Question 1

Which of the following is a competition-oriented approach to pricing?

Accepted Answer

A)   skimming pricing
B)   target pricing
C)   loss-leader pricing
D)   target return-on-sales pricing
E)   standard markup pricingF) A) and E)
G) A) and D)

Question 2

Discounts that apply to the accumulation of purchases of a product over a given time period,such as a year,are referred to as

Accepted Answer

A)   promotional allowances.
B)   cumulative quantity discounts.
C)   cash discounts.
D)   functional discounts.
E)   noncumulative quantity discounts.F) A) and E)
G) A) and B)

Question 3

According to Vizio,"The whole goal is to ensure that we have the right product,at the right time and the right price and __________."

Accepted Answer

A)   forever rid the world of plugs and wires
B)   create customer value that is unmatched in the industry
C)   deliver it to the right people
D)   at the right place
E)   drive a seamless end-to-end value chainF) C) and D)
G) A) and D)

Question 4

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

Accepted Answer

A)   the size of the order.
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 marketing activities they are expected to perform in the future.F) A) and B)
G) C) and D)

Question 5

is the difference between noncumulative and cumulative quantity discounts?

Accepted Answer

Noncumulative quantity discounts are bas...

Question 6

Toro Ad
-is it called when a manufacturer offers discounts to resellers in the marketing channel on the basis of where they are in the channel?

Accepted Answer

A)   seasonal discounts
B)   trade discounts
C)   cash discounts
D)   promotional allowances
E)   trade-in allowancesF) B) and D)
G) None of the above

Question 7

Figure 14-8
-Consider Figure 14-8 above."A" represents which of the following legislative acts?

Accepted Answer

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

Question 8

trade-in allowance refers to

Accepted Answer

A)   a noncash exchange of one product for another of equal or greater value.
B)   a cash-back payment when a more expensive item is replaced with a less expensive item.
C)   a price reduction given when a used product is part of the payment on a new product.
D)   the return of money based on proof of purchase.
E)   a cash payment to a retailer for extra in-store support or special featuring of the brand.F) C) and D)
G) A) and C)

Question 9

manufacturer of a new kind of fat-free ice cream that has the consistency and taste of regular ice cream is thinking of using a penetration pricing strategy for its new product.Which of the following conditions would argue AGAINST using a penetration pricing strategy for the tasty fat-free ice cream?

Accepted Answer

A)   The ice cream market is highly conservative.
B)   Economies of scale in production would be substantial.
C)   Retailers are not willing to carry new brands of ice cream in the already overcrowded category.
D)   Once the initial price is set, it is nearly impossible to lower the price without alienating early buyers.
E)   The ice cream market exhibits inelastic demand over a fairly broad range of prices.F) B) and C)
G) C) and D)

Question 10

retail price of a fax machine has decreased from more than $10,000 in the early 1970s to less than $100 today.This is due in large part to

Accepted Answer

A)   skimming pricing.
B)   prestige pricing.
C)   odd-even pricing.
D)   experience curve pricing.
E)   customary pricing.F) A) and B)
G) C) and D)

Question 11

a cost-oriented pricing strategy,a price setter stress the __________ side of the pricing problem and the price is set by looking at _________.

Accepted Answer

A)   demand; revenue
B)   production and marketing; profit
C)   demand; target sales
D)   cost; production and marketing costs
E)   cost; consumer demandF) A) and B)
G) A) and C)

Question 12

Setting an annual target of a specific dollar volume of profit is referred to as __________.

Accepted Answer

A)   target profit pricing
B)   target return-on-investment pricing
C)   loss leader pricing
D)   at-, above-, or below-market pricing
E)   yield management pricingF) A) and E)
G) A) and C)

Question 13

Product-line pricing refers to

Accepted Answer

A)   setting the price of a line of products at a number of different specific pricing points.
B)   deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well.
C)   adding a fixed percentage to the cost of all items in a specific product class.
D)   setting of prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item.
E)   the marketing of two or more products in a single package.F) A) and B)
G) All of the above

Question 14

explained in "Going Online" box,the Federal Trade Commission (FTC) is especially concerned about the

Accepted Answer

A)   overuse of FOB origin pricing.
B)   misuse of quantity discounting.
C)   elimination of seasonal discounts.
D)   children under 18 making online purchases.
E)   misuse of the word "free" in promotions.F) A) and D)
G) B) and D)

Question 15

Vizio,Inc.is an up-and-coming contender in the __________ market.

Accepted Answer

A)   designer eyewear
B)   virtual media
C)   HDTV
D)   3D video game
E)   exotic travelF) A) and C)
G) A) and B)

Question 16

of the following are profit-oriented approaches to selecting an approximate price level EXCEPT:

Accepted Answer

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

Question 17

or more competitors explicitly or implicitly setting prices is referred to as __________.

Accepted Answer

A)   competitive collusion
B)   vertical price fixing
C)   horizontal price fixing
D)   lateral price fixing
E)   price cooperationF) B) and E)
G) A) and B)

Question 18

Figure 14-6
-Figure 14-6 above shows the three types of special adjustments to list or quoted price."A" represents

Accepted Answer

A)   demand-oriented price adjustments.
B)   allowances.
C)   geographical adjustments.
D)   discounts.
E)   customary pricing adjustments.F) A) and E)
G) A) and B)

Question 19

Figure 14-6
-Figure 14-6 above shows the three types of special adjustments to list or quoted price."C" represents

Accepted Answer

A)   demand-oriented price adjustments.
B)   allowances.
C)   discounts.
D)   customary pricing adjustments.
E)   geographical adjustments.F) A) and E)
G) None of the above

Question 20

Instead of everyday low prices (EDLP) ,supermarkets prefer a __________ approach,which is based on frequent specials where prices are temporarily lowered for a brief period of time and then raised again.

