Question 1

Which of the following pricing objectives sets prices to recover cash as quickly as possible?

Accepted Answer

A) Market share 
B) Profit 
C) Cash flow 
D) Return on investment 
E) Product quality 
A) Market share 
B) Profit 
C) Cash flow 
D) Return on investment 
E) Product quality

Question 2

A price-skimming strategy assumes that

Accepted Answer

A) the initial demand is highly elastic. 
B) the product is efficient. 
C) it will be difficult to recoup development costs. 
D) all consumers have homogeneous tastes. 
E) the initial demand is highly inelastic. 
A) the initial demand is highly elastic. 
B) the product is efficient. 
C) it will be difficult to recoup development costs. 
D) all consumers have homogeneous tastes. 
E) the initial demand is highly inelastic.

Question 3

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 4

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 5

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.

Question 6

Demand-based pricing strategies are easy to use.

Accepted Answer

A) True 
 B)False

Question 7

It is usually easy to obtain an accurate price list for a competitor's products.

Accepted Answer

A) True 
 B)False

Question 8

Products such as light bulbs, canned soft drinks, and ice cream sandwiches are usually priced using ______ usually resulting in a ____

Accepted Answer

A) multiple-unit pricing; lower per unit price. 
B) reference pricing; lower per unit price. 
C) multiple-unit pricing; more convenient package. 
D) bundle pricing; lower per unit price. 
E) bundle pricing; more convenient package. 
A) multiple-unit pricing; lower per unit price. 
B) reference pricing; lower per unit price. 
C) multiple-unit pricing; more convenient package. 
D) bundle pricing; lower per unit price. 
E) bundle pricing; more convenient package.

Question 9

Identify and describe six types of psychological pricing.

Accepted Answer

1. Charm Pricing: This is when prices ar

Question 10

Penetration pricing and price skimming of the market are two types of new-product pricing.

Accepted Answer

A) True 
 B)False

Question 11

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 12

Kohls pays $16.50 for a six-ounce bottle of cologne and sells it for $25.95. Its markup as a percentage of cost is approximately ____ percent for this product.

Accepted Answer

A) 64 
B) 36 
C) 18 
D) 57 
E) 45 
A) 64 
B) 36 
C) 18 
D) 57 
E) 45

Question 13

When a company that produces computer printers prices them somewhat low, but the ink required to operate the printer is priced higher per relative usage, it is using

Accepted Answer

A) bait pricing. 
B) a price leader. 
C) penetration pricing. 
D) price lining. 
E) captive pricing. 
A) bait pricing. 
B) a price leader. 
C) penetration pricing. 
D) price lining. 
E) captive pricing.

Question 14

The local florist advertises a discount on arrangements during the month of April because the anniversary of the store's opening is in April. This is an example of special-event pricing.

Accepted Answer

A) True 
 B)False

Question 15

Scenario 21.2
Use the following to answer the questions.
Glenwood Pet Hospital is considering implementing a new pricing strategy for its veterinarian services. After reviewing the previous three years' revenue, Glenwood finds that most of its customers bring their pets in for the required annual vaccinations and then only if the animal is ill. Glenwood's objective is to generate more income per customer on an annual basis. The hospital has previously priced its services by charging a flat fee for the office visit, a fee for each vaccine, and a fee for each type of examination beyond the basic office visit. Most customers pay the flat office fee and a fee for a rabies vaccine. Glenwood is now considering a new plan where the pet owner would pay one fee that would cover an office visit, the required rabies vaccine, and additional vaccines that prevent heartworm, kennel-cough, and fleas. Glenwood hopes to encourage the pet owners to view their pet's health as part of a prevention program, rather than a one-time annual visit.
-Refer to Scenario 21.2. Glenwood's closest competitor, The Hearthstone Pet Hospital, currently charges $60 for each basic office visit. If Glenwood were to price its basic office visit at $45, it would most likely be employing which of the following?

Accepted Answer

A) customary pricing. 
B) penetration pricing. 
C) prestige pricing. 
D) price skimming. 
E) cost-based pricing. 
A) customary pricing. 
B) penetration pricing. 
C) prestige pricing. 
D) price skimming. 
E) cost-based pricing.

