QUESTION Which of the following is an example of discounting? A) An appliance store offers each of its products at its own price and also offers a lower price if you buy two or more, such as a washer and a dryer, a stove and a refrigerator, a dishwasher and a trash compactor, and so […]
Date: September 3rd, 2020
QUESTION This strategy involves assigning regular prices to products but then resorting to frequent price-cutting strategies, such as special sales, to undercut the prices of competitors. A) psychological pricing B) bundling C) penetration pricing D) cost pricing E) discounting ANSWER Answer: E Explanation: E) Discounting, or high-low pricing, is assigning regular prices to products […]
Date: September 3rd, 2020
QUESTION What is setting a low price to attract many customers and deter competition called? A) target costing B) price skimming C) penetration pricing D) bundling E) psychological pricing ANSWER Answer: C Explanation: C) Penetration pricing is setting a low price to attract many customers and deter competition.
Date: September 3rd, 2020
QUESTION Which of the following is an example of penetration pricing? A) A local furniture store prices its products high and then holds sales such as Red Tag Specials and President’s Day Deals. B) A clothing chain with stores nationwide sells its items for the same price all the time. C) A soft drink company […]
Date: September 3rd, 2020
QUESTION Brianna’s hair care company sells shampoo, conditioner, leave-in conditioner, and styling gel. Each product sells for $13.95. The leave-in conditioner and the styling gel are not selling well, so Brianna is going to charge $25.00 for any two products. What price strategy is Brianna employing? A) bundling B) price skimming C) psychological pricing D) […]
Date: September 3rd, 2020
QUESTION What is everyday low pricing? A) With this strategy, a company starts with the price it wants to charge, figures out the profit margin it wants, then determines what the costs must be to produce the product to meet the desired price and profit goals. B) With this approach, price is determined in relation […]
Date: September 3rd, 2020
QUESTION What is bundling? A) This is the practice of pricing two or more products together as a unit. B) This is the strategy in which the cost of producing or buying the product—plus making a profit—is the primary basis for setting price. C) This involves setting a low price to attract many customers and […]
Date: September 3rd, 2020
QUESTION The cost of producing or buying the product—plus making a profit—is the primary basis for setting price in this pricing strategy. A) competitive pricing B) target costing C) cost pricing D) price skimming E) penetration pricing ANSWER Answer: C Explanation: C) Some companies favor cost pricing, in which the cost of producing or […]
Date: September 3rd, 2020
QUESTION Which kind of pricing is the technique of pricing products or services in odd rather than even amounts to make products seem less expensive? A) discounting B) price skimming C) penetration pricing D) psychological pricing E) bundling ANSWER Answer: D Explanation: D) Psychological pricing, sometimes called odd-even pricing, is the technique of pricing […]
Date: September 3rd, 2020
QUESTION Which of the following represents the pricing goal of making a profit? A) aiming for an 18 percent return on investment on the sale of milk B) lowering the price of milk to match the store across the street C) advertising milk as a loss leader to increase market share D) selling milk at […]
Date: September 3rd, 2020
