Question 1

When a marketer establishes a price floor and a price ceiling for an entire line of similar products and then sets price points in between for differences in quality among the products,he or she is using a __________ pricing approach.

Accepted Answer

A)   market penetration
B)   zone
C)   price lining
D)   loss leader
E)   noncumulative quantity discount

Question 2

When Sheila decided to sell her shoe racks on eBay,she stated the price and a shipping rate according to delivery area.Which method of pricing was Sheila using?

Accepted Answer

A)   zone pricing
B)   uniform delivered pricing
C)   leader pricing
D)   price bundling
E)   price fixing

Question 3

The advantage of zone pricing to the seller is the shipping charges typically

Accepted Answer

A)   are not marked down during the off season.
B)   complement the advertising allowances.
C)   reflect more closely the cost of delivery.
D)   result in a cumulative quantity discount.
E)   are the same for all shipments,making it easy to calculate total price.

Question 4

Cost-based pricing assumes costs

Accepted Answer

A)   vary with the level of prices.
B)   are used to estimate value.
C)   will not vary much for different levels of production.
D)   are calculated based on historical consumer perceptions of what things should cost.
E)   will continue to decrease as production increases.

Question 5

Production of the DeLorean car,made famous in the film Back to the Future,never got above 25,000 units during its lifetime.Automobile industry analysts estimate that production of this car needed to reach around 300,000 units to achieve the __________,a decrease in unit cost as product volume increases.

Accepted Answer

A)   slotting allowance benefit
B)   price fixing return
C)   improvement value effect
D)   experience curve effect
E)   cumulative bundling benefit

Question 6

One of the problems associated with an everyday low pricing (EDLP) strategy is that

Accepted Answer

A)   stores may have to offer too many noncumulative wholesale discounts.
B)   some consumers may associate EDLP with lower quality goods.
C)   the retailer may be accused of price discrimination.
D)   too many coupons may be redeemed.
E)   it may conflict with price-based cost calculations.

Question 7

When the first hybrid automobiles became available on the market,manufacturers had only minimal production capacity.They used a price skimming strategy primarily to

Accepted Answer

A)   recoup high research and development costs.
B)   signal high quality.
C)   limit demand.
D)   penetrate a market.
E)   test consumers' price sensitivity.

Question 8

Dan is especially price sensitive.He has been known to line up on "Black Friday" (the day after Thanksgiving) at 4 a.m.in order to be among the first to buy sale items.Dan would likely respond to a __________ pricing strategy.

Accepted Answer

A)   high / low
B)   premium
C)   slotting allowance
D)   horizontal flattening
E)   vertical triangulation

Question 9

Retailers use ____________ to get rid of slow moving or obsolete merchandise.

Accepted Answer

A)   markdowns
B)   slotting allowances
C)   price lining
D)   rebates
E)   seasonal allowances

Question 10

One of the benefits of offering a size discount to consumers is they will purchase more of a marketer's product and

Accepted Answer

A)   earn a cash discount.
B)   experience the experience curve effect.
C)   will not fall prey to predatory pricing.
D)   will be less likely to switch brands.
E)   will be able to take advantage of zone pricing benefits.

Question 11

__________ pricing tactics lower the price of a product below cost.

Accepted Answer

A)   Fixed
B)   Zone
C)   Regular
D)   Loss leader
E)   Cost-based

Question 12

John Deere farming equipment has been around for over a century and is known for its durability.Its equipment is usually priced higher than competitors' offerings.What type of value-based pricing method would be appropriate for John Deere,and why?

Accepted Answer

A cost of ownership strategy w...

Question 13

Some consumers make it a point to go shopping the day after Christmas in order to

Accepted Answer

A)   collect coupons as holiday gifts.
B)   enjoy odd pricing benefits.
C)   take advantage of everyday low pricing strategies.
D)   avoid bait and switch strategies.
E)   take advantage of seasonal discounts.

Question 14

In determining the price for his company's new personal computer photography printer,Raymond is assessing the total cost of owning his printer as compared to alternative products available in the market.Raymond is using __________ pricing.

Accepted Answer

A)   improvement value
B)   odd-even
C)   everyday low pricing
D)   reference-based
E)   cost of ownership

Question 15

Odd prices often suggest __________ to consumers.

Accepted Answer

A)   low quality
B)   superior quality
C)   uniqueness
D)   expired merchandise
E)   foreign-made goods

Question 16

What is predatory pricing? What federal acts make it illegal? How are consumers hurt by predatory pricing?

Accepted Answer

Predatory pricing is setting very low pr...

Question 17

What does an everyday low prices strategy say to consumers?

Accepted Answer

It suggests that prices will b...

Question 18

Because market and operating conditions are different in each target market

Accepted Answer

A)   all consumers will react similarly to the firm's pricing strategy.
B)   the choice of a pricing strategy is specific to the target market.
C)   prices need to be held constant because everything else is changing.
D)   only horizontal price fixing should be used.
E)   external reference prices will always be the best strategy.

Question 19

For marketers to advertise a price as their __________,the Better Business Bureau recommends that at least 50 percent of the sales of a product occur at that price.

Accepted Answer

A)   fixed price
B)   zone price
C)   regular price
D)   leader price
E)   cost-based price

Question 20

What is the added benefit to a manufacturer of using rebates rather than coupons?

Accepted Answer

Rebates allow manufa...

Exam 15: Strategic Pricing Methods

Odd prices often suggest __________ to consumers.

