1.Managers often use two special indexes to help identify strong and weak market segments in order to provide direction for marketing efforts. The two indexes focus on __________. E. category development and brand development Answer Key: E 2. If Proctor & Gamble (P&G) were to package a Gillette Fusion ProGlide Razor with its Old Spice Pure Sport Anti-Perspirant and Deodorant, P&G would be engaged in __________. C. product bundling Answer Key: C 3. Since Gatorade Thirst Quencher was concocted in 1965, its marketers have introduced Gatorade Frost in 1997, Gatorade Fierce in 1999, the Gatorade Performance Series in 2001, Gatorade Rain in 2006, and the Gatorade G Series in 2011, to name a few. These introductions are examples of __________. D. product line extensions Answer Key: D 4. The sale of two or more separate products in one package is referred to as __________. D. product bundling Answer Key: D 5. When Rose went shopping for a new purse, she thought she had found a real value - a Gucci purse for about 50% of what she was planning to pay. When she looked more closely, she noticed that the purse was identical to a Gucci but was not manufactured by Gucci. This was most likely an example of __________. A. product counterfeiting Answer Key: A 6. A trade name refers to __________. D. the commercial, legal name under which a company does business Answer Key: D 7. An all-electric-powered automobile is in which stage of its product life cycle? C. introduction Answer Key: C 8. During the introduction stage of the product life cycle, a(n) __________ pricing strategy may be used. This pricing strategy charges a high initial price to recoup the costs of product development. D. skimming Answer Key: D 9. DiGiorno rising crust pizza has been available in the freezer sections of supermarkets for quite a while. The product's recent introduction of a DiGiorno cheese stuffed crust to its line of pizzas is an example of __________. E. product modification Answer Key: E 10. In which stage of the product life cycle is it important to broaden distribution of the product? B. growth Answer Key: B 11. At which stage in the product life cycle do industry profits usually peak? B. growth Answer Key: B 12. The central element of the marketing strategy for Pez Candy, Inc., is the __________. D. container Answer Key: D 13. Johnson & Johnson effectively repositioned St. Joseph Aspirin as a product for infants to an adult lowstrength aspirin to reduce the risk of heart attacks. This is an example of repositioning by __________. B. reaching a new market Answer Key: B 14. Kellogg's changed the name of its Heartwise cereal to Fiberwise MOST likely to __________. C. comply with Food and Drug Administration guidelines on the use of the word "heart" in food brand names Answer Key: C 15. A company may choose a skimming strategy during the introduction stage of its product to help recover costs of development and/or to __________. A. capitalize on the price insensitivity of early buyers Answer Key: A 16. An organization's use of a name, phrase, design, symbol, or combination of these to identify its products and distinguish them from those of competitors is referred to as __________. B. branding Answer Key: B 17. Subbranding involves __________. C. combining a corporate brand with a new brand to distinguish a part of its product line from others Answer Key: C 18. Another name for multiproduct branding is __________. C. corporate branding Answer Key: C 19. Pez was originally sold in Europe as a(n) __________ in plain "headless" dispenser. The product got its name from the German word "pfefferminz ," which means "peppermint." B. breath mint Answer Key: B 20. Any container in which a product is offered for sale and on which information is communicated is referred to as __________. C. packaging Answer Key: C 21. Private branding is also referred to as private labeling or __________. A. reseller branding Answer Key: A 22. The fourth and last step in the sequential process of building brand equity is to __________. D. create a consumer-brand connection Answer Key: D 23. The three main benefits packaging provides to manufacturers, retailers, and consumers are communication benefits, perceptual benefits, and __________ benefits. B. functional Answer Key: B 24. Seiko makes watches. It markets its higher quality watches under the Seiko or LaSalle brand name, and its lower-priced watches are sold under the Pulsar brand. Seiko uses a __________ strategy. A. multibranding Answer Key: A 25. Product form refers to __________. C. variations within the product class Answer Key: C 26. During the introduction stage of the product life cycle, the place (distribution) element of the marketing B. gaining as many retail distribution outlets as possible, even though many will be reluctant to carry the new product Answer Key: B 27. When the Floral Council, a trade association of flower shop retailers, advertises that giving flowers is a thoughtful and appreciated gift for any occasion, it is trying to stimulate __________ demand. B. primary Answer Key: B 28. Subbranding involves __________. C. combining a corporate brand with a new brand to distinguish a part of its product line from others Answer Key: C 29. The stylized blue and white waves that appear in an oval