Question 1

Under what conditions would a marketer most likely use a price leader strategy?

Accepted Answer

The answer of Under what conditions would a marketer most...

Question 2

When a company that produces computer printers prices them somewhat low,but the ink required to operate the printer is priced higher per relative usage,it is using

Accepted Answer

A) bait pricing. 
B) a price leader. 
C) penetration pricing. 
D) price lining. 
E) captive pricing.

Question 3

The "White Sale" that many department stores have every year a few weeks after Christmas is an example of

Accepted Answer

A) secondary pricing. 
B) off-peak pricing. 
C) periodic discounting. 
D) random discounting. 
E) captive pricing.

Question 4

All of the following are pricing strategies used by companies establishing prices of multiple products within a product line except

Accepted Answer

A) premium pricing. 
B) price lining. 
C) captive pricing. 
D) bait pricing. 
E) penetration pricing.

Question 5

If Kroger Food Stores advertises 2-liter bottles of Pepsi for 89 cents to generate store traffic that will purchase other items at regular prices,the grocer is using

Accepted Answer

A) reference pricing. 
B) a price leader. 
C) special-event pricing. 
D) comparison discounting. 
E) professional pricing.

Question 6

Identify and describe six types of psychological pricing.

Accepted Answer

The answer of Identify and describe six types of psychological...

Question 7

Which of the following pricing objectives sets prices to recover cash as quickly as possible?

Accepted Answer

A) Market share 
B) Profit 
C) Cash flow 
D) Return on investment 
E) Product quality

Question 8

Maintaining or increasing market share

Accepted Answer

A) can be achieved even if industry sales are flat or decreasing. 
B) is an infrequently used pricing objective in most industries. 
C) depends upon the overall growth of the total industry. 
D) is a profit-related objective based on price. 
E) is directly tied to leading an industry in product quality.

Question 9

Kendra has been doing research for a smartphone manufacturing company.She has just been reviewing the results of several focus groups and has found that for customers,value is a function of the product's

Accepted Answer

A) quality attributes. 
B) price and brand name. 
C) price and durability. 
D) quality and functional attributes. 
E) quality relative to the quality of competing brands.

Question 10

During July and August,Lakewood Links Golf Course,located in South Carolina,offers weekday rates of $13 for a round of golf with a cart.During the rest of the year,the weekday rates are between $25 and $35.This is an example of the use of

Accepted Answer

A) differential pricing. 
B) incentives. 
C) competition-based pricing. 
D) demand-based pricing. 
E) random discounting.

Question 11

When Sharp first introduced its line of graphing calculators,it set the price quite high;it has lowered the price as competitors have entered the market.The pricing strategy initially used by Sharp is called

Accepted Answer

A) customary pricing. 
B) odd-even pricing. 
C) penetration pricing. 
D) price skimming. 
E) prestige pricing.

Question 12

The price of a hotel room is more important to a business traveler than to a tourist.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements about markup pricing is correct?

Accepted Answer

A) The use of similar markups reduces price competition. 
B) Markup pricing is inconvenient to use. 
C) Markup pricing results in a high price when demand is high and a low price when demand is low. 
D) Markup pricing is a demand-based pricing method. 
E) Using markups makes pricing a time-consuming,difficult process.

Question 14

To attract customers into a store,Safeway advertises its milk at less than cost,hoping that customers will purchase other groceries as well.This pricing strategy is called

Accepted Answer

A) price lining. 
B) special-event pricing. 
C) differential pricing. 
D) comparison discounting. 
E) price leader pricing.

Question 15

How are pricing objectives similar to a corporation's overall goals? How are they different?

Accepted Answer

The answer of How are pricing objectives similar to a...

Question 16

Compare and contrast price skimming and penetration pricing.

Accepted Answer

The answer of Compare and contrast price skimming and penetration...

Question 17

Captive pricing,premium pricing,bait pricing,and price lining are all strategies aimed at maximizing the profits of an entire product line rather than an individual product.

Accepted Answer

A) True 
 B)False

Question 18

When Gabriella logs on to Dell's website,she sees a notebook model priced well below $1,000.As she continues through the site to view the other options,she realizes the first one she saw was the cheapest model available,but she of course wants more features.Dell is utilizing

Accepted Answer

A) bait and switch. 
B) price lining. 
C) captive pricing. 
D) penetration pricing. 
E) bait pricing.

Question 19

One pitfall of cost-plus pricing for the buyer is that the seller may increase costs to establish a larger profit base.

Accepted Answer

A) True 
 B)False

Question 20

Running a big sale in order to generate enough cash flow to pay creditors is typical in a situation in which a firm's primary pricing objective is

Accepted Answer

A) status quo. 
B) profit. 
C) survival. 
D) market share. 
E) recovery.

Exam 21: Setting Prices

Under what conditions would a marketer most likely use a price leader strategy?

When a company that produces computer printers prices them somewhat low,but the ink required to operate the printer is priced higher per relative usage,it is using

The "White Sale" that many department stores have every year a few weeks after Christmas is an example of

All of the following are pricing strategies used by companies establishing prices of multiple products within a product line except

If Kroger Food Stores advertises 2-liter bottles of Pepsi for 89 cents to generate store traffic that will purchase other items at regular prices,the grocer is using

Identify and describe six types of psychological pricing.

Which of the following pricing objectives sets prices to recover cash as quickly as possible?

Maintaining or increasing market share

Kendra has been doing research for a smartphone manufacturing company.She has just been reviewing the results of several focus groups and has found that for customers,value is a function of the product's

During July and August,Lakewood Links Golf Course,located in South Carolina,offers weekday rates of $13 for a round of golf with a cart.During the rest of the year,the weekday rates are between $25 and $35.This is an example of the use of

When Sharp first introduced its line of graphing calculators,it set the price quite high;it has lowered the price as competitors have entered the market.The pricing strategy initially used by Sharp is called

The price of a hotel room is more important to a business traveler than to a tourist.

Which of the following statements about markup pricing is correct?

To attract customers into a store,Safeway advertises its milk at less than cost,hoping that customers will purchase other groceries as well.This pricing strategy is called

How are pricing objectives similar to a corporation's overall goals? How are they different?

Compare and contrast price skimming and penetration pricing.

Captive pricing,premium pricing,bait pricing,and price lining are all strategies aimed at maximizing the profits of an entire product line rather than an individual product.

When Gabriella logs on to Dell's website,she sees a notebook model priced well below $1,000.As she continues through the site to view the other options,she realizes the first one she saw was the cheapest model available,but she of course wants more features.Dell is utilizing

One pitfall of cost-plus pricing for the buyer is that the seller may increase costs to establish a larger profit base.

Running a big sale in order to generate enough cash flow to pay creditors is typical in a situation in which a firm's primary pricing objective is