Question 1

A manufacturer of pocket-sized horoscope computers that charges a different price to a retailer in Montana than it charges a retailer in Kentucky is using uniform delivered pricing.

Accepted Answer

A) True 
 B)False

Question 2

_____ is similar to the distance-based pricing used by package-delivery services, such as FedEx.

Accepted Answer

A)   Freight-absorption
B)   Zone-delivered
C)   Uniform delivered
D)   Promotional allowance
E)   FOB factoryF) A) and D)
G) D) and E)

Question 3

One of the major difficulties of zone-delivered pricing is determining zone boundaries:

Accepted Answer

A)   that have the same number of customers.
B)   so as to avoid charges of illegal price discrimination.
C)   that are equal in dollar sales potential.
D)   such that the prices are the same for each zone.
E)   that are equal in geographic size.F) C) and D)
G) A) and B)

Question 4

Liz saw an ad in a New Jersey newspaper for a book guaranteed to reduce stress. In the ad, she read that the price of the book was slightly higher west of the Mississippi River. This price differential is due to:

Accepted Answer

A)   zone-delivered pricing.
B)   the current legal interpretation of the Robinson-Patman Act.
C)   the rules and regulations of the Federal Trade Commission.
D)   inverse demand.
E)   cash discounts.F) None of the above
G) A) and C)

Question 5

With ______, manufacturers practically eliminate all discounts and allowances to retailers-instead the manufacturers offer retailers consistent low prices.

Accepted Answer

A)   high-low pricing
B)   flexible pricing
C)   everyday low pricing
D)   penetration pricing
E)   loss leadersF) A) and B)
G) None of the above

Question 6

The _____ strategy combines frequent price reductions and aggressive promotions to convey an image of very low pricing.

Accepted Answer

A)   high-low pricing
B)   price augmentation
C)   balanced pricing
D)   price differential
E)   everyday low pricingF) A) and C)
G) A) and D)

Question 7

Cumulative quantity discounts are designed to:

Accepted Answer

A)   increase the size of individual orders.
B)   encourage the buyer to make most of his or her purchases from this seller over a period of time.
C)   be used by a seller of a single product but not by a producer of multiple products.
D)   encourage retailers to buy in advance of the normal selling season.
E)   pay wholesalers and retailers for performing their regular services.F) B) and E)
G) C) and D)

Question 8

More than twenty states have _____ that regulates leader pricing.

Accepted Answer

A)   resale maintenance laws
B)   acts governing SRP
C)   unfair-practices acts
D)   pricing amendments
E)   variable-pricing mandatesF) A) and E)
G) A) and B)

Question 9

The two types of rebates are:

Accepted Answer

A)   mail-in and coupon.
B)   print media and in-store.
C)   Internet and print media.
D)   manufacturer and reseller.
E)   test and promotional.F) A) and D)
G) A) and C)

Question 10

Almay's cosmetics paid one-half of the advertising cost for Classique Boutique to run a series of ads on a local radio station. Each of the radio ads emphasized the retailer carried the complete line of Almay products. This would be an example of a:

Accepted Answer

A)   promotional allowance.
B)   forward-dated discount.
C)   seasonal discount.
D)   cash discount.
E)   quantity discount.F) All of the above
G) D) and E)

Question 11

Which of the following statements about price wars is True?

Accepted Answer

A)   The number of price wars that have occurred since the 1990s has decreased significantly.
B)   Price wars do not occur in the service industry.
C)   Price wars can be harmful to a company that is financially weak.
D)   In the short-run, consumers do not benefit from a price war.
E)   Most businesses benefit from participation in price wars.F) A) and E)
G) B) and D)

Question 12

_____ is sometimes referred to as "postage stamp pricing."

Accepted Answer

A)   Zone-delivered pricing
B)   FOB factory pricing
C)   Freight-absorption pricing
D)   Pricing by the United Parcel Service (UPS) 
E)   Uniform delivered pricingF) A) and D)
G) A) and E)

