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1 | |
While many people believe shoes are simply something that you wear on your feet to protect them from the environment, many other people believe the kind of shoes a person wears makes a statement about them and their lifestyle. These people are willing to pay $400 or more for a pair of shoes because to them the price indicates quality. The marketer of these shoes would use: |
| | A) | yield management pricing. |
| | B) | target pricing. |
| | C) | customary pricing. |
| | D) | prestige pricing. |
| | E) | price lining. |
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2 | |
The prices for all fruit trees sold in Stark Bros. fruit trees and landscaping catalog end in $.99. Stark Bros. uses: |
| | A) | odd-even pricing. |
| | B) | dynamic pricing. |
| | C) | price lining. |
| | D) | bundle pricing. |
| | E) | experience curve pricing. |
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3 | |
A 61-piece set of Noritake china costs $872.99, but if you buy the pieces individually, you can expect to pay $1,137. The lower price for the set is an example of: |
| | A) | price skimming. |
| | B) | price lining. |
| | C) | penetration pricing. |
| | D) | yield management pricing. |
| | E) | bundle pricing. |
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4 | |
For which of the following products is the supplier most likely to use cost-plus-fixed-fee pricing? |
| | A) | a county water treatment plant |
| | B) | a geostationary low earth orbit (LEO) satellite system for communication |
| | C) | a mobile library |
| | D) | a cell phone tower |
| | E) | a miniature golf course |
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5 | |
The two variations of cost-plus pricing are: |
| | A) | cost-plus percentage-of-cost pricing and cost-plus fixed-fee pricing. |
| | B) | cost-plus ROI pricing and cost-minus markdown pricing. |
| | C) | target return on sales pricing and target return on investment pricing. |
| | D) | cost-plus fixed-fee pricing and cost-plus variable-fee pricing. |
| | E) | dynamic pricing and one-price pricing. |
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6 | |
Which of the following statements about cost-oriented approaches is true? |
| | A) | These methods focus on the demand side of the pricing problem and involve stimulating demand and decreasing revenue. |
| | B) | These methods focus on the supply side of the pricing problem and involve considerations of production and marketing expenses. |
| | C) | Target return on investment is an example of a cost-based method. |
| | D) | Experience curve pricing is simple to use because costs predictably decrease by 25 percent with each doubling of production. |
| | E) | Cost-oriented approaches are subcategories of competition-based methods so revenues are a critical factor. |
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7 | |
The retail price of laser printers has decreased from over $1500 to less than $200 over several years. This is due in large part to: |
| | A) | penetration pricing. |
| | B) | prestige pricing. |
| | C) | odd-even pricing. |
| | D) | experience curve pricing. |
| | E) | customary pricing. |
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8 | |
Consumers buy candy bars, snacks, and soda pop from vending machines. Traditionally, the price of each of these products is about 60 cents. If a marketer charges a significantly higher price for such products dispensed by vending machines, sales are likely to decline. In order to avoid such declines in sales, marketers tend to be very consistent in the price charged for vending machine products. This is an example of marketers employing a _____ strategy. |
| | A) | below-market pricing |
| | B) | skimming pricing |
| | C) | penetration pricing |
| | D) | customary pricing |
| | E) | loss-leader pricing |
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9 | |
In the magazine industry, subscription prices can vary depending on the method of solicitation. The magazine industry uses: |
| | A) | customary pricing. |
| | B) | flexible-price policy. |
| | C) | basing-point pricing. |
| | D) | price lining. |
| | E) | loss-leader pricing. |
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10 | |
If a safety engineer orders one pair of Tingley HazProof Boots to protect plant workers from chemical spills on the floor, the boots cost $65.65. If he orders three pairs at the same time, the price drops to $59.10 per pair of boots. This is an example of a: |
| | A) | promotional allowance. |
| | B) | cumulative quantity discount. |
| | C) | cash discount. |
| | D) | funmctional discount. |
| | E) | noncumulative quantity discount. |
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11 | |
When Ruth makes a purchase on www.ebay.com, she is responsible for paying all shipping costs for the purchased item. In fact, once the item is shipped, she owns it and should purchase insurance if it is likely to get broken while in transit. This shipping arrangement is most closely related to: |
| | A) | basing-point pricing. |
| | B) | FOB origin pricing. |
| | C) | functional pricing. |
| | D) | quantity pricing. |
| | E) | geographic pricing. |
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12 | |
The gift shop purchased four sets of Block brand hand-painted stemware expecting to sell all four at the list price of $24.99. Unfortunately, the demand for the dishes was not as high as the owner had anticipated. She was only able to sell one at this price. She reduced the price on the other three sets to $16.49 and was able to sell all three sets. The markdown percentage on the stemware was: |
| | A) | 15.2 percent. |
| | B) | 19.4 percent. |
| | C) | 34 percent. |
| | D) | 51.5 percent. |
| | E) | 66 percent. |
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