Question 1

To reward wholesalers and retailers for marketing functions they will perform in the future, a manufacturer often gives _________ or, as often called, __________ discounts.

Accepted Answer

A)  quantity; seasonal
B)  trade; functional
C)  manufacturer's; quantity
D)  cash; seasonal
E)  quantity; cash

Question 2

_________.

Accepted Answer

A)  range-line pricing
B)  manufacturer managed accounts
C)  regional rollbacks
D)  delayed payment penalties
E)  price discrimination

Question 3

The break-even point (BEP)  formula is fixed costs / [(Unit price-(__________) ].

Accepted Answer

A)  total cost
B)  total expenses
C)  marginal revenue
D)  unit variable costs
E)  total number of units produced

Question 4

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

Accepted Answer

A)  Penetration pricing is a profit-oriented approach to pricing.
B)  Penetration pricing is a cost-oriented pricing method.
C)  Penetration pricing encourages competitors to enter a market.
D)  A penetration pricing strategy is more effective in a marketplace with price-sensitive consumers.
E)  Because penetration pricing is a high initial-price strategy, it will not attract competitors.

Question 5

Reductions from the list price that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller is called

Accepted Answer

A)  pretax price
B)  list price
C)  manufacturer's retail price
D)  manufacturer's cost
E)  discounts

Question 6

Rents, executive salaries, and insurance are typical examples of

Accepted Answer

A)  variable costs.
B)  fixed costs.
C)  dividends.
D)  liquidity payments.
E)  total costs.

Question 7

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 freight charges, and is responsible for any damage because the seller retains title to the goods until they are delivered to Neiman Marcus.
B)  Neiman Marcus selects the mode of transportation, pays freight charges, and is responsible for any damage while the shoes are in transit because title passed to the buyer at the point of loading.
C)  Neiman Marcus and the factory split freight costs.
D)  the factory pays freight to the U.S., Neiman Marcus pays freight within the U.S.
E)  the factory passes the title when the goods are loaded, but will pay all shipping costs.

Question 8

Companies use a " __________ " to assess whether its products and brands are above, at, or below the market.

Accepted Answer

A)  customary price
B)  prestige price
C)  price premium
D)  loss-leader price
E)  benchmark

Question 9

_________.

Accepted Answer

A)  unit production and marketing costs fall dramatically as production volumes increase
B)  customers are willing to buy immediately at the high initial price
C)  lowering the price has only a minor effect on increasing sales volume and reducing unit costs
D)  when the high initial prices do not attract competitors
E)  when customers interpret high prices as signifying high quality

Question 10

The three major types of special adjustments to list or quoted price are

Accepted Answer

A)  discounts, allowances, and geographical adjustments.
B)  demand-oriented, cost-oriented, and profit-oriented.
C)  one price, flexible price, and discounts.
D)  discounts, allowances, and competition-oriented.
E)  discounts, incremental costs and revenues, and geographical.

Question 11

The money or other considerations (including other products and services)  exchanged for the ownership or use of a product or service is referred to as _________.

Accepted Answer

A)  fixed fee
B)  value
C)  remuneration
D)  price
E)  exchange rate

Question 12

From a marketing viewpoint, _________ is money or other considerations (including other products and services)  exchanged for the ownership or use of a product or service.

Accepted Answer

A)  value
B)  price
C)  barter
D)  a contract
E)  a tariff

Question 13

Southern gardeners have a preconceived idea on what they will pay for pine bark mulch that they buy at their local gardening supply store to keep the weeds down in their gardens.If the price being charged is not within a narrow range that they feel is appropriate, they will make substitutions--newspaper, grass clippings or some other kind of ground covering.When pricing pine bark mulch, a garden supply retailer should use

Accepted Answer

A)  customary pricing.
B)  above-, at-,or below-market pricing.
C)  loss-leader pricing.
D)  penetration pricing.
E)  bundle pricing.

Question 14

A maximizing current profit objective implies that a company chooses

Accepted Answer

A)  to set targets whose performance can be measured quickly such as by quarter or year.
B)  to give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets.
C)  to set a profit goal that is often determined by its board of directors.
D)  to reduce as many non-essential costs as possible and forego investing in any further market or product research.
E)  base prices on a marginal return on investment.

Question 15

In some cases, penetration pricing may follow skimming pricing.The skimming pricing would help __________ and the penetration pricing would help _________.

Accepted Answer

A)  increase market share; attract price-insensitive customers
B)  attract price sensitive customers; increase market share
C)  recoup initial research and development costs; increase market share
D)  recoup initial research and development costs; maintain market share
E)  increase market share; attract price insensitive customers

Question 16

The pricing strategy Energizer used with its very successful e2 high-performance AA alkaline batteries was

Accepted Answer

A)  penetration pricing.
B)  prestige pricing.
C)  skimming pricing.
D)  price lining.
E)  cost-plus fixed-fee pricing.

Question 17

Which of the following statements about a flexible-price policy is most accurate?

