Question 1

According to the Geographical Pricing Map B above,if products are shipped from Denver,which of the following statements would be most accurate?

Accepted Answer

A)  A firm shipping products from Denver would charge customers in Miami and New York a lower price than customers who live in Dallas or Seattle.
B)  Customers in Minneapolis and Nashville would be charged $60.
C)  Customers in Dallas and Phoenix pay the same price.
D)  Customers in Nashville pay less shipping than customers in Minneapolis.
E)  All customers receiving products from Denver will pay the same shipping fee.F) A) and C)
G) C) and D)

Question 2

Figure 14-3 above shows a demand curve that slopes downward and to the right,then turns back on itself to the left.Which pricing approach does Figure 14-3 depict?

Accepted Answer

A)  prestige pricing
B)  skimming pricing
C)  penetration pricing
D)  price lining
E)  reflexive pricingF) B) and C)
G) B) and D)

Question 3

All of the following are profit-oriented approaches to select an approximate price level EXCEPT:

Accepted Answer

A)  target ROI pricing.
B)  target profit pricing.
C)  target return-on-sales pricing.
D)  target return-on-investment pricing.
E)  cost-plus percentage-of-cost pricing.F) A) and C)
G) None of the above

Question 4

If the cash discount terms for a $500 purchase are 4/10 net 30,the number $500 refers to

Accepted Answer

A)  the original price owed on the merchandise.
B)  the total amount owed if paid within 10 days.
C)  the total discount in dollars if the bill is paid on time in 30 days.
D)  the manufacturer's suggested wholesale price.
E)  the total penalty in dollars if the bill is paid after 10 days.F) C) and D)
G) A) and E)

Question 5

Which of the following statements regarding quantity discounts is most accurate?

Accepted Answer

A)  Noncumulative quantity discounts encourage large individual purchase orders,not a series of orders.
B)  Noncumulative quantity discounts encourage repeat buying by a single customer to a far greater degree than do cumulative quantity discounts.
C)  Quantity discounts are primarily used to undercut competitors' prices.
D)  Noncumulative quantity discounts encourage smaller long-term repeat purchases rather than less frequent larger short-term purchases.
E)  Quantity discounts can basically be used only once with each reseller or the price will increase.F) A) and B)
G) A) and C)

Question 6

Penetration pricing is intended to appeal to which market?

Accepted Answer

A)  highly selective,quality-seeking consumers
B)  price-insensitive markets
C)  specialty product markets
D)  the same markets as those targeted with a skimming pricing strategy
E)  the mass marketF) All of the above
G) C) and D)

Question 7

Figure 14-7 above shows the three major types of special adjustments to list or quoted price."B" represents

Accepted Answer

A)  demand-oriented price adjustments.
B)  geographical adjustments.
C)  allowances.
D)  discounts.
E)  customary pricing adjustments.F) A) and D)
G) A) and C)

Question 8

Instead of everyday low prices (EDLP) ,supermarkets prefer a __________ approach,which is based on frequent specials where prices are temporarily lowered for a brief period of time and then raised again.

Accepted Answer

A)  odd-even pricing
B)  a fixed price policy
C)  hi-lo pricing
D)  bundle-pricing
E)  a dynamic pricing policyF) A) and C)
G) A) and E)

Question 9

Which of the following is a profit-oriented pricing method?

Accepted Answer

A)  target return-on-sales pricing
B)  loss leader pricing
C)  above-,at-,or below-market pricing
D)  price lining
E)  penetration pricingF) B) and E)
G) A) and B)

Question 10

According to Vizio,"The whole goal is to ensure that we have the right product,at the right time and the right price and __________."

Accepted Answer

A)  forever rid the world of plugs and wires
B)  create customer value that is unmatched in the industry
C)  deliver it to the right people
D)  at the right place
E)  drive a seamless end-to-end value chainF) A) and C)
G) D) and E)

Question 11

What is standard markup pricing and when would it be used?

Accepted Answer

Standard markup pricing entails adding a...

