Question 1

What is loss-leader pricing and why do retailers use it?

Accepted Answer

For a special promotion,many retail stor...

Question 2

A method of pricing where the price the seller quotes includes only the cost of loading the product onto the vehicle and specifies the name of the location where the loading is to occur is referred to as

Accepted Answer

A)  FOB origin pricing.
B)  FOB destination pricing.
C)  geographical allowance.
D)  uniform delivered pricing.
E)  mode of transportation pricing.F) A) and B)
G) A) and C)

Question 3

If the terms of the trade discount are listed 20/10/5,the number "5" represents

Accepted Answer

A)  5 percent of the suggested retail price that is available to the retailer to cover costs and provide a profit.
B)  5 percent of the suggested retail price that is available to the wholesaler to cover costs and provide a profit.
C)  5 percent of the suggested retail price that is available to the jobber to cover costs and provide a profit.
D)  5 percent of the suggested retail price that is available to the ultimate consumer.
E)  5 percent of the suggested retail price that is the profit margin to the manufacturer.F) B) and E)
G) B) and D)

Question 4

Setting one price for all buyers of a product or service is referred to as __________.

Accepted Answer

A)  customary pricing
B)  a fixed-price policy
C)  a dynamic pricing policy
D)  standard markup pricing
E)  uniform pricingF) All of the above
G) A) and E)

Question 5

Target return-on-sales pricing refers to

Accepted Answer

A)  adjusting the price of a product so it is "in line" with that of its largest competitor.
B)  setting the price of a line of products at a number of different price points.
C)  adding a fixed percentage to the cost of all items in a specific product class.
D)  setting prices to achieve a profit that is a specified percentage of the sales volume.
E)  setting a price based on a specific annual dollar target profit volume.F) All of the above
G) None of the above

Question 6

When Hallmark cards introduced a line of 99-cent cards (about half the price of the previously least expensive cards it sold) ,the greeting card company was trying to appeal to a mass market that was price sensitive.Hallmark was using a __________ pricing strategy.

Accepted Answer

A)  prestige
B)  skimming
C)  target ROI
D)  penetration
E)  experience-curveF) C) and D)
G) B) and E)

Question 7

You can buy a General Electric dishwasher for $399 or you can buy a similar Bosch brand dishwasher for $989.Since Bosch uses its pricing strategy to project a high-quality product image,it is most likely using __________ pricing.

Accepted Answer

A)  bundle
B)  standard markup
C)  prestige
D)  penetration
E)  cost plus fixed-feeF) B) and D)
G) A) and C)

Question 8

Standard markup pricing refers to

Accepted Answer

A)  adjusting the price of a product so it is "in line" with that of its largest competitor.
B)  setting the price of a line of products at a number of different price points.
C)  setting prices to achieve a profit that is a specified percentage of the sales volume.
D)  increasing the price slightly to protect against undue profit losses from unforeseen environmental forces.
E)  adding a fixed percentage to the cost of all items in a specific product class.F) A) and E)
G) A) and D)

Question 9

Southern gardeners normally pay $5 for a 2-cubit-foot bag of pine bark mulch that they buy at their local gardening-supply and home-improvement stores to keep the weeds down in their gardens.If the price being charged by a retailer is not within a narrow range that gardeners feel is appropriate,they will use substitutions-newspaper,grass clippings,or some other kind of ground covering.When pricing pine bark mulch,a garden-supply or home-improvement retailer should use

Accepted Answer

A)  customary pricing.
B)  at-market pricing.
C)  loss-leader pricing.
D)  penetration pricing.
E)  bundle pricing.F) None of the above
G) C) and D)

Question 10

Deliberately selling a product below its customary price,not to increase sales,but to attract customers' attention in hopes that they will buy other products as well,is referred to as

Accepted Answer

A)  loss-leader pricing.
B)  bundle pricing.
C)  magnet pricing.
D)  predatory pricing.
E)  below-market pricing.F) C) and D)
G) A) and D)

Question 11

North America's largest HDTV company is

Accepted Answer

A)  Samsung.
B)  Panasonic.
C)  LG.
D)  Sony.
E)  Vizio.F) None of the above
G) A) and E)

Question 12

Yield management pricing is most consistent with services trying to deal with

Accepted Answer

A)  perceived risk.
B)  capacity management.
C)  cognitive dissonance.
D)  inelasticity of demand.
E)  new product strategy development.F) D) and E)
G) B) and E)

Question 13

According to Figure 14-8 above,how much is the retailer trade discount?

Accepted Answer

A)  $3.15
B)  $7.00
C)  $30.00
D)  $63.00
E)  $70.00F) A) and B)
G) B) and E)

Question 14

Target pricing is considered to be a __________ approach to pricing.

Accepted Answer

A)  cost-oriented
B)  profit-oriented
C)  demand-oriented
D)  competition-oriented
E)  service-orientedF) B) and E)
G) A) and B)

Question 15

To reward wholesalers and retailers for the risk they accept in assuming increased inventory carrying costs,manufacturers offer

Accepted Answer

A)  noncumulative discounts.
B)  cumulative discounts.
C)  trade discounts.
D)  seasonal discounts.
E)  functional discounts.F) A) and B)
G) A) and C)

Question 16

Skimming pricing is a strategy that introduces a new or innovative product by

Accepted Answer

A)  following a price elastic strategy.
B)  creating multiple price points.
C)  setting a high initial price.
D)  setting a low initial price.
E)  setting the price at the average of competitors' prices.F) C) and D)
G) A) and B)

Question 17

Which of the following is the fourth step in setting a final price for a product?

