Chapter 11 Quiz Marketing

________ is a pricing strategy that involves pricing a product higher than competitors to signal that it is of higher quality. Multiple Choice Odd pricing Break-even pricing Markup pricing Prestige pricing Price bundling

Prestige Pricing

Which statement is true regarding the influence of technology on pricing? Multiple Choice The Internet has made it difficult for customers to compare prices of products. Customers are more confused about prices than ever before. Technology has eliminated antiquated pricing structures like mark-up pricing or demand pricing. Marketers of online stores review their initial prices against the prices of traditional brick-and-mortar stores but not vice-versa. Technology has helped to shift the balance of power from companies to customers.

Technology has helped to shift the balance of power from companies to customers

Which statement is true of markup pricing? Multiple Choice It is one of the least used pricing tactics. It is the most difficult of the pricing tactics to implement. It is not very effective at maximizing profits. It involves pricing a product higher than competitors in order to promote an image of superior quality. It is estimated by adding a certain amount to the profit of a product to set the final price.

WRONG: It is estimated by adding a certain amount to the profit of a product to set the final price.

Nadine, the marketing manager at Prime Inc., is in the process of setting prices. She has finished analyzing the competitive price environment. According to the price-setting process, what should be Nadine's immediate next step? Multiple Choice define the pricing objectives monitor and evaluate the effectiveness of the price determine the costs choose a price evaluate demand

WRONG: define the pricing objectives

Sam's Ski Shop advertised a popular line of skis stating that the skis were "originally priced at $625" and that they are now on sale for $249. However, the manufacturer's suggested retail price of the skis is only $515. Sam's Ski Shop could be accused of Multiple Choice price fixing. deceptive pricing. unfair markup. price discrimination. predatory pricing.

deceptive pricing

What is the first step in the price-setting process? Multiple Choice evaluate demand analyze the competitive price environment determine the costs choose a price define the pricing objectives

define the pricing objectives

________ involves constantly updating prices to reflect changes in supply, demand, or market conditions. Multiple Choice Price bundling Dynamic pricing Price fixing Break-even analysis Unbundling

dynamic pricing

Lincoln's landlord has included a clause in the rental contract that makes it possible for him to increase Lincoln's monthly rent if taxes on the property go up. Which clause was included in the contract? Multiple Choice elastic demand clause tariffs clause elevator clause variable costs clause escalator clause

escalator clause

The ________ is a law passed in 1914 that seeks to prevent practices that may cause injury to customers, that cannot be reasonably avoided by customers, and that cannot be justified by other outcomes that may benefit the consumer or the idea of free competition. Multiple Choice Wheeler-Lea Act Federal Trade Commission Act Robinson-Patman Act Anti-Price Discrimination Act Advertising Act

federal trade commission act

Which statement is true of gray markets? Multiple Choice Gray market goods can be a boon for consumers. Gray markets have helped to shift the balance of power from customers to companies. Gray market exchanges have become more difficult than ever. Gray markets raise the prices that customers must pay for goods. Firms find it easy to track exactly how much of their products sell in the gray market.

gray market goods can be a boon for customers

Predatory pricing is considered illegal because it Multiple Choice is considered an attempt to create a monopoly. involves intentionally misleading customers with price promotions. allows companies to continually change pricing based on changes in supply or demand. allows companies to charge different customers different prices for the same product. sets pricing based on collusion between companies.

is considered an attempt to create a monopoly.

Comfort Scents, a manufacturer of scented products, has decided to sell a combination package of three fall-inspired candles: autumn breeze, falling leaves, and crackling fire. This package is priced marginally higher than the individual candles alone. Given this information, we can come to the conclusion that the marketers of Comfort Scents have applied the ________ strategy. Multiple Choice price bundling price fixing odd pricing dynamic pricing prestige pricing

price bundling

Decisions regarding ________ are one of the most important strategic decisions a firm faces because this element reflects the value the product delivers to consumers as well as the value the product captures for the firm. Multiple Choice customers competition pricing distribution promotion

pricing

The objective of strategic pricing is Multiple Choice profitability. elasticity. yield management. sustainability. analysis.

profitability

Which calculation correctly determines the profits of a firm? Multiple Choice profits = (units sold + price) * costs profits = (units sold / price) − costs profits = (units sold * price) − costs profits = (units sold * price) + costs profits = (units sold / price) + costs

profits = (units sold * price) − costs

The prices that consumers consider reasonable and fair for a product are termed ________ prices. Multiple Choice reference break-even survival markup inelastic

reference

Arctic Treats is an ice-cream shop. Its marketing strategy from the month of November to February is "buy one get one free." Which of the following best describes the strategy applied by Arctic Treats? Multiple Choice even pricing generous pricing markup pricing seasonal discounts odd discounts

seasonal discounts

Tariffs are ________ on imports and exports between countries. Multiple Choice license agreements bans discounts mark-ups taxes

taxes

The term black market is best described as Multiple Choice taking branded products and selling them through legal but unauthorized distribution channels. the process of two or more companies colluding to set a product's price. the practice of charging different customers different prices for the same product. a company selling its exports to another country at a lower price than it sells the same product in its domestic market. the illegal buying and selling of products outside of sanctioned channels.

the illegal buying and selling of products outside of sanctioned channels

The owner of a home furnishings store has decided to price the three types of clocks it sells at $24.99, $49.99, and $69.99. From this information, we can say that the owner is pursuing a(n) ________ pricing strategy. Multiple Choice reference markup odd price prestige

odd