Question 1

Which of the following is a requirement for setting pricing objectives?

Accepted Answer

A)  The objectives should be short-term oriented. 
B)  There should be only one pricing objective. 
C)  An evaluation of competitors' prices should be made. 
D)  The cost structure should be identified. 
E)  The objectives should be explicitly stated. 
A)  The objectives should be short-term oriented. 
B)  There should be only one pricing objective. 
C)  An evaluation of competitors' prices should be made. 
D)  The cost structure should be identified. 
E)  The objectives should be explicitly stated.

Question 2

Pricing whereby the buyer absorbs all or part of the freight costs is freight absorption pricing.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following prohibits price discrimination that lessens competition among wholesalers and retailers?

Accepted Answer

A)  Sherman Antitrust Act 
B)  Robinson-Patman Act 
C)  Lanham Trademark Act 
D)  Federal Trade Commission Act 
E)  Wheeler-Lea Act 
A)  Sherman Antitrust Act 
B)  Robinson-Patman Act 
C)  Lanham Trademark Act 
D)  Federal Trade Commission Act 
E)  Wheeler-Lea Act

Question 4

Some stores employ comparison shoppers to learn what prices their competitors are charging.

Accepted Answer

A) True 
 B)False

Question 5

Compare and contrast price skimming and penetration pricing.

Accepted Answer

Price skimming is the strategy of chargi

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Competition-based pricing is

Accepted Answer

A)  used when costs and revenues are secondary to competitors' prices. 
B)  not useful as a method of increasing market share. 
C)  not useful if the competing products are homogeneous. 
D)  not able to increase sales. 
E)  used when competing products are heterogeneous. 
A)  used when costs and revenues are secondary to competitors' prices. 
B)  not useful as a method of increasing market share. 
C)  not useful if the competing products are homogeneous. 
D)  not able to increase sales. 
E)  used when competing products are heterogeneous.

Question 8

The Highland Racquet Club found that with annual fixed costs of $60,000, its breakeven point is 2,000 members when the membership charge is $60 per person per year. What is the variable cost per person for Highland?

Accepted Answer

A)  $45 
B)  $50 
C)  $30 
D)  $25 
E)  $40 
A)  $45 
B)  $50 
C)  $30 
D)  $25 
E)  $40

Question 9

The way that pricing is used in the marketing mix will influence the determination of the final price.

Accepted Answer

A) True 
 B)False

Question 10

Explain the difference between cost-plus and markup pricing.

Accepted Answer

With cost-plus pricing , the seller's co

Question 11

Identify and describe six types of psychological pricing.

Accepted Answer

The six types of psychological pricing a

Question 12

The firm should produce the quantity at which marginal revenue and marginal cost are equal.

Accepted Answer

A) True 
 B)False

Question 13

ACE Electronics introduces a new voice-activated personal computer that no longer requires a keyboard. ACE charges the high price of $11,000 per unit, thus generating large profits because it has a 20 percent market share. ACE's major problem in the future will most likely be

Accepted Answer

A)  survival. 
B)  cash flow. 
C)  competition. 
D)  return on investment. 
E)  profit. 
A)  survival. 
B)  cash flow. 
C)  competition. 
D)  return on investment. 
E)  profit.

Question 14

Knowing the target market's evaluation of price allows the marketer to know how much emphasis to place on price and how to price a product relative to competition.

Accepted Answer

A) True 
 B)False

Question 15

If the terms of a business exchange are 2/10 net 30, this means that the transaction

Accepted Answer

A)  involves a cumulative discount if paid in 30 days. 
B)  involves a noncumulative discount. 
C)  offers a discount if the buyer lives within a ten-mile radius. 
D)  price does not include the cost of freight. 
E)  involves a cash discount if paid within ten days. 
A)  involves a cumulative discount if paid in 30 days. 
B)  involves a noncumulative discount. 
C)  offers a discount if the buyer lives within a ten-mile radius. 
D)  price does not include the cost of freight. 
E)  involves a cash discount if paid within ten days.

Question 16

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 17

Which of the following products is most likely to involve personal selling?

Accepted Answer

A)  Blenders at a department store 
B)  Riding lawn mowers 
C)  Kindle Fire 
D)  Picture frames at a hobby supply store 
E)  Footballs at a sporting goods store 
A)  Blenders at a department store 
B)  Riding lawn mowers 
C)  Kindle Fire 
D)  Picture frames at a hobby supply store 
E)  Footballs at a sporting goods store

Question 18

All of the following are psychological techniques except

Accepted Answer

A)  customary pricing. 
B)  bundle pricing. 
C)  reference pricing. 
D)  odd-number pricing. 
E)  price skimming. 
A)  customary pricing. 
B)  bundle pricing. 
C)  reference pricing. 
D)  odd-number pricing. 
E)  price skimming.

