Question 1

pricing approach that: (1) estimates the price that ultimate consumers would be willing to pay for a product; (2) works backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers; and (3) results in the manufacturer deliberately adjusting the composition and features of the product to achieve the target price to 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 pricingF) D) and E)
G) C) and D)

Question 2

Cost-plus percentage-of-cost pricing refers to

Accepted Answer

A)   summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at the price.
B)   adding a fixed percentage to the cost of all items in a specific product class.
C)   setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors.
D)   setting the price of a product or service by adding a fixed percentage to the total unit cost.
E)   charging different prices to different buyers for goods of like grade and quality.F) All of the above
G) B) and C)

Question 3

manufacturer does marketing research and estimates that consumers will accept a manufacturer's suggested retail price of $50 for a jacket.The manufacturer expects to offer trade discount terms of 40/10/5 to retailers,wholesalers,and agents in the marketing channel.What price will the manufacturer receive for the jacket?

Accepted Answer

A)   $47.50
B)   $45.00
C)   $30.00
D)   $27.50
E)   $25.65F) A) and C)
G) A) and B)

Question 4

response to Duracell's introduction of the Duracell Ultra battery,Energizer introduced an Advanced Formula battery.But unlike Duracell,Energizer priced its batteries at a low initial price to attract the mass market.Energizer used

Accepted Answer

A)   penetration pricing.
B)   prestige pricing.
C)   skimming pricing.
D)   price lining.
E)   cost-plus fixed-fee pricing.F) A) and E)
G) All of the above

Question 5

Within the channel of distribution for certain types of imported furniture,the typical trade terms are 40/15/10.If a dining room table has a list price of $1,000,how much would the manufacturer sell the table to a jobber for?

Accepted Answer

A)   $1,000
B)   $600
C)   $510
D)   $459
E)   $400F) C) and D)
G) None of the above

Question 6

are the six major steps involved in setting prices?

Accepted Answer

The six major steps involved in setting ...

Question 7

Penetration pricing refers to

Accepted Answer

A)   charging different prices to different buyers for goods of like grade and quality.
B)   setting the highest initial price that customers really desiring the product are willing to pay.
C)   setting a low initial price on a new product to appeal immediately to the mass market.
D)   setting a market price for a product or product class based on a subjective feel for the competitors' prices or market price.
E)   setting prices a few dollars or cents under an even number.F) B) and C)
G) None of the above

Question 8

reward wholesalers and retailers for having supplies in stock at the time customers want,manufacturers offer

Accepted Answer

A)   noncumulative discounts.
B)   seasonal discounts.
C)   trade discounts.
D)   cumulative discounts.
E)   functional discounts.F) All of the above
G) D) and E)

Question 9

retail price of a mobile phone (unsubsidized) has decreased from $4,000 in 1983 when Motorola commercialized the device to less than $99 today as the volume increased from zero to millions of units sold.This is due in large part to which type of pricing approach?

Accepted Answer

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

Question 10

Bundle pricing refers to

Accepted Answer

A)   an extra amount of "free goods" awarded sellers in the channel of distribution for promoting a product.
B)   marketing two or more products in a single package price.
C)   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.
D)   setting the price of a line of products at two specific pricing points.
E)   the practice of charging two or more prices depending upon the outlet carrying the product.F) A) and D)
G) None of the above

Question 11

Manufacturers use seasonal discounts to

Accepted Answer

A)   get rid of dated merchandise.
B)   prevent retailers from purchasing competitors' products.
C)   prolong the peak seasonal selling season.
D)   establish an immediate feeling of goodwill between the buyer and seller that hopefully will continue when prices return to normal.
E)   entice dealers to purchase seasonal merchandise earlier in the selling season.F) A) and C)
G) B) and C)

