Question 1

Prestige pricing refers to

Accepted Answer

A)   charging different prices to different buyers for goods of like grade and quality.
B)   setting a low initial price on a new product to appeal immediately to the mass market odd-even pricing.
C)   setting a market price for a product or product class based on a subjective feel for the competitors' price or market price.
D)   setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.
E)   setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors.F) B) and E)
G) B) and D)

Question 2

Uniform delivered pricing refers to

Accepted Answer

A)   the price the seller quotes that includes all transportation costs.
B)   the price the seller quotes excluding all transportation costs.
C)   the price the seller quotes including a fixed allowance whereby the buyer pays any additional costs.
D)   the price the seller quotes includes a fixed percentage of transportation costs for which they will be responsible.
E)   the 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) B) and E) A

Question 3

one-price policy refers to

Accepted Answer

A)   setting different prices for products and services depending on individual buyers and purchase situations.
B)   setting the price of a line of products at a number of different specific pricing points.
C)   setting prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item.
D)   adding a fixed percentage to the cost of all items in a specific product class.
E)   setting one price for all buyers of a product or service.F) B) and D)
G) A) and E)

Question 4

manufacturer of a digital video recorder (DVR) is thinking of using a skimming pricing strategy for its new product.Which of the following conditions would argue AGAINST using a skimming pricing strategy for the DVR?

Accepted Answer

A)   large potential market, even at a high price
B)   technological problems still exist for competitors
C)   increasing volume reduces production costs substantially
D)   consumers perceive a price-quality relationship
E)   consumers are innovatorsF) C) and E)
G) None of the above C

Question 5

four of the eight demand-oriented approaches to selecting an approximate price level and define what they are.

Accepted Answer

Demand-oriented approaches include:
(1)...

Question 6

manager of a small gasoline station observes that while gasoline sales have been steady,the service side of the business has fallen off,and mechanics are often idle.He decides to offer a promotion-a $20 off coupon for an oil change that is to be mailed to 800 households within a two-mile radius from the gas station.The cost of printing and mailing is $1,000.The normal cost of an oil change is $40.Materials and labor per oil change costs $15.If 200 customers use the coupon,what will be the total profit of the promotion based on the profit equation?

Accepted Answer

A)   ($4,000) 
B)   ($1,000) 
C)   $0
D)   $1,000
E)   $4,000F) B) and C)
G) A) and B)

Question 7

key to setting a final price for a product is finding an approximate price level to use as a reasonable starting point.Four common approaches to selecting an approximate price level are: (1) demand-oriented; (2) cost-oriented; (3) profit-oriented; and (4) __________ approaches.

Accepted Answer

A)   revenue-oriented
B)   distribution-oriented
C)   stakeholder-oriented
D)   competition-oriented
E)   cause-orientedF) A) and B)
G) A) and E)

Question 8

Setting a price to achieve an annual target return-on-investment (ROI) is referred to as

Accepted Answer

A)   target return-on-investment pricing.
B)   target return-on-profit pricing.
C)   target return-on-sales pricing.
D)   target profit pricing.
E)   customary pricing.F) A) and D)
G) C) and D)

Question 9

Suppose a manufacturer quotes price in the following form: List price-$100 less 30/10/5.When calculating this trade discount,the first number "30" in the percentage sequence always refers to the

Accepted Answer

A)   discount to the ultimate consumer.
B)   manufacturer's cost.
C)   retail end of the channel.
D)   channel intermediary closest to the manufacturer.
E)   original unit cost.F) A) and C)
G) C) and D)

Question 10

unique feature of the Robinson-Patman Act is that it allows for price differentials to different customers under several conditions.Which of the following practices would be permitted?

Accepted Answer

A)   Using price differentials when price differences are given on the basis of other family businesses.
B)   Using price differentials when charging different prices to different buyers for goods of like grade or quality.
C)   Using price differentials when charging different prices on the basis of religious affiliation.
D)   Using price differentials when charging the original price for refurbished goods that have been damaged or used and returned but repaired according to company specifications.
E)   When price differences result from changing market conditions, avoiding obsolescence of seasonal merchandise, including perishables, or closing out sales.F) None of the above
G) All of the above E

Question 11

a firm offers a very low price on a product to attract customers to a store,and once in the store,the customer is persuaded to purchase a higher-priced item,the practice is referred to as

Accepted Answer

A)   predatory pricing.
B)   deceptive pricing.
C)   price discrimination.
D)   caveat emptor.
E)   bait and switch.F) C) and D)
G) All of the above

Question 12

are the conditions favoring the use of penetration pricing?

Accepted Answer

The conditions favoring penetration pric...

Question 13

four types of discounts are

Accepted Answer

A)   quantity, trade-in, promotional, and cash.
B)   quantity, seasonal, trade (functional) , and cash.
C)   quantity, seasonal, promotional, and FOB.
D)   cash, trade-in, seasonal, and promotional.
E)   trade-in, promotional, geographic, and functional.F) A) and B)
G) B) and D)

Question 14

Large department store chains,such as Sears,generally use _________ pricing.

Accepted Answer

A)   above-market
B)   at-market
C)   below-market
D)   prestige pricing
E)   everyday low pricingF) B) and C)
G) A) and D)

Question 15

way that a person navigates through an online marketer's website is called

Accepted Answer

A)   surf-shopping behavior.
B)   cross-channel shopping.
C)   the clickstream.
D)   1-click shopping.
E)   the shopper pathway.F) A) and B)
G) C) and E)

Question 16

Odd-even pricing is based on

Accepted Answer

A)   retailers' perceptions of price.
B)   customers' perceptions of price.
C)   wholesalers' markups.
D)   manufacturers' perceptions of price.
E)   government regulators' perceptions of price.F) C) and D)
G) A) and E)

Question 17

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

Accepted Answer

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

Question 18

Red Bull price premium = [(37% ÷ 33%)  - 1] = 0.1212 × 100 = 12.1%
Monster price premium = [(17% ÷ 18%)  - 1] = -0.0556 × 100 = (5.6%) 
Rockstar price premium = [(8% ÷ 9%)  - 1] = -0.1111 × 100 = (11.1%) 
Other brands price premium = [(38% ÷ 40%)  - 1] = -0.0500 × 100 = (5.0%) 
-Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks.What is the price premium for Monster in 2010?

Accepted Answer

A)   -12.5%
B)   -7.5%
C)   -5.3%
D)   0%
E)   15.2%F) A) and C)
G) C) and D)

Question 19

Flexible Pricing Chart
-Consider the flexible pricing chart above,which shows the results of a National Bureau of Economic Research study of 750,000 car purchases. The data indicate that some groups of car buyers,on average,paid roughly $105,$423,and $483 more,respectively,for a new car in the $21,000 range than the typical purchaser.Who are the car buyers in "A?"

Accepted Answer

A)   women
B)   the elderly
C)   Hispanics
D)   AfricanAmericans
E)   Asian AnericansF) A) and C)
G) A) and E)

Question 20

are the two general methods for quoting prices related to transportation costs? Explain how each is used.

Accepted Answer

The two general methods for quoting pric...

Exam 14: Arriving at the Final Price

Prestige pricing refers to

Correct Answer
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Uniform delivered pricing refers to

Correct Answer
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A

one-price policy refers to

Correct Answer
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manufacturer of a digital video recorder (DVR) is thinking of using a skimming pricing strategy for its new product.Which of the following conditions would argue AGAINST using a skimming pricing strategy for the DVR?

Correct Answer
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C

four of the eight demand-oriented approaches to selecting an approximate price level and define what they are.

Correct Answer
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Demand-oriented approaches include:
(1)...
View Answer

Correct Answer
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key to setting a final price for a product is finding an approximate price level to use as a reasonable starting point.Four common approaches to selecting an approximate price level are: (1) demand-oriented; (2) cost-oriented; (3) profit-oriented; and (4) __________ approaches.

Correct Answer
verified

Setting a price to achieve an annual target return-on-investment (ROI) is referred to as

Correct Answer
verified

Suppose a manufacturer quotes price in the following form: List price-$100 less 30/10/5.When calculating this trade discount,the first number "30" in the percentage sequence always refers to the

Correct Answer
verified

unique feature of the Robinson-Patman Act is that it allows for price differentials to different customers under several conditions.Which of the following practices would be permitted?

Correct Answer
verified
E

a firm offers a very low price on a product to attract customers to a store,and once in the store,the customer is persuaded to purchase a higher-priced item,the practice is referred to as

Correct Answer
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are the conditions favoring the use of penetration pricing?

Correct Answer
verified
The conditions favoring penetration pric...
View Answer

four types of discounts are

Correct Answer
verified

Large department store chains,such as Sears,generally use _________ pricing.

Correct Answer
verified

way that a person navigates through an online marketer's website is called

Correct Answer
verified

Odd-even pricing is based on

Correct Answer
verified

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

Correct Answer
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are the two general methods for quoting prices related to transportation costs? Explain how each is used.

Correct Answer
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The two general methods for quoting pric...
View Answer

Exam 14: Arriving at the Final Price

Prestige pricing refers to

Correct AnswerverifiedShow Answer

Uniform delivered pricing refers to

Correct AnswerverifiedA

one-price policy refers to

Correct AnswerverifiedShow Answer

manufacturer of a digital video recorder (DVR) is thinking of using a skimming pricing strategy for its new product.Which of the following conditions would argue AGAINST using a skimming pricing strategy for the DVR?

Correct AnswerverifiedC

four of the eight demand-oriented approaches to selecting an approximate price level and define what they are.

Correct AnswerverifiedDemand-oriented approaches include: (1)...View AnswerShow Answer

Correct AnswerverifiedShow Answer

key to setting a final price for a product is finding an approximate price level to use as a reasonable starting point.Four common approaches to selecting an approximate price level are: (1) demand-oriented; (2) cost-oriented; (3) profit-oriented; and (4) __________ approaches.

Correct AnswerverifiedShow Answer

Setting a price to achieve an annual target return-on-investment (ROI) is referred to as

Correct AnswerverifiedShow Answer

Suppose a manufacturer quotes price in the following form: List price-$100 less 30/10/5.When calculating this trade discount,the first number "30" in the percentage sequence always refers to the

Correct AnswerverifiedShow Answer

unique feature of the Robinson-Patman Act is that it allows for price differentials to different customers under several conditions.Which of the following practices would be permitted?

Correct AnswerverifiedE

a firm offers a very low price on a product to attract customers to a store,and once in the store,the customer is persuaded to purchase a higher-priced item,the practice is referred to as

Correct AnswerverifiedShow Answer

are the conditions favoring the use of penetration pricing?

Correct AnswerverifiedThe conditions favoring penetration pric...View AnswerShow Answer

four types of discounts are

Correct AnswerverifiedShow Answer

Large department store chains,such as Sears,generally use _________ pricing.

Correct AnswerverifiedShow Answer

way that a person navigates through an online marketer's website is called

Correct AnswerverifiedShow Answer

Odd-even pricing is based on

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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are the two general methods for quoting prices related to transportation costs? Explain how each is used.

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E

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The conditions favoring penetration pric...
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The two general methods for quoting pric...
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