Marketing Principles ~ Pricing Review

Question 1

Bartering involves the exchange of goods or services for a mutually agreed-on amount of money.

Answer

true

Question 2

A company's profit is the same as its return on investment.

Answer

true

Question 3

The Robinson-Patman Act of 1975 helps small retailers compete with large chain stores.

Answer

true

Question 4

Retailers who are in business in states with minimum price laws are prohibited from using the loss-lead technique to attract customers.

Answer

true

Question 5

The more unusual a product is perceived to be by consumers, the greater the freedom to set higher prices.

Answer

true

Question 6

Outdated products in the US are in the decline stage in other global markets.

Answer

true

Question 7

To calculate the percentage of a promotional discount, multiply the dollar discount by the original price.

Answer

true

Question 8

A retailer who discounts an item's retail price increases his or her markup on the item.

Answer

true

Question 9

Businesses cannot use employee discounts in order to justify paying employees a lower wage.

Answer

true

Question 10

Trade discounts are based on the manufacturer's list price.

Answer

true

Question 11

What type of pricing strategy is everyday low pricing?

Accepted Answer

Psychological pricing

Answer

Seasonal discount pricing

Answer

Price lining pricing

Answer

Multiple pricing

Question 12

What is the most temporary pricing strategy?

Accepted Answer

promotional

Answer

odd/even

Answer

multiple

Answer

prestige

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