Question 1

The major price-adjustment strategies include discount and allowance pricing, segmented pricing, psychological pricing, promotional pricing, geographical pricing, dynamic pricing, and international pricing.

Accepted Answer

A) True 
 B)False

Question 2

Environmental elements that affect pricing decisions are categorized as external factors.

Accepted Answer

A) True 
 B)False

Question 3

________ pricing involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for the company's efforts and risks.
Value-based
Fixed cost
Cost-based
Variable
Skimming

Accepted Answer

The answer of ________ pricing involves setting prices based on...

Question 4

With product bundle pricing, sellers can combine several products and offer the bundle ________.
as a working unit
at a reduced price
as a complete self-service package
as a reward to loyal customers
as segmented pricing

Accepted Answer

The answer of With product bundle pricing, sellers can combine...

Question 5

A quantity discount is a price reduction to buyers who purchase ________.
frequently
large volumes
close outs
inferior merchandise
superior merchandise

Accepted Answer

The answer of A quantity discount is a price reduction...

Question 6

When a firm varies its price by the season, month, day, or even hour, it is using ________ pricing.
revenue management
penetration
skimming
time-based
value-added

Accepted Answer

The answer of When a firm varies its price by...

Question 7

Each of the following economic factors can have a strong impact on a firm's pricing strategy except ________.
an economic boom
the reseller's reaction to price changes
an economic recession
inflation
interest rates

Accepted Answer

The answer of Each of the following economic factors can...

Question 8

To offset the pricing of its main product, the Toronto Zoo has partnered with a waste management company to turn animal waste into methane gas to be used to produce power.This is an example of __________.
product line pricing
optional-product pricing
captive-product pricing
by-product pricing
allowance pricing

Accepted Answer

The answer of To offset the pricing of its main...

Question 9

With ________ pricing, price is set to match consumers' perceptions of product value.
variable cost
cost-plus
cost-based
value-based
everyday low

Accepted Answer

The answer of With ________ pricing, price is set to...

Question 10

Which of the following is a cost-based approach to pricing?
value-based pricing
going-rate pricing
break-even pricing
good-value pricing
A and C

Accepted Answer

The answer of Which of the following is a cost-based...

Question 11

Give two examples of products for which captive-product pricing may be used.

Accepted Answer

The answer of Give two examples of products for which...

Question 12

Functional discounts (offering a larger discount to wholesalers than to retailers) are legal Canada.

Accepted Answer

A) True 
 B)False

Question 13

In Lima, Peru, 20 stores specializing in selling the same quality and brand of wheat products are located on one street.An individual seller cannot charge more than the going price without the risk of losing business to the other stores.This is an example of what type of market?
pure competition
monopolistic competition
oligopolistic competition
pure monopoly
socialist

Accepted Answer

The answer of In Lima, Peru, 20 stores specializing in...

Question 14

A company considering a price change should be concerned about consumers' reactions but not competitors' reactions.

Accepted Answer

A) True 
 B)False

Question 15

How do consumers benefit from product bundle pricing?

Accepted Answer

The answer of How do consumers benefit from product bundle...

Question 16

Which of the following statements about a break-even chart is true?
It is used to determine how the customer-perceived value changes with value-added pricing.
It is a tool used to calculate fixed costs.
It shows the level of earnings a company has during an accounting period.
It is a tool marketers use to examine the relationship between supply and demand.
It uses variable costs, the unit price, and fixed costs.

Accepted Answer

The answer of Which of the following statements about a...

Question 17

Value-based pricing is the reverse process of ________ pricing.
variable cost
cost-plus
cost-based
good-value
value-added

Accepted Answer

The answer of Value-based pricing is the reverse process of...

Question 18

Why is product line pricing used?

Accepted Answer

The answer of Why is product line pricing used?...

Question 19

Why is price considered to be one of the most flexible elements of the marketing mix?

Accepted Answer

The answer of Why is price considered to be one...

Question 20

Identify and explain several situations in which price cuts or price increases might be necessary.

Accepted Answer

The answer of Identify and explain several situations in which...

Exam 10: Pricing: Understanding and Capturing Customer Value

The major price-adjustment strategies include discount and allowance pricing, segmented pricing, psychological pricing, promotional pricing, geographical pricing, dynamic pricing, and international pricing.

Environmental elements that affect pricing decisions are categorized as external factors.

________ pricing involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for the company's efforts and risks. Value-based Fixed cost Cost-based Variable Skimming

With product bundle pricing, sellers can combine several products and offer the bundle ________. as a working unit at a reduced price as a complete self-service package as a reward to loyal customers as segmented pricing

A quantity discount is a price reduction to buyers who purchase ________. frequently large volumes close outs inferior merchandise superior merchandise

When a firm varies its price by the season, month, day, or even hour, it is using ________ pricing. revenue management penetration skimming time-based value-added

Each of the following economic factors can have a strong impact on a firm's pricing strategy except ________. an economic boom the reseller's reaction to price changes an economic recession inflation interest rates

With ________ pricing, price is set to match consumers' perceptions of product value. variable cost cost-plus cost-based value-based everyday low

Which of the following is a cost-based approach to pricing? value-based pricing going-rate pricing break-even pricing good-value pricing A and C

Give two examples of products for which captive-product pricing may be used.

Functional discounts (offering a larger discount to wholesalers than to retailers) are legal Canada.

A company considering a price change should be concerned about consumers' reactions but not competitors' reactions.

How do consumers benefit from product bundle pricing?

Value-based pricing is the reverse process of ________ pricing. variable cost cost-plus cost-based good-value value-added

Why is product line pricing used?

Why is price considered to be one of the most flexible elements of the marketing mix?

Identify and explain several situations in which price cuts or price increases might be necessary.