Exam 2

Front 1

A producer of sports equipment offers its retailers a 2 percent price reduction on all purchases if the dealer advertises its products locally. In this scenario, the producer is using a(n)

Back 1

advertising allowance

Front 2

A(n) ________ is intended to reassure retailers or other intermediaries that they will make some profit on a new product even if consumers do not buy it, and thereby convince them to carry it.

Back 2

Stocking allowance

Front 3

In the United States, selling the same product to different buyers at different prices is

Back 3

illegal if it injures competition

Front 4

The Ivory Islands Resort offers a forty percent discount on lodging from September through December every year due the dramatic fall in the number of visitors during the period, largely because of unfavorable weather conditions. This type of price reduction is called ________.

Back 4

Seasonal discounts

Front 5

Which of the following statements is true of rebates?

Back 5

A rebate is a refund paid to a consumer after a purchase.

Front 6

A major timber exporting firm meets with competing timber exporters where they agree to not sell below certain prices. These exporting firms are engaging in

Back 6

Price fixing

Front 7

Which of the following factors is most likely to impact the effective price of products sold across national borders?

Back 7

Exchange rates

Front 8

The marketing manager for Aerial Photography, Inc. says his sales reps have gotten in the habit of setting prices which do not produce a profit. Aerial Photography apparently is using ________.

Back 8

Flexible pricing

Front 9

Which of the following pricing policies involves entering a market with a single low price and not significantly increasing the price even upon gaining a major market share?

Back 9

Penetration Price Policy

Front 10

Which of the following statements is true of a cumulative quantity discount?

Back 10

A cumulative quantity discount encourages a customer to consolidate buying from a single supplier.