Question 12

Southern gardeners normally pay $5 for a 2-cubit-foot bag of pine bark mulch that they buy at their local gardening-supply and home-improvement stores to keep the weeds down in their gardens.If the price being charged by a retailer is not within a narrow range that gardeners feel is appropriate,they will use substitutions-newspaper,grass clippings,or some other kind of ground covering.When pricing pine bark mulch,a garden-supply or home-improvement retailer should use

Accepted Answer

A)   customary pricing.
B)   at-market pricing.
C)   loss-leader pricing.
D)   penetration pricing.
E)   bundle pricing.F) A) and D)
G) B) and D)

Question 13

Geographical Pricing Map C
-pricing practices are closely scrutinized because of potential unethical or illegal actions.They include: (1) price fixing; (2) predatory pricing; (3) deceptive pricing; (4) geographical pricing; and (5) __________.

Accepted Answer

A)   price discounting
B)   lateral price fixing
C)   regional rollbacks
D)   delayed payment penalties
E)   price discriminationF) C) and D)
G) C) and E)

Question 14

Figure 14-1
-According to Figure 14-1 above,"D" represents which step in the price-setting process?

Accepted Answer

A)   estimate demand and revenue
B)   select an approximate price level
C)   scan competitors for prices of similar products or services.
D)   determine cost, volume, and profit relationships
E)   identify pricing objectives and constraintsF) B) and E)
G) B) and C)

Question 15

Figure 14-1
-According to Figure 14-1 above,"A" represents which step in the price-setting process?

Accepted Answer

A)   raise initial capital
B)   identify pricing objectives and constraints
C)   scan competitors for prices of similar products or services
D)   select the appropriate pricing formula
E)   establish the price rangeF) B) and E)
G) A) and C)

Question 16

Deceptive pricing practices are outlawed by legislation and enforced by which federal agency?

Accepted Answer

A)   Consumer Protection Agency.
B)   U.S. Department of Justice.
C)   Federal Communications Commission.
D)   U.S. Department of Commerce.
E)   Federal Trade Commission.F) A) and D)
G) B) and D)

Question 17

Vertical price fixing involves controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price.This practice is also called __________.

Accepted Answer

A)   price discrimination
B)   predatory pricing
C)   a tying arrangement
D)   resale price maintenance
E)   exclusive dealingF) All of the above
G) A) and E)

Question 18

establishing product-line pricing,the price differentials between items in the line should make sense to customers and reflect differences in terms of the

Accepted Answer

A)   perceived value of the products offered.
B)   actual costs in terms of the features offered.
C)   perceived risk.
D)   quantity discounts and price allowances offered.
E)   market segments targeted.F) None of the above
G) A) and D)

Question 19

skimming pricing policy is likely to be most effective when: (1) lowering the price has only a minor effect on increasing sales volume and reducing unit costs; (2) when the high initial price does not attract competitors; (3) customers interpret high price as signifying high quality; and (4) __________.

Accepted Answer

A)   enough customers are willing to buy immediately at the high initial price
B)   consumers tend to be price sensitive
C)   it will be easier to set measurable sales unit goals
D)   a lower price will significantly reduce unit costs
E)   consumers perceive your product to be similar to other products on the marketF) A) and C)
G) All of the above

Question 20

Standard markup pricing is considered to be a __________ approach to pricing.

Accepted Answer

A)   demand-oriented
B)   profit-oriented
C)   cost-oriented
D)   competition-oriented
E)   service-orientedF) A) and C)
G) B) and C)

Exam 14: Arriving at the Final Price

reward wholesalers and retailers for having supplies in stock at the time customers want,manufacturers offer

Correct Answer
verified

Bundle pricing refers to

Correct Answer
verified

Manufacturers use seasonal discounts to

Correct Answer
verified

Geographical Pricing Map C -pricing practices are closely scrutinized because of potential unethical or illegal actions.They include: (1) price fixing; (2) predatory pricing; (3) deceptive pricing; (4) geographical pricing; and (5) __________.