Accepted Answer

A)  A flexible-price policy is especially suited to low cost items where profit margins are usually large.
B)  A flexible-price policy should be avoided with large ticket items such as cars or real estate.
C)  When using a flexible-price policy, the seller may risk violating the Robinson-Patman Act.
D)  Flexible pricing may result in race and gender discrimination.
E)  Sellers have little discretion when setting prices; the flexibility is primarily the function of the manufacturer.

Question 18

The ratio of perceived benefits to __________ is referred to as value.

Accepted Answer

A)  price
B)  prestige value
C)  value-added pricing
D)  value analysis
E)  perceived costs

Question 19

Step 1 of the pricing process is identifying pricing objectives and constraints.Describe the constraints a firm is likely to face.

Accepted Answer

Pricing constraints are factors that lim...

Question 20

Manufacturers of generic products use which method of competition-oriented pricing?

Accepted Answer

A)  demand backward pricing
B)  below-market pricing
C)  loss-leader pricing
D)  prestige pricing
E)  skimming pricing

Exam 12: Pricing Products and Services

Correct Answer
verified

_________.

Correct Answer
verified

A maximizing current profit objective implies that a company chooses

Correct Answer
verified

Step 1 of the pricing process is identifying pricing objectives and constraints.Describe the constraints a firm is likely to face.

Correct Answer
verified
Pricing constraints are factors that lim...
View Answer

The money or other considerations (including other products and services) exchanged for the ownership or use of a product or service is referred to as _________.

Correct Answer
verified

In some cases, penetration pricing may follow skimming pricing.The skimming pricing would help __ and the penetration pricing would help _.

Correct Answer
verified

The ratio of perceived benefits to __________ is referred to as value.

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

From a marketing viewpoint, _________ is money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

Correct Answer
verified

To reward wholesalers and retailers for marketing functions they will perform in the future, a manufacturer often gives _ or, as often called, __ discounts.

Correct Answer
verified

Reductions from the list price that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller is called

Correct Answer
verified

Companies use a " __________ " to assess whether its products and brands are above, at, or below the market.

Correct Answer
verified

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

Correct Answer
verified

Rents, executive salaries, and insurance are typical examples of

Correct Answer
verified

_________.

Correct Answer
verified

Manufacturers of generic products use which method of competition-oriented pricing?

Correct Answer
verified

The break-even point (BEP) formula is fixed costs / [(Unit price-(__________) ].

Correct Answer
verified

The pricing strategy Energizer used with its very successful e² high-performance AA alkaline batteries was

Correct Answer
verified

Which of the following statements about a flexible-price policy is most accurate?

Correct Answer
verified

The three major types of special adjustments to list or quoted price are

Correct Answer
verified

Exam 12: Pricing Products and Services

Correct AnswerverifiedShow Answer

_________.

Correct AnswerverifiedShow Answer

A maximizing current profit objective implies that a company chooses

Correct AnswerverifiedShow Answer

Step 1 of the pricing process is identifying pricing objectives and constraints.Describe the constraints a firm is likely to face.

Correct AnswerverifiedPricing constraints are factors that lim...View AnswerShow Answer

The money or other considerations (including other products and services) exchanged for the ownership or use of a product or service is referred to as _________.

Correct AnswerverifiedShow Answer

In some cases, penetration pricing may follow skimming pricing.The skimming pricing would help __________ and the penetration pricing would help _________.

Correct AnswerverifiedShow Answer

The ratio of perceived benefits to __________ is referred to as value.

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

From a marketing viewpoint, _________ is money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

Correct AnswerverifiedShow Answer

To reward wholesalers and retailers for marketing functions they will perform in the future, a manufacturer often gives _________ or, as often called, __________ discounts.

Correct AnswerverifiedShow Answer

Reductions from the list price that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller is called

Correct AnswerverifiedShow Answer

Companies use a " __________ " to assess whether its products and brands are above, at, or below the market.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Rents, executive salaries, and insurance are typical examples of

Correct AnswerverifiedShow Answer

_________.

Correct AnswerverifiedShow Answer

Manufacturers of generic products use which method of competition-oriented pricing?

Correct AnswerverifiedShow Answer

The break-even point (BEP) formula is fixed costs / [(Unit price-(__________) ].

Correct AnswerverifiedShow Answer

The pricing strategy Energizer used with its very successful e2 high-performance AA alkaline batteries was

Correct AnswerverifiedShow Answer

Which of the following statements about a flexible-price policy is most accurate?

Correct AnswerverifiedShow Answer

The three major types of special adjustments to list or quoted price are

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Pricing constraints are factors that lim...
View Answer

Correct Answer
verified

In some cases, penetration pricing may follow skimming pricing.The skimming pricing would help __ and the penetration pricing would help _.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

To reward wholesalers and retailers for marketing functions they will perform in the future, a manufacturer often gives _ or, as often called, __ discounts.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The pricing strategy Energizer used with its very successful e² high-performance AA alkaline batteries was

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified