Question 1

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) A) and E)
G) A) and B)

Question 2

Which of the following statements about everyday low pricing (EDLP) is most accurate?

Accepted Answer

A)   For supermarkets, EDLP means "everyday low profits!"
B)   Supermarkets have hailed EDLP as value pricing at its most effective.
C)   EDLP allows supermarkets to use deeply discounted price specials.
D)   EDLP can increase average retail prices by as much as 10 percent.
E)   If retailers pass on their allowances to customers, they cannot make a profit.F) B) and C)
G) C) and D)

Question 3

Setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product is referred to as a

Accepted Answer

A)   skimming strategy.
B)   penetration strategy.
C)   price-lining strategy.
D)   experience-curve pricing strategy.
E)   prestige pricing strategy.F) B) and E)
G) B) and C)

Question 4

Which of the following statements regarding quantity discounts is most accurate?

Accepted Answer

A)   Noncumulative quantity discounts encourage large individual purchase orders, not a series of orders.
B)   Noncumulative quantity discounts encourage repeat buying by a single customer to a far greater degree than do cumulative quantity discounts.
C)   Quantity discounts are primarily used to undercut competitors' prices.
D)   Noncumulative quantity discounts encourage smaller long-term repeat purchases rather than less-frequent, larger short-term purchases.
E)   Quantity discounts can basically be used only once with each reseller or the price will increase.F) A) and B)
G) B) and E)

Question 5

Apple iPhone was introduced at an initial price of $600.People waited in line overnight so they could be one of the first to own this unique smartphone.Which pricing strategy did Apple use to help recoup its research and development costs for the smartphone?

Accepted Answer

A)   penetration pricing
B)   experience curve pricing
C)   customary pricing
D)   skimming pricing
E)   target pricingF) A) and E)
G) B) and E)

Question 6

Resale price maintenance was declared illegal in 1975 under the

Accepted Answer

A)   Sherman Act.
B)   Consumer Goods Pricing Act.
C)   Robinson-Patman Act.
D)   Federal Trade Commission Act.
E)   Clayton Act.F) A) and B)
G) C) and E)

Question 7

Geographical Pricing Map A
-a firm divides its selling territory into geographic areas,it is referred to as

Accepted Answer

A)   single-zone pricing.
B)   multiple-zone pricing.
C)   geographic pricing.
D)   FOB origin pricing.
E)   basing-point pricing.F) B) and E)
G) B) and C)

Question 8

Which of the following statements regarding odd-even pricing is most accurate?

Accepted Answer

A)   Odd-even pricing is designed to give the consumer a better set of pricing alternatives.
B)   Odd-even pricing can be used in conjunction with a skimming strategy, but should not be used with a penetration strategy.
C)   Odd-even pricing does not work if the product is healthcare-related.
D)   Overuse of odd-ending prices tends to mute its effect on demand.
E)   Odd-ending prices are best used with large ticket items; it loses its effectiveness with moderate- to low-ticket items.F) B) and D)
G) B) and E)

Question 9

Toro Ad
-Consider the Toro ad above.What type of discount does Toro offer its channel members to carry and sell its riding lawn mowers during the winter months?

Accepted Answer

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

Question 10

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)   price lining
E)   benchmarkF) B) and E)
G) A) and B)

Question 11

Everyday low pricing refers to

Accepted Answer

A)   the pricing strategy of "extreme value" stores to maintain high price-quality images for the products they sell.
B)   the pricing strategy of starting a product at standard list price and then lowering the price by a certain percentage until it is sold.
C)   short-term price reductions when consumer demand takes a significant and unexpected dip.
D)   the practice of replacing promotional allowances with lower manufacturer list prices.
E)   a form of predatory pricing used solely for the purpose of undercutting competitors' prices.F) All of the above
G) None of the above

Question 12

is the critical assumption when using target profit pricing?

Accepted Answer

A)   a higher average price will usually cause the demand to fall
B)   a higher average price will always cause the demand to fall
C)   profit is relative to the current value of the dollar so this form of pricing is extremely risky
D)   a higher average price will not cause the demand to fall
E)   if the average price is increased, all of a firm's competitors will do the sameF) A) and C)
G) D) and E)

Question 13

skimming pricing policy is likely to be most effective when: (1) enough customers are willing to buy immediately at the high initial price; (2) lowering the price has only a minor effect on increasing sales volume and reducing unit costs; (3) when the initial high prices do not attract competitors; and (4) __________.

Accepted Answer

A)   consumers perceive your product to be similar to other products on the market
B)   a lower price will significantly reduce unit costs
C)   when customers interpret the high price as signifying high quality
D)   consumers tend to be price sensitive
E)   it will be easier to set measurable sales unit goalsF) A) and D)
G) A) and C)

Question 14

first Apple iPad was introduced in 2010 at an initial price of $650 for the 16 GB version.People waited in line overnight so they could be one of the first to own this unique tablet device.Which pricing strategy did Apple use to help recoup its research and development costs for the iPad?

Accepted Answer

A)   price lining
B)   penetration pricing
C)   customary pricing
D)   skimming pricing
E)   target pricingF) A) and B)
G) All of the above

Question 15

While the most commonly used pricing method for business products is cost-plus pricing,this method is becoming more and more popular among __________ in the service sector.

Accepted Answer

A)   e-businesses
B)   business-to-consumer firms
C)   business-to-government sellers
D)   nonprofit organizations
E)   business-to-business marketersF) All of the above
G) C) and D)

Question 16

Controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price is called

Accepted Answer

A)   competitive collusion.
B)   price cooperation.
C)   horizontal price fixing.
D)   lateral price fixing.
E)   vertical price fixing.F) All of the above
G) A) and D)

Question 17

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 offer allowances?

