Question 1

________ prices are the prices that buyers carry in their mind and refers to when looking at a given product.
Psychological
Reference
Promotional
Geographical
Dynamic

Accepted Answer

The answer of ________ prices are the prices that buyers...

Question 2

High-low pricing involves setting a product's initial price high and lowering it in six months.

Accepted Answer

A) True 
 B)False

Question 3

When Circuit Town Electronics sets its televisions at three price levels of $699, $899, and $1,099, it is using ________.
product line pricing
market-skimming pricing
market-penetration pricing
break-even pricing
target return pricing

Accepted Answer

The answer of When Circuit Town Electronics sets its televisions...

Question 4

Market-skimming pricing is practiced by companies that set a low initial price in order to get their "foot in the door" quickly and deeply, attract a large number of buyers quickly, and win a large market share.

Accepted Answer

A) True 
 B)False

Question 5

Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.
pure competition
monopolistic competition
oligopolistic competition
a pure monopoly
socialism

Accepted Answer

The answer of Under ________, the market consists of many...

Question 6

A company sets not a single price, but rather a ________ that covers different items in its line that change over time as products move through their life cycles.
pricing by-product
pricing structure
pricing loop
pricing cycle
pricing bundle

Accepted Answer

The answer of A company sets not a single price,...

Question 7

Which of the following would likely be ineffective in supporting a market-skimming policy for a new product?
The product's quality and image must support its higher price.
Enough buyers must want the products at that price.
Competitors are not able to undercut the high price.
Competitors can enter the market easily.
The cost of producing a smaller volume is not so high that it negates the advantage of charging more per unit.

Accepted Answer

The answer of Which of the following would likely be...

Question 8

It is most typical for producers who use captive-product pricing to set the price of the main product ________ and set ________ on the supplies necessary to use the product.
low; low markups
high; low markups
low; high markups
high; high markups
moderately; moderate markups

Accepted Answer

The answer of It is most typical for producers who...

Question 9

When Whallans Gift Card Shop offers a price reduction to customers who buy Christmas cards the week after Christmas, Whallans is giving a(n) ________ discount.
functional
seasonal
annual
allowance
credit

Accepted Answer

The answer of When Whallans Gift Card Shop offers a...

Question 10

When a manufacturer offers a ________, customers buy products from manufacturers' dealers within a specified time period and the manufacturer sends the customer a check.
cash rebate
special event price
dealer reduction
promotional pricing reward
discount allowance

Accepted Answer

The answer of When a manufacturer offers a ________, customers...

Question 11

Which of the following is not a price adjustment strategy?
segmented pricing
customer value-based pricing
promotional pricing
discount and allowance pricing
dynamic pricing

Accepted Answer

The answer of Which of the following is not a...

Question 12

What type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency?
segmented pricing
psychological pricing
referent pricing
promotional pricing
dynamic pricing

Accepted Answer

The answer of What type of pricing is being used...

Question 13

A company faces fixed costs of $100,000 and variable costs of $8.00/unit.They plan to directly sell their product to the market for $12.00.How many units must they produce and sell to break even?
20,000
25,000
40,000
50,000
not enough information to calculate

Accepted Answer

The answer of A company faces fixed costs of $100,000...

Question 14

Some industries commonly use two-part pricing, where the price is broken down into a fixed fee and a fixed usage rate.

Accepted Answer

A) True 
 B)False

Question 15

Product costs set a(n) ________ to a product's price.
demand curve
experience curve
floor
ceiling
break-even cost

Accepted Answer

The answer of Product costs set a(n) ________ to a...

Question 16

Under ________, the market consists of a few sellers who are highly sensitive to each other's pricing and marketing strategies.
pure competition
monopolistic competition
oligopolistic competition
a pure monopoly
capitalism

Accepted Answer

The answer of Under ________, the market consists of a...

Question 17

General Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment.This approach is called ________.
value-based pricing
going-rate pricing
cost-plus pricing
low-price image
target return pricing

Accepted Answer

The answer of General Motors prices its automobiles to achieve...

Question 18

Companies involved in deciding which items to include in the base price and which to offer as options are engaged in ________ pricing.
product bundle
optional-product
captive-product
by-product
skimming

Accepted Answer

The answer of Companies involved in deciding which items to...

Question 19

The fact that a hot dog costs five times more at Disneyland than at Costco is an example of ________.
allowance pricing
captive-product pricing
penetration pricing
segmented pricing
promotional pricing

Accepted Answer

The answer of The fact that a hot dog costs...

Question 20

Used too frequently, promotional pricing can have the negative effect of decreasing the brand's value in the eyes of customers.

Accepted Answer

A) True 
 B)False

Exam 10: Pricing: Understanding and Capturing Customer Value

________ prices are the prices that buyers carry in their mind and refers to when looking at a given product. Psychological Reference Promotional Geographical Dynamic

High-low pricing involves setting a product's initial price high and lowering it in six months.

When Circuit Town Electronics sets its televisions at three price levels of $699, $899, and $1,099, it is using ________. product line pricing market-skimming pricing market-penetration pricing break-even pricing target return pricing

Market-skimming pricing is practiced by companies that set a low initial price in order to get their "foot in the door" quickly and deeply, attract a large number of buyers quickly, and win a large market share.

Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price. pure competition monopolistic competition oligopolistic competition a pure monopoly socialism

A company sets not a single price, but rather a ________ that covers different items in its line that change over time as products move through their life cycles. pricing by-product pricing structure pricing loop pricing cycle pricing bundle

It is most typical for producers who use captive-product pricing to set the price of the main product and set on the supplies necessary to use the product. low; low markups high; low markups low; high markups high; high markups moderately; moderate markups

When Whallans Gift Card Shop offers a price reduction to customers who buy Christmas cards the week after Christmas, Whallans is giving a(n) ________ discount. functional seasonal annual allowance credit

When a manufacturer offers a ________, customers buy products from manufacturers' dealers within a specified time period and the manufacturer sends the customer a check. cash rebate special event price dealer reduction promotional pricing reward discount allowance

Which of the following is not a price adjustment strategy? segmented pricing customer value-based pricing promotional pricing discount and allowance pricing dynamic pricing

What type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency? segmented pricing psychological pricing referent pricing promotional pricing dynamic pricing

A company faces fixed costs of $100,000 and variable costs of $8.00/unit.They plan to directly sell their product to the market for $12.00.How many units must they produce and sell to break even? 20,000 25,000 40,000 50,000 not enough information to calculate

Some industries commonly use two-part pricing, where the price is broken down into a fixed fee and a fixed usage rate.

Product costs set a(n) ________ to a product's price. demand curve experience curve floor ceiling break-even cost

Under ________, the market consists of a few sellers who are highly sensitive to each other's pricing and marketing strategies. pure competition monopolistic competition oligopolistic competition a pure monopoly capitalism

General Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment.This approach is called ________. value-based pricing going-rate pricing cost-plus pricing low-price image target return pricing

Companies involved in deciding which items to include in the base price and which to offer as options are engaged in ________ pricing. product bundle optional-product captive-product by-product skimming

The fact that a hot dog costs five times more at Disneyland than at Costco is an example of ________. allowance pricing captive-product pricing penetration pricing segmented pricing promotional pricing

Used too frequently, promotional pricing can have the negative effect of decreasing the brand's value in the eyes of customers.

Exam 10: Pricing: Understanding and Capturing Customer Value

________ prices are the prices that buyers carry in their mind and refers to when looking at a given product. Psychological Reference Promotional Geographical Dynamic

High-low pricing involves setting a product's initial price high and lowering it in six months.

When Circuit Town Electronics sets its televisions at three price levels of $699, $899, and $1,099, it is using ________. product line pricing market-skimming pricing market-penetration pricing break-even pricing target return pricing

Market-skimming pricing is practiced by companies that set a low initial price in order to get their "foot in the door" quickly and deeply, attract a large number of buyers quickly, and win a large market share.

Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price. pure competition monopolistic competition oligopolistic competition a pure monopoly socialism

A company sets not a single price, but rather a ________ that covers different items in its line that change over time as products move through their life cycles. pricing by-product pricing structure pricing loop pricing cycle pricing bundle

It is most typical for producers who use captive-product pricing to set the price of the main product ________ and set ________ on the supplies necessary to use the product. low; low markups high; low markups low; high markups high; high markups moderately; moderate markups

When Whallans Gift Card Shop offers a price reduction to customers who buy Christmas cards the week after Christmas, Whallans is giving a(n) ________ discount. functional seasonal annual allowance credit

When a manufacturer offers a ________, customers buy products from manufacturers' dealers within a specified time period and the manufacturer sends the customer a check. cash rebate special event price dealer reduction promotional pricing reward discount allowance

Which of the following is not a price adjustment strategy? segmented pricing customer value-based pricing promotional pricing discount and allowance pricing dynamic pricing

What type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency? segmented pricing psychological pricing referent pricing promotional pricing dynamic pricing

A company faces fixed costs of $100,000 and variable costs of $8.00/unit.They plan to directly sell their product to the market for $12.00.How many units must they produce and sell to break even? 20,000 25,000 40,000 50,000 not enough information to calculate

Some industries commonly use two-part pricing, where the price is broken down into a fixed fee and a fixed usage rate.

Product costs set a(n) ________ to a product's price. demand curve experience curve floor ceiling break-even cost

Under ________, the market consists of a few sellers who are highly sensitive to each other's pricing and marketing strategies. pure competition monopolistic competition oligopolistic competition a pure monopoly capitalism

General Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment.This approach is called ________. value-based pricing going-rate pricing cost-plus pricing low-price image target return pricing

Companies involved in deciding which items to include in the base price and which to offer as options are engaged in ________ pricing. product bundle optional-product captive-product by-product skimming

The fact that a hot dog costs five times more at Disneyland than at Costco is an example of ________. allowance pricing captive-product pricing penetration pricing segmented pricing promotional pricing

Used too frequently, promotional pricing can have the negative effect of decreasing the brand's value in the eyes of customers.

It is most typical for producers who use captive-product pricing to set the price of the main product and set on the supplies necessary to use the product. low; low markups high; low markups low; high markups high; high markups moderately; moderate markups