Exam 16: Pricing Objectives and Policies

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KeyLine, Inc., engages primarily in the manufacture of touch-sensitive LCD monitors. The company prices its products so that it earns a 20 percent return on investment. Which pricing objective is the company following?

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"Zone pricing":

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A focus on a target return or return on investment are characteristic of _____ pricing objectives.

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Under the Robinson-Patman Act, meeting a competitor's price is not permitted as a defense in price discrimination cases.

(True/False)
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Pricing objectives need not be explicitly stated.

(True/False)
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Some marketing managers have set up relationships with Internet companies whose ads invite customers to "set your own price." Such marketing managers

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A manufacturer spends a large amount of money on research and development leading to the introduction of a product that is likely to present the firm with a breakthrough opportunity. The manufacturer prices the product with the goal of achieving a 20 percent return on its investment. Which of the following types of pricing objectives is the company using?

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Which of the following give a producer a way to be certain that final consumers actually get the price reduction?

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The court decisions in the Borden case clearly show that:

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Allowances are given to final consumers, business customers, or channel members for accepting more of something.

(True/False)
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A reduction from list price given to retailers to get shelf space for a product is a:

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Which of the following is a profit-oriented pricing objective?

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A manufacturer could try to defend itself against charges of price discrimination under the Robinson-Patman Act by claiming that:

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Most firms in the U.S. avoid using a one-price policy because it is so inconvenient to administer and leads to more negotiation and higher selling costs.

(True/False)
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A one-price policy means offering the same price:

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If a seller wanted to pay the delivery charges and keep title to the products until delivered to a buyer, the seller could use "F.O.B. buyer's factory" geographic pricing terms. F.O.B. buyer's factory. In this case, title does not pass until the products are delivered. F.O.B. delivered or

(True/False)
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F.O.B. "shipping point" pricing simplifies the seller's pricing, but tends to reduce the size of the seller's market. F.O.B. shipping point pricing simplifies the seller's pricing but it may narrow the market.

(True/False)
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_____ means setting a fair price level for a marketing mix that really gives the target market superior customer value.

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Which of the following statements concerning "value pricing" is FALSE?

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A _____ price policy tries to sell the top of the demand curve at a high price before aiming at more price-sensitive customers.

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