Question 1

Which of the following is an inappropriate pricing objective for a not-for-profit organization?

Accepted Answer

A)  providing market incentives 
B)  profit maximization 
C)  cost recovery 
D)  industry domination 
A)  providing market incentives 
B)  profit maximization 
C)  cost recovery 
D)  industry domination

Question 2

What are the two common cost-oriented pricing methods?

Accepted Answer

A)  marginal cost and marginal revenue pricing 
B)  full-cost and incremental-cost pricing 
C)  markup and markdown pricing 
D)  profitability and volume pricing 
A)  marginal cost and marginal revenue pricing 
B)  full-cost and incremental-cost pricing 
C)  markup and markdown pricing 
D)  profitability and volume pricing

Question 3

What did the Profit Impact of Market Strategies Project (PIMS) reveal were the two most important factors influencing profitability?

Accepted Answer

A)  sales cost and market demand 
B)  product quality and market share 
C)  profit margin and market share 
D)  profit maximization and competition 
A)  sales cost and market demand 
B)  product quality and market share 
C)  profit margin and market share 
D)  profit maximization and competition

Question 4

Under competitive pricing, when firms follow suit after a competitor has lowered its price, the price cut will leave all competitors with less revenue unless the lower price attracts new customers and expands the overall market enough to offset the per-unit loss of revenue.

Accepted Answer

A) True 
 B)False

Question 5

Buyers of a particular new car model are being offered 0 percent financing.This is an example of a promotional allowance.

Accepted Answer

A) True 
 B)False

Question 6

Elasticity is the measure of the responsiveness of purchasers and suppliers to quantity changes.

Accepted Answer

A) True 
 B)False

Question 7

What is the pricing strategy that offers prices that are consistently lower than those of competitors?

Accepted Answer

A)  penetration 
B)  skimming 
C)  everyday low 
D)  competitive 
A)  penetration 
B)  skimming 
C)  everyday low 
D)  competitive

Question 8

Based on marketing objectives, what is the general guideline called that is intended for use in specific pricing decisions?

Accepted Answer

A)  a product line 
B)  a pricing policy 
C)  a structure of prices 
D)  strategic pricing 
A)  a product line 
B)  a pricing policy 
C)  a structure of prices 
D)  strategic pricing

Question 9

What does pricing a product "Free of Board plant" or "Free on Board origin" mean?

Accepted Answer

A)  the buyer pays all shipping charges from the manufacturer's dock. 
B)  the same total price is quoted to all customers, including transportation 
C)  dividing the market into different regions with a different price being charged in each 
D)  list price at the factory plus freight charges 
A)  the buyer pays all shipping charges from the manufacturer's dock. 
B)  the same total price is quoted to all customers, including transportation 
C)  dividing the market into different regions with a different price being charged in each 
D)  list price at the factory plus freight charges

Question 10

Which of the following BEST describes customary prices?

Accepted Answer

A)  prices offered at the wholesale level as an incentive to buyers to purchase a specific product 
B)  retail prices that consumers expect to pay as the result of social habit or tradition 
C)  prices that are adjusted to the different geographic areas in which the products are sold 
D)  prices designed to constrain the amounts sold to a level desired by government 
A)  prices offered at the wholesale level as an incentive to buyers to purchase a specific product 
B)  retail prices that consumers expect to pay as the result of social habit or tradition 
C)  prices that are adjusted to the different geographic areas in which the products are sold 
D)  prices designed to constrain the amounts sold to a level desired by government

Question 11

Profit is maximized when marginal revenue exceeds marginal cost.

Accepted Answer

A) True 
 B)False

Question 12

How does unit pricing state its price?

Accepted Answer

A)  displayed in even dollar units, such as $5 or $8 
B)  the opposite of odd pricing 
C)  the same as uniform-delivered pricing 
D)  in terms of quantities of measure 
A)  displayed in even dollar units, such as $5 or $8 
B)  the opposite of odd pricing 
C)  the same as uniform-delivered pricing 
D)  in terms of quantities of measure

Question 13

The Profit Impact of Marketing Strategies project (PIMS) analysis shows the relationship between market share and profits, as measured by return on investment (ROI); in short, the higher the market share of a company, the higher will be the ROI earned by the company.

Accepted Answer

A) True 
 B)False

Question 14

What is a one-time reduction in list price, typically offered at time of sale, referred to as?

Accepted Answer

A)  an allowance 
B)  a rebate 
C)  a noncumulative discount 
D)  a cumulative discount 
A)  an allowance 
B)  a rebate 
C)  a noncumulative discount 
D)  a cumulative discount

Question 15

What type of discount is given off the list price for prompt payment of the invoice?

Accepted Answer

A)  cash 
B)  trade 
C)  quantity 
D)  functional 
A)  cash 
B)  trade 
C)  quantity 
D)  functional

Question 16

Demand for products considered necessities will tend to be inelastic across wide ranges of price.

Accepted Answer

A) True 
 B)False

Question 17

Why does transfer pricing become especially complex when the global market is involved?

Accepted Answer

A)  because a global firm can use transfer pricing as a tax-avoidance device and governments dislike such activities 
B)  because issues of quality control can be serious, even when divisions of the same firm are involved 
C)  because shipping materials across national lines involves payment of duties and taxes, and these become part of the total price of the goods 
D)  because the temperature and humidity differences between origins and destinations often damage the products 
A)  because a global firm can use transfer pricing as a tax-avoidance device and governments dislike such activities 
B)  because issues of quality control can be serious, even when divisions of the same firm are involved 
C)  because shipping materials across national lines involves payment of duties and taxes, and these become part of the total price of the goods 
D)  because the temperature and humidity differences between origins and destinations often damage the products

Question 18

Skimming pricing strategies are also known as "market-plus pricing."

