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Quiz 5 - 1(Points 1 Which of the following statements about...

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Unformatted text preview: 1. (Points: 1) Which of the following statements about price is true? 1. Price can relate to anything with perceived value, not just money. 2. Price is that which is given up in an exchange to acquire a product. 3. All of the above statements about price are true. 4. Customers are interested in obtaining a perceived reasonable price. 5. The price paid is based on the satisfaction consumers expect to receive from a product. Save Answer 2. (Points: 1) An organization is using _____ when it sets its prices so that total revenue is as large as possible relative to total costs. 1. sales maximization 2. demand-oriented pricing 3. profit maximization 4. market share pricing 5. status quo pricing Save Answer 3. (Points: 1) Trident makes luxury bicycles. Its target market has been people who willingly pay $1,000 or more for their bicycles, and it acknowledges its prices are high. Trident has lowered prices to target customers who want a good bike but who cant or wont spend a thousand dollars for one. Trident is most likely using a(n) _____ pricing objective. 1. inelastic or supply-oriented 2. market share or sales maximization 3. status quo or satisfactory profits 4. profit maximization or target return on investment 5. demand-oriented or supply-oriented Save Answer 4. (Points: 1) _____ is defined as the quantity of a product that will be sold at various prices for a specified period. 1. Value 2. Revenue 3. Supply 4. Demand 5. Market share Save Answer 5. (Points: 1) When Richard opened The Kite Hut, he charged $7 for kites and could not keep up with the demand. The Kite Hut has raised the price to $10, and now Richard is still selling all the kites he carries, but he is not forced to reorder on a daily basis. The $10 price is probably a(n): 1. supply schedule 2. inventory equalizer 3. inelastic price 4. price equilibrium 5. symmetrical price Save Answer 6. (Points: 1) Hostlight Industries operate a chain of moderately-priced motels across the United States. There are many businesses that compete with them for tourist dollars, and some nights during the tourist season their motels are only half full. Other nights, they have to turn away guests because there are no vacancies. Assuming the quality of the room and the services provided by the motels remain the same, Hostlight Industries could use _____ to fill unused rooms. 1. a yield management system 2. a capacity correlation system 3. a service management system 4. capacity maintenance tools 5. service forecasting tools Save Answer 7. (Points: 1) During sporting events at the local high school, Megan runs a concession stand. The costs associated with the purchase of hot dogs, mustard, relish, ketchup, chips, sodas, paper napkins, and cups are all examples of _____ costs. 1. promotional 2. variable 3. liquidity 4. fixed 5. marginal Save Answer 8. (Points: 1) The most popular method used by wholesalers and retailers in establishing a sales price is _____ pricing. 1. formula 2. status quo 3. break-even 4. marginal revenue 5. markup Save Answer 9. (Points: 1) A distributor of bakery suppliers sells 5-pound bags of moist apricots and cranberries, sweet dates, bits of pineapple, and candied cherries for $24.95 to be used in fruitcakes. Since the amount of cranberries purchased depends on how many bags of fruit are demanded, the cost of the cranberries is a: 1. fixed cost 2. variable cost 3. marginal contributor 4. variable revenue 5. joint cost Save Answer 10. (Points: 1) Chulo Ibsen makes and sells hand-forged wrought iron fireplace screens for $125 each. He has determined that his fixed costs are $8,000, and his variable costs per firescreen are $45. What is his fixed cost contribution per screen? 1. $125 2. $170 3. $45 4. $80 5. $88.89 Save Answer 11. (Points: 1) Entertainment Central makes video game consoles, which it sells for $500.00. It estimates its variable costs to be $200.00 per console. It figures its fixed costs to be $600,000 per year. How many consoles does it have to sell to break-even? 1. 6,000 consoles 2. 2,500 consoles 3. 1,200 consoles 4. 2,000 consoles 5. 3,000 consoles Save Answer 12. (Points: 1) When Laser Technology developed and introduced a high-tech crash investigation system to be used by law enforcement officers, the company determined that demand for the product was inelastic, and there was no existing competition. The pricing strategy for the system should be: 1. high initial price, falling slightly when entering the growth stage 2. high price, continuing through growth and maturity 3. low prices initially, rising constantly through growth and into maturity 4. low initial price, rising slightly when entering the growth stage 5. low price, continuing through growth and maturity Save Answer 13. (Points: 1) Safeway supermarkets will place well-known brands on the shelves at high prices while offering its own Safeway brand at lower prices. This practice is an example of: 1. price pressurization 2. private-label cannibalization 3. brand cutting 4. selling against the brand 5. illegal pricing Save Answer 14. (Points: 1) Which of the following statements about the impact of the Internet on pricing strategy is true? 1. Extranets are online price-comparison engines. 2. The promise of pricing efficiency on the Internet has been realized. 3. One area where the Internet is having a major impact on pricing is the bargaining power between buyers and sellers. 4. Setting prices on the Internet offers retailers few advantages. 