Q&A Hero

Q: Items such as large household appliances that require installation, delivery, and credit should be sold by retailers that demonstrate the buyer requirement of __________. A. information B. convenience C. variety D. pre- or postsale services E. adaptability

Q: Tylenol and Advil are two brands of over-the-counter products for ailments such as colds, headaches, sore throats, arthritis aches, and general pain and fever. Their manufacturers seek distribution of these products through drugstores such as Walgreens and CVS that have many options for customer, satisfying a buyer's desire forA. variety.B. information.C. pre-or postsale service.D. convenience.E. adaptability.

Q: Buyers are interested in having numerous competing and complementary items from which to choose. The buyer requirement for __________ is satisfied through the breadth and depth of products and brands that intermediaries carry. A. information B. convenience C. variety D. pre- or postsale services E. adaptability

Q: Channels are typically designed to satisfy one or more of four consumer buying requirements. When a membership book club allows its members to use the Internet to notify the company whether they want to receive the next month's issue, the book club is appealing to which buyer requirement? A. information B. convenience C. variety D. pre- or post-sale services E. adaptability

Q: Customer convenience is an important consideration when choosing a marketing channel. A commonly held view among website developers is the __________ where consumers will abandon their efforts to enter or navigate a website if download time exceeds this amount of time. A. one second rule B. three second rule C. eight second rule D. thirty second rule E. sixty second rule

Q: By promising to change engine oil and filters quickly, Jiffy Lube is appealing to which buyer requirement? A. information B. convenience C. variety D. pre- or postsale services E. adaptability

Q: Driving time, proximity, and hours of operation for stores, and the usability of a website are all examples of which buyer requirement? A. information B. variety C. pre- or postsale services D. adaptability E. convenience

Q: Most Apple retail stores have a Genius Bar staffed with highly trained personnel that can help customers with their purchases of iPads, iPhones, and other Apple products and services. Which buying requirement is Apple satisfying with its Genius Bar? A. context B. information C. variety D. pre- and postsale services E. adaptation

Q: Which buyer requirement would be most important in choosing a channel for a financial service for a consumer who is interested in setting up a retirement account? A. information B. context C. variety D. pre- and postsale services E. adaptation

Q: The most important consideration in choosing a marketing channel when buyers have limited knowledge or desire specific data about a product or service is to provide __________. A. postsale services B. seller adaptability C. information D. convenience E. presale services

Q: All of the following are buyer requirements for choosing a marketing channel EXCEPT: A. pre- or postsale services. B. convenience. C. variety. D. profitability. E. information.

Q: 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

Q: Talbot's sells women's clothes. A longsleeve scoopneck t-shirt with the Talbot's label costs $45. By comparison, you can buy a t-shirt for $5 at a Family Dollar Store, but it won't have the prestigious Talbot's label or quality. What kind of demand-oriented approach to pricing does Talbot's use? A. experience curve pricing B. skimming pricing C. demand-backward pricing D. prestige pricing E. flexible pricing

Q: Yield management pricing is a form of A. target pricing. B. loss-leader pricing. C. flexible pricing. D. customary pricing. E. price lining.

Q: Hallmark was an official supplier at the Winter Olympics. Hallmark presented each Olympic winner with a special bouquet of roses designed to resemble the Olympic torch. Consumers could buy a smaller version of this bouquet at the Hallmark website for $74.95. The Olympic bouquet contained two dozen yellow roses, yet one could buy two dozen yellow roses for less than $35 at most supermarkets. With the Olympic bouquet Hallmark appealed to flower buyers that wanted to make a statement, so it used which demand-oriented pricing approach? A. bundle pricing B. yield management pricing C. skimming pricing D. target return-on-sales pricing E. penetration pricing

Q: Which of the following is a form of flexible pricing? A. odd-even pricing B. yield management pricing C. above-, at-, and below-market pricing D. target pricing E. cost-plus pricing

Q: A manufacturer using __________ is setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it. A. skimming pricing B. penetration pricing C. price lining D. odd-even pricing E. prestige pricing

Q: Marketers using a flexible-price policy should take care to avoid A. requests for allowances. B. price discrimination. C. contradictory promotions. D. changes in market segmentation. E. support from government agencies.