Accepted Answer

A) True 
 B)False

Question 19

What type of demand for a product would penetration pricing work BEST for?

Accepted Answer

A)  elastic 
B)  highly elastic 
C)  inelastic 
D)  highly inelastic 
A)  elastic 
B)  highly elastic 
C)  inelastic 
D)  highly inelastic

Question 20

An internal transfer price is the price for sending goods from one profit centre within the company to another.

Accepted Answer

A) True 
 B)False

Which of the following is an inappropriate pricing objective for a not-for-profit organization?

What are the two common cost-oriented pricing methods?

What did the Profit Impact of Market Strategies Project (PIMS) reveal were the two most important factors influencing profitability?

Under competitive pricing, when firms follow suit after a competitor has lowered its price, the price cut will leave all competitors with less revenue unless the lower price attracts new customers and expands the overall market enough to offset the per-unit loss of revenue.

Buyers of a particular new car model are being offered 0 percent financing.This is an example of a promotional allowance.

Elasticity is the measure of the responsiveness of purchasers and suppliers to quantity changes.

What is the pricing strategy that offers prices that are consistently lower than those of competitors?

Based on marketing objectives, what is the general guideline called that is intended for use in specific pricing decisions?

What does pricing a product "Free of Board plant" or "Free on Board origin" mean?

Which of the following BEST describes customary prices?

Profit is maximized when marginal revenue exceeds marginal cost.

How does unit pricing state its price?

The Profit Impact of Marketing Strategies project (PIMS) analysis shows the relationship between market share and profits, as measured by return on investment (ROI); in short, the higher the market share of a company, the higher will be the ROI earned by the company.

What is a one-time reduction in list price, typically offered at time of sale, referred to as?

What type of discount is given off the list price for prompt payment of the invoice?

Demand for products considered necessities will tend to be inelastic across wide ranges of price.

Why does transfer pricing become especially complex when the global market is involved?

Skimming pricing strategies are also known as "market-plus pricing."

What type of demand for a product would penetration pricing work BEST for?

An internal transfer price is the price for sending goods from one profit centre within the company to another.

Marketing: The Art and Science of Satisfying Customers

Strategic Planning in Contemporary Marketing

The Marketing Environment, Ethics, and Social Responsibility

Consumer Behaviour

Business-to-Business (B2B) Marketing

Serving Global Markets

Marketing Research, Decision Support Systems, and Sales Forecasting

Market Segmentation, Targeting, and Positioning

Product and Service Strategies

Developing and Managing Brand and Product Strategies

Marketing Channels and Supply Chain Management

Retailers Wholesalers and Direct Marketers

Integrated Marketing Communications

Advertising and Digital Communications

Personal Selling and Sales Promotion

TB Boone 3Ce final

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Exam 16: Pricing Concepts and Strategies

Which of the following is an inappropriate pricing objective for a not-for-profit organization?

What are the two common cost-oriented pricing methods?

What did the Profit Impact of Market Strategies Project (PIMS) reveal were the two most important factors influencing profitability?

Under competitive pricing, when firms follow suit after a competitor has lowered its price, the price cut will leave all competitors with less revenue unless the lower price attracts new customers and expands the overall market enough to offset the per-unit loss of revenue.

Buyers of a particular new car model are being offered 0 percent financing.This is an example of a promotional allowance.

Elasticity is the measure of the responsiveness of purchasers and suppliers to quantity changes.

What is the pricing strategy that offers prices that are consistently lower than those of competitors?

Based on marketing objectives, what is the general guideline called that is intended for use in specific pricing decisions?

What does pricing a product "Free of Board plant" or "Free on Board origin" mean?

Which of the following BEST describes customary prices?

Profit is maximized when marginal revenue exceeds marginal cost.

How does unit pricing state its price?

The Profit Impact of Marketing Strategies project (PIMS) analysis shows the relationship between market share and profits, as measured by return on investment (ROI); in short, the higher the market share of a company, the higher will be the ROI earned by the company.

What is a one-time reduction in list price, typically offered at time of sale, referred to as?

What type of discount is given off the list price for prompt payment of the invoice?

Demand for products considered necessities will tend to be inelastic across wide ranges of price.

Why does transfer pricing become especially complex when the global market is involved?

Skimming pricing strategies are also known as "market-plus pricing."

What type of demand for a product would penetration pricing work BEST for?

An internal transfer price is the price for sending goods from one profit centre within the company to another.

Marketing: The Art and Science of Satisfying Customers

Strategic Planning in Contemporary Marketing

The Marketing Environment, Ethics, and Social Responsibility

Consumer Behaviour

Business-to-Business (B2B) Marketing

Serving Global Markets

Marketing Research, Decision Support Systems, and Sales Forecasting

Market Segmentation, Targeting, and Positioning

Product and Service Strategies

Developing and Managing Brand and Product Strategies

Marketing Channels and Supply Chain Management

Retailers Wholesalers and Direct Marketers

Integrated Marketing Communications

Advertising and Digital Communications

Personal Selling and Sales Promotion

TB Boone 3Ce final

Filters