Question 1

Unfair trade practice acts put a higher limit on prices, especially at the wholesale and retail levels.

Accepted Answer

A) True 
 B)False

Question 2

Caught between the threat of antitrust action, stockholder demands, and public interest groups, some large corporations set a(an) ______________ pricing objective.

Accepted Answer

A)  increasing target return 
B)  "aggressive" competition 
C)  profit maximization 
D)  increasing market share 
E)  satisfactory long-run target return 
A)  increasing target return 
B)  "aggressive" competition 
C)  profit maximization 
D)  increasing market share 
E)  satisfactory long-run target return

Question 3

Which of the following best defines the goal of a sales-oriented pricing objective?

Accepted Answer

A)  Increasing the target return on a product 
B)  Gaining the maximum profit on a product 
C)  Increasing the market share of a product 
D)  Stabilizing prices across different markets for a product 
E)  Gaining a greater return on the investment in a product 
A)  Increasing the target return on a product 
B)  Gaining the maximum profit on a product 
C)  Increasing the market share of a product 
D)  Stabilizing prices across different markets for a product 
E)  Gaining a greater return on the investment in a product

Question 4

Managers justify status quo objectives as an attempt to do all of the following except

Accepted Answer

A)  stabilize prices. 
B)  meet competition. 
C)  maximize profits. 
D)  avoid competition. 
E)  stabilize market situation. 
A)  stabilize prices. 
B)  meet competition. 
C)  maximize profits. 
D)  avoid competition. 
E)  stabilize market situation.

Question 5

Cash discount terms of 2/10, net 30 on an invoice would-in effect-amount to borrowing at an annual interest rate of about ________ percent if the buyer did not pay the invoice for 30 days.

Accepted Answer

A)  10 
B)  30 
C)  18 
D)  12 
E)  36 
A)  10 
B)  30 
C)  18 
D)  12 
E)  36

Question 6

_____ is what a customer must give up to get the benefits offered by the rest of a firm's marketing mix.

Accepted Answer

A)  Promotion 
B)  Price 
C)  Product 
D)  Past 
E)  Profit 
A)  Promotion 
B)  Price 
C)  Product 
D)  Past 
E)  Profit

Question 7

The haggling that often occurs when a consumer buys a new car is a direct result of the flexible pricing most auto dealers use.

Accepted Answer

A) True 
 B)False

Question 8

Sales-oriented pricing objectives include:

Accepted Answer

A)  Growth in unit sales, dollar sales, or share of market. 
B)  Meeting competition. 
C)  Target return. 
D)  Profit maximization. 
E)  None of these alternatives is correct. 
A)  Growth in unit sales, dollar sales, or share of market. 
B)  Meeting competition. 
C)  Target return. 
D)  Profit maximization. 
E)  None of these alternatives is correct.

Question 9

Which of the following laws specifically makes illegal any price discrimination which injures competition?

Accepted Answer

A)  Magnuson-Moss Act 
B)  Robinson-Patman Act 
C)  Wheeler-Lea Act 
D)  FTC Act 
E)  Sherman Act 
A)  Magnuson-Moss Act 
B)  Robinson-Patman Act 
C)  Wheeler-Lea Act 
D)  FTC Act 
E)  Sherman Act

Question 10

Godiva, a maker of expensive European chocolates, does not mention price in its magazine advertising. Instead, the ad copy mentions the quality of the ingredients, the fine packaging, and the luxurious boutiques where Godiva chocolates are sold. Godiva seems to be pursuing a pricing objective of:

Accepted Answer

A)  Meeting competition. 
B)  Nonprice competition. 
C)  Target return. 
D)  Growth in market share. 
E)  None of these is a good answer. 
A)  Meeting competition. 
B)  Nonprice competition. 
C)  Target return. 
D)  Growth in market share. 
E)  None of these is a good answer.

Question 11

Why should pricing objectives be explicitly stated?

Accepted Answer

A)  They have a direct effect on pricing policies and the methods used to set the price. 
B)  It provides direction for company-level objectives. 
C)  Explicitly stating objectives provides legal protection for the firm. 
D)  Most state laws require explicitly stating legal objectives. 
E)  Firms should always choose profit-oriented pricing objectives. 
A)  They have a direct effect on pricing policies and the methods used to set the price. 
B)  It provides direction for company-level objectives. 
C)  Explicitly stating objectives provides legal protection for the firm. 
D)  Most state laws require explicitly stating legal objectives. 
E)  Firms should always choose profit-oriented pricing objectives.

