Question 1

Odd-even pricing refers to

Accepted Answer

A)   setting prices one way for product lines and another way for individual brands.
B)   setting prices of luxury items at even price points and setting the price of necessities at odd price points.
C)   setting prices a few dollars or cents under an odd number.
D)   adding a fixed percentage to the cost of all items in a specific product class.
E)   setting prices a few dollars or cents under an even number.F) C) and E)
G) All of the above

Question 2

Charging different prices to maximize revenue for a set amount of capacity at any given time is referred to as

Accepted Answer

A)   demand backward pricing.
B)   target pricing.
C)   skimming pricing.
D)   yield management pricing.
E)   penetration pricing.F) A) and E)
G) D) and E)

Question 3

A custom tailor wishes to use target profit pricing to establish a price for a custom-designed business suit.Assume variable cost is $200 per suit,fixed cost is $44,000,and the target profit is $50,000 based on a volume of 50 suits.What price should be charged for a typical custom suit?

Accepted Answer

A)   $520
B)   $1,040
C)   $1,880
D)   $2,080
E)   $10,000F) None of the above
G) A) and C)

Question 4

The practice of simultaneously increasing product and service benefits while maintaining or decreasing price is referred to as

Accepted Answer

A)   value-pricing.
B)   customer-value pricing.
C)   competitive pricing.
D)   cost pricing.
E)   demand pricing.F) A) and D)
G) B) and E)

Question 5

Pricing constraints refers to

Accepted Answer

A)   barriers that must be overcome in order to set pricing objectives.
B)   competitive pricing advantages one firm has over another.
C)   different pricing strategies for each of the firm's products.
D)   factors that limit the range of prices a firm may set.
E)   barriers to entry a firm faces when launching a new product.F) A) and B)
G) D) and E)

Question 6

Estimating a break-even point would occur during which stage of the price-setting process?

Accepted Answer

A)   Defining the scope of the product
B)   Selecting an approximate price level
C)   Setting the list or quoted price
D)   Evaluating the success of the price strategy
E)   Making special adjustments to the list priceF) B) and C)
G) A) and B)

Question 7

Two types of adjustments to list or quoted price are

Accepted Answer

A)   profit-oriented and marginal adjustments.
B)   fixed-price and dynamic price adjustments.
C)   discounts and marginal adjustments.
D)   discounts and allowances.
E)   incremental costs and incremental revenues.F) A) and D)
G) A) and C)

Question 8

According to the textbook,Revlon cosmetics uses __________ pricing.

Accepted Answer

A)   above-market
B)   at-market
C)   below-market
D)   prestige
E)   everyday lowF) None of the above
G) B) and C)

Question 9

The pricing approach that results in the manufacturer deliberately adjusting the composition and features of the product to achieve a calculated price for consumers is referred to as

Accepted Answer

A)   cost-benefit pricing.
B)   cost-plus-percentage-of-cost pricing.
C)   target pricing.
D)   cost-plus-fixed-fee pricing.
E)   product feature pricing.F) A) and D)
G) A) and C)

Question 10

Trade discounts are offered to resellers in the marketing channel on the basis of where they are in the channel and

Accepted Answer

A)   the marketing activities they are expected to perform in the future.
B)   the frequency of the order.
C)   when orders are placed during the year.
D)   the length of the relationship with the manufacturer.
E)   the size of the order.F) A) and D)
G) B) and E)

Question 11

Three different objectives relate to a firm's profit,which have different implications for pricing strategy.The three profit-oriented objectives include managing for long-run profits,maximizing current profit objectives,and

Accepted Answer

A)   accumulating profits.
B)   reinvesting profits.
C)   redistributing profits.
D)   maximizing gross margin.
E)   achieving a target return.F) C) and E)
G) A) and D)

Question 12

Figure 11-6a 
-In Figure 11-6a,which is a break-even chart that depicts a graphic presentation of a break-even analysis for a picture frame store,the area CGD represents the firm's

Accepted Answer

A)   fixed costs.
B)   break-even point.
C)   variable costs.
D)   profit.
E)   total revenue.F) A) and E)
G) B) and E)

Question 13

While pricing objectives frequently reflect corporate goals,pricing constraints often relate to

Accepted Answer

A)   stockholder demands.
B)   political ideology.
C)   conditions existing in the marketplace.
D)   an organization's code of ethics.
E)   the financial realities within the organization itself.F) C) and D)
G) None of the above

Question 14

The reward a manufacturer gives to wholesalers and retailers for marketing functions they will perform in the future is referred to as

Accepted Answer

A)   seasonal discounts.
B)   cash discounts.
C)   promotional allowances.
D)   trade discounts.
E)   trade-in allowances.F) A) and B)
G) A) and C)

Question 15

What is standard markup pricing and when would it be used?

