Question 1

3 / 10,n / 30 means a 3 percent discount if paid in full within 10 days,or the net amount is due in 30 days.

Accepted Answer

A) True 
 B)False

Question 2

Dan and Ken were discussing the use of coupons as a sales promotion for their paper products store.They knew that coupons would increase immediate sales,but they were concerned that:

Accepted Answer

A)  the additional cost of handling the coupons might be a hidden cost.
B)  customers might stock up on inventory and hurt future sales.
C)  customers might hold off on future purchases hoping for additional coupons later on.
D)  they might not generate sales on other merchandise to cover lost profits.
E)  All of the above

Question 3

Retailers often require manufacturers to pay _________ in order to obtain shelf space for new products.

Accepted Answer

A)  slotting allowances
B)  shelf rental fees
C)  zone pricing
D)  quantity discounts
E)  cash discounts

Question 4

______________ price fixing occurs when competitors collude to control prices,and ___________________ price fixing occurs within a marketing channel to control prices passed on to consumers.

Accepted Answer

A)  Industry; supply chain
B)  General; specific
C)  Wide-spread; integrated
D)  Strategic; tactical
E)  Horizontal; vertical

Question 5

Marketers advertising an artificially high "regular price" are unethically attempting to influence consumers'_____________ perceptions.

Accepted Answer

A)  fixed price
B)  reference price
C)  seasonal price
D)  leader price
E)  cost-based price

Question 6

Research shows that odd prices signal to the consumers that the price:

Accepted Answer

A)  is guaranteed.
B)  is likely to be adjusted daily.
C)  is low.
D)  is part of a noncumulative discount strategy.
E)  is part of a price skimming strategy.

Question 7

Marlys designs and manufactures specialty furniture.She has a number of unique products but can only produce in limited quantities.Marlys will probably NOT use a market penetration strategy because:

Accepted Answer

A)  there are few barriers to competitive entry in the market.
B)  she could not meet a rapid rise in demand.
C)  a low price might signal low quality.
D)  she would have to determine zone pricing discounts.
E)  the experience curve effect would drop unit costs too rapidly.

Question 8

_______________ is the practice of colluding with other firms to control prices.

Accepted Answer

A)  Competitive favoritism
B)  Industry tightening
C)  Monopolistic competition
D)  Price fixing
E)  Regressive pricing

Question 9

When a new product is not being sold at the rate originally forecasted,the retailer may reduce the price in order to reduce the inventory of the product.This reduction is known as a:

Accepted Answer

A)  markdown.
B)  rebate.
C)  quantity discount.
D)  coupon.
E)  cash discount.

Question 10

Almost every time a new-to-the-market electronic device (iPods,flat-screen TVs,digital cameras,PlayStation,etc.)has been introduced,the marketer has used a price skimming strategy.Why?

Accepted Answer

There are five reasons to employ a price...

Question 11

The methods used to develop pricing strategies are cost-based pricing,competitor-based pricing and value-based pricing.

Accepted Answer

A) True 
 B)False

Question 12

Proving that a company has engaged in the deceptive bait and switch practice is easy.

Accepted Answer

A) True 
 B)False

Question 13

Yurgen is opening a financial consulting service for high-income retirees in his area.This target market is used to paying for quality and associates high quality with high prices.Yurgen should probably NOT use a market penetration pricing strategy because:

Accepted Answer

A)  he might be missing out on customers who would pay more for his products.
B)  there are moderate barriers to competitive entry in the market.
C)  a low price might signal low quality.
D)  he would have to determine zone pricing discounts.
E)  the experience curve effect would drop unit costs too rapidly.

Question 14

When Toyota introduced its Scion line of cars,the lowest priced model was listed for $15,000 while the highest priced model was listed for $21,000,with two or three other list prices in between.Toyota used a _____________ pricing approach.

Accepted Answer

A)  market penetration
B)  zone
C)  price lining
D)  loss leader
E)  noncumulative quantity discount

Question 15

Some consumers make it a point to go shopping the day after Christmas in order to:

Accepted Answer

A)  collect coupons as holiday gifts.
B)  enjoy odd pricing benefits.
C)  take advantage of everyday low pricing strategies.
D)  avoid bait and switch strategies.
E)  take advantage of seasonal discounts.

Question 16

In determining the price for his company's new small business accounting software,Raymond is assessing how much better the software is as compared to alternative products available in the market.Raymond is using _______________ pricing.

Accepted Answer

A)  improvement value
B)  odd-even
C)  everyday low pricing
D)  reference-based
E)  cost-based

Question 17

Mary decided to purchase an electronic toothbrush priced at $100 because of a special offer from the manufacturer.By sending proof of purchase and the receipt to the manufacturer,she could receive a $40 check in return,making the final price $60.This pricing tactic is known as a:

Accepted Answer

A)  rebate.
B)  markdown.
C)  coupon.
D)  cash discount.
E)  price line.

