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Exam 14: Arriving at the Final Price

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Question 111

Multiple Choice

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Geographic adjustments are made by manufacturers or wholesalers to cover

A) production costs.
B) administrative costs.
C) selling costs.
D) promotional costs.
E) transportation costs.

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Question 112

Multiple Choice

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Skimming pricing refers to

A) setting the lowest initial price possible when introducing a new or innovative product in order to "skim" sales from competitors.
B) setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product.
C) setting a low initial price on a new product to appeal immediately to the mass market.
D) the practice of replacing promotional allowances with higher manufacturer list prices.
E) setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

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Question 113

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A penetration pricing policy is MOST LIKELY to be effective when: (1) __________; (2) a low initial price discourages competitors from entering the market;and (3) unit production and marketing costs fall dramatically as production volumes increase.

With uniform delivered pricing,the price the seller quotes

When a firm divides its selling territory into geographic areas,it is referred to as

What pricing method is often used because of the difficulty in establishing a benchmark of sales or investment to show how much of a firm's effort is needed to achieve the target?

Odd-even pricing refers to

Trade discounts are offered to resellers in the marketing channel on the basis of the marketing activities they are expected to perform in the future and

The retail price of fax machines has decreased from over $10,000 in the early 1970s to less than $100 today.This is due in large part to

A glass blowing studio makes fine pieces of art glass.It has decided on a retail list price of $2,000 for one of its vases.They sell only using wholesalers and retailers who receive 50/10 terms.How much will the studio receive from selling this vase?

Target return-on-investment pricing refers to

Figure 14-2 above represents the four approaches to selecting an appropriate price level."D" includes customary and loss leader so it represents which approach?

When Dell sells various laptops,it also pre-installs Microsoft Office and other software customers order at a discount before a laptop is shipped.This is an example of

Another name for a fixed-price policy is

A company placing an order from the Lab Safety Supply catalog is instructed to add $25.00 to the total cost of the order to pay for shipping regardless of the buyer's location.Which method of shipping does this catalog supplier use?

The practice of offering a bargain that is conditional on the purchase of other products may exist when a buyer is offered the "1-Cent Sales," the "Buy 1,Get 1 Free," or the "Get 2 for the Price of 1" deal.Such pricing is legal only if

What is it called when a manufacturer offers discounts to resellers in the marketing channel on the basis of where they are in the channel?

Companies use a "__________" to assess whether its products and brands are above,at,or below the market.

When buying a car,__________ may result in discriminatory practices.

A skimming pricing policy is likely to be most effective when: (1) enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable; (2) __________; (3) lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost;and (4) customers interpret the high price as signifying high quality.