Question 1

_____ is most often used to describe the pricing of jobs that are nonroutine and difficult to "cost" in advance.

Accepted Answer

A)  Target cost pricing 
B)  Rate-of-return pricing 
C)  Marked pricing 
D)  Cost-plus pricing 
A)  Target cost pricing 
B)  Rate-of-return pricing 
C)  Marked pricing 
D)  Cost-plus pricing D

Question 2

Marking merchandise with an exceptionally high price and then claiming that the lower selling price actually used represents a legitimate price reduction, is an example of _____.

Accepted Answer

A)  deceptive pricing 
B)  price fixing 
C)  predatory pricing 
D)  price discrimination 
A)  deceptive pricing 
B)  price fixing 
C)  predatory pricing 
D)  price discrimination A

Question 3

Felicia Inc., a cosmetic company, wants to launch a new perfume called "Zing" with top notes of bergamot, orange, and cinnamon. When determining the price of the perfume and its market potential, the company takes into account the number of potential buyers and their economic strengths. Which of the following factors is Felicia using in determining the pricing of Zing?

Accepted Answer

A)  Demographic factors 
B)  Psychological factors 
C)  Environmental influences 
D)  Behavioral factors 
A)  Demographic factors 
B)  Psychological factors 
C)  Environmental influences 
D)  Behavioral factors A

Question 4

Which of the following is a demographic factor that should be considered in the initial selection of a target market?

Accepted Answer

A)  The number of potential buyers 
B)  The perishability of the product 
C)  Customers' needs for prestige and status 
D)  Customers' reactions to odd pricing 
A)  The number of potential buyers 
B)  The perishability of the product 
C)  Customers' needs for prestige and status 
D)  Customers' reactions to odd pricing

Question 5

Zimmer Co., a food manufacturing company, wants to launch a new low-fat cereal called "Zimmer-less." The company decides to use certain demographic factors to determine the market potential of Zimmer-less and its expected sales at different price levels. Which of the following questions is the company most likely to consider?

Accepted Answer

A)  How many boxes of the low-fat cereal will be consumed by a household in a month? 
B)  Are potential buyers likely to believe that the price of the cereal is indicative of its quality? 
C)  Are potential buyers of the cereal prestige oriented and therefore willing to pay more? 
D)  Will potential buyers be tempted to buy the cereal if it's oddly priced? 
A)  How many boxes of the low-fat cereal will be consumed by a household in a month? 
B)  Are potential buyers likely to believe that the price of the cereal is indicative of its quality? 
C)  Are potential buyers of the cereal prestige oriented and therefore willing to pay more? 
D)  Will potential buyers be tempted to buy the cereal if it's oddly priced?

Question 6

Which of the following product characteristics affecting pricing typically involves discounting products as they approach being no longer fit for sale?

Accepted Answer

A)  Distinctiveness 
B)  Perishability 
C)  Durability 
D)  Stage in product life cycle 
A)  Distinctiveness 
B)  Perishability 
C)  Durability 
D)  Stage in product life cycle

Question 7

Exclusivez, a leading jeweler, offers a pair of diamond earrings for only $2000, a price that is 40 percent lower than that of its competitors. Exclusivez aims to use this strategy to drive its competitors out of business and become the market leader in diamond jewelry. This is an example of _____.

Accepted Answer

A)  price discrimination 
B)  price fixing 
C)  predatory pricing 
D)  deceptive pricing 
A)  price discrimination 
B)  price fixing 
C)  predatory pricing 
D)  deceptive pricing

Question 8

Which of the following is true of slotting allowances?

Accepted Answer

A)  They are discounts offered for purchasing a large number of units. 
B)  They are often in the form of price reductions for performing promotional activities. 
C)  They tend to add marketing cost to a manufacturer and affect profits. 
D)  They are payments made by retailers to manufacturers to allow them to stock the manufacturer's products. 
A)  They are discounts offered for purchasing a large number of units. 
B)  They are often in the form of price reductions for performing promotional activities. 
C)  They tend to add marketing cost to a manufacturer and affect profits. 
D)  They are payments made by retailers to manufacturers to allow them to stock the manufacturer's products.

Question 9

Which of the following provides valuable information about what a target market thinks about a product and what it is worth to them?

Accepted Answer

A)  Slotting preference 
B)  Promotional discounting 
C)  Value substitution 
D)  Price elasticity 
A)  Slotting preference 
B)  Promotional discounting 
C)  Value substitution 
D)  Price elasticity

Question 10

Which of the following is true of pricing objectives?

