Question 1

The global status of an industry will influence a firm's pricing strategies in international markets.

Accepted Answer

A) True 
 B)False

Question 2

​You are in charge of developing profit centers for a new chain of waterside resorts.These will include restaurants,spas,and marinas.To ensure the proper use of transfer pricing within the organization,the company accountant has provided a list of relevant questions for you to answer.Which of the following questions appear(s) on her list?

Accepted Answer

A)  ​What rate should be charged by restaurant cleaning crews to mop the floors in the spas?
B)  ​Should the spas charge resort employees who use its facilities the same access fee charged to guests?
C)  ​When the restaurants rent boats for special dinners, what rental rate should be charged by the marinas?
D)  ​When resort employees eat in the restaurants, should they pay the same menu prices as guests?
E)  ​Only questions b and d appear on her list.

Question 3

_____ pricing is the pricing strategy of continuously offering low prices rather than relying on short-term price-cutting tactics such as cents-off coupons,rebates,and special sales.

Accepted Answer

A)  Minimum advertised
B)  Skimming
C)  Everyday low
D)  Competitive

Question 4

Dish Network has recently advertised a bundled package of 50 channels plus Internet for $59.99 per month but in the fine print,the advertisement notes that this offer is applicable for new subscribers only.What type of pricing policy is Dish Network using with this promotion?​

Accepted Answer

A)  ​promotional pricing
B)  ​odd pricing
C)  ​penetration pricing
D)  ​flexible pricing A

Question 5

Marketers who have adopted a product-line pricing strategy have one major advantage in that they have no difficulty making price changes on individual items.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Buyers and sellers often set purchase terms using negotiated contracts when:

Accepted Answer

A)  only one supplier offers the desired product.
B)  there are multiple interested parties.
C)  research and development work is not necessary.
D)  purchases exceed $5,000.

Question 8

A retailer wants to increase the number of customers shopping in her store.Which of the following has the greatest potential for success?

Accepted Answer

A)  Promotional pricing
B)  Price flexibility
C)  Prestige pricing
D)  Unit pricing

Question 9

Differentiate between the list price and market price of a product.

Accepted Answer

The list price of a product is the rate ...

Question 10

Match each item with the correct statement below.
-A price of $9.99 is an example of _____.

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 11

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 12

Which of the following pricing strategies tries to reduce the emphasis on price as a competitive weapon?

Accepted Answer

A)  Penetration pricing
B)  Everyday low pricing
C)  Skimming pricing
D)  Competitive pricing

Question 13

A functional discount is a payment to a channel member or a buyer for performing marketing functions.

Accepted Answer

A) True 
 B)False

Question 14

​You work in the procurement department of a large hospital.While training a new assistant,you realize that he has limited knowledge of competitive bidding,the major purchasing procedure you use.Choose the key point(s) you must convey to him.

Accepted Answer

A)  ​When we need surgical supplies, we advertise the price we want to pay in medical journals.
B)  ​Before soliciting bids for surgical supplies, we develop detailed specifications for the items we want to buy.
C)  ​After receiving bids for surgical supplies, we develop detailed specifications of the items that vendors can offer.
D)  ​It is illegal for a hospital to negotiate contracts with favored suppliers.
E)  ​It is helpful to develop accurate specifications, but this is not a key procurement task. B

Question 15

What is leader pricing? What type of retailers use this strategy?

Accepted Answer

Leader pricing is a variant of loss-leader pricing in which marketers offer prices slightly above cost to avoid violating minimum-markup regulations and earn a minimal return on promotional sales.Among the most frequent practitioners of this combination pricing/promotion strategy are supermarkets and mass merchandisers such as Walmart,Target,and Kmart.

Question 16

A private-label product priced below the lower limit can be regarded as too cheap by potential customers.

Accepted Answer

A) True 
 B)False

Question 17

A skimming pricing strategy is commonly used as a market entry price for distinctive goods and services with high initial competition.

Accepted Answer

A) True 
 B)False

Question 18

A standard worldwide pricing policy is more likely to succeed in foreign markets with high marketing costs.

Accepted Answer

A) True 
 B)False

Question 19

A low price is a sure sell because the demand for many goods is highly elastic.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following pricing approaches is best suited for a company that is expanding into the global market and will be facing rather low foreign marketing costs?

Accepted Answer

A)  Standard worldwide price
B)  Dual pricing
C)  Market-differentiated pricing
D)  Transfer pricing

Exam 19: Pricing Strategies

The global status of an industry will influence a firm's pricing strategies in international markets.

Correct Answer
verified

Correct Answer
verified

_____ pricing is the pricing strategy of continuously offering low prices rather than relying on short-term price-cutting tactics such as cents-off coupons,rebates,and special sales.

