Question 1

three major types of special adjustments to list or quoted price are

Accepted Answer

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.F) All of the above
G) B) and D)

Question 2

Selecting one or more geographical locations from which the list price for products plus freight expenses are charged to the buyer is referred to as __________.

Accepted Answer

A)   FOB origin pricing
B)   basing-point pricing
C)   single-zone pricing
D)   multiple-zone pricing
E)   freight absorption pricingF) B) and D)
G) C) and D)

Question 3

Biltmore owns dozens of very successful print shops throughout the Midwest.Biltmore's shops specialize in low-cost black-and-white copies and feature user-friendly machines consumers can easily operate.In recent months,Biltmore has noticed many more competitors in the areas where his stores are located.In an attempt to eliminate the competition,Biltmore has decided to charge a very low price for his black-and-white copies,a price so low his competitors will be forced out of business.After the competition has been driven out,Biltmore plans to raise the price of his copies.Biltmore is planning to engage in the illegal and unethical practice of

Accepted Answer

A)   price fixing.
B)   price inflation.
C)   deceptive pricing.
D)   competitive pricing.
E)   predatory pricing.F) B) and C)
G) B) and D)

Question 4

some cases,penetration pricing may follow skimming pricing.The skimming pricing would help __________ and the penetration pricing would help__________.

Accepted Answer

A)   increase market share; attract price-insensitive customers
B)   attract price sensitive customers; increase market share
C)   recoup initial research and development costs; increase market share
D)   recoup initial research and development costs; maintain market share
E)   increase market share; attract price insensitive customersF) A) and B)
G) D) and E)

Question 5

Which of the following statements regarding price cutting is most accurate?

Accepted Answer

A)   Marketers should only consider price cutting if primary demand for a product class will remain stable.
B)   Marketers should only consider price cutting if the price cut can be made across all items in a product line and all product lines in a product mix.
C)   Marketers should only consider price cutting if the price cut is confined to customers within specific target market segments.
D)   Marketers should only consider price cutting if the firm also increases advertising.
E)   Marketers should never consider price cutting unless a product is in the introductory stage of its product life cycle.F) C) and D)
G) None of the above

Question 6

price reduction given when a used product is part of the payment on a new product is referred to as a __________.

Accepted Answer

A)   cash discount
B)   seasonal discount
C)   trade-in allowance
D)   promotional allowance
E)   subsidy discountF) A) and C)
G) D) and E)

Question 7

Central Ice Machine Company is located in Omaha,Nebraska and sells Frick,Sullair,York,and Fes Fuller ammonia refrigeration parts.The company ships these parts using FOB origin pricing.Which of the following statements about the shipment of a Frick reciprocating compressor is true?

Accepted Answer

A)   Central Ice Machine will pay all shipping costs.
B)   Central Ice Machine splits the shipping costs with its customers no matter where the compressor is shipped.
C)   It will cost Central Ice Machine more to ship to Charlotte, North Carolina than to Topeka, Kansas.
D)   A buyer in Albany, New York, will pay significantly more shipping charges than a buyer in Lincoln, Nebraska.
E)   All buyers will pay the same shipping costs, regardless of the destination.F) A) and C)
G) C) and E)

Question 8

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

Accepted Answer

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

Question 9

Geographical Pricing Map C
-Which of the following statements about the legal and regulatory aspect of pricing is most accurate?

Accepted Answer

A)   The Robinson-Patman Act deals with predatory pricing.
B)   The Consumer Goods Pricing Act is the only federal legislation that deals directly with pricing issues.
C)   The Sherman Act deals only with vertical price fixing.
D)   The Federal Trade Commission Act deals with predatory pricing, deceptive pricing, and geographical pricing issues.
E)   The Consumer Goods Pricing Act and the Robinson-Patman Act deal with price discrimination.F) A) and B)
G) B) and D)

Question 10

are the five most common deceptive pricing practices? Give an example of each one.

Accepted Answer

The five most common deceptive pricing p...

Question 11

key to setting a final price for a product is finding an approximate price level to use as a reasonable starting point.Four common approaches to selecting an approximate price level are: (1) demand-oriented; (2) cost-oriented; (3) __________; and (4) competition-oriented approaches.

