 B)False

Question 18

If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should use

Accepted Answer

A)  penetration pricing. 
B)  random discounting. 
C)  captive pricing. 
D)  price skimming. 
E)  everyday low prices. 
A)  penetration pricing. 
B)  random discounting. 
C)  captive pricing. 
D)  price skimming. 
E)  everyday low prices.

Question 19

When an organization sets a number of prices for selected groups of merchandise, this is commonly referred to as

Accepted Answer

A)  prestige pricing. 
B)  price lining. 
C)  customary pricing. 
D)  odd-even pricing. 
E)  ethical pricing. 
A)  prestige pricing. 
B)  price lining. 
C)  customary pricing. 
D)  odd-even pricing. 
E)  ethical pricing.

Question 20

Maintaining a certain market share, meeting competitors' prices, maintaining a favorable image, and achieving price stability are all associated with a ____ pricing objective.

Accepted Answer

A)  product quality 
B)  market share 
C)  survival 
D)  profit 
E)  status quo 
A)  product quality 
B)  market share 
C)  survival 
D)  profit 
E)  status quo

Two types of new-product pricing are price skimming and product-line pricing.

The effectiveness of demand-based pricing often depends on a marketer's ability to determine all the costs associated with the product.

Department stores such as Kohl's and Macy's are interested in learning how much their competitors are charging for similar merchandise. Which of the following practices might these retailers utilize to identify competitors' prices?

Kendra has been doing research for a smartphone manufacturing company. She has just been reviewing the results of several focus groups and has found that for customers, value is a function of the product's

Some grocery stores collect data on competitive prices

Reference pricing is

The fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ____ pricing.

When Sharp first introduced its line of graphing calculators, it set the price quite high; it has lowered the price as competitors have entered the market. The pricing strategy initially used by Sharp is called

When determining markup as a percentage of cost, divide the markup amount by

Competitors' prices, along with the marketing variables they emphasize, are determining factors in

Which of the following statements about markup pricing is correct?

A major reason why retailers use markup pricing is that it is convenient.

The role played by attitudes toward price in the overall evaluation of the marketing mix is a minor concern in identifying the target market.

A problem associated with ____ is that consumers can predict when prices will be lowered and delay purchases until that time.

Differential pricing means different buyers pay different prices for the same quality and quantity of product.

The six stages of setting prices should always be followed if prices are to be set correctly.

If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should use

When an organization sets a number of prices for selected groups of merchandise, this is commonly referred to as

Maintaining a certain market share, meeting competitors' prices, maintaining a favorable image, and achieving price stability are all associated with a ____ pricing objective.

An Overview of Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

Marketing Research and Information Systems

Target Markets, Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product Concepts, Branding, and Packaging

Developing and Managing Products

Services Marketing

Marketing Channels and Supply Chain Management

Retailing, Direct Marketing and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Pricing Concepts

Filters

Exam 20: Setting Prices

Two types of new-product pricing are price skimming and product-line pricing.

The effectiveness of demand-based pricing often depends on a marketer's ability to determine all the costs associated with the product.

Department stores such as Kohl's and Macy's are interested in learning how much their competitors are charging for similar merchandise. Which of the following practices might these retailers utilize to identify competitors' prices?

Kendra has been doing research for a smartphone manufacturing company. She has just been reviewing the results of several focus groups and has found that for customers, value is a function of the product's

Some grocery stores collect data on competitive prices

Reference pricing is

The fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ____ pricing.

When Sharp first introduced its line of graphing calculators, it set the price quite high; it has lowered the price as competitors have entered the market. The pricing strategy initially used by Sharp is called

When determining markup as a percentage of cost, divide the markup amount by

Competitors' prices, along with the marketing variables they emphasize, are determining factors in

Which of the following statements about markup pricing is correct?

A major reason why retailers use markup pricing is that it is convenient.

The role played by attitudes toward price in the overall evaluation of the marketing mix is a minor concern in identifying the target market.

A problem associated with ____ is that consumers can predict when prices will be lowered and delay purchases until that time.

Differential pricing means different buyers pay different prices for the same quality and quantity of product.

The six stages of setting prices should always be followed if prices are to be set correctly.

If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should use

When an organization sets a number of prices for selected groups of merchandise, this is commonly referred to as

Maintaining a certain market share, meeting competitors' prices, maintaining a favorable image, and achieving price stability are all associated with a ____ pricing objective.

An Overview of Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

Marketing Research and Information Systems

Target Markets, Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product Concepts, Branding, and Packaging

Developing and Managing Products

Services Marketing

Marketing Channels and Supply Chain Management

Retailing, Direct Marketing and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Pricing Concepts

Filters