Marketing Final Exam

Blooms application 55 if an online retailer lists

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Unformatted text preview: B Reflective MSC: BLOOMS Application 55. If an online retailer lists shipping charges according to the dollar amount of merchandise purchased, you know that it is using _____ pricing. a. quantity discount b. freight absorption c. zone d. uniform delivered e. FOB origin ANS: D With uniform delivered pricing, all customers will pay the same price regardless of their location. PTS: 1 REF: 327 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Application 56. All of the following are geographic pricing methods EXCEPT: a. latitude pricing b. FOB origin pricing c. zone pricing d. freight absorption pricing e. basing-point pricing ANS: A Another geographic pricing method is uniform delivered pricing. PTS: 1 REF: 327-328 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Comprehension 57. Claxton Bakery recently began selling its fruitcakes online. If Claxton wants a simple pricing system that allows for different shipping charges depending on geographic segment or region, the company should use _____ pricing. a. two-part b. uniform delivered c. freight absorption d. flexible e. zone ANS: E Zone pricing sets freight prices according to geographic areas. PTS: 1 REF: 327-328 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Application 58. An Alabama-based catalog retailer sells fireplace equipment such as screens and andirons. Its customers in New England are charged one shipping rate, and customers west of the Rocky Mountains are charged a different rate. Customers in the midwestern states are charged yet another rate. What kind of geographic pricing is the catalog retailer using? a. FOB origin pricing b. FOB factory c. Zone pricing d. Freight absorption pricing e. Uniform delivered pricing ANS: C Zone pricing is a modification of uniform delivered pricing that divides the United States into segments or zones and a charges a flat rate to all customers in that zone. PTS: 1 REF: 327-328 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Application 59. If a company decides to divide its market area into segments or regions and charge a flat rate for freight to all customers in a given region, the company is using _____ pricing. a. zone b. uniform delivered c. freight absorption d. FOB origin e. basing-point ANS: A Zone pricing divides the total market into segments or zones and charges a flat freight rate to all customers in a given zone. PTS: 1 REF: 327-328 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Knowledge 60. Dancing Pigs Bar-B-Que Sauce is a product of the Bar-B-Q Shop located in Memphis, Tennessee. It’s also sold online for $88 a case, including shipping and handling. The Bar-B-Q shop covers the cost of shipping and uses _____ pricing policy. a. penetration b. skimming c. zone d. basing-point e. freight absorption ANS: E In freight absorption pricing, the seller pays the actual freight charge...
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