Question 1

Which of the following product characteristics that affect pricing typically involves discounting products as they approach being no longer fit for a sale?

Accepted Answer

A)  Distinctiveness 
B)  Perishability 
C)  Durability 
D)  Stage in product life cycle 
A)  Distinctiveness 
B)  Perishability 
C)  Durability 
D)  Stage in product life cycle

Question 2

Which of the following describes an advantage associated with cost-oriented approaches to pricing?

Accepted Answer

A)  They provide a direct correlation of price to what people will be willing to pay for the product. 
B)  They clearly and adequately reflect competition. 
C)  They give adequate consideration to both supply and demand factors. 
D)  They are very simple to use and generally yield a good price decision. 
A)  They provide a direct correlation of price to what people will be willing to pay for the product. 
B)  They clearly and adequately reflect competition. 
C)  They give adequate consideration to both supply and demand factors. 
D)  They are very simple to use and generally yield a good price decision.

Question 3

Terrie went to the hardware store this morning to purchase a gallon of Roundup Weed-and-Grass killer for which she expected to pay about $15.She found a gallon of Roundup packaged with a quart of Weed-B-Gone,a new product claiming to kill weeds without destroying grass.Together they were priced at $17.This example would best describe _____ pricing.

Accepted Answer

A)  odd-even 
B)  prestige 
C)  bundle 
D)  cost-plus 
A)  odd-even 
B)  prestige 
C)  bundle 
D)  cost-plus

Question 4

A company might use penetration pricing when it:

Accepted Answer

A)  perceives demand for a new product to be price inelastic. 
B)  wants to charge a relatively high price on a new product. 
C)  expects competition to move in rapidly. 
D)  has a temporary monopoly in the market. 
A)  perceives demand for a new product to be price inelastic. 
B)  wants to charge a relatively high price on a new product. 
C)  expects competition to move in rapidly. 
D)  has a temporary monopoly in the market.

Question 5

Which of the following is a psychological factor relevant to pricing decisions of a bakery?

Accepted Answer

A)  How many loaves of bread will a potential buyer consume every month? 
B)  Are the orders coming from households or sandwich shops? 
C)  Will a low price indicate inferior quality to the potential buyer? 
D)  How many potential buyers for multigrain bread are there? 
A)  How many loaves of bread will a potential buyer consume every month? 
B)  Are the orders coming from households or sandwich shops? 
C)  Will a low price indicate inferior quality to the potential buyer? 
D)  How many potential buyers for multigrain bread are there?

Question 6

In which stage of the general pricing model do marketers estimate how much of a particular product the target market will purchase at various price levels?

Accepted Answer

A)  Analyze profit potential 
B)  Evaluate product-price relationships 
C)  Set initial price structure 
D)  Estimate costs and other price limitations 
A)  Analyze profit potential 
B)  Evaluate product-price relationships 
C)  Set initial price structure 
D)  Estimate costs and other price limitations

Question 7

Which of the following is a type of cost-oriented pricing?

Accepted Answer

A)  Odd pricing 
B)  Bundle pricing 
C)  Rate-of-return pricing 
D)  Prestige pricing 
A)  Odd pricing 
B)  Bundle pricing 
C)  Rate-of-return pricing 
D)  Prestige pricing

Question 8

Which of the following is a common pricing objective?

Accepted Answer

A)  Pricing to meet or prevent competition 
B)  Pricing to reduce inventory costs 
C)  Pricing to maximize short-term profits 
D)  Pricing to increase prestige of the product 
A)  Pricing to meet or prevent competition 
B)  Pricing to reduce inventory costs 
C)  Pricing to maximize short-term profits 
D)  Pricing to increase prestige of the product

Question 9

Which of the following is the primary law that is used to protect consumers from price fixing?

Accepted Answer

A)  Sherman Antitrust Act 
B)  Robinson-Patman Act 
C)  Taft-Hartley Act 
D)  Clayton Act 
A)  Sherman Antitrust Act 
B)  Robinson-Patman Act 
C)  Taft-Hartley Act 
D)  Clayton Act

Question 10

A razor manufacturer introduced its new three-blade razor at a very low price to encourage more consumers to purchase it and to discourage competition.This is an example of _____ pricing.

