Question 1

Which of the following factors is primarily concerned with how consumers perceive various prices or price changes?

Accepted Answer

A)  Environmental factors 
B)  Psychological factors 
C)  Demographic factors 
D)  Sociological factors 
A)  Environmental factors 
B)  Psychological factors 
C)  Demographic factors 
D)  Sociological factors

Question 2

Which of the following businesses is most likely to use rate-of-return pricing?

Accepted Answer

A)  A grocery wholesaler 
B)  A glass manufacturer 
C)  An independently owned clothing retailer 
D)  A construction company 
A)  A grocery wholesaler 
B)  A glass manufacturer 
C)  An independently owned clothing retailer 
D)  A construction company

Question 3

Enchante Inc. is a high-end perfume manufacturer. It slashed the price of its brand of perfume "Entice" by 5 percent which resulted in a 20 percent increase in sales. Estimate the price elasticity for Entice.

Accepted Answer

A)  4 
B)  5 
C)  20 
D)  100 
A)  4 
B)  5 
C)  20 
D)  100

Question 4

In the context of product considerations in pricing, a(n) _____ is an approach to pricing in which a seller charges a relatively low price on a new product and is used when demand for the product is, at least in the short run, price elastic.

Accepted Answer

A)  going rate policy 
B)  markdown policy 
C)  penetration policy 
D)  skimming policy 
A)  going rate policy 
B)  markdown policy 
C)  penetration policy 
D)  skimming policy

Question 5

Starlight Inc. is a company that manufactures and sells decorative LED lights. Which of the following is a demographic factor that is likely to influence Starlight's pricing decisions?

Accepted Answer

A)  The position of potential buyers 
B)  The nature of the product 
C)  The perception of price in the minds of potential buyers 
D)  The prestige orientation of potential buyers 
A)  The position of potential buyers 
B)  The nature of the product 
C)  The perception of price in the minds of potential buyers 
D)  The prestige orientation of potential buyers

Question 6

An advertisement for a popular fashion magazine reads: "Act now. Buy a 24-issue subscription and save $49 off the newsstand price." This is an example of a _____.

Accepted Answer

A)  promotional allowance 
B)  slotting allowance 
C)  quantity discount 
D)  functional discount 
A)  promotional allowance 
B)  slotting allowance 
C)  quantity discount 
D)  functional discount

Question 7

Which of the following is a psychological factor affecting pricing decisions?

Accepted Answer

A)  The expected consumption rates of potential buyers 
B)  The location of potential buyers 
C)  The likelihood of potential buyers using price as an indicator of quality 
D)  The economic strength of potential buyers 
A)  The expected consumption rates of potential buyers 
B)  The location of potential buyers 
C)  The likelihood of potential buyers using price as an indicator of quality 
D)  The economic strength of potential buyers

Question 8

Markup pricing is a variation of cost-oriented pricing in which:

Accepted Answer

A)  the price is determined by adding a desired rate of return on investment to total costs. 
B)  a percentage is added to the retailer's invoice price to determine the final selling price of the product. 
C)  the costs of producing a product or completing a project are totaled and a profit amount or percentage is added on. 
D)  a breakeven analysis is performed for expected production and sales levels and a rate of return is added on. 
A)  the price is determined by adding a desired rate of return on investment to total costs. 
B)  a percentage is added to the retailer's invoice price to determine the final selling price of the product. 
C)  the costs of producing a product or completing a project are totaled and a profit amount or percentage is added on. 
D)  a breakeven analysis is performed for expected production and sales levels and a rate of return is added on.

Question 9

_____ is an example of a psychological pricing strategy.

Accepted Answer

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

Question 10

Price elasticity (e) = x/percent change in price, where x stands for:

Accepted Answer

A)  percent change in number of consumers. 
B)  gross change in price. 
C)  gross change in production. 
D)  percent change in quantity demanded. 
A)  percent change in number of consumers. 
B)  gross change in price. 
C)  gross change in production. 
D)  percent change in quantity demanded.

Question 11

Which of the following kinds of pricing strategies would you expect producers to use for pricing homogeneous products, such as wool, tomatoes, wheat, coal, and bone meal?

Accepted Answer

A)  Penetration pricing 
B)  Going-rate pricing 
C)  Skimming pricing 
D)  Sealed-bid pricing 
A)  Penetration pricing 
B)  Going-rate pricing 
C)  Skimming pricing 
D)  Sealed-bid pricing

Question 12

Which of the following best explains why Delicia Co., a manufacturer of potato chips, prices each bag of potato chips at 99 cents rather than $1.00?

Accepted Answer

A)  To encourage consumers to think these chips are less expensive 
B)  To attract those consumers who are not too keen about the quality of the chips 
C)  To create a signal that these chips are exceptionally fine 
D)  To increase sales by offering the chips at a discounted price 
A)  To encourage consumers to think these chips are less expensive 
B)  To attract those consumers who are not too keen about the quality of the chips 
C)  To create a signal that these chips are exceptionally fine 
D)  To increase sales by offering the chips at a discounted price

Question 13

While setting up an initial price structure for a product, a marketer should primarily:

Accepted Answer

A)  discount environmental and external factors. 
B)  consider the recommended price to various channel members. 
C)  overlook number of products sold by competitors. 
D)  de-emphasize profit potential. 
A)  discount environmental and external factors. 
B)  consider the recommended price to various channel members. 
C)  overlook number of products sold by competitors. 
D)  de-emphasize profit potential.

Question 14

Which of the following is true of the rate-of-return approach to pricing?

Accepted Answer

A)  Rate-of-return pricing is commonly used by manufacturers. 
B)  Rate-of-return pricing is a psychological pricing strategy. 
C)  Rate-of-return pricing does not involve circular reasoning. 
D)  Rate-of-return pricing places maximum emphasis on estimating sales volume. 
A)  Rate-of-return pricing is commonly used by manufacturers. 
B)  Rate-of-return pricing is a psychological pricing strategy. 
C)  Rate-of-return pricing does not involve circular reasoning. 
D)  Rate-of-return pricing places maximum emphasis on estimating sales volume.

Question 15

Setting prices in a way that targeted customers perceive products to offer greater worth than competitive offerings is called _____ pricing.

Accepted Answer

A)  target 
B)  markup 
C)  value 
D)  everyday low 
A)  target 
B)  markup 
C)  value 
D)  everyday low

Question 16

One of the psychological factors affecting pricing decisions is the:

Accepted Answer

A)  expected consumption rates of potential buyers. 
B)  location of potential buyers. 
C)  amount potential buyers will be willing to pay for the product. 
D)  economic strength of potential buyers. 
A)  expected consumption rates of potential buyers. 
B)  location of potential buyers. 
C)  amount potential buyers will be willing to pay for the product. 
D)  economic strength of potential buyers.

Question 17

A gas station in South Ventalia charges $4.99 instead of $5.00 for regular gas and $9.99 instead of $10.00 for premium gas to encourage its customers to believe that its prices are low. This is an example of _____ pricing.

Accepted Answer

A)  prestige 
B)  bundle 
C)  markup 
D)  odd-even 
A)  prestige 
B)  bundle 
C)  markup 
D)  odd-even

Question 18

Herald Inc. is a leading producer of software technology and cloud computing devices. In an attempt to further its goal of innovation, Herald introduces a technologically advanced one-of-a-kind user interface at a relatively high price. By doing so, Herald seeks temporary monopoly until competitors move in. This is a typical example of a(n) _____ policy.

Accepted Answer

A)  penetration 
B)  odd-even 
C)  skimming 
D)  going-rate 
A)  penetration 
B)  odd-even 
C)  skimming 
D)  going-rate

Question 19

Konnectz Inc. plans to launch the latest version of its smartphone. As part of its market research and pricing strategy, it takes into account the economic buying potential of its target consumers and their locations. Which of the following factors influencing pricing decisions is Konnectz primarily concerned with in this scenario?

Accepted Answer

A)  Psychological factors 
B)  Environmental influences 
C)  Demographic factors 
D)  Product characteristics 
A)  Psychological factors 
B)  Environmental influences 
C)  Demographic factors 
D)  Product characteristics

Question 20

Which of the following is a common pricing objective?