Q: Setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it is referred to as A. skimming pricing. B. status pricing. C. price lining. D. value pricing. E. prestige pricing.

Q: A flexible-price policy allows marketers to respond to A. requests for allowances. B. threats of discrimination. C. success measures for the firm's previous promotions. D. changes in demand, cost, and competitive factors. E. inquiries by government agencies.

Q: 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.

Q: A flexible-price policy refers to A. setting the price of a line of products at a number of different specific pricing points. B. setting the 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. C. 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. D. setting different prices for products and services depending on individual buyers and purchase situations. E. adding a fixed percentage to the cost of all items in a specific product class.

Q: Prestige pricing is considered to be a __________ approach to pricing. A. demand-oriented B. cost-oriented C. profit-oriented D. competition-oriented E. service-oriented

Q: Setting different prices for products and depending on individual buyers and purchase situations is referred to as A. price lining. B. a flexible-price policy. C. customary pricing. D. price fixing. E. discretionary pricing.

Q: The manufacturer of a new kind of fat-free ice cream that has the consistency and taste of regular ice cream is thinking of using a penetration pricing strategy for its new product. Which of the following conditions would argue AGAINST using a penetration pricing strategy for the tasty dessert treat? A. The ice cream market is highly conservative. B. Economies of scale in production would be substantial. C. Retailers are not willing to carry new brands of ice cream in the already overcrowded category. D. Once the initial price is set, it is nearly impossible to lower the price without alienating early buyers. E. The ice cream market exhibits inelastic demand over a fairly broad range of prices.

Q: Tendollars.com offers thousands of gifts, all priced at $10. This is an example of a(n) __________. A. skimming pricing approach B. loss-leader pricing approach C. one-price policy D. penetration pricing approach E. everyday low pricing approach

Q: When Hallmark cards introduced a line of 99-cent cards (about half the price of the previously least expensive cards it sold), the greeting card company was trying to appeal to a mass market that was price sensitive. Hallmark was using a __________ pricing strategy. A. prestige B. skimming C. target ROI D. penetration E. experience-curve

Q: Family Dollar Stores, Dollar Value Stores, and 99"u00b2 Only Stores sell everything in their stores for $2 or less, using what type of pricing policy? A. dynamic pricing B. customary pricing C. flexible pricing D. one-price E. at-market pricing

Q: Wrigley recently introduced a new flavor of Orbit brand sugar free chewing gum - mint mojito. The introductory price was low so that it quickly created loyal customers for the flavor. In this example, Wrigley used A. skimming pricing. B. penetration pricing. C. price lining. D. odd-even pricing. E. loss-leader pricing.

Q: When you buy a used car from a CarMax dealership, you are offered the car at a single, no-haggle price. You can buy it or not, but there is no negotiating the published price because of the seller's A. customary pricing strategy. B. one-price policy. C. uniform pricing policy. D. dynamic pricing policy. E. habitual pricing strategy.

Q: When Amazon introduced the Kindle Fire tablet device at $199 while Apple was selling the lowest price iPad for $499, Amazon was using a __________ pricing strategy. A. skimming B. target C. bundle D. penetration E. loss-leader

Q: Another name for a one-price policy is A. customary pricing. B. fixed pricing. C. dynamic pricing. D. standard markup pricing. E. uniform pricing.

Q: A penetration pricing policy is most likely to be effective when A. unit production and marketing costs fall dramatically as production volumes increase. B. enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable. C. lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost. D. the high initial price will not attract competitors. E. customers interpret the high price as signifying high quality.

Q: A one-price policy refers to A. setting different prices for products and services in real time in response to supply and demand conditions. B. setting the price of an entire line of products at a single specific pricing point. C. simultaneously setting 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. D. adding a fixed percentage to the cost of all items in a specific product class. E. setting one price for all buyers of a product or service.

Q: A penetration pricing policy is most likely to be effective when A. lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost. B. the high initial price will not attract competitors. C. a low initial price discourages competitors from entering the market. D. customers interpret the high price as signifying high quality. E. enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable.

