Marketing Final Exam

Pass the charges along to the customer pts 1 ref 328

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Unformatted text preview: s and does not pass the charges along to the customer. PTS: 1 REF: 328 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Application 61. If the seller pays all or part of the actual freight charges and does not pass them on to the buyer, the seller is using _____ pricing. a. freight absorption b. uniform delivered c. zone d. FOB origin e. basing-point ANS: A This is the definition of freight absorption pricing, and the manager may use this tactic in intensely competitive areas or as a way to break into a new market. PTS: 1 REF: 328 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Knowledge 62. If a manufacturer designates a shipping point from which to calculate all freight charges and charges customers the freight costs from that point (even if the goods were shipped from another location), the manufacturer is using _____ pricing. a. freight absorption b. uniform delivered c. zone d. FOB origin e. basing-point ANS: E With a basing-point price, the seller designates a location as a basing point and charges all buyers the freight costs from that point. PTS: 1 REF: 328 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Knowledge 63. A national manufacturer of car parts has six warehouses and has a pricing policy of charging freight from the closest warehouse to the customer, regardless of where parts are shipped from. For instance, if the customer is in Vancouver, British Columbia, the closest warehouse to the customer is in Seattle, Washington. If the ordered car part actually comes from the Alabama warehouse, the customer still pays freight from Seattle. The manufacturer uses _____ pricing. a. FOB origin b. uniform delivered c. zone d. basing-point e. freight absorption ANS: D In basing-point pricing, customers pay freight from a set base point, regardless of the location from which the goods are shipped. PTS: 1 REF: 328 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Application 64. Which of the following is a price tactic that offers all goods and services at the same price (or perhaps two or three prices)? a. Primary pricing b. Uniform-price tactic c. Single-price tactic d. Constant-pricing e. EDLP ANS: C Single-price selling removes price comparisons from the buyer’s decision-making process. PTS: 1 REF: 328 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Knowledge 65. Just A Buck is a retail store where all of the merchandise is priced at $1 or 2-for-$1. Just A Buck uses: a. a single-price tactic b. flexible pricing c. price lining d. price bundling e. leader pricing ANS: A The single-price tactic offers all goods and services at the same price (or perhaps two or three prices). PTS: 1 REF: 328 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Application 66. Single-price selling: a. b. c. d. e. removes price comparisons from the buyer’s decision-making p...
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