Market-skimming pricing would likely be most effective in selling ________.

Market-skimming pricing would likely be most effective in selling ________.

A) any convenience item
B) an electronic device for which research and development must be recouped
C) shampoo and bath soap
D) anything easily copied by competitors
E) most items at EDLP retailers such as Walmart

Answer: B

Among the following, a market-penetration strategy will likely be most effective with ________.

Among the following, a market-penetration strategy will likely be most effective with ________.

A) pharmaceuticals
B) an electronic device for which R&D must be recouped
C) convenience items for which there is much competition
D) any specialty item
E) a product manufactured in small quantities and distributed in limited areas

Answer: C

A manufacturer offers 3/10, net 30 terms to a wholesaler for a recent purchase. The wholesaler may deduct ________ percent if the bill is paid within ________ days.

A manufacturer offers 3/10, net 30 terms to a wholesaler for a recent purchase. The wholesaler may deduct ________ percent if the bill is paid within ________ days.

A) 10; 30
B) 10; 3
C) 3; 30
D) 3; 10
E) 7; 10

Answer: D

Lancaster Recycling has a history of problems with customers who do not pay their bills on time. Lancaster Recycling wants to improve its cash situation, reduce bad debts, and reduce credit-collection costs. The company might consider which of the following forms of pricing?

Lancaster Recycling has a history of problems with customers who do not pay their bills on time. Lancaster Recycling wants to improve its cash situation, reduce bad debts, and reduce credit-collection costs. The company might consider which of the following forms of pricing?

A) by-product
B) inflation-adjusted
C) cash discounts
D) captive-product
E) penetration

Answer: C

Savings for You, a discount retail chain, is highly competitive. When entering a new market, Savings for You often cuts prices so deeply that it sells below costs, effectively pushing smaller companies with less purchasing power out of the market. Savings for You is most at risk of being accused of ________.

Savings for You, a discount retail chain, is highly competitive. When entering a new market, Savings for You often cuts prices so deeply that it sells below costs, effectively pushing smaller companies with less purchasing power out of the market. Savings for You is most at risk of being accused of ________.

A) market skimming
B) price fixing
C) deceptive pricing
D) price confusion
E) predatory pricing


Answer: E

If Northwest Awnings charges the same price for delivery of its product to any customer that is located within the Great Lakes states, but a different price to customers outside of the Great Lakes states, the company is using ________.

If Northwest Awnings charges the same price for delivery of its product to any customer that is located within the Great Lakes states, but a different price to customers outside of the Great Lakes states, the company is using ________.

A) psychological pricing
B) promotional pricing
C) reference pricing
D) zone pricing
E) uniform-delivered pricing



Answer: D