Question 1

Protectnow,Inc.is a company that sells insurance.Which of the following is an example of a psychological factor relevant to Protectnow's pricing decisions?

Accepted Answer

A)  The position of its potential buyers 
B)  The expected number of insurances it will sell in the next fiscal year 
C)  The economic strength of its potential buyers 
D)  The prestige orientation of its potential buyers 
A)  The position of its potential buyers 
B)  The expected number of insurances it will sell in the next fiscal year 
C)  The economic strength of its potential buyers 
D)  The prestige orientation of its potential buyers

Question 2

Marking merchandise with an exceptionally high price and then claiming that the lower selling price actually used represents a legitimate price reduction,is an example of _____ pricing.

Accepted Answer

A)  deceptive 
B)  odd-even 
C)  predatory 
D)  markup 
A)  deceptive 
B)  odd-even 
C)  predatory 
D)  markup

Question 3

Which of the following types of discounts is offered to channel members for purchasing and marketing a large number of units?

Accepted Answer

A)  Quantity discount 
B)  Promotional discount 
C)  Slotting discount 
D)  Loyalty discount 
A)  Quantity discount 
B)  Promotional discount 
C)  Slotting discount 
D)  Loyalty discount

Question 4

General Electric Company and De Beers Centenary AG were charged for conspiring to keep the end-user price for industrial diamonds artificially high.In other words,the two companies were charged for _____.

Accepted Answer

A)  price discrimination 
B)  price fixing 
C)  predatory pricing 
D)  deceptive pricing 
A)  price discrimination 
B)  price fixing 
C)  predatory pricing 
D)  deceptive pricing

Question 5

Which of the following is true about markup 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 6

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

Question 7

It is common for the manufacturer of a new product to have to pay a retailer $30,000 in order to get the shelf space needed to sell its new product in a particular retail establishment.This $30,000 fee is an example of a _____ allowance.

Accepted Answer

A)  slotting 
B)  promotional 
C)  quantity 
D)  functional 
A)  slotting 
B)  promotional 
C)  quantity 
D)  functional

Question 8

Which of the following is NOT a commonly used pricing objective?

Accepted Answer

A)  Establishing price leadership for new products 
B)  Stabilization of price and margin 
C)  Pricing to prevent competition 
D)  Pricing to achieve a target market share 
A)  Establishing price leadership for new products 
B)  Stabilization of price and margin 
C)  Pricing to prevent competition 
D)  Pricing to achieve a target market share

Question 9

Fone Inc.is about to launch the latest version of its smartphone.As part of its pricing strategy,it is analyzing the economic strength of its potential buyers.Which of the following factors influencing pricing decisions is Fone concerned with?

Accepted Answer

A)  Psychological factors 
B)  Environmental factors 
C)  Demographic factors 
D)  Price elasticity 
A)  Psychological factors 
B)  Environmental factors 
C)  Demographic factors 
D)  Price elasticity

Question 10

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

Accepted Answer

A)  Odd pricing 
B)  Bundle pricing 
C)  Markup pricing 
D)  Prestige pricing 
A)  Odd pricing 
B)  Bundle pricing 
C)  Markup pricing 
D)  Prestige pricing

Question 11

Which of the following is NOT a basic value position?

Accepted Answer

A)  A product could be priced relatively high for a product class because it offers value in the form of high quality. 
B)  A product could be priced at about average for the product class because it offers value in the form of good quality for a reasonable price. 
C)  A product could be priced relatively low for a product class because it offers value in the form of acceptable quality at a low price. 
D)  A product could be priced low for a product class because it offers value in the form of high quality at a substantially low price. 
A)  A product could be priced relatively high for a product class because it offers value in the form of high quality. 
B)  A product could be priced at about average for the product class because it offers value in the form of good quality for a reasonable price. 
C)  A product could be priced relatively low for a product class because it offers value in the form of acceptable quality at a low price. 
D)  A product could be priced low for a product class because it offers value in the form of high quality at a substantially low price.

