Question 1

Which of the following is true of product bundle pricing?

Accepted Answer

A)  It promotes the sale of products that consumers might not otherwise buy. 
B)  It is used to set prices across an entire product range based on customer evaluations. 
C)  It forces customers to buy product parts that are only compatible with the main product. 
D)  It results in companies making fewer-though more profitable-sales. 
E)  It involves pricing the main product low and setting high markups on the supplies. 
A)  It promotes the sale of products that consumers might not otherwise buy. 
B)  It is used to set prices across an entire product range based on customer evaluations. 
C)  It forces customers to buy product parts that are only compatible with the main product. 
D)  It results in companies making fewer-though more profitable-sales. 
E)  It involves pricing the main product low and setting high markups on the supplies.

Question 2

A movie theater offers a reduced price for an afternoon showing of a film. This type of pricing is ________ pricing.

Accepted Answer

A)  location-based 
B)  customer-segmented 
C)  cost-based 
D)  product form 
E)  time-based 
A)  location-based 
B)  customer-segmented 
C)  cost-based 
D)  product form 
E)  time-based

Question 3

Which of the following is a price adjustment strategy that considers how a customer's perception of a product is influenced by its price?

Accepted Answer

A)  captive product pricing 
B)  psychological pricing 
C)  by-product pricing 
D)  promotional pricing 
E)  international pricing 
A)  captive product pricing 
B)  psychological pricing 
C)  by-product pricing 
D)  promotional pricing 
E)  international pricing

Question 4

Differentiate between dynamic and fixed pricing.

Accepted Answer

Throughout most of history, prices were

Question 5

A quantity discount is a price reduction for buyers who ________.

Accepted Answer

A)  buy merchandise out of season 
B)  buy merchandise in bulk 
C)  pay their bills on time 
D)  buy discontinued products 
E)  return old items while buying new ones 
A)  buy merchandise out of season 
B)  buy merchandise in bulk 
C)  pay their bills on time 
D)  buy discontinued products 
E)  return old items while buying new ones

Question 6

Companies need to respond to a competitor's price change if its own market share and profits will decrease because of the change.

Accepted Answer

A) True 
 B)False

Question 7

Reasons for a price increase include all of the following EXCEPT ________.

Accepted Answer

A)  a desire to improve profits 
B)  cost inflation 
C)  when the alternative is rationing of the product 
D)  decreasing gross margins 
E)  increasing supply of product 
A)  a desire to improve profits 
B)  cost inflation 
C)  when the alternative is rationing of the product 
D)  decreasing gross margins 
E)  increasing supply of product

Question 8

What is deceptive pricing?

Accepted Answer

Deceptive pricing occurs when

Question 9

The Internet offers ________, where the price can easily be adjusted to meet changes in demand.

Accepted Answer

A)  captive pricing 
B)  dynamic pricing 
C)  basing-point pricing 
D)  price bundling 
E)  cost-plus pricing 
A)  captive pricing 
B)  dynamic pricing 
C)  basing-point pricing 
D)  price bundling 
E)  cost-plus pricing

Question 10

Price discrimination is permissible if the seller manufactures different qualities of the same product for different retailers and can prove that the price difference is proportional.

Accepted Answer

A) True 
 B)False

Question 11

By definition, ________ pricing is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost.

Accepted Answer

A)  segmented 
B)  variable 
C)  flexible 
D)  cost-plus 
E)  reference 
A)  segmented 
B)  variable 
C)  flexible 
D)  cost-plus 
E)  reference

Question 12

Which of the following likely does NOT play into products being offered for different prices in different countries?

Accepted Answer

A)  additional costs of operations 
B)  product commonality 
C)  physical distribution 
D)  shipping and insurance 
E)  exchange-rate fluctuations 
A)  additional costs of operations 
B)  product commonality 
C)  physical distribution 
D)  shipping and insurance 
E)  exchange-rate fluctuations

Question 13

List four types of segmented pricing.

Accepted Answer

Four types of segmented pricin

Question 14

Low-interest financing and longer warranties are both examples of ________ pricing.

Accepted Answer

A)  segmented 
B)  promotional 
C)  product bundling 
D)  captive product 
E)  product form 
A)  segmented 
B)  promotional 
C)  product bundling 
D)  captive product 
E)  product form

Question 15

Marketing a product internationally rarely requires a product to be priced differently depending on the country.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following would most likely lead to a company initiating a price increase?