Question 19

Knowing the target market's evaluation of price allows the marketer to know how much emphasis to place on price and how to price a product relative to competition.

Accepted Answer

A) True 
 B)False

Question 20

You are the head of pricing strategy for your firm and you are very excited about a new point-of-sale system that has just been installed in all your firm's retail outlets. The system is a state-of-the-art, real-time information system that captures the details of every sale made in your retail outlets. Now, you will have up-to-the-minute data on sales volume trends and performances for your entire product line. You plan to use this data to set prices based on these volume trends.
Which of the following basis for pricing are you intending to use?

Accepted Answer

A)  Markup pricing 
B)  Competition-based pricing 
C)  Demand-based pricing 
D)  Cost-based pricing 
E)  Cost-plus pricing 
A)  Markup pricing 
B)  Competition-based pricing 
C)  Demand-based pricing 
D)  Cost-based pricing 
E)  Cost-plus pricing

Which of the following is a requirement for setting pricing objectives?

Pricing whereby the buyer absorbs all or part of the freight costs is freight absorption pricing.

Which of the following prohibits price discrimination that lessens competition among wholesalers and retailers?

Some stores employ comparison shoppers to learn what prices their competitors are charging.

Compare and contrast price skimming and penetration pricing.

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

Competition-based pricing is

The Highland Racquet Club found that with annual fixed costs of $60,000, its breakeven point is 2,000 members when the membership charge is $60 per person per year. What is the variable cost per person for Highland?

The way that pricing is used in the marketing mix will influence the determination of the final price.

Explain the difference between cost-plus and markup pricing.

Identify and describe six types of psychological pricing.

The firm should produce the quantity at which marginal revenue and marginal cost are equal.

ACE Electronics introduces a new voice-activated personal computer that no longer requires a keyboard. ACE charges the high price of $11,000 per unit, thus generating large profits because it has a 20 percent market share. ACE's major problem in the future will most likely be

Knowing the target market's evaluation of price allows the marketer to know how much emphasis to place on price and how to price a product relative to competition.

If the terms of a business exchange are 2/10 net 30, this means that the transaction

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

Which of the following products is most likely to involve personal selling?

All of the following are psychological techniques except

Knowing the target market's evaluation of price allows the marketer to know how much emphasis to place on price and how to price a product relative to competition.

Customer-Driven Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment, Social Responsibility, and Ethics

Marketing Research and Information Systems

Target Market Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product, Branding, and Packing Concepts

Developing and Managing Goods and Services

Marketing Channels and Supply-Chain Management

Retailing, Direct Marketing, and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Filters

Exam 12: Pricing Concepts and Management

Which of the following is a requirement for setting pricing objectives?

Pricing whereby the buyer absorbs all or part of the freight costs is freight absorption pricing.

Which of the following prohibits price discrimination that lessens competition among wholesalers and retailers?

Some stores employ comparison shoppers to learn what prices their competitors are charging.

Compare and contrast price skimming and penetration pricing.

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

Competition-based pricing is

The Highland Racquet Club found that with annual fixed costs of $60,000, its breakeven point is 2,000 members when the membership charge is $60 per person per year. What is the variable cost per person for Highland?

The way that pricing is used in the marketing mix will influence the determination of the final price.

Explain the difference between cost-plus and markup pricing.

Identify and describe six types of psychological pricing.

The firm should produce the quantity at which marginal revenue and marginal cost are equal.

ACE Electronics introduces a new voice-activated personal computer that no longer requires a keyboard. ACE charges the high price of $11,000 per unit, thus generating large profits because it has a 20 percent market share. ACE's major problem in the future will most likely be

Knowing the target market's evaluation of price allows the marketer to know how much emphasis to place on price and how to price a product relative to competition.

If the terms of a business exchange are 2/10 net 30, this means that the transaction

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

Which of the following products is most likely to involve personal selling?

All of the following are psychological techniques except

Knowing the target market's evaluation of price allows the marketer to know how much emphasis to place on price and how to price a product relative to competition.

Customer-Driven Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment, Social Responsibility, and Ethics

Marketing Research and Information Systems

Target Market Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product, Branding, and Packing Concepts

Developing and Managing Goods and Services

Marketing Channels and Supply-Chain Management

Retailing, Direct Marketing, and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Filters