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100
A) Payroll B) Profit C) Price D) Cost E) Salary
What is the term for the amount of money charged for a product or service.
100
________ costs are also known as overhead.
What is A) Fixed B) Variable C) Target D) Capital E) Payroll
100
A firm uses ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future.
What is A) market-skimming pricing B) target costing C) deceptive pricing D) market-penetration pricing E) predatory pricing
100
NerdHerd Electronics sells three different sizes of televisions at three different prices. In this case, the company's pricing strategy is referred to as ________ pricing.
What is A) product line B) optional-product C) by-product D) product bundle E) captive-product
100
This group is most likely offered functional discounts by manufacturers.
What is A) trade-channel members that perform sales tasks B) consumers who buy products in large quantities C) buyers who pay their bills before the due date D) buyers who purchase merchandise out of season E) retailers that participate in advertising programs
200
One of the following sets the upper limit for a product's pricing.
A) profits B) product costs C) consumer perceptions of value D) elements of the product mix E) competition
200
Costs that change directly with the level of production are referred to as ________ costs.
What is A) fixed B) variable C) target D) capital E) payroll
200
The strategy of setting a low initial price to attract a large number of buyers quickly and win a large market share is referred to as ________.
What is A) market-skimming pricing B) market-penetration pricing C) value-added pricing D) target costing E) deceptive pricing
200
Selling accessory products along with the main product is referred to as ________ pricing.
What is A) product bundle B) optional-product C) market-penetration D) by-product E) product line
200
Glow, a gift card store, offers a price reduction to customers who buy Christmas cards the week after Christmas. In this case, the store offers a ________.
What is A) functional discount B) seasonal discount C) promotional allowance D) trade-in allowance E) quantity discount
300
Value-based pricing is the reverse process of ________ pricing.
What is A) good-value B) target costing C) cost-based D) value-added E) competition-based
300
________ costs refer to the sum of the fixed and variable costs for any given level of
What is A) Target B) Marginal C) Value-based D) Total E) Break-even
300
Qriosity Inc. released a new antivirus program at half-price to attract buyers. This is most likely an example of ________.
What is A) market-skimming pricing B) market-penetration pricing C) optional-product pricing D) by-product pricing E) allowance pricing
300
Setting a price for products that must be used along with a main product is known as ________ pricing.
What is A) by-product B) market-penetration C) product line D) product bundle E) captive-product
300
Vac "N" Sew, a consumer electronics outlet, offers a price reduction of $100 when customers bring in a used vacuum cleaner and exchange it for a new vacuum cleaner or sewing machine. This is an example of a ________.
What is A) functional discount B) cash discount C) seasonal discount D) trade-in allowance E) by-product allowance
400
________ pricing involves charging a constant low price with few or no temporary price
What is A) High-low B) Target return C) Cost-plus D) Everyday low E) Market-skimming
400
________ pricing is when a firm tries to determine the price at which it will break even or make the profit it is seeking.
What is A) Competition-based B) Target return C) Cost-plus D) Good-value E) Value-added
400
This condition is most likely essential for implementing a successful market-skimming pricing strategy for a product.
What is A) The product's quality and image support its high price. B) Lower-priced alternatives can enter the market easily. C) Low prices promote more market growth than high prices. D) The product's price matches its manufacturing costs. E) A low-price position of the product is maintained.
400
This is how firms that use captive-product pricing make up for the low prices of their main products.
What is A) They reduce the cost of the captive products. B) They provide the captive products as freebies. C) They set high markups on the captive products. D) They increase the price of the main products. E) They offer the captive products and main products together at a reasonable price.
400
When Luxury Motors gives price reductions to its new car dealers to reward them for participating in advertising and sales support programs, the firm is granting ________.
What is A) cash discounts B) seasonal discounts C) quantity discounts D) promotional allowances E) trade-in allowances
500
Rent, electricity, and executive salaries that do not vary with production level are referred to as ________ costs.
What is A) fixed B) variable C) break-even D) target E) promotional
500
This is an external factor that affects pricing decisions?.
What is A) the marketing mix B) competition C) top management D) marketing objectives E) marketing strategy
500
This condition is most likely essential for implementing a successful market-penetration pricing strategy for a product?
What is A) The product's quality supports its high price. B) Alternative products can enter the market easily. C) The market for the product is highly price sensitive. D) Prices increase incrementally as sales volume increases. E) Production costs rise with an increase in marketing efforts.
500
Netcorp, an Internet service provider, charges its users a fixed rental fee for its basic package, which has a download limit. If a user exceeds this download limit, an additional fee is charged for every download. In this case, the firm's pricing strategy is referred to as ________ pricing.
What is A) by-product B) two-part C) optional-product D) segmented E) promotional
500
Metro Museum has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________ pricing.
What is A) time-based B) location-based C) customer-segment D) by-product E) product form