Question 1

There are two kinds of quantity discounts: cumulative and accumulative.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is true of a trade-in allowance?

Accepted Answer

A)  It is a price reduction to stimulate sales of newly introduced products. 
B)  It allows managers to reduce the effective price without reducing the list price. 
C)  It forces managers to reduce the list price. 
D)  It is used to save old products from being removed from the market. 
A)  It is a price reduction to stimulate sales of newly introduced products. 
B)  It allows managers to reduce the effective price without reducing the list price. 
C)  It forces managers to reduce the list price. 
D)  It is used to save old products from being removed from the market.

Question 3

Heritage Brick's marketing manager is setting her pricing policies to "increase market share to 8%." Her pricing objective seems to be:

Accepted Answer

A)  status quo oriented. 
B)  sales oriented. 
C)  profit oriented. 
D)  target return oriented. 
E)  None of these is a good answer. 
A)  status quo oriented. 
B)  sales oriented. 
C)  profit oriented. 
D)  target return oriented. 
E)  None of these is a good answer.

Question 4

Trying to sell a firm's new product to a large market at one low price is known as:

Accepted Answer

A)  a skimming pricing policy. 
B)  introductory price dealing. 
C)  nonprice competition. 
D)  a penetration pricing policy. 
E)  a flexible-pricing policy. 
A)  a skimming pricing policy. 
B)  introductory price dealing. 
C)  nonprice competition. 
D)  a penetration pricing policy. 
E)  a flexible-pricing policy.

Question 5

There are more pricing options in pure competition than in monopolistic competition.

Accepted Answer

A) True 
 B)False

Question 6

Skimming may maximize profits in the market introduction stage for an innovation, especially if

Accepted Answer

A)  there are few substitutes. 
B)  all customers are price sensitive. 
C)  competition is intense. 
D)  a price reduction will reduce goodwill. 
E)  demand is perfectly elastic. 
A)  there are few substitutes. 
B)  all customers are price sensitive. 
C)  competition is intense. 
D)  a price reduction will reduce goodwill. 
E)  demand is perfectly elastic.

Question 7

A marketing manager who sets prices to achieve a given level of market share is using a profit-oriented pricing objective.

Accepted Answer

A) True 
 B)False

Question 8

Jiffy Cake Mix Company developed a new brownie mix that is much improved over its current brownie mix. When a sales representative for Jiffy contacted a buyer for a major supermarket chain, the buyer demanded that Jiffy give the supermarket chain a combination of cash and free cases of goods whose total value exceeded the entire marketing budget Jiffy planned to spend on the new brownie mix during its first year on the market. When the sales representative from Jiffy protested, the buyer said, "It is company policy to get ______________ in order to secure shelf space for new brands."

Accepted Answer

A)  push money 
B)  advertising allowances 
C)  quantity discounts 
D)  stocking allowances 
E)  sale prices 
A)  push money 
B)  advertising allowances 
C)  quantity discounts 
D)  stocking allowances 
E)  sale prices

Question 9

Jackson makes a contractual agreement with a car rental company to use a Chevy Silverado pickup truck for a specified period of time during which he has to pay the company a monthly fee over the course of that period. At the end of the specified period, Jackson will have to return the vehicle to the company unless he decides to purchase it. Which of the following policies is the car rental company employing in this scenario?

Accepted Answer

A)  Leasing 
B)  Everyday low pricing 
C)  Seasonal discounts 
D)  Quantity discounts 
E)  Installments 
A)  Leasing 
B)  Everyday low pricing 
C)  Seasonal discounts 
D)  Quantity discounts 
E)  Installments

Question 10

Rebates are refunds paid to consumers after a purchase.

Accepted Answer

A) True 
 B)False

Question 11

When individual firms set their own prices-sometimes holding them steady for long periods of time-rather than letting daily market forces determine prices, such prices are called:

Accepted Answer

A)  flexible prices. 
B)  parallel prices. 
C)  equilibrium prices. 
D)  administered prices. 
E)  fixed prices. 
A)  flexible prices. 
B)  parallel prices. 
C)  equilibrium prices. 
D)  administered prices. 
E)  fixed prices.

Question 12

By presenting a coupon to a retailer, the consumer is given a discount off the list price.

Accepted Answer

A) True 
 B)False

Question 13

A marketing manager might offer a cash discount to channel members to:

Accepted Answer

A)  increase sales during a slow period. 
B)  encourage buyers to pay their bills quickly. 
C)  reduce shipping or selling costs. 
D)  encourage them to buy in larger quantities. 
E)  All of these alternatives are correct. 
A)  increase sales during a slow period. 
B)  encourage buyers to pay their bills quickly. 
C)  reduce shipping or selling costs. 
D)  encourage them to buy in larger quantities. 
E)  All of these alternatives are correct.

Question 14

A producer of plastic water bottles that can be attached to bikes gives retailers a 3 percent price reduction to advertise its products locally. This is an example of:

Accepted Answer

A)  value pricing. 
B)  push money. 
C)  everyday low pricing. 
D)  an advertising allowance. 
E)  a cash discount. 
A)  value pricing. 
B)  push money. 
C)  everyday low pricing. 
D)  an advertising allowance. 
E)  a cash discount.

