MKT Quiz 17

When a firm follows a value pricing policy, it attempts to a set a fair price level for a marketing mix that provides superior customer value. b match the prices set by its competitors but compete on a nonprice basis. c establish itself as the lowest-price business in its market. d charge every customer the same prices, regardless of where they make their purchases. e maximize profits for the firm on each sale, even at the cost of market share.

a

Which of the following is a disadvantage of a rigid one-price policy? a It allows competitors to undercut one's price. b It makes it difficult to maintain goodwill with customers. c It involves a great deal of difficulty in locating target customers. d It makes pricing more difficult. e It involves conflicts in channels.

a

A producer of sports equipment offers its retailers a 2 percent price reduction on all purchases if the dealer advertises its products locally. In this scenario, the producer is using a(n) a prize money allowance. b advertising allowance. c trade-in allowance. d push money allowance. e stocking allowance.

b

In the United States, selling the same product to different buyers at different prices is a legal in some states but illegal in others. b illegal if it injures competition. c illegal without prior permission from the FTC. d llegal under all circumstances. e legal in most industries.

b

Some producers give _____ to retailers to pass on to the retailers' salesclerks in return for aggressively selling particular items or lines. a cash discounts b cumulative discounts c "push money" allowances d advertising allowances e brokerage commissions

c

When Royal Blue Airlines began flying between Los Angeles and San Francisco, the airline offered individual travel agents a bonus of $5 each time they sold a Royal Blue ticket on the route. Royal Blue appears to be using a _____ allowance to encourage retail travel agents to promote its flights over the competition. a trade-in b seasonal c push money d stocking e functional

c

A(n) ________ is intended to reassure retailers or other intermediaries that they will make some profit on a new product even if consumers do not buy it, and thereby convince them to carry it. a trade-in allowance b coupon policy c cash discount d stocking allowance e trade policy

d

Mukesh is the marketing manager for a line of laundry products sold throughout the country. While there are many customers who are willing to pay the list price for his products, he wants to attract additional customers as well. What strategy would be most effective for Mukesh? a offering an advertising allowance b using sale prices c employing everday low pricing d using coupons and rebates e offering quantity discounts

d

Aster Co. has introduced a new product and set the price to help achieve "the 10% share we need to be in the game." This is an example of a a profit-oriented objective. b status quo objective. c target return objective. d profit maximization objective. e sales-oriented objective.

e

Frisky Flights is a regional airline based in El Paso. Frisky uses a computer system to set prices for its tickets. The price for any given flight changes over time based on demand. This is an example of a profit maximization. b skimming. c competition meeting. d price cutting. e dynamic pricing.

e

Nora is the marketing manager for a pharmaceutical firm that has just been approved to sell a unique new drug that cures the common cold. Nora decides to set a low price, reasoning that if the price is too high then many potential customers will be unable to unwilling to purchase the drug. Which pricing objective is most likely to be guiding Nora's decision? a status-quo b meeting competition c target return d market share e profit maximization

e

The amount of money that is charged for "something" of value, or _____, is one of the four major strategy decision variables that a marketing manager controls. a Profit b Product c Place d Promotion e Price

e

Which of the following statements about geographic pricing policies is true? a Zone pricing reduces the wide variation in delivered prices that results from an F.O.B. shipping point pricing policy. term-5 b .O.B. shipping point pricing simplifies the seller's pricing—but it may narrow the market. c Freight-absorption pricing may increase the size of market territories. d Uniform delivered pricing is more practical when transportation costs are relatively low. e All of these statements abouterm-3t geographic pricing policies are true.

e

Which of the following statements is true of a cumulative quantity discount? a A cumulative quantity discount decreases as the amount purchased increases. b A cumulative quantity discount ties a seller to a buyer after one purchase. c A cumulative quantity discount tends to discourage repeat buying as it increases a customer's cost for additional purchases. d A cumulative quantity discount applies only to individual orders. e A cumulative quantity discount encourages a customer to consolidate buying from a single supplier.

e

Which of the following statements is true of rebates? a Rebates are always redeemed. b Rebates are only used on higher-priced items. c A rebate is a reduction in the price one pays for a product at the time of purchase. d Rebates are small—they don't exceed $500. term-9 e A rebate is a refund paid to a consumer after a purchase.

e