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Basic Pricing Policies
Discounts/Allowances
Random Questions
Pricing
Discounts/Allowances
100
Psychological pricing is a) a pricing strategy is based on the answer to the question b) defined as lowering prices temporarily to attract customers c) when an organization establishes prices that appeal to tendencies in consumer behaviour d) offered on the basis of volume purchased in units or dollars and can be offered non-cumulatively or cumulatively
c) when an organization establishes prices that appeal to tendencies in consumer behaviour
100
7. What does the manufacturer have to do when a consumer sends in a rebate card? a) Ignore it b) Sends the card back to use with purchase c) Sends a cheque back for the amount of the rebate d) Sends a 7% discount cheque on their merchandise they purchased
What is sends a cheque back for the amount of the rebate
100
What does FOB stand for? a) Freight on Board b) Buy one free c) Free on Buyer d) Fun on board
What is Freight on Board
100
What are the two of the major price-level policies? a) skimming and price reduction b) swimming and price penetration c) price reduction and price penetration d) price skimming and price penetration
What is price skimming and price penetration
100
These are given to middlemen to get attention and shelf space for a product, what are they? a) stocking reduction b) price allowance c) stocking allowance d) price reduction
What is stocking allowance
200
How many types of psychological pricing is there? a) 3 b) 7 c) 5 d) 2
What is 5
200
Discounts granted for prompt payment within a stated period a)Quantity discounts b)The dilemma of discounts c)Seasonal discounts d)Cash discounts
What is Cash Discounts
200
10. The amount by which average transportation charges exceed the actual costs of shipping for customers near the source of supply is? a) Phantom freight b) freight price c) phantom price d) freight supply
What is Phantom Freight
200
Involves offering additional products, features, and services along with the main product. a) Product-Line Pricing b)Captive-Product Pricing c)Fixed-Variable Pricining d)Optional-Feature Pricing
What is Optional-Feature Pricing
200
Discount offered by a supplier to a retail distributor for the purpose of securing shelf space in retail outlets. a)Swotting allowances b)Slotting allowances c)Shelfing allowances d)Spacing allowances
What is Slotting allowances
300
__________ is a pricing strategy based on who has the responsibility for paying the freight. a) Geographic pricing b) Psychological pricing c) Demographic pricing d) Sociographic pricing
What is Geographic Pricing
300
What is the practice of buying deal merchandise in quantities sufficient to carry a retailer through to the next deal period a) Rebates b) Performance allowance c) Seasonal discounts d) Forward buying
What is Forward buying
300
A longer-term lease, and the lessor recovers the full value of the equipment's purchase price through monthly. a) Operating Lease b) Full-pay out lease c) Fixed-Variable lease d) Product Lease
What is Full-pay out lease
300
When a product is part of a larger product mix, setting prices is more difficult. This is what? a) Product development b) Product life cycle c) Product Mix Pricing d) Product Testing
What is Product Mix Pricing
300
5. What is leasing? a) When you let your pet off the leash b) A contractual agreement where an owner, for a fee, agrees to rent an item to a consumer over a specific period of time c) Is a price reduction granted for a new product when a similar used product is turned in. d) A prenuptial agreement between the manufacturer and the final consumer
What is a contractual agreement where an owner, without a fee, agrees to rent an item to a consumer over a period of time
400
Which one does not belong in the Psychological Pricing? a) Odd- even pricing b) Price lining c) Unit pricing d) Non-unit pricing
What is Non-unit pricing
400
7. What is a trade-in allowance? a) customer receives a new product for an old product b) customer receives a price reduction for used products when purchasing a similar new product c) customer trades in their old product d) customer gets rid of their old product to buy the newest version of the product
What is customer receives a price reduction for used products when purchasing a similar new product
400
Who pays the freight for zone pricing? a) Buyer b) Seller c) Pet rock d) Government
What is Buyer
400
Involves setting one price for a set of products. a) List Price b) Fixed-Variable Pricing c) Product line pricing d) Product-bundle pricing
What is Product-bundle pricing
400
8. What is an off-invoice allowance? a) A temporary allowance that is deducted from the invoice at the time of billing b) An allowance in which the manufacturer records sales volume purchased by a customer and then pays the customer the total accumulated discount at the end of a deal period c) Discount offered by a manufacturer to a distributor who performs a d promotional function on a manufacturers behalf d) Allowance that applies to off-season or pre-season purchases
What is a temporary allowance that is deducted from the invoice at the time of billing
500
What is the lowering of prices temporarily to attract customers? a) Product Mix Pricing b) Promotional Pricing c) Geographic Pricing d) Price Lining
What is Promotional Pricing
500
What discounts are offered on the basis of volume purchased in units or dollars and can be offered non-cumulative or cumulatively? a) Cash discount b) Trade/functional discounts c) Promotional discount d) Quantity discounts
What is Quantity Discounts
500
Setting prices dictated by tradition, standardized channels of distribution, or other competitive factors, ex; on matching pricing to buyers’ expectations a) Unit Pricing b) Customary Pricing c) Price Lining d) Odd- even pricing
What is Customary Pricing
500
3.What is an example of multiple unit pricing? a) 15% off b) No sale c) 50% off d) BOG0
What is BOGO
500
Who pays the fright on F.O.B Destination or Freight Absorption? a) Buyer b) No one c) Seller d) Whoever Delivers it
What is seller