MKT300 Ch 20 Questions

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. Evaluating competitors' prices b. Selecting a basis for pricing c. Developing pricing objectives d. Selecting a pricing strategy e. Assessing the target market's evaluation of price

a. Evaluating competitors' prices

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

a. periodic discounting

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

c. 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. cost-based pricing b. cost-plus pricing c. yield management d. markup pricing e. competition-based pricing

c. yield management

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-plus pricing c. Markup pricing d. Competition-based pricing e. Cost-based pricing

d. Competition-based pricing

Which pricing strategy provides the most flexible introductory base price? a. Penetration pricing b. Captive pricing c. Periodic discounting d. Price skimming e. Premium pricing

d. Price skimming

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. Market share b. Cash flow c. Profit d. Product quality e. Status quo

d. Product quality

Which of the following pricing objectives can reduce a firm's risks by helping to stabilize demand for its products? a. Cash flow b. Profit c. Market share d. Status quo e. Product quality

d. Status quo

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. price leaders b. bait pricing c. special-event pricing d. comparison discounting e. reference pricing

d. comparison discounting

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. Price lining c. Reference pricing d. Bait pricing e. Captive pricing

e. Captive pricing

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

e. market share objective

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. 33% b. 25% c. 5% d. 100% e. 50%

b. 25%

Which of the following price bases is mostly likely to be used for commercial construction projects or custom-made equipment? a. Demand-based pricing b. Cost-plus pricing c. Competition-based pricing d. Yield management e. Markup pricing

b. Cost-plus pricing

Which of the following product-line pricing strategies is NOT generally used for business products? a. Bait pricing b. Psychological pricing c. Price lining d. Captive pricing e. Premium pricing

b. Psychological pricing

Which of the following should be accomplished after developing pricing objectives? a. Evaluating competitors' prices b. Selecting a basis for pricing c. Assessing the target market's evaluation of price d. Selecting a pricing strategy e. Determining a specific price

c. Assessing the target market's evaluation of price