1 .		Which of the following is not one of the forms of segmented pricing? [Hint]   Location pricing   Customer-segment pricing   Time pricing   Possession pricing
2 .		A ________ discount is offered by the seller to trade-channel members who perform certain functions, such as selling, storing and record keeping. [Hint]   trade   quantity   cash   seasonal
3 .		A market skimming pricing policy: [Hint]   starts with a high price which is gradually lowered.   starts with a high price and keeps it high   starts with a low price and gradually raises it   starts with a low price and keeps it low
4 .		When McCormiks Restaurant store offers a 15 percent discount on all purchases to individuals 55 years of age or older, McCormiks is practicing: [Hint]   segmented pricing.   promotional pricing.   psychological pricing   product mix pricing
5 .		Kandy Industries sells its products FOB origin. In this case: [Hint]   each customer pays for its own freight costs.   the seller pays for the freight costs.   the seller becomes a high-cost firm to distant customers.   both a and c
6 .		Under which circumstances should a firm attempt to initiate a price cut? [Hint]   Excess capacity   Excess sales   Excess profits   Excess market share
7 .		Under which of the following does the seller agree to pay all of the freight costs for a customer? [Hint]   Zone pricing   Freight absorption pricing   FOB origin pricing   Basing-point pricing
8 .		The Lapham Company will sell up to 500 units of a product for $15 each, but charges only $13 per unit if the buyer purchases more than 500 units at one time. Lapham is offering: [Hint]   functional discounts   seasonal discounts   quantity discounts   cash discounts
9 .		Cash discounts are offered to buyers in an effort to: [Hint]   improve the seller's liquidity   reduce bad debts   reduce credit collection costs   all of the above
10 .		L.C.'s Wholesale Club charges its customers low prices to attract high sales volume. The high volume results in lower costs, which in turn allows L.C. to keep prices low. L.C. appears to be practicing _________ _________ pricing. [Hint]   market penetration   competition based   market oriented   market skimming
11 .		When bringing out a new product, companies can choose between two pricing strategies: market skimming pricing or market--penetration pricing. [Hint]  True  False
12 .		The intent of Market--Skimming Pricing is to set a low initial price to penetrate the market quickly and deeply in order to attract a large number of buyers quickly and to capture a large market share. [Hint]  True  False
13 .		A functional discount is also called a trade discount. [Hint]  True  False
14 .		Market skimming as a pricing strategy may make sense if the high price supports the image of a superior product. [Hint]  True  False
15 .		A firm that is practicing captive product pricing may charge a low price on the main product but set a high markup on the supplies. [Hint]  True  False
16 .		Manufacturers must offer the same functional discounts within each trade channel if they perform identical services. [Hint]  True  False
17 .		Seasonal discounts may be granted to buyers because they allow sellers to maintain steadier production throughout the year. [Hint]  True  False
18 .		Psychological pricing considers the impact of consumer perceptions as well as traditional economic influences. [Hint]  True  False
19 .		For segmented pricing to be effective, members of the segment paying the lower price should be able to resell the product to the segment paying the higher price. [Hint]  True  False
20 .		One situation that may prompt a company to initiate a price cut would be excess productive capacity. [Hint]  True  False
21 .		Define Market-Skimming Pricing and Market-Penetration Pricing and list the conditions that should exist for each strategy to be implemented. [Hint] To create paragraphs in your essay response, type <p> at the beginning of the paragraph, and </p> at the end.
22 .		Define Promotional Pricing, list its various forms and discuss the potentially adverse effects of this pricing strategy. [Hint] To create paragraphs in your essay response, type <p> at the beginning of the paragraph, and </p> at the end.