Question 16

Marketers improve their ability to establish prices appropriately when

Accepted Answer

A) there is nonprice competition. 
B) they know prices charged for competing brands. 
C) their products are of better quality than the competition's. 
D) the main objective is image building. 
E) using psychological pricing. 
A) there is nonprice competition. 
B) they know prices charged for competing brands. 
C) their products are of better quality than the competition's. 
D) the main objective is image building. 
E) using psychological pricing.

Question 17

The role played by attitudes toward price in the overall evaluation of the marketing mix is a minor concern in identifying the target market.

Accepted Answer

A) True 
 B)False

Question 18

If PepsiCo sets its twelve-pack price to match the price charged by Coca-Cola, Pepsi is using which of the following pricing methods?

Accepted Answer

A) Demand-based 
B) Cost-based 
C) Reference pricing 
D) Competition-based 
E) Price leader 
A) Demand-based 
B) Cost-based 
C) Reference pricing 
D) Competition-based 
E) Price leader

Question 19

All of the following are pricing strategies used by companies establishing prices of multiple products within a product line except

Accepted Answer

A) premium pricing. 
B) price lining. 
C) captive pricing. 
D) bait pricing. 
E) penetration pricing. 
A) premium pricing. 
B) price lining. 
C) captive pricing. 
D) bait pricing. 
E) penetration pricing.

Question 20

Maria recently put her house on the market at an asking price of $260,000. She realizes, however, that in order to sell the house, she may have to use

Accepted Answer

A) secondary-market pricing. 
B) reference pricing. 
C) negotiated pricing. 
D) price lining. 
E) professional pricing. 
A) secondary-market pricing. 
B) reference pricing. 
C) negotiated pricing. 
D) price lining. 
E) professional pricing.

Which of the following pricing objectives sets prices to recover cash as quickly as possible?

A price-skimming strategy assumes that

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

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

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

Demand-based pricing strategies are easy to use.

It is usually easy to obtain an accurate price list for a competitor's products.

Products such as light bulbs, canned soft drinks, and ice cream sandwiches are usually priced using __ usually resulting in a

Identify and describe six types of psychological pricing.

Penetration pricing and price skimming of the market are two types of new-product pricing.

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

Kohls pays $16.50 for a six-ounce bottle of cologne and sells it for $25.95. Its markup as a percentage of cost is approximately ____ percent for this product.

When a company that produces computer printers prices them somewhat low, but the ink required to operate the printer is priced higher per relative usage, it is using

The local florist advertises a discount on arrangements during the month of April because the anniversary of the store's opening is in April. This is an example of special-event pricing.

Marketers improve their ability to establish prices appropriately when

The role played by attitudes toward price in the overall evaluation of the marketing mix is a minor concern in identifying the target market.

If PepsiCo sets its twelve-pack price to match the price charged by Coca-Cola, Pepsi is using which of the following pricing methods?

All of the following are pricing strategies used by companies establishing prices of multiple products within a product line except

Maria recently put her house on the market at an asking price of $260,000. She realizes, however, that in order to sell the house, she may have to use

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

Exam 21: Setting Prices

Which of the following pricing objectives sets prices to recover cash as quickly as possible?

A price-skimming strategy assumes that

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

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

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

Demand-based pricing strategies are easy to use.

It is usually easy to obtain an accurate price list for a competitor's products.

Products such as light bulbs, canned soft drinks, and ice cream sandwiches are usually priced using ______ usually resulting in a ____

Identify and describe six types of psychological pricing.

Penetration pricing and price skimming of the market are two types of new-product pricing.

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

Kohls pays $16.50 for a six-ounce bottle of cologne and sells it for $25.95. Its markup as a percentage of cost is approximately ____ percent for this product.

When a company that produces computer printers prices them somewhat low, but the ink required to operate the printer is priced higher per relative usage, it is using

The local florist advertises a discount on arrangements during the month of April because the anniversary of the store's opening is in April. This is an example of special-event pricing.

Marketers improve their ability to establish prices appropriately when

The role played by attitudes toward price in the overall evaluation of the marketing mix is a minor concern in identifying the target market.

If PepsiCo sets its twelve-pack price to match the price charged by Coca-Cola, Pepsi is using which of the following pricing methods?

All of the following are pricing strategies used by companies establishing prices of multiple products within a product line except

Maria recently put her house on the market at an asking price of $260,000. She realizes, however, that in order to sell the house, she may have to use

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

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

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

Products such as light bulbs, canned soft drinks, and ice cream sandwiches are usually priced using __ usually resulting in a