Question 1

Uniform delivered pricing refers to

Accepted Answer

A)  the price the seller quotes that includes all transportation costs. 
B)  the price the seller quotes excluding all transportation costs. 
C)  the price the seller quotes including a fixed allowance whereby the buyer pays any additional costs. 
D)  the price the seller quotes includes a fixed percentage of transportation costs for which they will be responsible. 
E)  the guarantee that a retailer will be charged the same transportation fee for all of their outlets regardless of where they are located. 
A)  the price the seller quotes that includes all transportation costs. 
B)  the price the seller quotes excluding all transportation costs. 
C)  the price the seller quotes including a fixed allowance whereby the buyer pays any additional costs. 
D)  the price the seller quotes includes a fixed percentage of transportation costs for which they will be responsible. 
E)  the guarantee that a retailer will be charged the same transportation fee for all of their outlets regardless of where they are located. A

Question 2

manufacturer of a digital video recorder (DVR)is thinking of using a skimming pricing strategy for its new product.Which of the following conditions would argue AGAINST using a skimming pricing strategy for the DVR?

Accepted Answer

A)  large potential market, even at a high price 
B)  technological problems still exist for competitors 
C)  increasing volume reduces production costs substantially 
D)  consumers perceive a price-quality relationship 
E)  consumers are innovators 
A)  large potential market, even at a high price 
B)  technological problems still exist for competitors 
C)  increasing volume reduces production costs substantially 
D)  consumers perceive a price-quality relationship 
E)  consumers are innovators C

Question 3

unique feature of the Robinson-Patman Act is that it allows for price differentials to different customers under several conditions.Which of the following practices would be permitted?

Accepted Answer

A)  Using price differentials when price differences are given on the basis of other family businesses. 
B)  Using price differentials when charging different prices to different buyers for goods of like grade or quality. 
C)  Using price differentials when charging different prices on the basis of religious affiliation. 
D)  Using price differentials when charging the original price for refurbished goods that have been damaged or used and returned but repaired according to company specifications. 
E)  When price differences result from changing market conditions, avoiding obsolescence of seasonal merchandise, including perishables, or closing out sales. 
A)  Using price differentials when price differences are given on the basis of other family businesses. 
B)  Using price differentials when charging different prices to different buyers for goods of like grade or quality. 
C)  Using price differentials when charging different prices on the basis of religious affiliation. 
D)  Using price differentials when charging the original price for refurbished goods that have been damaged or used and returned but repaired according to company specifications. 
E)  When price differences result from changing market conditions, avoiding obsolescence of seasonal merchandise, including perishables, or closing out sales. E

Question 4

Setting a price to achieve an annual target return-on-investment (ROI)is referred to as

Accepted Answer

A)  target return-on-investment pricing. 
B)  target return-on-profit pricing. 
C)  target return-on-sales pricing. 
D)  target profit pricing. 
E)  customary pricing. 
A)  target return-on-investment pricing. 
B)  target return-on-profit pricing. 
C)  target return-on-sales pricing. 
D)  target profit pricing. 
E)  customary pricing.

Question 5

Large department store chains,such as Sears,generally use _________ pricing.

Accepted Answer

A)  above-market 
B)  at-market 
C)  below-market 
D)  prestige pricing 
E)  everyday low pricing 
A)  above-market 
B)  at-market 
C)  below-market 
D)  prestige pricing 
E)  everyday low pricing

Question 6

Prestige pricing refers to

Accepted Answer

A)  charging different prices to different buyers for goods of like grade and quality. 
B)  setting a low initial price on a new product to appeal immediately to the mass market odd-even pricing. 
C)  setting a market price for a product or product class based on a subjective feel for the competitors' price or market price. 
D)  setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it. 
E)  setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors. 
A)  charging different prices to different buyers for goods of like grade and quality. 
B)  setting a low initial price on a new product to appeal immediately to the mass market odd-even pricing. 
C)  setting a market price for a product or product class based on a subjective feel for the competitors' price or market price. 
D)  setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it. 
E)  setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors.

Question 7

manager of a small gasoline station observes that while gasoline sales have been steady,the service side of the business has fallen off,and mechanics are often idle.He decides to offer a promotion-a $20 off coupon for an oil change that is to be mailed to 800 households within a two-mile radius from the gas station.The cost of printing and mailing is $1,000.The normal cost of an oil change is $40.Materials and labor per oil change costs $15.If 200 customers use the coupon,what will be the total profit of the promotion based on the profit equation?

