Filters
Question type
Study Flashcards

Family Dollar Stores, like Dollar Value Stores and 99¢ Only Stores, use what type of pricing policy?


A) dynamic pricing
B) customary pricing
C) flexible pricing
D) fixed-price
E) at-market pricing

F) A) and B)
G) A) and C)

Correct Answer

verifed

verified

A manufacturer of a digital video recorder (DVR) is thinking of using a skimming pricing strategy for its new product. Which of the following conditions would argue against using a skimming pricing strategy for the DVR?


A) large potential market, even at a high price
B) technological problems still exist for competitors
C) increasing volume reduces production costs substantially
D) consumers perceive a price-quality relationship
E) consumers are innovators

F) D) and E)
G) C) and D)

Correct Answer

verifed

verified

Which of the following statements regarding odd-even pricing is most accurate?


A) Odd-even pricing is designed to give the consumer a better set of pricing alternatives.
B) Odd-even pricing can be used in conjunction with a skimming pricing strategy, but should not be used with a penetration pricing strategy.
C) Odd-even pricing does not work if the product is health care-related.
D) Overuse of odd-ending prices tends to mute its effect on demand.
E) Odd-ending prices are best used with large ticket items; it loses its effectiveness with moderate- to low-ticket items.

F) B) and D)
G) A) and B)

Correct Answer

verifed

verified

A conspiracy among firms to set prices for a product is referred to as


A) price discrimination.
B) price fixing.
C) predatory pricing.
D) tying arrangements.
E) exclusive dealing.

F) A) and D)
G) D) and E)

Correct Answer

verifed

verified

Target return-on-investment (ROI) is frequently used by


A) contractors.
B) public utilities.
C) business-to-business markets.
D) supermarkets.
E) small privately owned firms.

F) B) and E)
G) C) and E)

Correct Answer

verifed

verified

In response to Duracell's introduction of the Duracell Ultra battery, Energizer introduced an Advanced Formula battery. But unlike Duracell, Energizer priced its battery at a low initial price to attract the mass market. Was Energizer's pricing strategy to take market share from Duracell a success?


A) No, because consumers are price-insensitive when it comes to batteries.
B) Yes, because of the positive association with the "Energizer Bunny" marketing campaign.
C) No, because consumers were unable to perceive the improved quality due to the low price.
D) Yes, because consumers typically respond positively to cost-plus pricing.
E) Yes, because the demand for batteries has unitary elasticity.

F) A) and B)
G) A) and C)

Correct Answer

verifed

verified

Dynamic pricing policy refers to


A) setting the price of a line of products at a number of different specific pricing points.
B) setting the 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.
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 different prices for products and services in real time in response to supply and demand conditions.
E) adding a fixed percentage to the cost of all items in a specific product class.

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

Correct Answer

verifed

verified

There are four common approaches to selecting an approximate price level. List and provide a brief description for each one.

Correct Answer

verifed

verified

Four common approaches to helping find t...

View Answer

The practice of replacing promotional allowances with lower manufacturer list prices is referred to as


A) everyday low pricing.
B) everyday fair pricing.
C) trade-in allowances.
D) markdown pricing.
E) everyday value pricing.

F) A) and E)
G) A) and D)

Correct Answer

verifed

verified

In 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. In this case, Energizer used


A) penetration pricing.
B) prestige pricing.
C) skimming pricing.
D) price lining.
E) cost-plus fixed-fee pricing.

F) B) and C)
G) B) and E)

Correct Answer

verifed

verified

Experience curve pricing refers to


A) the method of pricing where the price of a product often rises following the expansion of costs associated with the firm's producing and selling an increased volume of the product.
B) the point at which profits double, then double again, as more consumers buy the product.
C) a predictive pricing plan based upon the knowledge that the prices will fluctuate in a predictable pattern within a given industry based on the diffusion of innovation.
D) a method of pricing based on the learning effect, which holds that the unit cost of many products and services declines by 10 percent to 30 percent each time a firm's experience at producing and selling them doubles.
E) a pricing strategy that uses price estimates based upon the consensus of the salesforce and the firm's top management team.