Q: Setting one price for all buyers of a product or service is referred to as __________. A. customary pricing B. a one-price policy C. a dynamic pricing policy D. standard markup pricing E. uniform pricing

Q: A penetration pricing policy is most likely to be effective when A. lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost. B. many segments of the market are price sensitive. C. the high initial price will not attract competitors. D. customers interpret the high price as signifying high quality. E. enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable.

Q: After setting an approximate price level, the marketer proceeds to which step of the price-setting process? A. Defining the scope of the product B. Seeking regulatory affirmation for the price point C. Setting the list or quoted price D. Evaluating the success of the price strategy E. Making special adjustments to the list price

Q: Which of the following statements about penetration pricing is most accurate? A. Penetration pricing is a profit-oriented approach to pricing. B. Penetration pricing is a cost-oriented pricing method. C. Penetration pricing encourages competitors to enter a market. D. Penetration pricing is more effective in a marketplace with price-sensitive consumers. E. Penetration pricing usually precedes a skimming pricing.

Q: Determining cost, volume, and profit relationships would occur during which stage of the price-setting process? A. Defining the scope of the product B. Selecting an approximate price level C. Setting the list or quoted price D. Evaluating the success of the price strategy E. Making special adjustments to the list price

Q: Penetration pricing is intended to appeal to which market? A. highly selective, quality-seeking consumers B. price-insensitive markets C. specialty product markets D. the same markets as those targeted with a skimming pricing strategy E. the mass market

Q: Estimating a break-even point would occur during which stage of the price-setting process? A. Defining the scope of the product B. Selecting an approximate price level C. Setting the list or quoted price D. Evaluating the success of the price strategy E. Making special adjustments to the list price

Q: The pricing strategy that is almost the exact opposite of skimming pricing is A. target pricing. B. penetration pricing. C. price lining. D. odd-even pricing. E. prestige pricing.

Q: Identifying pricing objectives and constraints would occur during which stage of the price-setting process? A. Selecting an approximate price level B. Defining the scope of the product C. Setting the list or quoted price D. Evaluating the success of the price strategy E. Making special adjustments to the list price

Q: Penetration pricing refers toA. charging different prices to different buyers for goods of like grade and quality.B. setting the highest initial price that customers really desiring the product are willing to pay.C. setting a low initial price on a new product to appeal immediately to the mass market.D. setting a market price for a product or product class based on a subjective feel for the competitors' prices or market price.E. setting prices a few dollars or cents under an even number.

Q: Bob Biltmore owns dozens of successful print shops in the Midwest. Biltmore's shops specialize in low-cost black-and-white copies and feature user-friendly machines consumers can easily operate. In recent months, Biltmore has noticed more competition near his stores. In an attempt to eliminate the competition, Biltmore has decided to charge a very low price for his black-and-white copies, a price so low his competitors will be forced to close. After that, Biltmore plans to raise copy prices. He plans to engage in the illegal and unethical practice of A. price fixing. B. price inflation. C. deceptive pricing. D. competitive pricing. E. predatory pricing.

Q: Penetration pricing is considered to be a __________ approach to pricing. A. demand-oriented B. cost-oriented C. profit-oriented D. competition-oriented E. service-oriented

Q: In the early 1980s, typical round-trip coach airfares from the East Coast to London were more than $500. Then Freddie Laker introduced the People's Express, a competing service into Newark at $350. Major airlines matched his price and did so until they drove People's Express out of business. Then prices shot back up to over $500. A lawsuit filed under the Sherman Act resulted in a judgment that the major airlines had explicitly tried to destroy a competitor. The People's Express case is an example of __________ on the part of the major airlines. A. price fixing B. price discrimination C. deceptive pricing D. predatory pricing E. pricing constraints

Q: The first Apple iPad was introduced in 2010 at an initial price of $650 for the 16 GB version. People waited in line overnight so they could be one of the first to own this unique tablet device. Which pricing strategy did Apple use to help recoup its research and development costs for the iPad? A. price lining B. penetration pricing C. skimming pricing D. customary pricing E. target pricing

Q: Predatory pricing is A. most effective in the growth stage of the product life cycle. B. a popular technique preferred by online businesses. C. illegal but often difficult to prosecute. D. most effective in business-to-business marketing. E. one of the most widely used pricing practices for professional marketers.

