kotlerchapter11.docx
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kotlerchapter11
Chapter11PricingStrategies
1)Acompanysetsnotasingleprice,butrathera________thatcoversdifferentitemsinitslinethatchangeovertimeasproductsmovethroughtheirlifecycles.
A)pricingby-product
B)pricingstructure
C)pricingloop
D)pricingcycle
E)pricingbundle
Answer:
B
2)Companiesfacingthechallengeofsettingpricesforthefirsttimecanchoosebetweentwobroadstrategies:
market-penetrationpricingand________.
A)market-levelpricing
B)market-competitivepricing
C)market-skimmingpricing
D)market-pricelining
E)market-pricefilling
Answer:
C
3)Ofthefollowing,whichstatementwouldNOTsupportamarket-skimmingpolicyforanewproduct?
A)Theproduct'squalityandimagesupportitshigherprice.
B)Enoughbuyerswanttheproductsatthatprice.
C)Competitorsarenotabletoundercutthehighprice.
D)Competitorscanenterthemarketeasily.
E)CandD
Answer:
D
4)Afirmisusing________whenitchargesahigh,premiumpriceforanewproductwiththeintentionofreducingthepriceinthefuture.
A)priceskimming
B)trialpricing
C)valuepricing
D)market-penetrationpricing
E)prestigepricing
Answer:
A
5)________pricingistheapproachofsettingalowinitialpriceinordertoattractalargenumberofbuyersquicklyandwinalargemarketshare.
A)Market-skimming
B)Market-penetration
C)Below-market
D)Value-based
E)Leader
Answer:
B
6)AccentSoftwarefacestheconditionsbelow,allofwhichsupportAccent'suseofamarket-penetrationpricingstrategyEXCEPTthat________.
A)themarketishighlypricesensitive
B)productionanddistributioncostswillfallassalesvolumeincreases
C)theproduct'squalityandimagesupportahighprice
D)alowpricewouldhelpkeepoutthecompetition
E)AandC
Answer:
C
7)Whichofthefollowingisareasonthatamarketerwouldchooseapenetrationpricingstrategy?
A)toensurethecompanyhastheabilitytoincreasepricesoncedemanddecreases
B)tofocusontherapidachievementofprofitobjectives
C)toappealtodifferentconsumersegmentswithdifferentlevelsofpricesensitivity
D)tocreatemarketsforhighlytechnicalproducts
E)todiscouragecompetitionfromenteringthemarket
Answer:
E
8)Companiesusuallydevelop________ratherthansingleproducts.
A)productfamilies
B)productlines
C)productgroupings
D)productbrands
E)productimages
Answer:
B
9)Amarketermustbefamiliarwiththefivemajorproductmixpricingsituations.WhichofthefollowingisNOToneofthem?
A)productlinepricing
B)optional-productpricing
C)captive-productpricing
D)unbundledproductpricing
E)by-productpricing
Answer:
D
10)Achallengeformanagementinproductlinepricingistodecideonthepricestepsbetweenthe________.
A)variousproductsinaline
B)productmixes
C)productgroupings
D)productlines
E)varioustargetmarkets
Answer:
A
11)Whenusingpricesteps,thesellermustestablishperceived________thatsupportthepricedifferences.
A)nonpricecompetitions
B)qualitydifferences
C)quantitylevels
D)images
E)strategies
Answer:
B
12)Manyproducerswhousecaptive-productpricingsetthepriceofthemainproduct________andset________onthesuppliesnecessarytousetheproduct.
A)low;lowmarkups
B)high;lowmarkups
C)low;highmarkups
D)high;highmarkups
E)moderately;moderatemarkups
Answer:
C
13)Whenamusementparksandmovietheaterschargeadmissionplusfeesforfoodandotherattractions,theyarefollowinga(n)________pricingstrategy.
A)by-product
B)optional-product
C)captive-product
D)skimming
E)penetration
Answer:
C
14)HiPointTelephoneCompanyusestwo-partpricingforitslong-distancecallcharges.Becausethisisaservice,thepriceisbrokenintoafixedrateplusa________.
A)fixedrateusage
B)variableusagerate
C)standardusagerate
D)marketusagerate
E)noneoftheabove
Answer:
B
15)Companiesinvolvedindecidingwhichitemstoincludeinthebasepriceandwhichtoofferasoptionsareengagedin________pricing.
A)productbundle
B)optional-product
C)captive-product
D)by-product
E)skimming
Answer:
B
16)Keepinginmindthatasellermustsellby-productsatapricethatcoversmorethanthecostofstoringanddeliveringthem,whichofthefollowingwillby-productpricingpermitasellertodo?
A)increasethemainproduct'sprice
B)makeextraprofit
C)reducethemainproduct'sprice
D)noneoftheabove
E)BandC
Answer:
E
17)Withproductbundlepricing,sellerscancombineseveralproductsandofferthebundle________.
A)asaworkingunit
B)atareducedprice
C)asacompleteself-servicepackage
D)asarewardtoloyalcustomers
E)assegmentedpricing
Answer:
B
18)Whatisamajoradvantageofproductbundlepricing?
A)Itcanpromotethesalesofproductsconsumersmightnototherwisebuy.
B)Itoffersconsumersmorevalueforthemoney.
