Question 1

When products in an industry are relatively homogeneous and price is a key purchase consideration,

Accepted Answer

A) competition-based pricing becomes more important. 
B) demand-based pricing dominates pricing decisions. 
C) firms tend to use secondary-market pricing. 
D) cost-based methods like markup pricing are dominant. 
E) customary pricing is often used. 
A) competition-based pricing becomes more important. 
B) demand-based pricing dominates pricing decisions. 
C) firms tend to use secondary-market pricing. 
D) cost-based methods like markup pricing are dominant. 
E) customary pricing is often used.

Question 2

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

Question 3

Maintaining a certain market share, meeting competitors' prices, maintaining a favorable image, and achieving price stability are all associated with a ____ pricing objective.

Accepted Answer

A) product quality 
B) market share 
C) survival 
D) profit 
E) status quo 
A) product quality 
B) market share 
C) survival 
D) profit 
E) status quo

Question 4

If General Motors determines that it wants to sell 200,000 Chevrolet Acadias and sets the price at $29,500 because it knows that at that price it will reach that goal, the firm would be using a ____ pricing method.

Accepted Answer

A) cost-plus 
B) competition-based 
C) psychological 
D) comparison 
E) demand-based 
A) cost-plus 
B) competition-based 
C) psychological 
D) comparison 
E) demand-based

Question 5

Nabisco is considering two pricing objectives. The first is to sell one out of every three crackers consumed in the world, an objective based on _______; the second is to meet, but not beat, competitor's prices of cookie products, which is a _____ objective.

Accepted Answer

A) cash flow; market share 
B) market share; cash flow 
C) survival; status quo 
D) market share; survival 
E) market share; status quo. 
A) cash flow; market share 
B) market share; cash flow 
C) survival; status quo 
D) market share; survival 
E) market share; status quo.

Question 6

Differential pricing means different buyers pay different prices for the same quality and quantity of product.

Accepted Answer

A) True 
 B)False

Question 7

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 8

If Wrigley set its pricing objective as attaining 38 percent of the chewing gum market, what else would be needed to make this a true pricing objective?

Accepted Answer

A) Statement of demand elasticities 
B) Identification of cost structure 
C) Breakeven analysis 
D) Identification of a time period for accomplishment 
E) Establishment of a subsequent pricing policy 
A) Statement of demand elasticities 
B) Identification of cost structure 
C) Breakeven analysis 
D) Identification of a time period for accomplishment 
E) Establishment of a subsequent pricing policy

Question 9

How are pricing objectives similar to a corporation's overall goals? How are they different?

Accepted Answer

The answer of How are pricing objectives similar to a...

Question 10

Some grocery stores collect data on competitive prices

Accepted Answer

A) by calling their competitors. 
B) on a quarterly basis. 
C) through stores' purchase data. 
D) from their resellers. 
E) by using full-time comparison shoppers. 
A) by calling their competitors. 
B) on a quarterly basis. 
C) through stores' purchase data. 
D) from their resellers. 
E) by using full-time comparison shoppers.

Question 11

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 12

How can a marketer use product quality as a pricing objective to influence purchasing decisions?

Accepted Answer

The answer of How can a marketer use product quality...

Question 13

Prestige pricing is used when a higher price is consistent with buyers' attitudes toward the quality or image of a product.

Accepted Answer

A) True 
 B)False

Question 14

Describe, compare, and contrast the three major bases for setting prices.

Accepted Answer

The answer of Describe, compare, and contrast the three major...

Question 15

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 16

A sale that advertised prices "up to 65 percent off" the original price uses

Accepted Answer

A) tensile pricing. 
B) random discounting. 
C) periodic discounting. 
D) bait pricing. 
E) psychological pricing. 
A) tensile pricing. 
B) random discounting. 
C) periodic discounting. 
D) bait pricing. 
E) psychological pricing.

Question 17

Grocery stores use negotiated pricing strategies.

Accepted Answer

A) True 
 B)False

Question 18

If Samsung uses _____ pricing for its newest version of laptops, it is probably most interested in obtaining market share; and it is assuming

Accepted Answer

A) premium pricing; that no other competitors are likely to enter the market soon. 
B) price skimming; that no other competitors are likely to enter the market soon. 
C) premium pricing; it needs to recoup R & D costs as soon as possible. 
D) penetration pricing; that no other competitors are likely to enter the market soon. 
E) penetration pricing; that other competitors could enter the market easily. 
A) premium pricing; that no other competitors are likely to enter the market soon. 
B) price skimming; that no other competitors are likely to enter the market soon. 
C) premium pricing; it needs to recoup R & D costs as soon as possible. 
D) penetration pricing; that no other competitors are likely to enter the market soon. 
E) penetration pricing; that other competitors could enter the market easily.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Differential pricing is effective mainly when focusing on only one market segment.

Accepted Answer

A) True 
 B)False

Exam 21: Setting Prices

When products in an industry are relatively homogeneous and price is a key purchase consideration,

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.

Maintaining a certain market share, meeting competitors' prices, maintaining a favorable image, and achieving price stability are all associated with a ____ pricing objective.

If General Motors determines that it wants to sell 200,000 Chevrolet Acadias and sets the price at $29,500 because it knows that at that price it will reach that goal, the firm would be using a ____ pricing method.

Nabisco is considering two pricing objectives. The first is to sell one out of every three crackers consumed in the world, an objective based on _______; the second is to meet, but not beat, competitor's prices of cookie products, which is a _____ objective.

Differential pricing means different buyers pay different prices for the same quality and quantity of product.

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

If Wrigley set its pricing objective as attaining 38 percent of the chewing gum market, what else would be needed to make this a true pricing objective?

How are pricing objectives similar to a corporation's overall goals? How are they different?

Some grocery stores collect data on competitive prices

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

How can a marketer use product quality as a pricing objective to influence purchasing decisions?

Prestige pricing is used when a higher price is consistent with buyers' attitudes toward the quality or image of a product.

Describe, compare, and contrast the three major bases for setting prices.

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

A sale that advertised prices "up to 65 percent off" the original price uses

Grocery stores use negotiated pricing strategies.

If Samsung uses _____ pricing for its newest version of laptops, it is probably most interested in obtaining market share; and it is assuming

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

Differential pricing is effective mainly when focusing on only one market segment.

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

Nabisco is considering two pricing objectives. The first is to sell one out of every three crackers consumed in the world, an objective based on ___; the second is to meet, but not beat, competitor's prices of cookie products, which is a _ objective.