MKT 3300 Quiz 14

10. The practice of charging a very low price for a product with the intent of driving competitors out of business is referred to as a. price fixing. b. predatory pricing. c. price discrimination. d. deceptive pricing. e. geographical pricing.

b

4. What do 60 percent of prospective buyers dread about looking for a new car? a. selecting the preferred brand b. negotiating the price c. taking a test drive d. experiencing postpurchase dissonance e. searching for cars on the Internet

b

6. The four types of discounts are a. quantity, trade-in, promotional, and cash. b. quantity, seasonal, trade (functional), and cash. c. quantity, seasonal, promotional, and FOB. d. cash, trade-in, seasonal, and promotional. e. trade-in, promotional, geographic, and functional.

b

8. To encourage retailers to pay their bills quickly, manufacturers offer them a. quantity discounts. b. cash discounts. c. flexible pricing policies. d. promotional allowances. e. manufacturer's inducements.

b

7. To encourage buyers to stock inventory earlier than their normal demand would require, manufacturers often use a. noncumulative discounts. b. cumulative discounts. c. seasonal discounts. d. trade discounts. e. functional discounts.

c

1. The key to setting a final price for a product is finding an approximate price level to use as a reasonable starting point. Four common approaches to selecting an approximate price level are: (1) demand-oriented; (2) cost-oriented; (3) profit-oriented; and (4) __________ approaches. a. revenue-oriented b. distribution-oriented c. stakeholder-oriented d. competition-oriented e. cause-oriented

d

3. Prestige pricing refers to a. charging different prices to different buyers for goods of like grade and quality. b. setting a low initial price on a new product to appeal immediately to the mass market odd-even pricing. c. setting a market price for a product or product class based on a subjective feel for the competitors' price or market price. d. setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it. e. setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors.

d

5. Product-line pricing refers to a. setting the price of a line of products at a number of different specific pricing points. b. deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well. c. adding a fixed percentage to the cost of all items in a specific product class. d. setting of prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item. e. the marketing of two or more products in a single package.

d

9. Price fixing refers to a. an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor. b. the practice of charging a very low price for a product with the intent of driving competitors out of business. c. the practice of charging different prices to different buyers for goods of like grade and quality. d. a conspiracy among firms to set prices for a product. e. a seller's requirement that the purchaser of one product also buy another product in the line.

d

2. Demand-oriented approaches weigh factors that underlie expected __________ more heavily than such factors as cost, profit, and competition when selecting a price level. a. total revenue b. stakeholder concerns c. prevailing prices d. product substitutes e. customer tastes

e