Question 1

Which of the following allow shoppers to bid on everything from bobble heads to health-and-fitness equipment?

Accepted Answer

A)  freemiums
B)  shopbots
C)  reverse auctions
D)  online auctions
E)  list pricesF) A) and B)
G) A) and C)

Question 2

Explain the concept of trial pricing.Why would a retailer implement this pricing strategy?

Accepted Answer

Trial pricing is used when a n...

Question 3

When a company charges the same rate to ship a product anywhere in the United States,it is using which form of pricing?

Accepted Answer

A)  freight absorption
B)  F) O.B.factory
C)  F) O.B.origin
D)  uniform delivered
E)  basing-pointF) A) and E)
G) None of the above

Question 4

In a(n) ________,all of the buyers know the highest price bid at any point in time.

Accepted Answer

A)  reverse auction
B)  dynamic auction
C)  open auction
D)  reserve auction
E)  price-lining auctionF) A) and E)
G) All of the above

Question 5

A skimming price is typically used when the company introducing a new product anticipates other competitors will enter the market quickly.

Accepted Answer

A) True 
 B)False

Question 6

A company in an industry characterized by monopolistic competition is most likely to adopt status quo pricing objectives.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a pricing strategy that turns the typical assumption about price-demand relationships on its head?

Accepted Answer

A)  penetration pricing
B)  price bundling
C)  assimilation effect pricing
D)  placebo effect pricing
E)  prestige pricingF) None of the above
G) A) and E)

Question 8

When Joe's Coffee Nook raised the price of a latte,Joe noticed a substantial change in his daily latte sales.A price reduction caused his sales to increase.From this information,you can assume the demand for lattes is ________.

Accepted Answer

A)  static
B)  supply-driven
C)  asymmetrical
D)  elastic
E)  inelasticF) A) and D)
G) B) and D)

Question 9

Mach 3 razor blades must be used in the Mach 3 razor.Which type of pricing is most likely used for the razor blades?

Accepted Answer

A)  penetration
B)  value
C)  captive
D)  two-part
E)  basing-pointF) A) and B)
G) D) and E)

Question 10

Valeo Fashions has just introduced a new line of fashion dresses for teens.The line will initially enter the market at high prices in a ________ strategy.

Accepted Answer

A)  penetration pricing
B)  skimming pricing
C)  price leadership
D)  yield management pricing
E)  value pricingF) A) and D)
G) B) and E)

Question 11

Describe what a demand curve is and explain how it helps marketers make decisions.

Accepted Answer

The demand curve estimates consumer dema...

Question 12

When setting prices,a company must consider factors in its pricing environment.________ such as the business cycle,economic growth,and consumer confidence can have a significant impact on the firm's pricing strategies.

Accepted Answer

A)  Consumer trends
B)  Economic trends
C)  Competitors' responses
D)  Regulations
E)  Market structuresF) All of the above
G) C) and D) B

Question 13

Often consumers base their perception of price on what they perceive to be the customary or ________.

Accepted Answer

A)  dynamic price
B)  fair price
C)  target price
D)  list price
E)  assimilated priceF) A) and E)
G) A) and B)

Question 14

The manufacturer's suggested retail price is also referred to as the ________.

Accepted Answer

A)  break-even price
B)  marginal price
C)  list price
D)  markup
E)  markdownF) C) and E)
G) None of the above C

Question 15

In price planning,a firm would be most likely to set a profit objective for which of the following products?

Accepted Answer

A)  a commodity such as coal
B)  toothpaste
C)  a fad such as Beanie Babies
D)  lightbulbs
E)  construction materialsF) A) and B)
G) A) and C)

Question 16

Compare F.O.B.origin pricing and F.O.B.delivered pricing.

Accepted Answer

F.O.B.origin pricing means that the cost...

Question 17

Application fees,tuition,and fines are all examples of prices.

Accepted Answer

A) True 
 B)False

Question 18

When setting prices,the company must consider its external pricing environment.Describe three components of the pricing environment and how they affect businesses.

Accepted Answer

Economic conditions affect both the cost...

Question 19

Inflation may cause marketers to decide to either raise or decrease their prices.

Accepted Answer

A) True 
 B)False  True

Question 20

Cost-based pricing considers factors such as the nature of the target market,demand,competition,and the product life cycle.

Accepted Answer

A) True 
 B)False

Exam 10: Price: What Is the Value Proposition Worth

Which of the following allow shoppers to bid on everything from bobble heads to health-and-fitness equipment?

Correct AnswerverifiedShow Answer

Explain the concept of trial pricing.Why would a retailer implement this pricing strategy?

Correct AnswerverifiedTrial pricing is used when a n...View AnswerShow Answer

When a company charges the same rate to ship a product anywhere in the United States,it is using which form of pricing?

Correct AnswerverifiedShow Answer

In a(n) ________,all of the buyers know the highest price bid at any point in time.

Correct AnswerverifiedShow Answer

A skimming price is typically used when the company introducing a new product anticipates other competitors will enter the market quickly.

Correct AnswerverifiedShow Answer

A company in an industry characterized by monopolistic competition is most likely to adopt status quo pricing objectives.

Correct AnswerverifiedShow Answer

Which of the following is a pricing strategy that turns the typical assumption about price-demand relationships on its head?

Correct AnswerverifiedShow Answer

When Joe's Coffee Nook raised the price of a latte,Joe noticed a substantial change in his daily latte sales.A price reduction caused his sales to increase.From this information,you can assume the demand for lattes is ________.

Correct AnswerverifiedShow Answer

Mach 3 razor blades must be used in the Mach 3 razor.Which type of pricing is most likely used for the razor blades?

Correct AnswerverifiedShow Answer

Valeo Fashions has just introduced a new line of fashion dresses for teens.The line will initially enter the market at high prices in a ________ strategy.

Correct AnswerverifiedShow Answer

Describe what a demand curve is and explain how it helps marketers make decisions.

Correct AnswerverifiedThe demand curve estimates consumer dema...View AnswerShow Answer

When setting prices,a company must consider factors in its pricing environment.________ such as the business cycle,economic growth,and consumer confidence can have a significant impact on the firm's pricing strategies.

Correct AnswerverifiedB

Often consumers base their perception of price on what they perceive to be the customary or ________.

Correct AnswerverifiedShow Answer

The manufacturer's suggested retail price is also referred to as the ________.

Correct AnswerverifiedC

In price planning,a firm would be most likely to set a profit objective for which of the following products?

Correct AnswerverifiedShow Answer

Compare F.O.B.origin pricing and F.O.B.delivered pricing.

Correct AnswerverifiedF.O.B.origin pricing means that the cost...View AnswerShow Answer

Application fees,tuition,and fines are all examples of prices.

Correct AnswerverifiedShow Answer

When setting prices,the company must consider its external pricing environment.Describe three components of the pricing environment and how they affect businesses.

Correct AnswerverifiedEconomic conditions affect both the cost...View AnswerShow Answer

Inflation may cause marketers to decide to either raise or decrease their prices.

Correct AnswerverifiedTrue

Cost-based pricing considers factors such as the nature of the target market,demand,competition,and the product life cycle.

Correct AnswerverifiedShow Answer

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Trial pricing is used when a n...
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The demand curve estimates consumer dema...
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B

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C

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F.O.B.origin pricing means that the cost...
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Economic conditions affect both the cost...
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True

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