Accepted Answer

A)  Pricing to maximize short-term profits 
B)  Pricing to reduce inventory costs 
C)  Pricing to achieve a target market share 
D)  Pricing to increase the prestige of a product 
A)  Pricing to maximize short-term profits 
B)  Pricing to reduce inventory costs 
C)  Pricing to achieve a target market share 
D)  Pricing to increase the prestige of a product

Which of the following factors is primarily concerned with how consumers perceive various prices or price changes?

Which of the following businesses is most likely to use rate-of-return pricing?

Enchante Inc. is a high-end perfume manufacturer. It slashed the price of its brand of perfume "Entice" by 5 percent which resulted in a 20 percent increase in sales. Estimate the price elasticity for Entice.

In the context of product considerations in pricing, a(n) _____ is an approach to pricing in which a seller charges a relatively low price on a new product and is used when demand for the product is, at least in the short run, price elastic.

Starlight Inc. is a company that manufactures and sells decorative LED lights. Which of the following is a demographic factor that is likely to influence Starlight's pricing decisions?

An advertisement for a popular fashion magazine reads: "Act now. Buy a 24-issue subscription and save $49 off the newsstand price." This is an example of a _____.

Which of the following is a psychological factor affecting pricing decisions?

Markup pricing is a variation of cost-oriented pricing in which:

_____ is an example of a psychological pricing strategy.

Price elasticity (e) = x/percent change in price, where x stands for:

Which of the following kinds of pricing strategies would you expect producers to use for pricing homogeneous products, such as wool, tomatoes, wheat, coal, and bone meal?

Which of the following best explains why Delicia Co., a manufacturer of potato chips, prices each bag of potato chips at 99 cents rather than $1.00?

While setting up an initial price structure for a product, a marketer should primarily:

Which of the following is true of the rate-of-return approach to pricing?

Setting prices in a way that targeted customers perceive products to offer greater worth than competitive offerings is called _____ pricing.

One of the psychological factors affecting pricing decisions is the:

A gas station in South Ventalia charges $4.99 instead of $5.00 for regular gas and $9.99 instead of $10.00 for premium gas to encourage its customers to believe that its prices are low. This is an example of _____ pricing.

Which of the following is a common pricing objective?

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

Which of the following factors is primarily concerned with how consumers perceive various prices or price changes?

Which of the following businesses is most likely to use rate-of-return pricing?

Enchante Inc. is a high-end perfume manufacturer. It slashed the price of its brand of perfume "Entice" by 5 percent which resulted in a 20 percent increase in sales. Estimate the price elasticity for Entice.

In the context of product considerations in pricing, a(n) _____ is an approach to pricing in which a seller charges a relatively low price on a new product and is used when demand for the product is, at least in the short run, price elastic.

Starlight Inc. is a company that manufactures and sells decorative LED lights. Which of the following is a demographic factor that is likely to influence Starlight's pricing decisions?

An advertisement for a popular fashion magazine reads: "Act now. Buy a 24-issue subscription and save $49 off the newsstand price." This is an example of a _____.

Which of the following is a psychological factor affecting pricing decisions?

Markup pricing is a variation of cost-oriented pricing in which:

_____ is an example of a psychological pricing strategy.

Price elasticity (e) = x/percent change in price, where x stands for:

Which of the following kinds of pricing strategies would you expect producers to use for pricing homogeneous products, such as wool, tomatoes, wheat, coal, and bone meal?

Which of the following best explains why Delicia Co., a manufacturer of potato chips, prices each bag of potato chips at 99 cents rather than $1.00?

While setting up an initial price structure for a product, a marketer should primarily:

Which of the following is true of the rate-of-return approach to pricing?

Setting prices in a way that targeted customers perceive products to offer greater worth than competitive offerings is called _____ pricing.

One of the psychological factors affecting pricing decisions is the:

A gas station in South Ventalia charges $4.99 instead of $5.00 for regular gas and $9.99 instead of $10.00 for premium gas to encourage its customers to believe that its prices are low. This is an example of _____ pricing.

Which of the following is a common pricing objective?

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