Question 1

Consider the Tostitos products photo above.Frito-Lay recognizes that its tortilla chip products are partial substitutes for one another.Its bean and cheese dips and salsa sauces complement its tortilla chips.Frito-Lay uses this knowledge to set prices for each item in order to ensure that the entire line is profitable.This pricing strategy is known as

Accepted Answer

A)  bundle pricing.
B)  price lining.
C)  customary pricing.
D)  product-line pricing.
E)  loss-leader pricing.F) C) and D)
G) A) and E)

Question 2

What is the difference between and EDLP retailer and a High-Low retailer? Why does Carmex charge them a different price?

Accepted Answer

Everyday Low Price (EDLP)retailers,such ...

Question 3

Mark Johnson,the manager of a discount consumer electronics store,was approached by the manufacturer's representative on behalf of a marketer of a popular and profitable line of DVD storage racks.The manufacturer's representative implied that if Johnson doesn't raise the retail prices for the storage racks to those paid by the marketer's non-discount customers,Johnson's supply of racks may be severely curtailed.The manufacturer's representative is guilty of attempting

Accepted Answer

A)  horizontal price-fixing.
B)  resale price maintenance.
C)  price discrimination.
D)  predatory pricing.
E)  bait and switch pricing.F) A) and B)
G) B) and E)

Question 4

Figure 14-1 above represents the six steps in setting price.Which letter represents the step where a firm would make geographical adjustments?

Accepted Answer

A)  "D"
B)  "B"
C)  "E"
D)  "F"
E)  "C"F) A) and D)
G) A) and C)

Question 5

Everyday low pricing refers to

Accepted Answer

A)  the pricing strategy of "extreme value" stores to maintain high price-quality images for the products they sell.
B)  the pricing strategy of starting a product at standard list price and then lowering the price by a certain percentage until it is sold.
C)  short-term price reductions when consumer demand takes a significant and unexpected dip.
D)  the practice of replacing promotional allowances with lower manufacturer list prices.
E)  a form of predatory pricing used solely for the purpose of undercutting competitors' prices.F) C) and E)
G) B) and C)

Question 6

Setting a market price for a product or product class based on a subjective feel for the competitors' price or market price as the benchmark is referred to as

Accepted Answer

A)  customary pricing.
B)  above-,at-,or below-market pricing.
C)  standard markup pricing.
D)  competitive margin pricing.
E)  experience curve pricing.F) A) and E)
G) None of the above

Question 7

Discounts refer to reductions from the __________ that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller.

Accepted Answer

A)  final price
B)  list price
C)  wholesaler's cost
D)  manufacturer's cost
E)  retailer's costF) All of the above
G) B) and C)

Question 8

To reward wholesalers and retailers for having supplies in stock at the time customers want,manufacturers offer

Accepted Answer

A)  noncumulative discounts.
B)  seasonal discounts.
C)  trade discounts.
D)  cumulative discounts.
E)  functional discounts.F) D) and E)
G) C) and E)

Question 9

Skimming pricing is considered to be a __________ approach to pricing.

Accepted Answer

A)  demand-oriented
B)  cost-oriented
C)  profit-oriented
D)  competition-oriented
E)  service-orientedF) A) and D)
G) A) and E)

Question 10

Setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it is referred to as

Accepted Answer

A)  skimming pricing.
B)  status pricing.
C)  price lining.
D)  value pricing.
E)  prestige pricing.F) A) and D)
G) B) and E)

Question 11

A fixed-price policy refers to

Accepted Answer

A)  setting different prices for products and services in real time in response to supply and demand conditions.
B)  setting the price of an entire line of products at a single specific pricing point.
C)  simultaneously 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) C) and D)
G) C) and E)

Question 12

Which of the following companies would be most likely to use target return-on-investment pricing?

Accepted Answer

A)  a farmer
B)  a florist shop
C)  a book publisher
D)  a veterinarian
E)  an automobile manufacturerF) A) and E)
G) All of the above

Question 13

Which of the following statements about geographical adjustments to price is most accurate?

Accepted Answer

A)  In FOB origin pricing,the seller selects the mode of transportation.
B)  In FOB with freight-allowed pricing,the seller must pay for all transportation costs.
C)  Multiple-zone pricing is sometimes referred to as "spider web" pricing.
D)  Basing point pricing seems to have been used in industries where freight expenses are a significant part of the total cost to the buyer.
E)  Geographical adjustments can be subject government regulation if the firm cannot supply objective data (lists of mountains,rivers,weather conditions,etc. ) explaining why those adjustments need to be made.F) C) and D)
G) B) and E)

Question 14

A skimming pricing policy is likely to be most effective when: (1) __________; (2) the high initial price will not attract competitors; (3) lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost;and (4) customers interpret the high price as signifying high quality.

Accepted Answer

A)  consumers tend to be price sensitive
B)  enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable
C)  it will be easier to set measurable sales unit goals
D)  a lower price will significantly reduce unit costs
E)  consumers perceive your product to be similar to other products in the marketF) B) and C)
G) B) and E)

Question 15

To promote their business,some psychics advertise free tarot-card readings and other insights into their customers' futures on television.Unfortunately,this "free reading" has cost some unsuspecting callers as much as $700 in phone charges.This sort of pricing practice would be primarily monitored by the

Accepted Answer

A)  Consumer Protection Agency.
B)  U.S.Department of Justice.
C)  Federal Trade Commission.
D)  Federal Communications Commission.
E)  Consumer Product Safety Commission.F) A) and D)
G) A) and C)

Question 16

Which of the following statements about geographical pricing is most accurate?