Accepted Answer

A)  ($4,000) 
B)  ($1,000) 
C)  $0 
D)  $1,000 
E)  $4,000 
A)  ($4,000) 
B)  ($1,000) 
C)  $0 
D)  $1,000 
E)  $4,000

Question 8

one-price policy refers to

Accepted Answer

A)  setting different prices for products and services depending on individual buyers and purchase situations. 
B)  setting the price of a line of products at a number of different specific pricing points. 
C)  setting prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item. 
D)  adding a fixed percentage to the cost of all items in a specific product class. 
E)  setting one price for all buyers of a product or service. 
A)  setting different prices for products and services depending on individual buyers and purchase situations. 
B)  setting the price of a line of products at a number of different specific pricing points. 
C)  setting prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item. 
D)  adding a fixed percentage to the cost of all items in a specific product class. 
E)  setting one price for all buyers of a product or service.

Question 9

way that a person navigates through an online marketer's website is called

Accepted Answer

A)  surf-shopping behavior. 
B)  cross-channel shopping. 
C)  the clickstream. 
D)  1-click shopping. 
E)  the shopper pathway. 
A)  surf-shopping behavior. 
B)  cross-channel shopping. 
C)  the clickstream. 
D)  1-click shopping. 
E)  the shopper pathway.

Question 10

Suppose a manufacturer quotes price in the following form: List price-$100 less 30/10/5.When calculating this trade discount,the first number "30" in the percentage sequence always refers to the

Accepted Answer

A)  discount to the ultimate consumer. 
B)  manufacturer's cost. 
C)  retail end of the channel. 
D)  channel intermediary closest to the manufacturer. 
E)  original unit cost. 
A)  discount to the ultimate consumer. 
B)  manufacturer's cost. 
C)  retail end of the channel. 
D)  channel intermediary closest to the manufacturer. 
E)  original unit cost.

Question 11

are the two general methods for quoting prices related to transportation costs? Explain how each is used.

Accepted Answer

The two general methods for quoting pric

Question 12

four of the eight demand-oriented approaches to selecting an approximate price level and define what they are.

Accepted Answer

Demand-oriented approaches include: 
(1)

Question 13

key to setting a final price for a product is finding an approximate price level to use as a reasonable starting point.Four common approaches to selecting an approximate price level are: (1)demand-oriented; (2)cost-oriented; (3)profit-oriented; and (4)__________ approaches.

Accepted Answer

A)  revenue-oriented 
B)  distribution-oriented 
C)  stakeholder-oriented 
D)  competition-oriented 
E)  cause-oriented 
A)  revenue-oriented 
B)  distribution-oriented 
C)  stakeholder-oriented 
D)  competition-oriented 
E)  cause-oriented

Question 14

Red Bull price premium = [(37% ÷ 33%) - 1] = 0.1212 × 100 = 12.1%
Monster price premium = [(17% ÷ 18%) - 1] = -0.0556 × 100 = (5.6%)
Rockstar price premium = [(8% ÷ 9%) - 1] = -0.1111 × 100 = (11.1%)
Other brands price premium = [(38% ÷ 40%) - 1] = -0.0500 × 100 = (5.0%)
-Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks.What is the price premium for Monster in 2010?

Accepted Answer

A)  -12.5% 
B)  -7.5% 
C)  -5.3% 
D)  0% 
E)  15.2% 
A)  -12.5% 
B)  -7.5% 
C)  -5.3% 
D)  0% 
E)  15.2%

Question 15

Odd-even pricing is based on

Accepted Answer

A)  retailers' perceptions of price. 
B)  customers' perceptions of price. 
C)  wholesalers' markups. 
D)  manufacturers' perceptions of price. 
E)  government regulators' perceptions of price. 
A)  retailers' perceptions of price. 
B)  customers' perceptions of price. 
C)  wholesalers' markups. 
D)  manufacturers' perceptions of price. 
E)  government regulators' perceptions of price.

Question 16

a firm offers a very low price on a product to attract customers to a store,and once in the store,the customer is persuaded to purchase a higher-priced item,the practice is referred to as

Accepted Answer

A)  predatory pricing. 
B)  deceptive pricing. 
C)  price discrimination. 
D)  caveat emptor. 
E)  bait and switch. 
A)  predatory pricing. 
B)  deceptive pricing. 
C)  price discrimination. 
D)  caveat emptor. 
E)  bait and switch.

Question 17

Geographical Pricing Map C
-pricing practices are closely scrutinized because of potential unethical or illegal actions.They include: (1)predatory pricing; (2)price discrimination; (3)deceptive pricing; (4)geographical pricing; and (5)__________.

Accepted Answer

A)  price discounting 
B)  lateral price fixing 
C)  price fixing 
D)  delayed payment penalties 
E)  price discrimination 
A)  price discounting 
B)  lateral price fixing 
C)  price fixing 
D)  delayed payment penalties 
E)  price discrimination

Question 18

Flexible Pricing Chart
-Consider the flexible pricing chart above,which shows the results of a National Bureau of Economic Research study of 750,000 car purchases. The data indicate that some groups of car buyers,on average,paid roughly $105,$423,and $483 more,respectively,for a new car in the $21,000 range than the typical purchaser.Who are the car buyers in "A?"

