MKT230 CH20 Quiz

The manager at Target puts a sign up next to a Samsung audio system that reads, "Only $299.99! $60 less than at Best Buy." This is an example of what type of pricing strategy? a. Random discounting b. Periodic discounting c. Everyday low prices d. Penetration pricing e. Comparison discounting

Comparison discounting

For custom-made equipment or commercial construction projects, which pricing method is most likely used? Select one: a. Premium b. Return-on-investment c. Prestige d. Cost-plus e. Differential

Cost-plus

Under Armour is establishing a ___________ pricing objective to maintain or increase its product's sales in relation to total industry sales. a. Return on investment b. Market share c. Status quo d. Product quality e. survival

Market share

What type of pricing objective would an organization use if it were in a favorable position and desired nothing more? a. Profit b. Status quo c. Cash flow d. Return on investment e. Survival

Status quo

Odd-even pricing is Select one: a. a form of unethical pricing. b. a cost-based strategy. c. a psychological pricing strategy. d. a rarely used technique. e. competition-based.

a psychological pricing strategy.

Some grocery stores collect data on competitive prices Select one: a. from their resellers. b. through stores' purchase data. c. by using full-time comparison shoppers. d. by calling their competitors. e. on a quarterly basis.

by using full-time comparison shoppers.

Pricing the basic product in a product line low while pricing related items at a higher level is called a. price lining. b. price skimming. c. captive pricing. d. premium pricing. e. bait pricing.

captive pricing.

If local Shell gasoline stations look at BP stations' prices as the primary method of determining its own prices, Shell is using __________ a. price fixing; which considers costs to be less important than competitor's prices. b. price fixing; which considers competition to be less important than costs. c. competition-based pricing, which considers profit to be the ultimate pricing goal. d. market share pricing; which considers costs to be less important than competitor's prices. e. competition-based pricing, which considers costs to be less important than competitor's prices.

competition-based pricing, which considers costs to be less important than competitor's prices.

The three primary bases for developing prices are Select one: a. markup, cost, and cost-plus. b. supply, demand, and marketing objectives. c. profit, demand, and competition. d. negotiation, periodicity, and randomness. e. demand, competition, and cost.

demand, competition, and cost.

If a product is priced based on how many or how few people want it at a particular time and place, __________ pricing is being used. a. differential b. markup c. competitive d. demand-based e. peak

demand-based

When establishing prices, a marketer's first step is to Select one: a. select a pricing policy. b. develop pricing objectives. c. evaluate competitors' prices. d. determine a pricing method. e. determine demand.

develop pricing objectives.

The fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ___________ pricing. Select one: a. differential b. price-line c. psychological d. professional e. promotional

differential

A product is a price leader when a. it is sold at the highest price. b. its price maximizes profits. c. an increase or decrease in price leads to increased revenue or lower costs. d. its price leads the industry in sales. e. it is sold at less than cost in the hope that sales of other products will increase.

it is sold at less than cost in the hope that sales of other products will increase.

Wet Seal, a retailer of swimwear, employs a commonly used cost-based pricing method called Select one: a. cost-plus pricing. b. value pricing. c. markup pricing. d. differential pricing. e. cost discounting.

markup pricing.

If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should use Select one: a. everyday low prices. b. random discounting. c. captive pricing. d. penetration pricing. e. price skimming.

penetration pricing.

The newest version of a product like Bose headphones is likely to use __________ , while the new version of Red Bull is likely to use ___________ . a. price skimming; promotional pricing. b. price skimming; psychological pricing. c. psychological pricing; penetration pricing. d. penetration pricing; price skimming. e. price skimming; penetration pricing.

price skimming; penetration pricing.

The pricing of Clinique makeup considerably higher than brands such as Cover Girl, Revlon, and Maybelline is used to communicate ___________ , which is the company's primary pricing objective. Select one: a. market share b. status quo c. product quality d. profitability e. cash flow

product quality

Services that are performed by lawyers, dentists, or doctors are typically priced using _________ ; sometimes these prices are not based on the amount of time that is spent in each situation, but are based on a flat fee regardless of the difficulty involved. a. professional pricing b. price lining c. traditional pricing d. everyday low prices e. customary pricing

professional pricing

If a business decides to reduce its prices once in a while on an unsystematic basis, it is using Select one: a. periodic discounting. b. bait pricing. c. penetration pricing. d. price reduction planning. e. random discounting.

random discounting.

Markup is measured either as a percentage of _________ or a percentage of ________ . a. resources used; cost b. selling price; cost c. demand; competition d. revenue; contribution margin e. cost; profit

selling price; cost