Question 1

Many 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) C) and E)
G) C) and D)

Question 2

A penetration pricing policy is MOST LIKELY to be effective when: (1) many segments of the market are price sensitive; (2) __________;and (3) unit production and marketing costs fall dramatically as production volumes increase.

Accepted Answer

A)  lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost
B)  the high initial price will not attract competitors
C)  customers interpret the high price as signifying high quality
D)  a low initial price discourages competitors from entering the market
E)  enough prospective customers are willing to buy immediately at the high initial price to make these sales profitableF) C) and D)
G) None of the above

Question 3

The way that person navigates through an online marketer's website is called

Accepted Answer

A)  surf-shopping behavior.
B)  cross-channel shopping.
C)  the clickstream.
D)  1-click shopping.
E)  the shopper pathway.F) A) and D)
G) C) and D)

Question 4

When a seller represents a price as reduced,the item must have been offered in good faith at a higher price for a substantial previous period.Former price comparisons are deceptive if

Accepted Answer

A)  the high price tags were from a previous owner or retailer and were purchased that way from the reseller,even though that price didn't originate at the store.
B)  the items for sale were part of a manufacturer's promotional allowance.
C)  a high price was set for the purpose of establishing a reference for a price reduction.
D)  the items for sale were available at the higher price for less than 30 days.
E)  the items were purchased from the manufacturer at a higher price and the sale was part of a loss-leader promotion.F) A) and E)
G) None of the above

Question 5

The successive price cutting by competitors to increase or maintain their unit sales or market share is referred to as

Accepted Answer

A)  everyday even lower pricing.
B)  a price war.
C)  fair trade pricing.
D)  a market war.
E)  a price reduction.F) A) and E)
G) None of the above

Question 6

To encourage buyers to stock inventory earlier than their normal demand would require,manufacturers often use

Accepted Answer

A)  noncumulative discounts.
B)  cumulative discounts.
C)  seasonal discounts.
D)  trade discounts.
E)  functional discounts.F) A) and E)
G) None of the above

Question 7

Odd-even pricing is based on

Accepted Answer

A)  retailers' perceptions of price.
B)  customers' perceptions of price.
C)  wholesalers' markups.
D)  manufacturers' perceptions of price.
E)  government regulators' perceptions of price.F) A) and E)
G) C) and E)

Question 8

Demand-oriented approaches weigh factors that underlie expected __________ more heavily than such factors as cost,profit,and competition when selecting a price level.

Accepted Answer

A)  total revenue
B)  stakeholder concerns
C)  prevailing prices
D)  product substitutes
E)  customer tastesF) A) and B)
G) C) and D)

Question 9

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 2010?

Accepted Answer

A)  -12.5%
B)  -7.5%
C)  -5.3%
D)  0%
E)  15.2%F) A) and B)
G) A) and C)

Question 10

Selecting one or more geographical locations from which the list price for products plus freight expenses are charged to the buyer is referred to as __________.

Accepted Answer

A)  FOB origin pricing
B)  basing-point pricing
C)  single-zone pricing
D)  multiple-zone pricing
E)  freight absorption pricingF) C) and E)
G) A) and B)

Question 11

Figure 14-1 above represents the six steps in setting price.Which letter represents the step where a firm would offer allowances?

Accepted Answer

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

Question 12

If the cash discount terms for a $500 purchase are 4/10 net 30,the number 4 refers to

Accepted Answer

A)  the percentage markup on the product.
B)  the percentage discount if the bill is paid within 10 days.
C)  the percentage increase in price if the bill is not paid within 10 days.
D)  the discount in dollars per unit if the order is paid on time within 30 days.
E)  the penalty in dollars if the bill is not paid within 10 days.F) C) and D)
G) None of the above

Question 13

The practice of charging different prices to different buyers for goods of like grade and quality is referred to as

Accepted Answer

A)  horizontal price-fixing.
B)  resale price maintenance.
C)  price discrimination.
D)  predatory pricing.
E)  bait and switch pricing.F) B) and E)
G) All of the above

Question 14

In some cases,penetration pricing may follow which pricing strategy?

Accepted Answer

A)  experience curve
B)  target ROI
C)  odd-even
D)  above market
E)  skimmingF) A) and B)
G) A) and C)

Question 15

Price fixing is illegal per se under the Sherman Act.What does "per se" mean?

