Question 1

Which of the following pricing strategies often results in a retailer losing money on the product?

Accepted Answer

A)  Price leader 
B)  Psychological discounting 
C)  Penetration pricing 
D)  Special-event pricing 
E)  Ethical pricing 
A)  Price leader 
B)  Psychological discounting 
C)  Penetration pricing 
D)  Special-event pricing 
E)  Ethical pricing

Question 2

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 3

Identify and describe the major types of discounts used for business markets. Then explain the reasons for using each type.

Accepted Answer

The major types of discounts include: tr

Question 4

Amtrak is considering two pricing strategies for its service. One is to price its train tickets so that it is less expensive to travel on weekends than during the week when there is heavy business travel, which illustrates ____ pricing. The second is to price its train tickets so that the further away the travel date, the greater the discount, which is best described as ___

Accepted Answer

A)  demand-based; secondary market pricing. 
B)  demand-based; differential pricing. 
C)  demand-based; periodic discounting. 
D)  cost-plus; secondary markup. 
E)  cost-plus; periodic discounting. 
A)  demand-based; secondary market pricing. 
B)  demand-based; differential pricing. 
C)  demand-based; periodic discounting. 
D)  cost-plus; secondary markup. 
E)  cost-plus; periodic discounting.

Question 5

If PepsiCo sets its twelve-pack price to match the price charged by Coca-Cola, Pepsi is using which of the following pricing methods?

Accepted Answer

A)  Demand-based 
B)  Cost-based 
C)  Reference pricing 
D)  Competition-based 
E)  Price leader 
A)  Demand-based 
B)  Cost-based 
C)  Reference pricing 
D)  Competition-based 
E)  Price leader

Question 6

When consumers are making do with less expensive products and shopping more selectively, manufacturers and retailers must focus on the ____ of their products.

Accepted Answer

A)  price 
B)  quality 
C)  availability 
D)  value 
E)  image 
A)  price 
B)  quality 
C)  availability 
D)  value 
E)  image

Question 7

A retailer offers 20 percent off prices at different times during the year. There doesn't seem to be any pattern or system as to when the discounts occur. The retailer is using:

Accepted Answer

A)  random discounting. 
B)  odd-number pricing. 
C)  periodic discounting. 
D)  price skimming . 
E)  psychological pricing. 
A)  random discounting. 
B)  odd-number pricing. 
C)  periodic discounting. 
D)  price skimming . 
E)  psychological pricing.

Question 8

Since Victoria's Secret has decided to use nonprice competition, it distinguishes its brand through all but which of the following?

Accepted Answer

A)  distinctive product features. 
B)  exceptional service. 
C)  rebates. 
D)  variety and selection. 
E)  product quality and style. 
A)  distinctive product features. 
B)  exceptional service. 
C)  rebates. 
D)  variety and selection. 
E)  product quality and style.

Question 9

Channel member expectations play no part in a firm's pricing decisions.

Accepted Answer

A) True 
 B)False

Question 10

If Seagram's marketers found that the firm's Crown Royal bourbon was a prestige product and raised its price, which of the following would most likely happen?

Accepted Answer

A)  The quantity demanded would immediately fall. 
B)  The quantity demanded would always increase. 
C)  Above some price level, the quantity demanded would begin to decrease. 
D)  The demand curve for the product would always shift to the right. 
E)  The demand curve for the product would always shift to the left. 
A)  The quantity demanded would immediately fall. 
B)  The quantity demanded would always increase. 
C)  Above some price level, the quantity demanded would begin to decrease. 
D)  The demand curve for the product would always shift to the right. 
E)  The demand curve for the product would always shift to the left.

Question 11

The three primary bases for developing prices are

Accepted Answer

A)  profit, demand, and competition. 
B)  supply, demand, and marketing objectives. 
C)  demand, competition, and cost. 
D)  markup, cost, and cost-plus. 
E)  negotiation, periodicity, and randomness. 
A)  profit, demand, and competition. 
B)  supply, demand, and marketing objectives. 
C)  demand, competition, and cost. 
D)  markup, cost, and cost-plus. 
E)  negotiation, periodicity, and randomness.

Question 12

To attract customers into a store, Safeway advertises its milk at less than cost, hoping that customers will purchase other groceries as well. This pricing strategy is called

Accepted Answer

A)  price lining. 
B)  special-event pricing. 
C)  differential pricing. 
D)  comparison discounting. 
E)  price leader pricing. 
A)  price lining. 
B)  special-event pricing. 
C)  differential pricing. 
D)  comparison discounting. 
E)  price leader pricing.

Question 13

French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night. This is an indication that suites at this hotel are apparently an example of a(n) ____ product.

Accepted Answer

A)  reverse-demand 
B)  inferior 
C)  standard 
D)  secondary-demand 
E)  prestige 
A)  reverse-demand 
B)  inferior 
C)  standard 
D)  secondary-demand 
E)  prestige

Question 14

Showing a product's price along with its previous price, the price of a competing brand, or the price at another retail outlet is called

Accepted Answer

A)  competition-based pricing. 
B)  reference pricing. 
C)  comparison discounting. 
D)  captive pricing. 
E)  psychological pricing. 
A)  competition-based pricing. 
B)  reference pricing. 
C)  comparison discounting. 
D)  captive pricing. 
E)  psychological pricing.