Correct Answer
verified

Deceptive pricing practices are outlawed by legislation and enforced by which federal agency?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

establishing product-line pricing,the price differentials between items in the line should make sense to customers and reflect differences in terms of the

Correct Answer
verified

retail price of a mobile phone (unsubsidized) has decreased from $4,000 in 1983 when Motorola commercialized the device to less than $99 today as the volume increased from zero to millions of units sold.This is due in large part to which type of pricing approach?

Correct Answer
verified

Figure 14-1 -According to Figure 14-1 above,"A" represents which step in the price-setting process?

Correct Answer
verified

Figure 14-1 -According to Figure 14-1 above,"D" represents which step in the price-setting process?

Correct Answer
verified

Vertical price fixing involves controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price.This practice is also called __________.

Correct Answer
verified

response to Duracell's introduction of the Duracell Ultra battery,Energizer introduced an Advanced Formula battery.But unlike Duracell,Energizer priced its batteries at a low initial price to attract the mass market.Energizer used

Correct Answer
verified

Cost-plus percentage-of-cost pricing refers to

Correct Answer
verified

Within the channel of distribution for certain types of imported furniture,the typical trade terms are 40/15/10.If a dining room table has a list price of $1,000,how much would the manufacturer sell the table to a jobber for?

Correct Answer
verified

Correct Answer
verified

Penetration pricing refers to

Correct Answer
verified

Correct Answer
verified

are the six major steps involved in setting prices?

Correct Answer
verified
The six major steps involved in setting ...
View Answer

Standard markup pricing is considered to be a __________ approach to pricing.

Correct Answer
verified

Exam 14: Arriving at the Final Price

reward wholesalers and retailers for having supplies in stock at the time customers want,manufacturers offer

Correct AnswerverifiedShow Answer

Bundle pricing refers to

Correct AnswerverifiedShow Answer

Manufacturers use seasonal discounts to

Correct AnswerverifiedShow Answer

Geographical Pricing Map C -pricing practices are closely scrutinized because of potential unethical or illegal actions.They include: (1) price fixing; (2) predatory pricing; (3) deceptive pricing; (4) geographical pricing; and (5) __________.

Correct AnswerverifiedShow Answer

Deceptive pricing practices are outlawed by legislation and enforced by which federal agency?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

establishing product-line pricing,the price differentials between items in the line should make sense to customers and reflect differences in terms of the

Correct AnswerverifiedShow Answer

retail price of a mobile phone (unsubsidized) has decreased from $4,000 in 1983 when Motorola commercialized the device to less than $99 today as the volume increased from zero to millions of units sold.This is due in large part to which type of pricing approach?

Correct AnswerverifiedShow Answer

Figure 14-1 -According to Figure 14-1 above,"A" represents which step in the price-setting process?

Correct AnswerverifiedShow Answer

Figure 14-1 -According to Figure 14-1 above,"D" represents which step in the price-setting process?

Correct AnswerverifiedShow Answer

Vertical price fixing involves controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price.This practice is also called __________.

Correct AnswerverifiedShow Answer

response to Duracell's introduction of the Duracell Ultra battery,Energizer introduced an Advanced Formula battery.But unlike Duracell,Energizer priced its batteries at a low initial price to attract the mass market.Energizer used

Correct AnswerverifiedShow Answer

Cost-plus percentage-of-cost pricing refers to

Correct AnswerverifiedShow Answer

Within the channel of distribution for certain types of imported furniture,the typical trade terms are 40/15/10.If a dining room table has a list price of $1,000,how much would the manufacturer sell the table to a jobber for?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Penetration pricing refers to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

are the six major steps involved in setting prices?

Correct AnswerverifiedThe six major steps involved in setting ...View AnswerShow Answer

Standard markup pricing is considered to be a __________ approach to pricing.

Correct AnswerverifiedShow Answer

Correct Answer
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verified
The six major steps involved in setting ...
View Answer

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