Accepted Answer

Standard markup pricing entails adding a...

Question 16

When Dell sells various laptops,it also pre-installs Microsoft Office and other software that customers order at a discount before the laptop is shipped.This is an example of

Accepted Answer

A)   price lining.
B)   product-line pricing.
C)   bundle pricing.
D)   customary pricing.
E)   prestige pricing.F) C) and D)
G) C) and E)

Question 17

All of the following are profit-oriented approaches to select an approximate price level except which?

Accepted Answer

A)   target ROI pricing
B)   target profit pricing
C)   target return-on-sales pricing
D)   target return-on-investment pricing
E)   cost-plus-percentage-of-cost pricingF) A) and B)
G) A) and D)

Question 18

What are the four kinds of discounts that are especially important in marketing pricing strategy?

Accepted Answer

Discounts are reductions from list price...

Question 19

Identifying pricing objectives and constraints would occur during which stage of the price-setting process?

Accepted Answer

A)   Selecting an approximate price level
B)   Defining the scope of the product
C)   Setting the list or quoted price
D)   Evaluating the success of the price strategy
E)   Making special adjustments to the list priceF) A) and E)
G) A) and D)

Question 20

Rent,executive salaries,and insurance are typical examples of

Accepted Answer

A)   variable costs.
B)   fixed costs.
C)   unit costs.
D)   marginal costs.
E)   total costs.F) C) and D)
G) B) and D)

Exam 11: Pricing Products and Services

While pricing objectives frequently reflect corporate goals,pricing constraints often relate to

Correct AnswerverifiedShow Answer

Three different objectives relate to a firm's profit,which have different implications for pricing strategy.The three profit-oriented objectives include managing for long-run profits,maximizing current profit objectives,and

Correct AnswerverifiedShow Answer

The reward a manufacturer gives to wholesalers and retailers for marketing functions they will perform in the future is referred to as

Correct AnswerverifiedShow Answer

Estimating a break-even point would occur during which stage of the price-setting process?

Correct AnswerverifiedShow Answer

What is standard markup pricing and when would it be used?

Correct AnswerverifiedStandard markup pricing entails adding a...View AnswerShow Answer

Charging different prices to maximize revenue for a set amount of capacity at any given time is referred to as

Correct AnswerverifiedShow Answer

When Dell sells various laptops,it also pre-installs Microsoft Office and other software that customers order at a discount before the laptop is shipped.This is an example of

Correct AnswerverifiedShow Answer

Figure 11-6a -In Figure 11-6a,which is a break-even chart that depicts a graphic presentation of a break-even analysis for a picture frame store,the area CGD represents the firm's

Correct AnswerverifiedShow Answer

Two types of adjustments to list or quoted price are

Correct AnswerverifiedShow Answer

The practice of simultaneously increasing product and service benefits while maintaining or decreasing price is referred to as

Correct AnswerverifiedShow Answer

Odd-even pricing refers to

Correct AnswerverifiedShow Answer

Identifying pricing objectives and constraints would occur during which stage of the price-setting process?

Correct AnswerverifiedShow Answer

A custom tailor wishes to use target profit pricing to establish a price for a custom-designed business suit.Assume variable cost is $200 per suit,fixed cost is $44,000,and the target profit is $50,000 based on a volume of 50 suits.What price should be charged for a typical custom suit?

Correct AnswerverifiedShow Answer

Rent,executive salaries,and insurance are typical examples of

Correct AnswerverifiedShow Answer

What are the four kinds of discounts that are especially important in marketing pricing strategy?

Correct AnswerverifiedDiscounts are reductions from list price...View AnswerShow Answer

Pricing constraints refers to

Correct AnswerverifiedShow Answer

Trade discounts are offered to resellers in the marketing channel on the basis of where they are in the channel and

Correct AnswerverifiedShow Answer

All of the following are profit-oriented approaches to select an approximate price level except which?

Correct AnswerverifiedShow Answer

According to the textbook,Revlon cosmetics uses __________ pricing.

Correct AnswerverifiedShow Answer

The pricing approach that results in the manufacturer deliberately adjusting the composition and features of the product to achieve a calculated price for consumers is referred to as

Correct AnswerverifiedShow Answer

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Standard markup pricing entails adding a...
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Correct Answer
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Discounts are reductions from list price...
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Correct Answer
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Correct Answer
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