Question 15

Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of a ____ discount.

Accepted Answer

A)  quantity 
B)  cash 
C)  seasonal 
D)  trade 
E)  complementary 
A)  quantity 
B)  cash 
C)  seasonal 
D)  trade 
E)  complementary

Question 16

When establishing prices, a marketer's first step is to

Accepted Answer

A)  determine demand. 
B)  develop pricing objectives. 
C)  select a pricing policy. 
D)  evaluate competitors' prices. 
E)  determine a pricing method. 
A)  determine demand. 
B)  develop pricing objectives. 
C)  select a pricing policy. 
D)  evaluate competitors' prices. 
E)  determine a pricing method.

Question 17

Penetration pricing is one new-product pricing approach that provides the most flexible introductory price.

Accepted Answer

A) True 
 B)False

Question 18

What are the differences among value-conscious, price-conscious, and prestige-sensitive customers?

Accepted Answer

Buyers can be characterized according to

Question 19

All of the following are pricing strategies used by companies wishing to encourage purchases based on consumers' emotional responses  except

Accepted Answer

A)  reference pricing. 
B)  bundle pricing . 
C)  odd-number pricing. 
D)  multiple-unit  pricing. 
E)  penetration pricing. 
A)  reference pricing. 
B)  bundle pricing . 
C)  odd-number pricing. 
D)  multiple-unit  pricing. 
E)  penetration pricing.

Question 20

A price developed in the consumer's mind through experience with the product is called a(n)

Accepted Answer

A)  external reference price. 
B)  value-price guideline. 
C)  frame of reference. 
D)  internalized price. 
E)  internal reference price. 
A)  external reference price. 
B)  value-price guideline. 
C)  frame of reference. 
D)  internalized price. 
E)  internal reference price.

Which of the following pricing strategies often results in a retailer losing money on the product?

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

Identify and describe the major types of discounts used for business markets. Then explain the reasons for using each type.

If PepsiCo sets its twelve-pack price to match the price charged by Coca-Cola, Pepsi is using which of the following pricing methods?

When consumers are making do with less expensive products and shopping more selectively, manufacturers and retailers must focus on the ____ of their products.

A retailer offers 20 percent off prices at different times during the year. There doesn't seem to be any pattern or system as to when the discounts occur. The retailer is using:

Since Victoria's Secret has decided to use nonprice competition, it distinguishes its brand through all but which of the following?

Channel member expectations play no part in a firm's pricing decisions.

If Seagram's marketers found that the firm's Crown Royal bourbon was a prestige product and raised its price, which of the following would most likely happen?

The three primary bases for developing prices are

To attract customers into a store, Safeway advertises its milk at less than cost, hoping that customers will purchase other groceries as well. This pricing strategy is called

French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night. This is an indication that suites at this hotel are apparently an example of a(n) ____ product.

Showing a product's price along with its previous price, the price of a competing brand, or the price at another retail outlet is called

Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of a ____ discount.

When establishing prices, a marketer's first step is to

Penetration pricing is one new-product pricing approach that provides the most flexible introductory price.

What are the differences among value-conscious, price-conscious, and prestige-sensitive customers?

All of the following are pricing strategies used by companies wishing to encourage purchases based on consumers' emotional responses except

A price developed in the consumer's mind through experience with the product is called a(n)

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 pricing strategies often results in a retailer losing money on the product?

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

Identify and describe the major types of discounts used for business markets. Then explain the reasons for using each type.

If PepsiCo sets its twelve-pack price to match the price charged by Coca-Cola, Pepsi is using which of the following pricing methods?

When consumers are making do with less expensive products and shopping more selectively, manufacturers and retailers must focus on the ____ of their products.

A retailer offers 20 percent off prices at different times during the year. There doesn't seem to be any pattern or system as to when the discounts occur. The retailer is using:

Since Victoria's Secret has decided to use nonprice competition, it distinguishes its brand through all but which of the following?

Channel member expectations play no part in a firm's pricing decisions.

If Seagram's marketers found that the firm's Crown Royal bourbon was a prestige product and raised its price, which of the following would most likely happen?

The three primary bases for developing prices are

To attract customers into a store, Safeway advertises its milk at less than cost, hoping that customers will purchase other groceries as well. This pricing strategy is called

French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night. This is an indication that suites at this hotel are apparently an example of a(n) ____ product.

Showing a product's price along with its previous price, the price of a competing brand, or the price at another retail outlet is called

Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of a ____ discount.

When establishing prices, a marketer's first step is to

Penetration pricing is one new-product pricing approach that provides the most flexible introductory price.

What are the differences among value-conscious, price-conscious, and prestige-sensitive customers?

All of the following are pricing strategies used by companies wishing to encourage purchases based on consumers' emotional responses except

A price developed in the consumer's mind through experience with the product is called a(n)

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