Question 1

Flexible Pricing Chart
-Consider the flexible pricing chart above,which shows the results of a National Bureau of Economic Research study of 750,000 car purchases. The data indicate that some groups of car buyers,on average,paid roughly $105,$423,and $483 more,respectively,for a new car in the $21,000 range than the typical purchaser.Who are the car buyers in "C?"

Accepted Answer

A)   women
B)   the elderly
C)   Hispanics
D)   African Americans
E)   Asian AnericansF) C) and D)
G) A) and B)

Question 2

practice of charging a very low price for a product with the intent of driving competitors out of business is referred to as

Accepted Answer

A)   price fixing.
B)   predatory pricing.
C)   price discrimination.
D)   deceptive pricing.
E)   geographical pricing.F) A) and B)
G) A) and C)

Question 3

Manufacturers or and even wholesalers make geographical adjustments to list or quoted prices to reflect

Accepted Answer

A)   warehouse inventory carrying and loading costs.
B)   the cost of transportation of the products from seller to buyer.
C)   changes in price due to tariffs the Federal Trade Commission imposes on the transport of goods from the U.S.
D)   changes in price due to fuel excise taxes on inefficient diesel trucks.
E)   the need some firms have of recouping the costs of developing different versions of their products for different global markets.F) B) and C)
G) D) and E)

Question 4

Marginal analysis might take the form of such questions as,"Should we extend our hours to include Sundays?" or "What if we put more apples in the pie?" The basic principle is that

Accepted Answer

A)   as long as a marketing action breaks even, the action is worth taking.
B)   expected incremental revenues from pricing and other marketing actions must more than offset incremental costs.
C)   you "don't rock the boat" if your program is making a profit; instead, you "leave well enough alone."
D)   if you are not willing to take risks, even if the numbers tell you otherwise, your business will ultimately fail.
E)   marketing and finance are two different animals: "If it feels right in your gut … go for it."F) D) and E)
G) All of the above

Question 5

claim that a price is below a manufacturer's suggested or list price may be deceptive if

Accepted Answer

A)   the items for sale had been purchased from another retailer.
B)   the items for sale were part of a manufacturer's promotional allowance.
C)   the items were part of a bulk order.
D)   few or no sales occur at that price in a retailer's market area.
E)   the items were purchased from the manufacturer at a higher price and the sale was part of a loss-leader promotion.F) B) and E)
G) All of the above

Question 6

the terms of the trade discount are listed 20/10/5,the number "5" represents

Accepted Answer

A)   5 percent of the suggested wholesale price that is available to the retailer to cover costs and provide a profit.
B)   5 percent of the suggested retail price that is available to the jobber to cover costs and provide a profit.
C)   5 percent of the wholesale price that is available to the jobber to cover costs and provide a profit.
D)   5 percent of the suggested retail price that is available to the ultimate consumer.
E)   5 percent of the suggested retail price is the profit that is available to the manufacturer.F) All of the above
G) C) and D)

Question 7

Brazilian government wants to build a global positioning satellite (GPS) system.The satellite manufacturer will receive a mutually agreed upon profit over and above all costs associated with the project.The pricing approach the satellite manufacturer uses is called

Accepted Answer

A)   standard markup pricing.
B)   experience curve pricing.
C)   cost-plus percentage-of-cost pricing.
D)   cost-plus fixed-fee pricing.
E)   bundle pricing.F) D) and E)
G) A) and D)

Question 8

practice of charging different prices to different buyers for goods of like grade and quality is referred to as

Accepted Answer

A)   horizontal price-fixing.
B)   resale price maintenance.
C)   price discrimination.
D)   predatory pricing.
E)   bait and switch pricing.F) C) and D)
G) B) and E)

Question 9

Geographical Pricing Map B
-company in Virginia that manufactures and sells peanut brittle to retailers charges higher shipping costs for orders sent to customers living west of the Mississippi River.This Virginia company is using

Accepted Answer

A)   single-zone pricing.
B)   FOB origin pricing.
C)   freight absorption pricing.
D)   multiple-zone pricing.
E)   basing-point pricing.F) None of the above
G) A) and B)

Question 10

Price fixing is illegal per se under the

Accepted Answer

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

Question 11

Architectural firms that specialize in designing and constructing one-of-a-kind custom homes often use which price policy to set prices?

