mar 216 quiz

Question 1 (2 points)

Vac "N' Sew will give customers $100 for a used vacuum cleaner, regardless of condition, when they purchase a new vacuum or sewing machine. This essentially reduces the price by $100. What is this type of discount called?

Question 1 options:

a) 

functional discount

b) 

captive product discount

c) 

seasonal discount

d) 

trade-in allowance

e) 

by-product allowance

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Question 2 (2 points)

With product bundle pricing, sellers can combine several products and offer the bundle ________.

Question 2 options:

a) 

as a working unit

b) 

at a reduced price

c) 

as a complete self-service package

d) 

as a reward to loyal customers

e) 

as segmented pricing

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Question 3 (2 points)

________ refers to selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business.

Question 3 options:

a) 

Oligopolistic pricing

b) 

Captive pricing

c) 

Dynamic pricing

d) 

Zone pricing

e) 

Predatory pricing

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Question 4 (2 points)

Qriosity Inc. comes out with a new antivirus program and prices it at half price to attract buyers. The company is using ________.

Question 4 options:

a) 

marketing-skimming pricing

b) 

market-penetration pricing

c) 

value-added pricing

d) 

reference pricing

e) 

promotional allowances

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Question 5 (2 points)

A company sets not just a single price, but rather a ________ that covers different items in its line that change over time as products move through their life cycles.

Question 5 options:

a) 

pricing by-product

b) 

pricing structure

c) 

pricing loop

d) 

pricing cycle

e) 

pricing bundle

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Question 6 (2 points)

The relationship between the price charged and the resulting demand level can be shown as the ________.

Question 6 options:

a) 

demand curve

b) 

supply curve

c) 

cost curve

d) 

break-even chart

e) 

inflation rate

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Question 7 (2 points)

When a manufacturer offers a ________, customers buy products from manufacturers' dealers within a specified time period and the manufacturer sends the customer a check.

Question 7 options:

a) 

cash rebate

b) 

markup price

c) 

dealer reduction

d) 

flash sale

e) 

functional discount

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Question 8 (2 points)

Rent, electricity, and executive salaries are examples of ________ costs.

Question 8 options:

a) 

fixed

b) 

variable

c) 

break-even

d) 

target

e) 

marketing

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Question 9 (2 points)

________ prices are the prices that a buyer carries in his/her mind and refers to when looking at a given product.

Question 9 options:

a) 

Captive product

b) 

Reference

c) 

Promotional

d) 

Geographical

e) 

Dynamic

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Question 10 (2 points)

________ pricing is the approach of setting a low initial price in order to attract a large number of buyers quickly and win a large market share.

Question 10 options:

a) 

Market-skimming

b) 

Market-penetration

c) 

Above-market

d) 

Value-based

e) 

Follow-the-leader

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Question 11 (2 points)

Under ________, the market consists of a few large sellers who are highly sensitive to each other's pricing and marketing strategies.

Question 11 options:

a) 

pure competition

b) 

monopolistic competition

c) 

oligopolistic competition

d) 

a pure monopoly

e) 

pure monopsony

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Question 12 (2 points)

Producers use captive product pricing to set the price of the main product ________ and set ________ on the supplies necessary to use the product.

Question 12 options:

a) 

low; low markups

b) 

high; low markups

c) 

low; high markups

d) 

high; high markups

e) 

moderately; moderate markups

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Question 13 (2 points)

Which of the following is a reason for a company to raise its prices?

Question 13 options:

a) 

to address the issue of overdemand for a product

b) 

to win a larger share of the market

c) 

to use excess capacity

d) 

to boost sales volume

e) 

to balance out decreasing costs

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Question 14 (2 points)

If Dell charges the same price for delivery of its product to any customer that is located within the Great Lakes states, the company is using ________.

Question 14 options:

a) 

psychological pricing

b) 

promotional pricing

c) 

reference pricing

d) 

zone pricing

e) 

uniform-delivered pricing

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Question 15 (2 points)

Value-based pricing is the reverse process of ________ pricing.

Question 15 options:

a) 

variable cost-based

b) 

cost-plus

c) 

cost-based

d) 

good-value

e) 

equity value-based

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Question 16 (2 points)

Consumers use price less to judge the quality of a product when they ________.

Question 16 options:

a) 

lack information

b) 

lack skills to use the product

c) 

have experience with the product