Marketing Exam Review Part 10 Question Preview (ID: 42288)

Final Exam Review.

In this pricing strategy, different product or transportation cost are set for specific areas of the seller's market.
a) added-value pricing
b) zone pricing
c) FOB pricing
d) price lines

A penetration price strategy
a) frequently encourages other businesses to enter the market.
b) is typically used in the maturity stage of the product life cycle.
c) is used by a business to attract a large share of the market early.
d) usually results in very high profit levels for the company

Cost that do not change no matter what quantity of the product is produced or sold are called
a) product costs
b) variable costs
c) total cost
d) fixed costs

The ___ price in the price range is determined by the
a) lowest; target market
b) highest; costs of the seller
c) lowest: cost of the seller
d) highest; target market

A company is most likely to use a sales-based pricing objective when
a) the company wants to change its image
b) the company has high levels of inventory
c) the company has developed unique products in a small target market.
d) the company's products are quite different from competitors' products.

When a company lures customers with offers of low prices and then tells them the low-price product is unavailable or inferior, what illegal pricing practice has occurred?
a) unit pricing
b) price discrimation
c) price fixing
d) bait and switch

Patents are granted to inventors of unique products for a period of
a) 10 years
b) 5 years
c) 20 years
d) 50 years

If demand for a product or service is elastic,
a) total revenue will go up when prices fall.
b) a price decrease will decrease total revenue
c) customers will continue to purchase it even if prices increase a bit
d) there are few substitutes for consumers who purchase the product

The price of a product is likely to be relatively high
a) if there is a very large supply of the product
b) if the product has been on the market for a long time
c) if there is a small quantity of the product but a very large demand
d) if there is little demand for the product.

A reduction in price exchange for the customer's old product when a new one is purchased is called a(n)
a) trade-in allowance.
b) rebate.
c) advertising allowance.
d) trade discount.

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