Accepted Answer

A)   odd-even pricing
B)   a one-price policy
C)   hi-lo pricing
D)   bundle-pricing
E)   flexible-pricingF) All of the above
G) A) and B)

Exam 14: Arriving at the Final Price

retail price of a fax machine has decreased from more than $10,000 in the early 1970s to less than $100 today.This is due in large part to

Correct Answer
verified

a cost-oriented pricing strategy,a price setter stress the __ side of the pricing problem and the price is set by looking at _.

Correct Answer
verified

Setting an annual target of a specific dollar volume of profit is referred to as __________.

Correct Answer
verified

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

Correct Answer
verified

Figure 14-8 -Consider Figure 14-8 above."A" represents which of the following legislative acts?

Correct Answer
verified

According to Vizio,"The whole goal is to ensure that we have the right product,at the right time and the right price and __________."

Correct Answer
verified

Figure 14-6 -Figure 14-6 above shows the three types of special adjustments to list or quoted price."C" represents

Correct Answer
verified

Figure 14-6 -Figure 14-6 above shows the three types of special adjustments to list or quoted price."A" represents

Correct Answer
verified

trade-in allowance refers to

Correct Answer
verified

of the following are profit-oriented approaches to selecting an approximate price level EXCEPT:

Correct Answer
verified

Toro Ad -is it called when a manufacturer offers discounts to resellers in the marketing channel on the basis of where they are in the channel?

Correct Answer
verified

Correct Answer
verified

Which of the following is a competition-oriented approach to pricing?

Correct Answer
verified

or more competitors explicitly or implicitly setting prices is referred to as __________.

Correct Answer
verified

Instead of everyday low prices (EDLP) ,supermarkets prefer a __________ approach,which is based on frequent specials where prices are temporarily lowered for a brief period of time and then raised again.

Correct Answer
verified

Discounts that apply to the accumulation of purchases of a product over a given time period,such as a year,are referred to as

Correct Answer
verified

explained in "Going Online" box,the Federal Trade Commission (FTC) is especially concerned about the

Correct Answer
verified

Product-line pricing refers to

Correct Answer
verified

is the difference between noncumulative and cumulative quantity discounts?

Correct Answer
verified
Noncumulative quantity discounts are bas...
View Answer

Vizio,Inc.is an up-and-coming contender in the __________ market.

Correct Answer
verified

Exam 14: Arriving at the Final Price

retail price of a fax machine has decreased from more than $10,000 in the early 1970s to less than $100 today.This is due in large part to

Correct AnswerverifiedShow Answer

a cost-oriented pricing strategy,a price setter stress the __________ side of the pricing problem and the price is set by looking at _________.

Correct AnswerverifiedShow Answer

Setting an annual target of a specific dollar volume of profit is referred to as __________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 14-8 -Consider Figure 14-8 above."A" represents which of the following legislative acts?

Correct AnswerverifiedShow Answer

According to Vizio,"The whole goal is to ensure that we have the right product,at the right time and the right price and __________."

Correct AnswerverifiedShow Answer

Figure 14-6 -Figure 14-6 above shows the three types of special adjustments to list or quoted price."C" represents

Correct AnswerverifiedShow Answer

Figure 14-6 -Figure 14-6 above shows the three types of special adjustments to list or quoted price."A" represents

Correct AnswerverifiedShow Answer

trade-in allowance refers to

Correct AnswerverifiedShow Answer

of the following are profit-oriented approaches to selecting an approximate price level EXCEPT:

Correct AnswerverifiedShow Answer

Toro Ad -is it called when a manufacturer offers discounts to resellers in the marketing channel on the basis of where they are in the channel?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a competition-oriented approach to pricing?

Correct AnswerverifiedShow Answer

or more competitors explicitly or implicitly setting prices is referred to as __________.

Correct AnswerverifiedShow Answer

Instead of everyday low prices (EDLP) ,supermarkets prefer a __________ approach,which is based on frequent specials where prices are temporarily lowered for a brief period of time and then raised again.

Correct AnswerverifiedShow Answer

Discounts that apply to the accumulation of purchases of a product over a given time period,such as a year,are referred to as

Correct AnswerverifiedShow Answer

explained in "Going Online" box,the Federal Trade Commission (FTC) is especially concerned about the

Correct AnswerverifiedShow Answer

Product-line pricing refers to

Correct AnswerverifiedShow Answer

is the difference between noncumulative and cumulative quantity discounts?

Correct AnswerverifiedNoncumulative quantity discounts are bas...View AnswerShow Answer

Vizio,Inc.is an up-and-coming contender in the __________ market.

Correct AnswerverifiedShow Answer

Correct Answer
verified

a cost-oriented pricing strategy,a price setter stress the __ side of the pricing problem and the price is set by looking at _.

Correct Answer
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Noncumulative quantity discounts are bas...
View Answer

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