Question 12

A pricing method where a supplier is reimbursed for all costs,regardless of what they may be,and who also receives an agreed upon dollar amount of profit that is independent of the final cost of the project,is referred to as

Accepted Answer

A)  target return on investment pricing.
B)  cost-plus percentage-of-cost pricing.
C)  target return on sales pricing.
D)  experience curve pricing.
E)  cost-plus fixed-fee pricing.F) B) and E)
G) All of the above

Question 13

In order to deliver a product that the average consumer can afford,Vizio

Accepted Answer

A)  handles product design and marketing in the United States and relies on contract manufacturers in Taiwan to build the product.
B)  uses mass customization in Taiwan and then ships the HDTVs to the United States.
C)  purchased a small company in China to distribute its products under the Vizio name.
D)  purchased a small company in Japan to distribute its products under the Vizio name.
E)  relies solely on recycled materials to build high quality,no-frills products.F) A) and D)
G) D) and E)

Question 14

When establishing product line pricing,the price differentials between items in the line should make sense to customers and reflect differences in terms of the

Accepted Answer

A)  perceived value of the products offered.
B)  actual costs of the features offered.
C)  perceived risk.
D)  quantity discounts and price allowances offered.
E)  market segments targeted.F) B) and E)
G) A) and B)

Question 15

Setting the price of a product or service by adding a fixed percentage to the total unit cost is referred to as

Accepted Answer

A)  cost-plus fixed-fee pricing.
B)  target pricing.
C)  cost-plus percentage-of-cost pricing.
D)  experience curve pricing.
E)  target return on investment pricing.F) A) and D)
G) C) and D)

Question 16

Another name for a dynamic pricing policy is __________.

Accepted Answer

A)  target pricing
B)  fluid pricing
C)  price lining
D)  market-based pricing
E)  a flexible-price policyF) C) and D)
G) B) and D)

Question 17

After extensive analysis,a mail order company has decided to embark on a policy of multiple-zone pricing.In which step of the price-setting process would the mail order firm have made this decision?

Accepted Answer

A)  make special adjustments to the list or quoted price
B)  select an approximate price level
C)  estimate demand and revenue
D)  identify price constraints and objectives
E)  set list or quoted priceF) A) and B)
G) B) and E)

Question 18

The key to setting a 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) __________;and (4) competition-oriented approaches.

Accepted Answer

A)  stakeholder-oriented
B)  revenue-oriented
C)  profit-oriented
D)  distribution-oriented
E)  cause-orientedF) All of the above
G) A) and C)

Question 19

Toro decided to augment its traditional hardware retail distribution channel by also selling through mass merchandisers such as Walmart and Target and set prices its products substantially below those for its traditional hardware outlets.As a result,many hardware stores abandoned Toro products in favor of other manufacturers.This is an example of a firm failing to consider __________ effects when setting its final list or quoted price.

Accepted Answer

A)  company
B)  social responsibility
C)  regulatory
D)  competitive
E)  customerF) A) and D)
G) C) and D)

Question 20

Which of the following statements regarding odd-even pricing is most accurate?

Accepted Answer

A)  Odd-even pricing is designed to give the consumer a better set of pricing alternatives.
B)  Odd-even pricing can be used in conjunction with a skimming pricing strategy,but should not be used with a penetration pricing strategy.
C)  Odd-even pricing does not work if the product is healthcare-related.
D)  Overuse of odd-ending prices tends to mute its effect on demand.
E)  Odd-ending prices are best used with large ticket items;it loses its effectiveness with moderate- to low-ticket items.F) A) and D)
G) A) and C)

Exam 14: Arriving at the Final Price

Figure 14-3 above shows a demand curve that slopes downward and to the right,then turns back on itself to the left.Which pricing approach does Figure 14-3 depict?

Correct Answer
verified

Another name for a dynamic pricing policy is __________.

Correct Answer
verified

All of the following are profit-oriented approaches to select an approximate price level EXCEPT:

Correct Answer
verified

Instead of everyday low prices (EDLP) ,supermarkets prefer a __________ approach,which is based on frequent specials where prices are temporarily lowered for a brief period of time and then raised again.

Correct Answer
verified

The key to setting a 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) __________;and (4) competition-oriented approaches.

Correct Answer
verified

Penetration pricing is intended to appeal to which market?