Accepted Answer

A)   stakeholder-oriented
B)   revenue-oriented
C)   profit-oriented
D)   distribution-oriented
E)   cause-orientedF) All of the above
G) A) and D)

Question 12

penetration pricing policy is MOST LIKELY to be effective when

Accepted Answer

A)   lowering the price has only a minor effect on increasing sales volume and reducing unit costs.
B)   many segments of the market are price sensitive.
C)   the high initial prices do not attract competitors.
D)   customers interpret high price as signifying high quality.
E)   customers are willing to buy immediately at the high initial price.F) A) and E)
G) B) and D)

Question 13

the cash discount terms for a $500 purchase are 4/10 net 30,the number 4 refers to

Accepted Answer

A)   the percentage markup on the product.
B)   the percentage discount if the bill is paid within 10 days.
C)   the percentage increase in price if the bill is not paid within 10 days.
D)   the discount in dollars per unit if the order is paid on time in 30 days.
E)   the penalty in dollars if the bill is not paid within 10 days.F) B) and E)
G) B) and D)

Question 14

Setting the price of a product or service by adding a fixed percentage to the total unit cost is referred to as

Accepted Answer

A)   cost-plus fixed-fee pricing.
B)   demand backward pricing.
C)   cost-plus percentage-of-cost pricing.
D)   experience curve pricing.
E)   target return on investment pricing.F) C) and E)
G) B) and C)

Question 15

North America's fastest-growing HDTV and consumer electronics company is

Accepted Answer

A)   Samsung.
B)   Philips.
C)   LG.
D)   Sony.
E)   Vizio.F) A) and D)
G) B) and C)

Question 16

price the seller quotes that includes all transportation costs is referred to as __________.

Accepted Answer

A)   mode of transportation
B)   geographical allowance
C)   uniform delivered pricing
D)   FOB origin pricing
E)   FOB destination pricingF) B) and E)
G) C) and D)

Question 17

local instant photocopying service charges 10 cents a copy up to 25 copies,9 cents a copy for 26 to 99 copies,and 8 cents a copy for 100 copies or more.What kind of adjustment to these list or quoted prices is the photocopying service using?

Accepted Answer

A)   experience curve pricing
B)   loss-leader pricing
C)   a quantity discount
D)   a promotional discount
E)   everyday low pricingF) A) and B)
G) All of the above

Question 18

Figure 14-7
-Consider Figure 14-7 above.Suppose a manufacturer quotes price in the following form: List price-$100 less 30/10/5.What does "C" represent?

Accepted Answer

A)   the wholesaler's trade discount
B)   the retailer's trade discount
C)   the jobber's trade discount
D)   the manufacturer's trade discount
E)   the manufacturer's markupF) A) and E)
G) A) and C)

Question 19

retailer purchased a gross of silk shells each costing exactly $17 apiece.Although the only difference between the shells was color,when they were put on the floor,the primary colors were marked $25,the pastel colors were marked $28,and the black-and-white shells were marked $30.These prices were set most likely because

Accepted Answer

A)   retailers using a price lining strategy will occasionally mark up items based on color, style, and expected consumer demand.
B)   fewer people buy black-and-white shells, so the retailer has to charge a higher price to break even.
C)   the retailer is using prestige pricing; black-and-white shells are more elegant.
D)   the primary colors were priced using a penetration strategy, the pastels were priced using a skimming strategy, and the black-and-white shells were priced using prestige pricing.
E)   price lining is essentially the same as above-, at-, or below market pricing.F) B) and C)
G) A) and D)

Question 20

reward wholesalers and retailers for the risk they accept in assuming increased inventory carrying costs,manufacturers offer

Accepted Answer

A)   noncumulative discounts.
B)   cumulative discounts.
C)   trade discounts.
D)   seasonal discounts.
E)   functional discounts.F) A) and E)
G) A) and B)

Exam 14: Arriving at the Final Price

Selecting one or more geographical locations from which the list price for products plus freight expenses are charged to the buyer is referred to as __________.

Correct Answer
verified

the cash discount terms for a $500 purchase are 4/10 net 30,the number 4 refers to

Correct Answer
verified

are the five most common deceptive pricing practices? Give an example of each one.

Correct Answer
verified
The five most common deceptive pricing p...
View Answer

North America's fastest-growing HDTV and consumer electronics company is

Correct Answer
verified

three major types of special adjustments to list or quoted price are

Correct Answer
verified

key to setting a final price for a product is finding an approximate price level to use as a reasonable starting point.Four common approaches to selecting an approximate price level are: (1) demand-oriented; (2) cost-oriented; (3) __________; and (4) competition-oriented approaches.

