MK201 quiz 8

In ________, the market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities. a. pure competition b. monopolistic competition c. a pure monopoly d. oligopolistic competition e. a pure monopsony

a. pure competition

Which of the following sets the lower limit for a product's pricing? a. consumer perceptions of value b. product costs c. profits d. competition e. elements of the product mix

b. product costs

________ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk. a. Demand-based b. Value-added c. Cost-based d. Good-value e. Competition-based

c. Cost-based

When Nabisco offers to cover half the cost of all local advertising for supermarkets that sell Oreo Cookies, the company is granting ________. a. trade-in allowances b. quantity discounts c. promotional allowances d. cash discounts e. seasonal discounts

c. promotional allowances

Which of the following pricing strategies charges the same price plus freight to all customers, regardless of their location? a. zone pricing b. basing-point pricing c. uniform-delivered pricing d. FOB-origin pricing e. freight-absorption pricing

c. uniform-delivered pricing

Salon Du Jour offers special combination packages at a reduced price. Separately, a haircut is $30 and a conditioning treatment is $35. But the combo price is $50. This is referred to as ________ pricing. a. product line b. optional-product c. captive-product d. product bundle e. by-product

d. product bundle

_______ is the sum of all the values that customers give up to gain the benefits of having or using a product or service. a. Profit b. Salary c. Cost d. Payroll e. Price

e. Price

Establishing prices for razor blades that must be used with a razor blade system is known as ________ pricing. a. product line b. product bundle c. market-penetration d. by-product e. captive-product

e. captive-product

The first generation Apple iPod was introduced in 2001 and sold for $500. The following year a mini version was introduced for $250. Apple initially used a ________ strategy to price their digital music innovation. a. deceptive b. predatory c. target costing d. market-penetration e. market-skimming

e. market-skimming

A ________ pricing strategy for an offering begins with an assessment of customer needs and perceptions. Then a target price is set based on customer perceptions of worth. a. target costing b. cost-based c. competition-based d. value-added e. value-based

e. value-based