Question 1

A manufacturer offers a suggested list price for a cashmere sweater of $250.The trade discount is 40/20/10.What amount does the manufacturer expect to receive for the sweater?

Accepted Answer

A)  $175.00
B)  $225.00
C)  $108.00
D)  $125.00
E)  $100.00F) B) and E)
G) A) and D)

Question 2

One problem in the interstate trucking industry is the number of trucks that return empty after making a delivery.There is a website where independent interstate truckers can look for loads to carry on their return trips,known as backhauls.Because the trucks would normally return empty,truckers who use this website to generate business they would not have had otherwise receive a reduced shipping rate.This reduced rate for a backhaul is an example of

Accepted Answer

A)  penetration pricing.
B)  target pricing.
C)  cost-plus pricing.
D)  odd-even pricing.
E)  yield management pricing.F) B) and D)
G) All of the above

Question 3

Figure 14-1 above represents the six steps in setting price.Which letter represents the step where a firm would balance incremental costs and revenues?

Accepted Answer

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

Question 4

Quantity discounts refer to

Accepted Answer

A)  price reductions in unit costs for placing a larger order.
B)  price reductions for placing long-term pre-scheduled orders.
C)  price reductions to encourage retailers to stock inventory earlier than their normal demand would require.
D)  BOGOs.
E)  reductions in unit costs for taking merchandise that will soon be replaced by new and improved versions of the original product.F) D) and E)
G) C) and D)

Question 5

The word "Free" in relation to the acronym "FOB" signals the point or location where the seller is

Accepted Answer

A)  free of responsibility for customer invoicing.
B)  free of product liability.
C)  free to choose method of transportation.
D)  free to choose the point of loading.
E)  free to choose the method of payment.F) A) and E)
G) A) and D)

Question 6

Experience curve 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 B)
G) C) and D)

Question 7

Central Ice Machine Company is located in Omaha,Nebraska and sells Frick,Sullair,York,and Fes Fuller ammonia refrigeration parts.The company ships these parts using FOB origin pricing.Which of the following statements about the shipment of a Frick reciprocating compressor is MOST ACCURATE?

Accepted Answer

A)  Central Ice Machine will pay all shipping costs.
B)  Central Ice Machine splits the shipping costs with its customers regardless of where the compressor is shipped.
C)  It will cost Central Ice Machine more to ship to Charlotte,North Carolina than to Topeka,Kansas.
D)  A buyer in Albany,New York,will pay significantly more shipping charges than a buyer in Lincoln,Nebraska.
E)  All buyers will pay the same shipping costs,regardless of the destination.F) None of the above
G) All of the above

Question 8

A price war refers to

Accepted Answer

A)  competition between sellers and resellers to maintain or attain the largest market share of potential customers.
B)  conflicts between manufacturers and distributors regarding acceptable percentages they each charge relative to one another.
C)  when one channel member believes another channel member is engaged in pricing behavior that prevents it from achieving its profitability goals.
D)  the successive price cutting by competitors to increase or maintain their unit sales or market share.
E)  the practice of replacing promotional allowances with lower manufacturer list prices.F) B) and C)
G) None of the above

Question 9

According to Figure 14-1 above,"C" represents which step in the price-setting process?

Accepted Answer

A)  estimate demand and revenue
B)  identify pricing objectives and constraints
C)  scan competitors for prices of similar products or services
D)  determine cost,volume,and profit relationships
E)  establish the price rangeF) None of the above
G) All of the above

Question 10

The pricing approach that: (1) estimates the price that ultimate consumers would be willing to pay for a product; (2) works backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers;and (3) results in the manufacturer deliberately adjusting the composition and features of the product to achieve the price to consumers is referred to as __________.

Accepted Answer

A)  cost-benefit pricing
B)  cost-plus percentage-of-cost pricing
C)  target pricing
D)  cost-plus fixed-fee pricing
E)  product feature pricingF) B) and C)
G) None of the above

Question 11

Which of the four approaches does Carmex use to set prices for its products?