Accepted Answer

A)   cost-plus pricing
B)   experience curve pricing
C)   standard markup pricing
D)   yield management pricing
E)   price liningF) A) and B)
G) A) and C)

Question 12

Another name for freight absorption pricing is

Accepted Answer

A)   FOB factory pricing.
B)   FOB absorption pricing.
C)   FOB with freight-allowed pricing.
D)   FOB basing-point pricing.
E)   FOB origin pricing.F) A) and E)
G) A) and D)

Question 13

Penetration pricing is intended to appeal to which market?

Accepted Answer

A)   highly selective, quality-seeking consumers
B)   price-insensitive markets
C)   specialty product markets
D)   the same markets as those targeted with a skimming pricing strategy
E)   the mass marketF) A) and D)
G) C) and D)

Question 14

Explain why odd-even pricing may be successful.

Accepted Answer

Odd-even pricing presumes that...

Question 15

manufacturer using _________ is setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

Accepted Answer

A)   skimming pricing
B)   penetration pricing
C)   price lining
D)   odd-even pricing
E)   prestige pricingF) C) and D)
G) B) and E)

Question 16

While __________ often changes price based upon color or style,__________ often changes prices based on time,day,week,or season.

Accepted Answer

A)   prestige pricing; skimming pricing
B)   yield management pricing; bundle pricing
C)   price lining; yield management pricing
D)   target pricing; target return on investment pricing
E)   bundle pricing; standard markup pricingF) A) and D)
G) A) and E)

Question 17

Price lining is considered to be a __________ approach to pricing.

Accepted Answer

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

Question 18

skimming pricing policy is likely to be most effective when

Accepted Answer

A)   consumers perceive your product to be similar to other products on the market.
B)   a lower price will significantly lower fixed costs.
C)   customers interpret high price as signifying high quality.
D)   consumers tend to be price sensitive.
E)   it will be easier to set measurable sales unit goals.F) B) and E)
G) C) and D)

Question 19

Larry's Lawn Care allows customers to use a credit card for purchases.Larry pays 4 percent of the sale to the credit card company.To promote more business,Larry decides to offer a lower price to customers paying cash-that price being 3 percent less than the standard list price.Larry is giving his customers a(n)

Accepted Answer

A)   functional discount.
B)   trade-in allowance.
C)   promotional allowance.
D)   discount-for-cash.
E)   everyday low price.F) C) and D)
G) B) and D)

Question 20

Figure 14-1
-Figure 14-1 above represents the six steps in the price-setting process.Which letter represents the step where a firm would consider a one price or flexible price strategy; company,customer and competitive effects; and incremental costs and revenues?

Accepted Answer

A)   "B"
B)   "C"
C)   "D"
D)   "E"
E)   "F"F) A) and D)
G) C) and D)

Exam 14: Arriving at the Final Price

claim that a price is below a manufacturer's suggested or list price may be deceptive if

Correct Answer
verified

Figure 14-1 -Figure 14-1 above represents the six steps in the price-setting process.Which letter represents the step where a firm would consider a one price or flexible price strategy; company,customer and competitive effects; and incremental costs and revenues?

Correct Answer
verified

Price lining is considered to be a __________ approach to pricing.

Correct Answer
verified

Penetration pricing is intended to appeal to which market?

Correct Answer
verified

Another name for freight absorption pricing is

Correct Answer
verified

While often changes price based upon color or style, often changes prices based on time,day,week,or season.

Correct Answer
verified

Price fixing is illegal per se under the

Correct Answer
verified

skimming pricing policy is likely to be most effective when

Correct Answer
verified

Manufacturers or and even wholesalers make geographical adjustments to list or quoted prices to reflect

Correct Answer
verified

Geographical Pricing Map B -company in Virginia that manufactures and sells peanut brittle to retailers charges higher shipping costs for orders sent to customers living west of the Mississippi River.This Virginia company is using

Correct Answer
verified

the terms of the trade discount are listed 20/10/5,the number "5" represents

Correct Answer
verified

Correct Answer
verified

practice of charging a very low price for a product with the intent of driving competitors out of business is referred to as

Correct Answer
verified

Explain why odd-even pricing may be successful.

Correct Answer
verified
Odd-even pricing presumes that...
View Answer

Correct Answer
verified

Marginal analysis might take the form of such questions as,"Should we extend our hours to include Sundays?" or "What if we put more apples in the pie?" The basic principle is that

Correct Answer
verified

practice of charging different prices to different buyers for goods of like grade and quality is referred to as

Correct Answer
verified

manufacturer using _________ is setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

Correct Answer
verified

Architectural firms that specialize in designing and constructing one-of-a-kind custom homes often use which price policy to set prices?

Correct Answer
verified

Brazilian government wants to build a global positioning satellite (GPS) system.The satellite manufacturer will receive a mutually agreed upon profit over and above all costs associated with the project.The pricing approach the satellite manufacturer uses is called

Correct Answer
verified

Exam 14: Arriving at the Final Price

claim that a price is below a manufacturer's suggested or list price may be deceptive if

Correct AnswerverifiedShow Answer

Figure 14-1 -Figure 14-1 above represents the six steps in the price-setting process.Which letter represents the step where a firm would consider a one price or flexible price strategy; company,customer and competitive effects; and incremental costs and revenues?

Correct AnswerverifiedShow Answer

Price lining is considered to be a __________ approach to pricing.

Correct AnswerverifiedShow Answer

Penetration pricing is intended to appeal to which market?

Correct AnswerverifiedShow Answer

Another name for freight absorption pricing is

Correct AnswerverifiedShow Answer

While __________ often changes price based upon color or style,__________ often changes prices based on time,day,week,or season.

Correct AnswerverifiedShow Answer

Price fixing is illegal per se under the

Correct AnswerverifiedShow Answer

skimming pricing policy is likely to be most effective when

Correct AnswerverifiedShow Answer

Manufacturers or and even wholesalers make geographical adjustments to list or quoted prices to reflect

Correct AnswerverifiedShow Answer

Geographical Pricing Map B -company in Virginia that manufactures and sells peanut brittle to retailers charges higher shipping costs for orders sent to customers living west of the Mississippi River.This Virginia company is using

Correct AnswerverifiedShow Answer

the terms of the trade discount are listed 20/10/5,the number "5" represents

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

practice of charging a very low price for a product with the intent of driving competitors out of business is referred to as

Correct AnswerverifiedShow Answer

Explain why odd-even pricing may be successful.

Correct AnswerverifiedOdd-even pricing presumes that...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Marginal analysis might take the form of such questions as,"Should we extend our hours to include Sundays?" or "What if we put more apples in the pie?" The basic principle is that

Correct AnswerverifiedShow Answer

practice of charging different prices to different buyers for goods of like grade and quality is referred to as

Correct AnswerverifiedShow Answer

manufacturer using _________ is setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

Correct AnswerverifiedShow Answer

Architectural firms that specialize in designing and constructing one-of-a-kind custom homes often use which price policy to set prices?

Correct AnswerverifiedShow Answer

Brazilian government wants to build a global positioning satellite (GPS) system.The satellite manufacturer will receive a mutually agreed upon profit over and above all costs associated with the project.The pricing approach the satellite manufacturer uses is called

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

While often changes price based upon color or style, often changes prices based on time,day,week,or season.

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
Odd-even pricing presumes that...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified