MKT 101 Test 3 Part 3

1.

1 point

Price ceilings

are the lowest acceptable prices firms can set to gain profit goals.

do not take demand into account.

are the minimum amounts consumers will pay for goods or services.

depend on the elasticity of demand.

2.

1 point

Under customary pricing, channel members

alter prices to coincide with fluctuations in costs.

offer discounts to those who buy in quantity.

try to maintain prices as long as possible.

adjust prices to levels of demand.

3.

1 point

When wholesalers and retailers stock well-known brands, place high prices on them, and then sell other brands for lower prices, they engage in

horizontal price fixing.

selling against the brand.

vertical price fixing.

price discrimination.

4.

1 point

Firms that desire high initial profits because they are short of funds or uncertain about their future use

status quo-based goals.

early-recovery-of-cash goals.

return-on-investment goals.

satisfactory-profit goals.

5.

1 point

Which of these is not a major reason for employing multiple-unit pricing?

The firm can clear out slow-moving merchandise.

Greater consumption is encouraged.

Competitors’ customers may be attracted.

Total dollar sales are maintained.

6.

1 point

With what pricing approach does a firm advertise and sell key items in its product assortment at less than their usual profit margins?

Odd pricing

Variable pricing

Leader pricing

Prestige pricing

7.

1 point

Which statement is true?

A firm still has a probability of succeeding even if it does not set pricing goals.

A firm may pursue more than one pricing goal at the same time.

Different firms in the same industry always have the same pricing strategies.

A pricing strategy should focus on short-run goals only.

8.

1 point

Which of the following statements about rebates is not true?

They are flexible.

They help cut down on inventory surpluses.

They reduce communication between consumers and manufacturers.

They are used by a wide variety of firms.

9.

1 point

By attracting consumers interested in status products, a firm can carve out a niche in a

fluid-demand price environment.

market-controlled price environment.

government-controlled price environment.

company-controlled price environment.

10.

1 point

With sales-based objectives, a firm focuses on

expanding its market share relative to competitors

maintaining good channel relations

minimizing the effects of competitor actions

reducing the return on investment

11.

1 point

Firms in the transportation, telecommunications, and financial industries have seen their price environments shift from

market- to government-controlled.

government- to market-controlled.

company-to market controlled.

market- to company-controlled.

12.

1 point

Which of the following is an advantage to firms that first employ skimming pricing and then apply penetration pricing?

High prices are used to ignore competitors.

Lowering initial prices presents a poor image to the market.

Multiple segments can be reached.

Low prices are charged when competition is limited.

13.

1 point

A market-controlled price environment is characterized by

well-differentiated goods and services

not much control over prices by individual firms

prices being strongly influenced by some level of government

little competition

14.

1 point

Price guarantees

prohibit entry into established channels of distribution.

help channel members maintain inventory value and profit.

usually grant discounts to purchasers who are not competitors.

encourage passing price increases along to consumers.

15.

1 point

Price floors are frequently set in

cost-based strategies.

competition-based strategies.

demand-based strategies.

status quo-based strategies.

16.

1 point

Purchase terms include discounts, the timing of payments, and

delivery.

warranty coverage.

credit arrangements.

installation.

17.

1 point

Which of the following statements about price advertising is true?

A firm cannot claim its price is lower than competitors or the manufacturer’s list price, even if it verifies that the price of an item at other companies in the same trading area is higher.

A firm cannot continuously advertise the same item as being on sale.

A suggested list price can be advertised as a reference point for a sale, even though the product was never sold at that price.

A firm can claim that a price has been reduced from an original price that was never before offered to the public.

18.

1 point

A one-price policy

eliminates bargaining.

does not permit self-service and catalog sales.

is difficult to administer.

erodes customer confidence.

19.

1 point

Which of these is not a method of geographic pricing?

Chain-markup pricing

Base-point pricing

Uniform delivered pricing

Zone pricing

20.

1 point

In catalogs, to tie prices to rising costs, it is simplest to

publish escalator clauses.

add on surcharges.

reduce markups.

change list prices.

21.

1 point

The first step in outlining a broad price policy is

integrating individual decisions.

determining a pricing strategy.

examining brand image.

analyzing the marketing mix.