Chapter 14 Quiz
1) What form of discount does the manufacturer issue a refund as a portion of the
purchase price returned to the buyer in the form of cash?
A. Seasonal Discount
B. Coupon
C. Rebate
D. None of the above.
2) Which of the following is a form of deceptive price advertising?
A. Pretend Prices
B. Bait and Switch
C. Heel and Toe
D. Pirated Prices
3) What is loss leader pricing?
A. Fake coupons in the Sunday paper
B. Only having a small amount of a product.
C. Redefining the marketing mix.
D. None of the above.
4) All of the following are examples of B2B pricing tactics and discounts except:
a.
Cash discounts, when the invoice cost is reduced if the invoice is paid prior to the
end of the discount period
b. Quantity discounts, reducing prices according to the amount purchased
c.
Zone pricing, setting different prices depending on the geographic areas
d. Price Lining, when marketers establish a price floor, price ceiling and other price
points representing differences in quality
5) What is an advantage zone pricing has over uniform delivered pricing?
a.
b.
c.
d.
It reflects the actual shipping charges more closely
It represents a major cost for many manufacturers
The shipper only charges one flat rate
It is more simple than uniform delivered pricing
6) A consumer-aimed pricing tactic that would attempt to build store traffic by aggressively
pricing and advertising milk, at the normal price, so customers will also buy eggs and
milk, is called:
a.
b.
c.
d.
Leader pricing
Price bundling
Price lining
Markdowns
7) Which of the following is NOT one of the pricing strategies?
a.
b.
c.
d.
8)
Which method is used to gain market share or to exploit a cost advantage they have
received?
a.
b.
c.
d.
9)
Cost-based
Consumer-based
Value-based
Competitor-based
Competitor-based pricing
Cost-based pricing
Value-based pricing
Market-based pricing
What method represents an estimate of how much more (or less) consumers are
willing to pay for a product relative to other comparable products?
a.
b.
c.
d.
Value-based method
Cost of ownership method
Improvement value method
Cost-based method
10) Which pricing strategy necessitates a great deal of consumer research to be
implemented successfully?
a.
b.
c.
d.
Research-based
Value-based
Consumer-based
Market-based
11) What is the price against which buyers compare the actual selling price of the product
and that facilitates their evaluation process?
a.
b.
c.
d.
External price
Reference price
Internal reference price
Everyday low pricing
12) What type of price is $11.99?
a.
b.
c.
d.
Everyday low pricing
High/low pricing
External price
Odd price
13) Consumers’ Use of Reference Prices, Everyday Low Pricing versus High/Low Pricing, Odd
Prices, and the Price-Quality Relationship are all:
a.
b.
c.
d.
Psychological factors affecting value-based pricing strategies
New product pricing
Pricing tactics
Pricing Strategies
14) The strategy that firms use to set a higher price for a new and/or innovative product and
then eventually lower the price is known as___________.
A) Unethical
B) Price Shaping
C) Price Altering
D) Price Skimming
15) Which of the following is not a reason why a firm would implement a price skimming
strategy?
A) To signal high quality to consumers
B) To quickly earn back any high R&D costs
C) To get the product to the public quickly
D) To limit demand
16) Which of the following is not a business-to-business pricing tactic?
A) Seasonal discounts
B) Special privileges
C) Allowances
D) Quantity discounts
17) When a firm sets a very low price for one of more of its products with the intent to drive
its competition out of business, it is using:
a)
b)
c)
d)
Price discrimination
Predatory pricing
Price fixing
Vertical price fixing
18) Predatory pricing is illegal under the:
a.
b.
c.
d.
Sherman Act
Federal Trade Commission Act
Clayton Act
Both A & B
19) When Universal Music, Sony Music, Warner Music, BMG Music, and Emi, Musicland
Stores, Trans World Entertainment, and Tower Records agreed to pay $64.5 million and
distribute $75.7 million in CDs to public and nonprofit groups to settle a lawsuit for
alleged price fixing they were practicing:
a.
b.
c.
d.
Price Discrimination
Predatory Pricing
Price Fixing
Bait-and-switch
20) With Price discrimination usually:
a.
b.
c.
d.
Answers
1) C
Smaller firms receive lower prices
Larger firms receive higher prices
Smaller firms receive higher prices
Larger firms receive lower prices
2) B
3) D
4) D
5) A
6) A
7) B
8) A
9) C
10) B
11) B
12) D
13) A
14) D
15) C
16) B
17) A
18) D
19) C
20) D