Question 12

In oligopoly situations, the only sensible policy is meeting competition.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements about rebates is True?

Accepted Answer

A)  Rebates are refunds paid to consumers after a purchase. 
B)  Rebates ensure that the final consumer gets a producer's price reduction. 
C)  Many consumers purchase a product because a rebate is offered but then never request the refund. 
D)  Many consumers think that some sellers make it an unnecessary hassle to claim a rebate. 
E)  All of these statements about rebates are True. 
A)  Rebates are refunds paid to consumers after a purchase. 
B)  Rebates ensure that the final consumer gets a producer's price reduction. 
C)  Many consumers purchase a product because a rebate is offered but then never request the refund. 
D)  Many consumers think that some sellers make it an unnecessary hassle to claim a rebate. 
E)  All of these statements about rebates are True.

Question 14

Which act prohibits price discrimination unless it is based on cost differences or the need to meet competition?

Accepted Answer

A)  Sherman Act 
B)  Federal Trade Commission Act 
C)  Robinson-Patman Act 
D)  Magnuson-Moss Act 
E)  Wheeler-Lea Act 
A)  Sherman Act 
B)  Federal Trade Commission Act 
C)  Robinson-Patman Act 
D)  Magnuson-Moss Act 
E)  Wheeler-Lea Act

Question 15

The Robinson-Patman Act says that to be legal, price differences must be based on:

Accepted Answer

A)  a need to meet competition and cost differences 
B)  a reasonable profit margin as determined by the FTC 
C)  freight costs 
D)  transportation differences 
E)  None of these alternatives is correct. 
A)  a need to meet competition and cost differences 
B)  a reasonable profit margin as determined by the FTC 
C)  freight costs 
D)  transportation differences 
E)  None of these alternatives is correct.

Question 16

ProEdge Tech, a leading technology firm, has bluntly stated its pricing objective as: "Charge all the traffic will bear." This is an example of a

Accepted Answer

A)  profit maximization objective. 
B)  unit sales growth objective. 
C)  growth in market share objective. 
D)  target return objective. 
E)  nonprice competition objective. 
A)  profit maximization objective. 
B)  unit sales growth objective. 
C)  growth in market share objective. 
D)  target return objective. 
E)  nonprice competition objective.

Question 17

Everyday low pricing of consumer convenience products:

Accepted Answer

A)  tends to reduce fluctuations in prices customers actually pay. 
B)  has been used by many retailers even though no producers have adopted this approach. 
C)  makes it easy to quickly compete on price-without changing the basic strategy-when a competitor offers a particularly large discount for a short period of time. 
D)  relies on frequent discounts and allowances from the producer. 
E)  confuses customers and increases selling costs. 
A)  tends to reduce fluctuations in prices customers actually pay. 
B)  has been used by many retailers even though no producers have adopted this approach. 
C)  makes it easy to quickly compete on price-without changing the basic strategy-when a competitor offers a particularly large discount for a short period of time. 
D)  relies on frequent discounts and allowances from the producer. 
E)  confuses customers and increases selling costs.

Question 18

_____ are the prices final customers or users are normally asked to pay for products.

Accepted Answer

A)  Basic list prices 
B)  Discounts 
C)  Cost prices 
D)  Net prices 
E)  Payoffs 
A)  Basic list prices 
B)  Discounts 
C)  Cost prices 
D)  Net prices 
E)  Payoffs

Question 19

When setting a price level policy, a good marketing manager knows that:

Accepted Answer

A)  introductory price dealing usually does not increase sales. 
B)  a penetration price makes the most sense when there is a large "elite" market. 
C)  a "skimming" price may lead to low profits if demand is very elastic. 
D)  it's easy to raise prices if the initial price is too low. 
E)  none of these alternatives is correct. 
A)  introductory price dealing usually does not increase sales. 
B)  a penetration price makes the most sense when there is a large "elite" market. 
C)  a "skimming" price may lead to low profits if demand is very elastic. 
D)  it's easy to raise prices if the initial price is too low. 
E)  none of these alternatives is correct.

Question 20

Which of the following is a disadvantage of flexible pricing?

