Question 1

Dynamic pricing has better equipped brick-and-mortar stores to compete with their online alternatives.

Accepted Answer

A) True 
 B)False

Question 2

A price tactic that requires the buyer to absorb the freight costs from the shipping point is called ______________.

Accepted Answer

A)   value-based pricing
B)   FOB origin pricing
C)   uniform delivered pricing
D)   zone pricingE) A) and D)
F) A) and B)

Question 3

When a purchase decision involves uncertainty,which of the following statements best describes the price-quality relationship?

Accepted Answer

A)   Consumers perceive lower-priced goods to be more long-lasting than higher-priced goods.
B)   Consumers believe that higher-priced goods are manufactured with materials or ingredients of better quality.
C)   Consumers lack information about the quality of lower-priced goods due to poor advertising.
D)   Consumer demand for higher priced goods remains unchanged even if product quality declines.E) A) and B)
F) None of the above

Question 4

When a seller establishes a series of prices for a type of merchandise,a purchase agreement is violated.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a limitation of break-even analysis?

Accepted Answer

A)   It does not give an estimate of how much profit can be earned once the break-even point is obtained.
B)   It does not give weight to the cost of labor that is incurred during production.
C)   Sometimes it cannot predict the effect of changes in sales price.
D)   Sometimes it is hard to know whether a cost is fixed or variable.E) C) and D)
F) A) and B)

Question 6

Zen Electronics has taken a penetration pricing approach to launch its new line of mobiles.Therefore,Zen is most likely to ______.

Accepted Answer

A)   initially charge a relatively low price per product
B)   introduce the line at a relatively high price per product
C)   wait until the current competition weakens
D)   join the competition at its peakE) B) and C)
F) C) and D)

Question 7

Explain what is meant by shopping bots,identify several different types of these bots,and discuss how they help consumers make purchase decisions.

Accepted Answer

Answers will vary.The Internet,Extranets...

Question 8

Which of the following is the final stage in the product life cycle?

Accepted Answer

A)   Maturity stage
B)   Decline stage
C)   Growth stage
D)   Introductory stageE) All of the above
F) A) and B)

Question 9

Break-even analysis is the method of determining the cost of buying the product from the producer,plus amounts for profit and for expenses not otherwise accounted for.

Accepted Answer

A) True 
 B)False

Question 10

When a seller establishes a series of prices for a type of merchandise,it creates an odd-even pricing.

Accepted Answer

A) True 
 B)False

Question 11

Which term refers to a pricing policy whereby a firm charges a high introductory price,often coupled with heavy promotion?

Accepted Answer

A)   Price skimming
B)   Penetration pricing
C)   Status quo pricing
D)   Sales maximizationE) None of the above
F) B) and C)

Question 12

Which of the following refers to a pricing objective that maintains existing prices or meets the competition's prices?

Accepted Answer

A)   Sales maximization
B)   Status quo pricing
C)   Satisfactory pricing
D)   Pricing based on perceived satisfactionE) B) and C)
F) A) and D)

Question 13

Define what is meant by consumer penalties and provide reasons why companies would impose them on consumers.

Accepted Answer

Answers will vary.More and more business...

Exam 19: Pricing Concepts

Which of the following is a limitation of break-even analysis?

Correct Answer
verified

Which term refers to a pricing policy whereby a firm charges a high introductory price,often coupled with heavy promotion?

Correct Answer
verified

Dynamic pricing has better equipped brick-and-mortar stores to compete with their online alternatives.

Correct Answer
verified

Which of the following refers to a pricing objective that maintains existing prices or meets the competition's prices?

Correct Answer
verified

Explain what is meant by shopping bots,identify several different types of these bots,and discuss how they help consumers make purchase decisions.

Correct Answer
verified
Answers will vary.The Internet,Extranets...
View Answer

Define what is meant by consumer penalties and provide reasons why companies would impose them on consumers.

Correct Answer
verified
Answers will vary.More and more business...
View Answer

When a purchase decision involves uncertainty,which of the following statements best describes the price-quality relationship?

Correct Answer
verified

Zen Electronics has taken a penetration pricing approach to launch its new line of mobiles.Therefore,Zen is most likely to ______.

Correct Answer
verified

Which of the following is the final stage in the product life cycle?

Correct Answer
verified

When a seller establishes a series of prices for a type of merchandise,a purchase agreement is violated.

Correct Answer
verified

A price tactic that requires the buyer to absorb the freight costs from the shipping point is called ______________.

Correct Answer
verified

Break-even analysis is the method of determining the cost of buying the product from the producer,plus amounts for profit and for expenses not otherwise accounted for.

Correct Answer
verified

When a seller establishes a series of prices for a type of merchandise,it creates an odd-even pricing.

Correct Answer
verified

Exam 19: Pricing Concepts

Which of the following is a limitation of break-even analysis?

Correct AnswerverifiedShow Answer

Which term refers to a pricing policy whereby a firm charges a high introductory price,often coupled with heavy promotion?

Correct AnswerverifiedShow Answer

Dynamic pricing has better equipped brick-and-mortar stores to compete with their online alternatives.

Correct AnswerverifiedShow Answer

Which of the following refers to a pricing objective that maintains existing prices or meets the competition's prices?

Correct AnswerverifiedShow Answer

Explain what is meant by shopping bots,identify several different types of these bots,and discuss how they help consumers make purchase decisions.

Correct AnswerverifiedAnswers will vary.The Internet,Extranets...View AnswerShow Answer

Define what is meant by consumer penalties and provide reasons why companies would impose them on consumers.

Correct AnswerverifiedAnswers will vary.More and more business...View AnswerShow Answer

When a purchase decision involves uncertainty,which of the following statements best describes the price-quality relationship?

Correct AnswerverifiedShow Answer

Zen Electronics has taken a penetration pricing approach to launch its new line of mobiles.Therefore,Zen is most likely to ______.

Correct AnswerverifiedShow Answer

Which of the following is the final stage in the product life cycle?

Correct AnswerverifiedShow Answer

When a seller establishes a series of prices for a type of merchandise,a purchase agreement is violated.

Correct AnswerverifiedShow Answer

A price tactic that requires the buyer to absorb the freight costs from the shipping point is called ______________.

Correct AnswerverifiedShow Answer

Break-even analysis is the method of determining the cost of buying the product from the producer,plus amounts for profit and for expenses not otherwise accounted for.

Correct AnswerverifiedShow Answer

When a seller establishes a series of prices for a type of merchandise,it creates an odd-even pricing.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Answers will vary.The Internet,Extranets...
View Answer

Correct Answer
verified
Answers will vary.More and more business...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified