Quiz 12 (Ch 18)
A grocery store places tags on shelves just below the products that list the product number, UPC number, store code, and the regular price for the product. This regular price is called the market price.
False
A low price is a sure sell because the demand for many goods is highly elastic.
False
A price of $9.97 is less likely to appeal to customers than $9.95 or $9.99
False
A skimming pricing strategy is ineffective in marketing higher-end goods
False
Everyday low pricing is a pricing strategy that relies on short-term cost cutting tactics such as coupons and rebates.
False
Everyday low pricing strategies are an attempt to remove pricing as a significant part of the marketing mix.
False
In an FOB pricing policy, the seller pays all freight charges to transport the product from the manufacturer's loading dock.
False
List price is the amount the consumer actually pays for a product.
False
One-price policies are more likely to be applied in marketing programs based on individual bargaining.
False
Pricing is not an important issue for manufacturers or retailers.
False
Product line pricing is the practice of marketing merchandise at variable prices negotiated between buyer and seller.
False
Rebates are usually granted to customers by retailers
False
A manufacturer's list price must incorporate the costs incurred by channel members in performing required marketing functions and expected profit margins for each member.
True
Buyers of a particular new car model are being offered zero-percent financing. This is an example of a promotional allowance.
True
Controlling demand for a new product through the skimming strategy could save a company from dissatisfied customers by matching supply to demand.
True
In an attempt to simplify pricing structures, sellers will quote uniform prices that, in effect, spend the total shipping costs across all the customers.
True
Most price structures are built around list prices.
True
Odd pricing originated as a way to force clerks to make change, thus serving as a cash-control device.
True
Penetration pricing is often used in a market in which a new product is likely to face strong competition when introduced
True
Price is the only P in the marketing mix that actually generates revenue.
True
Retailers such as WalMart achieve everyday low pricing by negotiating better prices from suppliers and by cutting its own costs.
True
Skimming is an effective strategy to use when products are distinctive or have little competition
True
Skimming pricing strategies are also known as "market-plus pricing"
True
Tiffany, Rolex, Gucci, and Prada represents exclusivity, meaning their prices are mostly inelastic.
True
Unit pricing began to be widely used during the late 1960s to make price comparisons more convenient while comparing the true prices of products packaged in different sizes.
True