Accepted Answer

A)  set list or quoted price
B)  select an approximate price level
C)  scan competitors for prices of similar products or services
D)  determine cost,volume,and profit relationships
E)  identify pricing objectives and constraintsF) C) and E)
G) A) and B)

Question 18

Manufacturers use seasonal discounts to

Accepted Answer

A)  get rid of expired merchandise.
B)  prevent retailers from purchasing competitors' products.
C)  extend the peak seasonal selling season.
D)  encourage buyers to stock inventory earlier than their normal demand would require.
E)  temporarily spur primary demand during periods of soft sales,such as the beginning of a month,after which prices will return to normal when selective demand picks up.F) C) and D)
G) B) and C)

Question 19

The UMD14: Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks.What is the price premium for Monster in 2009?

Accepted Answer

A)  12.1%
B)  0%
C)  -5.0%
D)  -5.6%
E)  -11.1%F) A) and E)
G) C) and D)

Question 20

Figure 14-1 above represents the six steps in setting price.Which letter represents the step where a firm would use a cost-oriented approach to setting price?

Accepted Answer

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

Exam 14: Arriving at the Final Price

Skimming pricing is a strategy that introduces a new or innovative product by

Correct Answer
verified

North America's largest HDTV company is

Correct Answer
verified

A method of pricing where the price the seller quotes includes only the cost of loading the product onto the vehicle and specifies the name of the location where the loading is to occur is referred to as

Correct Answer
verified

If the terms of the trade discount are listed 20/10/5,the number "5" represents

Correct Answer
verified

Correct Answer
verified

Figure 14-1 above represents the six steps in setting price.Which letter represents the step where a firm would use a cost-oriented approach to setting price?

Correct Answer
verified

When Hallmark cards introduced a line of 99-cent cards (about half the price of the previously least expensive cards it sold) ,the greeting card company was trying to appeal to a mass market that was price sensitive.Hallmark was using a __________ pricing strategy.

Correct Answer
verified

To reward wholesalers and retailers for the risk they accept in assuming increased inventory carrying costs,manufacturers offer

Correct Answer
verified

Standard markup pricing refers to

Correct Answer
verified

You can buy a General Electric dishwasher for $399 or you can buy a similar Bosch brand dishwasher for $989.Since Bosch uses its pricing strategy to project a high-quality product image,it is most likely using __________ pricing.

Correct Answer
verified

According to Figure 14-8 above,how much is the retailer trade discount?

Correct Answer
verified

What is loss-leader pricing and why do retailers use it?

Correct Answer
verified
For a special promotion,many retail stor...
View Answer

Deliberately selling a product below its customary price,not to increase sales,but to attract customers' attention in hopes that they will buy other products as well,is referred to as

Correct Answer
verified

Yield management pricing is most consistent with services trying to deal with

Correct Answer
verified

The UMD14: Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks.What is the price premium for Monster in 2009?

Correct Answer
verified

Target return-on-sales pricing refers to

Correct Answer
verified

Target pricing is considered to be a __________ approach to pricing.

Correct Answer
verified

Manufacturers use seasonal discounts to

Correct Answer
verified

Which of the following is the fourth step in setting a final price for a product?

Correct Answer
verified

Setting one price for all buyers of a product or service is referred to as __________.

Correct Answer
verified

Exam 14: Arriving at the Final Price

Skimming pricing is a strategy that introduces a new or innovative product by

Correct AnswerverifiedShow Answer

North America's largest HDTV company is

Correct AnswerverifiedShow Answer

A method of pricing where the price the seller quotes includes only the cost of loading the product onto the vehicle and specifies the name of the location where the loading is to occur is referred to as

Correct AnswerverifiedShow Answer

If the terms of the trade discount are listed 20/10/5,the number "5" represents

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 14-1 above represents the six steps in setting price.Which letter represents the step where a firm would use a cost-oriented approach to setting price?

Correct AnswerverifiedShow Answer

When Hallmark cards introduced a line of 99-cent cards (about half the price of the previously least expensive cards it sold) ,the greeting card company was trying to appeal to a mass market that was price sensitive.Hallmark was using a __________ pricing strategy.

Correct AnswerverifiedShow Answer

To reward wholesalers and retailers for the risk they accept in assuming increased inventory carrying costs,manufacturers offer

Correct AnswerverifiedShow Answer

Standard markup pricing refers to

Correct AnswerverifiedShow Answer

You can buy a General Electric dishwasher for $399 or you can buy a similar Bosch brand dishwasher for $989.Since Bosch uses its pricing strategy to project a high-quality product image,it is most likely using __________ pricing.

Correct AnswerverifiedShow Answer

According to Figure 14-8 above,how much is the retailer trade discount?

Correct AnswerverifiedShow Answer

What is loss-leader pricing and why do retailers use it?

Correct AnswerverifiedFor a special promotion,many retail stor...View AnswerShow Answer

Deliberately selling a product below its customary price,not to increase sales,but to attract customers' attention in hopes that they will buy other products as well,is referred to as

Correct AnswerverifiedShow Answer

Yield management pricing is most consistent with services trying to deal with

Correct AnswerverifiedShow Answer

The UMD14: Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks.What is the price premium for Monster in 2009?

Correct AnswerverifiedShow Answer

Target return-on-sales pricing refers to

Correct AnswerverifiedShow Answer

Target pricing is considered to be a __________ approach to pricing.

Correct AnswerverifiedShow Answer

Manufacturers use seasonal discounts to

Correct AnswerverifiedShow Answer

Which of the following is the fourth step in setting a final price for a product?

Correct AnswerverifiedShow Answer

Setting one price for all buyers of a product or service is referred to as __________.

Correct AnswerverifiedShow Answer

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For a special promotion,many retail stor...
View Answer

Correct Answer
verified

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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