Correct Answer
verified

A pricing method where a supplier is reimbursed for all costs,regardless of what they may be,and who also receives an agreed upon dollar amount of profit that is independent of the final cost of the project,is referred to as

Correct Answer
verified

Which of the following statements regarding odd-even pricing is most accurate?

Correct Answer
verified

According to Vizio,"The whole goal is to ensure that we have the right product,at the right time and the right price and __________."

Correct Answer
verified

If the cash discount terms for a $500 purchase are 4/10 net 30,the number $500 refers to

Correct Answer
verified

After extensive analysis,a mail order company has decided to embark on a policy of multiple-zone pricing.In which step of the price-setting process would the mail order firm have made this decision?

Correct Answer
verified

According to the Geographical Pricing Map B above,if products are shipped from Denver,which of the following statements would be most accurate?

Correct Answer
verified

When establishing product line pricing,the price differentials between items in the line should make sense to customers and reflect differences in terms of the

Correct Answer
verified

What is standard markup pricing and when would it be used?

Correct Answer
verified
Standard markup pricing entails adding a...
View Answer

In order to deliver a product that the average consumer can afford,Vizio

Correct Answer
verified

Setting the price of a product or service by adding a fixed percentage to the total unit cost is referred to as

Correct Answer
verified

Which of the following is a profit-oriented pricing method?

Correct Answer
verified

Which of the following statements regarding quantity discounts is most accurate?

Correct Answer
verified

Figure 14-7 above shows the three major types of special adjustments to list or quoted price."B" represents

Correct Answer
verified

Correct Answer
verified

Exam 14: Arriving at the Final Price

Figure 14-3 above shows a demand curve that slopes downward and to the right,then turns back on itself to the left.Which pricing approach does Figure 14-3 depict?

Correct AnswerverifiedShow Answer

Another name for a dynamic pricing policy is __________.

Correct AnswerverifiedShow Answer

All of the following are profit-oriented approaches to select an approximate price level EXCEPT:

Correct AnswerverifiedShow Answer

Instead of everyday low prices (EDLP) ,supermarkets prefer a __________ approach,which is based on frequent specials where prices are temporarily lowered for a brief period of time and then raised again.

Correct AnswerverifiedShow Answer

The key to setting a 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) __________;and (4) competition-oriented approaches.

Correct AnswerverifiedShow Answer

Penetration pricing is intended to appeal to which market?

Correct AnswerverifiedShow Answer

A pricing method where a supplier is reimbursed for all costs,regardless of what they may be,and who also receives an agreed upon dollar amount of profit that is independent of the final cost of the project,is referred to as

Correct AnswerverifiedShow Answer

Which of the following statements regarding odd-even pricing is most accurate?

Correct AnswerverifiedShow Answer

According to Vizio,"The whole goal is to ensure that we have the right product,at the right time and the right price and __________."

Correct AnswerverifiedShow Answer

If the cash discount terms for a $500 purchase are 4/10 net 30,the number $500 refers to

Correct AnswerverifiedShow Answer

After extensive analysis,a mail order company has decided to embark on a policy of multiple-zone pricing.In which step of the price-setting process would the mail order firm have made this decision?

Correct AnswerverifiedShow Answer

According to the Geographical Pricing Map B above,if products are shipped from Denver,which of the following statements would be most accurate?

Correct AnswerverifiedShow Answer

When establishing product line pricing,the price differentials between items in the line should make sense to customers and reflect differences in terms of the

Correct AnswerverifiedShow Answer

What is standard markup pricing and when would it be used?

Correct AnswerverifiedStandard markup pricing entails adding a...View AnswerShow Answer

In order to deliver a product that the average consumer can afford,Vizio

Correct AnswerverifiedShow Answer

Setting the price of a product or service by adding a fixed percentage to the total unit cost is referred to as

Correct AnswerverifiedShow Answer

Which of the following is a profit-oriented pricing method?

Correct AnswerverifiedShow Answer

Which of the following statements regarding quantity discounts is most accurate?

Correct AnswerverifiedShow Answer

Figure 14-7 above shows the three major types of special adjustments to list or quoted price."B" represents

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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Standard markup pricing entails adding a...
View Answer

Correct Answer
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