Question 1

When many firms sell closely related but not homogeneous products, this is called:

Accepted Answer

A) pure competition. 
B) price engagement. 
C) monopolistic competition. 
D) a price conflict. 
E) a price war.

Question 2

A strategy of selling a new product or service at a high price that innovators and early adopters are willing to pay to obtain is called:

Accepted Answer

A) price fixing. 
B) price skimming. 
C) price discrimination. 
D) bait and switch. 
E) resale price maintenance.

Question 3

A strategy companies use to emphasize the continuity of their retail prices at a level somewhere between the regular, nonsale price and the deep-discount sale prices their competitors may offer is called:

Accepted Answer

A) everyday low pricing. 
B) external reference price. 
C) high/low pricing. 
D) market penetration pricing. 
E) internal reference price.

Question 4

A company launches a new car in the luxury segment.When it fixes the price of the car it takes into the consideration the price of all the cars in the luxury segment.It looks at rival companies for reference.It fixes the price and provides accessories on par with what is provided by the other car manufacturers in the luxury segment.This is an example of:

Accepted Answer

A) sales orientation. 
B) customer orientation. 
C) profit orientation. 
D) marketing orientation. 
E) competitor orientation.

Question 5

For price skimming to work, the product or service must offer consumers new benefits currently unavailable in alternative products.

Accepted Answer

A) True 
 B)False

Question 6

A company objective that can be implemented by focusing on target profit pricing, maximizing profits, or target return pricing is called:

Accepted Answer

A) sales orientation. 
B) customer orientation. 
C) profit orientation. 
D) marketing orientation. 
E) competitor orientation.

Question 7

A multi-billionaire industrialist purchases a Van Gogh painting for $140 million.This is an example of a(n):

Accepted Answer

A) unsought product. 
B) prestige product. 
C) shopping product. 
D) convenience product. 
E) standard product.

Question 8

James goes to the market to buy a duffle bag.When James last bought a duffle bag, it cost him $74.99, a price he was comfortable with.Now he finds that it costs $99.99 and finds the price too high.This is an example of:

Accepted Answer

A) everyday low pricing. 
B) external reference price. 
C) high/low pricing. 
D) market penetration pricing. 
E) internal reference price.

Question 9

Which of the following refer to those products that consumers purchase for status rather than functionality?

Accepted Answer

A) unsought products 
B) prestige products 
C) shopping products 
D) convenience products 
E) standard products

Question 10

A shoe manufacturer has an in-house manufacturing brand.It manufactures shoes for customers in the middle-range segment and the upper-range segment.It also has shoes in between these segments, at different prices, to represent distinct differences in quality.This is an example of:

Accepted Answer

A) price fixing. 
B) price bundling. 
C) price discrimination. 
D) leader pricing. 
E) price lining.

Question 11

A hotel chain drastically reduces the rates for its rooms during Christmas.This is done as part of a promotional offer to try to boost sales.This is an example of:

Accepted Answer

A) everyday low pricing. 
B) external reference price. 
C) high/low pricing. 
D) market penetration pricing. 
E) internal reference price.

Question 12

Initially, the health club offers a very low enrolment and monthly fee to attract customers and to drive out competition and be the only gym in that particular town.This is an example of:

Accepted Answer

A) predatory pricing. 
B) vertical price fixing. 
C) horizontal price fixing. 
D) price discrimination. 
E) bait and switch.

Question 13

If a firm believes that increased selling will help the firm more than increasing profits, the firm is using a:

Accepted Answer

A) sales orientation. 
B) customer orientation. 
C) profit orientation. 
D) marketing orientation. 
E) competitor orientation.

Question 14

Which of the following occurs when only a few firms dominate a market?

Accepted Answer

A) duopoly 
B) monopsony 
C) oligopoly 
D) monopoly 
E) oligopsony

Question 15

The moment at which the number of units sold generates just enough revenue to equal the total costs is called the:

Accepted Answer

A) break-even point. 
B) variable costs. 
C) contribution per unit. 
D) demand curve. 
E) fixed costs.

Question 16

A store that sells hockey equipment offers a discount if a customer also buys a pair of skates.The combined purchase costs less than what it would cost the customer to buy the equipment individually.This is an example of:

Accepted Answer

A) geographic pricing. 
B) price bundling. 
C) price lining. 
D) leader pricing. 
E) uniform delivered pricing.

Question 17

The change in the quantity of a product demanded by consumers because of a change in their earnings is called the:

Accepted Answer

A) substitution effect. 
B) price effect. 
C) supply effect. 
D) demand effect. 
E) income effect.

Question 18

Which of the following occurs when only one firm provides the product or service in a particular industry?

Accepted Answer

A) duopoly 
B) monopsony 
C) oligopoly 
D) monopoly 
E) oligopsony

Question 19

Which of the following pricing methods focuses on the overall value of the product offering as perceived by consumers, who determine value by comparing the benefits they expect the product to deliver with the sacrifice they will need to make to acquire the product?

Accepted Answer

A) cost-based pricing methods 
B) value-based pricing methods 
C) competitor-based pricing methods 
D) supply-based pricing methods 
E) demand-based pricing methods

Question 20

The maximizing profits strategy uses price to stimulate a certain level of sales at a certain profit per unit.

Accepted Answer

A) True 
 B)False

Exam 11: Value Delivery : Designing the Distribution Channel and Supply Chain Marketing Channels

When many firms sell closely related but not homogeneous products, this is called:

A strategy of selling a new product or service at a high price that innovators and early adopters are willing to pay to obtain is called:

A strategy companies use to emphasize the continuity of their retail prices at a level somewhere between the regular, nonsale price and the deep-discount sale prices their competitors may offer is called:

For price skimming to work, the product or service must offer consumers new benefits currently unavailable in alternative products.

A company objective that can be implemented by focusing on target profit pricing, maximizing profits, or target return pricing is called:

A multi-billionaire industrialist purchases a Van Gogh painting for $140 million.This is an example of a(n) :

James goes to the market to buy a duffle bag.When James last bought a duffle bag, it cost him $74.99, a price he was comfortable with.Now he finds that it costs $99.99 and finds the price too high.This is an example of:

Which of the following refer to those products that consumers purchase for status rather than functionality?

A shoe manufacturer has an in-house manufacturing brand.It manufactures shoes for customers in the middle-range segment and the upper-range segment.It also has shoes in between these segments, at different prices, to represent distinct differences in quality.This is an example of:

A hotel chain drastically reduces the rates for its rooms during Christmas.This is done as part of a promotional offer to try to boost sales.This is an example of:

Initially, the health club offers a very low enrolment and monthly fee to attract customers and to drive out competition and be the only gym in that particular town.This is an example of:

If a firm believes that increased selling will help the firm more than increasing profits, the firm is using a:

Which of the following occurs when only a few firms dominate a market?

The moment at which the number of units sold generates just enough revenue to equal the total costs is called the:

A store that sells hockey equipment offers a discount if a customer also buys a pair of skates.The combined purchase costs less than what it would cost the customer to buy the equipment individually.This is an example of:

The change in the quantity of a product demanded by consumers because of a change in their earnings is called the:

Which of the following occurs when only one firm provides the product or service in a particular industry?

Which of the following pricing methods focuses on the overall value of the product offering as perceived by consumers, who determine value by comparing the benefits they expect the product to deliver with the sacrifice they will need to make to acquire the product?

The maximizing profits strategy uses price to stimulate a certain level of sales at a certain profit per unit.