Marketing Ch.17

Target return objective are often expressed as which two of the following?

-a percentage of capital investment -a percentage of sales

One-price policies offer which of the following advantages?

-administrative convience -customer satisfaction

Which of the following would have a direct impact on dynamic pricing?

-current demand -consumer type

Which of the following pricing objectives are sales oriented?

-dollar or unit sales growth -growth in market share

When a product or division falls to meet the target rate of return, companies will often do which of the following?

-drop the product -eliminate the division -sell the division to a competitor

Instead of competing on price, online retailers often pursue a competitive advantage over local retailers by offering which of the following?

-excellent customer service -free shipping -greater selection

Quantity discounts are designed to allow sellers to do which of the following?

-get more business -shift storage costs to consumers -reduce shipping costs

Which of the following are examples of price in different settings?

-marriot hotel room rates -Southwest Airline fares -chase mortage interest

Push money allowances are typically used for which of the following?

-new items -slower-moving items - higher-margin items

Which of the following statements about rebates are true?

-rebates often motivate customers to make purchases - many rebates are never redeemed

What two things must be clearly defined when making price decisions and using value pricing?

-relevant target market -the competition

Which of the following pricing objectives are profit oriented?

-target return -maximize profits

While the Robinson-Patman Act makes price discrimination illegal, it does allow some price differences based on which two of the following?

-the need to meet competition -cost differences

Uniform delivered pricing is most often used in which two of the following situations?

-when the seller wishes to sell in all geographic areas at one price -when transportation costs are relatively low

Push money allowances are also known as which two of the following?

PMs and spiffs

T/F Cash discounts need to be evaluated closely.

True

T/F Price is what a customer must give up in order to receive the benefits offered by the rest of a firm's marketing mix.

True

T/F Retailers that accept credit cards pay the credit card company a percentage of the revenue from each credit sale for the service.

True

The FTC provision that bans "unfair or deceptive acts in commerce" is called the ___________.

Wheeler Lea Amendment

What occurs in a "surge pricing" model in the service industry?

When demand for a service increases, prices go up

Price structures are most often built around which one of the following?

a base price schedule

The Robinson-Patman Act allows firms to justify charging different prices for similar products, so long as the justification is developed

before prices are set

Companies that participate in dumping practices, price a product in a foreign market ____________ the cost of producing it.

below

Reduction in price called ______ discounts are designed to encourage buyers to pay their bills quickly.

cash

When there is too little ________________, state governments have the power, in certain industries, to control prices.

competition

When producers offer rebates, they ensure that the final discount goes directly to the _____________.

consumer

Unlike sales figures, profit figures take __________ into account.

costs

Marketers who determine value pricing focus on how the whole marketing mix meets __________.

customers' requirements

When little is known about the shape of the ________ curve, skimming can be an especially effective pricing strategy

demand

a reduction in the price of a product is called a ___________.

discount

Phony list prices are designed to appeal to customers who look for __________ more than prices.

discounts

Firms that adjust prices rapidly as a result of changing demand and conditions are engaging in _________ pricing.

dynamic

When credit card providers and retailers who offer credit make it too easy for adult consumers to buy products when their ability to repay is in question, ____________ concerns may arise.

ethical

Over the course of a year, seasonal discounts tend to _____.

even out sales

Carrie likes to shop at her local discount retailer because it has a policy of always having the lowest list price on an item instead of relying on putting items on sale at various times. What kind of pricing policy does this store use?

everyday low pricing

The acronym F.O.B. stands for ____________.

free on board

Absorbing freight costs so that a firm's delivered price meets that of the nearest competitor is called _______ pricing.

freight-absorption

Trade discounts are also known as ____________ discounts.

functional

typically, with a cumulative quantity discount, the discount increases as the quanitity of products purchased ___________.

increase

The selling of the same products to different buyers at different prices is considered price discrimination only if it ___________-.

injuries competition

Temporarily cutting a product's price in order to hasten new products into a market is known as ____________.

introductory price dealing

Firms that aim to charge as much as their customers will pay desire to earn a rapid return on ______________-.

investments

The Robinson-Patman Act allows a business to use push money but only when ____________.

it is available to all customers on a proportionately equal basis

When multiple firms copy or improve on a product developed by another firm, the product typically becomes ________.

less expensive

a downward pressure on prices and profit margin exist in a _______________ market.

mature

Discounts that encourage larger orders without requiring future purchases are known as _______.

noncumulative quanitity discounts

When firms direct their marketing strategy on something other than price, they engage in __________.

nonprice competition

When firms set a single price for all customers, regardless of how much they buy or under what conditions they make their purchase, the firm is operating under a ________________.

one-price policy

When a firm seeks to sell the entire market at one low price, they adopt a ___________________.

penetration price policy

A price _________ is the percentage by which a price exceeds or falls short of a benchmark price.

premium

When competitors get together to raise, lower, or stabilize prices, it is called ________.

price fixing.

Firms must be careful because for each dollar of a price cut, that also means one dollar less in __.

profit

Managers who pursue sales growth rather than focusing on maximizing profits believe sales lead to ____________.

profits

Suppliers offer advertising allowances to firms in exchange for

promotion

When a firm's managers set a __________ objective, they describe their goals in terms of sales or market share rather than in terms of profit.

sales-oriented

Firms that sell their products at a high price before lowering them for more price-sensitive customers are engaging in a ____________ price policy.

skimming

When current market share is satisfactory and managers are satisfied with their profits, they often set ______________.

status quo objective

When suppliers want to see their products displayed prominently on store shelves, they offer retailers ________ allowances.

stocking

When purchasing items on sale, customers buy when the seller wants to sell instead of when _________.

the customer wants to buy

When a customer returns a used product and purchases a similar new product, price reductions called _________ allowances are sometimes given.

trade-in

Using an average freight charge for all buyers is called ____________.

uniform delivered pricing

Unfair trade practice acts most often apply at the _______ and retail levels.

wholesale

increasing market share helps firms reduce costs by improving their

economies of scale

According to a recent Supreme court ruling involving Leegin's handbags and Kay's Kloset, when manufacturers impose a minimum price for their goods, they are

acting in a legal manner

Prices that are consciously set and not based on daily market forces are known as _______-.

administered prices

Discounts that are offered to business customers, final customers, or channel members in exchange for doing something or accepting less of something are known as ______-.

allowances

Products that are shipped F.O.B. shipping point means that the buyer owns the product ___________.

as soon as it is loaded onto a vehicle at the seller's point of shipment