Question 12

Which of the following is an example of an environmental influence on pricing decisions?

Accepted Answer

A)  The cost structure used by competitors 
B)  The stage of the life cycle a product is in 
C)  Rate-of-return pricing used by manufacturers 
D)  The economic strength of potential buyers 
A)  The cost structure used by competitors 
B)  The stage of the life cycle a product is in 
C)  Rate-of-return pricing used by manufacturers 
D)  The economic strength of potential buyers

Question 13

Which of the following is an example of a demographic factor that is significant to the pricing decisions of a new type of low-fat cereal for children?

Accepted Answer

A)  How many boxes of the low-fat cereal will be consumed by a household in a month? 
B)  What price will indicate the quality of the cereal? 
C)  Are potential buyers of the cereal prestige oriented? 
D)  Will potential buyers be attracted to the cereal if its manufacturer uses odd pricing? 
A)  How many boxes of the low-fat cereal will be consumed by a household in a month? 
B)  What price will indicate the quality of the cereal? 
C)  Are potential buyers of the cereal prestige oriented? 
D)  Will potential buyers be attracted to the cereal if its manufacturer uses odd pricing?

Question 14

Which of the following is a common pricing objective?

Accepted Answer

A)  Pricing to maximize short-term profits 
B)  Pricing to achieve a target return on investment 
C)  Pricing to reduce inventory costs 
D)  Pricing to increase prestige of the product 
A)  Pricing to maximize short-term profits 
B)  Pricing to achieve a target return on investment 
C)  Pricing to reduce inventory costs 
D)  Pricing to increase prestige of the product

Question 15

Both Tonya and Edna went to buy a black sweater.Edna bought hers from Dillard's for $79.Tonya bought a similar one at Sears and paid $34.95.Edna is convinced her sweater is much superior to Tonya's because it is more expensive.Which of the following is the psychological factor that makes Edna buy such high-priced items?

Accepted Answer

A)  The use of odd pricing which made Edna feel like she got more for her money 
B)  The use of prestige pricing which means the high price was used to signal high quality 
C)  The use of bundle pricing which stresses both value and convenience to Edna and validates the high price of the sweater 
D)  The use of price elasticity which determines Edna's and Tonya's price sensitivity 
A)  The use of odd pricing which made Edna feel like she got more for her money 
B)  The use of prestige pricing which means the high price was used to signal high quality 
C)  The use of bundle pricing which stresses both value and convenience to Edna and validates the high price of the sweater 
D)  The use of price elasticity which determines Edna's and Tonya's price sensitivity

Question 16

Deceptive pricing practices are outlawed under the _____ Act.

Accepted Answer

A)  Federal Trade Commission 
B)  Sherman-Antitrust 
C)  Taft-Hartley 
D)  Fair Pricing 
A)  Federal Trade Commission 
B)  Sherman-Antitrust 
C)  Taft-Hartley 
D)  Fair Pricing

Question 17

Which of the following factors related to pricing is concerned primarily with how consumers perceive various prices or price changes?

Accepted Answer

A)  Environmental factors 
B)  Psychological factors 
C)  Demographic factors 
D)  Sociological factors 
A)  Environmental factors 
B)  Psychological factors 
C)  Demographic factors 
D)  Sociological factors

Question 18

When Lucile went to buy some bedding plants for a flowerbed she was building,she noticed that a six-pack of plants was for $0.79,a 3-inch container with one plant was for $0.99,and a 5-inch container was for $1.29.This example indicates that the seller is using _____ pricing.

Accepted Answer

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

Question 19

Which of the following is a common pricing objective?

Accepted Answer

A)  Pricing to maximize short-term profits 
B)  Pricing to reduce inventory costs 
C)  Pricing to achieve a target market share 
D)  Pricing to increase prestige of the product 
A)  Pricing to maximize short-term profits 
B)  Pricing to reduce inventory costs 
C)  Pricing to achieve a target market share 
D)  Pricing to increase prestige of the product

Question 20

_____ allowances are payments to retailers to get them to stock items on their shelves which in turn can increase sales but also add marketing cost to the manufacturer and affect profits.

