Question 1

Which of the following observations is true?

Accepted Answer

A)  Market share objectives and straight sales growth objectives have similar limitations. 
B)  A larger market share, gained at whatever price, leads to sustainable competitive advantage. 
C)  Market share objectives are not popular among modern managers. 
D)  Sales growth essentially means bigger profits. 
E)  A sales-oriented objective does not refer to profit. 
A)  Market share objectives and straight sales growth objectives have similar limitations. 
B)  A larger market share, gained at whatever price, leads to sustainable competitive advantage. 
C)  Market share objectives are not popular among modern managers. 
D)  Sales growth essentially means bigger profits. 
E)  A sales-oriented objective does not refer to profit.

Question 2

Not taking advantage of cash discounts may have the same effect as paying a fairly large "interest charge."

Accepted Answer

A) True 
 B)False

Question 3

A government agency charges motorists a toll for using a bridge. The toll is dropped when the cost of the bridge is paid. In other words, the government's target return figure was

Accepted Answer

A)  twenty percent. 
B)  one. 
C)  ten percent. 
D)  hundred percent. 
E)  zero. 
A)  twenty percent. 
B)  one. 
C)  ten percent. 
D)  hundred percent. 
E)  zero.

Question 4

The sales analysis of a product revealed that profits were highest when it was initially introduced into the market with a high selling price. However, the price was gradually reduced as it started facing competition as substitutes entered the market. This is an example of a(n) _____.

Accepted Answer

A)  introductory price dealing 
B)  temporary price cut policy 
C)  skimming price policy 
D)  penetration price policy 
E)  one price policy 
A)  introductory price dealing 
B)  temporary price cut policy 
C)  skimming price policy 
D)  penetration price policy 
E)  one price policy

Question 5

At Priceline's website, visitors can specify the desired price they're willing to pay for a hotel in Chicago. Priceline then electronically forwards the price to hotels until one accepts the offer. What pricing policy is Priceline using?

Accepted Answer

A)  Introductory price 
B)  Bundle price 
C)  Cash discount price 
D)  Quantity discount price 
E)  Flexible price 
A)  Introductory price 
B)  Bundle price 
C)  Cash discount price 
D)  Quantity discount price 
E)  Flexible price

Question 6

When Apple first introduced its iPhone in the U.S. market, it priced it at $600. Several months later, Apple reduced the price to $400. And several months after that, it reduced the price again to $200. What pricing policy was Apple using in its initial price strategy?

Accepted Answer

A)  Introductory price 
B)  Skimming price 
C)  Cash discount price 
D)  Penetration price 
E)  Everyday low price 
A)  Introductory price 
B)  Skimming price 
C)  Cash discount price 
D)  Penetration price 
E)  Everyday low price

Question 7

In mature markets, there is downward pressure on both prices and profit margins. In this situation, retailers often have to set prices to meet the competition.

Accepted Answer

A) True 
 B)False

Question 8

The president of a major airline makes telephone calls to the top executives of several other airlines asking them to "hold the line" and refrain from offering discounts on fares for several key routes in order to improve profit margins. This practice could easily be considered:

Accepted Answer

A)  dumping. 
B)  price discrimination. 
C)  price fixing. 
D)  zone pricing. 
E)  None of these is a good answer. 
A)  dumping. 
B)  price discrimination. 
C)  price fixing. 
D)  zone pricing. 
E)  None of these is a good answer.

Question 9

Strategy planning for Price is concerned with:

Accepted Answer

A)  to whom and when discounts and allowances will be given. 
B)  how transportation costs will be handled. 
C)  how flexible prices will be. 
D)  at what level prices will be set over the product life cycle. 
E)  All of these alternatives are correct. 
A)  to whom and when discounts and allowances will be given. 
B)  how transportation costs will be handled. 
C)  how flexible prices will be. 
D)  at what level prices will be set over the product life cycle. 
E)  All of these alternatives are correct.

Question 10

When a seller uses "zone pricing," the actual freight charge for delivering each order is included in the price the buyer pays for the product.

Accepted Answer

A) True 
 B)False

Question 11

A flexible-price policy is illegal in the U.S.