Question 18

B2B quantity discounts are legal if:

Accepted Answer

A)  the discounts are available to all customers.
B)  they do not exceed 25% of the regular price.
C)  they are not short term.
D)  new customers can "buy up" to reach the minimum quantity.
E)  cumulative discounts do not run for more than a calendar year.

Question 19

In determining the price for his company's new pocket digital camera,Matt is assessing what consumers consider the regular or original price for similar cameras available in the market.Matt is assessing the influence of _______ on pricing strategy.

Accepted Answer

A)  improvement value
B)  odd-even prices
C)  everyday low pricing
D)  reference prices
E)  cost of ownership

Question 20

The saying,"leaving money on the table," is associated with:

Accepted Answer

A)  the use of odd pricing to force consumers to use their coins in making purchases.
B)  loss leader pricing.
C)  a predatory pricing strategy that results in excessive seasonal discounts.
D)  using a market penetration strategy when there is an opportunity for price skimming.
E)  vertical price fixing in markets where horizontal price fixing would be more appropriate.

Exam 14: Strategic Pricing Methods

B2B quantity discounts are legal if:

Correct AnswerverifiedShow Answer

Mary decided to purchase an electronic toothbrush priced at $100 because of a special offer from the manufacturer.By sending proof of purchase and the receipt to the manufacturer,she could receive a $40 check in return,making the final price $60.This pricing tactic is known as a:

Correct AnswerverifiedShow Answer

When a new product is not being sold at the rate originally forecasted,the retailer may reduce the price in order to reduce the inventory of the product.This reduction is known as a:

Correct AnswerverifiedShow Answer

When Toyota introduced its Scion line of cars,the lowest priced model was listed for $15,000 while the highest priced model was listed for $21,000,with two or three other list prices in between.Toyota used a _____________ pricing approach.

Correct AnswerverifiedShow Answer

In determining the price for his company's new pocket digital camera,Matt is assessing what consumers consider the regular or original price for similar cameras available in the market.Matt is assessing the influence of _______ on pricing strategy.

Correct AnswerverifiedShow Answer

Research shows that odd prices signal to the consumers that the price:

Correct AnswerverifiedShow Answer

The methods used to develop pricing strategies are cost-based pricing,competitor-based pricing and value-based pricing.

Correct AnswerverifiedShow Answer

Marlys designs and manufactures specialty furniture.She has a number of unique products but can only produce in limited quantities.Marlys will probably NOT use a market penetration strategy because:

Correct AnswerverifiedShow Answer

Some consumers make it a point to go shopping the day after Christmas in order to:

Correct AnswerverifiedShow Answer

Proving that a company has engaged in the deceptive bait and switch practice is easy.

Correct AnswerverifiedShow Answer

Marketers advertising an artificially high "regular price" are unethically attempting to influence consumers'_____________ perceptions.

Correct AnswerverifiedShow Answer

_______________ is the practice of colluding with other firms to control prices.

Correct AnswerverifiedShow Answer

The saying,"leaving money on the table," is associated with:

Correct AnswerverifiedShow Answer

In determining the price for his company's new small business accounting software,Raymond is assessing how much better the software is as compared to alternative products available in the market.Raymond is using _______________ pricing.

Correct AnswerverifiedShow Answer

Dan and Ken were discussing the use of coupons as a sales promotion for their paper products store.They knew that coupons would increase immediate sales,but they were concerned that:

Correct AnswerverifiedShow Answer

Yurgen is opening a financial consulting service for high-income retirees in his area.This target market is used to paying for quality and associates high quality with high prices.Yurgen should probably NOT use a market penetration pricing strategy because:

Correct AnswerverifiedShow Answer

______________ price fixing occurs when competitors collude to control prices,and ___________________ price fixing occurs within a marketing channel to control prices passed on to consumers.

Correct AnswerverifiedShow Answer

Retailers often require manufacturers to pay _________ in order to obtain shelf space for new products.

Correct AnswerverifiedShow Answer

Almost every time a new-to-the-market electronic device (iPods,flat-screen TVs,digital cameras,PlayStation,etc.)has been introduced,the marketer has used a price skimming strategy.Why?

Correct AnswerverifiedThere are five reasons to employ a price...View AnswerShow Answer

3 / 10,n / 30 means a 3 percent discount if paid in full within 10 days,or the net amount is due in 30 days.

Correct AnswerverifiedShow Answer

Correct Answer
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price fixing occurs when competitors collude to control prices,and _____ price fixing occurs within a marketing channel to control prices passed on to consumers.

Correct Answer
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Correct Answer
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Correct Answer
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There are five reasons to employ a price...
View Answer

Correct Answer
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