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MARKETING CHAPTER “11” REAL EXAM 100 QUESTIONS AND CORRECT ANSWERS LATEST//ALREADY GRADED A+ 1) Companies set not a single price, but a pricing ________ that covers different items in its line and changes over time as products move through the$21.49
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MARKETING CHAPTER “11” REAL EXAM 100 QUESTIONS AND CORRECT ANSWERS LATEST//ALREADY GRADED A+ 1) Companies set not a single price, but a pricing ________ that covers different items in its line and changes over time as products move through the
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MARETING CHAPTER “11” R
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MARETING CHAPTER “11” R
MARKETING CHAPTER “11” REAL EXAM 100 QUESTIONS AND
CORRECT ANSWERS LATEST//ALREADY GRADED A+
1) Companies set not a single price, but a pricing ________ that covers different items in its line and
changes over time as products move through their life cycles
MARKETING CHAPTER “11” REA...
MARKETING CHAPTER “11” REAL EXAM 100 QUESTIONS AND
CORRECT ANSWERS 2024-2025 LATEST//ALREADY GRADED A+
1) Companies set not a single price, but a pricing ________ that covers different items in its line and
changes over time as products move through their life cycles.
A) by-product
B) structure
C) loop
D) cycle
E) bundle - ANSWER-B
2) Companies facing the challenge of setting prices for the first time can choose between two broad
strategies: market-penetration pricing and ________ pricing.
A) comparative
B) competitive
C) market-skimming
D) market-segmentation
E) cost-plus - ANSWER-C
3) A market-skimming pricing strategy should NOT be used for a new product when ________.
A) the product's quality and image support its higher price
B) enough buyers want the products at that price
C) competitors are unable to enter the market
D) competitors can undercut prices easily
E) producing a smaller number of goods is feasible - ANSWER-D
4) When a company sets a high price for a new product with the intention of reducing the price in the
future, it is using the ________ pricing strategy.
A) market-skimming
B) cost-plus
,C) market-segmentation
D) market-penetration
E) competitive - ANSWER-A
5) Midnight Magic, a perfume manufacturing company, plans to release a new fragrance during the
holiday season at $99 per bottle. The company intends to bring the price down to $49 within six months
of its release to attract buyers who couldn't afford the initial price. Which of the following pricing
strategies is Midnight Magic using?
A) market-penetration pricing
B) market-skimming pricing
C) competitive pricing
D) cost-plus pricing
E) product-line pricing - ANSWER-B
6) Which of the following is true of price skimming?
A) It is effective in situations in which competitors are able to undercut prices easily.
B) It can be profitably used when the product's quality and image support its price.
C) It involves underpricing products so that companies make larger sales.
D) It is ineffective in situations in which competitors are unable to enter the market easily.
E) It leads to a situation in which the company completes more, though less profitable, sales. - ANSWER-
B
7) Companies that set a low price for a new product in order to attract a large number of buyers and a
large market share are using the ________ strategy.
A) market-skimming pricing
B) market-penetration pricing
C) cost-plus pricing
D) inclusive pricing
E) exclusive pricing - ANSWER-B
,8) A market-penetration pricing policy should LEAST likely be used for a new product when ________.
A) the market is highly price sensitive
B) production and distribution costs fall as sales volume increases
C) the product's quality and image support a high price
D) a high price helps keep out the competition
E) there are few or no competitors in the market - ANSWER-C
9) Which of the following is true of market-penetration pricing?
A) It should be used when the product's quality and image support a high price.
B) It involves setting a high price for a new product to appeal to the elite in society.
C) It results in drawing in large numbers of buyers quickly, winning a large market share.
D) It is best used in conjunction with a market-skimming pricing strategy.
E) It results in the company making fewer and less profitable sales. - ANSWER-C
10) In a bid to attract more customers in a market that has several competitors, Barrymore's Bakery
slashed the prices of all its products by 50 percent. Managers at the firm reasoned that lower prices
would draw in even more customers, making up for the reduction in price several times over. Which of
the following pricing strategies are they using?
A) market-skimming pricing
B) market-penetration pricing
C) captive-product pricing
D) cash discount pricing
E) by-product pricing - ANSWER-B
11) Whizz Corp. wishes to introduce a new hybrid car into mature markets in developed countries with
the goal of gaining mass-market share quickly. Which of the following pricing strategies would help the
firm meet its goal?
A) market-skimming pricing
B) market-penetration pricing
C) market-segmentation pricing
, D) cost-plus pricing
E) captive-product pricing - ANSWER-B
12) Electrowhip, a company that manufacturers blenders and electric whisks, has decided to use a
market penetration pricing strategy. Which of the following, if true, proves their decision to be a wise
one?
A) Electrowhip's competitors utilize social media for marketing their products.
B) Electrowhip sells products whose image and quality support high prices.
C) Electrowhip operates in a market with many competitors.
D) Electrowhip does not operate in a price sensitive market.
E) Electrowhip's products are intended to appeal to the elite in society. - ANSWER-C
Refer to the scenario below to answer the following question(s).
Champion, Inc. is a manufacturer of lunch boxes, school bags, and school stationery. Charles Payton, the
CEO of Champion, hopes to sell the products at a low price to penetrate the market quickly.
13) Which of the following best supports a market-penetration strategy for Champion?
A) Production costs increase as sales volume increases.
B) It is very difficult for competitors to enter the market.
C) The cost of producing a smaller volume is negligible.
D) The quality of the products supports high initial prices.
E) The market for the products is highly price sensitive. - ANSWER-E
25) Which of the following is true of optional-product pricing?
A) It involves capitalizing on low value by-products.
B) It involves pricing products that can be added to the base product.
C) It is used to price a company's main product.
D) It involves setting geographically-specific prices.
E) It is used to price products that must be used with the company's main product. - ANSWER-B
AACSB: Analytical thinking
Skill: Concept
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