F) B) and E)
G) All of the above

Correct Answer

verifed

verified

A __________ approach often changes prices based on time, day, week, or season.


A) skimming pricing
B) bundle pricing
C) yield management pricing
D) target return on investment pricing
E) standard markup pricing

F) A) and D)
G) A) and B)

Correct Answer

verifed

verified

Mike Morgan, a sales representative for a major food service distributor of Betty Crocker's Warm Delights, wanted to encourage repeat purchases by his grocery customers-supermarkets, mass merchandisers, etc. To accomplish this objective, Morgan offered the following discounts to his customers: a 10 percent discount for buying 1 to 49 cases of Warm Delights within a calendar month. The discount increases to 12 percent if 50 to 99 cases of Warm Delights are purchased and to 15 percent if 100 or more cases of Warm Delights are purchased within the same calendar month. What type of discount was Morgan offering his customers?


A) a seasonal discount
B) a quantity discount
C) a cash discount
D) a trade discount
E) a case allowance discount

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

Correct Answer

verifed

verified

Give an example of yield management pricing and explain why it is used.

Correct Answer

verifed

verified

Yield management pricing is charging dif...

View Answer

What are three special adjustments to the list or quoted price?

Correct Answer

verifed

verified

Three special adjustments to t...

View Answer

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


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

F) A) and B)
G) B) and C)

Correct Answer

verifed

verified

Setting a market price for a product or product class based on a subjective feel for the competitors' price or market price as the benchmark is referred to as


A) customary pricing.
B) above-, at-, or below-market pricing.
C) standard markup pricing.
D) competitive margin pricing.
E) experience curve pricing.

F) B) and D)
G) C) and D)

Correct Answer

verifed

verified

Delta Air Lines offers vacation packages that include airfare, car rental, and lodging. Delta Air is using a(n) __________ pricing strategy.


A) penetration
B) prestige
C) bundle
D) odd-even
E) standard markup

F) A) and C)
G) A) and D)

Correct Answer

verifed

verified

A penetration pricing policy is most likely to be effective when


A) lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost.
B) many segments of the market are price-sensitive.
C) the high initial price will not attract competitors.
D) customers interpret the high price as signifying high quality.
E) enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable.

F) A) and C)
G) A) and E)

Correct Answer

verifed

verified

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) a functional discount.
B) a trade-in allowance.
C) a promotional allowance.
D) a cash discount.
E) an everyday low price.

F) A) and E)
G) D) and E)

Correct Answer

verifed

verified

Showing 81 - 100 of 358

Related Exams

Exam 1

Creating Customer Relationships and Value Through Marketing

240 Questions

Exam 2

Developing Successful Organizational and Marketing Strategies

356 Questions

Exam 3

Scanning the Marketing Environment

234 Questions

Exam 4

Ethical and Social Responsibility for Sustainable Marketing

214 Questions

Exam 5

Understanding Consumer Behavior

381 Questions

Exam 6

Understanding Organizations As Customers

236 Questions

Exam 7

Understanding and Reaching Global Consumers and Markets

261 Questions

Exam 8

Marketing Research: From Customer Insights to Actions

278 Questions

Exam 9

Market Segmentation Targeting and Positioning

216 Questions

Exam 10

Developing New Products and Services

298 Questions

Exam 11

Managing Successful Products Services and Brands

390 Questions

Exam 12

Services Marketing

234 Questions

Exam 13

Building the Price Foundation

242 Questions

Exam 15

Managing Marketing Channels and Supply Chains

331 Questions

Exam 16

Retailing and Wholesaling

390 Questions

Exam 17

Integrated Marketing Communications and Direct Marketing

316 Questions

Exam 18

Advertising Sales Promotion and Public Relations

386 Questions

Exam 19

Using Social Media and Mobile Marketing to Connect With Consumers

142 Questions

Exam 20

Personal Selling and Sales Management

333 Questions

Exam 21

Implementing Interactive and Multichannel Marketing

250 Questions

Exam 22

Pulling It All Together: the Strategic Marketing Process

232 Questions

Exam 23

Financial Aspects of Marketing

25 Questions

Exam 24

Building an Effective Marketing Plan

100 Questions

Show Answer