Accepted Answer

A)   "F"
B)   "E"
C)   "D"
D)   "C"
E)   "B"F) All of the above
G) C) and E)

Question 18

Geographical adjustments are made by manufacturers or even wholesalers to list or quoted prices to reflect

Accepted Answer

A)   loyalty to the local economy whether it be city, state, or nationally designated.
B)   changes in price due to tariffs or excise taxes.
C)   the cost of transportation of the products from seller to buyer.
D)   the differentiated aspect of the particular product or service.
E)   simplicity in pricing structures.F) B) and E)
G) B) and D)

Question 19

prices for all furniture sold at American Furniture Warehouse end in $9,such as $599.99,$899.99,etc.American Furniture Warehouse uses

Accepted Answer

A)   odd-even pricing.
B)   dynamic pricing.
C)   price lining.
D)   bundle pricing.
E)   product line pricing.F) C) and D)
G) B) and C)

Question 20

cruise lines pay the customer's airfare to the point of cruise departure.What type of price adjustment are the cruise lines using?

Accepted Answer

A)   skimming pricing
B)   promotional pricing
C)   loss-leader pricing
D)   prestige pricing
E)   uniform delivered pricingF) A) and E)
G) D) and E)

Exam 14: Arriving at the Final Price

Controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price is called

Correct Answer
verified

Which of the following statements regarding quantity discounts is most accurate?

Correct Answer
verified

Geographical adjustments are made by manufacturers or even wholesalers to list or quoted prices to reflect

Correct Answer
verified

first Apple iPad was introduced in 2010 at an initial price of $650 for the 16 GB version.People waited in line overnight so they could be one of the first to own this unique tablet device.Which pricing strategy did Apple use to help recoup its research and development costs for the iPad?

Correct Answer
verified

Setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product is referred to as a

Correct Answer
verified

prices for all furniture sold at American Furniture Warehouse end in $9,such as $599.99,$899.99,etc.American Furniture Warehouse uses

Correct Answer
verified

Which of the following statements regarding odd-even pricing is most accurate?

Correct Answer
verified

cruise lines pay the customer's airfare to the point of cruise departure.What type of price adjustment are the cruise lines using?

Correct Answer
verified

Toro Ad -Consider the Toro ad above.What type of discount does Toro offer its channel members to carry and sell its riding lawn mowers during the winter months?

Correct Answer
verified

Which of the following statements about everyday low pricing (EDLP) is most accurate?

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 offer allowances?

Correct Answer
verified

Apple iPhone was introduced at an initial price of $600.People waited in line overnight so they could be one of the first to own this unique smartphone.Which pricing strategy did Apple use to help recoup its research and development costs for the smartphone?

Correct Answer
verified

Everyday low pricing refers to

Correct Answer
verified

Resale price maintenance was declared illegal in 1975 under the

Correct Answer
verified

While the most commonly used pricing method for business products is cost-plus pricing,this method is becoming more and more popular among __________ in the service sector.

Correct Answer
verified

Correct Answer
verified

Geographical Pricing Map A -a firm divides its selling territory into geographic areas,it is referred to as

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

is the critical assumption when using target profit pricing?

Correct Answer
verified

Exam 14: Arriving at the Final Price

Controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price is called

Correct AnswerverifiedShow Answer

Which of the following statements regarding quantity discounts is most accurate?

Correct AnswerverifiedShow Answer

Geographical adjustments are made by manufacturers or even wholesalers to list or quoted prices to reflect

Correct AnswerverifiedShow Answer

first Apple iPad was introduced in 2010 at an initial price of $650 for the 16 GB version.People waited in line overnight so they could be one of the first to own this unique tablet device.Which pricing strategy did Apple use to help recoup its research and development costs for the iPad?

Correct AnswerverifiedShow Answer

Setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product is referred to as a

Correct AnswerverifiedShow Answer

prices for all furniture sold at American Furniture Warehouse end in $9,such as $599.99,$899.99,etc.American Furniture Warehouse uses

Correct AnswerverifiedShow Answer

Which of the following statements regarding odd-even pricing is most accurate?

Correct AnswerverifiedShow Answer

cruise lines pay the customer's airfare to the point of cruise departure.What type of price adjustment are the cruise lines using?

Correct AnswerverifiedShow Answer

Toro Ad -Consider the Toro ad above.What type of discount does Toro offer its channel members to carry and sell its riding lawn mowers during the winter months?

Correct AnswerverifiedShow Answer

Which of the following statements about everyday low pricing (EDLP) is most accurate?

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 offer allowances?

Correct AnswerverifiedShow Answer

Apple iPhone was introduced at an initial price of $600.People waited in line overnight so they could be one of the first to own this unique smartphone.Which pricing strategy did Apple use to help recoup its research and development costs for the smartphone?

Correct AnswerverifiedShow Answer

Everyday low pricing refers to

Correct AnswerverifiedShow Answer

Resale price maintenance was declared illegal in 1975 under the

Correct AnswerverifiedShow Answer

While the most commonly used pricing method for business products is cost-plus pricing,this method is becoming more and more popular among __________ in the service sector.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Geographical Pricing Map A -a firm divides its selling territory into geographic areas,it is referred to as

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

is the critical assumption when using target profit pricing?

Correct AnswerverifiedShow Answer

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