shape on every package of Ocean Spray brand products is an example of a __________. D. brand name Answer Key: D 30. Express warranties __________.A. provide a written statement of manufacturer liability Answer Key: A 31. Products that are introduced, decline, and seem to return are characteristic of the __________ type of product life cycle. C. fashion Answer Key: C 32. The Reynold's Aluminum foil box has two side tabs that say "Press Here to Lock Roll" to keep the roll of foil in place during use. This demonstrates which elements of good packaging? D. communication benefits and functional benefits Answer Key: D 33. A branding strategy in which a company uses one name for all its products in a product class is referred to as __________. E. multiproduct branding Answer Key: E 34. Promotional expenditures at the introduction stage of the product life cycle are best spent on __________. C. advertising to cultivate primary demand Answer Key: C 35. A __________ product requires little learning by the consumer, and the benefits of the purchase are readily understood. E. low-learning Answer Key: E 36. Sales exhibit a steady downward trend throughout which stage of the product life cycle? E. decline Answer Key: E 37. Another name for multiproduct branding is __________. A. family branding Answer Key: A 38. Product packaging such as the Pringles cylindrical package is one example of the product's __________. A. functional benefits Answer Key: A 39. The belief that products originating from one country would be of better or worse quality than the products from another country illustrates the _____ benefits that packaging information can provide. D. perceptual Answer Key: D 40. The marketing of low-cost copies of popular brands not manufactured by the original producer is referred to as __________. D. product counterfeiting Answer Key: D 41. An implied warranty __________. D. assigns responsibility for product deficiencies to the manufacturer Answer Key: D 42. The U.S. Patent and Trademark Office website allows you to __________. A. see if a brand or trade name has been registered Answer Key: A 43. A branding strategy that involves giving each product a distinct name, which is useful when each brand is intended for a different market segment, is referred to as __________. B. multibranding Answer Key: B 44. An all electric-powered automobile is in which stage of its product life cycle? C. introduction Answer Key: C 45. Packaging __________. B. is any container in which a product is offered for sale and on which information is communicated Answer Key: B 46. The __________ stage of the product life cycle is characterized by the slowing of total industry sales or product class revenue, causing marginal competitors to begin leaving the market. B. maturity Answer Key: B 47. For consumers, the primary benefit of branding is __________. B. it helps consumers become more efficient shoppers Answer Key: B 48. The classifications of innovators, early adopters, early majority, late majority, and laggards are all based upon __________ C. when consumers begin buying a new product Answer Key: C 49. Product form refers to __________. D. variations within the product class Answer Key: D 50. The apple with a bite taken out of it that appears on every Apple product is an example of a __________. D. logotype Answer Key: D 51. At which stage of the product life cycle is a company likely to have its most complete product line? C. maturity Answer Key: C 52. Gatorade offers a range of product offerings. The firm uses one name for all its products in a product class. Gatorade is using a __________ strategy. B. family branding Answer Key: B 53. Managers often use two special indexes to help identify strong and weak market segments in order to provide direction for marketing efforts. The two indexes are (1) __________ (CDI) and (2) brand development index (BDI). A. category development index Answer Key: A 54. Johnson & Johnson effectively repositioned St. Joseph Aspirin as a product for infants to an adult lowstrength aspirin to reduce the risk of heart attacks. This is an example of repositioning by __________. B. reaching a new market Answer Key: B 55. A trademark refers to __________. E. the identification that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing others from using it Answer Key: E 56. During the introduction stage of the product life cycle, the place (distribution) element of the marketing mix is highly involved with __________. B. gaining as many retail distribution outlets as possible, even though many will be reluctant to carry the new product Answer Key: B 57. Product form refers to __________. C. variations within the product class Answer Key: C 58. The primary purpose of a trademark is to __________. A. legally protect a product's brand name or trade name and prevent others from using it Answer Key: A 59. A branding strategy in which a company uses one name for all its products in a product class is referred to as __________. E. multiproduct branding Answer Key: E 60. Product changes characteristically take place in the __________ stage of the product life cycle. B. growth Answer Key: B 61. The classifications of innovators, early adopters, early majority, late majority, and laggards are all based upon __________ C. when consumers begin buying a new product Answer Key: C 62. When selecting a brand name, it should suggest product benefits; be memorable, distinctive and positive; fit the company or product image; be simple and emotional; and __________. B. have no legal or regulatory restrictions Answer Key: B 63. The belief that products originating from one country would be of better or worse quality than the products from another country illustrates the _____ benefits that packaging information can provide. D. perceptual Answer Key: D 64. The sale of two or more separate products in one package is referred to as __________. D. product bundling Answer Key: D 65. Men who tried the Gillette Fusion razor were so satisfied with it that 60 percent of them adopted the product permanently. These men are known as __________ purchasers. A. repeat Answer Key: A 66. What is the marketing objective for the growth stage of the product life cycle? C. differentiation Answer Key: C 67. Thirty-six percent of sales at supermarkets in the United Kingdom carry the stores' own brand names. Eighteen percent of all supermarket sales in France and Germany carry the stores' own brand names. And in the U.S., 14 percent carry the stores' own brand names. These stores use a __________ strategy to sell other manufacturers products with their own brand names. E. private branding Answer Key: E 68. Private branding refers to a branding strategy in which a firm __________. D. produces products but sell them under the brand name of a wholesaler or retailer Answer Key: D 69. The Reynold's Aluminum foil box has two side tabs that say "Press Here to Lock Roll" to keep the roll of foil in place during use. This demonstrates which elements of good packaging? D. communication benefits and functional benefits Answer Key: D 70. The types of products Mary Kay, Inc. offers to its women customers are __________ products. C. skin-care Answer Key: C 71. Since Gatorade Thirst Quencher was concocted in 1965, its marketers have introduced Gatorade Frost in 1997, Gatorade Fierce in 1999, the Gatorade Performance Series in 2001, Gatorade Rain in 2006, and the Gatorade G Series in 2011, to name a few. These introductions are examples of __________. D. product line extensions Answer Key: D Chapter 12: 1. The highest inventory carrying costs would most likely be for which of the following services? E. hospitals Answer Key: E 2. Which of the following is a point in the customer contact audit for a health club? A. participating in the health club's exercise class 3. The trend toward sustainability and "green" business practices has expanded to include many services as they strive to D. create a competitive advantage. 4. The American Red Cross uses marketing to help achieve its goals. As a service, it can be classified as A. a nonprofit organization. 5. An expanded marketing mix for services that includes the four Ps (product, price, promotion, and place or distribution) as well as people, physical environment, and process, is referred to as the __________. A. seven Ps of services 6. To help consumers assess and compare services, marketers try to make them tangible or __________. E. show the benefits of using the service 7. A publicity tool frequently used by nonprofit services, which uses free space or time donated by the media is referred to as a(n) C. public service announcement. 8. Services such as restaurants and child care are evaluated on __________ properties. C. experience 9. A nonprofit organization may pay taxes if: D. revenue-generating holdings are not directly related to the organization’s core mission. 10. Services refer to: B. intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. 11. Services depend on the people who provide them. As a result, their quality varies with each person's capabilities and day-to-day job performance. This element of services is referred to as __________. D. inconsistency 12. Equipment-based services like ATMs, online brokerage firms, and automated car washes, do not have the marketing concerns of A. inconsistency. 13. The first step a nonprofit organization should take to engage people with social media is to __________. B. understand what motivates people to take up causes 14. When banks are closed, they can offer value to their customers through automatic teller machines (ATMs). This self-service technology also comes with a down side since the ATMs are perceived as being less __________. C. personal 15. Idle production capacity refers to C. a situation where a service provider is available but there is no demand for the service. 16. Services can be classified according to whether they are __________, they are profit or nonprofit organizations, or they are government sponsored. D. delivered by people or equipment 17. The FedEx brand suggests the possibility that it is government sanctioned and fast. This perception is important because of which unique characteristic of services? E. intangibility 18. An additional benefit of a Phillies special promotions night is that it not only does boosts overall attendance, it A. generates first-time visits from fans who have never attended a Major League Baseball game. 19. For nonprofit organizations, excesses in revenue over expenses are C. returned to the organization's treasury for continuation of the service. 20. What do a security guard, a plumber, and a management consultant share in common? B. They are all people-based services. 21. To help consumers assess and compare its airline service, Frontier Airlines uses personable animal characters in its advertising to announce and describe benefits, such as leather seats and "stretch" seating, to help deal with the A. intangibility of the service. 22. Services performed by surgeons or lawyers are primarily evaluated on __________ properties. D. credence 23. Consumers have more difficulty evaluating services than they do products; the difficulty results from the A. intangibility of services. 24. Because services tend to be a(n) __________ rather than an object, they are much more difficult for consumers to evaluate. B. performance 25. The process of managing the entire customer experience with the company is referred to as C. customer experience management. Chapter 13: 1. If competitive market circumstances are such that there are few sellers who are sensitive to each other's prices, and the purpose of advertising is to inform but avoid price competition, then __________ must exist in the industry. D. an oligopoly 2. Ace Shoe Company sells heel replacement kits for men's shoes. It has fixed costs of $6 million and unit variable costs of $5 per pair. Ace would like to earn a profit of $2 million; how many pairs must they sell at a price of $15? D. 800,000 kits 3. The money or other considerations (including other products and services) exchanged for the ownership or use of a product or service is referred to as __________. D. price 4. A maximizing current profit objective implies that a company chooses to A. set targets whose performance can be measured quickly. 5. While consumer tastes and price and availability of similar products determine what consumers want to buy, consumer income determines D. what they can buy. 6. Three different objectives relate to a firm's profit, which is often measured in terms of return on investment. One objective, known as _________, is when a company gives up immediate profit in exchange for achieving a higher market share in the hopes of penetrating competitive markets. E. managing for long-run profits 7. A company that manages apartments decides to buy 15 new dishwashers at a list price of $550 each as replacements for old dishwashers in a small apartment complex it owns. Because the company is buying more than 10 dishwashers, it is eligible for a $150-per-unit quantity discount. Financing charges total $20 per unit. The company gets $10 per dishwasher for the 15 dishwashers traded in. What is the final price the company will pay for each dishwasher? C. $410 8. Five cost concepts are important in pricing decisions: total cost, fixed cost, variable cost, marginal cost, and __________. D. unit variable cost 9. Washburn Guitars markets its guitars to four distinct market segments. The firm's mass-produced instruments are targeted at A. first-time buyers. 10. Pricing constraints refer to D. factors that limit the range of prices a firm may set. 11. The competitive market situation in which the few sellers are sensitive to each other's prices is referred to as B. oligopoly. 12. Break-even analysis refers to C. a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output. 13. The formula, Total revenue - Total cost, or [(Unit price × Quantity sold) - (Fixed cost + Variable cost)] represents __________. E. the profit equation 14. A graphic presentation of the break-even analysis that shows when total revenue and total cost intersect to identify profit or loss for a given quantity sold is referred to as a __________. E. break-even chart 15. The owner of a small restaurant that sells take-out fried chicken and biscuits pays each month $2,500 in rent, $500 in utilities, $750 interest on his loan, insurance premium of $200, and $250 on advertising on local buses. A bucket of take-out chicken is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50. How many small buckets of chicken does the restaurant need to sell to break-even each month? C. 1,050 buckets 16. The competitive market situation in which many sellers compete on nonprice factors is referred to as D. monopolistic competition. 17. The use of "special fees" and "surcharges" is driven by consumers' zeal for __________ and the ease of making price comparisons on the Internet. B. low prices 18. Which of the following illustrates a shift in the demand curve? C. When prices remain the same, there is an increase or decrease in demand. 19. The sum of the expenses of a firm that is stable and does not change with the quantity of the product that is produced and sold is referred to as A. fixed cost. 20. All things being equal, if a firm finds the demand for one of its products is inelastic, it can increase its total revenues by E. raising its price. 21. The ratio of __________ to price is referred to as value. B. perceived benefits 22. A firm's profit equation equals B. Total revenue - Total cost or [(Unit price × Quantity sold) - (Fixed cost + Variable cost)]. 23. Several companies produce latex gloves that are used in a variety of different industries. If one of the glove manufacturers decreases its price by just a few percentage points, it will result in a significant increase in quantity demanded. The demand for latex gloves is D. elastic. 