Question 1

In order for a retailer to compare a sale price with the regular price of an item, the regular price

Accepted Answer

A)  must be clearly marked on the item so that customers can compare the two prices. 
B)  must be a price that has been advertised in this store or in comparable stores. 
C)  must be approved by the Competition Bureau. 
D)  must be lower than the manufacturer's suggested list price. 
E)  must be a recent price at which the product has been sold over an extended period of time. 
A)  must be clearly marked on the item so that customers can compare the two prices. 
B)  must be a price that has been advertised in this store or in comparable stores. 
C)  must be approved by the Competition Bureau. 
D)  must be lower than the manufacturer's suggested list price. 
E)  must be a recent price at which the product has been sold over an extended period of time.

Question 2

That aspect of a good or service that is derived from its tangible and intangible benefits is its

Accepted Answer

A)  utility. 
B)  value. 
C)  price. 
D)  supply. 
E)  demand. 
A)  utility. 
B)  value. 
C)  price. 
D)  supply. 
E)  demand.

Question 3

Fixed costs

Accepted Answer

A)  do not change when production quantities change. 
B)  are production costs that change with output. 
C)  change within certain guidelines when production quantities change. 
D)  change when production quantities change. 
E)  never change. 
A)  do not change when production quantities change. 
B)  are production costs that change with output. 
C)  change within certain guidelines when production quantities change. 
D)  change when production quantities change. 
E)  never change.

Question 4

A uniformed delivered price means that all buyers pay the same freight charge.

Accepted Answer

A) True 
 B)False

Question 5

Penetration pricing is used in a market characterized by elastic demand.

Accepted Answer

A) True 
 B)False

Question 6

If prices increased 10% and demand remained stable, demand would be inelastic.

Accepted Answer

A) True 
 B)False

Question 7

Identify and explain the methods of paying freight charges in geographic pricing.

Accepted Answer

- FOB origin: the purchaser takes title

Question 8

When a store advertises a bargain price for a product that is not available in reasonable quantities and tries to trade customers up to a higher priced product, the store is engaging in what sort of practice?

Accepted Answer

A)  MSLP 
B)  quota selling 
C)  bait and switch tactics 
D)  extraordinary price claims 
E)  double ticketing 
A)  MSLP 
B)  quota selling 
C)  bait and switch tactics 
D)  extraordinary price claims 
E)  double ticketing

Question 9

The Apex Company sells $50,000 worth of merchandise to the Boston Group FOB origin pricing. The freight costs to ship the goods from the Apex Company to the Boston Group are $5,000. How much will the Apex Company charge the Boston Group for the shipment?

Accepted Answer

A)  $55,000 
B)  Total charges will depend on the customer's zone. 
C)  $50,000 
D)  Total charges will be based on phantom freight. 
E)  $45,000 
A)  $55,000 
B)  Total charges will depend on the customer's zone. 
C)  $50,000 
D)  Total charges will be based on phantom freight. 
E)  $45,000

Question 10

"The exchange value of a good or service in the marketplace"is a description of

Accepted Answer

A)  demand. 
B)  utility. 
C)  value. 
D)  supply. 
E)  price. 
A)  demand. 
B)  utility. 
C)  value. 
D)  supply. 
E)  price.

Question 11

If sales for ketchup are below the breakeven point, the firm is profiting from the efficiencies of being below that point.

Accepted Answer

A) True 
 B)False

Question 12

You are the product manager for a new line of granola bars. What areas should you review prior to setting a price?

Accepted Answer

Before setting a price on a new line of

Question 13

A slotting allowance is a discount

Accepted Answer

A)  offered by a supplier to a retail distributor to secure shelf space for the product in retail outlets. 
B)  offered by a manufacturer to a retail distributor as a seasonal promotion. 
C)  offered by a supplier to a retailer as a reward for reaching a high level of sales. 
D)  offered by the retailer to the consumer. 
E)  offered by a manufacturer for a short period of time to increase volume buying. 
A)  offered by a supplier to a retail distributor to secure shelf space for the product in retail outlets. 
B)  offered by a manufacturer to a retail distributor as a seasonal promotion. 
C)  offered by a supplier to a retailer as a reward for reaching a high level of sales. 
D)  offered by the retailer to the consumer. 
E)  offered by a manufacturer for a short period of time to increase volume buying.

Question 14

A Quebec superior court judge fined four prominent cement companies a total of $5.88 million for entering into an agreement with each other to share the sales of ready-mix concrete for public projects in Quebec City. This is an example of

Accepted Answer

A)  predatory pricing. 
B)  price fixing. 
C)  bait and switch selling. 
D)  double ticketing. 
E)  fair pricing. 
A)  predatory pricing. 
B)  price fixing. 
C)  bait and switch selling. 
D)  double ticketing. 
E)  fair pricing.

Question 15

The breakeven point in units for a company with fixed costs of $500,000, variable cost per unit of $25, and a selling price of $45 is 25,000.

Accepted Answer

A) True 
 B)False

Question 16

Price lining is consistent with a product line that offers "good, better, and best"options.

Accepted Answer

A) True 
 B)False

Question 17

"To increase market share from 30% to 35% in one year"is an example of what type of pricing objective?

Accepted Answer

A)  brand dominance 
B)  achieving a target return 
C)  sales volume maximization 
D)  establishing a competitive position 
E)  profit maximization 
A)  brand dominance 
B)  achieving a target return 
C)  sales volume maximization 
D)  establishing a competitive position 
E)  profit maximization

Question 18

A manufacturer of athletic footwear has determined its total costs are $25 per pair of shoes. The company sells the footwear through wholesalers who in turn sell to retailers. The required wholesaler markup is 20% on cost while the required retailer markup is 50% on cost. The footwear manufacturer needs a markup of 25% on cost. What is the retail selling price?

