Marketing Final Exam

Cbe model pricing obj 20 4 top aacsb analytic msc

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Unformatted text preview: OBJ: 20-4 TOP: AACSB Analytic MSC: BLOOMS Analysis 100. When using _____, price is not set on the product until the item is either finished or delivered. a. price shading b. escalator pricing c. delayed-quotation pricing d. bid pricing e. two-part pricing ANS: C This tactic is used for industrial installations and many accessory items. PTS: 1 REF: 333 Thinking KEY: CB&E Model Pricing 101. Delayed-quotation pricing: a. b. c. d. e. OBJ: 20-5 TOP: AACSB Reflective MSC: BLOOMS Knowledge requires the seller to place a later date on the product invoice to help accounts receivable in recording transactions allows the final selling price to reflect cost increases incurred between the time the order is placed and the final delivery takes place, often over a period of years. prevents the competitor from submitting an earlier bid requires a seller to submit a bid after the closing date is also known as price-shading bidding ANS: B Delayed-quotation pricing delays the setting of the final price. PTS: 1 REF: 333 Thinking KEY: CB&E Model Pricing OBJ: 20-5 TOP: AACSB Reflective MSC: BLOOMS Comprehension 102. A(n) _____ allows for price increases based on the cost-of-living index or some other formula. a. consumer penalty b. price shade c. price allowance d. escalator price clause e. elasticity quotient ANS: D Escalator pricing is similar to delayed-quotation pricing in that the final selling price reflects cost increases incurred between the time an order is placed and the time delivery is made, but increases based on a formula set at the beginning of the job. PTS: 1 REF: 333 Thinking KEY: CB&E Model Pricing OBJ: 20-5 TOP: AACSB Reflective MSC: BLOOMS Knowledge 103. Escalator pricing is: a. b. c. d. e. a demand-oriented pricing tactic similar to delayed-quotation pricing similar to price shading a form of market penetration pricing also called “postage stamp” pricing ANS: B Escalator pricing allows for price increases and delays the setting of the final price. PTS: 1 REF: 333 Thinking KEY: CB&E Model Pricing OBJ: 20-5 TOP: AACSB Reflective MSC: BLOOMS Comprehension 104. Business-to-business salespeople often use _____ to heighten the demand for certain items in a product line. It is a discounting practice that is often done routinely without much forethought. a. decremental pricing b. price lining c. devaluation d. price shading e. consumer discounts ANS: D Price shading is the use of discounts by salespeople to increase demand for one or more products in a line. PTS: 1 REF: 333 Thinking KEY: CB&E Model Pricing OBJ: 20-5 TOP: AACSB Reflective MSC: BLOOMS Knowledge 105. What can a marketing manager do to make demand for his or her product more inelastic? a. Eliminate brand equity b. Eliminate any unique products from the product line c. Cultivate selected demand d. Avoid making any product changes e. Implement escalator pricing ANS: C The marketing manager would need to use some demand-oriented tactic. Escalator pricing is a cost-oriented...
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This document was uploaded on 09/29/2013.

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