Accepted Answer

A)  Geographical pricing is generally legal and not normally a concern in the U.S.legal system.
B)  Geographical pricing has come under more government scrutiny than any other pricing policy.
C)  FOB freight-allowed pricing practices are illegal.
D)  FOB origin pricing is legal.
E)  Basing-point pricing is the only form of geographical pricing that is not under some type of legal restriction.F) B) and D)
G) A) and E)

Question 17

Deceptive pricing practices are outlawed by legislation and enforced by which federal agency?

Accepted Answer

A)  Consumer Protection Agency
B)  U.S.Department of Justice
C)  Federal Communications Commission
D)  U.S.Department of Commerce
E)  Federal Trade CommissionF) All of the above
G) A) and B)

Question 18

A discount that is based on the size of an individual purchase order rather than a series of repeat orders is referred to as a(n)

Accepted Answer

A)  cumulative quantity discount.
B)  bundle pricing.
C)  economic order discount.
D)  noncumulative quantity discount.
E)  promotional allowance.F) None of the above
G) B) and D)

Question 19

A claim that a price is below a manufacturer's suggested or list price may be deceptive if

Accepted Answer

A)  the items for sale had been purchased from another retailer.
B)  the items for sale were part of a manufacturer's promotional allowance.
C)  the items were part of a bulk order.
D)  few or no sales occur at that price in a retailer's market area.
E)  the items were purchased from the manufacturer at a higher price and the sale was part of a loss-leader promotion.F) A) and D)
G) None of the above

Question 20

A pricing method where all buyers pay the same delivered price for the products,regardless of their distance from the seller,is referred to as __________.

Accepted Answer

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

Exam 14: Arriving at the Final Price

A fixed-price policy refers to

Correct Answer
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Setting a market price for a product or product class based on a subjective feel for the competitors' price or market price as the benchmark is referred to as

Correct Answer
verified

Figure 14-1 above represents the six steps in setting price.Which letter represents the step where a firm would make geographical adjustments?

Correct Answer
verified

A discount that is based on the size of an individual purchase order rather than a series of repeat orders is referred to as a(n)

Correct Answer
verified

Correct Answer
verified

Which of the following statements about geographical adjustments to price is most accurate?

Correct Answer
verified

Deceptive pricing practices are outlawed by legislation and enforced by which federal agency?

Correct Answer
verified

Correct Answer
verified

What is the difference between and EDLP retailer and a High-Low retailer? Why does Carmex charge them a different price?

Correct Answer
verified
Everyday Low Price (EDLP)retailers,such ...
View Answer

Which of the following companies would be most likely to use target return-on-investment pricing?

Correct Answer
verified

Correct Answer
verified

To reward wholesalers and retailers for having supplies in stock at the time customers want,manufacturers offer

Correct Answer
verified

A pricing method where all buyers pay the same delivered price for the products,regardless of their distance from the seller,is referred to as __________.

Correct Answer
verified

Which of the following statements about geographical pricing is most accurate?

Correct Answer
verified

Everyday low pricing refers to

Correct Answer
verified

A claim that a price is below a manufacturer's suggested or list price may be deceptive if

Correct Answer
verified

Skimming pricing is considered to be a __________ approach to pricing.

Correct Answer
verified

Discounts refer to reductions from the __________ that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller.

Correct Answer
verified

Setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it is referred to as

Correct Answer
verified

Correct Answer
verified

Exam 14: Arriving at the Final Price

A fixed-price policy refers to

Correct AnswerverifiedShow Answer

Setting a market price for a product or product class based on a subjective feel for the competitors' price or market price as the benchmark is referred to as

Correct AnswerverifiedShow Answer

Figure 14-1 above represents the six steps in setting price.Which letter represents the step where a firm would make geographical adjustments?

Correct AnswerverifiedShow Answer

A discount that is based on the size of an individual purchase order rather than a series of repeat orders is referred to as a(n)

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements about geographical adjustments to price is most accurate?

Correct AnswerverifiedShow Answer

Deceptive pricing practices are outlawed by legislation and enforced by which federal agency?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What is the difference between and EDLP retailer and a High-Low retailer? Why does Carmex charge them a different price?

Correct AnswerverifiedEveryday Low Price (EDLP)retailers,such ...View AnswerShow Answer

Which of the following companies would be most likely to use target return-on-investment pricing?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

To reward wholesalers and retailers for having supplies in stock at the time customers want,manufacturers offer

Correct AnswerverifiedShow Answer

A pricing method where all buyers pay the same delivered price for the products,regardless of their distance from the seller,is referred to as __________.

Correct AnswerverifiedShow Answer

Which of the following statements about geographical pricing is most accurate?

Correct AnswerverifiedShow Answer

Everyday low pricing refers to

Correct AnswerverifiedShow Answer

A claim that a price is below a manufacturer's suggested or list price may be deceptive if

Correct AnswerverifiedShow Answer

Skimming pricing is considered to be a __________ approach to pricing.

Correct AnswerverifiedShow Answer

Discounts refer to reductions from the __________ that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller.

Correct AnswerverifiedShow Answer

Setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it is referred to as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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verified
Everyday Low Price (EDLP)retailers,such ...
View Answer

Correct Answer
verified

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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