Question 1

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

Question 2

Which of the following types of discounts is offered to channel members for purchasing and marketing a large number of units?

Accepted Answer

A)  Quantity discounts 
B)  Promotional allowances 
C)  Slotting allowances 
D)  Loyalty discounts 
A)  Quantity discounts 
B)  Promotional allowances 
C)  Slotting allowances 
D)  Loyalty discounts

Question 3

Travel agencies offering vacation packages that include travel, accommodation, and entertainment at a single price to connote value and convenience for customers is an example of _____.

Accepted Answer

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

Question 4

Kenny and Tessa are planning to go on a vacation. They learn that Dreamz Travel, a travel agency, is offering a special package that includes travel, lodging, and entertainment at a much lower price than the couple would have to pay for all of them separately. Which of the following pricing strategies is Dreamz Travel using in this scenario?

Accepted Answer

A)  Price skimming 
B)  Odd-even pricing 
C)  Reference rate pricing 
D)  Bundle pricing 
A)  Price skimming 
B)  Odd-even pricing 
C)  Reference rate pricing 
D)  Bundle pricing

Question 5

_____ is an example of pricing below competition, in which the firm is bidding directly against competition for project contracts.

Accepted Answer

A)  Prestige pricing 
B)  Bundle pricing 
C)  Price skimming 
D)  Sealed-bid pricing 
A)  Prestige pricing 
B)  Bundle pricing 
C)  Price skimming 
D)  Sealed-bid pricing

Question 6

Paper&More Inc. is an online retailer of printers and accessories. A recent advertisement on its website reads, "Buy a compact photo printer and single-use color cartridge combo and save 30% percent off retail prices! Limited period offer. Act now!" Which of the following pricing strategies is the retailer using to sell its products?

Accepted Answer

A)  Odd-even pricing 
B)  Prestige pricing 
C)  Bundle pricing 
D)  Optimized pricing 
A)  Odd-even pricing 
B)  Prestige pricing 
C)  Bundle pricing 
D)  Optimized pricing

Question 7

Matrixautos, an automobile rental unit, rents its cars at $499 rather than $500 to encourage its consumers to think of its services as less expensive. 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 8

A company tends to use penetration pricing when it:

Accepted Answer

A)  perceives the demand for a new product to be price inelastic. 
B)  wants to charge a relatively high price on a new product. 
C)  expects competition to move in rapidly. 
D)  has a temporary monopoly in the market. 
A)  perceives the demand for a new product to be price inelastic. 
B)  wants to charge a relatively high price on a new product. 
C)  expects competition to move in rapidly. 
D)  has a temporary monopoly in the market.

Question 9

Deceptive pricing practices are outlawed under the _____ Act.

Accepted Answer

A)  Federal Trade Commission 
B)  Sherman-Antitrust 
C)  Taft-Hartley 
D)  Fair Pricing 
A)  Federal Trade Commission 
B)  Sherman-Antitrust 
C)  Taft-Hartley 
D)  Fair Pricing

Question 10

A company that manufactures LED lights is planning a long-term price change for its line of decorative table lamps. Which of the following is a psychological factor that the company is most likely to consider when making pricing decisions?

Accepted Answer

A)  The location of potential buyers 
B)  The number of potential buyers 
C)  The economic strength of potential buyers 
D)  The prestige orientation of potential buyers 
A)  The location of potential buyers 
B)  The number of potential buyers 
C)  The economic strength of potential buyers 
D)  The prestige orientation of potential buyers

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

Which of the following types of discounts is offered to channel members for purchasing and marketing a large number of units?

Travel agencies offering vacation packages that include travel, accommodation, and entertainment at a single price to connote value and convenience for customers is an example of _____.

_____ is an example of pricing below competition, in which the firm is bidding directly against competition for project contracts.

Matrixautos, an automobile rental unit, rents its cars at $499 rather than $500 to encourage its consumers to think of its services as less expensive. This is an example of _____ pricing.

A company tends to use penetration pricing when it:

Deceptive pricing practices are outlawed under the _____ Act.

A company that manufactures LED lights is planning a long-term price change for its line of decorative table lamps. Which of the following is a psychological factor that the company is most likely to consider when making pricing decisions?

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 is a type of psychological pricing strategy?

Which of the following types of discounts is offered to channel members for purchasing and marketing a large number of units?

Travel agencies offering vacation packages that include travel, accommodation, and entertainment at a single price to connote value and convenience for customers is an example of _____.

_____ is an example of pricing below competition, in which the firm is bidding directly against competition for project contracts.

Matrixautos, an automobile rental unit, rents its cars at $499 rather than $500 to encourage its consumers to think of its services as less expensive. This is an example of _____ pricing.

A company tends to use penetration pricing when it:

Deceptive pricing practices are outlawed under the _____ Act.

A company that manufactures LED lights is planning a long-term price change for its line of decorative table lamps. Which of the following is a psychological factor that the company is most likely to consider when making pricing decisions?

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