Question 1

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) B) and E)
G) D) and E)

Question 2

Tara is enrolled for spring semester at college. The tuition is $6,000, but she has a scholarship for $1,000 as well as a work-study grant of $1,500. The health fees and student activity fees are $150 for the semester. What is the final price that Tara will pay for the spring semester?

Accepted Answer

A)   $2,500
B)   $2,650
C)   $3,150
D)   $3,650
E)   $6,150F) B) and C)
G) A) and B)

Question 3

Architectural firms that specialize in designing and constructing one-of-a-kind custom buildings such as the Rock and Roll Hall of Fame often use which pricing strategy?

Accepted Answer

A)   cost-plus pricing
B)   experience curve pricing
C)   standard markup pricing
D)   yield management pricing
E)   price liningF) A) and B)
G) A) and D)

Question 4

A dynamic price policy refers to

Accepted Answer

A)   setting the price of a line of products at a number of different specific pricing points.
B)   setting the 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.
C)   deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well.
D)   setting different prices for products and services depending on individual buyers and purchase situations in light of demand, cost, and competitive factors.
E)   adding a fixed percentage to the cost of all items in a specific product class.F) D) and E)
G) C) and E)

Question 5

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

Accepted Answer

The six broad objectives that ...

Question 6

Two types of adjustments to list or quoted price are

Accepted Answer

A)   profit-oriented and marginal adjustments.
B)   fixed-price and dynamic price adjustments.
C)   discounts and marginal adjustments.
D)   discounts and allowances.
E)   incremental costs and incremental revenues.F) A) and E)
G) C) and D)

Question 7

All of the following are alternate names for the price you pay on goods and services except which?

Accepted Answer

A)   rent
B)   interest
C)   tuition
D)   a premium
E)   profitF) None of the above
G) B) and C)

Question 8

Figure 11-3
-The movement from point B to point C in Figure 11-3 above shows

Accepted Answer

A)   skimming demand.
B)   penetration demand.
C)   that buyers see the product as a bargain and buy more.
D)   that buyers become dubious about the quality and prestige and buy less.
E)   a downturn in the economy.F) C) and D)
G) A) and E)

Question 9

Marketers may engage in value-pricing, which is the practice of simultaneously ________ while maintaining or decreasing price.

Accepted Answer

A)   promoting specific product and service benefits
B)   increasing product and service benefits
C)   decreasing profit
D)   analyzing benefits
E)   decreasing costF) B) and E)
G) C) and E)

Question 10

A construction company was offered a 3 percent reduction in price off all invoices from a lumberyard for paying within 10 days of issue. The lumberyard was offering a

Accepted Answer

A)   trade discount.
B)   cash discount.
C)   promotional allowance.
D)   rebate.
E)   flexible price.F) A) and B)
G) C) and E)

Question 11

Which of these is true about a pair of $200 designer denim jeans?

Accepted Answer

A)   The manufacturer's labor to make them comprises the largest percentage of the final price, with other channel members clamoring over a mere 10 percent.
B)   Everyone gets a fair cut of the final price; the marketer will be cut off from the customer unless all channel members are profitable.
C)   The specialty retailers that sell them account for only 25 percent of the cost so that the jeans can benefit from demand pull.
D)   The contract manufacturer for the jeans receives the least percentage of the final price.
E)   The marketer of the designer denim jeans typically is not profitable for products like these.F) All of the above
G) A) and B)

Question 12

If you were to buy one peach tree and one apple tree from the Stark Bros. fruit trees and landscaping catalog in two separate orders, you would pay a total of $109.99. However, if you order the peach and apple tree together in the same order, you pay only $89.99 each. When selling the two trees together for a reduced price, what pricing strategy does Stark Bros. employ?

Accepted Answer

A)   product-line pricing
B)   prestige pricing
C)   price lining
D)   discount pricing
E)   bundle pricingF) D) and E)
G) A) and B)

Question 13

A technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output is referred to as

Accepted Answer

A)   break-even analysis.
B)   marginal analysis.
C)   sensitivity analysis.
D)   market analysis.
E)   tipping point analysis.F) A) and E)
G) D) and E)

Question 14

The practice of simultaneously increasing product and service benefits while maintaining or decreasing price is referred to as

Accepted Answer

A)   value-pricing.
B)   customer-value pricing.
C)   competitive pricing.
D)   cost pricing.
E)   demand pricing.F) C) and E)
G) C) and D)

Question 15

The prices for all furniture sold at American Furniture Warehouse end in $9.99, such as $589.99, $869.99, etc. American Furniture Warehouse uses

Accepted Answer

A)   odd-even pricing.
B)   dynamic pricing.
C)   price lining.
D)   bundle pricing.
E)   product-line pricing.F) B) and E)
G) B) and D)

Question 16

Marketing executives must translate estimates of customer demand into estimates of

Accepted Answer

A)   personnel.
B)   advertising expenditures that will be required.
C)   ancillary product support.
D)   revenues the firm expects to receive.
E)   supply on a demand curve.F) D) and E)
G) B) and E)

Question 17

Which of the following statements about the price-setting 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 a seasoned marketer will consider several strategies when choosing an approximate price level.
C)   Demand-oriented pricing approaches rely heavily on comparison with competitors' prices.
D)   Skimming pricing is a competition-oriented pricing strategy.
E)   Penetration pricing is the best pricing strategy for companies trying to meet the goals of a profit-oriented pricing approach.F) B) and C)
G) None of the above

Question 18

What are the conditions favoring the use of penetration pricing?

