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Multiple Choice Questions
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1

A key to setting a final price for a product is to find a(n):
A)best guess price
B)approximates price level
C)gut-level price
D)competition price level
E)throw a dart
2

Setting the highest initial price is called price:
A)penetration
B)gouging
C)parity
D)skimming
E)posturing
3

A condition that favors penetration pricing is:
A)many segments are price insensitive.
B)low price implies good quality.
C)recoup initial investment costs quicker.
D)many segments are price sensitive.
4

Using price as a measure of the quality of a product and setting price high is:
A)prestige pricing
B)price lining
C)parity pricing
D)odd-even pricing
E)target pricing
5

The marketing of two or more products in a single "package" price is called:
A)target pricing
B)bundle pricing
C)odd-even pricing
D)price lining
E)prestige pricing
6

When seats on an airline flight are priced differently, what kind of pricing is being used?
A)skimming pricing
B)penetration pricing
C)prestige pricing
D)price lining
E)yield management pricing
7

When the price setter stresses the supply or cost side of the pricing problem they are using what approach?
A)standard-orientation
B)cost-oriented
C)demand-oriented
D)target-oriented
E)make-up pricing
8

Which method of pricing is based on the "learning effect"?
A)Cost-plus pricing
B)Experience curve pricing
C)Target profit pricing
D)Customary pricing
E)Loss-leader pricing
9

Balancing both revenue and costs to set pricing is the objective of which pricing approach?
A)Cost-oriented approach
B)Standard-oriented approach
C)Profit-oriented approach
D)Target-approach
E)Standalone approach
10

Pricing for some products are based on where tradition or other competition factor dictates. This is called:
A)ROI pricing
B)target profit pricing
C)cost-oriented pricing
D)odd-even pricing
E)customary pricing
11

When a company sets the same price for all customers then they use a:
A)simple-price policy
B)one-price policy
C)unit-price policy
D)equality-price policy
E)flexible-price policy
12

Which factor has affected the use of the flexible-pricing policy the most?
A)The education level of the average consumer has increased.
B)The population is more value-conscious.
C)Information technology has become increasingly sophisticated.
D)There are more substitutes for high-priced products.
E)Rising inflation.
13

Successive pricing by competitors to increase or maintain their unit sales or market share is called:
A)price battle
B)guerilla pricing
C)guerilla warfare
D)price war
E)Price boot camp.
14

To encourage customers to buy larger quantities of a product, firms offer a special discount commonly known as a:
A)seasonal discount
B)quantity discount
C)functional discount
D)trade discount
E)cost discount
15

Quantity discounts are of two general kinds:
A)noncumulative and cumulative
B)total and sub-total
C)once and tracked total
D)quarterly and daily
E)daily and yearly
16

To encourage retailers to pay their bills quickly, manufacturers offer a special discount:
A)seasonal discounts
B)functional discounts
C)trade discounts
D)cash discount
E)cumulative discount
17

The practice of replacing promotional allowances with lower manufacturer list prices is:
A)everyday low pricing.
B)best deal around.
C)first-level costing.
D)everyday best pricing.
E)manufacturer price deal.
18

FOB origin pricing means:
A)freight on board
B)flight on board
C)fluid on box
D)free on board
E)fortune or bust
19

A conspiracy among firms to set prices is termed:
A)price discrimination
B)price fixing
C)unreasonable pricing
D)anti competitive pricing
E)deceptive pricing
20

The practice of charging a very low price with the intent of driving competitors out of business is:
A)dumping
B)price discrimination
C)price fixing
D)geographical pricing
E)predatory pricing





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