Question 13

While the prices for most wine brands were falling, and restaurants were canceling wine orders for bottles that cost over $25 apiece, Nickel & Nickel launched a new wine brand selling at $125 per bottle. There were already many less expensive wines on the market. Nickel & Nickel invited the sales staff of one of the largest wine distributors in the U.S. to attend a pre-release testing. This would be an example of:

Accepted Answer

A)   price competition.
B)   economic diversification.
C)   market control.
D)   nonprice competition.
E)   price fixing.F) A) and C)
G) A) and D)

Question 14

When Jansen purchased a gazebo for her backyard, she was able to negotiate a price lower than the original market price. This is an example of a _____ price strategy.

Accepted Answer

flexible o...

Question 15

Price lining and odd pricing are both types of _____ pricing.

Accepted Answer

A)   geographic
B)   functional
C)   hierarchical
D)   organizational
E)   psychologicalF) A) and C)
G) None of the above

Question 16

What pricing strategy was Apple Computer Inc. using when it introduced the iMac computers with relatively low initial prices?

Accepted Answer

A)   market-skimming
B)   market-absorption
C)   market-penetration
D)   cost-plus
E)   value-addedF) D) and E)
G) B) and E)

Question 17

Under the Robinson-Patman Act, price differentials may be allowed if:

Accepted Answer

A)   a retailer needs to get rid of millennium party packs and cards.
B)   a wholesaler needs to increase its sales by 10 percent in order to reach its sales-oriented objective.
C)   a reseller wants to create a long-term relationship with a customer that has a reputation for wanting the lowest possible prices.
D)   a reseller is selling items that are unaffected by obsolescence like books and concrete.
E)   a wholesaler wants to use freight absorption pricing.F) All of the above
G) A) and B)

Question 18

In January, a truckload of seasoned oak for your woodburning stove costs $65.00. If you purchase the same truckload in May, it will only cost you $40.00. This is an example of a:

Accepted Answer

A)   seasonal discount.
B)   trade discount.
C)   cash discount.
D)   promotional allowance.
E)   functional discount.F) C) and D)
G) A) and E)

Question 19

Under a one-price strategy, a seller charges the same price to all similar customers who buy identical quantities of products.

Accepted Answer

A) True 
 B)False

Question 20

Due to a number of layoffs in the technology industry, there are many technology experts who are unemployed. Some saw an opportunity to become a third-party suppliers of tech support, especially after they became aware that even handling a small problem for a major company can cost $20. One of the new services is called GeekHelp. When the service was introduced to the market, the entrepreneur who started the company announced it has the cheapest per-minute rate of any of the tech support companies. Another one called Ask Dr. Tech charges a fee of $299 per year to provide tech support for a small business. Because some consumers cannot explain what is wrong with their computers beyond the fact it will not work, GeekXpress will make house calls to organization members who pay a fee of $35 per month. When it added house calls to its services, it did not raise its prices.
-The period between Christmas and the end of January tends to be extremely busy for tech support services. One of the tech support providers is thinking of offering customers _____ to customers who require his services during the slow summer months.

Accepted Answer

A)   functional discounts
B)   quantity discounts
C)   seasonal discounts
D)   promotional allowances
E)   trade discountsF) A) and E)
G) A) and D)

Exam 13: Pricing Strategies

A manufacturer of pocket-sized horoscope computers that charges a different price to a retailer in Montana than it charges a retailer in Kentucky is using uniform delivered pricing.

Correct Answer
verified

When Jansen purchased a gazebo for her backyard, she was able to negotiate a price lower than the original market price. This is an example of a _____ price strategy.

Correct Answer
verified
flexible o...
View Answer

The two types of rebates are:

Correct Answer
verified

Correct Answer
verified

Cumulative quantity discounts are designed to:

Correct Answer
verified

Price lining and odd pricing are both types of _____ pricing.

Correct Answer
verified

What pricing strategy was Apple Computer Inc. using when it introduced the iMac computers with relatively low initial prices?

Correct Answer
verified

_____ is sometimes referred to as "postage stamp pricing."

Correct Answer
verified

Correct Answer
verified

Almay's cosmetics paid one-half of the advertising cost for Classique Boutique to run a series of ads on a local radio station. Each of the radio ads emphasized the retailer carried the complete line of Almay products. This would be an example of a:

Correct Answer
verified

_____ is similar to the distance-based pricing used by package-delivery services, such as FedEx.

Correct Answer
verified

Which of the following statements about price wars is True?

Correct Answer
verified

One of the major difficulties of zone-delivered pricing is determining zone boundaries:

Correct Answer
verified

With ______, manufacturers practically eliminate all discounts and allowances to retailers-instead the manufacturers offer retailers consistent low prices.

Correct Answer
verified

The _____ strategy combines frequent price reductions and aggressive promotions to convey an image of very low pricing.

Correct Answer
verified

Liz saw an ad in a New Jersey newspaper for a book guaranteed to reduce stress. In the ad, she read that the price of the book was slightly higher west of the Mississippi River. This price differential is due to:

Correct Answer
verified

Under a one-price strategy, a seller charges the same price to all similar customers who buy identical quantities of products.

Correct Answer
verified

In January, a truckload of seasoned oak for your woodburning stove costs $65.00. If you purchase the same truckload in May, it will only cost you $40.00. This is an example of a:

Correct Answer
verified

More than twenty states have _____ that regulates leader pricing.

Correct Answer
verified

Under the Robinson-Patman Act, price differentials may be allowed if:

Correct Answer
verified

Exam 13: Pricing Strategies

A manufacturer of pocket-sized horoscope computers that charges a different price to a retailer in Montana than it charges a retailer in Kentucky is using uniform delivered pricing.

Correct AnswerverifiedShow Answer

When Jansen purchased a gazebo for her backyard, she was able to negotiate a price lower than the original market price. This is an example of a _____ price strategy.

Correct Answerverifiedflexible o...View AnswerShow Answer

The two types of rebates are:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Cumulative quantity discounts are designed to:

Correct AnswerverifiedShow Answer

Price lining and odd pricing are both types of _____ pricing.

Correct AnswerverifiedShow Answer

What pricing strategy was Apple Computer Inc. using when it introduced the iMac computers with relatively low initial prices?

Correct AnswerverifiedShow Answer

_____ is sometimes referred to as "postage stamp pricing."

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Almay's cosmetics paid one-half of the advertising cost for Classique Boutique to run a series of ads on a local radio station. Each of the radio ads emphasized the retailer carried the complete line of Almay products. This would be an example of a:

Correct AnswerverifiedShow Answer

_____ is similar to the distance-based pricing used by package-delivery services, such as FedEx.

Correct AnswerverifiedShow Answer

Which of the following statements about price wars is True?

Correct AnswerverifiedShow Answer

One of the major difficulties of zone-delivered pricing is determining zone boundaries:

Correct AnswerverifiedShow Answer

With ______, manufacturers practically eliminate all discounts and allowances to retailers-instead the manufacturers offer retailers consistent low prices.

Correct AnswerverifiedShow Answer

The _____ strategy combines frequent price reductions and aggressive promotions to convey an image of very low pricing.

Correct AnswerverifiedShow Answer

Liz saw an ad in a New Jersey newspaper for a book guaranteed to reduce stress. In the ad, she read that the price of the book was slightly higher west of the Mississippi River. This price differential is due to:

Correct AnswerverifiedShow Answer

Under a one-price strategy, a seller charges the same price to all similar customers who buy identical quantities of products.

Correct AnswerverifiedShow Answer

In January, a truckload of seasoned oak for your woodburning stove costs $65.00. If you purchase the same truckload in May, it will only cost you $40.00. This is an example of a:

Correct AnswerverifiedShow Answer

More than twenty states have _____ that regulates leader pricing.

Correct AnswerverifiedShow Answer

Under the Robinson-Patman Act, price differentials may be allowed if:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
flexible o...
View Answer

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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Correct Answer
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