Question 1

If a business decides to reduce its prices once in a while on an unsystematic basis, it is using

Accepted Answer

A) price reduction planning. 
B) random discounting. 
C) bait pricing. 
D) periodic discounting. 
E) penetration pricing. 
A) price reduction planning. 
B) random discounting. 
C) bait pricing. 
D) periodic discounting. 
E) penetration pricing.

Question 2

All of the following are pricing strategies used by companies establishing prices of multiple products within a product line except

Accepted Answer

A) premium pricing. 
B) price lining. 
C) captive pricing. 
D) bait pricing. 
E) penetration pricing. 
A) premium pricing. 
B) price lining. 
C) captive pricing. 
D) bait pricing. 
E) penetration pricing.

Question 3

Marketers improve their ability to establish prices appropriately when

Accepted Answer

A) there is nonprice competition. 
B) they know prices charged for competing brands. 
C) their products are of better quality than the competition's. 
D) the main objective is image building. 
E) using psychological pricing. 
A) there is nonprice competition. 
B) they know prices charged for competing brands. 
C) their products are of better quality than the competition's. 
D) the main objective is image building. 
E) using psychological pricing.

Question 4

If a product is priced based on how many or how few people want it at a particular time and place, ____ pricing is being used.

Accepted Answer

A) markup 
B) demand-based 
C) competitive 
D) peak 
E) differential 
A) markup 
B) demand-based 
C) competitive 
D) peak 
E) differential

Question 5

Which of the following pricing strategies often results in a retailer losing money on the product?

Accepted Answer

A) Price leader 
B) Psychological discounting 
C) Penetration pricing 
D) Special-event pricing 
E) Ethical pricing 
A) Price leader 
B) Psychological discounting 
C) Penetration pricing 
D) Special-event pricing 
E) Ethical pricing

Question 6

If Samsung uses _____ pricing for its newest version of laptops, it is probably most interested in obtaining market share; and it is assuming

Accepted Answer

A) premium pricing; that no other competitors are likely to enter the market soon. 
B) price skimming; that no other competitors are likely to enter the market soon. 
C) premium pricing; it needs to recoup R & D costs as soon as possible. 
D) penetration pricing; that no other competitors are likely to enter the market soon. 
E) penetration pricing; that other competitors could enter the market easily. 
A) premium pricing; that no other competitors are likely to enter the market soon. 
B) price skimming; that no other competitors are likely to enter the market soon. 
C) premium pricing; it needs to recoup R & D costs as soon as possible. 
D) penetration pricing; that no other competitors are likely to enter the market soon. 
E) penetration pricing; that other competitors could enter the market easily.

Question 7

Prestige pricing is used when a higher price is consistent with buyers' attitudes toward the quality or image of a product.

Accepted Answer

A) True 
 B)False

Question 8

Some grocery stores collect data on competitive prices

Accepted Answer

A) by calling their competitors. 
B) on a quarterly basis. 
C) through stores' purchase data. 
D) from their resellers. 
E) by using full-time comparison shoppers. 
A) by calling their competitors. 
B) on a quarterly basis. 
C) through stores' purchase data. 
D) from their resellers. 
E) by using full-time comparison shoppers.

Question 9

A problem associated with ____ is that consumers can predict when prices will be lowered and delay purchases until that time.

Accepted Answer

A) random discounting 
B) penetration pricing 
C) reference pricing 
D) everyday low pricing 
E) periodic discounting 
A) random discounting 
B) penetration pricing 
C) reference pricing 
D) everyday low pricing 
E) periodic discounting

Question 10

Markup pricing is not used often by marketers because establishing a percentage markup greatly increases the complexity of the decision-making process.

Accepted Answer

A) True 
 B)False

Question 11

Random discounting means discounting various products on a systematic basis.

Accepted Answer

A) True 
 B)False

Question 12

Chris is planning three sales during the third quarter of the year at Toys R' Us. The first is at the beginning of the school year, the second is the week before Halloween, and the third is Black Friday. These sales would be considered to be

Accepted Answer

A) psychological pricing. 
B) calendar discounting. 
C) sales promotion pricing. 
D) special-event pricing. 
E) captive pricing. 
A) psychological pricing. 
B) calendar discounting. 
C) sales promotion pricing. 
D) special-event pricing. 
E) captive pricing.

Question 13

Penetration pricing and price skimming of the market are two types of new-product pricing.

Accepted Answer

A) True 
 B)False

Question 14

To attract customers into a store, Safeway advertises its milk at less than cost, hoping that customers will purchase other groceries as well. This pricing strategy is called

Accepted Answer

A) price lining. 
B) special-event pricing. 
C) differential pricing. 
D) comparison discounting. 
E) price leader pricing. 
A) price lining. 
B) special-event pricing. 
C) differential pricing. 
D) comparison discounting. 
E) price leader pricing.

Question 15

A marketer is usually in a better position to establish prices when it knows the prices charged for competing brands.

Accepted Answer

A) True 
 B)False

Question 16

Marketers must take steps to make sure that the pricing objectives they set are consistent with the organization's ____ objectives and ____ objectives.

