Question 1

Which of the following would be used in setting the price of a new product if considerable competition is expected?

Accepted Answer

A) Psychological pricing 
B) Penetration pricing 
C) Odd-even pricing 
D) Price skimming 
E) Prestige pricing 
A) Psychological pricing 
B) Penetration pricing 
C) Odd-even pricing 
D) Price skimming 
E) Prestige pricing

Question 2

If an organization sets prices to recover research and development expenses and establish a premium quality image for its product, it would be using a ____ pricing objective.

Accepted Answer

A) survival 
B) return on investment 
C) market share 
D) product quality 
E) cash flow 
A) survival 
B) return on investment 
C) market share 
D) product quality 
E) cash flow

Question 3

Competitors' prices, along with the marketing variables they emphasize, are determining factors in

Accepted Answer

A) the instability of prices in a particular industry. 
B) using markup pricing for consumer goods. 
C) how much marketing research a firm needs to collect. 
D) using differential pricing to demonstrate quality differences. 
E) how important price will be to customers. 
A) the instability of prices in a particular industry. 
B) using markup pricing for consumer goods. 
C) how much marketing research a firm needs to collect. 
D) using differential pricing to demonstrate quality differences. 
E) how important price will be to customers.

Question 4

A price-leader approach is a pricing approach most often used in supermarkets to attract consumers by giving them special low prices on a few items.

Accepted Answer

A) True 
 B)False

Question 5

How might a marketer find information about a competitor's prices? Why is this information important?

Accepted Answer

In most cases, marketers are in a better

Question 6

When Gabriella logs on to Dell's website, she sees a notebook model priced well below $1,000. As she continues through the site to view the other options, she realizes the first one she saw was the cheapest model available, but she of course wants more features. Dell is utilizing

Accepted Answer

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

Question 7

Maintaining or increasing market share

Accepted Answer

A) can be achieved even if industry sales are flat or decreasing. 
B) is an infrequently used pricing objective in most industries. 
C) depends upon the overall growth of the total industry. 
D) is a profit-related objective based on price. 
E) is directly tied to leading an industry in product quality. 
A) can be achieved even if industry sales are flat or decreasing. 
B) is an infrequently used pricing objective in most industries. 
C) depends upon the overall growth of the total industry. 
D) is a profit-related objective based on price. 
E) is directly tied to leading an industry in product quality.

Question 8

Which of the following statements is true about the determination of a specific price for a product? ​

Accepted Answer

A) Price elasticity is not relevant when determining a specific price. 
B) It occurs in the fifth stage of the price setting process. 
C) Only fixed costs should be considered when setting the specific price. 
D) When no government controls exist, pricing is a flexible way to adjust the marketing mix. 
E) Demand is not a consideration when establishing a specific price. 
A) Price elasticity is not relevant when determining a specific price. 
B) It occurs in the fifth stage of the price setting process. 
C) Only fixed costs should be considered when setting the specific price. 
D) When no government controls exist, pricing is a flexible way to adjust the marketing mix. 
E) Demand is not a consideration when establishing a specific price.

Question 9

The "White Sale" that many department stores have every year a few weeks after Christmas is an example of

Accepted Answer

A) secondary pricing. 
B) off-peak pricing. 
C) periodic discounting. 
D) random discounting. 
E) captive pricing. 
A) secondary pricing. 
B) off-peak pricing. 
C) periodic discounting. 
D) random discounting. 
E) captive pricing.

Question 10

One pitfall of cost-plus pricing for the buyer is that the seller may increase costs to establish a larger profit base.

Accepted Answer

A) True 
 B)False

Question 11

Price leaders, comparison discounting, and special-event pricing are applications of

Accepted Answer

A) psychological pricing. 
B) professional pricing. 
C) product-line pricing. 
D) bait-and-switch. 
E) promotional pricing. 
A) psychological pricing. 
B) professional pricing. 
C) product-line pricing. 
D) bait-and-switch. 
E) promotional pricing.

Question 12

The pricing strategy that assumes that demand is relatively inelastic over certain price ranges is called

Accepted Answer

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

Question 13

Under Armour is establishing a ______ pricing objective to maintain or increase its product's sales in relation to total industry sales.

Accepted Answer

A) Return on investment 
B) Survival 
C) Product quality 
D) Market share 
E) Status quo 
A) Return on investment 
B) Survival 
C) Product quality 
D) Market share 
E) Status quo

Which of the following would be used in setting the price of a new product if considerable competition is expected?

If an organization sets prices to recover research and development expenses and establish a premium quality image for its product, it would be using a ____ pricing objective.

Competitors' prices, along with the marketing variables they emphasize, are determining factors in

A price-leader approach is a pricing approach most often used in supermarkets to attract consumers by giving them special low prices on a few items.

How might a marketer find information about a competitor's prices? Why is this information important?

When Gabriella logs on to Dell's website, she sees a notebook model priced well below $1,000. As she continues through the site to view the other options, she realizes the first one she saw was the cheapest model available, but she of course wants more features. Dell is utilizing

Maintaining or increasing market share

Which of the following statements is true about the determination of a specific price for a product?

The "White Sale" that many department stores have every year a few weeks after Christmas is an example of

One pitfall of cost-plus pricing for the buyer is that the seller may increase costs to establish a larger profit base.

Price leaders, comparison discounting, and special-event pricing are applications of

The pricing strategy that assumes that demand is relatively inelastic over certain price ranges is called

Under Armour is establishing a ______ pricing objective to maintain or increase its product's sales in relation to total industry sales.

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

Which of the following would be used in setting the price of a new product if considerable competition is expected?

If an organization sets prices to recover research and development expenses and establish a premium quality image for its product, it would be using a ____ pricing objective.

Competitors' prices, along with the marketing variables they emphasize, are determining factors in

A price-leader approach is a pricing approach most often used in supermarkets to attract consumers by giving them special low prices on a few items.

How might a marketer find information about a competitor's prices? Why is this information important?

When Gabriella logs on to Dell's website, she sees a notebook model priced well below $1,000. As she continues through the site to view the other options, she realizes the first one she saw was the cheapest model available, but she of course wants more features. Dell is utilizing

Maintaining or increasing market share

Which of the following statements is true about the determination of a specific price for a product? ​

The "White Sale" that many department stores have every year a few weeks after Christmas is an example of

One pitfall of cost-plus pricing for the buyer is that the seller may increase costs to establish a larger profit base.

Price leaders, comparison discounting, and special-event pricing are applications of

The pricing strategy that assumes that demand is relatively inelastic over certain price ranges is called

Under Armour is establishing a ______ pricing objective to maintain or increase its product's sales in relation to total industry sales.

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

Which of the following statements is true about the determination of a specific price for a product?