Question 1

The decline in the average cost of production with accumulated production experience is called the ________.

Accepted Answer

A)  demand curve 
B)  supply chain 
C)  learning curve 
D)  value chain 
E)  indifference curve 
A)  demand curve 
B)  supply chain 
C)  learning curve 
D)  value chain 
E)  indifference curve

Question 2

Pepsi Co. sold its cola syrup to Russia and agreed to buy Russian vodka at a certain rate for sale in the United States for the next five years. What kind of a countertrade did both the parties indulge in?

Accepted Answer

Both the parties indulged in an offset.

Question 3

When Indu's company printed the ad for their perfume in the newspapers, the caption read, "WAS $100, NOW $75." What kind of a promotional pricing did her company use?

Accepted Answer

Indu's company used psychologi

Question 4

When Yolanda went shopping, she paid a lot to buy a jacket that had a well-known designer's tag attached to it. After a few days, she came across a store-brand jacket that looked similar but was one-fifth the price of the one she had bought. She didn't give this a second thought because she was convinced that the designer label she had bought was worth it. What does this suggest about consumer psychology?

Accepted Answer

Yolanda was using the price as an indica

Question 5

Briefly describe the different types of pricing objectives.

Accepted Answer

When a company is preparing to sets its

Question 6

What would a consumer's lower price threshold signal?

Accepted Answer

A)  the use of everyday low pricing 
B)  a discounted price for a high-value product 
C)  a fair price 
D)  a price below which the product is considered to be a good value 
E)  a price below which the product is assumed to be of unacceptable quality 
A)  the use of everyday low pricing 
B)  a discounted price for a high-value product 
C)  a fair price 
D)  a price below which the product is considered to be a good value 
E)  a price below which the product is assumed to be of unacceptable quality

Question 7

When supermarkets and department stores drop the price on well-known brands to stimulate store traffic, they are said to be following ________ pricing.

Accepted Answer

A)  value 
B)  loss-leader 
C)  special event 
D)  high-low 
E)  everyday low 
A)  value 
B)  loss-leader 
C)  special event 
D)  high-low 
E)  everyday low

Question 8

In which of the following forms of countertrade do buyers and sellers directly exchange goods, with no money and no third party is involved?

Accepted Answer

A)  buyback arrangements 
B)  offsets 
C)  barter 
D)  sealed bids 
E)  compensation deals 
A)  buyback arrangements 
B)  offsets 
C)  barter 
D)  sealed bids 
E)  compensation deals

Question 9

An umbrella manufacturing company's fixed costs are $275,000. The variable cost per unit is $5 and each umbrella is sold at $10. How many units should the firm sell in order to break even?

Accepted Answer

A)  1,819 
B)  5,500 
C)  18,000 
D)  27,500 
E)  55,000 
A)  1,819 
B)  5,500 
C)  18,000 
D)  27,500 
E)  55,000

Question 10

________ auctions let would-be suppliers submit only one bid; they cannot know the other bids.

Accepted Answer

A)  Descending bid 
B)  Sealed-bid 
C)  English 
D)  Dutch 
E)  Reverse 
A)  Descending bid 
B)  Sealed-bid 
C)  English 
D)  Dutch 
E)  Reverse

Question 11

If firms wish to maximize their market share, they should opt for market-skimming pricing.

Accepted Answer

A) True 
 B)False

Question 12

If demand hardly changes with a small change in price, the demand is said to be ________.

Accepted Answer

A)  strained 
B)  marginal 
C)  inelastic 
D)  flexible 
E)  unit elastic 
A)  strained 
B)  marginal 
C)  inelastic 
D)  flexible 
E)  unit elastic

Question 13

What are the different forms of countertrade?

Accepted Answer

Countertrade can take the following form

Question 14

Which of the following would NOT be a consumer's reference price?

Accepted Answer

A)  the advertised price per month 
B)  the actual future price 
C)  a price the consumer remembers 
D)  a posted "regular retail price" 
E)  the manufacturer's suggested price 
A)  the advertised price per month 
B)  the actual future price 
C)  a price the consumer remembers 
D)  a posted "regular retail price" 
E)  the manufacturer's suggested price

Question 15

In high-low pricing, retailers charge low prices on an everyday basis with occasional price increases.

Accepted Answer

A) True 
 B)False

Question 16

When examining products, consumers compare an observed price to an internal reference price they remember or an external frame of reference.

Accepted Answer

A) True 
 B)False

Question 17

A company must consider the product's stage in the life cycle and its importance in the company's portfolio before responding to a competitor's price cut.

Accepted Answer

A) True 
 B)False

Question 18

Everyday low pricing is most suitable if ________.

Accepted Answer

A)  consumers are willing to perform activities such as clip coupons to avail of discounts 
B)  consumers tend to associate price with quality 
C)  customers are insensitive to changes in price 
D)  the cost of conducting frequent sales and promotions is high 
E)  consumers have sufficient time to find the best prices 
A)  consumers are willing to perform activities such as clip coupons to avail of discounts 
B)  consumers tend to associate price with quality 
C)  customers are insensitive to changes in price 
D)  the cost of conducting frequent sales and promotions is high 
E)  consumers have sufficient time to find the best prices

Question 19

When hotels, motels, and airlines offer discounts in slow selling periods, they are said to be offering ________.

