Question 1

manufacturer offers a suggested list price for a cashmere sweater of $250.The trade discount is 40/20/10.What amount does the manufacturer expect to receive for the sweater?

Accepted Answer

A)   $175.00
B)   $225.00
C)   $108.00
D)   $125.00
E)   $100.00F) A) and D)
G) A) and E)

Question 2

buying a car,__________ may result in discriminatory practices.

Accepted Answer

A)   fixed pricing
B)   a one-price policy
C)   a flexible-price policy
D)   target return-on-sales pricing
E)   "no haggle" pricingF) A) and E)
G) D) and E)

Question 3

Which of the following companies would be most likely to use target return-on-investment pricing?

Accepted Answer

A)   a farmer
B)   a florist shop
C)   a book publisher
D)   a veterinarian
E)   an automobile manufacturerF) A) and C)
G) A) and B)

Question 4

Kroger,a national supermarket chain,uses a special promotion to price a six-pack of soda at $2.09 (which is below its customary price level) ,it is attempting to

Accepted Answer

A)   drive its competition out of business.
B)   attract customers in hopes they will buy other products as well.
C)   fill its parking lot so its store will look successful.
D)   work with the local bottler to move products that are close to their expiration dates.
E)   help stimulate the local economy and generate good will with its customers.F) A) and B)
G) B) and C)

Question 5

skimming pricing policy is likely to be most effective when

Accepted Answer

A)   consumers perceive one product to be similar to other products on the market.
B)   a lower price will significantly lower fixed costs.
C)   competitors will be attracted to the market due to the potential for high sales revenues.
D)   consumers tend to be price sensitive.
E)   the high initial price will not attract competitors.F) B) and D)
G) None of the above

Question 6

Figure 14-1
-According to Figure 14-1 above,"C" represents which step in the price-setting process?

Accepted Answer

A)   estimate demand and revenue
B)   identify pricing objectives and constraints
C)   scan competitors for prices of similar products or services
D)   determine cost, volume, and profit relationships
E)   establish the price rangeF) D) and E)
G) B) and D)

Question 7

Geographical Pricing Map C
-Suppose a firm selects its plant in St.Louis as the location from where it will ship its products to all of the identified cities shown in Geographical Pricing Map C above.The MSRP of the product is $100 but the firm adds a freight surcharge to cover transportation/freight.This surcharge will vary according to the distance between the origin of the shipment-in this case St.Louis-and the destination or customer's location.In this pricing method,what is St.Louis called?

Accepted Answer

A)   basing point
B)   FOB origin point
C)   multiple-zone location
D)   FOB freight location
E)   FOB destination pointF) C) and D)
G) A) and E)

Question 8

most products,it is difficult to identify a specific market price for a product or product class.Still,marketing managers often have a subjective feel for the competitors' price or market price.Using this benchmark,they then may deliberately choose a strategy of

Accepted Answer

A)   above-, at-, or below-market pricing.
B)   loss-leader pricing.
C)   penetration pricing.
D)   standard markup pricing.
E)   experience curve pricing.F) A) and B)
G) None of the above

Question 9

Bundle pricing is considered to be a __________ pricing practice.

Accepted Answer

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

Question 10

origin pricing refers to

Accepted Answer

A)   a method of "free on board" pricing where the price the seller sets includes all transportation costs.
B)   a method of pricing where taxes and tariffs are adjusted based upon the city, state, or country of origin of a product and not its destination.
C)   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 (the seller's warehouse or factory, for example)  is referred to as
D)   a method of pricing where taxes and tariffs are adjusted based upon the city, state, or country destination of a product and not its place of origin.
E)   the buyer's naming the location of this loading as the seller's factory or warehouse.F) C) and E)
G) None of the above

Question 11

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

Accepted Answer

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

Question 12

Figure 14-3
-Figure 14-3A above shows a demand curve that slopes downward and to the right,then turns back to the left.Which pricing approach does Figure 14-3A depict?