Q: The first Apple iPhone was introduced in 2007 at an initial price of $600. People waited in line overnight so they could be one of the first to own this unique smartphone. Which pricing strategy did Apple use to help recoup its research and development costs for the smartphone? A. penetration pricing B. experience curve pricing C. customary pricing D. skimming pricing E. target pricing

Q: Predatory pricing isA. an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor.B. the practice of charging different prices to different buyers for goods of like grade and quality.C. the practice of charging a very low price for a product with the intent of driving competitors out of business.D. a conspiracy among firms to set prices for a product or service.E. a seller's requirement that the purchaser of one product must also buy another product in the line.

Q: When microwave ovens were in the introduction stage of their product life cycle, some consumers were willing to pay exorbitant prices for these innovative ovens. Taking advantage of this strong consumer desire, marketers set the price for microwave ovens at the highest initial price possible. Marketers of microwave ovens used a __________ pricing strategy. A. skimming B. penetration C. prestige D. price lining E. bundle

Q: Predatory pricing refers to A. the practice of charging a very low price for a product with the intent of driving competitors out of business. B. a conspiracy among firms to set prices for a product. C. using price differentials when charging different prices on the basis of race, religion, or ethnic affiliation. D. using price differentials when charging the original price for refurbished goods that have been damaged or used and returned but repaired according to company specifications. E. controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price.

Q: A manufacturer of a digital video recorder (DVR) is thinking of using a skimming pricing strategy for its new product. Which of the following conditions would argue AGAINST using a skimming pricing strategy for the DVR? A. large potential market, even at a high price B. technological problems still exist for competitors C. increasing volume reduces production costs substantially D. consumers perceive a price-quality relationship E. consumers are innovators

Q: 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.

Q: A skimming pricing policy is likely to be most effective whenA. consumers perceive your product to be similar to other products on the market.B. a lower price will significantly lower fixed costs.C. customers interpret the high price as signifying high quality.D. consumers tend to be price sensitive.E. it will be easier to set measurable sales unit goals.

Q: A hardware store advertises a 3/8" Black and Decker Power Drill for $29.95. You enter the store intending to purchase the drill. The salesperson informs you that they are all sold out. She tells you that the sale drills were factory seconds and that if you are going to be doing any kind of serious woodworking, you should buy the Model 3309, which sells for $49.99. This scenario has elements of which type of illegal pricing practice? A. predatory pricing B. price discrimination C. price fixing D. bait and switch E. conditional bargains

Q: A skimming pricing policy is likely to be most effective when A. lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost. B. consumers tend to be price sensitive. C. it will be easier to set measurable sales unit goals. D. a lower price will significantly lower fixed costs. E. consumers perceive your product to be similar to other products on the market.

Q: When a firm offers a very low price on a product to attract customers to a store, and once in the store, the customer is persuaded to purchase a higher-priced item, the practice is referred to as A. predatory pricing. B. deceptive pricing. C. price discrimination. D. caveat emptor. E. bait and switch.

Q: To promote their business, some psychics advertise free tarot-card readings and other insights into their customers' futures on television. Unfortunately, this "free reading" has cost some unsuspecting callers as much as $700 in phone charges. This sort of pricing practice would be primarily monitored by the A. Consumer Protection Agency. B. U.S. Department of Justice. C. Federal Trade Commission. D. Federal Communications Commission. E. Consumer Product Safety Commission.

Q: A skimming pricing policy is likely to be most effective when A. consumers tend to be price sensitive. B. it will be easier to set measurable sales unit goals. C. a lower price will significantly lower fixed costs. D. consumers perceive your product to be similar to other products on the market. E. customers are willing to buy immediately at the high initial price.

Q: Deceptive pricing practices are outlawed by legislation and enforced by which federal agency? A. Consumer Protection Agency B. U.S. Department of Justice C. Federal Communications Commission D. U.S. Department of Commerce E. Federal Trade Commission

Q: Price deals that mislead consumers fall into the category of A. predatory pricing. B. deceptive pricing. C. price discrimination. D. caveat emptor. E. resale price maintenance.

