Question 1

Demand-based pricing strategies are easy to use.

Accepted Answer

A) True 
 B)False

Question 2

The pricing strategy that assumes that demand is relatively inelastic over certain price ranges is called

Accepted Answer

A) price lining. 
B) odd-even pricing. 
C) price skimming. 
D) prestige pricing. 
E) customary pricing. 
A) price lining. 
B) odd-even pricing. 
C) price skimming. 
D) prestige pricing. 
E) customary pricing.

Question 3

Research indicates that both market share and ____ are good indicators of profitability.

Accepted Answer

A) low pricing 
B) product quality 
C) limited competition 
D) sales growth 
E) ROI pricing 
A) low pricing 
B) product quality 
C) limited competition 
D) sales growth 
E) ROI pricing

Question 4

A problem associated with ____ is that consumers can predict when prices will be lowered and delay purchases until that time.

Accepted Answer

A) random discounting 
B) penetration pricing 
C) reference pricing 
D) everyday low pricing 
E) periodic discounting 
A) random discounting 
B) penetration pricing 
C) reference pricing 
D) everyday low pricing 
E) periodic discounting

Question 5

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 6

When an organization sets a number of prices for selected groups of merchandise,this is commonly referred to as

Accepted Answer

A) prestige pricing. 
B) price lining. 
C) customary pricing. 
D) odd-even pricing. 
E) ethical pricing. 
A) prestige pricing. 
B) price lining. 
C) customary pricing. 
D) odd-even pricing. 
E) ethical pricing.

Question 7

What is bundle pricing? Give three examples,each one from a different industry.

Accepted Answer

The answer of What is bundle pricing? Give three examples,each...

Question 8

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 9

What are some issues to consider when determining a specific price?

Accepted Answer

The answer of What are some issues to consider when...

Question 10

Steinway produces concert grand pianos,often using the custom materials and designs desired by a specific customer.The average price of these pianos runs about $50,000 depending on the exact piano.What type of pricing does Steinway most likely use for these pianos?

Accepted Answer

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

Question 11

Companies that focus on particular product categories and rely on everyday low pricing to acquire a large market share through aggressive and competitive pricing strategies are often referred to as

Accepted Answer

A) pioneers. 
B) category killers. 
C) comparison discounters. 
D) price leaders. 
E) category leaders. 
A) pioneers. 
B) category killers. 
C) comparison discounters. 
D) price leaders. 
E) category leaders.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 14

The government frequently uses competition-based pricing in granting defense contracts.

Accepted Answer

A) True 
 B)False

Question 15

An early-bird special offered by a restaurant during off-peak hours is an example of the secondary-market pricing strategy.

Accepted Answer

A) True 
 B)False

Question 16

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 17

The use of market share as a pricing objective oversimplifies the value of price in contributing to profits.

Accepted Answer

A) True 
 B)False

Question 18

What type of pricing strategy is used in a situation where demand for a product is price inelastic and the seller has an ethical responsibility not to overcharge the client?

Accepted Answer

A) Price lining 
B) Prestige pricing 
C) Professional pricing 
D) Customary pricing 
E) Price skimming 
A) Price lining 
B) Prestige pricing 
C) Professional pricing 
D) Customary pricing 
E) Price skimming

Question 19

If a business decides to reduce its prices once in a while on an unsystematic basis,it is using

Accepted Answer

A) price reduction planning. 
B) random discounting. 
C) bait pricing. 
D) periodic discounting. 
E) penetration pricing. 
A) price reduction planning. 
B) random discounting. 
C) bait pricing. 
D) periodic discounting. 
E) penetration pricing.

Question 20

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

Exam 21: Setting Prices

Demand-based pricing strategies are easy to use.

The pricing strategy that assumes that demand is relatively inelastic over certain price ranges is called

Research indicates that both market share and ____ are good indicators of profitability.

A problem associated with ____ is that consumers can predict when prices will be lowered and delay purchases until that time.

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

When an organization sets a number of prices for selected groups of merchandise,this is commonly referred to as

What is bundle pricing? Give three examples,each one from a different industry.

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

What are some issues to consider when determining a specific price?

Steinway produces concert grand pianos,often using the custom materials and designs desired by a specific customer.The average price of these pianos runs about $50,000 depending on the exact piano.What type of pricing does Steinway most likely use for these pianos?

Companies that focus on particular product categories and rely on everyday low pricing to acquire a large market share through aggressive and competitive pricing strategies are often referred to as

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

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

The government frequently uses competition-based pricing in granting defense contracts.

An early-bird special offered by a restaurant during off-peak hours is an example of the secondary-market pricing strategy.

The three primary bases for developing prices are

The use of market share as a pricing objective oversimplifies the value of price in contributing to profits.

What type of pricing strategy is used in a situation where demand for a product is price inelastic and the seller has an ethical responsibility not to overcharge the client?

If a business decides to reduce its prices once in a while on an unsystematic basis,it is using

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.

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