armstrong09_tif - Chapter 9 Pricing Considerations and...

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Chapter 9 Pricing Considerations and Strategies Multiple-Choice 1. _____ is the sum of all the values that consumers exchange for the benefits of having or using the product or service. a. Price b. Value c. Promotion d. Exchange Answer: (a) Difficulty: (3) Page: 293 2. The amount of money charged for a product or service is called _____. a. value b. price c. exchange d. promotion Answer: (b) Difficulty: (1) Page: 293 3. Historically, _____ has been the major factor affecting buyer choice. However, in recent decades, _____ factors have become more important in buyer-choice behavior. a. non-price; price b. price; exchange c. price; value d. price; non-price Answer: (d) Difficulty: (3) Page: 293 4. Charging different prices depending on individual customers and situations is called _____. a. value pricing b. exchange pricing c. dynamic pricing d. psychological pricing Answer: (c) Difficulty: (2) Page: 293 5. Marketing executives face all of the following common mistakes in pricing, except which one? a. Companies are too quick to reduce prices in order to get a sale, rather than convincing buyers that their products are worth a higher price. b. Pricing that is too cost-oriented rather than customer-value oriented. c. Pricing that does not take the marketing mix into account. d. All of the following are common pricing mistakes. Answer: (d) Difficulty: (2) Page: 295 199
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6. All of the following are internal factors affecting pricing decisions, except which one? a. company's marketing objectives b. marketing mix strategy c. competition d. organizational considerations Answer: (c) Difficulty: (2) Page: 296 7. All of the following are examples of company marketing objectives that affect pricing decisions, except which one? a. survival b. profit maximization c. market share leadership d. quality Answer: (d) Difficulty: (2) Page: 296 8. Prices can be reduced temporarily to create excitement for a product or to draw more customers into a retail store. In this example, the store is pursuing a general objective based on an _____ which affects pricing decisions. a. external factor b. internal factor c. environmental factor d. economic factor Answer: (b) Difficulty: (2) Page: 296 9. All of the following are examples of internal factors affecting pricing decisions, except which one? a. A company sets prices low to prevent competition from entering the market. b. A company sets prices at competitors' levels to stabilize the market. c. Prices can be set to keep the loyalty and support of resellers or to avoid government intervention. d. The company needs to understand the relationship between supply and demand for its product. Answer: (d) Difficulty: (2) Page: 296 10. _____ is only one of the marketing mix tools that a company uses to achieve its marketing objectives.
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armstrong09_tif - Chapter 9 Pricing Considerations and...

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