Accepted Answer

A)  penetration 
B)  cost-plus 
C)  going-rate 
D)  markdown 
A)  penetration 
B)  cost-plus 
C)  going-rate 
D)  markdown

Question 11

Which of the following is a type of psychological pricing strategy?

Accepted Answer

A)  Cost-plus pricing 
B)  Rate-of-return pricing 
C)  Markup pricing 
D)  Odd-even pricing 
A)  Cost-plus pricing 
B)  Rate-of-return pricing 
C)  Markup pricing 
D)  Odd-even pricing

Question 12

Which of the following is an environmental influence in pricing decisions?

Accepted Answer

A)  Price elasticity 
B)  Government regulations 
C)  Demographic conditions 
D)  Psychological factors 
A)  Price elasticity 
B)  Government regulations 
C)  Demographic conditions 
D)  Psychological factors

Question 13

A gas station in South San Francisco charges $4.29 instead of $4.30 for regular gas and $4.79 instead of $4.80 for premium gas to make the prices look less expensive.This is an example of _____ pricing.

Accepted Answer

A)  prestige 
B)  bundle 
C)  markup 
D)  odd-even 
A)  prestige 
B)  bundle 
C)  markup 
D)  odd-even

Question 14

For which of the following products is a retailer most likely to use prestige pricing?

Accepted Answer

A)  Plastic storage containers 
B)  Fresh fruits 
C)  Frozen desserts 
D)  Crystal wine glasses 
A)  Plastic storage containers 
B)  Fresh fruits 
C)  Frozen desserts 
D)  Crystal wine glasses

Question 15

Which of the following is most likely to be a reason for a firm to price a product above competition?

Accepted Answer

A)  The firm is selling a homogenous product. 
B)  Demand for the product is price elastic. 
C)  The firm is a price leader in the industry. 
D)  This approach represents the collective wisdom of the industry. 
A)  The firm is selling a homogenous product. 
B)  Demand for the product is price elastic. 
C)  The firm is a price leader in the industry. 
D)  This approach represents the collective wisdom of the industry.

Question 16

Which of the following is a psychological factor affecting pricing decisions?

Accepted Answer

A)  Expected consumption rates of potential buyers 
B)  Location of potential buyers 
C)  Use of price as an indicator of quality by potential buyers 
D)  Economic strength of potential buyers 
A)  Expected consumption rates of potential buyers 
B)  Location of potential buyers 
C)  Use of price as an indicator of quality by potential buyers 
D)  Economic strength of potential buyers

Question 17

Hertz economy cars are rented for $129 rather than $130 to appear less expensive.This is an example of _____ pricing.

Accepted Answer

A)  prestige 
B)  bundle 
C)  markup 
D)  odd-even 
A)  prestige 
B)  bundle 
C)  markup 
D)  odd-even

Question 18

Which of the following is true about bundle pricing?

Accepted Answer

A)  Prices are set a few dollars or a few cents below a round number to encourage the customers to think of the products as less expensive. 
B)  A percentage is added to the retailer's invoice price to determine the final selling price of the product. 
C)  Several products are sold together at a single price to connote value and convenience for customers. 
D)  It is used most often to describe the pricing of jobs that are nonroutine and difficult to "cost" in advance 
A)  Prices are set a few dollars or a few cents below a round number to encourage the customers to think of the products as less expensive. 
B)  A percentage is added to the retailer's invoice price to determine the final selling price of the product. 
C)  Several products are sold together at a single price to connote value and convenience for customers. 
D)  It is used most often to describe the pricing of jobs that are nonroutine and difficult to "cost" in advance

Question 19

Printers Cove Inc.is an online retailer of printers and accessories.A recent ad on their Web site reads: "Buy a compact photo printer and single-use color cartridge combo and save 30 percent off retail prices.Limited period offer.Act now." This is an example of _____ pricing.

Accepted Answer

A)  odd-even 
B)  prestige 
C)  bundle 
D)  rate of return 
A)  odd-even 
B)  prestige 
C)  bundle 
D)  rate of return

Question 20

_____ is an example of pricing below the competition.

Accepted Answer

A)  Cost-minus pricing 
B)  Bundle pricing 
C)  Penetration pricing 
D)  Sealed-bid pricing 
A)  Cost-minus pricing 
B)  Bundle pricing 
C)  Penetration pricing 
D)  Sealed-bid pricing

Which of the following product characteristics that affect pricing typically involves discounting products as they approach being no longer fit for a sale?