24. A demand curve refers to a graph that relates A. the quantity sold and price, which shows the maximum number of units that will be sold at a given price. 25. George and Alice Renfro decided to start a family business in 1990. Its product: chowchow, a southern regional food. To determine how they would price the chowchow, the Renfros had to: (1) examine the demand for the product (e.g., would people rather eat homemade or store-bought?); (2) the costs of the jars for and bottling of the chowchow; and (3) and how much it would cost to distribute the product to area grocery stores. For the Renfros, Step 1 of their price-setting process consists of A. identifying pricing constraints. 26. You are president of a manufacturer of small electric appliances. You want to reduce your break-even quantity. All things being equal, you can do this by C. reducing unit variable cost. 27. The sum of the expenses of the firm that vary directly with the quantity of the product that is produced and sold is referred to as E. variable cost. 28. Price elasticity of demand is determined by a number of factors such as whether the item is a luxury product or service, the availability of substitutes, the necessity of the product or service, and D. the cash outlay of purchase relative to a person's disposable income. 29. Which term describes factors that limit the range of prices a firm may set? B. pricing constraints 30. Which of the following are examples of elements of Step 3 in the price-setting process? C. cost estimation, marginal analysis, and break-even analysis 31. Estimating demand, sales revenue, and price elasticity are issues that would be addressed during __________ of the price-setting process. B. Step 2 32. The average price Washburn Guitars charges for a guitar is $349.99. This pricing level is most reflective of a(n) __________ approach D. odd-even pricing 33. The manufacturer of a new kind of fat-free ice cream that has the consistency and taste of regular ice cream is thinking of using a penetration pricing strategy for its new product. Which of the following conditions would argue against using a penetration pricing strategy for the tasty fat-free ice cream? B. A large portion of the market has inelastic demand for ice cream - over a fairly broad range of prices. 34. When estimating demand, price is not the only factor to be considered. Three other elements include consumer tastes, price and availability of similar products, and A. consumer income. 35. Washburn Guitars markets its guitars to four distinct market segments. The firm's mass-produced instruments are targeted at A. first-time buyers. 36. The owner of a small restaurant that sells take-out fried chicken and biscuits pays each month $2,500 in rent, $500 in utilities, $750 interest on his loan, insurance premium of $200, and $250 on advertising on local buses. A bucket of take-out chicken is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50. How many small buckets of chicken does the restaurant need to sell to break-even each month? C. 1,050 buckets 37. Three different objectives relate to a firm's profit, which is often measured in terms of return on investment. One objective, known as _________, is common in many firms because the targets can be set and performance measured quickly. D. maximizing current profit 38. The vertical axis of a demand curve graph represents __________. C. price per unit 39. At a price of $3.00 each, SHAPE magazine sells 1.25 million copies of its magazine targeted to young women seeking a healthier lifestyle. If the price per issue is increased to $3.25, only 1 million copies would be sold. Fixed costs are $1 million and unit variable costs are $0.50 per magazine. From the information provided here, what is SHAPE magazine's total revenue obtained at the lower price? A. $3,750,000 40. Which of the following is a typical example of a fixed cost? D. building rental expense 41. Walmart uses which pricing strategy that affects both customers and competitors?C. every day low pricing 42. The practice of simultaneously increasing product and service benefits and maintaining or decreasing price is referred to as __________. A. value-pricing 43. A manufacturing company that introduces a product must know or anticipate what specific price its __________ currently charge or may charge in the future. A. present and potential competitors 44. The formula, Total revenue - Total cost, or [(Unit price × Quantity sold) - (Fixed cost + Variable cost)] represents __________. E. the profit equation 45. Basic to setting a product's price is the extent of __________. This information is used in estimating the revenues the firm expects to receive. C. customer demand for it 46. If competitive market circumstances are such that there are few sellers who are sensitive to each other's prices, and the purpose of advertising is to inform but avoid price competition, then __________ must exist in the industry. D. an oligopoly 47. A break-even chart refers to a graphic presentation B. of a break-even analysis that shows when total revenue and total cost intersect to identify profit or loss for a given quantity sold. 48. To increase value, marketers have the option of C. decreasing price and increasing benefits. 49. Setting list or quoted prices would occur during __________ of the price-setting process. E. Step 5 50. According to the price equation, a product's or service's final price equals its list price minus incentives and allowances plus D. extra fees. Chapter 14 1. Mercedes-Benz cars and a Patek Philippe Platinum World Time wristwatch have a common characteristic – they have an element of _________. E. prestige pricing 2. Odd-even pricing is based on B. customers' perceptions of price. 3. When buying a car, __________ may result in discriminatory practices. C. a flexible-price policy 4. Functional discounts are offered to resellers in the marketing channel on the basis of where they are in the channel and E. the marketing activities they are expected to perform in the future. 5. Bundle pricing refers to B. marketing two or more products in a single package price. 6. The practice of replacing promotional allowances with lower manufacturer list prices is referred to as A. everyday low pricing. 7. With uniform delivered pricing, the price the seller quotes A. includes all transportation costs. 8. A claim that a price is below a manufacturer's suggested or list price may be deceptive if D. few or no sales occur at that price in a retailer's market area. 9. Yield management pricing refers to E. charging different prices to maximize revenue for a set amount of capacity at any given time. 10. Odd-even pricing refers to E. setting prices a few dollars or cents under an even number. 11. The manufacturer of a new kind of fat-free ice cream that has the consistency and taste of regular ice cream is thinking of using a penetration pricing strategy for its new product. Which of the following conditions would argue AGAINST using a penetration pricing strategy for the tasty fat-free ice cream? E. The ice cream market exhibits inelastic demand over a fairly broad range of prices. 12. Assume it costs Lady Marion Seafood, Inc. $30 to catch, process, freeze, package, and ship 5-pound packages of Alaskan salmon. The firm adds 60 percent to the cost of its salmon products and charges customers $48 for a postage-paid vacuum-sealed package. What type of pricing does Lady Marion Seafood use to arrive at its final price? C. standard markup pricing 13. In some cases, manufacturers design products for different price points and retailers apply __________ to achieve the three or four different price points offered to consumers. D. approximately the same markup percentages 14. Everyday low pricing refers to D. the practice of replacing promotional allowances with lower manufacturer list prices. 15. Trade discounts are offered to resellers in the marketing channel on the basis of where they are in the channel and A. the marketing activities they are expected to perform in the future. 16. Target return-on-investment pricing refers to D. setting a price to achieve an annual target ROI. 17. A box of Cascade dishwasher detergent shrink-wrapped with a bottle of Jet Dry for 10 cents more than the regular price of the dishwasher detergent is an example of __________ pricing. C. bundle 18. The most commonly used pricing method for business products is __________. E. cost-plus pricing 19. Yield management pricing is a form of C. dynamic pricing. 20. The Brazilian government wants to build a global positioning satellite (GPS) system. The satellite manufacturer will receive a mutually agreed upon profit over and above all costs associated with the project. The pricing approach the satellite manufacturer uses is called D. cost-plus fixed-fee pricing 21. The word "Free" in relation to the acronym "FOB" signals the point or location where the seller is D. free to choose the point of loading. 22. The setting of prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item, is referred to as B. product-line pricing. 23. Noncumulative quantity discounts refer to E. discounts that are based on the size of an individual purchase order, rather than a series of orders. 24. Prestige pricing is considered to be a __________ approach to pricing. A. demand-oriented 25. To reward wholesalers and retailers for the risk they accept in assuming increased inventory carrying costs, manufacturers offer D. seasonal discounts. 26. Discounts that apply to the accumulation of purchases of a product over a given time period, such as a year, are referred to as B. cumulative quantity discounts. 27. What is it called when a manufacturer offers discounts to resellers in the marketing channel on the basis of where they are in the channel? B. trade discounts 28. What is the critical assumption when using target profit pricing? D. a higher average price will not cause the demand to fall 29. A pricing method where a supplier is reimbursed for all costs, regardless of what they may be, and is allowed a fixed fee as profit that is independent of the final cost of the project is referred to as E. cost-plus fixed-fee pricing. 30. When a firm offers a very low price on a product to attract customers to a store, and once in the store, the customer is persuaded to purchase a higher-priced item, the practice is referred to as E. bait and switch. 31. The way that a person navigates through an online marketer's website is called C. the clickstream. 