Question 1

Which of the following process is most accurate?

Accepted Answer

A)  When selecting a strategy for setting an initial price, it doesn't matter which one you use as long as you stick with it.
B)  Sometimes pricing strategies overlap and it is wise to consider several strategies before deciding.
C)  Demand-oriented pricing approaches must rely more heavily on competitors' process than they do on customer tastes.
D)  Skimming prices which is demand-oriented is similar in strategy to loss leader pricing of the competition-oriented strategy.
E)  Penetration pricing is the most prevalent pricing strategy for companies trying to meet the goals of a profit-oriented approach.F) A) and D)
G) B) and C)

Question 2

An analysis of a prospective product shows it is expected to grow by at least 10 percent each year over the next 5 years, and then enter the maturity phase of its product life cycle.This type of analysis would provide useful information in which stage of the price-setting process?

Accepted Answer

A)  identifying pricing objectives and constraints
B)  determining cost, volume, and profit relationships
C)  estimating demand and revenue
D)  selecting an appropriate (approximate)  price lining strategy
E)  making special adjustments to list or quoted priceF) All of the above
G) B) and D)

Question 3

Two or more competitors explicitly or implicitly setting prices is referred to as _________.

Accepted Answer

A)  competitive collusion
B)  vertical price fixing
C)  horizontal price fixing
D)  subversive competition
E)  price alignmentF) A) and B)
G) B) and D)

Question 4

The two general methods for quoting prices related to transportation costs are FOB origin pricing and _________.

Accepted Answer

A)  uniform delivered pricing
B)  unitary pricing
C)  regional index pricing
D)  flexible scale pricing
E)  FOB destination pricingF) A) and D)
G) A) and C)

Question 5

Specifying the role of price in an organization's marketing and strategic plans is referred to as

Accepted Answer

A)  a pricing plan.
B)  profit mission.
C)  pricing constraints.
D)  pricing objectives.
E)  the list or quoted price.F) All of the above
G) B) and D)

Question 6

The formula, Total revenue-Total cost, or (Unit price x Quantity sold) -(Fixed cost + Variable cost)  represents _________.

Accepted Answer

A)  the profit equation
B)  marginal revenue
C)  total revenue
D)  average revenue
E)  break-even pointF) B) and E)
G) A) and B)

Question 7

FIGURE 12-3 
-Retailers such as Bloomingdale (Figure 12-3 above) , set __________ for their products.

Accepted Answer

A)  customary prices
B)  prestige prices
C)  premium prices
D)  penetration prices
E)  skimming pricesF) C) and D)
G) C) and E)

Question 8

When introducing a new or innovative product, setting the highest initial price that customers really desiring the product are willing to pay is referred to as a

Accepted Answer

A)  skimming strategy.
B)  penetration strategy.
C)  price-linking strategy.
D)  experience-curve pricing strategy.
E)  prestige pricing strategy.F) A) and E)
G) All of the above

Question 9

A manufacturer using ________ is setting a high price so that quality-or status-conscious consumers will be attracted to the product and buy it.

Accepted Answer

A)  skimming pricing
B)  penetration pricing
C)  price lining
D)  odd-even pricing
E)  prestige pricingF) All of the above
G) D) and E)

Question 10

Controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price are referred to as

Accepted Answer

A)  horizontal price fixing.
B)  vertical price fixing.
C)  competitive price fixing.
D)  independent price fixing.
E)  explicit price fixing.F) None of the above
G) A) and D)

Question 11

_________.

Accepted Answer

A)  consumers perceive your product to be similar to other products on the market
B)  a lower price will significantly reduce unit costs
C)  when customers interpret high price as signifying high quality
D)  consumers tend to be price sensitive
E)  it will be easier to set measureable sale unit goalsF) None of the above
G) A) and C)

Question 12

A method of pricing where the price the seller quotes includes all transportations costs, and is responsible for any damage that may occur because the seller retains title to the goods until delivered to the buyer is referred to as

Accepted Answer

A)  FOB destination pricing.
B)  FOB origin pricing.
C)  geographical allowance.
D)  uniform delivered pricing.
E)  transport customer allowance.F) A) and E)
G) D) and E)

Question 13

When George and Arthurine Renfro decided to start a family business in 1990 and market chowchow, a southern regional food, they had to determine how they would price the chowchow by examining the demand for the product (would people rather eat home-made or store-bought) , the cost of getting the jars for bottling the chowchow, and how much it would cost to distribute the product to area stores.In other words, the Renfros had to begin the development of their pricing strategy by

Accepted Answer

A)  identifying pricing constraints.
B)  estimating break-even points and revenue points.
C)  setting list price.
D)  selecting an approximate price level.
E)  determining profit relationships.F) B) and C)
G) All of the above

Question 14

________

Accepted Answer

A)  consumers tend to be price sensitive.
B)  it will be easier to set measureable sales unit goals.
C)  a lower price will significantly reduce unit costs.
D)  consumers perceive your product to be similar to other products on the market.
E)  lowering the price has only a minor effect on increasing sales volume and reducing unit costs.F) D) and E)
G) A) and E)

Question 15

FIGURE 12-7 
-Figure 12-7 above is drawn to show that variable costs are smaller than fixed costs when the firm sells

Accepted Answer

A)  400 pictures.
B)  900 pictures.
C)  1000 pictures.
D)  1200 pictures.
E)  There is not enough information to determine this.F) A) and E)
G) All of the above

Question 16

What are the six broad objectives that an organization may pursue which tie in directly to the organization's pricing policies?

Accepted Answer

The six broad objectives that an organiz...

Question 17

While the most commonly used pricing method for business is cost-plus pricing, this method is becoming more and more popular among __________ in the service sector.

