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50 Cards in this Set
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In class, we looked at an approach to pricing that may result in market analysts giving our firm a higher rating, which should move the price of our stocks up. Which profit objective is most likely to produce this result? Answers: a. Managing for Long-Run Profits b. Managing for Current Profit c. Target Return (ROI) d. Price to increase Sales Dollars of one of our brands e. Price to increase over all company Market Share |
Managing for current profit |
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In thinking about price, we noted that the Final Price paid may be reduced by "incentive and allowances." What is an example of this for college tuition? a. Admissions Application Fee b. Returned Check Fee c. Undergraduate Scholarship d. Late registration fee e. Out of state student fee |
Undergraduate scholarship |
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In class, as we talked about price, we looked at the Bugatti Veyron. About how much is the "base price" of a Bugatti Veyron? a. $58,000 b. $85,000 c. $175,000 d. $550,000 e. $1,950,000 |
$1,950,000 |
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In class, we considered the example of tuition at KSU. We noted that the tuition does not increase from 11 to 17 credit hours. What aspect of "price" did this represent? a. It is the "list price" for these services. b. This represents a "discount" on the cost of taking more credit hours. c. This pricing approach to tuition represents an "add on" to the published tuition in the form of an "extra fee" for more credit hours taken. d. This is a form of "retroactive tax" paid by students who take more courses. e. This IS the final tuition actually paid. |
This represents a "discount" on the cost of taking more credit hours. |
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Which of the following is a typical example of a fixed cost? a. taxes b. raw materials c. sales commissions d. building rental expense e. hourly wages |
building rental expense |
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Which of the following pricing techniques results in the manufacturers deliberately adjusting the composition and features of a product to achieve the desired price for consumers? a. cost-plus percentage-of-cost pricing b. standard markup pricing c. cost-plus fixed-fee pricing d. experience curve pricing e. target pricing |
target pricing |
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Setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product is referred to as a a. skimming strategy. b. penetration strategy. c. price-lining strategy. d. experience-curve pricing strategy. e. prestige pricing strategy. |
skimming strategy |
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Recent research suggests that employees' competence, authenticity, and __________ of the interactions affect the success of the relationships. a. reliability b. empathy c. sincerity d. responsiveness e. friendliness |
sincerity |
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The ratio of perceived benefits to __________ is referred to as value. a. price b. prestige c. perceived quality d. profits e. perceived costs |
price |
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According to Vizio, "The whole goal is to ensure that we have the right product, at the right time and the right price and __________." a. forever rid the world of plugs and wires b. create customer value that is unmatched in the industry c. deliver it to the right people d. at the right place e. drive a seamless end-to-end value chain |
drive a seamless end-to-end value chain |
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In class, we noted that the "price" that a buyer pays can take on different names, depending on what is being purchases. Which of the following would NOT be another name for "price?" a. List Price b. Tuition c. Invoice Price d. Final Price e. Actually, all of these are names for price. |
All of these |
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According to lecture, how much more does it cost to attract a new customer than to keep an existing one? a. 2 times more b. 5 times more c. 8 times more d. 10 times more e. 15 times more |
5 times more |
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As we discussed in class, services differ from products (goods) in along a variety of dimensions. Which characteristic of services means that marketers must educate their consumers about their role in the service process? The characteristic of: a. Inseparability b. Perishability of Inventory c. Inconsistency d. Intangibility e. Indecisive |
inseparability |
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According to lecture, with penetration pricing we will get a large share of the market quickly. This means that (i) our per unit production costs drop quickly and (ii) ________________________. a. our demand is inelastic. b. our customers care about prestige. c. our competitors will be encouraged to enter our market. d. with high volume of sales we will generate a good profit. e. Actually, all of these would apply |
with high volume of sales we will generate a good profit. |
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Figure 13-5A above shows that when the price for Red Baron frozen cheese pizzas moves from $8 to $6 per unit along the demand curve D1, the quantity demanded a. increases from 2 to 3 million units per year. b. decreases from 3 to 2 million units per year. c. stays the same. d. increases from 6 to 8 million units per year. e. decreases from 8 to 6 million units per year. |
a. increases from 2 to 3 million units per year. |
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Attorneys' fees, entrance fees, train fares, and organization dues are all examples of a. premiums. b. barter. c. profit. d. price. e. outlays. |
price |
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Two or more competitors explicitly or implicitly setting prices is referred to as __________. a. competitive collusion b. vertical price fixing c. horizontal price fixing d. lateral price fixing e. price cooperation |
