MGM301-Chapter 11(Quiz)

Which of the following is true of promotional pricing? A. It leads to 'deal-prone' customers who buy products only during sales. B. It is extremely beneficial for the brand's profitability if practiced repeatedly. C. It makes balancing short-term sales incentives against long-term brand building unnecessary. D. It simplifies shopping for customers if used simultaneously by multiple stores E. It fortifies the brand's image in the eyes of customers if relied upon extensively

A. It leads to 'deal-prone' customers who buy products only during sales.

Which of the following price adjustment strategies involves reducing prices to reward customer responses such as volume purchases, paying early, or participating in sales-support programs? A. discount and allowance pricing B. dynamic pricing C. product bundle pricing D. product line pricing E. captive product pricing

A. discount and allowance pricing

A(n) ________ refers to promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way. A. tax credit B. allowance C.tax exemption D. discount E. sample

B. allowance

Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________ pricing. A. comparative B. competitive C. market-skimming D. market-segmentation E. cost-plus

C. market-skimming

The Sherman, Clayton, and Robinson-Patman Acts are all federal laws that were enacted to curb the formation of ________. A. internal markets B. competitive markets C. monopolies D. intrastate partnerships E. global partnerships

C. monopolies

Which of the following would most likely lead to a company initiating a price increase? A. excess capacity B. weakened economy C. over-demand D. possession of defective merchandise E. possession of outdated merchandise

C. over-demand

Which of the following product mix pricing strategies involves setting prices across an entire product range based on cost differences between the products, customer evaluations of different features, and competitors' prices? A. captive product pricing B. by-product pricing C. product line pricing D. product bundle pricing E. optional product pricing

C. product line pricing

Price discrimination is legal when a ________. A. manufacturer and reseller have agreed upon a specified retail price for a product B. seller has not communicated with competitors before announcing prices C. seller can prove its costs are different when selling to different retailers D. manufacturer sells to retailers in different markets E. seller advertises prices that are not actually available to consumers

C. seller can prove its costs are different when selling to different retailers

Under which type of geographic pricing strategy does each customer take responsibility for the freight charges for the product from the factory to its destination? A. basing-point pricing B. dynamic pricing C. uniform-delivered pricing D. FOB-origin pricing E. zone pricing

D. FOB-origin pricing

The Internet offers ________, where the price can easily be adjusted to meet changes in demand. A. price bundling B. captive pricing C. basing-point pricing D. cost-plus pricing E. dynamic pricing

E. dynamic pricing