Accepted Answer

A)  women 
B)  the elderly 
C)  Hispanics 
D)  AfricanAmericans 
E)  Asian Anericans 
A)  women 
B)  the elderly 
C)  Hispanics 
D)  AfricanAmericans 
E)  Asian Anericans

Question 19

four types of discounts are

Accepted Answer

A)  quantity, trade-in, promotional, and cash. 
B)  quantity, seasonal, trade (functional), and cash. 
C)  quantity, seasonal, promotional, and FOB. 
D)  cash, trade-in, seasonal, and promotional. 
E)  trade-in, promotional, geographic, and functional. 
A)  quantity, trade-in, promotional, and cash. 
B)  quantity, seasonal, trade (functional), and cash. 
C)  quantity, seasonal, promotional, and FOB. 
D)  cash, trade-in, seasonal, and promotional. 
E)  trade-in, promotional, geographic, and functional.

Question 20

are the conditions favoring the use of penetration pricing?

Accepted Answer

The conditions favoring penetration pric

Uniform delivered pricing refers to

manufacturer of a digital video recorder (DVR)is thinking of using a skimming pricing strategy for its new product.Which of the following conditions would argue AGAINST using a skimming pricing strategy for the DVR?

unique feature of the Robinson-Patman Act is that it allows for price differentials to different customers under several conditions.Which of the following practices would be permitted?

Setting a price to achieve an annual target return-on-investment (ROI)is referred to as

Large department store chains,such as Sears,generally use _________ pricing.

Prestige pricing refers to

one-price policy refers to

way that a person navigates through an online marketer's website is called

Suppose a manufacturer quotes price in the following form: List price-$100 less 30/10/5.When calculating this trade discount,the first number "30" in the percentage sequence always refers to the

are the two general methods for quoting prices related to transportation costs? Explain how each is used.

four of the eight demand-oriented approaches to selecting an approximate price level and define what they are.

key to setting a final price for a product is finding an approximate price level to use as a reasonable starting point.Four common approaches to selecting an approximate price level are: (1)demand-oriented; (2)cost-oriented; (3)profit-oriented; and (4)__________ approaches.

Odd-even pricing is based on

a firm offers a very low price on a product to attract customers to a store,and once in the store,the customer is persuaded to purchase a higher-priced item,the practice is referred to as

Geographical Pricing Map C -pricing practices are closely scrutinized because of potential unethical or illegal actions.They include: (1)predatory pricing; (2)price discrimination; (3)deceptive pricing; (4)geographical pricing; and (5)__________.

four types of discounts are

are the conditions favoring the use of penetration pricing?

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation,Targeting,and Positioning

Developing New Products and Services

Managing Successful Products,Services,and Brands

Services Marketing

Building the Price Foundation

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multi-Channel Marketing

Pulling It All Together: The Strategic Marketing Process

Filters

Exam 14: Arriving at the Final Price

Uniform delivered pricing refers to

manufacturer of a digital video recorder (DVR)is thinking of using a skimming pricing strategy for its new product.Which of the following conditions would argue AGAINST using a skimming pricing strategy for the DVR?

unique feature of the Robinson-Patman Act is that it allows for price differentials to different customers under several conditions.Which of the following practices would be permitted?

Setting a price to achieve an annual target return-on-investment (ROI)is referred to as

Large department store chains,such as Sears,generally use _________ pricing.

Prestige pricing refers to

one-price policy refers to

way that a person navigates through an online marketer's website is called

Suppose a manufacturer quotes price in the following form: List price-$100 less 30/10/5.When calculating this trade discount,the first number "30" in the percentage sequence always refers to the

are the two general methods for quoting prices related to transportation costs? Explain how each is used.

four of the eight demand-oriented approaches to selecting an approximate price level and define what they are.

key to setting a final price for a product is finding an approximate price level to use as a reasonable starting point.Four common approaches to selecting an approximate price level are: (1)demand-oriented; (2)cost-oriented; (3)profit-oriented; and (4)__________ approaches.

Odd-even pricing is based on

a firm offers a very low price on a product to attract customers to a store,and once in the store,the customer is persuaded to purchase a higher-priced item,the practice is referred to as

Geographical Pricing Map C -pricing practices are closely scrutinized because of potential unethical or illegal actions.They include: (1)predatory pricing; (2)price discrimination; (3)deceptive pricing; (4)geographical pricing; and (5)__________.

four types of discounts are

are the conditions favoring the use of penetration pricing?

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation,Targeting,and Positioning

Developing New Products and Services

Managing Successful Products,Services,and Brands

Services Marketing

Building the Price Foundation

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multi-Channel Marketing

Pulling It All Together: The Strategic Marketing Process

Filters