Question 1

Which of the following statements is true of geographic pricing for freight?

Accepted Answer

A)   Freight absorption pricing is a tactic that requires a buyer to absorb the freight costs from the shipping point.
B)   Uniform delivered pricing divides the United States into segments or zones and charges a flat freight rate to all customers in a given zone.
C)   Postage stamp pricing is adopted when the marketing manager wants total costs to be equal for all purchasers of identical products.
D)   With basing-point pricing,a seller designates a location as a basing point so that all buyers are not charged the freight cost from that point.E) A) and C)
F) None of the above

Question 2

___________ is a price tactic that tries to get consumers into a store through false or misleading price advertising and then uses high-pressure selling to persuade consumers to buy more expensive merchandise.

Accepted Answer

A)   Bait pricing
B)   Price bundling
C)   Odd-even pricing
D)   Leader pricingE) A) and B)
F) A) and C)

Question 3

Basing-point pricing is a price tactic that offers all goods and services at the same price or perhaps two or three prices.

Accepted Answer

A) True 
 B)False

Question 4

Marketing two or more products in a single package for a special price is called _____________.

Accepted Answer

A)   price bundling
B)   bait pricing
C)   odd-even pricing
D)   loss-leader pricingE) A) and B)
F) A) and C)

Question 5

Unlike a firm that launches a new item resembling several others already on the market,a firm that introduces a totally new product with no close substitutes will have no pricing freedom.

Accepted Answer

A) True 
 B)False

Question 6

A rebate is a discount to wholesalers and retailers for performing channel functions.

Accepted Answer

A) True 
 B)False

Question 7

The practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market is called ______________.

Accepted Answer

A)   status quo pricing
B)   predatory pricing
C)   price skimming
D)   penetration pricingE) B) and C)
F) A) and D)

Question 8

Unlike a firm that strives for market share,a firm with the objective of maximizing sales

Accepted Answer

A)   possesses adequate funds and faces an optimistic future.
B)   ignores profits,competition,and the marketing environment as long as sales are rising.
C)   benefits from maximization of cash if it is adopted as a long-run objective.
D)   seeks to maintain existing prices or to meet the competition's prices.E) All of the above
F) None of the above

Question 9

A price skimming strategy is most often used for a new product when

Accepted Answer

A)   competition in the market is abundant.
B)   customers are unwilling to spend a large amount of money on the product.
C)   the supply of the product is greater than its demand.
D)   the product is perceived by the target market as having unique advantages.E) A) and B)
F) B) and C)

Question 10

Briefly explain how distribution strategy acts as a determinant of price.

Accepted Answer

Answers will vary.An effective distribut...

Question 11

As output is increased or decreased,the ______ costs remains unchanged.

Accepted Answer

A)   marginal
B)   dependent
C)   fixed
D)   opportunityE) A) and B)
F) B) and C)

Question 12

Which of the following statements is true of price lines?

Accepted Answer

A)   Buyers cannot be offered a wide variety of merchandise at each established price.
B)   Price lines enable a seller to reach several market segments.
C)   Firms have to carry a larger total inventory than it could without price lines.
D)   Price lines are advantageous when costs rise continually.E) A) and B)
F) B) and D)

Question 13

Adequate distribution for a new product can often be attained by

Accepted Answer

A)   offering a larger-than-usual profit margin to distributors.
B)   having different model or serial numbers for products.
C)   allowing customers to get involved in showrooming.
D)   increasing the prices of the products.E) A) and B)
F) B) and D)

Question 14

Define price and discuss the role of price in the evaluation of product alternatives.

Accepted Answer

Answers will vary.Price means one thing ...

Question 15

_______________ is a price tactic in which the seller pays the actual freight charges and bills every purchaser an identical,flat freight charge.

Accepted Answer

A)   Value-based pricing
B)   FOB origin pricing
C)   Uniform delivered pricing
D)   Zone pricingE) A) and B)
F) A) and C)

Question 16

Profit-oriented pricing objectives include _____.

