Question 1

Sales of Noritake dinner plates are high even though a Noritake dinner plate is priced relatively high for its product class.This is because it offers high quality,has special features,and consumers view it as a prestige product.The pricing used by Noritake can be best described as _____ pricing.
A) value
B) markup
C) deceptive
D) predatory

Accepted Answer

Setting prices so that targeted customers will perceive products to offer greater value than competitive offerings is called value pricing.

Question 2

It is common for the manufacturer of a new product to have to pay a retailer $30,000 in order to get the shelf space needed to sell its new product in a particular retail establishment.This $30,000 fee is an example of a _____ allowance.
A) slotting
B) promotional
C) quantity
D) functional

Accepted Answer

Slotting allowances are payments to retailers to get them to stock items on their shelves. This can increase sales but add marketing cost to the manufacturer and affect profits.

Question 3

Which of the following types of discounts is offered to channel members for purchasing and marketing a large number of units?
A) Quantity discount
B) Promotional discount
C) Slotting discount
D) Loyalty discount

Accepted Answer

Quantity discounts are discounts for purchasing a large number of units.

Question 4

An advertisement for the 'Ellery Queen's Mystery Magazine' read: "Act now.Buy a 24-issue subscription and save $49 over the newsstand price." This is an example of a _____.
A) promotional allowance
B) slotting allowance
C) quantity discount
D) functional discount

Accepted Answer

Quantity discounts are discounts for purchasing a large number of units.

Question 5

_____ allowances are payments to retailers to get them to stock items on their shelves which in turn can increase sales but also add marketing cost to the manufacturer and affect profits.
A) Quantity
B) Consumer
C) Slotting
D) Promotional

Accepted Answer

Slotting allowances are payments to retailers to get them to stock items on their shelves. This can increase sales but add marketing cost to the manufacturer and affect profits.

Question 6

_____ are often in the form of pricing reductions in exchange for the channel member featuring the product in store advertising or on in-store displays.
A) Quantity discounts
B) Slotting allowances
C) Promotional allowances
D) Rebates discounts

Accepted Answer

Promotional allowances are often in the form of price reductions in exchange for the channel member performing various promotional activities, such as featuring the product in store advertising or on in-store displays.

Quiz 11: Pricing Strategy

Sales of Noritake dinner plates are high even though a Noritake dinner plate is priced relatively high for its product class.This is because it offers high quality,has special features,and consumers view it as a prestige product.The pricing used by Noritake can be best described as _____ pricing.

It is common for the manufacturer of a new product to have to pay a retailer $30,000 in order to get the shelf space needed to sell its new product in a particular retail establishment.This $30,000 fee is an example of a _____ allowance.

Which of the following types of discounts is offered to channel members for purchasing and marketing a large number of units?

An advertisement for the 'Ellery Queen's Mystery Magazine' read: "Act now.Buy a 24-issue subscription and save $49 over the newsstand price." This is an example of a _____.

_____ allowances are payments to retailers to get them to stock items on their shelves which in turn can increase sales but also add marketing cost to the manufacturer and affect profits.

_____ are often in the form of pricing reductions in exchange for the channel member featuring the product in store advertising or on in-store displays.