Correct Answer
verified

John Deere farming equipment has been around for over a century and is known for its durability.Its equipment is usually priced higher than competitors' offerings.What type of value-based pricing method would be appropriate for John Deere,and why?

Correct Answer
verified
A cost of ownership strategy w...
View Answer

In determining the price for his company's new personal computer photography printer,Raymond is assessing the total cost of owning his printer as compared to alternative products available in the market.Raymond is using __________ pricing.

Correct Answer
verified

What is the added benefit to a manufacturer of using rebates rather than coupons?

Correct Answer
verified
Rebates allow manufa...
View Answer

When the first hybrid automobiles became available on the market,manufacturers had only minimal production capacity.They used a price skimming strategy primarily to

Correct Answer
verified

When a marketer establishes a price floor and a price ceiling for an entire line of similar products and then sets price points in between for differences in quality among the products,he or she is using a __________ pricing approach.

Correct Answer
verified

Dan is especially price sensitive.He has been known to line up on "Black Friday" (the day after Thanksgiving) at 4 a.m.in order to be among the first to buy sale items.Dan would likely respond to a __________ pricing strategy.

Correct Answer
verified

One of the problems associated with an everyday low pricing (EDLP) strategy is that

Correct Answer
verified

One of the benefits of offering a size discount to consumers is they will purchase more of a marketer's product and

Correct Answer
verified

For marketers to advertise a price as their __________,the Better Business Bureau recommends that at least 50 percent of the sales of a product occur at that price.

Correct Answer
verified

Because market and operating conditions are different in each target market

Correct Answer
verified

Some consumers make it a point to go shopping the day after Christmas in order to

Correct Answer
verified

The advantage of zone pricing to the seller is the shipping charges typically

Correct Answer
verified

Cost-based pricing assumes costs

Correct Answer
verified

What is predatory pricing? What federal acts make it illegal? How are consumers hurt by predatory pricing?

Correct Answer
verified
Predatory pricing is setting very low pr...
View Answer

Retailers use ____________ to get rid of slow moving or obsolete merchandise.

Correct Answer
verified

What does an everyday low prices strategy say to consumers?

Correct Answer
verified
It suggests that prices will b...
View Answer

Correct Answer
verified

When Sheila decided to sell her shoe racks on eBay,she stated the price and a shipping rate according to delivery area.Which method of pricing was Sheila using?

Correct Answer
verified

__________ pricing tactics lower the price of a product below cost.

Correct Answer
verified

Exam 15: Strategic Pricing Methods

Odd prices often suggest __________ to consumers.

Correct AnswerverifiedShow Answer

John Deere farming equipment has been around for over a century and is known for its durability.Its equipment is usually priced higher than competitors' offerings.What type of value-based pricing method would be appropriate for John Deere,and why?

Correct AnswerverifiedA cost of ownership strategy w...View AnswerShow Answer

In determining the price for his company's new personal computer photography printer,Raymond is assessing the total cost of owning his printer as compared to alternative products available in the market.Raymond is using __________ pricing.

Correct AnswerverifiedShow Answer

What is the added benefit to a manufacturer of using rebates rather than coupons?

Correct AnswerverifiedRebates allow manufa...View AnswerShow Answer

When the first hybrid automobiles became available on the market,manufacturers had only minimal production capacity.They used a price skimming strategy primarily to

Correct AnswerverifiedShow Answer

When a marketer establishes a price floor and a price ceiling for an entire line of similar products and then sets price points in between for differences in quality among the products,he or she is using a __________ pricing approach.

Correct AnswerverifiedShow Answer

Dan is especially price sensitive.He has been known to line up on "Black Friday" (the day after Thanksgiving) at 4 a.m.in order to be among the first to buy sale items.Dan would likely respond to a __________ pricing strategy.

Correct AnswerverifiedShow Answer

One of the problems associated with an everyday low pricing (EDLP) strategy is that

Correct AnswerverifiedShow Answer

One of the benefits of offering a size discount to consumers is they will purchase more of a marketer's product and

Correct AnswerverifiedShow Answer

For marketers to advertise a price as their __________,the Better Business Bureau recommends that at least 50 percent of the sales of a product occur at that price.

Correct AnswerverifiedShow Answer

Because market and operating conditions are different in each target market

Correct AnswerverifiedShow Answer

Some consumers make it a point to go shopping the day after Christmas in order to

Correct AnswerverifiedShow Answer

The advantage of zone pricing to the seller is the shipping charges typically

Correct AnswerverifiedShow Answer

Cost-based pricing assumes costs

Correct AnswerverifiedShow Answer

What is predatory pricing? What federal acts make it illegal? How are consumers hurt by predatory pricing?

Correct AnswerverifiedPredatory pricing is setting very low pr...View AnswerShow Answer

Retailers use ____________ to get rid of slow moving or obsolete merchandise.

Correct AnswerverifiedShow Answer

What does an everyday low prices strategy say to consumers?

Correct AnswerverifiedIt suggests that prices will b...View AnswerShow Answer

Correct AnswerverifiedShow Answer

When Sheila decided to sell her shoe racks on eBay,she stated the price and a shipping rate according to delivery area.Which method of pricing was Sheila using?

Correct AnswerverifiedShow Answer

__________ pricing tactics lower the price of a product below cost.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
A cost of ownership strategy w...
View Answer

Correct Answer
verified

Correct Answer
verified
Rebates allow manufa...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Predatory pricing is setting very low pr...
View Answer

Correct Answer
verified

Correct Answer
verified
It suggests that prices will b...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified