Question 1

Broadly speaking, the definition of price includes all of the following values except ________.
A) money
B) time
C) physical cost
D) psychic cost

Accepted Answer

Physical cost is not typically included in the broad definition of price, which generally encompasses monetary, time, and psychological costs.

Question 2

________ and ________ are types of fixed pricing strategies.
A) Price leadership; promotional pricing
B) Price leadership; negotiation
C) Promotional pricing; segmented pricing
D) Negotiation; segmented pricing

Accepted Answer

Price leadership and promotional pricing are types of fixed pricing strategies. Price leadership occurs when a leading company sets the price standards that others in the market follow, while promotional pricing involves temporarily reducing prices to attract customers, both involving predetermined prices.

Question 3

When using ________ segment pricing, a company may set different prices when selling a product in different states or regions.
A) value
B) distance
C) geographic
D) market

Accepted Answer

Geographic segment pricing involves setting different prices for the same product in different geographical locations, such as states or regions, to reflect variations in demand, costs, or market conditions.

Question 4

________ pricing uses the internet properties for mass customization, automatically devising pricing based on order size and timing, demand and supply levels, and other preset decision factors.
A) Promotional
B) Auction
C) Segmented
D) Negotiated

Accepted Answer

The answer of ________ pricing uses the internet properties for...

Question 5

________ is the most common profit-oriented objective for pricing.
A) Competition-based pricing
B) Dynamic pricing
C) Current profit maximization
D) Segmented pricing

Accepted Answer

Current profit maximization is the most common profit-oriented objective for pricing, as it focuses on achieving the highest possible profits in the short term, aligning with the primary financial goals of many businesses.

Question 6

________ refers to the variability of purchase behavior with changes in price.
A) Price elasticity
B) Price transparency
C) Dynamic pricing
D) Competition-based pricing

Accepted Answer

Price elasticity refers to how the demand for a product changes in response to a change in its price. If a small change in price leads to a large change in demand, the product is said to have high price elasticity.

Question 7

Buyer power on the internet is the result of all the following except ________.
A) product availability
B) product costs
C) large amount of information
D) willingness of sellers to negotiate

Accepted Answer

Product costs are not directly influenced by buyer power on the internet; rather, they are determined by various factors including production costs, competition, and market demand. Buyer power is more about the ability to access information, negotiate, and choose from available options.

Question 8

The phenomenon that some people may actually pay a higher price for auctioned products than they would pay an online retailer is known as ________.
A) seller control
B) buyer control
C) dynamic pricing
D) the winner's curse

Accepted Answer

The winner's curse refers to the phenomenon where the winner of an auction may end up overpaying or experiencing regret for winning the bid at a price higher than the item's intrinsic value or the price available through other channels, such as online retailers.

Question 9

________ power is based largely on the huge quantity of information and product availability on the web.
A) Buyer
B) Seller
C) Market
D) All of the above

Accepted Answer

Buyer power is enhanced by the vast amount of information and product options available on the internet, allowing consumers to easily compare and choose products, leading to more informed purchasing decisions.

Question 10

In order to avoid upsetting customers who learn they are getting different prices than their neighbors, e-marketers should use customer-accepted reasons. These reasons may include ________.
A) giving discounts to new customers
B) giving discounts to loyal customers
C) adjusting shipping fees due to outlying locations
D) all of the above

Accepted Answer

All the options listed are customer-accepted reasons for price differences. Discounts for new customers can attract new business, loyal customers appreciate rewards for their loyalty, and shipping fees adjustments are logical for distant locations.

Question 11

In general, marketers can employ which of the following types of pricing strategies both online and offline ________.
A) fixed pricing
B) auction pricing
C) dynamic pricing
D) all of the above

Accepted Answer

Marketers can use fixed pricing, auction pricing, and dynamic pricing strategies both online and offline, adapting to various market conditions and consumer behaviors.

Question 12

Which of the following are possible explanations of online price dispersion?
A) delivery options
B) time-sensitive shopping habits
C) switching costs
D) all of the above

Accepted Answer

Online price dispersion can be influenced by various factors including delivery options, time-sensitive shopping habits, and switching costs, among others. These elements contribute to the variation in prices for the same product across different online platforms.

