Question 1

State laws that put a lower limit on wholesale and retail prices are called _____.In states that have these laws,selling below cost is illegal.

Accepted Answer

A) unfair trade practice acts 
B) price floor laws 
C) protectionism acts 
D) transparency laws 
E) price edicts 
A) unfair trade practice acts 
B) price floor laws 
C) protectionism acts 
D) transparency laws 
E) price edicts

Question 2

All pricing objectives have trade-offs that managers must weigh.

Accepted Answer

A) True 
 B)False

Question 3

Odd-even pricing is also called:

Accepted Answer

A) psychological pricing. 
B) 1-2 pricing. 
C) bait pricing. 
D) price bundling. 
E) two-part pricing. 
A) psychological pricing. 
B) 1-2 pricing. 
C) bait pricing. 
D) price bundling. 
E) two-part pricing.

Question 4

A price tactic that requires the purchaser to absorb the freight costs from the shipping point is called _____.In this case,the farther buyers are from sellers,the more they pay,because transportation costs generally increase with the distance merchandise is shipped.

Accepted Answer

A) basing-point pricing 
B) zone pricing 
C) uniform delivered pricing 
D) freight absorption pricing 
E) FOB origin pricing 
A) basing-point pricing 
B) zone pricing 
C) uniform delivered pricing 
D) freight absorption pricing 
E) FOB origin pricing

Question 5

In 2008,United Airlines and American Airlines disclosed settlements in a class-action lawsuit over allegations of airfreight price fixing.This means the companies:

Accepted Answer

A) tried to charge fees for airfreight that were below costs. 
B) charged customers different amounts for the same shipments. 
C) agreed on the price they would charge customers for airfreight. 
D) used uniform geographic pricing. 
E) created an artificial demand for shipping. 
A) tried to charge fees for airfreight that were below costs. 
B) charged customers different amounts for the same shipments. 
C) agreed on the price they would charge customers for airfreight. 
D) used uniform geographic pricing. 
E) created an artificial demand for shipping.

Question 6

Post makes several varieties of cereals.In promoting this product line,Post offers a 50-cents-off coupon that can be used to purchase any of its cereals.Therefore,Post must consider _____ when pricing its cereals.

Accepted Answer

A) joint costs 
B) differential costs 
C) bundling costs 
D) potential (or basing)costs 
E) factorial costs 
A) joint costs 
B) differential costs 
C) bundling costs 
D) potential (or basing)costs 
E) factorial costs

Question 7

Why is price lining a valuable tactic for marketing managers?

Accepted Answer

A) Price lining results in a greater inventory carrying charge. 
B) It reduces confusion for its customers. 
C) A company that uses price lining has more price markdowns and greater markup. 
D) The price lining strategy allows the company to gain brand loyalty from its targeted segments. 
E) Price lining tends to confuse customers and requires them to listen closely to the salesperson's pitch. 
A) Price lining results in a greater inventory carrying charge. 
B) It reduces confusion for its customers. 
C) A company that uses price lining has more price markdowns and greater markup. 
D) The price lining strategy allows the company to gain brand loyalty from its targeted segments. 
E) Price lining tends to confuse customers and requires them to listen closely to the salesperson's pitch.

Question 8

Which type of pricing means pricing at odd-numbered prices to connote bargains and pricing at even-numbered prices to imply quality?

Accepted Answer

A) Bait pricing 
B) Price bundling 
C) 1-2 pricing 
D) Odd-even pricing 
E) Two-part pricing 
A) Bait pricing 
B) Price bundling 
C) 1-2 pricing 
D) Odd-even pricing 
E) Two-part pricing

Question 9

Geographically dispersed sellers often result in significant freight costs.Name and describe the five types of geographic pricing tactics that can be selected by a marketing manager to moderate the impact of freight costs on its more dispersed customers.For each tactic defined,specify the circumstances that would prompt the selection of that geographic pricing tactic.

Accepted Answer

FOB ORIGIN PRICING.This price tactic req

State laws that put a lower limit on wholesale and retail prices are called _____.In states that have these laws,selling below cost is illegal.

All pricing objectives have trade-offs that managers must weigh.

Odd-even pricing is also called:

A price tactic that requires the purchaser to absorb the freight costs from the shipping point is called _____.In this case,the farther buyers are from sellers,the more they pay,because transportation costs generally increase with the distance merchandise is shipped.

In 2008,United Airlines and American Airlines disclosed settlements in a class-action lawsuit over allegations of airfreight price fixing.This means the companies:

Post makes several varieties of cereals.In promoting this product line,Post offers a 50-cents-off coupon that can be used to purchase any of its cereals.Therefore,Post must consider _____ when pricing its cereals.

Why is price lining a valuable tactic for marketing managers?

Which type of pricing means pricing at odd-numbered prices to connote bargains and pricing at even-numbered prices to imply quality?

An Overview of Marketing

Strategic Planning for Competitive Advantage

Ethics and Social Responsibility

The Marketing Environment

Developing a Global Vision

Consumer Decision Making

Business Marketing

Segmenting and Targeting Markets

Decision Support Systems and Marketing Research

Product Concepts

Developing and Managing Products

Services and Nonprofit Organization Marketing

Marketing Channels

Supply Chain Management

Retailing

Integrated Marketing Communications

Advertising and Public Relations

Sales Promotion and Personal Selling

Pricing Concepts

Customer Relationship Management Crm

Social Media and Marketing

Filters

Exam 20: Setting the Right Price

State laws that put a lower limit on wholesale and retail prices are called _____.In states that have these laws,selling below cost is illegal.

All pricing objectives have trade-offs that managers must weigh.

Odd-even pricing is also called:

A price tactic that requires the purchaser to absorb the freight costs from the shipping point is called _____.In this case,the farther buyers are from sellers,the more they pay,because transportation costs generally increase with the distance merchandise is shipped.

In 2008,United Airlines and American Airlines disclosed settlements in a class-action lawsuit over allegations of airfreight price fixing.This means the companies:

Post makes several varieties of cereals.In promoting this product line,Post offers a 50-cents-off coupon that can be used to purchase any of its cereals.Therefore,Post must consider _____ when pricing its cereals.

Why is price lining a valuable tactic for marketing managers?

Which type of pricing means pricing at odd-numbered prices to connote bargains and pricing at even-numbered prices to imply quality?

An Overview of Marketing

Strategic Planning for Competitive Advantage

Ethics and Social Responsibility

The Marketing Environment

Developing a Global Vision

Consumer Decision Making

Business Marketing

Segmenting and Targeting Markets

Decision Support Systems and Marketing Research

Product Concepts

Developing and Managing Products

Services and Nonprofit Organization Marketing

Marketing Channels

Supply Chain Management

Retailing

Integrated Marketing Communications

Advertising and Public Relations

Sales Promotion and Personal Selling

Pricing Concepts

Customer Relationship Management Crm

Social Media and Marketing

Filters