Question 1

Flexible cost-plus global pricing allows companies to grant discounts or change prices according to shifts in the competitive environment or fluctuations in the international exchange rates.

Accepted Answer

A) True 
 B)False

Question 2

The pricing policy in which a lower-than-normal price is used as a temporary ingredient in a firm's marketing strategy is called _____.

Accepted Answer

A)  competitive bidding
B)  penetration pricing strategy
C)  list price
D)  trade discount
E)  price flexibilityF) promotional pricingG) loss leaderH) cannibalizationI) bundle pricingJ) odd pricingK) transfer priceL) profit centerM) skimming pricing strategyN) competitive pricing strategyO) pricing policyP) market priceQ) noncumulative quantity discountR) step outS) botT) cash discount

Question 3

Lysol sanitizing wipes entered the market at a low sales price and was supported by heavy couponing.As the initial trial period passed,the pricing slowly rose and the couponing became more infrequent.This activity is an example of penetration pricing.

Accepted Answer

A) True 
 B)False

Question 4

What is the importance of transfer pricing? How does it relate to an organization's profit center?

Accepted Answer

In large corporations,transfer pricing o...

Question 5

The practice of marketing merchandise at a limited number of prices is called _____ pricing.

Accepted Answer

A)   product-line
B)   odd
C)   one-price
D)   unit

Question 6

List price is the amount the consumer actually pays for a product.

Accepted Answer

A) True 
 B)False

Question 7

Responding to the weakening of their control over prices brought about by e-commerce,marketers have begun to bundle a host of additional goods and services with the tangible products they offer their customers.

Accepted Answer

A) True 
 B)False

Question 8

Compare and contrast competitive bidding and negotiated prices.

Accepted Answer

Consumer product prices are generally se...

Question 9

Exporters who adopt market-differentiated pricing seldom change the price of their products.

Accepted Answer

A) True 
 B)False

Question 10

A skimming pricing strategy is more commonly used by firms to:

Accepted Answer

A)   reduce the raised prices of products to the original level.
B)   set a market-entry price for distinctive goods or services with little or no initial competition.
C)   set a relatively low price for a product when they enter new markets characterized by dozens of competing brands.
D)   set stable wholesale prices that undercut offers competitors make to retailers.

Question 11

_____ pricing refers to a pricing strategy in which marketers offer prices slightly above cost to avoid violating minimum-markup regulations and to earn a minimal return on promotional sales.

Accepted Answer

A)   Competitive
B)   Leader
C)   Penetration
D)   Psychological

Question 12

Buyers and sellers often set purchase terms through negotiated contracts for projects that require extensive research and development.

Accepted Answer

A) True 
 B)False

Question 13

A step out is a pricing practice in which a firm:

Accepted Answer

A)   maintains a high price for a product throughout its life cycle.
B)   offers an extremely low price on a single product purchase to reach the mass market quickly and capture a large market share.
C)   markets a product at a low price compared to competitive offerings to secure market acceptance.
D)   raises the price of a product and then waits to see if others follow suit.

Question 14

A manufacturer's list price must incorporate the costs incurred by channel members in performing required marketing functions and expected profit margins for each member.

Accepted Answer

A) True 
 B)False

Question 15

Most companies set prices using competitive pricing as their primary pricing strategy.

Accepted Answer

A) True 
 B)False

Question 16

Since many firms begin penetration pricing with the intention of increasing prices in the future,success depends on generating numerous trial purchases.

Accepted Answer

A) True 
 B)False

Question 17

Discuss the relationship between price and consumer perceptions of quality.

Accepted Answer

In the absence of other cues,price has a...

Question 18

A grocery store places tags on shelves just below the products that list the product name,UPC number,a store code,and the regular price of the product.This regular price is called the market price.

Accepted Answer

A) True 
 B)False

Question 19

The use of bots to search out price quotes on specified products forces Internet marketers to:

Accepted Answer

A)   keep their prices low.
B)   install "bot-stoppers."
C)   use printer-disabling viruses.
D)   close their websites.

Question 20

A promotional allowance is an incentive offered by manufacturers to retailers to:

Accepted Answer

A)   reward a retailer for not advertising a product below a certain price.
B)   provide one-time reductions in the list price of products for purchasers of large quantities.
C)   refund the shipping costs paid by the retailer for home-delivery of products.
D)   return a certain amount spent by the retailers on advertising and providing sales support.

Exam 19: Pricing Strategies

Since many firms begin penetration pricing with the intention of increasing prices in the future,success depends on generating numerous trial purchases.

Correct AnswerverifiedShow Answer

Exporters who adopt market-differentiated pricing seldom change the price of their products.

Correct AnswerverifiedShow Answer

A skimming pricing strategy is more commonly used by firms to:

Correct AnswerverifiedShow Answer

Buyers and sellers often set purchase terms through negotiated contracts for projects that require extensive research and development.

Correct AnswerverifiedShow Answer

A step out is a pricing practice in which a firm:

Correct AnswerverifiedShow Answer

A promotional allowance is an incentive offered by manufacturers to retailers to:

Correct AnswerverifiedShow Answer

The practice of marketing merchandise at a limited number of prices is called _____ pricing.

Correct AnswerverifiedShow Answer

What is the importance of transfer pricing? How does it relate to an organization's profit center?

Correct AnswerverifiedIn large corporations,transfer pricing o...View AnswerShow Answer

Flexible cost-plus global pricing allows companies to grant discounts or change prices according to shifts in the competitive environment or fluctuations in the international exchange rates.

Correct AnswerverifiedShow Answer

Compare and contrast competitive bidding and negotiated prices.

Correct AnswerverifiedConsumer product prices are generally se...View AnswerShow Answer

Most companies set prices using competitive pricing as their primary pricing strategy.

Correct AnswerverifiedShow Answer

The pricing policy in which a lower-than-normal price is used as a temporary ingredient in a firm's marketing strategy is called _____.

Correct AnswerverifiedShow Answer

Discuss the relationship between price and consumer perceptions of quality.

Correct AnswerverifiedIn the absence of other cues,price has a...View AnswerShow Answer

List price is the amount the consumer actually pays for a product.

Correct AnswerverifiedShow Answer

Lysol sanitizing wipes entered the market at a low sales price and was supported by heavy couponing.As the initial trial period passed,the pricing slowly rose and the couponing became more infrequent.This activity is an example of penetration pricing.

Correct AnswerverifiedShow Answer

Responding to the weakening of their control over prices brought about by e-commerce,marketers have begun to bundle a host of additional goods and services with the tangible products they offer their customers.

Correct AnswerverifiedShow Answer

_____ pricing refers to a pricing strategy in which marketers offer prices slightly above cost to avoid violating minimum-markup regulations and to earn a minimal return on promotional sales.

Correct AnswerverifiedShow Answer

A manufacturer's list price must incorporate the costs incurred by channel members in performing required marketing functions and expected profit margins for each member.

Correct AnswerverifiedShow Answer

A grocery store places tags on shelves just below the products that list the product name,UPC number,a store code,and the regular price of the product.This regular price is called the market price.

Correct AnswerverifiedShow Answer

The use of bots to search out price quotes on specified products forces Internet marketers to:

Correct AnswerverifiedShow Answer

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In large corporations,transfer pricing o...
View Answer

Correct Answer
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Consumer product prices are generally se...
View Answer

Correct Answer
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Correct Answer
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In the absence of other cues,price has a...
View Answer

Correct Answer
verified

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