Accepted Answer

A)   prestige pricing
B)   skimming pricing
C)   penetration pricing
D)   price lining
E)   reflexive pricingF) A) and E)
G) B) and D)

Question 13

cost-oriented approaches to pricing,a price setter stresses the __________ side of the pricing problem,not the __________ side.

Accepted Answer

A)   cost; revenue
B)   cost; demand
C)   cost; profit
D)   cost; supply
E)   cost; serviceF) None of the above
G) A) and C)

Question 14

Figure 14-1
-According to Figure 14-1 above,"B" represents which step in the price-setting process?

Accepted Answer

A)   estimate demand and revenue
B)   identify pricing objectives and constraints
C)   scan competitors for prices of similar products or services
D)   select the appropriate pricing formula
E)   determine cost, volume, and profit relationshipsF) B) and E)
G) A) and E)

Question 15

you were to buy one peach tree and one apple tree from the Stark Bros.fruit trees and landscaping catalog in two separate orders,you would pay a total of $108.99.However,if you order the peach and apple tree together in the same order,you pay only $89.99.When purchasing the two trees together,what pricing strategy does Stark Bros.employ?

Accepted Answer

A)   product line pricing
B)   prestige pricing
C)   price lining
D)   discount pricing
E)   bundle pricingF) D) and E)
G) C) and D)

Question 16

Family Dollar Stores Photo
-Tendollars.com offers thousands of gifts,all priced at $10.This is an example of two pricing methods working in tandem.The firm is MOST LIKELY using a(n) __________ and a(n) __________.

Accepted Answer

A)   customary pricing approach; skimming pricing approach
B)   odd-even pricing approach; loss-leader pricing approach
C)   below-market pricing approach; one-price policy
D)   penetration pricing approach; loss-leader pricing approach
E)   everyday low pricing approach; flexible-price policyF) B) and C)
G) None of the above

Question 17

Sherman bought gas,he noticed the convenience store offered him a 2 percent reduction in price if he paid cash rather than if he used his credit card to pay for his purchase.The convenience store was offering him a

Accepted Answer

A)   trade discount.
B)   cash discount.
C)   promotional allowance.
D)   rebate.
E)   functional discount.F) C) and D)
G) A) and C)

Question 18

box of Cascade dishwasher detergent shrink-wrapped with a bottle of Jet Dry for 10 cents more than the regular price of the dishwasher detergent is an example of __________ pricing.

Accepted Answer

A)   penetration
B)   prestige
C)   bundle
D)   odd-even
E)   standard mark-upF) A) and E)
G) B) and D)

Question 19

problem in the interstate trucking industry is the number of trucks that return empty after making a delivery.There is a website where independent interstate truckers can look for loads to carry on their return trips.Because the trucks would normally return empty,truckers who use this website to generate business they would not have had otherwise,receive a reduced shipping rate.This reduced rate is an example of

Accepted Answer

A)   penetration pricing.
B)   target pricing.
C)   cost-plus pricing.
D)   odd-even pricing.
E)   yield management pricing.F) A) and D)
G) All of the above

Question 20

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) None of the above
G) C) and E)

Exam 14: Arriving at the Final Price

Correct Answer
verified

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

most products,it is difficult to identify a specific market price for a product or product class.Still,marketing managers often have a subjective feel for the competitors' price or market price.Using this benchmark,they then may deliberately choose a strategy of

Correct Answer
verified

buying a car,__________ may result in discriminatory practices.

Correct Answer
verified

Which of the following companies would be most likely to use target return-on-investment pricing?

Correct Answer
verified

Figure 14-1 -According to Figure 14-1 above,"C" represents which step in the price-setting process?

Correct Answer
verified

Correct Answer
verified

Figure 14-3 -Figure 14-3A above shows a demand curve that slopes downward and to the right,then turns back to the left.Which pricing approach does Figure 14-3A depict?