Accepted Answer

A)  It allows a salesperson to adjust the price in response to competition. 
B)  It leaves opportunities for sales by not adjusting to customers. 
C)  It allows a salesperson to adjust the price depending on his customer. 
D)  It can cause discontent among customers who realize they have paid a higher price than others. 
E)  It results in broadcasting a price that the competition can undercut. 
A)  It allows a salesperson to adjust the price in response to competition. 
B)  It leaves opportunities for sales by not adjusting to customers. 
C)  It allows a salesperson to adjust the price depending on his customer. 
D)  It can cause discontent among customers who realize they have paid a higher price than others. 
E)  It results in broadcasting a price that the competition can undercut.

Unfair trade practice acts put a higher limit on prices, especially at the wholesale and retail levels.

Caught between the threat of antitrust action, stockholder demands, and public interest groups, some large corporations set a(an) ______________ pricing objective.

Which of the following best defines the goal of a sales-oriented pricing objective?

Managers justify status quo objectives as an attempt to do all of the following except

Cash discount terms of 2/10, net 30 on an invoice would-in effect-amount to borrowing at an annual interest rate of about ________ percent if the buyer did not pay the invoice for 30 days.

_____ is what a customer must give up to get the benefits offered by the rest of a firm's marketing mix.

The haggling that often occurs when a consumer buys a new car is a direct result of the flexible pricing most auto dealers use.

Sales-oriented pricing objectives include:

Which of the following laws specifically makes illegal any price discrimination which injures competition?

Godiva, a maker of expensive European chocolates, does not mention price in its magazine advertising. Instead, the ad copy mentions the quality of the ingredients, the fine packaging, and the luxurious boutiques where Godiva chocolates are sold. Godiva seems to be pursuing a pricing objective of:

Why should pricing objectives be explicitly stated?

In oligopoly situations, the only sensible policy is meeting competition.

Which of the following statements about rebates is True?

Which act prohibits price discrimination unless it is based on cost differences or the need to meet competition?

The Robinson-Patman Act says that to be legal, price differences must be based on:

ProEdge Tech, a leading technology firm, has bluntly stated its pricing objective as: "Charge all the traffic will bear." This is an example of a

Everyday low pricing of consumer convenience products:

_____ are the prices final customers or users are normally asked to pay for products.

When setting a price level policy, a good marketing manager knows that:

Which of the following is a disadvantage of flexible pricing?

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Market Environment

Focusing Marketing Strategy With Segmentation and Positioning

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers, Wholesalers, and Their Strategy Planning

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Price Setting in the Business World

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challe

Filters

Exam 16: Pricing Objectives and Policies

Unfair trade practice acts put a higher limit on prices, especially at the wholesale and retail levels.

Caught between the threat of antitrust action, stockholder demands, and public interest groups, some large corporations set a(an) ______________ pricing objective.

Which of the following best defines the goal of a sales-oriented pricing objective?

Managers justify status quo objectives as an attempt to do all of the following except

Cash discount terms of 2/10, net 30 on an invoice would-in effect-amount to borrowing at an annual interest rate of about ________ percent if the buyer did not pay the invoice for 30 days.

_____ is what a customer must give up to get the benefits offered by the rest of a firm's marketing mix.

The haggling that often occurs when a consumer buys a new car is a direct result of the flexible pricing most auto dealers use.

Sales-oriented pricing objectives include:

Which of the following laws specifically makes illegal any price discrimination which injures competition?

Godiva, a maker of expensive European chocolates, does not mention price in its magazine advertising. Instead, the ad copy mentions the quality of the ingredients, the fine packaging, and the luxurious boutiques where Godiva chocolates are sold. Godiva seems to be pursuing a pricing objective of:

Why should pricing objectives be explicitly stated?

In oligopoly situations, the only sensible policy is meeting competition.

Which of the following statements about rebates is True?

Which act prohibits price discrimination unless it is based on cost differences or the need to meet competition?

The Robinson-Patman Act says that to be legal, price differences must be based on:

ProEdge Tech, a leading technology firm, has bluntly stated its pricing objective as: "Charge all the traffic will bear." This is an example of a

Everyday low pricing of consumer convenience products:

_____ are the prices final customers or users are normally asked to pay for products.

When setting a price level policy, a good marketing manager knows that:

Which of the following is a disadvantage of flexible pricing?

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Market Environment

Focusing Marketing Strategy With Segmentation and Positioning

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers, Wholesalers, and Their Strategy Planning

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Price Setting in the Business World

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challe

Filters