Correct Answer
verified

Dish Network has recently advertised a bundled package of 50 channels plus Internet for $59.99 per month but in the fine print,the advertisement notes that this offer is applicable for new subscribers only.What type of pricing policy is Dish Network using with this promotion?

Correct Answer
verified
A

Marketers who have adopted a product-line pricing strategy have one major advantage in that they have no difficulty making price changes on individual items.

Correct Answer
verified

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

Correct Answer
verified

Buyers and sellers often set purchase terms using negotiated contracts when:

Correct Answer
verified

A retailer wants to increase the number of customers shopping in her store.Which of the following has the greatest potential for success?

Correct Answer
verified

Differentiate between the list price and market price of a product.

Correct Answer
verified
The list price of a product is the rate ...
View Answer

Match each item with the correct statement below. -A price of $9.99 is an example of _____.

Correct Answer
verified

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 Answer
verified

Which of the following pricing strategies tries to reduce the emphasis on price as a competitive weapon?

Correct Answer
verified

A functional discount is a payment to a channel member or a buyer for performing marketing functions.

Correct Answer
verified

You work in the procurement department of a large hospital.While training a new assistant,you realize that he has limited knowledge of competitive bidding,the major purchasing procedure you use.Choose the key point(s) you must convey to him.

Correct Answer
verified
B

What is leader pricing? What type of retailers use this strategy?

A private-label product priced below the lower limit can be regarded as too cheap by potential customers.

Correct Answer
verified

A skimming pricing strategy is commonly used as a market entry price for distinctive goods and services with high initial competition.

Correct Answer
verified

A standard worldwide pricing policy is more likely to succeed in foreign markets with high marketing costs.

Correct Answer
verified

A low price is a sure sell because the demand for many goods is highly elastic.

Correct Answer
verified

Which of the following pricing approaches is best suited for a company that is expanding into the global market and will be facing rather low foreign marketing costs?

Correct Answer
verified

Exam 19: Pricing Strategies

The global status of an industry will influence a firm's pricing strategies in international markets.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

_____ pricing is the pricing strategy of continuously offering low prices rather than relying on short-term price-cutting tactics such as cents-off coupons,rebates,and special sales.

Correct AnswerverifiedShow Answer

Dish Network has recently advertised a bundled package of 50 channels plus Internet for $59.99 per month but in the fine print,the advertisement notes that this offer is applicable for new subscribers only.What type of pricing policy is Dish Network using with this promotion?​

Correct AnswerverifiedA

Marketers who have adopted a product-line pricing strategy have one major advantage in that they have no difficulty making price changes on individual items.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Buyers and sellers often set purchase terms using negotiated contracts when:

Correct AnswerverifiedShow Answer

A retailer wants to increase the number of customers shopping in her store.Which of the following has the greatest potential for success?

Correct AnswerverifiedShow Answer

Differentiate between the list price and market price of a product.

Correct AnswerverifiedThe list price of a product is the rate ...View AnswerShow Answer

Match each item with the correct statement below. -A price of $9.99 is an example of _____.

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

Which of the following pricing strategies tries to reduce the emphasis on price as a competitive weapon?

Correct AnswerverifiedShow Answer

A functional discount is a payment to a channel member or a buyer for performing marketing functions.

Correct AnswerverifiedShow Answer

​You work in the procurement department of a large hospital.While training a new assistant,you realize that he has limited knowledge of competitive bidding,the major purchasing procedure you use.Choose the key point(s) you must convey to him.

Correct AnswerverifiedB

What is leader pricing? What type of retailers use this strategy?

A private-label product priced below the lower limit can be regarded as too cheap by potential customers.

Correct AnswerverifiedShow Answer

A skimming pricing strategy is commonly used as a market entry price for distinctive goods and services with high initial competition.

Correct AnswerverifiedShow Answer

A standard worldwide pricing policy is more likely to succeed in foreign markets with high marketing costs.

Correct AnswerverifiedShow Answer

A low price is a sure sell because the demand for many goods is highly elastic.

Correct AnswerverifiedShow Answer

Which of the following pricing approaches is best suited for a company that is expanding into the global market and will be facing rather low foreign marketing costs?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Dish Network has recently advertised a bundled package of 50 channels plus Internet for $59.99 per month but in the fine print,the advertisement notes that this offer is applicable for new subscribers only.What type of pricing policy is Dish Network using with this promotion?

Correct Answer
verified
A

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The list price of a product is the rate ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

You work in the procurement department of a large hospital.While training a new assistant,you realize that he has limited knowledge of competitive bidding,the major purchasing procedure you use.Choose the key point(s) you must convey to him.

Correct Answer
verified
B

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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