Accepted Answer

A)  $56.25 
B)  $60.00 
C)  $55.25 
D)  $65.00 
E)  $48.75 
A)  $56.25 
B)  $60.00 
C)  $55.25 
D)  $65.00 
E)  $48.75

Question 19

Products offered for sale at or slightly below cost are

Accepted Answer

A)  price penetrators. 
B)  loss leaders. 
C)  dogs. 
D)  price liners. 
E)  psychological prices. 
A)  price penetrators. 
B)  loss leaders. 
C)  dogs. 
D)  price liners. 
E)  psychological prices.

Question 20

Establishing a price that is above, equal to, or below that of the competition is known as

Accepted Answer

A)  competitive pricing. 
B)  price fixing. 
C)  variable pricing. 
D)  flexible pricing. 
E)  price lining. 
A)  competitive pricing. 
B)  price fixing. 
C)  variable pricing. 
D)  flexible pricing. 
E)  price lining.

In order for a retailer to compare a sale price with the regular price of an item, the regular price

That aspect of a good or service that is derived from its tangible and intangible benefits is its

Fixed costs

A uniformed delivered price means that all buyers pay the same freight charge.

Penetration pricing is used in a market characterized by elastic demand.

If prices increased 10% and demand remained stable, demand would be inelastic.

Identify and explain the methods of paying freight charges in geographic pricing.

When a store advertises a bargain price for a product that is not available in reasonable quantities and tries to trade customers up to a higher priced product, the store is engaging in what sort of practice?

The Apex Company sells $50,000 worth of merchandise to the Boston Group FOB origin pricing. The freight costs to ship the goods from the Apex Company to the Boston Group are $5,000. How much will the Apex Company charge the Boston Group for the shipment?

"The exchange value of a good or service in the marketplace"is a description of

If sales for ketchup are below the breakeven point, the firm is profiting from the efficiencies of being below that point.

You are the product manager for a new line of granola bars. What areas should you review prior to setting a price?

A slotting allowance is a discount

A Quebec superior court judge fined four prominent cement companies a total of $5.88 million for entering into an agreement with each other to share the sales of ready-mix concrete for public projects in Quebec City. This is an example of

The breakeven point in units for a company with fixed costs of $500,000, variable cost per unit of $25, and a selling price of $45 is 25,000.

Price lining is consistent with a product line that offers "good, better, and best"options.

"To increase market share from 30% to 35% in one year"is an example of what type of pricing objective?

Products offered for sale at or slightly below cost are

Establishing a price that is above, equal to, or below that of the competition is known as

Contemporary Marketing

The External Marketing Environment

Strategic Marketing Planning

Marketing Intelligence

Consumer Buying Behaviour

Business-To-Business Marketing and Organizational Buying Behaviour

Market Segmentation and Target Marketing

Product Strategy

Product Management

Services and Not-For-Profit Marketing

Distribution and Supply Chain Management

Retailing

IMC: Media Advertising, Social and Mobile Communications

IMC: Sales Promotion, Public Relations, Experiential Marketing, and Personal Selling

Global Marketing

Filters

Exam 11: Pricing Decisions: Objectives, Strategies and Tactics

In order for a retailer to compare a sale price with the regular price of an item, the regular price

That aspect of a good or service that is derived from its tangible and intangible benefits is its

Fixed costs

A uniformed delivered price means that all buyers pay the same freight charge.

Penetration pricing is used in a market characterized by elastic demand.

If prices increased 10% and demand remained stable, demand would be inelastic.

Identify and explain the methods of paying freight charges in geographic pricing.

When a store advertises a bargain price for a product that is not available in reasonable quantities and tries to trade customers up to a higher priced product, the store is engaging in what sort of practice?

The Apex Company sells $50,000 worth of merchandise to the Boston Group FOB origin pricing. The freight costs to ship the goods from the Apex Company to the Boston Group are $5,000. How much will the Apex Company charge the Boston Group for the shipment?

"The exchange value of a good or service in the marketplace"is a description of

If sales for ketchup are below the breakeven point, the firm is profiting from the efficiencies of being below that point.

You are the product manager for a new line of granola bars. What areas should you review prior to setting a price?

A slotting allowance is a discount

A Quebec superior court judge fined four prominent cement companies a total of $5.88 million for entering into an agreement with each other to share the sales of ready-mix concrete for public projects in Quebec City. This is an example of

The breakeven point in units for a company with fixed costs of $500,000, variable cost per unit of $25, and a selling price of $45 is 25,000.

Price lining is consistent with a product line that offers "good, better, and best"options.

"To increase market share from 30% to 35% in one year"is an example of what type of pricing objective?

Products offered for sale at or slightly below cost are

Establishing a price that is above, equal to, or below that of the competition is known as

Contemporary Marketing

The External Marketing Environment

Strategic Marketing Planning

Marketing Intelligence

Consumer Buying Behaviour

Business-To-Business Marketing and Organizational Buying Behaviour

Market Segmentation and Target Marketing

Product Strategy

Product Management

Services and Not-For-Profit Marketing

Distribution and Supply Chain Management

Retailing

IMC: Media Advertising, Social and Mobile Communications

IMC: Sales Promotion, Public Relations, Experiential Marketing, and Personal Selling

Global Marketing

Filters