Accepted Answer

A)  Quantity 
B)  Consumer 
C)  Slotting 
D)  Promotional 
A)  Quantity 
B)  Consumer 
C)  Slotting 
D)  Promotional

Protectnow,Inc.is a company that sells insurance.Which of the following is an example of a psychological factor relevant to Protectnow's pricing decisions?

Marking merchandise with an exceptionally high price and then claiming that the lower selling price actually used represents a legitimate price reduction,is an example of _____ pricing.

Which of the following types of discounts is offered to channel members for purchasing and marketing a large number of units?

General Electric Company and De Beers Centenary AG were charged for conspiring to keep the end-user price for industrial diamonds artificially high.In other words,the two companies were charged for _____.

Which of the following is true about markup pricing?

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

It is common for the manufacturer of a new product to have to pay a retailer $30,000 in order to get the shelf space needed to sell its new product in a particular retail establishment.This $30,000 fee is an example of a _____ allowance.

Which of the following is NOT a commonly used pricing objective?

Fone Inc.is about to launch the latest version of its smartphone.As part of its pricing strategy,it is analyzing the economic strength of its potential buyers.Which of the following factors influencing pricing decisions is Fone concerned with?

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

Which of the following is NOT a basic value position?

Which of the following is an example of an environmental influence on pricing decisions?

Which of the following is an example of a demographic factor that is significant to the pricing decisions of a new type of low-fat cereal for children?

Which of the following is a common pricing objective?

Deceptive pricing practices are outlawed under the _____ Act.

Which of the following factors related to pricing is concerned primarily with how consumers perceive various prices or price changes?

When Lucile went to buy some bedding plants for a flowerbed she was building,she noticed that a six-pack of plants was for $0.79,a 3-inch container with one plant was for $0.99,and a 5-inch container was for $1.29.This example indicates that the seller is using _____ pricing.

Which of the following is a common pricing objective?

_____ allowances are payments to retailers to get them to stock items on their shelves which in turn can increase sales but also add marketing cost to the manufacturer and affect profits.

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

Protectnow,Inc.is a company that sells insurance.Which of the following is an example of a psychological factor relevant to Protectnow's pricing decisions?

Marking merchandise with an exceptionally high price and then claiming that the lower selling price actually used represents a legitimate price reduction,is an example of _____ pricing.

Which of the following types of discounts is offered to channel members for purchasing and marketing a large number of units?

General Electric Company and De Beers Centenary AG were charged for conspiring to keep the end-user price for industrial diamonds artificially high.In other words,the two companies were charged for _____.

Which of the following is true about markup pricing?

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

It is common for the manufacturer of a new product to have to pay a retailer $30,000 in order to get the shelf space needed to sell its new product in a particular retail establishment.This $30,000 fee is an example of a _____ allowance.

Which of the following is NOT a commonly used pricing objective?

Fone Inc.is about to launch the latest version of its smartphone.As part of its pricing strategy,it is analyzing the economic strength of its potential buyers.Which of the following factors influencing pricing decisions is Fone concerned with?

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

Which of the following is NOT a basic value position?

Which of the following is an example of an environmental influence on pricing decisions?

Which of the following is an example of a demographic factor that is significant to the pricing decisions of a new type of low-fat cereal for children?

Which of the following is a common pricing objective?

Deceptive pricing practices are outlawed under the _____ Act.

Which of the following factors related to pricing is concerned primarily with how consumers perceive various prices or price changes?

When Lucile went to buy some bedding plants for a flowerbed she was building,she noticed that a six-pack of plants was for $0.79,a 3-inch container with one plant was for $0.99,and a 5-inch container was for $1.29.This example indicates that the seller is using _____ pricing.

Which of the following is a common pricing objective?

_____ allowances are payments to retailers to get them to stock items on their shelves which in turn can increase sales but also add marketing cost to the manufacturer and affect profits.

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