QUESTION What is competitive pricing? A) Price is determined in relation to rivals, factoring in other considerations such as market dominance, number of competitors, and customer loyalty. B) A company sets a high price to make a large profit; this can work when there is little competition. C) A company sets a low price to […]
QUESTION An athletic equipment company wants to make a new exercise bicycle with a speedometer, an odometer, a heart-rate monitor, and a small television. Which of the following describes target costing of that bicycle? A) The company will find out how many similar products already exist and the price of those products. The company will […]
QUESTION Which pricing strategy is likely to work best with specialty items? A) price skimming B) penetration pricing C) discounting D) everyday low pricing E) bundling ANSWER Answer: A Explanation: A) Price skimming is setting a high price to make a large profit; it can work when there is little competition. Specialty goods and […]
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 […]
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 […]
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.
QUESTION At this stage in developing a new product, the new product is introduced in a limited form to selected geographical markets to test consumers’ reactions. A) idea generation B) product development C) commercialization D) test marketing E) product screening ANSWER Answer: D Explanation: D) Test marketing is the introduction of a new product […]
QUESTION When assigning prices to things, one objective is to achieve a target return on investment. What is the goal of this objective? A) to create prestige B) to make products more affordable to certain people C) to attract customers D) to match or beat the competition E) to make a profit ANSWER Answer: […]
QUESTION Which of the following describes manufacturers’ brands? A) when different brand names are given to different company products B) when two noncompeting products link their brand names together for a single product C) when the same brand name is given to all or most of a company’s products D) brands attached to products by […]
QUESTION What is the primary function of the triangular box of Toblerone candy, the egg-shaped container of L’eggs pantyhose, and the flat-sided bottles of Fiji water? A) to promote the product and differentiate it from competitors B) to indicate price and universal product code C) to provide product information D) to help consumers use the […]
