Question 1

Setting a price that is dictated by tradition,a standardized channel of distribution,or other competitive factors is referred to as __________.

Accepted Answer

A)   cost-plus pricing
B)   customary pricing
C)   standard markup pricing
D)   experience curve pricing
E)   target profit pricingF) A) and B)
G) All of the above

Question 2

Figure 14-3
-Figure 14-3A above is a graph that shows which pricing strategy?

Accepted Answer

A)   skimming
B)   penetration
C)   cost-plus
D)   price lining
E)   prestigeF) D) and E)
G) C) and D)

Question 3

response to Duracell's introduction of the Duracell Ultra battery,Energizer introduced an Advanced Formula battery.But unlike Duracell,Energizer priced its batteries at a low initial price to attract the mass market.Was Energizer's pricing strategy to take market share from Duracell a success?

Accepted Answer

A)   No, because consumers are price-insensitive when it comes to batteries.
B)   Yes, because of the positive association with the "Energizer Bunny" marketing campaign.
C)   No, because consumers equate quality of batteries with higher prices.
D)   Yes, because consumers typically respond positively to cost-plus pricing.
E)   Yes, because the demand for batteries has unitary elasticity.F) All of the above
G) B) and E)

Question 4

Figure 14-8
-Consider Figure 14-8 above."C" represents which of the following legislative acts?

Accepted Answer

A)   The Robinson-Patman Act
B)   The Clayton Act
C)   The Sherman Act
D)   The Federal Trade Commission Act
E)   The Consumer Goods Pricing ActF) C) and E)
G) C) and D)

Question 5

discounts,reductions from list or quoted prices to buyers for performing some activity are referred to as

Accepted Answer

A)   allowances.
B)   subsidies.
C)   remittances.
D)   noncumulative deductions.
E)   list price deductions.F) A) and B)
G) A) and D)

Question 6

Which of the following type of business is most likely to use cost-plus percentage-of-cost pricing?

Accepted Answer

A)   real estate agency
B)   insurance company
C)   power company
D)   space shuttle contractor
E)   architectF) A) and D)
G) A) and C)

Question 7

Geographical Pricing Map C
-pricing practices are closely scrutinized because of potential unethical or illegal actions.They include: (1) price fixing; (2) price discrimination; (3) deceptive pricing; (4) predatory pricing; and (5) __________.

Accepted Answer

A)   geographical pricing
B)   price discounting
C)   lateral price fixing
D)   delayed payment penalties
E)   price discriminationF) C) and D)
G) A) and D)

Question 8

reduction from the list price that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller is called

Accepted Answer

A)   the pretax price.
B)   the list price.
C)   the manufacturer's suggested retail price (MSRP) .
D)   a discount.
E)   a trade-in allowance.F) B) and E)
G) All of the above

Question 9

Setting a price to achieve a profit that is a specified percentage of the sales volume is referred to as __________.

Accepted Answer

A)   target return-on-investment pricing
B)   target return-on-sales pricing
C)   loss-leader pricing
D)   target pricing
E)   standard markup pricingF) A) and E)
G) C) and E)

Question 10

hardware store advertises a ⅜" Black and Decker Power Drill for $29.95.You enter the store intending to purchase the drill.The salesperson informs you that they are all sold out.She tells you that the "sale" drills were factory seconds and that if you are going to be doing any kind of serious woodworking,you should buy the Model 3309,which sells for $49.99.This scenario has elements of which type of deceptive pricing?

Accepted Answer

A)   comparable value comparisons
B)   former price comparisons
C)   comparisons with suggested prices
D)   bait and switch
E)   conditional bargainsF) B) and C)
G) C) and D)

Question 11

Marion Seafood,Inc.sells 5-pound packages of Alaskan salmon.Assume its unit variable cost per package is $30 and its fixed cost is $250,000.It wants a target profit of $38,000 on a volume of 16,000 packages.What should the firm charge for a five-pound package of salmon?

