Question 1

A manufacturer of electronics bases its costs on the price customers are willing to pay. This is an example of demand-based pricing.

Accepted Answer

A) True 
 B)False

Question 2

The basic law of supply and demand contends that an abundant supply and a low demand lead to a high price, while high demand and limited supply lead to a low price.

Accepted Answer

A) True 
 B)False

Question 3

Explain when "above competition"is appropriate. What type of demand elasticity applies here? Why?

Accepted Answer

- The product must be perceived as highe

Question 4

What is the purpose of a slotting allowance? Why is the offering and accepting of slotting allowances a controversial issue?

Accepted Answer

A slotting allowance is offered by a man

Question 5

A price increase for a Rolex watch is an example of inelastic demand.

Accepted Answer

A) True 
 B)False

Question 6

Prestige pricing is an example of what type of pricing policy?

Accepted Answer

A)  geographic pricing 
B)  psychological pricing 
C)  flexible pricing 
D)  supply 
E)  promotional pricing 
A)  geographic pricing 
B)  psychological pricing 
C)  flexible pricing 
D)  supply 
E)  promotional pricing

Question 7

If a price is quoted as FOB origin, the seller pays the freight.

Accepted Answer

A) True 
 B)False

Question 8

A firm that uses "equal to competition"position in the marketplace adopts a conservative position because it does not want to be caught in a price war.

Accepted Answer

A) True 
 B)False

Question 9

Target pricing is a pricing method that

Accepted Answer

A)  aims to increase market share by accepting a lower profit margin. 
B)  focuses on the economic conditions of the target market segment. 
C)  is designed to generate a desirable rate of return on investment. 
D)  maximizes cost reduction techniques to respond to market demand. 
E)  keeps prices in a moderate range by increasing the rate of return. 
A)  aims to increase market share by accepting a lower profit margin. 
B)  focuses on the economic conditions of the target market segment. 
C)  is designed to generate a desirable rate of return on investment. 
D)  maximizes cost reduction techniques to respond to market demand. 
E)  keeps prices in a moderate range by increasing the rate of return.

Question 10

You are the brand manager for a line of heavy industrial cleaning supplies. These products are manufactured in Vancouver and distributed across Canada to other Canadian markets. Based on this information, what pricing policy should be used by this company?

Accepted Answer

This company should use a geographic pri

Question 11

"Two for one"sales are examples of multiple-unit pricing.

Accepted Answer

A) True 
 B)False

Question 12

For a new product entering the market with a price-skimming strategy, the price is

Accepted Answer

A)  equal to competitors' prices. 
B)  high. 
C)  low. 
D)  based on what the market will bear. 
E)  based solely on costs. 
A)  equal to competitors' prices. 
B)  high. 
C)  low. 
D)  based on what the market will bear. 
E)  based solely on costs.

Question 13

Sarah's boss tells her that their division would like to increase market share from 20% to 21% in 2019. This represents a sales volume maximization goal.

Accepted Answer

A) True 
 B)False

Question 14

"To achieve a net profit contribution of $500,000 in the year 2017"is an example of what type of pricing objective?

Accepted Answer

A)  sales volume maximization 
B)  maintaining the status quo 
C)  profit maximization 
D)  establishing a competitive position 
E)  fixed return 
A)  sales volume maximization 
B)  maintaining the status quo 
C)  profit maximization 
D)  establishing a competitive position 
E)  fixed return

Question 15

Bob's Automotive sets out a goal of achieving a profit contribution of $200,000 in fiscal year 2019. This is an example of return on investment.

Accepted Answer

A) True 
 B)False

Question 16

When more than one price tag appears on an item in a retail store, the store has the option of charging either price.

Accepted Answer

A) True 
 B)False

Question 17

For a product positioned as superior quality, ________ strategy is appropriate.

Accepted Answer

A)  an equal-to-competition 
B)  a below-competition 
C)  a breakeven 
D)  an above-competition 
E)  a predatory 
A)  an equal-to-competition 
B)  a below-competition 
C)  a breakeven 
D)  an above-competition 
E)  a predatory

Question 18

Price scanning at the point of sale has done little to solve the problems created by double ticketing.

Accepted Answer

A) True 
 B)False

A manufacturer of electronics bases its costs on the price customers are willing to pay. This is an example of demand-based pricing.

The basic law of supply and demand contends that an abundant supply and a low demand lead to a high price, while high demand and limited supply lead to a low price.

Explain when "above competition"is appropriate. What type of demand elasticity applies here? Why?

What is the purpose of a slotting allowance? Why is the offering and accepting of slotting allowances a controversial issue?

A price increase for a Rolex watch is an example of inelastic demand.

Prestige pricing is an example of what type of pricing policy?

If a price is quoted as FOB origin, the seller pays the freight.

A firm that uses "equal to competition"position in the marketplace adopts a conservative position because it does not want to be caught in a price war.

Target pricing is a pricing method that

You are the brand manager for a line of heavy industrial cleaning supplies. These products are manufactured in Vancouver and distributed across Canada to other Canadian markets. Based on this information, what pricing policy should be used by this company?

"Two for one"sales are examples of multiple-unit pricing.

For a new product entering the market with a price-skimming strategy, the price is

Sarah's boss tells her that their division would like to increase market share from 20% to 21% in 2019. This represents a sales volume maximization goal.

"To achieve a net profit contribution of $500,000 in the year 2017"is an example of what type of pricing objective?

Bob's Automotive sets out a goal of achieving a profit contribution of $200,000 in fiscal year 2019. This is an example of return on investment.

When more than one price tag appears on an item in a retail store, the store has the option of charging either price.

For a product positioned as superior quality, ________ strategy is appropriate.

Price scanning at the point of sale has done little to solve the problems created by double ticketing.

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

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Exam 11: Pricing Decisions: Objectives, Strategies and Tactics

A manufacturer of electronics bases its costs on the price customers are willing to pay. This is an example of demand-based pricing.

The basic law of supply and demand contends that an abundant supply and a low demand lead to a high price, while high demand and limited supply lead to a low price.

Explain when "above competition"is appropriate. What type of demand elasticity applies here? Why?

What is the purpose of a slotting allowance? Why is the offering and accepting of slotting allowances a controversial issue?

A price increase for a Rolex watch is an example of inelastic demand.

Prestige pricing is an example of what type of pricing policy?

If a price is quoted as FOB origin, the seller pays the freight.

A firm that uses "equal to competition"position in the marketplace adopts a conservative position because it does not want to be caught in a price war.

Target pricing is a pricing method that

You are the brand manager for a line of heavy industrial cleaning supplies. These products are manufactured in Vancouver and distributed across Canada to other Canadian markets. Based on this information, what pricing policy should be used by this company?

"Two for one"sales are examples of multiple-unit pricing.

For a new product entering the market with a price-skimming strategy, the price is

Sarah's boss tells her that their division would like to increase market share from 20% to 21% in 2019. This represents a sales volume maximization goal.

"To achieve a net profit contribution of $500,000 in the year 2017"is an example of what type of pricing objective?

Bob's Automotive sets out a goal of achieving a profit contribution of $200,000 in fiscal year 2019. This is an example of return on investment.

When more than one price tag appears on an item in a retail store, the store has the option of charging either price.

For a product positioned as superior quality, ________ strategy is appropriate.

Price scanning at the point of sale has done little to solve the problems created by double ticketing.

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