ch 14 mkt pricing ii part iii

Question 1

Setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors is referred to as
A) cost-plus pricing.
B) customary pricing.
C) standard markup pricing.
D) loss-leader pricing.
E) target profit pricing

Answer 1

B) customary pricing.

Question 2

Consumers buy water and soda from vending machines. Usually the price of each of these products is about $1.50. If a marketer charges a significantly higher price for such products dispensed by vending machines, such as $2.50 per item, sales are likely to decline. Thus, marketers tend to be very consistent in the prices they charge for vending machine products. This is an example of marketers employing a \_\_\_\_\_\_\_\_ strategy.
A) below-market pricing
B) skimming pricing
C) penetration pricing
D) loss-leader pricing
E) customary pricing

Answer 2

E) customary pricing

Question 3

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.

Answer 3

B) above-, at-, or below-market pricing.

Question 4

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, is referred to as
A) loss-leader pricing.
B) bundle pricing.
C) magnet pricing.
D) predatory pricing.
E) below-market pricing.

Answer 4

A) loss-leader pricing.

Question 5

When Kroger, a national supermarket chain, uses a special promotion to price a six-pack of soda at $2.09 (which is below its customary price level of $4.29), it is attempting to
A) drive its competition out of business.
B) attract customers in hopes they will buy other products as well.
C) fill its parking lot so its store will look successful.
D) work with the local bottler to move products that are close to their expiration dates.
E) help stimulate the local economy and generate good will with its customers.

Answer 5

B) attract customers in hopes they will buy other products as well.

Question 6

Setting one price for all buyers of a product or service is referred to as
A) customary pricing.
B) a fixed-price policy.
C) a dynamic pricing policy.
D) standard markup pricing.
E) uniform pricing.

Answer 6

B) a fixed-price policy.

Question 7

Another name for a fixed-price policy is
A) customary pricing.
B) a one-price policy.
C) dynamic pricing.
D) standard markup pricing.
E) uniform pricing.

Answer 7

B) a one-price policy.

Question 8

When you buy a used car from a CarMax dealership, you are offered the car at a "no haggle" price. You can buy it or not, but there is no negotiating the published price because of the seller's
A) customary pricing strategy.
B) fixed-price policy.
C) uniform pricing policy.
D) dynamic pricing policy.
E) dynamic pricing strategy.

Answer 8

B) fixed-price policy.

Question 9

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

Answer 9

D) fixed-price

Question 10

Setting different prices for products and services in real time in response to supply and demand conditions is referred to as
A) price lining.
B) a dynamic pricing policy.
C) customary pricing.
D) price fixing.
E) discretionary pricing.

Answer 10

B) a dynamic pricing policy.

Question 11

The three major types of special adjustments to list or quoted price are
A) demand-oriented, cost-oriented, and profit-oriented adjustments.
B) one price, flexible price, and discounts.
C) discounts, allowances, and marginal adjustments.
D) discounts, allowances, and geographical adjustments.
E) discounts, incremental costs and revenues, and geographical adjustments.v

Answer 11

D) discounts, allowances, and geographical adjustments.

Question 12

The four types of discounts are
A) quantity, trade-in, promotional, and cash.
B) quantity, seasonal, trade (functional), and cash.
C) quantity, seasonal, promotional, and FOB.
D) cash, trade (functional), seasonal, and promotional.
E) trade-in, promotional, geographic, and functional.

Answer 12

B) quantity, seasonal, trade (functional), and cash.