5. Internet marketers have found it relatively easy to charge exactly what the market will bear. Save Answer 15. (Points: 1) Many consumers, especially when faced with an uncertain purchase decision, think that a high price: 1. will always lead to major price discounts to wholesalers and retailers that distribute it 2. is an indication that consumers are being ripped off 3. is a sign of the company's overall market share 4. is because the brand was slipping into the decline stage of the product life cycle but has had a sudden resurgence of growth 5. is a signal of quality Save Answer 16. (Points: 1) The introductory price for the Nintendo Gamecube video game console was $100 lower than the list price of Xbox and Playstation 2, its only two competitors. Given this information, you can assume Nintendo used a _____ policy for its Gamecube. 1. cost bundling 2. penetration pricing 3. flexible pricing 4. absorption pricing 5. competitive skimming Save Answer 17. (Points: 1) A firm charging a price identical to or very close to the competition's price is using a _____ strategy. 1. preemptive pricing 2. status quo pricing 3. penetration pricing 4. leader pricing 5. differentiation pricing Save Answer 18. (Points: 1) DeBeers and General Electric were accused of price fixing of industrial-grade diamonds. This means the companies: 1. tried to sell diamonds at below costs 2. created an artificial demand for the diamonds 3. charged customers different amounts for the same number of diamonds 4. used uniform geographic pricing 5. colluded on the price they would charge customers for the diamonds Save Answer 19. (Points: 1) The Association of Specialty Surgical Practice has published a minimum fee schedule for services and distributed this schedule throughout the medical profession. Specialty Surgical is encouraging: 1. service autonomy pricing 2. unfair trade practices 3. predatory pricing 4. price fixing 5. bait pricing Save Answer 20. (Points: 1) In Canada, under federal legislation, it is unlawful for a firm to price below their costs with the intent of driving the competition out of business. This practice is known as _____. 1. Price fixing 2. Deceptive pricing 3. Predatory pricing 4. Resale price maintenance 5. Price discrimination Save Answer 21. (Points: 1) Quantity discounts are most often used to: 1. shift the storage function backward to the supplier 2. reward a channel intermediary for performing some service 3. increase the sales potential of slow-moving items 4. reward the buyer who pays in cash 5. increase supply for a specific raw material Save Answer 22. (Points: 1) When a channel intermediary is compensated for the ordinary services and tasks performed within the channel of distribution, the compensation, usually in the form of a discount from base price, is called a: 1. seasonal discount 2. cumulative or noncumulative quantity discount 3. rebate or refund 4. functional (or trade) discount 5. promotional allowance Save Answer 23. (Points: 1) A June sale on Marshmallow Peeps, an Easter staple for many people, is an example of which of the following pricing tactics? 1. quantity discount 2. temporal discount 3. seasonal discount 4. promotional allowance 5. functional discount Save Answer 24. (Points: 1) When Janeka purchased a pair of walkie-talkies so she could stay in contact with her ten-year-old son when he was playing in the neighbourhood, she noticed that if she mailed the manufacturer a proof-of-purchase and the cash register receipt showing where and when she had purchased the two-way radio system and how much she had paid, she would receive a check for $25. This $25 is an example of a: 1. cash discount 2. functional discount 3. reciprocal allowance 4. trade promotion 5. rebate Save Answer 25. (Points: 1) Shipping fresh-cut flowers to international buyers can be risky because of price changes during the time required for shipment, expense incurred over long distances, and quality of product delivered. To minimize costs, a seller would likely employ: 1. freight absorption pricing 2. uniform delivered pricing 3. basing-point pricing 4. zone pricing 5. FOB origin pricing Save Answer 26. (Points: 1) A Toronto-based catalog retailer features cast-iron skillets. Its customers in New Brunswick are charged one shipping rate, and customers In B.C. are charged a different rate. Customers in Quebec are charged yet another rate. What kind of geographical pricing is the catalog using? 1. uniform delivered pricing 2. FOB origin pricing 3. FOB factory 4. zone pricing 5. freight absorption pricing Save Answer 27. (Points: 1) A manufacturer of lighting fixtures has six warehouses and has a pricing policy of charging freight from the closest warehouse to the customer, regardless of where parts are shipped. For instance, if the customer is in Vancouver, British Columbia, the closest warehouse to the customer is in Seattle, Washington. If the ordered car part actually comes from the Toronto warehouse, the customer still pays freight from Seattle. The manufacturer uses _____ pricing. 1. zone 2. freight absorption 3. uniform delivered 4. FOB origin 5. basing-point Save Answer 28. (Points: 1) Business-to-business salespeople often use _____ to heighten the demand for certain items in a product line. It is a discounting practice that is often done routinely without much forethought. 1. decremental pricing 2. price lining 3. devaluation 4. consumer discounts 5. price shading Save Answer 29. (Points: 1) Which of the following pricing methods can be used to build market share during a recession? 1. variable pricing 2. psychological pricing 3. resale price maintenance 4. price lining 5. bundling Save Answer 30. (Points: 1) During the recent worldwide recession when wine usage was declining, Nickel & Nickel launched a new brand of wine, which they sold at $125 a bottle. The wine is allowed to age three times as long as lower priced wines, and the grapes used in the wines production are hand-picked. Wine lovers appreciate how both production techniques improve wine quality. Nickel & Nickel used _____ to build market share. 1. leader pricing 2. unbundling 3. price lining 4. status quo pricing 5. value-based pricing Save Answer ...
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