Question 1

The latest in appliance technology allows your refrigerator to send messages to your smartphone and even photos of the interior to remind you of what you need to pick up at the store.Taking advantage of strong consumer demand for technology-enabled products,marketers set prices for these refrigerators at thousands above other models.These marketers are using a ________ pricing strategy.

Accepted Answer

A)  skimming
B)  penetration
C)  prestige
D)  price lining
E)  bundleF) C) and D)
G) A) and C)

Question 2

Bundle pricing is considered to be a ________ pricing practice.

Accepted Answer

A)  demand-oriented
B)  cost-oriented
C)  profit-oriented
D)  competition-oriented
E)  product line-orientedF) A) and D)
G) B) and C)

Question 3

Free on board (FOB) origin pricing is

Accepted Answer

A)  a method of pricing where the price the seller sets includes all transportation costs.
B)  a method of pricing where taxes and tariffs are adjusted based upon the city,state,or country of origin of a product and not its destination.
C)  the price the seller quotes that includes only the cost of loading the product onto or into a vehicle and where the loading is to occur.
D)  a method of pricing where taxes and tariffs are adjusted based upon the city,state,or country destination of a product and not its place of origin.
E)  the buyer's naming the location of this loading as the seller's factory or warehouse.F) A) and B)
G) B) and E)

Question 4

What are the four kinds of discounts that are especially important in marketing pricing strategy?

Accepted Answer

Discounts are reductions from list price...

Question 5

When a firm divides its selling territory into geographic areas,it is referred to as

Accepted Answer

A)  single-zone pricing.
B)  multiple-zone pricing.
C)  geographic pricing.
D)  FOB origin pricing.
E)  basing-point pricing.F) A) and C)
G) A) and B)

Question 6

Manufacturers of private brands use which method of competition-oriented pricing?

Accepted Answer

A)  penetration pricing
B)  below-market pricing
C)  loss-leader pricing
D)  prestige pricing
E)  skimming pricingF) A) and B)
G) A) and C)

Question 7

Which of the four approaches does Carmex use to set prices for its products?

Accepted Answer

Carmex uses each of the four perspective...

Question 8

The purpose of a cash discount is to

Accepted Answer

A)  reward retailers for making large quantity purchases.
B)  encourage purchasing items during periods of low demand.
C)  prevent competitors from obtaining shelf space.
D)  counteract the introduction of a new product by a competitor.
E)  encourage retailers to pay their bills promptly.F) B) and C)
G) C) and D)

Question 9

Figure 14-5
 
-Figure 14-5 above shows the results of a spreadsheet simulation to select a price to achieve a target return on investment (ROI) .What is the ROI for Scenario C?

Accepted Answer

A)  2%
B)  5%
C)  10%
D)  14%
E)  17%F) C) and D)
G) B) and D)

Question 10

Which of the following is a cost-oriented approach to pricing?

Accepted Answer

A)  cost-plus pricing
B)  skimming pricing
C)  prestige pricing
D)  loss-leader pricing
E)  bundle pricingF) D) and E)
G) A) and E)

Question 11

Manufacturers use seasonal discounts to

Accepted Answer

A)  get rid of expired merchandise.
B)  prevent retailers from purchasing competitors' products.
C)  extend the peak seasonal selling season.
D)  encourage buyers to stock inventory earlier than their normal demand would require.
E)  temporarily spur primary demand during periods of soft sales,such as the beginning of a month,after which prices will return to normal when selective demand picks up.F) C) and E)
G) C) and D)

Question 12

What is free to the seller in FOB origin pricing?

Accepted Answer

A)  customer invoicing
B)  insurance against product liability
C)  any method of transportation
D)  cost of loading the product onto the vehicle used to transport it
E)  all shipping and handlingF) A) and B)
G) C) and D)

Question 13

When Dell sells various laptops,it also pre-installs Microsoft Office and other software that customers order at a discount before a laptop is shipped.This is an example of

Accepted Answer

A)  price lining.
B)  product-line pricing.
C)  bundle pricing.
D)  customary pricing.
E)  prestige pricing.F) A) and D)
G) A) and E)

Question 14

Which of the following is a profit-oriented approach to pricing?

Accepted Answer

A)  skimming pricing
B)  target pricing
C)  loss-leader pricing
D)  target return-on-investment pricing
E)  standard markup pricingF) B) and D)
G) All of the above

Question 15

Yield management pricing is a typical tactic for services trying to manage

Accepted Answer

A)  perceived risk.
B)  capacity.
C)  cognitive dissonance.
D)  inelasticity of demand.
E)  new product strategy development.F) A) and D)
G) None of the above

Question 16

With the introduction of e-books,distributors could still set their own retail prices,but with a restriction.Distributors could set prices below a publisher's retail list price so long as they

Accepted Answer

A)  matched the commission received from a publisher.
B)  exceeded the commission received from a publisher.
C)  did not exceed the commission received from a publisher.
D)  did not increase prices to the readers.
E)  prevented discounts to competitors.F) A) and B)
G) B) and D)

Question 17

The practice of charging different prices to different buyers for goods of like grade and quality is referred to as

Accepted Answer

A)  horizontal price fixing.
B)  resale price maintenance.
C)  price discrimination.
D)  predatory pricing.
E)  bait and switch pricing.F) A) and E)
G) B) and E)

Question 18

A skimming pricing policy is likely to be most effective when

Accepted Answer

A)  consumers tend to be price-sensitive.
B)  the company's product is easily and quickly duplicated.
C)  a lower price will significantly lower fixed costs.
D)  consumers perceive this product to be similar to others on the market.
E)  the high initial price will not attract competitors.F) B) and D)
G) B) and C)

Question 19

A pricing strategy where the buyer is allowed to deduct freight expenses from the list price of the goods so the seller pays the transportation costs is referred to as

Accepted Answer

A)  FOB factory pricing.
B)  FOB absorption pricing.
C)  FOB origin pricing.
D)  basing-point pricing.
E)  FOB with freight-allowed pricing.F) B) and E)
G) B) and C)

Question 20

Which of the following statements regarding a trade-in allowance is most accurate?