horizontal price fixing |
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Demand-oriented approaches weigh factors that underlie expected __________ more heavily than such factors as cost, profit, and competition when selecting a price level. a. total revenue b. stakeholder concerns c. prevailing prices d. product substitutes e. customer tastes |
customer tastes |
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The practice of exchanging products and services for other products and services rather than for money is referred to as __________. |
barter |
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Which of the following is a cost-oriented pricing method? a. loss leader pricing b. standard markup pricing c. at-, above-, or below-market pricing d. price lining e. penetration pricing |
standard markup pricing |
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Based on lecture, which of the following would NOT be an element to consider in setting the price of the service offered? a. Wages b. Physical Facilities c. Technology and Equipment d. Honoring warranties and guarantees e. Actually, these would ALL be considered in setting service price. |
Actually, these would ALL be considered in setting service price. |
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Based on lecture, which of the following would be a good example of an ancillary service seen in B2B marketing? a. Convenient free parking b. High quality products c. Products meeting the technical specifications in the contract d. The lowest price available e. Favorable credit terms |
favorable credit terms |
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In class, we looked at an approach to pricing that may result in market analysts giving our firm a higher rating, which should move the price of our stocks up. Which profit objective is most likely to produce this result? a. Managing for Long-Run Profits b. Managing for Current Profit c. Target Return (ROI) d. Price to increase Sales Dollars of one of our brands e. Price to increase over all company Market Share |
Managing for Current Profit |
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According to the lecture, which of the following is a disadvantage of Price Skimming: a. It slows up the recovery of development costs b. It attracts competition c. It is hard to adjust our price if consumers feel it is too high d. Because demand is likely to be so high, we may not be able to gear up production quickly enough e. Actually, NONE of the above are disadvantages associated with Price Skimming |
It attracts competition |
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Rent, executive salaries, and insurance are typical examples of a. variable costs. b. fixed costs. c. unit costs. d. marginal costs. e. total costs. |
fixed costs |
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Pricing objectives refer to a. reconciling the prices charged by an organization to the values set forth in its business mission. b. taking specific steps to capitalize on an organization's internal strengths as they apply to price. c. specifying the role of price in an organization's marketing and strategic plans. d. taking specific steps to compensate for an organization's weaknesses as they apply to price. e. subjectively setting intrinsic values to all products and services offered by an organization. |
specifying the role of price in an organization's marketing and strategic plans. |
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The acronym "EDLP" stands for __________. a. estimated discount leveling policy b. extended discounts for loss-leader products c. everyday low pricing d. either (free) delivery or lower prices e. extended discounts in lieu of lower pricing |
every day low pricing |
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The break-even point (BEP) = [Fixed cost ÷ (__________ − Unit variable cost)]. a. Total cost b. Total expense c. Fixed cost d. Unit variable cost e. Unit price |
unit price |
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Consider Figure 14-9 above. "C" represents which of the following legislative acts? a. The Robinson-Patman Act b. The Clayton Act c. The Sherman Act d. The Federal Trade Commission Act e. The Consumer Goods Pricing Act |
The Federal Trade Commission Act |
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Recent research suggests that employees' competence, authenticity, and __________ of the interactions affect the success of the relationships. a. reliability b. empathy c. sincerity d. responsiveness e. friendliness |
sincerity |
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In our discussion of “slide down the demand curve”pricing, we noted that it can be hard to know when to drop price. If we drop too soon, we ______. a. let competition in. b. increase our costs. c. need to advertise more heavily. d. increase profits. e. give up profits. |
give up profits |
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Based on lecture, which property of services can consumers evaluate DURING (or after) the service purchase? a. Credence Properties b. Search Properties c. Experience Properties d. Real Estate Properties e. Props properties |
experience properties |
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In class, we considered the case of Casual Dining as a service. We thought about what consumers really want from their casual dining experience. One thing some consumers want is a "unique" service experience. Based on lecture, what unique element does the Cheesecake Factory offer? a. Cheesecake b. High quality Steak c. Large Portions d. Ambience e. Improved Service |
large portions |
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In which pricing approach do we find a situation where consumers may “buy up” to a higher priced, more feature-rich model which is ALSO more profitable for the marketer? a. Price Lining b. Target Pricing c. Odd-even Pricing d. Bundle pricing e. Yield Management Pricing |
Price Lining |
