Marketing Final Exam

Ticket lsu is using a multiple unit pricing b

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Unformatted text preview: is using: a. multiple unit pricing b. professional services pricing c. price lining d. price bundling e. two-part pricing ANS: E Two-part pricing involves two separate charges to consume a single good or service. PTS: 1 REF: 331 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Application 92. Consumers sometimes prefer two-part pricing because: a. prices are often perceived as quality indicators b. consumers like to be in control of costs c. d. e. consumers are uncertain about the number and types of activities they might use at places like an amusement park consumers prefer a limited number of choices prices have little or no psychological influence on most consumers ANS: C This is one of the reasons consumers sometimes prefer two-part pricing. PTS: 1 REF: 331 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Analysis 93. _____ are extra fees paid by consumers for violating the terms of purchase agreements. a. Decoy fees b. Misuse discounts c. Punitive fees d. Consumer penalties e. Financial judgments ANS: D This defines consumer penalties. Businesses impose consumer penalties for two reasons: They will allegedly (1) suffer an irrevocable revenue loss and/or (2) incur significant additional transaction costs should customers be unable or unwilling to complete their purchase obligations. PTS: 1 REF: 332 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Knowledge 94. Consumers are required to pay consumer fees because businesses allegedly: a. will sell more if the consumer is unaware of the actual costs b. suffer an irrevocable revenue loss c. are required by the federal government to charge this fee d. avoid additional transactional costs when purchase agreements are violated e. incur greater fixed costs as a result of the purchase agreement violation ANS: B There is no such federal law that requires charging of a fee. Businesses allege they incur more transactional costs as a result of purchase agreements violations. Fixed costs do not change. PTS: 1 REF: 332 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Comprehension 95. Costs that are shared in the manufacturing and marketing of several products in a product line are called: a. b. c. d. e. joint costs integrated costs fixed costs variable costs combined costs ANS: A This is the definition of joint costs, which are a unique problem in product pricing. PTS: 1 REF: 332 Thinking KEY: CB&E Model Pricing OBJ: 20-4 TOP: AACSB Reflective MSC: BLOOMS Knowledge 96. Post makes several varieties of cereals. In promoting this product line, Post offers a 50-cents-off coupon that can be used to purchase any of its cereals. Therefore, Post must consider _____ when pricing its cereals. a. joint costs b. differential costs c. bundling costs d. potential (or basing) costs e. factorial costs ANS: A Joint costs are costs that are shared in the manufacturing and marketing of several products...
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