C)Itcombinesthebenefitsoftheotherpricingstrategies.
D)Itprovidesamorecompleteproductexperienceforconsumers.
E)Alloftheabove.
Answer:
A
19)WhichofthefollowingisNOTapriceadjustmentstrategy?
A)segmentedpricing
B)promotionalpricing
C)freesamples
D)geographicalpricing
E)seasonalpricing
Answer:
C
20)ServiceIndustries,Inc.,planstoofferaprice-adjustmentstrategyinthenearfuture.TheycouldconsidereachofthefollowingEXCEPT________.
A)discountandallowancepricing
B)segmentedpricing
C)physiologicalpricing
D)promotionalpricing
E)locationpricing
Answer:
C
21)Aquantitydiscountisapricereductiontobuyerswhopurchase________.
A)frequently
B)largevolumes
C)closeouts
D)inferiormerchandise
E)superiormerchandise
Answer:
B
22)Tradeorfunctionaldiscountsareofferedbymanufacturerstowhichofthefollowing?
A)channelmemberswhoperformtasksthatthemanufacturerwouldotherwisehavetoperform
B)consumerswhoearnapricereductionforbuyinginbulk
C)intermediariessuchasfinancinginstitutionsasacostofdoingbusinesswiththem
D)manufacturersthatagreetoexclusivedistributioncontracts
E)thegovernmentmarketandotherorganizationsthatrequirebidproposals
Answer:
A
23)Whichofthefollowingisanexampleofacashdiscount?
A)2/10,net30
B)$5.00withatwo-pack
C)afreecasewhenyoubuy12
D)whenyoupaycashandtaketheproductwithyou
E)noneoftheabove
Answer:
A
24)WhenGeneralMotorsprovidespaymentsorpricereductionstoitsnewcardealersasrewardsforparticipatinginadvertisingandsalessupportprograms,itisgrantinga(n)________.
A)tradediscount
B)functionaldiscount
C)allowance
D)promotionalallowance
E)tradecredit
Answer:
D
25)Quantitydiscountsprovideanincentivetothecustomertobuy________.
A)moreproductsorservicesfromavarietyofsellers
B)lessfromanothercompetitor
C)morefromonegivenseller,ratherthanfrommanydifferentsources
D)morethanheorsheneeds
E)bundledmerchandise
Answer:
C
26)Bydefinition,thistypeofpricingisusedwhenafirmsellsaproductorserviceattwoormoreprices,eventhoughthedifferenceinpriceisnotbasedondifferencesincost.
A)segmentedpricing
B)variablepricing
C)flexiblepricing
D)cost-pluspricing
E)referencepricing
Answer:
A
27)Whenafirmvariesitspricebytheseason,month,day,orevenhour,itisusing________pricing.
A)revenuemanagement
B)penetration
C)variable
D)time
E)value-added
Answer:
D
28)Airlines,hotels,andrestaurantscallsegmentedpricing________.
A)timepricing
B)yieldmanagement
C)locationpricing
D)segmented
E)servicepricing
Answer:
B
29)Whichofthefollowingconditionsshouldexistforsegmentedpricingtobeaneffectivestrategy?
A)Themarketmustbeabletobesegmented.
B)Thesegmentsmustshowdifferentdegreesofdemand.
C)Competitorscan'tundersellinthesegmentbeingchargedthehigherprice.
D)Alloftheabove.
E)Noneoftheabove.
Answer:
D
30)Consumersusuallyperceivehigher-pricedproductsas________.
A)notwithinreachofmostpeople
B)havingahigherquality
C)havinghighprofitmargins
D)popularbrands
E)beingintheintroductorystageoftheproductlifecycle
Answer:
B
31)Consumerusepricelesstojudgethequalityofaproductwhenthey________.
A)lackinformation
B)lackskillstousetheproduct
C)haveexperiencewiththeproduct
D)areshoppingforaspecialtyitem
E)cannotphysicallyexaminetheproduct
Answer:
C
32)MichaelandJohnbothownleatherjacketsandarecurrentlyshoppingfortwonewones.Theybothhavepricesinmindandrefertothemwhenshopping.Thesepricesaretermed________.
A)psychologicalprices
B)referenceprices
C)comparisonprices
D)pricepoints
E)skimmedprices
Answer:
B
33)Whichofthefollowingreferstothepricesthatabuyercarriesinhisorhermindandreferstowhenlookingatagivenproduct?
A)targetprices
B)referenceprices
C)promotionalprices
D)geographicalprices
E)dynamicprices
Answer:
B
34)Whenconsumerscannotjudgequalitybecausetheylacktheinformationorskill,pricebecomes________.
A)lessimportant
B)insignificant
C)animportantqualitysignal
D)theonlydriverofthepurchase
E)noneoftheabove
Answer:
C
35)Allofthefollowingaretypicalwaysareferencepricemightbeformedinabuyer'smindEXCEPT________.
A)notingcurrentprices
B)rememberingpastprices
C)assessingthebuyingsituation
D)comparingittoanewproduct
E)influencesfromsellers
Answer:
D
36)Whattypeofpricingisbeingusedwhenacompanytemporarilypricesitproductbelowthelistpriceorevenbelowcosttocreatebuyingexcitementandurgency?
A)segmentedprici
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