Accepted Answer

A)  Pricing objectives should not be derived from overall marketing objectives. 
B)  Pricing to achieve a target return on investment is a common pricing objective. 
C)  Pricing objectives are not devised to meet or prevent competition. 
D)  The basic pricing objective is solely concerned with short-run profits. 
A)  Pricing objectives should not be derived from overall marketing objectives. 
B)  Pricing to achieve a target return on investment is a common pricing objective. 
C)  Pricing objectives are not devised to meet or prevent competition. 
D)  The basic pricing objective is solely concerned with short-run profits.

Question 11

For which of the following products is a producer most likely to use cost-plus pricing?

Accepted Answer

A)  A landscaping project of a five-acre public park 
B)  A jar of peanut butter 
C)  A first edition novel that is valued at $125 
D)  A state-of-the-art home entertainment system 
A)  A landscaping project of a five-acre public park 
B)  A jar of peanut butter 
C)  A first edition novel that is valued at $125 
D)  A state-of-the-art home entertainment system

Question 12

Jenna sells ice creams at the beach each summer. Each bar of ice cream costs her 20¢. She adds on an additional 20¢ to each bar to pay for electricity for the freezer, napkins, and her time, finally selling her ice creams at 40¢ a bar. In this scenario, Jena uses _____ pricing.

Accepted Answer

A)  bundle 
B)  rate-of-return 
C)  odd-even 
D)  markup 
A)  bundle 
B)  rate-of-return 
C)  odd-even 
D)  markup

Question 13

Which of the following is a demographic factor that influences the pricing decision of a product?

Accepted Answer

A)  The nature of the product 
B)  The potential buyers' need for prestige 
C)  The potential buyers' perception of product price and quality 
D)  The location of potential buyers 
A)  The nature of the product 
B)  The potential buyers' need for prestige 
C)  The potential buyers' perception of product price and quality 
D)  The location of potential buyers

Question 14

Fido's Burgers, a fast food joint, offers its customers a chicken burger meal with fries, coleslaw, and soda at a price lower than would be charged if the products were purchased separately. This example would best describe a(n) _____.

Accepted Answer

A)  odd-even pricing strategy 
B)  prestige pricing strategy 
C)  bundle pricing strategy 
D)  premium pricing strategy 
A)  odd-even pricing strategy 
B)  prestige pricing strategy 
C)  bundle pricing strategy 
D)  premium pricing strategy

Question 15

Which of the following is an example of a demographic factor that influences the pricing decision of a product?

Accepted Answer

A)  The nature of the product 
B)  The reaction of potential buyers to odd pricing 
C)  The prestige orientation of potential buyers 
D)  The expected consumption rates of potential buyers 
A)  The nature of the product 
B)  The reaction of potential buyers to odd pricing 
C)  The prestige orientation of potential buyers 
D)  The expected consumption rates of potential buyers

Question 16

Which of the following factors influencing pricing decisions pertains to the expected consumption rates, the location, and the position of potential buyers?

Accepted Answer

A)  Psychological factors 
B)  Environmental factors 
C)  Demographic factors 
D)  Price elasticity 
A)  Psychological factors 
B)  Environmental factors 
C)  Demographic factors 
D)  Price elasticity

Question 17

Buyers who want to avoid the hassle of waiting in line to order a pizza at Grundel's Pizza Joint can buy their pizzas sooner at a higher cost. Such costs are examples of _____ costs.

Accepted Answer

A)  psychological 
B)  quality 
C)  behavioral 
D)  time 
A)  psychological 
B)  quality 
C)  behavioral 
D)  time

Question 18

Which of the following is a type of psychological pricing strategy?

Accepted Answer

A)  Cost-plus pricing 
B)  Rate-of-return pricing 
C)  Markup pricing 
D)  Prestige pricing 
A)  Cost-plus pricing 
B)  Rate-of-return pricing 
C)  Markup pricing 
D)  Prestige pricing

Question 19

Which of the following is true of a high/low pricing strategy?

Accepted Answer

A)  Conditioning customers to buy only on sale is the main characteristic of this strategy. 
B)  In this strategy, a retailer charges prices that are on level with its competitors' and avoids promoting sales. 
C)  Most fashion, drug, and grocery stores avoid using this pricing strategy. 
D)  The main disadvantage of this strategy is that it makes it difficult for a retailer to get rid of slow-selling merchandise. 
A)  Conditioning customers to buy only on sale is the main characteristic of this strategy. 
B)  In this strategy, a retailer charges prices that are on level with its competitors' and avoids promoting sales. 
C)  Most fashion, drug, and grocery stores avoid using this pricing strategy. 
D)  The main disadvantage of this strategy is that it makes it difficult for a retailer to get rid of slow-selling merchandise.

Question 20

Markup pricing:

Accepted Answer

A)  is commonly used in retailing. 
B)  is commonly used by manufacturers. 
C)  is most often used to describe the pricing of jobs that are nonroutine and difficult to "cost" in advance. 
D)  is a psychological pricing strategy. 
A)  is commonly used in retailing. 
B)  is commonly used by manufacturers. 
C)  is most often used to describe the pricing of jobs that are nonroutine and difficult to "cost" in advance. 
D)  is a psychological pricing strategy.