Q: Skimming pricing refers to A. setting the lowest initial price possible when introducing a new or innovative product in order to skim sales from competitors. B. setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product. C. setting a low initial price on a new product to appeal immediately to the mass market. D. the practice of replacing promotional allowances with higher manufacturer list prices. E. setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

Q: In one of its least favorite actions, Amazon.com was caught fiddling with its prices. Avid DVD buyers, buying in quantity for resale, found that the online retailer was offering different customers different prices for the same DVD, and complained vociferously. Company officials admitted that the company was trying to see how much it could charge for an item before buyers balked. Amazon was caught attempting A. horizontal price-fixing. B. price discrimination. C. resale price maintenance. D. predatory pricing. E. bait and switch pricing.

Q: Setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product is referred to as a A. skimming strategy. B. penetration strategy. C. price-lining strategy. D. experience-curve pricing strategy. E. prestige pricing strategy.

Q: Price discrimination is illegal under the A. Sherman Act. B. Consumer Goods Pricing Act. C. Robinson-Patman Act. D. Federal Trade Commission Act. E. Anti-Competitive Act.

Q: Skimming pricing is considered to be a __________ approach to pricing. A. demand-oriented B. cost-oriented C. profit-oriented D. competition-oriented E. service-oriented

Q: The practice of charging different prices to different buyers for goods of like grade and quality is referred to as A. horizontal price-fixing. B. resale price maintenance. C. price discrimination. D. predatory pricing. E. bait and switch pricing.

Q: Price discrimination refers toA. the practice of charging different prices to different buyers for goods of like grade and quality.B. an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor.C. the practice of charging a very low price for a product with the intent of driving competitors out of business.D. a conspiracy among firms to set prices for a product or service.E. a seller's requirement that the purchaser of one product also buy another product in the line.

Q: 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

Q: Mark Johnson, the manager of a discount consumer electronics store, was approached by the manufacturer's representative on behalf of a marketer of a popular and profitable line of storage racks. The manufacturer's representative implied that if Johnson doesn't raise the retail prices for the storage racks to those paid by the marketer's non-discount customers, Johnson's supply of racks may be severely curtailed. The manufacturer's representative is guilty of attempting A. horizontal price-fixing. B. vertical price-fixing. C. price discrimination. D. predatory pricing. E. bait and switch pricing.

Q: Which of the following statements about the price-setting process is most accurate? A. When selecting a strategy for setting an initial price, it does not matter which one you use as long as you stick with it. B. Sometimes pricing strategies overlap, and a seasoned marketer will consider several strategies when choosing an approximate price level. C. Demand-oriented pricing approaches rely heavily on competitors' prices. D. Skimming pricing is a competition-oriented pricing strategy. E. Penetration pricing is the best pricing strategy for companies trying to meet the goals of a profit-oriented pricing approach.

Q: Vertical price fixing refers toA. two or more competitors explicitly or implicitly setting prices.B. the practice of charging different prices to different buyers for goods of like grade and quality.C. controlling agreements between independent buyers and sellers whereby sellers are required not to sell products below a minimum retail price.D. a conspiracy among firms to set prices for a product or service.E. a seller's requirement that the purchaser of one product also buy another product in the line.

Q: Figure 11-2 Figure 11-2 above represents the four approaches to selecting an appropriate price level. Box D includes customary and loss leader so it represents which approach? A. competition-oriented approach B. cost-oriented approach C. profit-oriented approach D. results-oriented approach E. demand-oriented approach

Q: Controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price is called A. competitive collusion. B. price cooperation. C. horizontal price fixing. D. lateral price fixing. E. vertical price fixing.

Q: Figure 11-2 Figure 11-2 above represents the four approaches to selecting an appropriate price level. Box C includes target profit and target return on sales so it represents which approach? A. demand-oriented approach B. profit-oriented approach C. competition-oriented approach D. cost-oriented approach E. results-oriented approach

Q: Two or more competitors explicitly or implicitly setting prices is referred to as __________. A. competitive collusion B. vertical price fixing C. horizontal price fixing D. lateral price fixing E. price cooperation

Q: Figure 11-2 Figure 11-2 above represents the four approaches to selecting an appropriate price level. Box B includes standard markup and cost-plus so it represents which approach? A. demand-oriented approach B. profit-oriented approach C. competition-oriented approach D. results-oriented approach E. cost-oriented approach