Accepted Answer

A)  trade discounts 
B)  quantity discounts 
C)  functional discounts 
D)  seasonal discounts 
E)  trade-in allowances 
A)  trade discounts 
B)  quantity discounts 
C)  functional discounts 
D)  seasonal discounts 
E)  trade-in allowances

Question 20

The airline and hospitality industries use ________, by which they offer discounted but limited early purchases, higher-priced late purchases, and the lowest rates on unsold inventory just before it expires.

Accepted Answer

A)  special-customer pricing 
B)  yield pricing 
C)  cash rebates 
D)  location pricing 
E)  customer-segment pricing 
A)  special-customer pricing 
B)  yield pricing 
C)  cash rebates 
D)  location pricing 
E)  customer-segment pricing

The decline in the average cost of production with accumulated production experience is called the ________.

Pepsi Co. sold its cola syrup to Russia and agreed to buy Russian vodka at a certain rate for sale in the United States for the next five years. What kind of a countertrade did both the parties indulge in?

When Indu's company printed the ad for their perfume in the newspapers, the caption read, "WAS $100, NOW $75." What kind of a promotional pricing did her company use?

Briefly describe the different types of pricing objectives.

What would a consumer's lower price threshold signal?

When supermarkets and department stores drop the price on well-known brands to stimulate store traffic, they are said to be following ________ pricing.

In which of the following forms of countertrade do buyers and sellers directly exchange goods, with no money and no third party is involved?

An umbrella manufacturing company's fixed costs are $275,000. The variable cost per unit is $5 and each umbrella is sold at $10. How many units should the firm sell in order to break even?

________ auctions let would-be suppliers submit only one bid; they cannot know the other bids.

If firms wish to maximize their market share, they should opt for market-skimming pricing.

If demand hardly changes with a small change in price, the demand is said to be ________.

What are the different forms of countertrade?

Which of the following would NOT be a consumer's reference price?

In high-low pricing, retailers charge low prices on an everyday basis with occasional price increases.

When examining products, consumers compare an observed price to an internal reference price they remember or an external frame of reference.

A company must consider the product's stage in the life cycle and its importance in the company's portfolio before responding to a competitor's price cut.

Everyday low pricing is most suitable if ________.

When hotels, motels, and airlines offer discounts in slow selling periods, they are said to be offering ________.

The airline and hospitality industries use ________, by which they offer discounted but limited early purchases, higher-priced late purchases, and the lowest rates on unsold inventory just before it expires.

Defining Marketing for the New Realities

Developing and Implementing Marketing Strategies and Plans

Capturing Marketing Insights and Forecasting Demand

Creating Long-Term Loyalty Relationships

Analyzing Consumer and Business Markets

Identifying Market Segments and Targets

Crafting the Brand Positioning and Competing Effectively

Creating Brand Equity and Driving Growth

Setting Product Strategy and Introducing New Offerings

Designing and Managing Services

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Digital Communications: Online, Social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Tapping Into Global Markets

Filters

Exam 11: Developing Pricing Strategies and Programs

The decline in the average cost of production with accumulated production experience is called the ________.

Pepsi Co. sold its cola syrup to Russia and agreed to buy Russian vodka at a certain rate for sale in the United States for the next five years. What kind of a countertrade did both the parties indulge in?

When Indu's company printed the ad for their perfume in the newspapers, the caption read, "WAS $100, NOW $75." What kind of a promotional pricing did her company use?

Briefly describe the different types of pricing objectives.

What would a consumer's lower price threshold signal?

When supermarkets and department stores drop the price on well-known brands to stimulate store traffic, they are said to be following ________ pricing.

In which of the following forms of countertrade do buyers and sellers directly exchange goods, with no money and no third party is involved?

An umbrella manufacturing company's fixed costs are $275,000. The variable cost per unit is $5 and each umbrella is sold at $10. How many units should the firm sell in order to break even?

________ auctions let would-be suppliers submit only one bid; they cannot know the other bids.

If firms wish to maximize their market share, they should opt for market-skimming pricing.

If demand hardly changes with a small change in price, the demand is said to be ________.

What are the different forms of countertrade?

Which of the following would NOT be a consumer's reference price?

In high-low pricing, retailers charge low prices on an everyday basis with occasional price increases.

When examining products, consumers compare an observed price to an internal reference price they remember or an external frame of reference.

A company must consider the product's stage in the life cycle and its importance in the company's portfolio before responding to a competitor's price cut.

Everyday low pricing is most suitable if ________.

When hotels, motels, and airlines offer discounts in slow selling periods, they are said to be offering ________.

The airline and hospitality industries use ________, by which they offer discounted but limited early purchases, higher-priced late purchases, and the lowest rates on unsold inventory just before it expires.

Defining Marketing for the New Realities

Developing and Implementing Marketing Strategies and Plans

Capturing Marketing Insights and Forecasting Demand

Creating Long-Term Loyalty Relationships

Analyzing Consumer and Business Markets

Identifying Market Segments and Targets

Crafting the Brand Positioning and Competing Effectively

Creating Brand Equity and Driving Growth

Setting Product Strategy and Introducing New Offerings

Designing and Managing Services

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Digital Communications: Online, Social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Tapping Into Global Markets

Filters