Test Bank for Principles of Marketing 19e
Global Edition – Verified Questions & Detailed
A+ Answers
< (By Kotler, Armstrong, Balasubramanian |
Chapters 1–20 | Latest 2025 Edition) >
1. Companies facing the challenge of setting prices for the first time can choose between
two broad strategies: market-penetration pricing and ________. - ANSWER market-
skimming pricing
2. Of the following, which statement would NOT support a market-skimming policy for a
new product?
a. The product's quality and image support its higher price.
b. Enough buyers want the products at that price.
c. Competitors are not able to undercut the high price.
d. Competitors can enter the market easily.
e. C and D - ANSWER D) Competitors can enter the market easily.
,3. A firm is using ________ when it charges a high, premium price for a new product with
the intention of reducing the price in the future. - ANSWER price skimming
4. ________ pricing is the approach of setting a low initial price in order to attract a large
number of buyers quickly and win a large market share. - ANSWER Market-
penetration
5. Accent Software faces the conditions below, all of which support Accent's use of a
market- penetration pricing strategy EXCEPT that ________.
a. the market is highly price sensitive
b. production and distribution costs will fall as sales volume increases
c. the product's quality and image support a high price D) a low price would help
keep out the competition
d. A and C - ANSWER C. the product's quality and image support a high price
6. Which of the following is a reason that a marketer would choose a penetration pricing
strategy? - ANSWER to discourage competition from entering the market
7. Companies usually develop ________ rather than single products. - ANSWER
product lines
,8. A marketer must be familiar with the five major product mix pricing situations. Which of
the following is NOT one of them?
a. product line pricing
b. optional-product pricing
c. captive-product pricing
d. unbundled product pricing
e. by-product pricing - ANSWER D) unbundled product pricing
9. A challenge for management in product line pricing is to decide on the price steps
between the ________. - ANSWER various products in a line
10. When using price steps, the seller must establish perceived ________ that support the
price differences. - ANSWER quality differences
11. Many producers who use captive-product pricing set the price of the main product
________ and set ________ on the supplies necessary to use the product. - ANSWER
low; high markups
, 12. When amusement parks and movie theaters charge admission plus fees for food and other
attractions, they are following a(n) ________ pricing strategy. - ANSWER captive-
product
13. HiPoint Telephone Company uses two-part pricing for its long-distance call charges.
Because this is a service, the price is broken into a fixed rate plus a ________. -
ANSWER variable usage rate
14. Companies involved in deciding which items to include in the base price and which to
offer as options are engaged in ________ pricing. - ANSWER optional-product
15. Keeping in mind that a seller must sell by-products at a price that covers more than the
cost of storing and delivering them, which of the following will by-product pricing permit
a seller to do?
a. increase the main product's price
b. make extra profit
c. reduce the main product's price
d. none of the above
e. B and C - ANSWER B) make extra profit
16. C) reduce the main product's price
Global Edition – Verified Questions & Detailed
A+ Answers
< (By Kotler, Armstrong, Balasubramanian |
Chapters 1–20 | Latest 2025 Edition) >
1. Companies facing the challenge of setting prices for the first time can choose between
two broad strategies: market-penetration pricing and ________. - ANSWER market-
skimming pricing
2. Of the following, which statement would NOT support a market-skimming policy for a
new product?
a. The product's quality and image support its higher price.
b. Enough buyers want the products at that price.
c. Competitors are not able to undercut the high price.
d. Competitors can enter the market easily.
e. C and D - ANSWER D) Competitors can enter the market easily.
,3. A firm is using ________ when it charges a high, premium price for a new product with
the intention of reducing the price in the future. - ANSWER price skimming
4. ________ pricing is the approach of setting a low initial price in order to attract a large
number of buyers quickly and win a large market share. - ANSWER Market-
penetration
5. Accent Software faces the conditions below, all of which support Accent's use of a
market- penetration pricing strategy EXCEPT that ________.
a. the market is highly price sensitive
b. production and distribution costs will fall as sales volume increases
c. the product's quality and image support a high price D) a low price would help
keep out the competition
d. A and C - ANSWER C. the product's quality and image support a high price
6. Which of the following is a reason that a marketer would choose a penetration pricing
strategy? - ANSWER to discourage competition from entering the market
7. Companies usually develop ________ rather than single products. - ANSWER
product lines
,8. A marketer must be familiar with the five major product mix pricing situations. Which of
the following is NOT one of them?
a. product line pricing
b. optional-product pricing
c. captive-product pricing
d. unbundled product pricing
e. by-product pricing - ANSWER D) unbundled product pricing
9. A challenge for management in product line pricing is to decide on the price steps
between the ________. - ANSWER various products in a line
10. When using price steps, the seller must establish perceived ________ that support the
price differences. - ANSWER quality differences
11. Many producers who use captive-product pricing set the price of the main product
________ and set ________ on the supplies necessary to use the product. - ANSWER
low; high markups
, 12. When amusement parks and movie theaters charge admission plus fees for food and other
attractions, they are following a(n) ________ pricing strategy. - ANSWER captive-
product
13. HiPoint Telephone Company uses two-part pricing for its long-distance call charges.
Because this is a service, the price is broken into a fixed rate plus a ________. -
ANSWER variable usage rate
14. Companies involved in deciding which items to include in the base price and which to
offer as options are engaged in ________ pricing. - ANSWER optional-product
15. Keeping in mind that a seller must sell by-products at a price that covers more than the
cost of storing and delivering them, which of the following will by-product pricing permit
a seller to do?
a. increase the main product's price
b. make extra profit
c. reduce the main product's price
d. none of the above
e. B and C - ANSWER B) make extra profit
16. C) reduce the main product's price