Correct Answer
verified

Setting the price of a product or service by adding a fixed percentage to the total unit cost is referred to as

Correct Answer
verified

Which of the following statements regarding price cutting is most accurate?

Correct Answer
verified

Correct Answer
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Correct Answer
verified

some cases,penetration pricing may follow skimming pricing.The skimming pricing would help and the penetration pricing would help.

Correct Answer
verified

Geographical Pricing Map C -Which of the following statements about the legal and regulatory aspect of pricing is most accurate?

Correct Answer
verified

penetration pricing policy is MOST LIKELY to be effective when

Correct Answer
verified

reward wholesalers and retailers for the risk they accept in assuming increased inventory carrying costs,manufacturers offer

Correct Answer
verified

Figure 14-7 -Consider Figure 14-7 above.Suppose a manufacturer quotes price in the following form: List price-$100 less 30/10/5.What does "C" represent?

Correct Answer
verified

price the seller quotes that includes all transportation costs is referred to as __________.

Correct Answer
verified

Central Ice Machine Company is located in Omaha,Nebraska and sells Frick,Sullair,York,and Fes Fuller ammonia refrigeration parts.The company ships these parts using FOB origin pricing.Which of the following statements about the shipment of a Frick reciprocating compressor is true?

Correct Answer
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

Correct Answer
verified

price reduction given when a used product is part of the payment on a new product is referred to as a __________.

Correct Answer
verified

local instant photocopying service charges 10 cents a copy up to 25 copies,9 cents a copy for 26 to 99 copies,and 8 cents a copy for 100 copies or more.What kind of adjustment to these list or quoted prices is the photocopying service using?

Correct Answer
verified

Exam 14: Arriving at the Final Price

Selecting one or more geographical locations from which the list price for products plus freight expenses are charged to the buyer is referred to as __________.

Correct AnswerverifiedShow Answer

the cash discount terms for a $500 purchase are 4/10 net 30,the number 4 refers to

Correct AnswerverifiedShow Answer

are the five most common deceptive pricing practices? Give an example of each one.

Correct AnswerverifiedThe five most common deceptive pricing p...View AnswerShow Answer

North America's fastest-growing HDTV and consumer electronics company is

Correct AnswerverifiedShow Answer

three major types of special adjustments to list or quoted price are

Correct AnswerverifiedShow Answer

key to setting a final price for a product is finding an approximate price level to use as a reasonable starting point.Four common approaches to selecting an approximate price level are: (1) demand-oriented; (2) cost-oriented; (3) __________; and (4) competition-oriented approaches.

Correct AnswerverifiedShow Answer

Setting the price of a product or service by adding a fixed percentage to the total unit cost is referred to as

Correct AnswerverifiedShow Answer

Which of the following statements regarding price cutting is most accurate?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

some cases,penetration pricing may follow skimming pricing.The skimming pricing would help __________ and the penetration pricing would help__________.

Correct AnswerverifiedShow Answer

Geographical Pricing Map C -Which of the following statements about the legal and regulatory aspect of pricing is most accurate?

Correct AnswerverifiedShow Answer

penetration pricing policy is MOST LIKELY to be effective when

Correct AnswerverifiedShow Answer

reward wholesalers and retailers for the risk they accept in assuming increased inventory carrying costs,manufacturers offer

Correct AnswerverifiedShow Answer

Figure 14-7 -Consider Figure 14-7 above.Suppose a manufacturer quotes price in the following form: List price-$100 less 30/10/5.What does "C" represent?

Correct AnswerverifiedShow Answer

price the seller quotes that includes all transportation costs is referred to as __________.

Correct AnswerverifiedShow Answer

Central Ice Machine Company is located in Omaha,Nebraska and sells Frick,Sullair,York,and Fes Fuller ammonia refrigeration parts.The company ships these parts using FOB origin pricing.Which of the following statements about the shipment of a Frick reciprocating compressor is true?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

price reduction given when a used product is part of the payment on a new product is referred to as a __________.

Correct AnswerverifiedShow Answer

local instant photocopying service charges 10 cents a copy up to 25 copies,9 cents a copy for 26 to 99 copies,and 8 cents a copy for 100 copies or more.What kind of adjustment to these list or quoted prices is the photocopying service using?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified
The five most common deceptive pricing p...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

some cases,penetration pricing may follow skimming pricing.The skimming pricing would help and the penetration pricing would help.

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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