Marketing Final Exam

Or displays to a retailer in return for promotion of

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Unformatted text preview: sed to offer free goods or displays to a retailer in return for promotion of a manufacturer’s products, or it may pay for some or all of the advertising costs. PTS: 1 Thinking REF: 325 OBJ: 20-3 TOP: AACSB Reflective KEY: CB&E Model Pricing MSC: BLOOMS Application 45. _____ are cash refunds given for the purchase of a product during a specific period. a. Rebates b. Loss leaders c. Reciprocal allowances d. Demand discounts e. Promotional allowances ANS: A This is the definition of a rebate. PTS: 1 REF: 325 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Knowledge 46. _____ occurs when a firm is customer driven and seeks to understand the attributes customers want in the goods and services they buy and the value of those attributes to customers. Thus, the price of the product is set at a level that seems to the customer to be a good price compared with the prices of other options. a. Value-based pricing b. Noncumulative pricing c. CRM pricing d. Market concept pricing e. Price bundling ANS: A Instead of figuring prices based on costs or competitors’ prices, value-based pricing starts with the customer, considers the competition, and then determines the appropriate price. PTS: 1 REF: 325-326 Thinking KEY: CB&E Model Pricing 47. With value-based pricing: a. b. c. d. e. OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Knowledge the firm is sales driven the firm is both customer driven and competitor driven increased profitability for wholesalers will increase the number of services they are willing to perform consumers are more concerned about price than quality additional long-term costs to manufacturers will increase ANS: B The basic assumption is that the firm is customer driven, seeking to understand its customers. Because it is unlikely to be operating as a monopoly, it must also pay attention to what its competitors are doing. PTS: 1 REF: 325-326 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Analysis 48. One pharmaceutical manufacturer did not price a new antiulcer drug by adding up the costs of developing and manufacturing the medication and tacking on the amount of profit it wanted to make. Instead, the company justified a higher price than it might otherwise have been able to get from medical insurers by using studies that showed the new drug could help patients avoid expensive surgery and save the insurance companies money. The pharmaceutical company used: a. value-based pricing b. noncumulative pricing c. CRM pricing d. price bundling e. market concept pricing ANS: A Value-based pricing occurs when a firm is customer driven and seeks to understand the attributes customers want in the goods and services they buy and the value of those attributes to customers. Thus, the price of the product is set at a level that seems to the customer to be a good price compared with the prices of other options. PTS: 1 REF: 325-326 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AA...
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This document was uploaded on 09/29/2013.

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