Question 1

Consumers' ability to replace other products by the focal brand is called the:

Accepted Answer

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

Question 2

Leader pricing is an illegal attempt to increase store traffic by pricing a regularly purchased item above the store's cost.

Accepted Answer

A) True 
 B)False

Question 3

A department store offers a 30-percent discount on Christmas trees if the trees are bought before December 1.This is an example of:

Accepted Answer

A) a quantity discount. 
B) geographic pricing. 
C) an allowance. 
D) a seasonal discount. 
E) uniform delivered pricing.

Question 4

The pattern of buying both premium and low-priced merchandise or patronizing both expensive, status-oriented retailers and price-oriented retailers is called:

Accepted Answer

A) mystery shopping. 
B) double shopping. 
C) joint shopping. 
D) cross-shopping. 
E) mixed shopping.

Question 5

The document the shoe department gives to every customer who buys a pair of shoes is a:

Accepted Answer

A) rebate. 
B) size discount. 
C) markdown. 
D) coupon. 
E) quality discount.

Question 6

The price of a single piece of a product which is equal to the price less the variable cost per unit is called the:

Accepted Answer

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

Question 7

A car company introduces a new car in the market.It maintains a low introductory price, aiming at the mid-level segment.The main objective of the company is to build sales, market share, and profits quickly.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 8

Jareds manufactures electronic appliances.Jareds does not have any retail stores of its own and prefers to sell its products through Ramson.Ramson stores are striking in decor, well maintained and serviced by a polite and well informed staff that pays great attention to customer service and feedback.Ramson also has a huge advertising budget, and launches prominent promotional campaigns on a regular basis.In fact Jareds offers them a discount on products that are included in these campaigns.This is an example of a(n):

Accepted Answer

A) seasonal discount. 
B) cash discount. 
C) advertising allowance. 
D) quantity discount. 
E) listing allowance.

Question 9

Mike wants to set up a factory to manufacture roller skates.He plans to employ hundred people in his office.Mike's other expenses include rent, utilities, insurance, administrative salaries (for executives and higher-level managers), and depreciation of the physical plant and equipment.Rent, utilities, insurance, administrative salaries (for executives and higher-level managers), and depreciation of the physical plant and equipment constitute the:

Accepted Answer

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

Question 10

A company specializing in bathroom fittings offers state-of-the-art products.The products are highly priced and the company is aware that sales will be limited.When the company offers these products, its main aim is to enhance its reputation and image.This will lead to an increase in the company's value in the minds of consumers.This is an example of:

Accepted Answer

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

Question 11

Predatory pricing, although representative of a form of unfair competition, promotes free trade.

Accepted Answer

A) True 
 B)False

Question 12

Books Inc.is an online seller of books.It ships its books to different parts of the world.The company, when it ships the books, charges the same rate irrespective of the location of the customer.This is an example of:

Accepted Answer

A) a quantity discount. 
B) geographic pricing. 
C) an allowance. 
D) a seasonal discount. 
E) uniform delivered pricing.

Question 13

Value is explicitly considered in competitor-oriented strategies.

Accepted Answer

A) True 
 B)False

Question 14

A pricing tactic is a long-term approach to setting prices across all the firm's products based on the five Cs of pricing.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following refers to a pricing method by which the firm deliberately prices a product above the prices set for competing products to capture those consumers who always shop for the best or for whom price does not matter?

Accepted Answer

A) improvement value method 
B) supply-based method 
C) demand-based method 
D) premium pricing method 
E) cost of ownership method

Question 16

Jeff is a hockey player who uses hockey sticks manufactured by a particular company.The manufacturing company decides to increase the price of hockey sticks, so Jeff switches to another company offering similar quality hockey sticks at a lower price.This is an example of the:

Accepted Answer

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

Question 17

Which of the following shows how many units of a product or service consumers will demand during a specific period at different prices?

Accepted Answer

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

Question 18

A company advertises that winter pullovers and jackets will be sold at a 50-percent discount if they are ordered before September 30.This is an example of a(n):

Accepted Answer

A) seasonal discount. 
B) advertising allowance. 
C) odd price. 
D) listing allowance. 
E) cash discount.

Question 19

Which of the following is reflective of oligopolistic competition?

Accepted Answer

A) A large number of companies sell silver in a market where the price of silver is determined by demand and supply. 
B) Ramsons is the sole supplier of military binoculars in the market. 
C) Hundreds of firms make wristwatches, and the market is highly differentiated. 
D) Pure Diamonds controls the diamond market as it is the only supplier of diamonds. 
E) A price war occurs between Comfort Airlines and Air Secure, the only two airlines in the market.

Question 20

A furniture manufacturing company in Canada delivers goods to its customers in Europe.The shipping company that delivers the goods to customers has divided the continent into five different zones and charges according to the rate prevalent in each of the zones.This is an example of:

Accepted Answer

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

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

Consumers' ability to replace other products by the focal brand is called the:

Leader pricing is an illegal attempt to increase store traffic by pricing a regularly purchased item above the store's cost.

A department store offers a 30-percent discount on Christmas trees if the trees are bought before December 1.This is an example of:

The pattern of buying both premium and low-priced merchandise or patronizing both expensive, status-oriented retailers and price-oriented retailers is called:

The document the shoe department gives to every customer who buys a pair of shoes is a:

The price of a single piece of a product which is equal to the price less the variable cost per unit is called the:

A car company introduces a new car in the market.It maintains a low introductory price, aiming at the mid-level segment.The main objective of the company is to build sales, market share, and profits quickly.This is an example of:

Predatory pricing, although representative of a form of unfair competition, promotes free trade.

Books Inc.is an online seller of books.It ships its books to different parts of the world.The company, when it ships the books, charges the same rate irrespective of the location of the customer.This is an example of:

Value is explicitly considered in competitor-oriented strategies.

A pricing tactic is a long-term approach to setting prices across all the firm's products based on the five Cs of pricing.

Which of the following refers to a pricing method by which the firm deliberately prices a product above the prices set for competing products to capture those consumers who always shop for the best or for whom price does not matter?

Jeff is a hockey player who uses hockey sticks manufactured by a particular company.The manufacturing company decides to increase the price of hockey sticks, so Jeff switches to another company offering similar quality hockey sticks at a lower price.This is an example of the:

Which of the following shows how many units of a product or service consumers will demand during a specific period at different prices?

A company advertises that winter pullovers and jackets will be sold at a 50-percent discount if they are ordered before September 30.This is an example of a(n) :

Which of the following is reflective of oligopolistic competition?

A furniture manufacturing company in Canada delivers goods to its customers in Europe.The shipping company that delivers the goods to customers has divided the continent into five different zones and charges according to the rate prevalent in each of the zones.This is an example of: