Question 1

results when a company uses pricing methods that make it difficult for consumers to understand just what price they are really paying.

Accepted Answer

A) Skimming pricing 
B) Comparison pricing 
C) Price confusion 
D) Predatory pricing 
E) Price collusion

Question 2

Why do businesses use cash discounts when they are in essence losing some money on the sale?

Accepted Answer

The answer of Why do businesses use cash discounts when...

Question 3

What regulates pricing activities when the federal government does not?

Accepted Answer

The answer of What regulates pricing activities when the federal...

Question 4

The JC Whitney Company of Chicago offers replacement parts for older Volkswagen Beetles.Parts are often shipped from other locations throughout the United States.However,the company charges for shipping as if every part was shipped from its Chicago headquarters.The company practices _ .

Accepted Answer

A) basing- point pricing 
B) uniform- delivered pricing 
C) FOB- origin pricing 
D) zone pricing 
E) none of the above

Question 5

Of the following,which statement(s)would NOT support a market- skimming policy for a new product?

Accepted Answer

A) Competitors can enter the market easily. 
B) The product's quality and image support its higher price. 
C) Enough buyers want the products at that price. 
D) Competitors are not able to undercut the high price. 
E) C and D

Question 6

Mach 3 razor blades must be used in the Mach 3 razor.Which type of pricing is being used?

Accepted Answer

A) captive product pricing 
B) product bundle pricing 
C) by- product pricing 
D) product line pricing 
E) optional product pricing

Question 7

Freight- absorption pricing is used for _ and .

Accepted Answer

A) generating temporary higher profits;discouraging competitors 
B) market penetration;holding on to increasingly competitive markets 
C) holding on to increasingly competitive markets;higher profit margins 
D) market penetration;higher profit margins 
E) services;installations

Question 8

Price escalation in international markets may result from differences in market conditions or .

Accepted Answer

A) regional tastes 
B) customer perceptions 
C) cultural preferences 
D) language barriers 
E) selling strategies

Question 9

Using this pricing strategy,the seller takes responsibility for part or all of the actual freight charges in order to get the desired business.

Accepted Answer

A) FOB origin 
B) zone 
C) loss leader 
D) basing- point 
E) freight- absorption

Question 10

When sellers set prices after talking to competitors and engaging in collusion,they are involved in .

Accepted Answer

A) price fixing 
B) skimming pricing 
C) penetration pricing 
D) discriminatory pricing 
E) predatory pricing

Question 11

Service Industries,Inc.plans to offer a price- adjustment strategy in the near future.It could consider each of the following EXCEPT .

Accepted Answer

A) discount and allowance pricing 
B) location pricing 
C) segmented pricing 
D) promotional pricing 
E) physiological pricing

Question 12

Give two examples of by- product pricing.

Accepted Answer

The answer of Give two examples of by- product pricing....

Question 13

Market- skimming pricing would likely be most effective in selling .

Accepted Answer

A) most items at EDLP retailers such as Walmart 
B) any convenience item 
C) an electronic device for which research and development must be recouped 
D) shampoo and bath soap 
E) anything easily copied by competitors

Question 14

When using product bundle pricing,sellers combine several of their products and offer the bundle at an increased price for increased profit.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is NOT a price adjustment strategy?

Accepted Answer

A) seasonal pricing 
B) promotional pricing 
C) segmented pricing 
D) geographical pricing 
E) free samples

Question 16

If a large retailer sold numerous items below cost with the intention of punishing small competitors and gaining higher long- run profits by putting those competitors out of business,the retailer would be guilty of .

Accepted Answer

A) price fixing 
B) penetration pricing 
C) discriminatory pricing 
D) price collusion 
E) predatory pricing

Question 17

Price escalation in international markets may result from four of these five marketing conditions.Which one will have the LEAST effect?

Accepted Answer

A) market instability 
B) exchange- rate fluctuations 
C) language barriers 
D) the additional cost of physical distribution 
E) higher costs of selling

Question 18

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

Question 19

Compare the practices of price fixing and predatory pricing,explaining why each is prohibited by law.

Accepted Answer

The answer of Compare the practices of price fixing and...

Question 20

Lancaster Recycling has a history of problems with customers who do not pay their bills on time. Lancaster Recycling wants to improve its cash situation,reduce bad debts,and reduce
Credit- collection costs.The company might consider which of the following forms of pricing?

Accepted Answer

A) cash discounts 
B) captive- product 
C) inflation- adjusted 
D) penetration 
E) by- product

Exam 11: Additional Pricing Considerations

results when a company uses pricing methods that make it difficult for consumers to understand just what price they are really paying.

Why do businesses use cash discounts when they are in essence losing some money on the sale?

What regulates pricing activities when the federal government does not?

The JC Whitney Company of Chicago offers replacement parts for older Volkswagen Beetles.Parts are often shipped from other locations throughout the United States.However,the company charges for shipping as if every part was shipped from its Chicago headquarters.The company practices _ .

Of the following,which statement(s) would NOT support a market- skimming policy for a new product?

Mach 3 razor blades must be used in the Mach 3 razor.Which type of pricing is being used?

Freight- absorption pricing is used for _ and .

Price escalation in international markets may result from differences in market conditions or .

Using this pricing strategy,the seller takes responsibility for part or all of the actual freight charges in order to get the desired business.

When sellers set prices after talking to competitors and engaging in collusion,they are involved in .

Service Industries,Inc.plans to offer a price- adjustment strategy in the near future.It could consider each of the following EXCEPT .

Give two examples of by- product pricing.

Market- skimming pricing would likely be most effective in selling .

When using product bundle pricing,sellers combine several of their products and offer the bundle at an increased price for increased profit.

Which of the following is NOT a price adjustment strategy?

If a large retailer sold numerous items below cost with the intention of punishing small competitors and gaining higher long- run profits by putting those competitors out of business,the retailer would be guilty of .

Price escalation in international markets may result from four of these five marketing conditions.Which one will have the LEAST effect?

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

Compare the practices of price fixing and predatory pricing,explaining why each is prohibited by law.

Lancaster Recycling has a history of problems with customers who do not pay their bills on time. Lancaster Recycling wants to improve its cash situation,reduce bad debts,and reduce Credit- collection costs.The company might consider which of the following forms of pricing?