Question 1

A well-designed and marketed product can command a price premium and reap big profits.

Accepted Answer

A) True 
 B)False

Question 2

Trying to maximize market share,a firm would be best served to use a market-skimming pricing strategy.

Accepted Answer

A) True 
 B)False

Question 3

For price discrimination to work,certain conditions must exist.List and briefly explain these conditions.

Accepted Answer

First,the market must be segmentable and

Question 4

Many consumers use price as an indicator of quality and value.

Accepted Answer

A) True 
 B)False

Question 5

An increasing number of companies are basing their pricing on perceived value,which is the value that the consumer decides the product is worth and is the same across all incomes and regions of the company.

Accepted Answer

A) True 
 B)False

Question 6

Companies often adjust their basic price to accommodate differences in customers,products,locations,and so forth.Examples of these differentiated prices include all of the following EXCEPT ________.

Accepted Answer

A)  new-product pricing 
B)  customer-segment pricing 
C)  product-form pricing 
D)  channel pricing 
E)  none of the above 
A)  new-product pricing 
B)  customer-segment pricing 
C)  product-form pricing 
D)  channel pricing 
E)  none of the above

Question 7

As the marketing manager for your product,you have been forced to take a price increase due to cost pressures from your suppliers.After adjusting for customer and consumer demand fluctuations and elasticity,you feel that you have accounted for all possible reactions.Your boss,however,feels differently and says that your recommendations are not complete.What other factors,besides consumer/customers,are affected by price changes?

Accepted Answer

Other parties that must be acc

Question 8

Starbucks coffee,Aveda shampoo,and BMW cars have been able to position themselves within their categories by combining quality,luxury,and premium prices with an intensely loyal customer base.These companies are employing a ________ strategy.

Accepted Answer

A)  market-skimming 
B)  short-term profit maximization 
C)  survival 
D)  market share maximization 
E)  product-quality leadership 
A)  market-skimming 
B)  short-term profit maximization 
C)  survival 
D)  market share maximization 
E)  product-quality leadership

Question 9

In exchange for the distribution of your products overseas,your firm has accepted to receive a shipment of imported products in trade.This is an example of what type of countertrade

Accepted Answer

A)  Offset 
B)  Barter 
C)  Compensation deal 
D)  Buyback agreement 
E)  None of the above 
A)  Offset 
B)  Barter 
C)  Compensation deal 
D)  Buyback agreement 
E)  None of the above

Question 10

Generally,consumers prefer ________ price increases on a regular basis to sudden,sharp increases.

Accepted Answer

A)  large 
B)  consistent 
C)  small 
D)  reciprocal 
E)  trade 
A)  large 
B)  consistent 
C)  small 
D)  reciprocal 
E)  trade

Question 11

Market-skimming prices make sense under the following conditions EXCEPT ________.

Accepted Answer

A)  the high price communicates high value 
B)  the high initial price blocks competition from entering the market 
C)  the unit costs of producing a small number of units are not too high 
D)  the product is a "me-too" and contains no new technology or points of difference 
E)  a sufficient number of buyers have a high current demand 
A)  the high price communicates high value 
B)  the high initial price blocks competition from entering the market 
C)  the unit costs of producing a small number of units are not too high 
D)  the product is a "me-too" and contains no new technology or points of difference 
E)  a sufficient number of buyers have a high current demand

Question 12

When different customer groups are charged different prices for the same product or service,it is called ________.

Accepted Answer

A)  price discrimination 
B)  customer-segment pricing 
C)  illegal 
D)  product-form pricing 
E)  channel pricing 
A)  price discrimination 
B)  customer-segment pricing 
C)  illegal 
D)  product-form pricing 
E)  channel pricing

Question 13

Explain why and how the Internet is partially reversing the fixed price concept of retailing

Accepted Answer

Using computer technology,buyers can get

Question 14

Under what conditions is demand likely to be less elastic for a product

Accepted Answer

Demand is likely to be less elastic unde

Question 15

________ consist of the sum of the fixed and variable costs for any given level of production.

Accepted Answer

A)  Total costs 
B)  Manufacturing costs 
C)  Delivery costs 
D)  Fixed costs 
E)  Variable costs 
A)  Total costs 
B)  Manufacturing costs 
C)  Delivery costs 
D)  Fixed costs 
E)  Variable costs

Question 16

If demand hardly changes with a small change in price,we say that the demand is ________.

Accepted Answer

A)  equal 
B)  marginal 
C)  inelastic 
D)  elastic 
E)  none of the above 
A)  equal 
B)  marginal 
C)  inelastic 
D)  elastic 
E)  none of the above

Question 17

Most firms have no trouble estimating the demand and cost functions for their products.

Accepted Answer

A) True 
 B)False

Question 18

Companies sometimes initiate price cuts in a drive to dominate the market through lower costs.One of the possible traps of a price-cutting strategy is ________.

Accepted Answer

A)  secure target market customer 
B)  consistent high-quality consumer 
C)  dependence on a firm market 
D)  loyal customer market 
E)  shallow pockets 
A)  secure target market customer 
B)  consistent high-quality consumer 
C)  dependence on a firm market 
D)  loyal customer market 
E)  shallow pockets

Question 19

The definition of ________ prices is: In considering an observed price,consumers often compare it to an internal memory reference price or an external frame of reference (such as a posted "regular retail price").

Accepted Answer

A)  historical 
B)  reference 
C)  promotional 
D)  everyday low price 
E)  none of the above 
A)  historical 
B)  reference 
C)  promotional 
D)  everyday low price 
E)  none of the above

Question 20

Most companies will ________ their list price and give discounts and allowances for early payments,volume purchases,and off-season buying.

Accepted Answer

A)  raise 
B)  increase 
C)  reduce 
D)  adjust 
E)  none of the above 
A)  raise 
B)  increase 
C)  reduce 
D)  adjust 
E)  none of the above

Exam 14: Developing Pricing Strategies and Programs

A well-designed and marketed product can command a price premium and reap big profits.

Trying to maximize market share,a firm would be best served to use a market-skimming pricing strategy.

For price discrimination to work,certain conditions must exist.List and briefly explain these conditions.

Many consumers use price as an indicator of quality and value.

An increasing number of companies are basing their pricing on perceived value,which is the value that the consumer decides the product is worth and is the same across all incomes and regions of the company.

Companies often adjust their basic price to accommodate differences in customers,products,locations,and so forth.Examples of these differentiated prices include all of the following EXCEPT ________.

Starbucks coffee,Aveda shampoo,and BMW cars have been able to position themselves within their categories by combining quality,luxury,and premium prices with an intensely loyal customer base.These companies are employing a ________ strategy.

In exchange for the distribution of your products overseas,your firm has accepted to receive a shipment of imported products in trade.This is an example of what type of countertrade

Generally,consumers prefer ________ price increases on a regular basis to sudden,sharp increases.

Market-skimming prices make sense under the following conditions EXCEPT ________.

When different customer groups are charged different prices for the same product or service,it is called ________.

Explain why and how the Internet is partially reversing the fixed price concept of retailing

Under what conditions is demand likely to be less elastic for a product

________ consist of the sum of the fixed and variable costs for any given level of production.

If demand hardly changes with a small change in price,we say that the demand is ________.

Most firms have no trouble estimating the demand and cost functions for their products.

Companies sometimes initiate price cuts in a drive to dominate the market through lower costs.One of the possible traps of a price-cutting strategy is ________.

The definition of ________ prices is: In considering an observed price,consumers often compare it to an internal memory reference price or an external frame of reference (such as a posted "regular retail price").

Most companies will ________ their list price and give discounts and allowances for early payments,volume purchases,and off-season buying.

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Gathering Information and Scanning the Environment

Conducting Marketing Research and Forecasting Demand

Creating Customer Value, Satisfaction, and Loyalty

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning

Dealing with Competition

Setting Product Strategy

Designing and Managing Services

Designing and Managing Integrated Marketing

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications:

Managing Personal Communications:

Introducing New Market Offerings

Tapping into Global Markets

Managing a Holistic Marketing Organization

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