Question 1

A lumber mill takes in logs, turns them into 2 x 4's and other sizes needed for building construction. Wood chips created in the milling process are a(n)  ________ that can be sold.

Accepted Answer

A)   bundled product
B)   captive product
C)   by-product
D)   optional product
E)   primary productF) A) and B)
G) B) and E)

Question 2

By definition, ________ pricing is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost.

Accepted Answer

A)   segmented
B)   variable
C)   flexible
D)   cost-plus
E)   referenceF) A) and B)
G) A) and E)

Question 3

Which of the following is true of price changes?

Accepted Answer

A)   Over-demand leads to companies initiating price cuts.
B)   Changes in price do not affect a brand's image.
C)   Customer reaction to price changes is not as important as competitor reaction.
D)   A drop in price can adversely affect how consumers view the brand.
E)   Excess capacity is a factor that causes increases in price.F) D) and E)
G) A) and C)

Question 4

Which of the following is true of optional-product pricing?

Accepted Answer

A)   It involves capitalizing on low value by-products.
B)   It involves pricing products that can be added to the base product.
C)   It is used to price a company's main product.
D)   It involves setting geographically specific prices.
E)   It is used to price products that must be used with the company's main product.F) A) and D)
G) B) and E)

Question 5

Which of the following is true of product bundle pricing?

Accepted Answer

A)   It promotes the sale of products that consumers might not otherwise buy.
B)   It is used to set prices across an entire product range based on customer evaluations.
C)   It forces customers to buy product parts that are only compatible with the main product.
D)   It results in companies making fewer-though more profitable-sales.
E)   It involves pricing the main product low and setting high markups on the supplies.F) B) and E)
G) C) and D)

Question 6

The discount offered by Glamor Gifts to customers who bought Valentine-themed merchandise the week following Valentine's Day is an example of a ________.

Accepted Answer

A)   functional discount
B)   seasonal discount
C)   trade discount
D)   cash discount
E)   time-based discountF) B) and D)
G) A) and E)

Question 7

A market-skimming pricing strategy should NOT be used for a new product when ________.

Accepted Answer

A)   the product's quality and image support its higher price
B)   enough buyers want the products at that price
C)   competitors are unable to enter the market
D)   competitors can undercut prices easily
E)   producing a smaller number of goods is feasibleF) B) and D)
G) A) and D)

Question 8

Which of the following involves adjusting prices to account for the physical location of customers?

Accepted Answer

A)   location-based pricing
B)   geographical pricing
C)   domestic pricing
D)   interior pricing
E)   captive pricingF) A) and E)
G) A) and C)

Exam 11: Pricing Strategies: Additional Considerations

Which of the following is true of optional-product pricing?

Correct Answer
verified

The discount offered by Glamor Gifts to customers who bought Valentine-themed merchandise the week following Valentine's Day is an example of a ________.

Correct Answer
verified

A lumber mill takes in logs, turns them into 2 x 4's and other sizes needed for building construction. Wood chips created in the milling process are a(n) ________ that can be sold.

Correct Answer
verified

Which of the following involves adjusting prices to account for the physical location of customers?

Correct Answer
verified

By definition, ________ pricing is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost.

Correct Answer
verified

Which of the following is true of product bundle pricing?

Correct Answer
verified

A market-skimming pricing strategy should NOT be used for a new product when ________.

Correct Answer
verified

Which of the following is true of price changes?

Correct Answer
verified

Exam 11: Pricing Strategies: Additional Considerations

Which of the following is true of optional-product pricing?

Correct AnswerverifiedShow Answer

The discount offered by Glamor Gifts to customers who bought Valentine-themed merchandise the week following Valentine's Day is an example of a ________.

Correct AnswerverifiedShow Answer

A lumber mill takes in logs, turns them into 2 x 4's and other sizes needed for building construction. Wood chips created in the milling process are a(n) ________ that can be sold.

Correct AnswerverifiedShow Answer

Which of the following involves adjusting prices to account for the physical location of customers?

Correct AnswerverifiedShow Answer

By definition, ________ pricing is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost.

Correct AnswerverifiedShow Answer

Which of the following is true of product bundle pricing?

Correct AnswerverifiedShow Answer

A market-skimming pricing strategy should NOT be used for a new product when ________.

Correct AnswerverifiedShow Answer

Which of the following is true of price changes?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified