Question 1

Which of the following is true of establishing pricing goals?

Accepted Answer

A)   Pricing objectives are either profit oriented or sales oriented if they are to serve company objectives.
B)   Reaching the desired market share must not entail sacrificing short-term profits because every dollar counts.
C)   A profit maximization objective may require a bigger initial investment than the firm can commit to or wants to commit to.
D)   Pricing objectives rarely have trade-offs and thus managers must set them ambitiously to capture the market.E) All of the above
F) A) and B)

Question 2

Which of the following pricing strategies is subject to government regulation?

Accepted Answer

A)   Penetration pricing
B)   Status quo pricing
C)   Price skimming
D)   Price fixingE) None of the above
F) A) and C)

Question 3

Psychological pricing is marketing two or more products in a single package for a special price.

Accepted Answer

A) True 
 B)False

Question 4

For businesses,consumer penalties are part of doing business in a highly competitive marketplace.

Accepted Answer

A) True 
 B)False

Question 5

Riya saw a box of collector's edition comic books at Fournotts,a retail corporation.Each comic was priced at $28.50.A friend of hers who bought five books was required to pay only $19.99 per book.Riya bought just one book and received no discount.Fournotts' revenue from Riya's and her friend's combined purchases was _____.

Accepted Answer

A)   $158.51
B)   $19.99
C)   $28.50
D)   $128.45E) A) and D)
F) A) and C)

Question 6

Unlike niche-oriented shopping bots,broad-based shopping bots

Accepted Answer

A)   give pricing power to the retailers.
B)   search for prices for only one type of product.
C)   are programs that search websites which are based on a Yellow Pages type of model.
D)   search sites like SeatGeek and Kayak.E) A) and B)
F) A) and C)

Question 7

A basic,long-term pricing framework that establishes the initial price for a product and the intended direction for price movements over the product life cycle is called ___________.

Accepted Answer

A)   strategic management
B)   a price strategy
C)   a promotional strategy
D)   advertising strategyE) B) and D)
F) None of the above

Question 8

Shopping bots allow sellers to collect detailed data about customers' buying habits,preferences,and even spending limits.

Accepted Answer

A) True 
 B)False

Question 9

Consumers are more likely to perceive the value of a product to be less than its price tag says if the product's

Accepted Answer

A)   price is set too high in their minds.
B)   manufacturer gains very little profit from the product.
C)   demand is inelastic.
D)   demand and supply attain the state of price equilibrium.E) A) and B)
F) A) and C)

Question 10

Diffusion Research Company specializes in conducting market research for various firms.When it receives a new research proposal,its management first estimates the cost of conducting the research and delivering the final research report.The management then attempts to reduce the costs through efficient operations.In this scenario,Diffusion Research Company has a _____ pricing objective.

Accepted Answer

A)   cash maximization
B)   status quo
C)   sales-oriented
D)   profit-orientedE) A) and D)
F) None of the above

Question 11

The big advantage of price skimming is that it typically discourages or blocks competition from entering a market.

Accepted Answer

A) True 
 B)False

Question 12

Among the following,that which is given up in an exchange to acquire a good or service is known as ______.

Accepted Answer

A)   price
B)   cost
C)   margin
D)   profitE) A) and D)
F) None of the above

Question 13

A company's product sales as a percentage of total sales for that industry are known as __________.

Accepted Answer

A)   market share
B)   revenue
C)   return on investment
D)   profitE) None of the above
F) A) and D)

Question 14

For convenience,pricing objectives can be divided into three categories:

Accepted Answer

A)   refundable,competitive,and attainable.
B)   perceived,actual,and situational.
C)   differentiated,niche,and undifferentiated.
D)   profit oriented,sales oriented,and status quo.E) A) and C)
F) A) and B)

Question 15

The assertion,"price is that which is given up to get a good or service" indicates which of the following effects of price?

Accepted Answer

A)   The sacrifice effect of price
B)   The information effect of price
C)   The perceived satisfaction effect of price
D)   The quality effect of priceE) None of the above
F) A) and D)

Question 16

Predatory pricing is illegal under the Robinson-Patman Act of 1936.

Accepted Answer

A) True 
 B)False

Question 17

_____ is a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities.

Accepted Answer

A)   One-part pricing
B)   Price lining
C)   Flexible pricing
D)   Price skimmingE) B) and D)
F) None of the above

Question 18

Which of the following is true of Internet auctions?