Question 15

In less-developed economies, retail shopkeepers typically use a one-price policy.

Accepted Answer

A) True 
 B)False

Question 16

World Imports/Exports, Inc., is pricing a product sold in a foreign market below the cost of producing it. It sells the same product at a higher price in its domestic market. The company is engaging in

Accepted Answer

A)  price dealing. 
B)  skimming. 
C)  dumping. 
D)  fair trade. 
E)  conscious parallel action. 
A)  price dealing. 
B)  skimming. 
C)  dumping. 
D)  fair trade. 
E)  conscious parallel action.

Question 17

Introductory price dealing:

Accepted Answer

A)  would not be used if other competitors already had competing products on the market at a price consumers found acceptable. 
B)  is often viewed by competitors as a "stay out" price. 
C)  usually sets off price wars. 
D)  is different from penetration pricing. 
E)  can apply only to final consumers, not channel members. 
A)  would not be used if other competitors already had competing products on the market at a price consumers found acceptable. 
B)  is often viewed by competitors as a "stay out" price. 
C)  usually sets off price wars. 
D)  is different from penetration pricing. 
E)  can apply only to final consumers, not channel members.

Question 18

Sales-oriented pricing objectives are sensible because sales growth almost guarantees higher profits.

Accepted Answer

A) True 
 B)False

Question 19

Ceramics Distributing Co. wants to keep its inventory low. Which of the following would be LEAST likely to encourage customers to take over more responsibility for the storage function?

Accepted Answer

A)  offering a cumulative quantity discount 
B)  offering a stocking allowance 
C)  offering a noncumulative quantity discount 
D)  offering a seasonal discount 
A)  offering a cumulative quantity discount 
B)  offering a stocking allowance 
C)  offering a noncumulative quantity discount 
D)  offering a seasonal discount

Question 20

Meeting the competitive price often makes sense for a firm in an oligopoly situation, because setting a price above the market will usually result in a large loss of sales it might have gotten at the competitive price.

Accepted Answer

A) True 
 B)False

There are two kinds of quantity discounts: cumulative and accumulative.

Which of the following is true of a trade-in allowance?

Heritage Brick's marketing manager is setting her pricing policies to "increase market share to 8%." Her pricing objective seems to be:

Trying to sell a firm's new product to a large market at one low price is known as:

There are more pricing options in pure competition than in monopolistic competition.

Skimming may maximize profits in the market introduction stage for an innovation, especially if

A marketing manager who sets prices to achieve a given level of market share is using a profit-oriented pricing objective.

Rebates are refunds paid to consumers after a purchase.

When individual firms set their own prices-sometimes holding them steady for long periods of time-rather than letting daily market forces determine prices, such prices are called:

By presenting a coupon to a retailer, the consumer is given a discount off the list price.

A marketing manager might offer a cash discount to channel members to:

A producer of plastic water bottles that can be attached to bikes gives retailers a 3 percent price reduction to advertise its products locally. This is an example of:

In less-developed economies, retail shopkeepers typically use a one-price policy.

World Imports/Exports, Inc., is pricing a product sold in a foreign market below the cost of producing it. It sells the same product at a higher price in its domestic market. The company is engaging in

Introductory price dealing:

Sales-oriented pricing objectives are sensible because sales growth almost guarantees higher profits.

Ceramics Distributing Co. wants to keep its inventory low. Which of the following would be LEAST likely to encourage customers to take over more responsibility for the storage function?

Meeting the competitive price often makes sense for a firm in an oligopoly situation, because setting a price above the market will usually result in a large loss of sales it might have gotten at the competitive price.

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

There are two kinds of quantity discounts: cumulative and accumulative.

Which of the following is true of a trade-in allowance?

Heritage Brick's marketing manager is setting her pricing policies to "increase market share to 8%." Her pricing objective seems to be:

Trying to sell a firm's new product to a large market at one low price is known as:

There are more pricing options in pure competition than in monopolistic competition.

Skimming may maximize profits in the market introduction stage for an innovation, especially if

A marketing manager who sets prices to achieve a given level of market share is using a profit-oriented pricing objective.

Rebates are refunds paid to consumers after a purchase.

When individual firms set their own prices-sometimes holding them steady for long periods of time-rather than letting daily market forces determine prices, such prices are called:

By presenting a coupon to a retailer, the consumer is given a discount off the list price.

A marketing manager might offer a cash discount to channel members to:

A producer of plastic water bottles that can be attached to bikes gives retailers a 3 percent price reduction to advertise its products locally. This is an example of:

In less-developed economies, retail shopkeepers typically use a one-price policy.

World Imports/Exports, Inc., is pricing a product sold in a foreign market below the cost of producing it. It sells the same product at a higher price in its domestic market. The company is engaging in

Introductory price dealing:

Sales-oriented pricing objectives are sensible because sales growth almost guarantees higher profits.

Ceramics Distributing Co. wants to keep its inventory low. Which of the following would be LEAST likely to encourage customers to take over more responsibility for the storage function?

Meeting the competitive price often makes sense for a firm in an oligopoly situation, because setting a price above the market will usually result in a large loss of sales it might have gotten at the competitive price.

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