Accepted Answer

A) True 
 B)False

Question 12

A marketing manager may choose a pricing objective that is:

Accepted Answer

A)  sales oriented. 
B)  status quo oriented. 
C)  profit oriented. 
D)  any of these-depending on the situation. 
A)  sales oriented. 
B)  status quo oriented. 
C)  profit oriented. 
D)  any of these-depending on the situation.

Question 13

______________ are reductions from list price that are given by a seller to a buyer who either gives up some marketing function or provides the function himself.

Accepted Answer

A)  PMs 
B)  Phony prices 
C)  Spiffs 
D)  Markups 
E)  Discounts 
A)  PMs 
B)  Phony prices 
C)  Spiffs 
D)  Markups 
E)  Discounts

Question 14

By presenting a coupon to a retailer, the consumer is:

Accepted Answer

A)  given a discount off the list price. 
B)  allowed to sample the product. 
C)  offered the option of an installment payment. 
D)  given the right to pretest the product. 
E)  obligated to buy the product again in the future. 
A)  given a discount off the list price. 
B)  allowed to sample the product. 
C)  offered the option of an installment payment. 
D)  given the right to pretest the product. 
E)  obligated to buy the product again in the future.

Question 15

Final customers or users are normally asked to pay ______________ prices for products they buy.

Accepted Answer

A)  basic list 
B)  phony list 
C)  discounted 
D)  wholesale list 
E)  unchanging list 
A)  basic list 
B)  phony list 
C)  discounted 
D)  wholesale list 
E)  unchanging list

Question 16

Quantity discounts are offered by sellers to:

Accepted Answer

A)  reduce shipping or selling costs. 
B)  encourage customers to purchase larger quantities. 
C)  shift some of the storing function to buyers. 
D)  encourage buyers to make additional purchases. 
E)  All of these alternatives are correct. 
A)  reduce shipping or selling costs. 
B)  encourage customers to purchase larger quantities. 
C)  shift some of the storing function to buyers. 
D)  encourage buyers to make additional purchases. 
E)  All of these alternatives are correct.

Question 17

Price discrimination:

Accepted Answer

A)  by firms selling to final consumers is illegal, but it is usually legal in selling to intermediaries. 
B)  is not covered by Federal laws, but in some states it is illegal. 
C)  is always illegal. 
D)  may be legal if the firm can prove that different prices were set based on different costs. 
E)  None of these alternatives is correct. 
A)  by firms selling to final consumers is illegal, but it is usually legal in selling to intermediaries. 
B)  is not covered by Federal laws, but in some states it is illegal. 
C)  is always illegal. 
D)  may be legal if the firm can prove that different prices were set based on different costs. 
E)  None of these alternatives is correct.

Question 18

Cady ClayWorks offers its customers a 10 percent discount if they buy at least $200,000 worth of products during a year. The products may be bought in one order-or spread out over several orders. Cady ClayWorks is offering a:

Accepted Answer

A)  cumulative quantity discount. 
B)  brokerage allowance. 
C)  seasonal discount. 
D)  noncumulative quantity discount. 
E)  cash discount. 
A)  cumulative quantity discount. 
B)  brokerage allowance. 
C)  seasonal discount. 
D)  noncumulative quantity discount. 
E)  cash discount.

Question 19

A one-price policy means:

Accepted Answer

A)  offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities. 
B)  never using temporary sales or rebates. 
C)  selling to different customers at different prices. 
D)  setting a price at the "right" level from the start and never changing it. 
E)  None of these alternatives is correct. 
A)  offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities. 
B)  never using temporary sales or rebates. 
C)  selling to different customers at different prices. 
D)  setting a price at the "right" level from the start and never changing it. 
E)  None of these alternatives is correct.

Question 20

Regarding pricing objectives, a good marketing manager knows that:

Accepted Answer

A)  sales-oriented objectives usually lead to high profits. 
B)  target return objectives usually lead to a large profit. 
C)  status quo pricing objectives can be part of an extremely aggressive marketing strategy. 
D)  profit maximization objectives always lead to high prices. 
E)  None of these alternatives is correct. 
A)  sales-oriented objectives usually lead to high profits. 
B)  target return objectives usually lead to a large profit. 
C)  status quo pricing objectives can be part of an extremely aggressive marketing strategy. 
D)  profit maximization objectives always lead to high prices. 
E)  None of these alternatives is correct.

Which of the following observations is true?