Which of the following describes an advantage associated with cost-oriented approaches to pricing?

A company might use penetration pricing when it:

Which of the following is a psychological factor relevant to pricing decisions of a bakery?

In which stage of the general pricing model do marketers estimate how much of a particular product the target market will purchase at various price levels?

Which of the following is a type of cost-oriented pricing?

Which of the following is a common pricing objective?

Which of the following is the primary law that is used to protect consumers from price fixing?

A razor manufacturer introduced its new three-blade razor at a very low price to encourage more consumers to purchase it and to discourage competition.This is an example of _____ pricing.

Which of the following is a type of psychological pricing strategy?

Which of the following is an environmental influence in pricing decisions?

A gas station in South San Francisco charges $4.29 instead of $4.30 for regular gas and $4.79 instead of $4.80 for premium gas to make the prices look less expensive.This is an example of _____ pricing.

For which of the following products is a retailer most likely to use prestige pricing?

Which of the following is most likely to be a reason for a firm to price a product above competition?

Which of the following is a psychological factor affecting pricing decisions?

Hertz economy cars are rented for $129 rather than $130 to appear less expensive.This is an example of _____ pricing.

Which of the following is true about bundle pricing?

Printers Cove Inc.is an online retailer of printers and accessories.A recent ad on their Web site reads: "Buy a compact photo printer and single-use color cartridge combo and save 30 percent off retail prices.Limited period offer.Act now." This is an example of _____ pricing.

_____ is an example of pricing below the competition.

Strategic Planning and the Marketing Management Process

Marketing Research: Process and Systems for Decision Making

Consumer Behavior

Business, Government, and Institutional Buying

Market Segmentation

Product and Brand Strategy

New Product Planning and Development

Integrated Marketing Communications

Personal Selling, Relationship Building, and Sales Management

Distribution Strategy

The Marketing of Services

Global Marketing

Portfolio Models

Filters

Exam 11: Pricing Strategy

Which of the following product characteristics that affect pricing typically involves discounting products as they approach being no longer fit for a sale?

Which of the following describes an advantage associated with cost-oriented approaches to pricing?

A company might use penetration pricing when it:

Which of the following is a psychological factor relevant to pricing decisions of a bakery?

In which stage of the general pricing model do marketers estimate how much of a particular product the target market will purchase at various price levels?

Which of the following is a type of cost-oriented pricing?

Which of the following is a common pricing objective?

Which of the following is the primary law that is used to protect consumers from price fixing?

A razor manufacturer introduced its new three-blade razor at a very low price to encourage more consumers to purchase it and to discourage competition.This is an example of _____ pricing.

Which of the following is a type of psychological pricing strategy?

Which of the following is an environmental influence in pricing decisions?

A gas station in South San Francisco charges $4.29 instead of $4.30 for regular gas and $4.79 instead of $4.80 for premium gas to make the prices look less expensive.This is an example of _____ pricing.

For which of the following products is a retailer most likely to use prestige pricing?

Which of the following is most likely to be a reason for a firm to price a product above competition?

Which of the following is a psychological factor affecting pricing decisions?

Hertz economy cars are rented for $129 rather than $130 to appear less expensive.This is an example of _____ pricing.

Which of the following is true about bundle pricing?

Printers Cove Inc.is an online retailer of printers and accessories.A recent ad on their Web site reads: "Buy a compact photo printer and single-use color cartridge combo and save 30 percent off retail prices.Limited period offer.Act now." This is an example of _____ pricing.

_____ is an example of pricing below the competition.

Strategic Planning and the Marketing Management Process

Marketing Research: Process and Systems for Decision Making

Consumer Behavior

Business, Government, and Institutional Buying

Market Segmentation

Product and Brand Strategy

New Product Planning and Development

Integrated Marketing Communications

Personal Selling, Relationship Building, and Sales Management

Distribution Strategy

The Marketing of Services

Global Marketing

Portfolio Models

Filters