Accepted Answer

The conditions favoring penetration pric...

Question 19

An online movie streaming service charges $14.99 per month for its basic package. However, when a competitor introduced the same service at $13.99, the firm dropped its price to $13.99. The firm most likely made this price reduction in an attempt to

Accepted Answer

A)   decrease revenue but increase profit.
B)   increase profit by increasing revenue.
C)   maintain market share.
D)   decrease market share.
E)   increase efficiency.F) A) and B)
G) B) and E)

Question 20

The practice of replacing promotional allowances with lower manufacturer list prices is referred to as

Accepted Answer

A)   everyday low pricing.
B)   everyday fair pricing.
C)   trade-in allowances.
D)   markdown pricing.
E)   everyday value pricing.F) B) and E)
G) A) and B)

Exam 11: Pricing Products and Services

Correct Answer
verified

A technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output is referred to as

Correct Answer
verified

The prices for all furniture sold at American Furniture Warehouse end in $9.99, such as $589.99, $869.99, etc. American Furniture Warehouse uses

Correct Answer
verified

All of the following are alternate names for the price you pay on goods and services except which?

Correct Answer
verified

A construction company was offered a 3 percent reduction in price off all invoices from a lumberyard for paying within 10 days of issue. The lumberyard was offering a

Correct Answer
verified

An online movie streaming service charges $14.99 per month for its basic package. However, when a competitor introduced the same service at $13.99, the firm dropped its price to $13.99. The firm most likely made this price reduction in an attempt to

Correct Answer
verified

What are the conditions favoring the use of penetration pricing?

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

Which of the following statements about the price-setting process is most accurate?

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

Marketers may engage in value-pricing, which is the practice of simultaneously ________ while maintaining or decreasing price.

Correct Answer
verified

Marketing executives must translate estimates of customer demand into estimates of

Correct Answer
verified

Architectural firms that specialize in designing and constructing one-of-a-kind custom buildings such as the Rock and Roll Hall of Fame often use which pricing strategy?

Correct Answer
verified

Which of these is true about a pair of $200 designer denim jeans?

Correct Answer
verified

Two types of adjustments to list or quoted price are

Correct Answer
verified

Figure 11-3 -The movement from point B to point C in Figure 11-3 above shows

Correct Answer
verified

The practice of replacing promotional allowances with lower manufacturer list prices is referred to as

Correct Answer
verified

The practice of simultaneously increasing product and service benefits while maintaining or decreasing price is referred to as

Correct Answer
verified

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

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

Tara is enrolled for spring semester at college. The tuition is $6,000, but she has a scholarship for $1,000 as well as a work-study grant of $1,500. The health fees and student activity fees are $150 for the semester. What is the final price that Tara will pay for the spring semester?

Correct Answer
verified

A dynamic price policy refers to

Correct Answer
verified

Exam 11: Pricing Products and Services

Correct AnswerverifiedShow Answer

A technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output is referred to as

Correct AnswerverifiedShow Answer

The prices for all furniture sold at American Furniture Warehouse end in $9.99, such as $589.99, $869.99, etc. American Furniture Warehouse uses

Correct AnswerverifiedShow Answer

All of the following are alternate names for the price you pay on goods and services except which?

Correct AnswerverifiedShow Answer

A construction company was offered a 3 percent reduction in price off all invoices from a lumberyard for paying within 10 days of issue. The lumberyard was offering a

Correct AnswerverifiedShow Answer

An online movie streaming service charges $14.99 per month for its basic package. However, when a competitor introduced the same service at $13.99, the firm dropped its price to $13.99. The firm most likely made this price reduction in an attempt to

Correct AnswerverifiedShow Answer

What are the conditions favoring the use of penetration pricing?

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

Which of the following statements about the price-setting process is most accurate?

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

Marketers may engage in value-pricing, which is the practice of simultaneously ________ while maintaining or decreasing price.

Correct AnswerverifiedShow Answer

Marketing executives must translate estimates of customer demand into estimates of

Correct AnswerverifiedShow Answer

Architectural firms that specialize in designing and constructing one-of-a-kind custom buildings such as the Rock and Roll Hall of Fame often use which pricing strategy?

Correct AnswerverifiedShow Answer

Which of these is true about a pair of $200 designer denim jeans?

Correct AnswerverifiedShow Answer

Two types of adjustments to list or quoted price are

Correct AnswerverifiedShow Answer

Figure 11-3 -The movement from point B to point C in Figure 11-3 above shows

Correct AnswerverifiedShow Answer

The practice of replacing promotional allowances with lower manufacturer list prices is referred to as

Correct AnswerverifiedShow Answer

The practice of simultaneously increasing product and service benefits while maintaining or decreasing price is referred to as

Correct AnswerverifiedShow Answer

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

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

Tara is enrolled for spring semester at college. The tuition is $6,000, but she has a scholarship for $1,000 as well as a work-study grant of $1,500. The health fees and student activity fees are $150 for the semester. What is the final price that Tara will pay for the spring semester?

Correct AnswerverifiedShow Answer

A dynamic price policy refers to

Correct AnswerverifiedShow Answer

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

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The six broad objectives that ...
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Correct Answer
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Correct Answer
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