Chapter 11 Quiz
BA 3301-001
1. When pricing a new product, which of the following is setting a low price for a limited period of
time?
A. Skimming pricing
B. Trial pricing
C. Penetration pricing
D. Geographical pricing
2. Which of these is included in discounting for channel members:
A. Quantity discounts
B. Seasonal discounts
C. Trade or functional discounts
D. All of the above
3. ________________ occurs when a seller states prices or price saving that mislead consumers or
are not actually available to consumers.
A. Deceptive pricing
B. Segmented pricing
C. Promotional pricing
D. Product bundle pricing
4. Competitors making the same product jointly determine what price they will change. This is
called…
A. Predatory pricing
B. Horizontal price-fixing
C. Vertical price-fixing
D. Average fixed cost
5. Retailers will sometimes advertise at very low prices or even below cost. They will do this to
build store traffic and sales volume, this is called:
A. Predatory pricing
B. Unfair sales acts
C. Loss leader pricing
D. Bait-and-switch
6. Although profits are an important consideration in the pricing of all goods and services, they are
critical when the product _____________.
A. Is competing with newer products
B. Is a fad
C. Is a perishable good
D. Has a short shelf life
7. A technique that marketers use to examine the relationship between costs and price is…
A. Break-even analysis
B. Price analysis
C. Marginal analysis
D. Value analysis
8. Which of these is NOT a step in price planning?
A. Develop Pricing Tactics
B. Estimate Demand
C. Evaluate the Competition
D. Set Pricing Objectives
9. What are the factors in price setting?
A. Costs
B. Pricing environment
C. Demand
D. All of the above
10. Which of the following is a pricing objective?
A. All of the below
B. Competitive Effect
C. Customer Satisfaction
D. Profit
Answers:
1. B
2. D
3. A
4. B
5. C
6. B
7. A
8. C
9. D
10. A
Chapter 11 Quiz
BA 3301-01
1. What is an illegal marketing practice in which an advertised price special is used as bait to
get customers into the store with the intention of switching them to a higher priced item?
A. Bait and Switch
B. Loss ledger pricing
C. Price fixing
D. Predatory pricing
2. eBay is an example of what type of e-commerce that allows shoppers to purchase products
through bidding online?
A. Price fixing
B. Business to customer pricing
C. Online auctions
D. Business to business marketing
3. Freenomics is a business model based on the idea called _________ that encourages giving
products away for free because of the increase in profits that can be achieved by getting more
people to participate in the market.
A. Externalities
B. Bona fide
C. Fair price
D. Giveaway
4. What is not an element of price planning?
A. Set demand objectives
B. Estimate costs
C. Determine costs
D. Choose a pricing strategy
5. What is the pricing policy of setting prices very low or even below cost to attract customers
into a store?
A. Discount pricing
B. Price lining
C. Target costing
D. Loss ledger pricing
6. Which of the following is/are a pricing tactic for individual products?
A. Price bundling
B. Captive pricing
C. Two-part pricing
D. All of the above
7. Which of the following is not a tactic firms use to price members of their distribution
channels?
A. Trade or functional discounts
B. Cash discounts
C. Seasonal discounts
D. Uniform discounts
8. A pricing tactic in which the price of transporting the product from the factory to the
customer’s location is the responsibility of the customer is the definition for ______.
A. F.O.B. delivered pricing
B. Basing point pricing
C. Captive pricing
D. F.O.B. origin pricing
9. What are prestige products?
A. Products that have low price and appeal to status-conscious consumers
B. Products that have low price and does not appeal to status-conscious consumers
C. Products that have high price and appeal to status-conscious consumers
D. Products that have high price and does not appeal to status-conscious consumers
10. Develop pricing tactics is what step in the Elements of Price Planning Process?
A. Step 6
B. Step 4
C. Step 1
D. Step 5
Answers: Quiz 11
1. A
2. C
3. A
4. B
5. D
6. C
7. D
8. D
9. C
10. A