Accepted Answer

A)   $25.00
B)   $33.94
C)   $40.00
D)   $48.00
E)   $61.25F) A) and E)
G) None of the above

Question 12

Geographical Pricing Map A
-Multiple-zone pricing refers to

Accepted Answer

A)   establishing a distribution center in each major geographical region or zone in which a firm's product is sold.
B)   establishing retail outlets in the same vicinity as all of the firm's manufacturing plants.
C)   a firm's decision to charge the same price regardless of geographic regions or zones where it operates.
D)   a firm's division of its selling territory into geographic areas or zones.
E)   a firm's decision to divide its business between multiple carriers to provide flexibility should transportation prices rise with one and fall with another.F) C) and D)
G) C) and E)

Question 13

skimming pricing policy is likely to be most effective when: (1) enough customers are willing to buy immediately at the high initial price; (2) lowering the price has only a minor effect on increasing sales volume and reducing unit costs; (3) customers interpret high price as signifying high quality; and (4) __________.

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)   consumers tend to be price sensitive
D)   it will be easier to set measurable sales unit goals
E)   when the high initial price does not attract competitorsF) A) and B)
G) A) and E)

Question 14

are three special adjustments to list or quoted price?

Accepted Answer

Three special adjustments to l...

Question 15

Hummer was an attention-getting SUV that sold for $80,000 in a limited number of dealerships.Then,General Motors developed a smaller version for $50,000 that could be sold in many more outlets.To cover costs and reach the market faster,the Hummer H2 shared some parts with other GM cars.To which customer effects did Hummer marketing managers need to pay particular attention?

Accepted Answer

A)   The price of Hummer H2 should make sense to customers and reflect differences in the perceived value of the H2 relative to the original Hummer.
B)   Elements such as gas mileage, color, and interior fabrics will be important for H2 customers.
C)   The most important element of the H2 is its versatility as a family vehicle.
D)   Comfort and fuel efficiency will be more important than price for H2 customers.
E)   GM used a penetration pricing strategy for the original Hummer; the H2 continues this pricing strategy to maximize profit.F) All of the above
G) A) and B)

Question 16

Consumer Goods Pricing Act,the Sherman Act,the Federal Trade Commission Act,and the Robinson-Patman Act all address different aspects of deceptive pricing.Select one example for each act and explain which aspects of the practice would be considered illegal.

Accepted Answer

The Consumer Goods Pricing Act considers...

Question 17

custom kitchen cabinet storeowner wishes to use a target return-on-sales pricing approach to establish a price for a typical section of cabinets.Assume that variable costs total $200 per unit,fixed cost is $44,000,and the storeowner desires a target profit of 20 percent return on sales at an annual volume of 400 cabinets.What price should be charged for a typical cabinet section?

Accepted Answer

A)   $263.50
B)   $311.00
C)   $387.50
D)   $445.50
E)   $775.00F) All of the above
G) None of the above

Question 18

Geographical Pricing Map A
-According to the Geographical Pricing Map A above,if the plant in Denver charges $20 to ship its products to all of the identified cities,it is most likely using which type of pricing?

Accepted Answer

A)   FOB origin pricing
B)   multiple-zone pricing
C)   single-zone pricing
D)   freight absorption pricing
E)   basing-point pricingF) A) and C)
G) B) and C)

Question 19

uniform delivered pricing,the price the seller quotes

Accepted Answer

A)   includes all transportation costs.
B)   excludes all transportation costs.
C)   includes a fixed allowance whereby the buyer pays any costs above that allowance.
D)   includes a fixed percentage of transportation costs for which the seller will be responsible.
E)   will guarantee that a retailer will be charged the same transportation fee for all of their outlets regardless of where they are located.F) A) and E)
G) All of the above

Question 20

Price fixing refers to

Accepted Answer

A)   an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor.
B)   the practice of charging a very low price for a product with the intent of driving competitors out of business.
C)   the practice of charging different prices to different buyers for goods of like grade and quality.
D)   a conspiracy among firms to set prices for a product.
E)   a seller's requirement that the purchaser of one product also buy another product in the line.F) B) and E)
G) A) and E)

Exam 14: Arriving at the Final Price

Price fixing refers to

Correct Answer
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reduction from the list price that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller is called

Correct Answer
verified

Figure 14-3 -Figure 14-3A above is a graph that shows which pricing strategy?

Correct Answer
verified

uniform delivered pricing,the price the seller quotes

Correct Answer
verified

Which of the following type of business is most likely to use cost-plus percentage-of-cost pricing?

Correct Answer
verified

response to Duracell's introduction of the Duracell Ultra battery,Energizer introduced an Advanced Formula battery.But unlike Duracell,Energizer priced its batteries at a low initial price to attract the mass market.Was Energizer's pricing strategy to take market share from Duracell a success?

Correct Answer
verified

are three special adjustments to list or quoted price?