Accepted Answer

A)   Business-to-business auctions are likely to fade away in the future.
B)   The seller in a reverse auction sells his products or services to the highest bidder.
C)   The eBay site is the most popular auction site,with more than 100 million buyers and sellers.
D)   Consumers do not trust Internet auctions and how they work.E) A) and C)
F) A) and B)

Question 19

A cash refund given for the purchase of a product during a specific period is called

Accepted Answer

A)   cash discount.
B)   quantity discount.
C)   functional discount.
D)   rebate.E) None of the above
F) B) and D)

Question 20

Which of the following is the first step in the four-step process of setting the right price of a product?

Accepted Answer

A)   Estimate demand,costs,and profits.
B)   Establish pricing goals.
C)   Choose a price strategy to help determine a base price.
D)   Fine-tune the base price with pricing tactics.E) None of the above
F) A) and B)

Exam 19: Pricing Concepts

The big advantage of price skimming is that it typically discourages or blocks competition from entering a market.

Correct Answer
verified

Which of the following pricing strategies is subject to government regulation?

Correct Answer
verified

Which of the following is the first step in the four-step process of setting the right price of a product?

Correct Answer
verified

_____ is a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities.

Correct Answer
verified

For convenience,pricing objectives can be divided into three categories:

Correct Answer
verified

A basic,long-term pricing framework that establishes the initial price for a product and the intended direction for price movements over the product life cycle is called ___________.

Correct Answer
verified

Correct Answer
verified

A cash refund given for the purchase of a product during a specific period is called

Correct Answer
verified

For businesses,consumer penalties are part of doing business in a highly competitive marketplace.

Correct Answer
verified

Unlike niche-oriented shopping bots,broad-based shopping bots

Correct Answer
verified

Psychological pricing is marketing two or more products in a single package for a special price.

Correct Answer
verified

Predatory pricing is illegal under the Robinson-Patman Act of 1936.

Correct Answer
verified

Consumers are more likely to perceive the value of a product to be less than its price tag says if the product's

Correct Answer
verified

A company's product sales as a percentage of total sales for that industry are known as __________.

Correct Answer
verified

Shopping bots allow sellers to collect detailed data about customers' buying habits,preferences,and even spending limits.

Correct Answer
verified

Which of the following is true of establishing pricing goals?

Correct Answer
verified

Which of the following is true of Internet auctions?

Correct Answer
verified

The assertion,"price is that which is given up to get a good or service" indicates which of the following effects of price?

Correct Answer
verified

Among the following,that which is given up in an exchange to acquire a good or service is known as ______.

Correct Answer
verified

Correct Answer
verified

Exam 19: Pricing Concepts

The big advantage of price skimming is that it typically discourages or blocks competition from entering a market.

Correct AnswerverifiedShow Answer

Which of the following pricing strategies is subject to government regulation?

Correct AnswerverifiedShow Answer

Which of the following is the first step in the four-step process of setting the right price of a product?

Correct AnswerverifiedShow Answer

_____ is a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities.

Correct AnswerverifiedShow Answer

For convenience,pricing objectives can be divided into three categories:

Correct AnswerverifiedShow Answer

A basic,long-term pricing framework that establishes the initial price for a product and the intended direction for price movements over the product life cycle is called ___________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A cash refund given for the purchase of a product during a specific period is called

Correct AnswerverifiedShow Answer

For businesses,consumer penalties are part of doing business in a highly competitive marketplace.

Correct AnswerverifiedShow Answer

Unlike niche-oriented shopping bots,broad-based shopping bots

Correct AnswerverifiedShow Answer

Psychological pricing is marketing two or more products in a single package for a special price.

Correct AnswerverifiedShow Answer

Predatory pricing is illegal under the Robinson-Patman Act of 1936.

Correct AnswerverifiedShow Answer

Consumers are more likely to perceive the value of a product to be less than its price tag says if the product's

Correct AnswerverifiedShow Answer

A company's product sales as a percentage of total sales for that industry are known as __________.

Correct AnswerverifiedShow Answer

Shopping bots allow sellers to collect detailed data about customers' buying habits,preferences,and even spending limits.

Correct AnswerverifiedShow Answer

Which of the following is true of establishing pricing goals?

Correct AnswerverifiedShow Answer

Which of the following is true of Internet auctions?

Correct AnswerverifiedShow Answer

The assertion,"price is that which is given up to get a good or service" indicates which of the following effects of price?

Correct AnswerverifiedShow Answer

Among the following,that which is given up in an exchange to acquire a good or service is known as ______.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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