Accepted Answer

Carmex uses each of the four perspective...

Question 12

Reductions in unit costs for a larger order are referred to as

Accepted Answer

A)  promotional allowances.
B)  economic order discounts.
C)  penetration pricing.
D)  quantity discounts.
E)  case allowances.F) D) and E)
G) A) and C)

Question 13

Summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price is referred to as __________.

Accepted Answer

A)  standard markup pricing
B)  experience curve pricing
C)  cost-plus pricing
D)  product-line pricing
E)  target return-on-investment pricingF) None of the above
G) A) and D)

Question 14

Identifying pricing objectives and constraints would occur during __________ of the price-setting process.

Accepted Answer

A)  Step 1
B)  Step 2
C)  Step 3
D)  Step 4
E)  Step 5F) B) and C)
G) C) and D)

Question 15

The retail price of DVD players has decreased from $900 in the mid-1990s to about $50 today.This is due in large part to

Accepted Answer

A)  skimming pricing.
B)  prestige pricing.
C)  odd-even pricing.
D)  customary pricing.
E)  experience curve pricing.F) A) and D)
G) A) and E)

Question 16

Discounts that apply to the accumulation of purchases of a product over a given time period,such as a year,are referred to as

Accepted Answer

A)  promotional allowances.
B)  cumulative quantity discounts.
C)  cash discounts.
D)  functional discounts.
E)  noncumulative quantity discounts.F) None of the above
G) A) and B)

Question 17

A manufacturer estimates that consumers will accept a price of $275 for a snowboard.If the manufacturer expects to offer trade discounts of 35/15/5 to retailers,wholesalers,and jobbers,respectively,what price will the manufacturer receive for the snowboard?

Accepted Answer

A)  $275.00
B)  $178.75
C)  $151.94
D)  $144.34
E)  $100.00F) A) and B)
G) A) and C)

Question 18

The fashion buyer for Neiman Marcus is in Italy to view the new collections and to order for the coming season.In Milan,she negotiates a good price for a quantity of shoes in a range of sizes and styles,FOB factory.This means that

Accepted Answer

A)  the factory selects the mode of transportation,pays the freight charges,and is responsible for any damage because the seller retains title to the goods until they are delivered to Neiman Marcus.
B)  the factory selects the mode of transportation but Neiman Marcus pays freight charges and is responsible for any damage while the shoes are in transit because title passes to the firm at the point of loading.
C)  Neiman Marcus and the factory will split the freight costs.
D)  the factory pays the freight cost to a designated port (airport or seaport) in the U.S.while Neiman Marcus pays the freight from that port to its final destination within the U.S.
E)  the factory passes the title when the goods are loaded but will pay all shipping costs.F) None of the above
G) A) and B)

Question 19

Uniform delivered pricing refers to

Accepted Answer

A)  the price the seller quotes that includes all transportation costs.
B)  the price the seller quotes that excludes all transportation costs.
C)  the price the seller quotes that includes a fixed allowance whereby the buyer pays all additional costs.
D)  the price the seller quotes includes a fixed percentage of transportation costs for which it 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) B) and D)
G) A) and E)

Question 20

Vizio,Inc.is the largest contender in the __________ market.

Accepted Answer

A)  designer eyewear
B)  virtual media
C)  HDTV
D)  3D video game
E)  exotic travelF) A) and C)
G) D) and E)

Exam 14: Arriving at the Final Price

The retail price of DVD players has decreased from $900 in the mid-1990s to about $50 today.This is due in large part to

Correct Answer
verified

Summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price is referred to as __________.

Correct Answer
verified

The word "Free" in relation to the acronym "FOB" signals the point or location where the seller is

Correct Answer
verified

Correct Answer
verified

Identifying pricing objectives and constraints would occur during __________ of the price-setting process.

Correct Answer
verified

Quantity discounts refer to

Correct Answer
verified

Reductions in unit costs for a larger order are referred to as

Correct Answer
verified

Vizio,Inc.is the largest contender in the __________ market.