Correct Answer
verified
Three special adjustments to l...
View Answer

Correct Answer
verified

Geographical Pricing Map C -pricing practices are closely scrutinized because of potential unethical or illegal actions.They include: (1) price fixing; (2) price discrimination; (3) deceptive pricing; (4) predatory pricing; and (5) __________.

Correct Answer
verified

Correct Answer
verified

Figure 14-8 -Consider Figure 14-8 above."C" represents which of the following legislative acts?

Correct Answer
verified

Marion Seafood,Inc.sells 5-pound packages of Alaskan salmon.Assume its unit variable cost per package is $30 and its fixed cost is $250,000.It wants a target profit of $38,000 on a volume of 16,000 packages.What should the firm charge for a five-pound package of salmon?

Correct Answer
verified

Geographical Pricing Map A -According to the Geographical Pricing Map A above,if the plant in Denver charges $20 to ship its products to all of the identified cities,it is most likely using which type of pricing?

Correct Answer
verified

Correct Answer
verified

Geographical Pricing Map A -Multiple-zone pricing refers to

Correct Answer
verified

Consumer Goods Pricing Act,the Sherman Act,the Federal Trade Commission Act,and the Robinson-Patman Act all address different aspects of deceptive pricing.Select one example for each act and explain which aspects of the practice would be considered illegal.

Correct Answer
verified
The Consumer Goods Pricing Act considers...
View Answer

Setting a price to achieve a profit that is a specified percentage of the sales volume is referred to as __________.

Correct Answer
verified

Correct Answer
verified

discounts,reductions from list or quoted prices to buyers for performing some activity are referred to as

Correct Answer
verified

Setting a price that is dictated by tradition,a standardized channel of distribution,or other competitive factors is referred to as __________.

Correct Answer
verified

Exam 14: Arriving at the Final Price

Price fixing refers to

Correct AnswerverifiedShow Answer

reduction from the list price that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller is called

Correct AnswerverifiedShow Answer

Figure 14-3 -Figure 14-3A above is a graph that shows which pricing strategy?

Correct AnswerverifiedShow Answer

uniform delivered pricing,the price the seller quotes

Correct AnswerverifiedShow Answer

Which of the following type of business is most likely to use cost-plus percentage-of-cost pricing?

Correct AnswerverifiedShow Answer

response to Duracell's introduction of the Duracell Ultra battery,Energizer introduced an Advanced Formula battery.But unlike Duracell,Energizer priced its batteries at a low initial price to attract the mass market.Was Energizer's pricing strategy to take market share from Duracell a success?

Correct AnswerverifiedShow Answer

are three special adjustments to list or quoted price?

Correct AnswerverifiedThree special adjustments to l...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Geographical Pricing Map C -pricing practices are closely scrutinized because of potential unethical or illegal actions.They include: (1) price fixing; (2) price discrimination; (3) deceptive pricing; (4) predatory pricing; and (5) __________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 14-8 -Consider Figure 14-8 above."C" represents which of the following legislative acts?

Correct AnswerverifiedShow Answer

Marion Seafood,Inc.sells 5-pound packages of Alaskan salmon.Assume its unit variable cost per package is $30 and its fixed cost is $250,000.It wants a target profit of $38,000 on a volume of 16,000 packages.What should the firm charge for a five-pound package of salmon?

Correct AnswerverifiedShow Answer

Geographical Pricing Map A -According to the Geographical Pricing Map A above,if the plant in Denver charges $20 to ship its products to all of the identified cities,it is most likely using which type of pricing?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Geographical Pricing Map A -Multiple-zone pricing refers to

Correct AnswerverifiedShow Answer

Consumer Goods Pricing Act,the Sherman Act,the Federal Trade Commission Act,and the Robinson-Patman Act all address different aspects of deceptive pricing.Select one example for each act and explain which aspects of the practice would be considered illegal.

Correct AnswerverifiedThe Consumer Goods Pricing Act considers...View AnswerShow Answer

Setting a price to achieve a profit that is a specified percentage of the sales volume is referred to as __________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

discounts,reductions from list or quoted prices to buyers for performing some activity are referred to as

Correct AnswerverifiedShow Answer

Setting a price that is dictated by tradition,a standardized channel of distribution,or other competitive factors is referred to as __________.

Correct AnswerverifiedShow Answer

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Three special adjustments to l...
View Answer

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The Consumer Goods Pricing Act considers...
View Answer

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Correct Answer
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