Research has shown that consumers tend to process prices in a "left-to-right" manner rather than
by rounding. With this knowledge which of the following prices would seem to be a better
psychological price?
a. $101.99
b. $109.50
c. $99.99
d. $100.00
e. none of the above
The most elementary pricing method is to add a standard ________ to the product's cost.
a. target margin
b. target price
c. markup
d. margin
e. target-return
Which of the following pricing techniques is both unethical and illegal?
a. Consumer differential pricing
b. Loss-leader pricing
c. High-low pricing
d. Bait and switch pricing
e. Psychological pricing
The demand for your product fell 66 percent when the price increased by 50 percent. This is an
example of what type of demand?
a. Coefficient
b. Inelastic
c. Elastic
d. Unitary
e. None of the above
Which of the following marketing techniques is considered to be illegal?
a. Comparative advertising showing competitor’s products
b. Consumer differential pricing
c. High prices
d. Private label branding
e. None of the above options are illegal
The quantity demanded of your firm's product increased only 5 percent when the price of each
unit was reduced by 33 percent. This is an example of what type of demand?
a. Elastic
b. Coefficient
c. Unitary
d. Inelastic
e. None of the above
Which of the following is NOT one of the conditions that must exist for price discrimination to
work.
a. the practice must not be illegal
b. the practice must not breed customer resentment
c. competitors must not be able to undersell the firm in the high segment
d. market must be homogeneous
e. All of the above are required conditions
Which of the following pricing techniques is illegal in the United States?
a. Consumer differential pricing
b. Premium pricing
c. Bundled pricing
d. Price fixing
e. Every Day Low Pricing
To maximize market share, a firm may use _____________ pricing which is based on the
principle that as sales volume increases, unit costs will decrease.
a. market-penetration
b. market-skimming
c. value pricing
d. demand pricing
e. price bands
In ________ the retailer charges higher prices on an everyday basis but then runs frequent
promotions in which prices are temporarily lowered below the EDLP level.
a. going-rate pricing
b. EDLP pricing
c. value pricing
d. high-low pricing
e. everyday low pricing
c. $99.99
c. markup
d.Bait and switch pricing
c. Elastic
e.None of the above options are illegal
d. Inelastic
d. market must be homogeneous
d.Price fixing
a. market-penetration
d. high-low pricing