Quiz Questions

15-1. A key to setting a final price for a product is to find a(n):

a. best guess price
b. approximates price level
c. gut-level price
d. competition price level
e. throw a dart

15-2. Setting the highest initial price is called price:

a. penetration
b. gouging
c. parity
d. skimming
e. posturing

15-3. Setting a low initial price on a new product to appeal to a mass market is price:

a. gouging
b. skimming
c. penetration
d. parity
e. posturing

15-4. Using price as a measure of the quality of a product and setting price high is:

a. prestige pricing
b. price lining
c. parity pricing
d. odd-even pricing
e. target pricing

15-5. The marketing of two or more products in a single "package" price is called:

a. target pricing
b. bundle pricing
c. odd-even pricing
d. price lining
e. prestige pricing

15-6. When seats on an airline flight are priced differently then what kind of pricing is being used?

a. skimming pricing
b. penetration pricing
c. prestige pricing
d. price lining
e. yield management pricing

15-7. When the price setter stresses the supply or cost side of the pricing problem they are using what approach?

a. standard-orientation
b. cost-oriented
c. demand-oriented
d. target-oriented
e. make-up pricing

15-8. Summing the total unit cost of providing a product and adding a specific amount to the cost to arrive at a price is called:

a. demand-plus pricing
b. standard-plus pricing
c. target-plus pricing
d. standalone pricing
e. cost-plus pricing

15-9. A price setter may chose to balance both revenue and costs to set price using:

a. cost-oriented approach
b. standard-oriented approach
c. profit-oriented approach
d. target-approach
e. standalone approach

15-10. Some products are priced based on what tradition or other competition factor dictate. This is called:

a. ROI pricing
b. target profit pricing
c. cost-oriented pricing
d. odd-even pricing
e. customary pricing

15-11. When a company sets the same price for all customers then they use a:

a. simple-price policy
b. one-price policy
c. unit-price policy
d. equality-price policy
e. flexible-price policy

15-12. A manager's pricing decision is immediately apparent to most competitors through what is called the:

a. market effects
b. challenge effects
c. competitive effects
d. customer effects
e. company effects

15-13. Reductions from list price given by the seller are called:

a. reductions
b. lower price
c. coupon pricing
d. special rate prices
e. discounts

15-14. To encourage customers to buy larger quantities of a product firms offer a special discount commonly known as a:

a. seasonal discount
b. quantity discount
c. functional discount
d. trade discount
e. cost discount

15-15. Quantity discounts are of two general kinds:

a. noncumulative and cumulative
b. total and sub-total
c. once and tracked total
d. quarterly and daily
e. daily and yearly

15-16. To encourage retailers to pay their bills quickly, manufacturers offer a special discount:

a. seasonal discounts
b. functional discounts
c. trade discounts
d. cash discount
e. cumulative discount

15-17. When sellers in the channel undertake certain advertising or selling activities to promote a product they can qualify for:

a. geographical adjustments
b. trade-in allowances
c. promotional allowances
d. special allowances
e. advertising allowances

15-18. FOB origin pricing means:

a. fright on board
b. flight on board
c. fluid on box
d. free on board
e. fortune or bust

15-19. A conspiracy among firms to set prices is termed:

a. price discrimination
b. price fixing
c. unreasonable pricing
d. anti competitive pricing
e. deceptive pricing

15-20. The practice of charging a very low price with the intent of driving competitors out of business is:

a. dumping
b. price discrimination
c. price fixing
d. geographical pricing
e. predatory pricing