Question 13

Which of the following attributes of the internet puts upward pressure on prices?
A) online customer service
B) affiliate programs
C) customer acquisition costs
D) all of the above

Accepted Answer

All of the listed attributes (online customer service, affiliate programs, and customer acquisition costs) contribute to the overall costs of running an online business. These costs can put upward pressure on prices as businesses may pass these expenses onto consumers in the form of higher prices.

Question 14

Which of the following customer group is of least value to a seller?
A) A+
B) A
C) B
D) C

Accepted Answer

Customer groups are often ranked by their value to a seller, with "A+" being the highest value and "C" typically being the lowest. This ranking is based on factors such as purchase frequency, volume, and profitability. Therefore, a "C" customer group is considered of least value.

Question 15

All of the following are types of markets recognized by economists except ________.
A) pure competition
B) oligopolistic monopoly
C) monopolistic competition
D) oligopolistic competition

Accepted Answer

Oligopolistic monopoly is not a recognized market type. Economists typically identify pure competition, monopolistic competition, and oligopolistic competition as distinct market structures. An oligopolistic monopoly combines terms from oligopoly (a market dominated by a few firms) and monopoly (a market with only one seller), which contradicts the definitions of recognized market types.

Question 16

________ refers to the idea that both buyers and sellers can view all competitive prices for items sold online.
A) Price transparency
B) Dynamic pricing
C) Online pricing
D) None of the above

Accepted Answer

Price transparency refers to the concept where all the competitive prices for items sold online are visible to both buyers and sellers, allowing for more informed decision-making.

Question 17

Which of the following attributes of the internet puts downward pressure on prices?
A) distribution
B) price dispersion
C) self-service order processing
D) all of the above

Accepted Answer

The answer of Which of the following attributes of the...

Question 18

________ suggests that 80% of a firm's business typically comes from the top 20% of customers.
A) The Pareto principle
B) Customer loyalty
C) Value segmenting
D) Dynamic pricing

Accepted Answer

The Pareto principle, also known as the 80/20 rule, suggests that 80% of effects come from 20% of causes. In the context of business, it often means that a large portion of a company's business comes from a relatively small fraction of its customers.

Question 19

Companies select market-oriented pricing on the internet to ________.
A) maximize profits
B) grow market share
C) increase return on investment (ROI)
D) all of the above

Accepted Answer

The answer of Companies select market-oriented pricing on the internet...

Question 20

A market is truly efficient when customers have equal access to information about ________.
A) products
B) prices
C) distribution
D) all of the above

Accepted Answer

In a truly efficient market, customers have equal access to information about products, prices, and distribution, ensuring fair competition and informed decision-making.

Quiz 10: Price: the Online Value

Broadly speaking, the definition of price includes all of the following values except ________.

and are types of fixed pricing strategies.

When using ________ segment pricing, a company may set different prices when selling a product in different states or regions.

________ pricing uses the internet properties for mass customization, automatically devising pricing based on order size and timing, demand and supply levels, and other preset decision factors.

________ is the most common profit-oriented objective for pricing.

________ refers to the variability of purchase behavior with changes in price.

Buyer power on the internet is the result of all the following except ________.

The phenomenon that some people may actually pay a higher price for auctioned products than they would pay an online retailer is known as ________.

________ power is based largely on the huge quantity of information and product availability on the web.

In order to avoid upsetting customers who learn they are getting different prices than their neighbors, e-marketers should use customer-accepted reasons. These reasons may include ________.

In general, marketers can employ which of the following types of pricing strategies both online and offline ________.

Which of the following are possible explanations of online price dispersion?

Which of the following attributes of the internet puts upward pressure on prices?

Which of the following customer group is of least value to a seller?

All of the following are types of markets recognized by economists except ________.

________ refers to the idea that both buyers and sellers can view all competitive prices for items sold online.

Which of the following attributes of the internet puts downward pressure on prices?

________ suggests that 80% of a firm's business typically comes from the top 20% of customers.

Companies select market-oriented pricing on the internet to ________.

A market is truly efficient when customers have equal access to information about ________.