MKTG 409 Chapter 20

Which of the following should be accomplished after developing pricing objectives? a. assessing the target market's evaluation of price b. selecting a basis for pricing c. selecting a pricing strategy d. determining a specific price e. evaluating competitors' prices

a. assessing the target market's evaluation of price

Which of the following pricing strategies sets the basic product in a product line low, but the price on the items required to operate or enhance it are higher? a. premium pricing b. captive pricing c. reference pricing d. bait pricing e. price lining

b. captive pricing

The Federal Trade Commission has established guidelines for _______: If the higher price against which the comparison is made is the price formerly charged for the product, the seller must have made the previous price available to customers for a reasonable time period. a. reference pricing b. comparison discounting c. bait pricing d. price leaders e. special-event pricing

b. comparison discounting

Which of the following price bases is mostly likely to be used for commercial construction projects or custom made equipment? a. markup pricing b. cost-plus pricing c. competition-based pricing d. yield management e. demand-based pricing

b. cost-plus pricing

ACME has a pricing objective to increase its primary product's sales relative to total industry sales. This is best describe as a(n) _____. a. product quality objective b. market share objective c. status quo objective d. return-on-investment objective e. cash flow objective

b. market share objective

Which of the following pricing objectives can reduce a firm's risks by helping to stabilize demand for its products? a. profit b. status quo c. market share d. product quality e. cash flow

b. status quo

Assume a retailer purchases a can of premium dog food at $2.25 and adds 75 cents to the cost, making the price $3. What is the markup as a percentage of selling price? a. 5% b. 100% c. 25% d. 33% e. 50%

c. 25%

Sleep Train's Presidents Day sales are an example of _____. a. price skimming b. negotiated pricing c. periodic discounting d. secondary-market pricing e. penetration pricing

c. periodic discounting

Which of the following objectives is likely to be more expensive for a firm as the cost of materials and research and development may be greater? a. profit b. market share c. product quality d. cash flow e. status quo

c. product quality

Which of the following is often used by producers of relatively homogeneous products, especially when the target market considers price to be an important purchase consideration? a. demand-based pricing b. cost-based pricing c. markup pricing d. competition-based pricing e. cost-plus pricing

d. competition-based pricing

In the absence of government controls, pricing is a(n) ____ and ____ way to adjust the marketing mix. a. rigid; convenient b. ethical; convenient c. flexible; challenging d. flexible; convenient e. flexible; ill-timed

d. flexible; convenient

Firefly Space Shuttles is using a strategy of maximizing revenues by making numerous price changes in response to demand, competitors' prices, or environmental conditions. This is best described as _____. a. markup pricing b. cost-based pricing c. cost-plus pricing d. yield management e. competition-based pricing

d. yield management

Kara Thrace operates a service business that engages in systematically collecting data on brands and prices at competitors' stores. For which stage of the price establishment process would this service be most appropriate? a. selecting a basis for pricing b. assessing the target market's evaluation of price c. selecting a pricing strategy d. developing pricing objectives e. evaluating competitors' prices

e. evaluating competitors' prices

Which pricing strategy provides the most flexible introductory base price? a. premium pricing b. penetration pricing c. captive pricing d. periodic discounting e. price skimming

e. price skimming

Which of the following product-line pricing strategies is NOT generally used for business products? a. premium pricing b. captive pricing c. price lining d. bait pricing e. psychological pricing

e. psychological pricing