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Occasionally, prices may rise later in the product's life cycle. This is often due to a. new competitors entering the market. b. production economies of scale. c. a decrease in the price of raw materials. d. nostalgia and fad factors. e. the type of competitive market shifts from pure monopoly to pure competition. |
nostalgia and fad factors. |
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Product-line pricing involves determining: (1) the lowest-priced product and price; (2) __________; and (3) the price differentials for all other products in the line. a. the single most popular item in the line b. the least vulnerable product in the line c. the highest-priced product and price d. the most frequently sold product in the line e. the most price insensitive product in the line |
the highest-priced product and price |
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Figure 14-5 above shows the results of a spreadsheet simulation to select a price to achieve a target return on investment (ROI). What is the ROI for Scenario "C"? a. 0% b. 5% c. 10% d. 14% e. 17% |
14% (Target return-on-investment pricing is used to set prices to achieve a particular return on investment. ROI = Net profit ÷ Investment. ROI = $2,800 ÷ $20,000, or ROI = 14%. See Figure 14-5 in the textbook. ) |
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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 a. the frequency of the order. b. where they are in the channel. c. when orders are placed during the year. d. the length of the relationship with the manufacturer. e. the size of the order. |
where they are in the channel. |
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Which of the following companies would be MOST LIKELY to use target return-on-investment pricing? a. a farmer b. a florist shop c. a book publisher d. a veterinarian e. an automobile manufacturer |
an automobile manufacturer |
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Target return-on-investment (ROI) is frequently used by a. contractors. b. public utilities. c. business-to-business markets. d. supermarkets. e. small privately owned firms. |
public utilities |
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Based on lecture, which property of services can consumers evaluate BEFORE the purchase? a. Credence Properties b. Search Properties c. Experience Properties d. Real Estate Properties e. Props properties |
search properties |
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Based on lecture, which of the following would be a good example of an ancillary service seen in B2B marketing? a. Convenient free parking b. High quality products c. Products meeting the technical specifications in the contract d. The lowest price available e. Favorable credit terms |
favorable credit terms |
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What type of pricing approach is seen in this example: “Buy our digital camera and you get the how-to photography DVD for 50% less.” a. Price Lining b. Target pricing c. Odd-even pricing d. Bundle pricing e. Yield Management Pricing |
Bundle Pricing |
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In which pricing approach do we find a situation where consumers may “buy up” to a higher priced, more feature-rich model which is ALSO more profitable for the marketer? a. Price Lining b. Target Pricing c. Odd-even Pricing d. Bundle pricing e. Yield Management Pricing |
Price Lining |
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Two of the three types of adjustments to list or quoted price are a. profit-oriented and marginal adjustments. b. fixed-price and dynamic price adjustments. c. discounts and marginal adjustments. d. discounts and allowances. e. incremental costs and incremental revenues. |
discounts and allowances |
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Everyday low pricing refers to a. the pricing strategy of "extreme value" stores to maintain high price-quality images for the products they sell. b. the pricing strategy of starting a product at standard list price and then lowering the price by a certain percentage until it is sold. c. short-term price reductions when consumer demand takes a significant and unexpected dip. d. the practice of replacing promotional allowances with lower manufacturer list prices. e. a form of predatory pricing used solely for the purpose of undercutting competitors' prices. |
the practice of replacing promotional allowances with lower manufacturer list prices. |
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The purpose of a cash discount is to a. reward retailers for making large quantity purchases. b. encourage purchasing items during periods of low demand. c. prevent competitors from obtaining shelf space. d. counteract the introduction of a new product by a competitor. e. encourage retailers to pay their bills promptly. |
encourage retailers to pay their bills promptly. |
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The American Red Cross uses social marketing tools such as __________ to help the victims of Hurricane Sandy. a. blogs b. e-mail blasts c. wikis d. apps e. tweets |
apps |
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Most public relations experts agree that it is best for a company to __________ comments about it on the Internet. a. ignore b. argue with c. respond to d. blog about e. consider |
respond to |
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Supermarket managers use standard markup pricing because it is particularly suited to situations when a. there is a large number of products and estimating the demand for each would be difficult and time consuming. b. there is a large number of product lines, all with basically the same product attributes. c. there is a specific profit goal that needs to be achieved. d. there is a policy of selling every item in a product line at the same price regardless of the product class. e. the products are perishable or seasonal. |
there is a large number of products and estimating the demand for each would be difficult and time consuming. |