Accepted Answer

A) advertising; marketing 
B) overall; marketing 
C) marketing; promotional 
D) overall; promotional 
E) overall; revenue 
A) advertising; marketing 
B) overall; marketing 
C) marketing; promotional 
D) overall; promotional 
E) overall; revenue

Question 17

All of the following are psychological techniques except

Accepted Answer

A) customary pricing. 
B) prestige pricing. 
C) reference pricing. 
D) odd-even pricing. 
E) price skimming. 
A) customary pricing. 
B) prestige pricing. 
C) reference pricing. 
D) odd-even pricing. 
E) price skimming.

Question 18

How can a marketer use product quality as a pricing objective to influence purchasing decisions?

Accepted Answer

Some consumers are seeking less-expensiv

Question 19

Reference pricing is

Accepted Answer

A) listing the manufacturer's suggested retail price on the price tag along with the store's lower price. 
B) mentioning the price that other retailers charge for the same product on the display for the product. 
C) using a consumer's internal perceptions of what the appropriate price should be to help price a firm's products. 
D) pricing a product at a moderate level and positioning it next to a more expensive model or brand. 
E) using prices in advertising so that customers will have a point of reference when they come to the retail facility. 
A) listing the manufacturer's suggested retail price on the price tag along with the store's lower price. 
B) mentioning the price that other retailers charge for the same product on the display for the product. 
C) using a consumer's internal perceptions of what the appropriate price should be to help price a firm's products. 
D) pricing a product at a moderate level and positioning it next to a more expensive model or brand. 
E) using prices in advertising so that customers will have a point of reference when they come to the retail facility.

Question 20

Differential pricing is effective mainly when focusing on only one market segment.

Accepted Answer

A) True 
 B)False

If a business decides to reduce its prices once in a while on an unsystematic basis, it is using

All of the following are pricing strategies used by companies establishing prices of multiple products within a product line except

Marketers improve their ability to establish prices appropriately when

If a product is priced based on how many or how few people want it at a particular time and place, ____ pricing is being used.

Which of the following pricing strategies often results in a retailer losing money on the product?

If Samsung uses _____ pricing for its newest version of laptops, it is probably most interested in obtaining market share; and it is assuming

Prestige pricing is used when a higher price is consistent with buyers' attitudes toward the quality or image of a product.

Some grocery stores collect data on competitive prices

A problem associated with ____ is that consumers can predict when prices will be lowered and delay purchases until that time.

Markup pricing is not used often by marketers because establishing a percentage markup greatly increases the complexity of the decision-making process.

Random discounting means discounting various products on a systematic basis.

Chris is planning three sales during the third quarter of the year at Toys R' Us. The first is at the beginning of the school year, the second is the week before Halloween, and the third is Black Friday. These sales would be considered to be

Penetration pricing and price skimming of the market are two types of new-product pricing.

To attract customers into a store, Safeway advertises its milk at less than cost, hoping that customers will purchase other groceries as well. This pricing strategy is called

A marketer is usually in a better position to establish prices when it knows the prices charged for competing brands.

Marketers must take steps to make sure that the pricing objectives they set are consistent with the organization's objectives and objectives.

All of the following are psychological techniques except

How can a marketer use product quality as a pricing objective to influence purchasing decisions?

Reference pricing is

Differential pricing is effective mainly when focusing on only one market segment.

An Overview of Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

Marketing Research and Information Systems

Target Markets Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product Concepts, Branding and Packaging

Developing and Managing Products

Services Marketing

Marketing Channels and Supply-Chain Management

Retailing, Direct Marketing and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Pricing Concepts

Filters

Exam 20: Setting Prices

If a business decides to reduce its prices once in a while on an unsystematic basis, it is using

All of the following are pricing strategies used by companies establishing prices of multiple products within a product line except

Marketers improve their ability to establish prices appropriately when

If a product is priced based on how many or how few people want it at a particular time and place, ____ pricing is being used.

Which of the following pricing strategies often results in a retailer losing money on the product?

If Samsung uses _____ pricing for its newest version of laptops, it is probably most interested in obtaining market share; and it is assuming

Prestige pricing is used when a higher price is consistent with buyers' attitudes toward the quality or image of a product.

Some grocery stores collect data on competitive prices

A problem associated with ____ is that consumers can predict when prices will be lowered and delay purchases until that time.

Markup pricing is not used often by marketers because establishing a percentage markup greatly increases the complexity of the decision-making process.

Random discounting means discounting various products on a systematic basis.

Chris is planning three sales during the third quarter of the year at Toys R' Us. The first is at the beginning of the school year, the second is the week before Halloween, and the third is Black Friday. These sales would be considered to be

Penetration pricing and price skimming of the market are two types of new-product pricing.

To attract customers into a store, Safeway advertises its milk at less than cost, hoping that customers will purchase other groceries as well. This pricing strategy is called

A marketer is usually in a better position to establish prices when it knows the prices charged for competing brands.

Marketers must take steps to make sure that the pricing objectives they set are consistent with the organization's ____ objectives and ____ objectives.

All of the following are psychological techniques except

How can a marketer use product quality as a pricing objective to influence purchasing decisions?

Reference pricing is

Differential pricing is effective mainly when focusing on only one market segment.

An Overview of Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

Marketing Research and Information Systems

Target Markets Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product Concepts, Branding and Packaging

Developing and Managing Products

Services Marketing

Marketing Channels and Supply-Chain Management

Retailing, Direct Marketing and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Pricing Concepts

Filters

Marketers must take steps to make sure that the pricing objectives they set are consistent with the organization's objectives and objectives.