Accepted Answer

A)   target return on investment
B)   target market share
C)   meeting competitors' prices
D)   status quo pricingE) A) and B)
F) A) and C)

Question 17

Discuss the relationship between the price and quality of a product and how price affects a purchase decision.

Accepted Answer

Answers will vary.When a purchase decisi...

Question 18

Gwenta Corp.,a soft drink manufacturing company,pays a certain quarterly amount to its distributors who display the soft drink's latest ad on their distribution trucks.This quarterly payment is referred to as a noncumulative quantity discount.

Accepted Answer

A) True 
 B)False

Question 19

What pricing policy entails charging a relatively low price for a product when it is first rolled out as a way to reach the mass market?

Accepted Answer

A)   Penetration pricing
B)   Price skimming
C)   Price discrimination
D)   Status quo pricingE) A) and B)
F) A) and D)

Question 20

Which statement best describes the value of shopping bots to consumers?

Accepted Answer

A)   The broad-based bots search for prices for one type of product.
B)   Shopping bots create opportunities for prestige pricing.
C)   They theoretically give pricing power to a consumer.
D)   Niche-oriented bots search a wide range of product categories.E) B) and C)
F) None of the above

Exam 19: Pricing Concepts

___________ is a price tactic that tries to get consumers into a store through false or misleading price advertising and then uses high-pressure selling to persuade consumers to buy more expensive merchandise.

Correct AnswerverifiedShow Answer

The practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market is called ______________.

Correct AnswerverifiedShow Answer

Briefly explain how distribution strategy acts as a determinant of price.

Correct AnswerverifiedAnswers will vary.An effective distribut...View AnswerShow Answer

Which of the following statements is true of geographic pricing for freight?

Correct AnswerverifiedShow Answer

Which of the following statements is true of price lines?

Correct AnswerverifiedShow Answer

Unlike a firm that strives for market share,a firm with the objective of maximizing sales

Correct AnswerverifiedShow Answer

A price skimming strategy is most often used for a new product when

Correct AnswerverifiedShow Answer

Which statement best describes the value of shopping bots to consumers?

Correct AnswerverifiedShow Answer

Gwenta Corp.,a soft drink manufacturing company,pays a certain quarterly amount to its distributors who display the soft drink's latest ad on their distribution trucks.This quarterly payment is referred to as a noncumulative quantity discount.

Correct AnswerverifiedShow Answer

A rebate is a discount to wholesalers and retailers for performing channel functions.

Correct AnswerverifiedShow Answer

What pricing policy entails charging a relatively low price for a product when it is first rolled out as a way to reach the mass market?

Correct AnswerverifiedShow Answer

Define price and discuss the role of price in the evaluation of product alternatives.

Correct AnswerverifiedAnswers will vary.Price means one thing ...View AnswerShow Answer

Discuss the relationship between the price and quality of a product and how price affects a purchase decision.

Correct AnswerverifiedAnswers will vary.When a purchase decisi...View AnswerShow Answer

Adequate distribution for a new product can often be attained by

Correct AnswerverifiedShow Answer

As output is increased or decreased,the ______ costs remains unchanged.

Correct AnswerverifiedShow Answer

Basing-point pricing is a price tactic that offers all goods and services at the same price or perhaps two or three prices.

Correct AnswerverifiedShow Answer

Marketing two or more products in a single package for a special price is called _____________.

Correct AnswerverifiedShow Answer

Unlike a firm that launches a new item resembling several others already on the market,a firm that introduces a totally new product with no close substitutes will have no pricing freedom.

Correct AnswerverifiedShow Answer

_______________ is a price tactic in which the seller pays the actual freight charges and bills every purchaser an identical,flat freight charge.

Correct AnswerverifiedShow Answer

Profit-oriented pricing objectives include _____.

Correct AnswerverifiedShow Answer

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Answers will vary.An effective distribut...
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Answers will vary.Price means one thing ...
View Answer

Correct Answer
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Answers will vary.When a purchase decisi...
View Answer

Correct Answer
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