Accepted Answer

A)  e-businesses
B)  travel and tourism firms
C)  small private companies
D)  nonprofit organizations
E)  business-to-business marketersF) B) and D)
G) C) and E)

Question 18

_________

Accepted Answer

A)  predatory pricing.
B)  range-line pricing.
C)  manufacturer managed accounts.
D)  regional rollbacks.
E)  delayed payment penalties.F) B) and D)
G) A) and B)

Question 19

Demand for a product is likely to be more price inelastic if

Accepted Answer

A)  it is considered a necessity.
B)  it has many substitutes.
C)  it has few substitutes.
D)  its price is low relative to a product with which it must be used.
E)  none of the above is true.F) C) and E)
G) C) and D)

Question 20

Many cruise lines pay the customer's airfare to the point of cruise departure.What type of price adjustment are the cruise lines using?

Accepted Answer

A)  skimming pricing
B)  promotional pricing
C)  quantity discount pricing
D)  uniform delivered pricing
E)  prestige pricingF) A) and E)
G) None of the above

Exam 12: Pricing Products and Services

FIGURE 12-7 -Figure 12-7 above is drawn to show that variable costs are smaller than fixed costs when the firm sells

Correct Answer
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_________.

Correct Answer
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FIGURE 12-3 -Retailers such as Bloomingdale (Figure 12-3 above) , set __________ for their products.

Correct Answer
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Many cruise lines pay the customer's airfare to the point of cruise departure.What type of price adjustment are the cruise lines using?

Correct Answer
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An analysis of a prospective product shows it is expected to grow by at least 10 percent each year over the next 5 years, and then enter the maturity phase of its product life cycle.This type of analysis would provide useful information in which stage of the price-setting process?

Correct Answer
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A method of pricing where the price the seller quotes includes all transportations costs, and is responsible for any damage that may occur because the seller retains title to the goods until delivered to the buyer is referred to as

Correct Answer
verified

Specifying the role of price in an organization's marketing and strategic plans is referred to as

Correct Answer
verified

The formula, Total revenue-Total cost, or (Unit price x Quantity sold) -(Fixed cost + Variable cost) represents _________.

Correct Answer
verified

When introducing a new or innovative product, setting the highest initial price that customers really desiring the product are willing to pay is referred to as a

Correct Answer
verified

A manufacturer using ________ is setting a high price so that quality-or status-conscious consumers will be attracted to the product and buy it.

Correct Answer
verified

What are the six broad objectives that an organization may pursue which tie in directly to the organization's pricing policies?

Correct Answer
verified
The six broad objectives that an organiz...
View Answer

Demand for a product is likely to be more price inelastic if

Correct Answer
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_________

Correct Answer
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Correct Answer
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The two general methods for quoting prices related to transportation costs are FOB origin pricing and _________.

Correct Answer
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________

Correct Answer
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Which of the following process is most accurate?

Correct Answer
verified

While the most commonly used pricing method for business is cost-plus pricing, this method is becoming more and more popular among __________ in the service sector.

Correct Answer
verified

Controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price are referred to as

Correct Answer
verified

Two or more competitors explicitly or implicitly setting prices is referred to as _________.

Correct Answer
verified

Exam 12: Pricing Products and Services

FIGURE 12-7 -Figure 12-7 above is drawn to show that variable costs are smaller than fixed costs when the firm sells

Correct AnswerverifiedShow Answer

_________.

Correct AnswerverifiedShow Answer

FIGURE 12-3 -Retailers such as Bloomingdale (Figure 12-3 above) , set __________ for their products.

Correct AnswerverifiedShow Answer

Many cruise lines pay the customer's airfare to the point of cruise departure.What type of price adjustment are the cruise lines using?

Correct AnswerverifiedShow Answer

An analysis of a prospective product shows it is expected to grow by at least 10 percent each year over the next 5 years, and then enter the maturity phase of its product life cycle.This type of analysis would provide useful information in which stage of the price-setting process?

Correct AnswerverifiedShow Answer

A method of pricing where the price the seller quotes includes all transportations costs, and is responsible for any damage that may occur because the seller retains title to the goods until delivered to the buyer is referred to as

Correct AnswerverifiedShow Answer

Specifying the role of price in an organization's marketing and strategic plans is referred to as

Correct AnswerverifiedShow Answer

The formula, Total revenue-Total cost, or (Unit price x Quantity sold) -(Fixed cost + Variable cost) represents _________.

Correct AnswerverifiedShow Answer

When introducing a new or innovative product, setting the highest initial price that customers really desiring the product are willing to pay is referred to as a

Correct AnswerverifiedShow Answer

A manufacturer using ________ is setting a high price so that quality-or status-conscious consumers will be attracted to the product and buy it.

Correct AnswerverifiedShow Answer

What are the six broad objectives that an organization may pursue which tie in directly to the organization's pricing policies?

Correct AnswerverifiedThe six broad objectives that an organiz...View AnswerShow Answer

Demand for a product is likely to be more price inelastic if

Correct AnswerverifiedShow Answer

_________

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The two general methods for quoting prices related to transportation costs are FOB origin pricing and _________.

Correct AnswerverifiedShow Answer

________

Correct AnswerverifiedShow Answer

Which of the following process is most accurate?

Correct AnswerverifiedShow Answer

While the most commonly used pricing method for business is cost-plus pricing, this method is becoming more and more popular among __________ in the service sector.

Correct AnswerverifiedShow Answer

Controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price are referred to as

Correct AnswerverifiedShow Answer

Two or more competitors explicitly or implicitly setting prices is referred to as _________.

Correct AnswerverifiedShow Answer

Correct Answer
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The six broad objectives that an organiz...
View Answer

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