_____ is most often used to describe the pricing of jobs that are nonroutine and difficult to "cost" in advance.

Marking merchandise with an exceptionally high price and then claiming that the lower selling price actually used represents a legitimate price reduction, is an example of _____.

Which of the following is a demographic factor that should be considered in the initial selection of a target market?

Which of the following product characteristics affecting pricing typically involves discounting products as they approach being no longer fit for sale?

Exclusivez, a leading jeweler, offers a pair of diamond earrings for only $2000, a price that is 40 percent lower than that of its competitors. Exclusivez aims to use this strategy to drive its competitors out of business and become the market leader in diamond jewelry. This is an example of _____.

Which of the following is true of slotting allowances?

Which of the following provides valuable information about what a target market thinks about a product and what it is worth to them?

Which of the following is true of pricing objectives?

For which of the following products is a producer most likely to use cost-plus pricing?

Jenna sells ice creams at the beach each summer. Each bar of ice cream costs her 20¢. She adds on an additional 20¢ to each bar to pay for electricity for the freezer, napkins, and her time, finally selling her ice creams at 40¢ a bar. In this scenario, Jena uses _____ pricing.

Which of the following is a demographic factor that influences the pricing decision of a product?

Fido's Burgers, a fast food joint, offers its customers a chicken burger meal with fries, coleslaw, and soda at a price lower than would be charged if the products were purchased separately. This example would best describe a(n) _____.

Which of the following is an example of a demographic factor that influences the pricing decision of a product?

Which of the following factors influencing pricing decisions pertains to the expected consumption rates, the location, and the position of potential buyers?

Buyers who want to avoid the hassle of waiting in line to order a pizza at Grundel's Pizza Joint can buy their pizzas sooner at a higher cost. Such costs are examples of _____ costs.

Which of the following is a type of psychological pricing strategy?

Which of the following is true of a high/low pricing strategy?

Markup pricing:

Strategic Planning and the Marketing Management Process

Marketing Research: Process and Systems for Decision Making

Consumer Behavior

Business, Government, and Institutional Buying

Market Segmentation

Product and Brand Strategy

New Product Planning and Development

Integrated Marketing Communications

Personal Selling, Relationship Building, and Sales Management

Distribution Strategy

The Marketing of Services

Global Marketing

Portfolio Models

Filters

Exam 11: Pricing Strategy

_____ is most often used to describe the pricing of jobs that are nonroutine and difficult to "cost" in advance.

Marking merchandise with an exceptionally high price and then claiming that the lower selling price actually used represents a legitimate price reduction, is an example of _____.

Which of the following is a demographic factor that should be considered in the initial selection of a target market?

Which of the following product characteristics affecting pricing typically involves discounting products as they approach being no longer fit for sale?

Exclusivez, a leading jeweler, offers a pair of diamond earrings for only $2000, a price that is 40 percent lower than that of its competitors. Exclusivez aims to use this strategy to drive its competitors out of business and become the market leader in diamond jewelry. This is an example of _____.

Which of the following is true of slotting allowances?

Which of the following provides valuable information about what a target market thinks about a product and what it is worth to them?

Which of the following is true of pricing objectives?

For which of the following products is a producer most likely to use cost-plus pricing?

Jenna sells ice creams at the beach each summer. Each bar of ice cream costs her 20¢. She adds on an additional 20¢ to each bar to pay for electricity for the freezer, napkins, and her time, finally selling her ice creams at 40¢ a bar. In this scenario, Jena uses _____ pricing.

Which of the following is a demographic factor that influences the pricing decision of a product?

Fido's Burgers, a fast food joint, offers its customers a chicken burger meal with fries, coleslaw, and soda at a price lower than would be charged if the products were purchased separately. This example would best describe a(n) _____.

Which of the following is an example of a demographic factor that influences the pricing decision of a product?

Which of the following factors influencing pricing decisions pertains to the expected consumption rates, the location, and the position of potential buyers?

Buyers who want to avoid the hassle of waiting in line to order a pizza at Grundel's Pizza Joint can buy their pizzas sooner at a higher cost. Such costs are examples of _____ costs.

Which of the following is a type of psychological pricing strategy?

Which of the following is true of a high/low pricing strategy?

Markup pricing:

Strategic Planning and the Marketing Management Process

Marketing Research: Process and Systems for Decision Making

Consumer Behavior

Business, Government, and Institutional Buying

Market Segmentation

Product and Brand Strategy

New Product Planning and Development

Integrated Marketing Communications

Personal Selling, Relationship Building, and Sales Management

Distribution Strategy

The Marketing of Services

Global Marketing

Portfolio Models

Filters