32. Rather than billing clients by the hour, some lawyers and their clients agree on a fixed fee based on expected costs plus an agreed upon level of profit for the law firm. Which pricing approach are they using B. cost-plus pricing 33. Cost-plus percentage-of-cost pricing refers to D. setting the price of a product or service by adding a fixed percentage to the total unit cost. 34. Controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price is called E. vertical price fixing. 35. Discounts refer to reductions from the __________ that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller. B. list price 36. Marginal analysis refers to A. a continuing, concise trade-off of incremental costs against incremental revenues. 37. Talbot's sells women's clothes. A T-shirt with the Talbot's label costs $25. By comparison, you can buy a Tshirt for $5 at a Family Dollar Store, but it won't have the Talbot's label or quality. What kind of demandoriented approach to pricing does Talbot's use? D. prestige pricing 38. Setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it is referred to as E. prestige pricing. 39. Setting one price for all buyers of a product or service is referred to as __________. B. one-price policy 40. Bundle pricing is considered to be a __________ pricing practice. A. demand-oriented 41. To encourage buyers to stock inventory earlier than their normal demand would require, manufacturers often useC. seasonal discounts. 42. Setting the price of a line of products at a number of different specific price points is referred to as __________. D. price lining 43. When a firm divides its selling territory into geographic areas, it is referred to as B. multiple-zone pricing. 44. The practice of charging a very low price for a product with the intent of driving competitors out of business is referred to as B. predatory pricing. 45. A company placing an order from the Lab Safety Supply catalog is instructed to add $25.00 to the total cost of the order to pay for shipping. Which method of shipping does this catalog supplier use? D. single-zone pricing 46. Trade discounts are offered to resellers in the marketing channel on the basis of the marketing activities they are expected to perform in the future and B. where they are in the channel. 47. Setting a market price for a product or product class based on a subjective feel for the competitors' price or market price as the benchmark is referred to as B. above-, at-, or below-market pricing. 48. Mercedes-Benz cars and a Patek Philippe Platinum World Time wristwatch have a common characteristic they have an element of _________. E. prestige pricing 49. Suppose a manufacturer quotes price in the following form: List price - $100 less 30/10/5. When calculating this trade discount, the first number "30" in the percentage sequence always refers to the C. retail end of the channel. 50. Which of the following is a form of flexible pricing? B. yield management pricing 51. The price the seller quotes that includes all transportation costs is referred to as __________. C. uniform delivered pricing 52. Which of the following is a profit-oriented approach to pricing? D. target return-on-sales pricing 53. Predatory pricing is C. the practice of charging a very low price for a product with the intent of driving competitors out of business. 54. The purpose of a cash discount is to E. encourage retailers to pay their bills promptly. 55. Setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product is referred to as a A. skimming strategy. 56. Setting a price to achieve an annual target return-on-investment (ROI) is referred to as A. target return-oninvestment pricing. 57. The prices for all furniture sold at American Furniture Warehouse end in $9, such as $599.99, $899.99, etc. American Furniture Warehouse uses A. odd-even pricing. 58. A conspiracy among firms to set prices for a product is referred to as B. price fixing. 59. Wrigley recently introduced a new flavor of Orbit brand sugar free chewing gum - mint mojito. The introductory price was low so that it quickly created loyal customers for the flavor. In this example, Wrigley used B. penetration pricing. 60. When Dell sells various laptops, it also pre-installs Microsoft Office and other software customers order at a discount before a laptop is shipped. This is an example of C. bundle pricing. 61. Architectural firms that specialize in designing and constructing one-of-a-kind custom homes often use which price policy to set prices? A. cost-plus pricing 62. The successive price cutting by competitors to increase or maintain their unit sales or market share is referred to as B. a price war. 63. Multiple-zone pricing refers to D. a firm's division of its selling territory into geographic areas or zones. 64. A pricing method where all buyers pay the same delivered price for the products, regardless of their distance from the seller, is referred to as __________. A. single-zone pricing 65. Setting the price of a product or service by adding a fixed percentage to the total unit cost is referred to as C. cost-plus percentage-of-cost pricing. 66. When using a price lining strategy, a marketer will A. set the price of a line of products at a number of different specific pricing points?