Correct Answer
verified

Uniform delivered pricing refers to

Correct Answer
verified

Correct Answer
verified

According to Figure 14-1 above,"C" represents which step in the price-setting process?

Correct Answer
verified

The fashion buyer for Neiman Marcus is in Italy to view the new collections and to order for the coming season.In Milan,she negotiates a good price for a quantity of shoes in a range of sizes and styles,FOB factory.This means that

Correct Answer
verified

A manufacturer offers a suggested list price for a cashmere sweater of $250.The trade discount is 40/20/10.What amount does the manufacturer expect to receive for the sweater?

Correct Answer
verified

A price war refers to

Correct Answer
verified

Experience curve pricing is considered to be a __________ approach to pricing.

Correct Answer
verified

A manufacturer estimates that consumers will accept a price of $275 for a snowboard.If the manufacturer expects to offer trade discounts of 35/15/5 to retailers,wholesalers,and jobbers,respectively,what price will the manufacturer receive for the snowboard?

Correct Answer
verified

Discounts that apply to the accumulation of purchases of a product over a given time period,such as a year,are 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 balance incremental costs and revenues?

Correct Answer
verified

Central Ice Machine Company is located in Omaha,Nebraska and sells Frick,Sullair,York,and Fes Fuller ammonia refrigeration parts.The company ships these parts using FOB origin pricing.Which of the following statements about the shipment of a Frick reciprocating compressor is MOST ACCURATE?

Correct Answer
verified

Which of the four approaches does Carmex use to set prices for its products?

Correct Answer
verified
Carmex uses each of the four perspective...
View Answer

Exam 14: Arriving at the Final Price

The retail price of DVD players has decreased from $900 in the mid-1990s to about $50 today.This is due in large part to

Correct AnswerverifiedShow Answer

Summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price is referred to as __________.

Correct AnswerverifiedShow Answer

The word "Free" in relation to the acronym "FOB" signals the point or location where the seller is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Identifying pricing objectives and constraints would occur during __________ of the price-setting process.

Correct AnswerverifiedShow Answer

Quantity discounts refer to

Correct AnswerverifiedShow Answer

Reductions in unit costs for a larger order are referred to as

Correct AnswerverifiedShow Answer

Vizio,Inc.is the largest contender in the __________ market.

Correct AnswerverifiedShow Answer

Uniform delivered pricing refers to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

According to Figure 14-1 above,"C" represents which step in the price-setting process?

Correct AnswerverifiedShow Answer

The fashion buyer for Neiman Marcus is in Italy to view the new collections and to order for the coming season.In Milan,she negotiates a good price for a quantity of shoes in a range of sizes and styles,FOB factory.This means that

Correct AnswerverifiedShow Answer

A manufacturer offers a suggested list price for a cashmere sweater of $250.The trade discount is 40/20/10.What amount does the manufacturer expect to receive for the sweater?

Correct AnswerverifiedShow Answer

A price war refers to

Correct AnswerverifiedShow Answer

Experience curve pricing is considered to be a __________ approach to pricing.

Correct AnswerverifiedShow Answer

A manufacturer estimates that consumers will accept a price of $275 for a snowboard.If the manufacturer expects to offer trade discounts of 35/15/5 to retailers,wholesalers,and jobbers,respectively,what price will the manufacturer receive for the snowboard?

Correct AnswerverifiedShow Answer

Discounts that apply to the accumulation of purchases of a product over a given time period,such as a year,are 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 balance incremental costs and revenues?

Correct AnswerverifiedShow Answer

Central Ice Machine Company is located in Omaha,Nebraska and sells Frick,Sullair,York,and Fes Fuller ammonia refrigeration parts.The company ships these parts using FOB origin pricing.Which of the following statements about the shipment of a Frick reciprocating compressor is MOST ACCURATE?

Correct AnswerverifiedShow Answer

Which of the four approaches does Carmex use to set prices for its products?

Correct AnswerverifiedCarmex uses each of the four perspective...View AnswerShow Answer

Correct Answer
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Correct Answer
verified
Carmex uses each of the four perspective...
View Answer