Accepted Answer

A)  "according to"
B)  "in lieu of"
C)  "in regard to"
D)  "in and of itself"
E)  "without exception"F) B) and C)
G) B) and E)

Question 16

According to the textbook,which industry typically adopts an experience curve pricing approach?

Accepted Answer

A)  logging
B)  space exploration
C)  ready-to-eat cereal
D)  electronics
E)  miningF) C) and E)
G) C) and D)

Question 17

The two forms of cost-plus pricing are

Accepted Answer

A)  cost-plus fixed-fee pricing and cost-plus variable-fee pricing.
B)  cost-plus ROI pricing and cost-minus ROI pricing.
C)  target return on sales pricing and target return on investment pricing.
D)  cost-plus percentage-of-cost pricing and cost-plus fixed-fee pricing.
E)  dynamic pricing and flexible pricing.F) C) and E)
G) A) and B)

Question 18

Setting a price that is dictated by tradition,a standardized channel of distribution,or other competitive factors is referred to as __________.

Accepted Answer

A)  cost-plus pricing
B)  customary pricing
C)  standard markup pricing
D)  loss leader pricing
E)  target profit pricingF) A) and B)
G) C) and D)

Question 19

Which of the following pricing techniques is most sensitive to customers' responses to price?

Accepted Answer

A)  cost-plus percentage-of-cost pricing
B)  target pricing
C)  experience curve pricing
D)  cost-plus fixed-fee pricing
E)  standard markup pricingF) C) and D)
G) C) and E)

Question 20

What are the five most common deceptive pricing practices? Give an example of each one.

Accepted Answer

The five most common deceptive pricing p...

Exam 14: Arriving at the Final Price

What are the five most common deceptive pricing practices? Give an example of each one.

Correct AnswerverifiedThe five most common deceptive pricing p...View AnswerShow Answer

Many 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

To encourage buyers to stock inventory earlier than their normal demand would require,manufacturers often use

Correct AnswerverifiedShow Answer

Figure 14-1 above represents the six steps in setting price.Which letter represents the step where a firm would offer allowances?

Correct AnswerverifiedShow Answer

A penetration pricing policy is MOST LIKELY to be effective when: (1) many segments of the market are price sensitive; (2) __________;and (3) unit production and marketing costs fall dramatically as production volumes increase.

Correct AnswerverifiedShow Answer

In some cases,penetration pricing may follow which pricing strategy?

Correct AnswerverifiedShow Answer

Demand-oriented approaches weigh factors that underlie expected __________ more heavily than such factors as cost,profit,and competition when selecting a price level.

Correct AnswerverifiedShow Answer

According to the textbook,which industry typically adopts an experience curve pricing approach?

Correct AnswerverifiedShow Answer

If the cash discount terms for a $500 purchase are 4/10 net 30,the number 4 refers to

Correct AnswerverifiedShow Answer

Setting a price that is dictated by tradition,a standardized channel of distribution,or other competitive factors is referred to as __________.

Correct AnswerverifiedShow Answer

Which of the following pricing techniques is most sensitive to customers' responses to price?

Correct AnswerverifiedShow Answer

The way that person navigates through an online marketer's website is called

Correct AnswerverifiedShow Answer

The successive price cutting by competitors to increase or maintain their unit sales or market share is referred to as

Correct AnswerverifiedShow Answer

When a seller represents a price as reduced,the item must have been offered in good faith at a higher price for a substantial previous period.Former price comparisons are deceptive if

Correct AnswerverifiedShow Answer

The two forms of cost-plus pricing are

Correct AnswerverifiedShow Answer

Selecting one or more geographical locations from which the list price for products plus freight expenses are charged to the buyer is referred to as __________.

Correct AnswerverifiedShow Answer

Odd-even pricing is based on

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 2010?

Correct AnswerverifiedShow Answer

The practice of charging different prices to different buyers for goods of like grade and quality is referred to as

Correct AnswerverifiedShow Answer

Price fixing is illegal per se under the Sherman Act.What does "per se" mean?

Correct AnswerverifiedShow Answer

Correct Answer
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The five most common deceptive pricing p...
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