Question 1

A _____ is a price reduction offered to a consumer,an industrial user,or a marketing intermediary in return for prompt payment of a bill.

Accepted Answer

A)  ​cash discount
B)  quantity discount
C)  functional discount
D)  ​seasonal discountE) None of the above
F) B) and D)

Question 2

To consumers,value is based upon:

Accepted Answer

A)  ​the absolute monetary value of price.
B)  their perceived satisfaction.
C)  their ability to get discount on a product.
D)  ​the steadiness of price over a period of time.E) A) and B)
F) None of the above

Question 3

Which of the following happens if demand is elastic?

Accepted Answer

A)  ​As price goes up, consumer demand changes.
B)  The competition between organizations reduces.
C)  There is no substitute for a product in such case.
D)  ​Purchasing power of the consumer decreases.E) All of the above
F) None of the above

Question 4

Which of the following is an impact of the Internet on consumers' shopping behavior?

Accepted Answer

A)  ​The Internet auction business is likely to disappear in the future.
B)  Consumer reviews on the Internet about various products tend to be equal in quality.
C)  Business-to-business auctions are likely to be the dominant form of Internet auction in the future.
D)  ​Extranets are programs that search the Internet for the best price for a particular product.E) All of the above
F) None of the above

Question 5

While break-even pricing is relatively simple,markup pricing uses more complicated concepts of cost.

Accepted Answer

A) True 
 B)False

Question 6

A rebate is a discount to wholesalers and retailers for performing channel functions.

Accepted Answer

A) True 
 B)False

Question 7

Return on investment (ROI) for a firm:

Accepted Answer

A)  ​is the margin of profit earned by the firm inclusive of the taxes payable by the firm.
B)  is its total assets multiplied by the net profits after taxes.
C)  measures management's overall effectiveness in generating profits with the available assets.
D)  ​will be lower than the previous year if the firm performs better in the market.E) B) and C)
F) A) and D)

Question 8

Shopping bots theoretically give pricing power to:

Accepted Answer

A)  ​consumers.
B)  wholesalers.
C)  retailers.
D)  ​agents.E) B) and C)
F) A) and B)

Question 9

When retailers stock exclusive versions of products that have similar specifications to ones carried in other stores but have different model or serial numbers,it facilitates price matching.

Accepted Answer

A) True 
 B)False

Question 10

Britney,a teenager,startsher own business of selling cupcakes to coffee shops and restaurants.She strives to increaseeither the market share in terms of the revenue generated or the number of cupcakes sold.This is an example of _____.

Accepted Answer

A)  ​status quo pricing
B)  profit-oriented pricing objective
C)  bait pricing
D)  ​sales-oriented pricing objectiveE) A) and B)
F) B) and D)

Question 11

Dynamic pricing is most useful when the capacity of a product or service cannot be fixed well in advance.

Accepted Answer

A) True 
 B)False

Question 12

A cost that changes with the level of output is called a(n) _____.

Accepted Answer

A)  ​liquid cost
B)  variable cost
C)  independent cost
D)  ​indirect costE) A) and B)
F) All of the above

Question 13

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)  operate using a Yellow Pages type of model.
D)  ​include examples like SeatGeek(event tickets)  andKayak(travel-related services) .E) A) and B)
F) A) and C)

Question 14

Discuss how shopping bots help consumers with their purchase decisions.

Accepted Answer

Answers will vary.The Internet and extra...

Question 15

Which of the following is true of simple break-even analysis?

Accepted Answer

A)  ​It ignores the selling price of a product.
B)  It does not give weightage to the cost of labor that is incurred during production.
C)  It is applicable only when the demand for a product is elastic.
D)  ​It ignores the demand for a product.E) A) and B)
F) A) and D)

Question 16

_____ is the selling to two or more different buyers,within a reasonably short time,of commodities (not services) of like grade and quality at different prices where the result would be to substantially lessen competition.

Accepted Answer

A)  ​Price discrimination
B)  Price fixing
C)  Bait pricing
D)  ​Penetration pricingE) B) and D)
F) A) and D)

Question 17

To increase the popularity of its new range of smartphones,GizmoPro Inc.,a mobile phone manufacturer,offered several other products for free to customers who bought the smartphones.However,the management of GizmoPro Inc.soon found this to be an unsustainable practice.The company then decided to offer discounts on the products instead of giving them for free.These actions of the management of GizmoPro Inc.are aimed at:

Accepted Answer

A)  ​market share pricing.
B)  profit maximization.
C)  demandorientation.
D)  ​sales maximization.E) A) and D)
F) All of the above

Question 18

Unlike even-numbered prices,odd-numbered prices:

Accepted Answer

A)  ​make consumers feel they are paying a higher price for a product.
B)  are used for "prestige" items.
C)  have elastic demand.
D)  ​connote a bargain.E) C) and D)
F) None of the above

Question 19

_____ is a pricing policy whereby a firm charges a relatively low price for a product when it is first rolled out as a way to reach the mass market.

Accepted Answer

A)  ​Penetration pricing
B)  Price skimming
C)  Price discrimination
D)  ​Status quo pricingE) All of the above
F) C) and D)

Question 20

Ava Lawnmowers Inc.is a company that manufactures and sells lawn mowers.Since it faces stiff competition in the market,it sells its products at different prices depending on the number of lawn movers purchased by the consumers.In this scenario,the company indulges in _____.

Accepted Answer

A)  ​penetration pricing
B)  price skimming
C)  price discrimination
D)  ​predatory pricingE) A) and B)
F) C) and D)

Exam 19: Pricing Concepts

Correct Answer
verified

A rebate is a discount to wholesalers and retailers for performing channel functions.

Correct Answer
verified

Unlike even-numbered prices,odd-numbered prices:

Correct Answer
verified

When retailers stock exclusive versions of products that have similar specifications to ones carried in other stores but have different model or serial numbers,it facilitates price matching.

Correct Answer
verified

Discuss how shopping bots help consumers with their purchase decisions.

Correct Answer
verified
Answers will vary.The Internet and extra...
View Answer

While break-even pricing is relatively simple,markup pricing uses more complicated concepts of cost.

Correct Answer
verified

A _____ is a price reduction offered to a consumer,an industrial user,or a marketing intermediary in return for prompt payment of a bill.

Correct Answer
verified

To consumers,value is based upon:

Correct Answer
verified

Britney,a teenager,startsher own business of selling cupcakes to coffee shops and restaurants.She strives to increaseeither the market share in terms of the revenue generated or the number of cupcakes sold.This is an example of _____.

Correct Answer
verified

Which of the following is an impact of the Internet on consumers' shopping behavior?

Correct Answer
verified

A cost that changes with the level of output is called a(n) _____.

Correct Answer
verified

Which of the following is true of simple break-even analysis?

Correct Answer
verified

Ava Lawnmowers Inc.is a company that manufactures and sells lawn mowers.Since it faces stiff competition in the market,it sells its products at different prices depending on the number of lawn movers purchased by the consumers.In this scenario,the company indulges in _____.

Correct Answer
verified

Return on investment (ROI) for a firm:

Correct Answer
verified

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

Correct Answer
verified

_____ is a pricing policy whereby a firm charges a relatively low price for a product when it is first rolled out as a way to reach the mass market.

Correct Answer
verified

Which of the following happens if demand is elastic?

Correct Answer
verified

Shopping bots theoretically give pricing power to:

Correct Answer
verified

Dynamic pricing is most useful when the capacity of a product or service cannot be fixed well in advance.

Correct Answer
verified

_____ is the selling to two or more different buyers,within a reasonably short time,of commodities (not services) of like grade and quality at different prices where the result would be to substantially lessen competition.

Correct Answer
verified

Exam 19: Pricing Concepts

Correct AnswerverifiedShow Answer

A rebate is a discount to wholesalers and retailers for performing channel functions.

Correct AnswerverifiedShow Answer

Unlike even-numbered prices,odd-numbered prices:

Correct AnswerverifiedShow Answer

When retailers stock exclusive versions of products that have similar specifications to ones carried in other stores but have different model or serial numbers,it facilitates price matching.

Correct AnswerverifiedShow Answer

Discuss how shopping bots help consumers with their purchase decisions.

Correct AnswerverifiedAnswers will vary.The Internet and extra...View AnswerShow Answer

While break-even pricing is relatively simple,markup pricing uses more complicated concepts of cost.

Correct AnswerverifiedShow Answer

A _____ is a price reduction offered to a consumer,an industrial user,or a marketing intermediary in return for prompt payment of a bill.

Correct AnswerverifiedShow Answer

To consumers,value is based upon:

Correct AnswerverifiedShow Answer

Britney,a teenager,startsher own business of selling cupcakes to coffee shops and restaurants.She strives to increaseeither the market share in terms of the revenue generated or the number of cupcakes sold.This is an example of _____.

Correct AnswerverifiedShow Answer

Which of the following is an impact of the Internet on consumers' shopping behavior?

Correct AnswerverifiedShow Answer

A cost that changes with the level of output is called a(n) _____.

Correct AnswerverifiedShow Answer

Which of the following is true of simple break-even analysis?

Correct AnswerverifiedShow Answer

Ava Lawnmowers Inc.is a company that manufactures and sells lawn mowers.Since it faces stiff competition in the market,it sells its products at different prices depending on the number of lawn movers purchased by the consumers.In this scenario,the company indulges in _____.

Correct AnswerverifiedShow Answer

Return on investment (ROI) for a firm:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

_____ is a pricing policy whereby a firm charges a relatively low price for a product when it is first rolled out as a way to reach the mass market.

Correct AnswerverifiedShow Answer

Which of the following happens if demand is elastic?

Correct AnswerverifiedShow Answer

Shopping bots theoretically give pricing power to:

Correct AnswerverifiedShow Answer

Dynamic pricing is most useful when the capacity of a product or service cannot be fixed well in advance.

Correct AnswerverifiedShow Answer

_____ is the selling to two or more different buyers,within a reasonably short time,of commodities (not services) of like grade and quality at different prices where the result would be to substantially lessen competition.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Answers will vary.The Internet and extra...
View Answer

Correct Answer
verified

Correct Answer
verified

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Correct Answer
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