Not taking advantage of cash discounts may have the same effect as paying a fairly large "interest charge."

A government agency charges motorists a toll for using a bridge. The toll is dropped when the cost of the bridge is paid. In other words, the government's target return figure was

The sales analysis of a product revealed that profits were highest when it was initially introduced into the market with a high selling price. However, the price was gradually reduced as it started facing competition as substitutes entered the market. This is an example of a(n) _____.

At Priceline's website, visitors can specify the desired price they're willing to pay for a hotel in Chicago. Priceline then electronically forwards the price to hotels until one accepts the offer. What pricing policy is Priceline using?

When Apple first introduced its iPhone in the U.S. market, it priced it at $600. Several months later, Apple reduced the price to $400. And several months after that, it reduced the price again to $200. What pricing policy was Apple using in its initial price strategy?

In mature markets, there is downward pressure on both prices and profit margins. In this situation, retailers often have to set prices to meet the competition.

The president of a major airline makes telephone calls to the top executives of several other airlines asking them to "hold the line" and refrain from offering discounts on fares for several key routes in order to improve profit margins. This practice could easily be considered:

Strategy planning for Price is concerned with:

When a seller uses "zone pricing," the actual freight charge for delivering each order is included in the price the buyer pays for the product.

A flexible-price policy is illegal in the U.S.

A marketing manager may choose a pricing objective that is:

______________ are reductions from list price that are given by a seller to a buyer who either gives up some marketing function or provides the function himself.

By presenting a coupon to a retailer, the consumer is:

Final customers or users are normally asked to pay ______________ prices for products they buy.

Quantity discounts are offered by sellers to:

Price discrimination:

Cady ClayWorks offers its customers a 10 percent discount if they buy at least $200,000 worth of products during a year. The products may be bought in one order-or spread out over several orders. Cady ClayWorks is offering a:

A one-price policy means:

Regarding pricing objectives, a good marketing manager knows that:

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Market Environment

Focusing Marketing Strategy With Segmentation and Positioning

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers, Wholesalers, and Their Strategy Planning

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Price Setting in the Business World

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challe

Filters

Exam 16: Pricing Objectives and Policies

Which of the following observations is true?

Not taking advantage of cash discounts may have the same effect as paying a fairly large "interest charge."

A government agency charges motorists a toll for using a bridge. The toll is dropped when the cost of the bridge is paid. In other words, the government's target return figure was

The sales analysis of a product revealed that profits were highest when it was initially introduced into the market with a high selling price. However, the price was gradually reduced as it started facing competition as substitutes entered the market. This is an example of a(n) _____.

At Priceline's website, visitors can specify the desired price they're willing to pay for a hotel in Chicago. Priceline then electronically forwards the price to hotels until one accepts the offer. What pricing policy is Priceline using?

When Apple first introduced its iPhone in the U.S. market, it priced it at $600. Several months later, Apple reduced the price to $400. And several months after that, it reduced the price again to $200. What pricing policy was Apple using in its initial price strategy?

In mature markets, there is downward pressure on both prices and profit margins. In this situation, retailers often have to set prices to meet the competition.

The president of a major airline makes telephone calls to the top executives of several other airlines asking them to "hold the line" and refrain from offering discounts on fares for several key routes in order to improve profit margins. This practice could easily be considered:

Strategy planning for Price is concerned with:

When a seller uses "zone pricing," the actual freight charge for delivering each order is included in the price the buyer pays for the product.

A flexible-price policy is illegal in the U.S.

A marketing manager may choose a pricing objective that is:

______________ are reductions from list price that are given by a seller to a buyer who either gives up some marketing function or provides the function himself.

By presenting a coupon to a retailer, the consumer is:

Final customers or users are normally asked to pay ______________ prices for products they buy.

Quantity discounts are offered by sellers to:

Price discrimination:

Cady ClayWorks offers its customers a 10 percent discount if they buy at least $200,000 worth of products during a year. The products may be bought in one order-or spread out over several orders. Cady ClayWorks is offering a:

A one-price policy means:

Regarding pricing objectives, a good marketing manager knows that:

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Market Environment

Focusing Marketing Strategy With Segmentation and Positioning

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers, Wholesalers, and Their Strategy Planning

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Price Setting in the Business World

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challe

Filters