Accepted Answer

A)  A trade-in allowance is a noncash exchange of one product for another of equal or lesser value.
B)  A trade-in allowance is an effective way to lower the price a buyer has to pay without formally reducing the list price.
C)  A trade-in allowance is a cash-back payment when a more expensive item is replaced with a less expensive one.
D)  A trade-in allowance is the return of money based on proof of purchase.
E)  A trade-in allowance is a cash payment to a retailer for extra in-store support or special featuring of the brand.F) None of the above
G) B) and C)

Exam 14: Arriving at the Final Price

Correct Answer
verified

Which of the following is a profit-oriented approach to pricing?

Correct Answer
verified

Yield management pricing is a typical tactic for services trying to manage

Correct Answer
verified

What are the four kinds of discounts that are especially important in marketing pricing strategy?

Correct Answer
verified
Discounts are reductions from list price...
View Answer

Which of the following is a cost-oriented approach to pricing?

Correct Answer
verified

With the introduction of e-books,distributors could still set their own retail prices,but with a restriction.Distributors could set prices below a publisher's retail list price so long as they

Correct Answer
verified

When Dell sells various laptops,it also pre-installs Microsoft Office and other software that customers order at a discount before a laptop is shipped.This is an example of

Correct Answer
verified

When a firm divides its selling territory into geographic areas,it is referred to as

Correct Answer
verified

Manufacturers use seasonal discounts to

Correct Answer
verified

Figure 14-5 -Figure 14-5 above shows the results of a spreadsheet simulation to select a price to achieve a target return on investment (ROI) .What is the ROI for Scenario C?

Correct Answer
verified

Bundle pricing is considered to be a ________ pricing practice.

Correct Answer
verified

Which of the four approaches does Carmex use to set prices for its products?

Correct Answer
verified
Carmex uses each of the four perspective...
View Answer

Manufacturers of private brands use which method of competition-oriented pricing?

Correct Answer
verified

The purpose of a cash discount is to

Correct Answer
verified

A skimming pricing policy is likely to be most effective when

Correct Answer
verified

The practice of charging different prices to different buyers for goods of like grade and quality is referred to as

Correct Answer
verified

A pricing strategy where the buyer is allowed to deduct freight expenses from the list price of the goods so the seller pays the transportation costs is referred to as

Correct Answer
verified

Which of the following statements regarding a trade-in allowance is most accurate?

Correct Answer
verified

What is free to the seller in FOB origin pricing?

Correct Answer
verified

Free on board (FOB) origin pricing is

Correct Answer
verified

Exam 14: Arriving at the Final Price

Correct AnswerverifiedShow Answer

Which of the following is a profit-oriented approach to pricing?

Correct AnswerverifiedShow Answer

Yield management pricing is a typical tactic for services trying to manage

Correct AnswerverifiedShow Answer

What are the four kinds of discounts that are especially important in marketing pricing strategy?

Correct AnswerverifiedDiscounts are reductions from list price...View AnswerShow Answer

Which of the following is a cost-oriented approach to pricing?

Correct AnswerverifiedShow Answer

With the introduction of e-books,distributors could still set their own retail prices,but with a restriction.Distributors could set prices below a publisher's retail list price so long as they

Correct AnswerverifiedShow Answer

When Dell sells various laptops,it also pre-installs Microsoft Office and other software that customers order at a discount before a laptop is shipped.This is an example of

Correct AnswerverifiedShow Answer

When a firm divides its selling territory into geographic areas,it is referred to as

Correct AnswerverifiedShow Answer

Manufacturers use seasonal discounts to

Correct AnswerverifiedShow Answer

Figure 14-5 -Figure 14-5 above shows the results of a spreadsheet simulation to select a price to achieve a target return on investment (ROI) .What is the ROI for Scenario C?

Correct AnswerverifiedShow Answer

Bundle pricing is considered to be a ________ pricing practice.

Correct AnswerverifiedShow Answer

Which of the four approaches does Carmex use to set prices for its products?

Correct AnswerverifiedCarmex uses each of the four perspective...View AnswerShow Answer

Manufacturers of private brands use which method of competition-oriented pricing?

Correct AnswerverifiedShow Answer

The purpose of a cash discount is to

Correct AnswerverifiedShow Answer

A skimming pricing policy is likely to be most effective when

Correct AnswerverifiedShow Answer

The practice of charging different prices to different buyers for goods of like grade and quality is referred to as

Correct AnswerverifiedShow Answer

A pricing strategy where the buyer is allowed to deduct freight expenses from the list price of the goods so the seller pays the transportation costs is referred to as

Correct AnswerverifiedShow Answer

Which of the following statements regarding a trade-in allowance is most accurate?

Correct AnswerverifiedShow Answer

What is free to the seller in FOB origin pricing?

Correct AnswerverifiedShow Answer

Free on board (FOB) origin pricing is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Discounts are reductions from list price...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Carmex uses each of the four perspective...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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