Accepted Answer

A)  weakened economy 
B)  possession of outdated merchandise 
C)  excess capacity 
D)  over-demand 
E)  possession of defective merchandise 
A)  weakened economy 
B)  possession of outdated merchandise 
C)  excess capacity 
D)  over-demand 
E)  possession of defective merchandise

Question 17

When faced with a competitor who has cut its product's price, which of the following is the most cost-effective way for a company to maintain its own price but raise the perceived value of its offer?

Accepted Answer

A)  by improving the quality of the product 
B)  by introducing a higher-priced premium brand 
C)  by altering the company's marketing communications 
D)  by bundling the offer with add-ons 
E)  by distributing the product through less costly channels 
A)  by improving the quality of the product 
B)  by introducing a higher-priced premium brand 
C)  by altering the company's marketing communications 
D)  by bundling the offer with add-ons 
E)  by distributing the product through less costly channels

Question 18

Some industries commonly use two-part pricing, breaking the price down into a fixed fee and a fixed usage rate.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is used in an attempt to dominate the market through a pricing strategy?

Accepted Answer

A)  price increase 
B)  match competitors' pricing 
C)  price cuts 
D)  quantity discounts 
E)  custom prices 
A)  price increase 
B)  match competitors' pricing 
C)  price cuts 
D)  quantity discounts 
E)  custom prices

Question 20

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products, the manufacturer is able to reduce the main product's price to make it more competitive.

Accepted Answer

A) True 
 B)False

Which of the following is true of product bundle pricing?

A movie theater offers a reduced price for an afternoon showing of a film. This type of pricing is ________ pricing.

Which of the following is a price adjustment strategy that considers how a customer's perception of a product is influenced by its price?

Differentiate between dynamic and fixed pricing.

A quantity discount is a price reduction for buyers who ________.

Companies need to respond to a competitor's price change if its own market share and profits will decrease because of the change.

Reasons for a price increase include all of the following EXCEPT ________.

What is deceptive pricing?

The Internet offers ________, where the price can easily be adjusted to meet changes in demand.

Price discrimination is permissible if the seller manufactures different qualities of the same product for different retailers and can prove that the price difference is proportional.

By definition, ________ pricing is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost.

Which of the following likely does NOT play into products being offered for different prices in different countries?

List four types of segmented pricing.

Low-interest financing and longer warranties are both examples of ________ pricing.

Marketing a product internationally rarely requires a product to be priced differently depending on the country.

Which of the following would most likely lead to a company initiating a price increase?

When faced with a competitor who has cut its product's price, which of the following is the most cost-effective way for a company to maintain its own price but raise the perceived value of its offer?

Some industries commonly use two-part pricing, breaking the price down into a fixed fee and a fixed usage rate.

Which of the following is used in an attempt to dominate the market through a pricing strategy?

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products, the manufacturer is able to reduce the main product's price to make it more competitive.

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Buyer Behavior

Business Markets and Business Buyer Behavior

Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Pricing: Understanding and Capturing Customer Value

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters

Exam 11: Pricing Strategies: Additional Considerations

Which of the following is true of product bundle pricing?

A movie theater offers a reduced price for an afternoon showing of a film. This type of pricing is ________ pricing.

Which of the following is a price adjustment strategy that considers how a customer's perception of a product is influenced by its price?

Differentiate between dynamic and fixed pricing.

A quantity discount is a price reduction for buyers who ________.

Companies need to respond to a competitor's price change if its own market share and profits will decrease because of the change.

Reasons for a price increase include all of the following EXCEPT ________.

What is deceptive pricing?

The Internet offers ________, where the price can easily be adjusted to meet changes in demand.

Price discrimination is permissible if the seller manufactures different qualities of the same product for different retailers and can prove that the price difference is proportional.

By definition, ________ pricing is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost.

Which of the following likely does NOT play into products being offered for different prices in different countries?

List four types of segmented pricing.

Low-interest financing and longer warranties are both examples of ________ pricing.

Marketing a product internationally rarely requires a product to be priced differently depending on the country.

Which of the following would most likely lead to a company initiating a price increase?

When faced with a competitor who has cut its product's price, which of the following is the most cost-effective way for a company to maintain its own price but raise the perceived value of its offer?

Some industries commonly use two-part pricing, breaking the price down into a fixed fee and a fixed usage rate.

Which of the following is used in an attempt to dominate the market through a pricing strategy?

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products, the manufacturer is able to reduce the main product's price to make it more competitive.

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Buyer Behavior

Business Markets and Business Buyer Behavior

Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Pricing: Understanding and Capturing Customer Value

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters