Question 1

If an organization sets prices to recover research and development expenses and establish a premium quality image for its product,it would be using a ____ pricing objective.

Accepted Answer

A) survival 
B) return on investment 
C) market share 
D) product quality 
E) cash flow 
A) survival 
B) return on investment 
C) market share 
D) product quality 
E) cash flow D

Question 2

Markup can be stated as a percentage of the cost or as a percentage of the selling price.

Accepted Answer

A) True 
 B)False  True

Question 3

If REVO sets the price for its sunglasses at $240,it is most likely using _____pricing to convey ______.

Accepted Answer

A) product-line;prestige. 
B) product-line;quality. 
C) psychological;quality. 
D) psychological;prestige. 
E) price skimming;quality. 
A) product-line;prestige. 
B) product-line;quality. 
C) psychological;quality. 
D) psychological;prestige. 
E) price skimming;quality. D

Question 4

Explain the difference between cost-plus and markup pricing.

Accepted Answer

The answer of Explain the difference between cost-plus and markup...

Question 5

Cost-based pricing strategies result in a percentage being added to the cost of the product.

Accepted Answer

A) True 
 B)False

Question 6

Wet Seal,a retailer of swimwear,employs a commonly used cost-based pricing method called

Accepted Answer

A) value pricing. 
B) cost-plus pricing. 
C) cost discounting. 
D) differential pricing. 
E) markup pricing. 
A) value pricing. 
B) cost-plus pricing. 
C) cost discounting. 
D) differential pricing. 
E) markup pricing.

Question 7

Breyer's produces a variety of ice cream flavors and lines of varying qualities.The higher quality ice cream varieties are priced higher than the basic ones.Breyer's is using ____ to price its ice cream.

Accepted Answer

A) captive pricing 
B) price baiting 
C) premium pricing 
D) bait pricing 
E) differential pricing 
A) captive pricing 
B) price baiting 
C) premium pricing 
D) bait pricing 
E) differential pricing

Question 8

The importance of price depends on the type of product,the type of target market,and the purchase situation.

Accepted Answer

A) True 
 B)False

Question 9

Grocery stores that position their less expensive,private brands next to more expensive,well-known manufacturer brands on the shelf are using the concept of reference pricing.

Accepted Answer

A) True 
 B)False

Question 10

Which type of pricing objective can reduce a firm's risk by helping to stabilize demand for its products?

Accepted Answer

A) Status quo 
B) Market share 
C) Survival 
D) Cash flow 
E) Return on investment 
A) Status quo 
B) Market share 
C) Survival 
D) Cash flow 
E) Return on investment

Question 11

How might a marketer find information about a competitor's prices? Why is this information important?

Accepted Answer

The answer of How might a marketer find information about...

Question 12

Random discounting means discounting various products on a systematic basis.

Accepted Answer

A) True 
 B)False

Question 13

A price-leader approach is a pricing approach most often used in supermarkets to attract consumers by giving them special low prices on a few items.

Accepted Answer

A) True 
 B)False

Question 14

When a seller's costs are usually determined during or after a product is made and then a specified percentage or dollar amount is added to the cost to establish a price,an organization is using ____ pricing.

Accepted Answer

A) markup 
B) demand-based 
C) differential 
D) cost-plus 
E) expensed-based 
A) markup 
B) demand-based 
C) differential 
D) cost-plus 
E) expensed-based

Question 15

A market share objective

Accepted Answer

A) is not recommended when sales for the total industry are declining. 
B) is not especially useful when sales for the total industry are increasing. 
C) is not especially useful when sales for the total industry are flat. 
D) is useful primarily in an industry where total sales are increasing. 
E) can be used effectively whether total industry sales are rising or falling. 
A) is not recommended when sales for the total industry are declining. 
B) is not especially useful when sales for the total industry are increasing. 
C) is not especially useful when sales for the total industry are flat. 
D) is useful primarily in an industry where total sales are increasing. 
E) can be used effectively whether total industry sales are rising or falling.

Question 16

Markup is measured either as a percentage of ____ or a percentage of ____.

Accepted Answer

A) selling price;cost 
B) cost;profit 
C) revenue;contribution margin 
D) resources used;cost 
E) demand;competition 
A) selling price;cost 
B) cost;profit 
C) revenue;contribution margin 
D) resources used;cost 
E) demand;competition

Question 17

When Mia and Shane are planning their honeymoon,their travel agent tells them that if they buy a special package,their trip to Paris will include meals,tickets to the theater,and a rental car in addition to airfare and a hotel.This is an example of the use of

Accepted Answer

A) multiple-unit pricing. 
B) bundle pricing. 
C) prestige pricing. 
D) price lining. 
E) price packaging. 
A) multiple-unit pricing. 
B) bundle pricing. 
C) prestige pricing. 
D) price lining. 
E) price packaging.

Question 18

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 19

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 20

Which pricing objective de-emphasizes price and can lead to a climate of nonprice competition in an industry?

Accepted Answer

A) Status quo 
B) Return on investment 
C) Market share 
D) Survival 
E) Cash flow 
A) Status quo 
B) Return on investment 
C) Market share 
D) Survival 
E) Cash flow

Exam 21: Setting Prices

If an organization sets prices to recover research and development expenses and establish a premium quality image for its product,it would be using a ____ pricing objective.

Markup can be stated as a percentage of the cost or as a percentage of the selling price.

If REVO sets the price for its sunglasses at $240,it is most likely using _____pricing to convey ______.

Explain the difference between cost-plus and markup pricing.

Cost-based pricing strategies result in a percentage being added to the cost of the product.

Wet Seal,a retailer of swimwear,employs a commonly used cost-based pricing method called

Breyer's produces a variety of ice cream flavors and lines of varying qualities.The higher quality ice cream varieties are priced higher than the basic ones.Breyer's is using ____ to price its ice cream.

The importance of price depends on the type of product,the type of target market,and the purchase situation.

Grocery stores that position their less expensive,private brands next to more expensive,well-known manufacturer brands on the shelf are using the concept of reference pricing.

Which type of pricing objective can reduce a firm's risk by helping to stabilize demand for its products?

How might a marketer find information about a competitor's prices? Why is this information important?

Random discounting means discounting various products on a systematic basis.

A price-leader approach is a pricing approach most often used in supermarkets to attract consumers by giving them special low prices on a few items.

When a seller's costs are usually determined during or after a product is made and then a specified percentage or dollar amount is added to the cost to establish a price,an organization is using ____ pricing.

A market share objective

Markup is measured either as a percentage of ____ or a percentage of ____.

When Mia and Shane are planning their honeymoon,their travel agent tells them that if they buy a special package,their trip to Paris will include meals,tickets to the theater,and a rental car in addition to airfare and a hotel.This is an example of the use of

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

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

Which pricing objective de-emphasizes price and can lead to a climate of nonprice competition in an industry?

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

Developing and Managing Products

Services Marketing

Branding and Packaging

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

If REVO sets the price for its sunglasses at $240,it is most likely using _pricing to convey __.

Markup is measured either as a percentage of or a percentage of .