Correct Answer
verified

Kroger,a national supermarket chain,uses a special promotion to price a six-pack of soda at $2.09 (which is below its customary price level) ,it is attempting to

Correct Answer
verified

cost-oriented approaches to pricing,a price setter stresses the side of the pricing problem,not the side.

Correct Answer
verified

Bundle pricing is considered to be a __________ pricing practice.

Correct Answer
verified

Sherman bought gas,he noticed the convenience store offered him a 2 percent reduction in price if he paid cash rather than if he used his credit card to pay for his purchase.The convenience store was offering him a

Correct Answer
verified

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

Correct Answer
verified

Figure 14-1 -According to Figure 14-1 above,"B" represents which step in the price-setting process?

Correct Answer
verified

skimming pricing policy is likely to be most effective when

Correct Answer
verified

origin pricing refers to

Correct Answer
verified

box of Cascade dishwasher detergent shrink-wrapped with a bottle of Jet Dry for 10 cents more than the regular price of the dishwasher detergent is an example of __________ pricing.

Correct Answer
verified

manufacturer offers a suggested list price for a cashmere sweater of $250.The trade discount is 40/20/10.What amount does the manufacturer expect to receive for the sweater?

Correct Answer
verified

Correct Answer
verified

Family Dollar Stores Photo -Tendollars.com offers thousands of gifts,all priced at $10.This is an example of two pricing methods working in tandem.The firm is MOST LIKELY using a(n) and a(n) .

Correct Answer
verified

Exam 14: Arriving at the Final Price

Correct AnswerverifiedShow Answer

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

most products,it is difficult to identify a specific market price for a product or product class.Still,marketing managers often have a subjective feel for the competitors' price or market price.Using this benchmark,they then may deliberately choose a strategy of

Correct AnswerverifiedShow Answer

buying a car,__________ may result in discriminatory practices.

Correct AnswerverifiedShow Answer

Which of the following companies would be most likely to use target return-on-investment pricing?

Correct AnswerverifiedShow Answer

Figure 14-1 -According to Figure 14-1 above,"C" represents which step in the price-setting process?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 14-3 -Figure 14-3A above shows a demand curve that slopes downward and to the right,then turns back to the left.Which pricing approach does Figure 14-3A depict?

Correct AnswerverifiedShow Answer

Kroger,a national supermarket chain,uses a special promotion to price a six-pack of soda at $2.09 (which is below its customary price level) ,it is attempting to

Correct AnswerverifiedShow Answer

cost-oriented approaches to pricing,a price setter stresses the __________ side of the pricing problem,not the __________ side.

Correct AnswerverifiedShow Answer

Bundle pricing is considered to be a __________ pricing practice.

Correct AnswerverifiedShow Answer

Sherman bought gas,he noticed the convenience store offered him a 2 percent reduction in price if he paid cash rather than if he used his credit card to pay for his purchase.The convenience store was offering him a

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 14-1 -According to Figure 14-1 above,"B" represents which step in the price-setting process?

Correct AnswerverifiedShow Answer

skimming pricing policy is likely to be most effective when

Correct AnswerverifiedShow Answer

origin pricing refers to

Correct AnswerverifiedShow Answer

box of Cascade dishwasher detergent shrink-wrapped with a bottle of Jet Dry for 10 cents more than the regular price of the dishwasher detergent is an example of __________ pricing.

Correct AnswerverifiedShow Answer

manufacturer offers a suggested list price for a cashmere sweater of $250.The trade discount is 40/20/10.What amount does the manufacturer expect to receive for the sweater?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Family Dollar Stores Photo -Tendollars.com offers thousands of gifts,all priced at $10.This is an example of two pricing methods working in tandem.The firm is MOST LIKELY using a(n) __________ and a(n) __________.

Correct AnswerverifiedShow Answer

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cost-oriented approaches to pricing,a price setter stresses the side of the pricing problem,not the side.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Family Dollar Stores Photo -Tendollars.com offers thousands of gifts,all priced at $10.This is an example of two pricing methods working in tandem.The firm is MOST LIKELY using a(n) and a(n) .

Correct Answer
verified