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Unformatted text preview: MKT301 Kerin book Testbank Pricing, Channels, SCM, Marcom CHAPTER 13 BUILDING THE PRICE FOUNDATION MULTIPLE CHOICE QUESTIONS 13-1 CHAPTER OPENING EXAMPLE CONCEPTUAL What do Expedia, Travelocity, and Priceline have in common? a. They are three websites that use the same Internet service provider (ISP). b. They are companies that use reverse auctions to sell their merchandise. c. They are three online websites that only sell to businesses. d. They are all franchise operations that operate in the business-to-business market only. e. They are the three leading online travel websites. Answer: e Page: 335 Rationale: These three websites book airline tickets, hotel rooms, and special travel packages for travelers. 13-2 CHAPTER OPENING EXAMPLE CONCEPTUAL Online travel websites have not experienced the same problems as other dot-com companies because these websites: a. rarely attempt to establish any type of long-term relationships with customers. b. focus on market share. c. use tactical objectives instead of strategic objectives. d. allow customers to save money and time. e. create form utility for customers. Answer: d Page: 335 Rationale: Like any company, online travel sites must establish marketing relationships with customers. The online sites can create time and place utility, but not form. 13-3 CHAPTER OPENING EXAMPLE CONCEPTUAL Which of the following is true about price? a. Customers dont have to pay the price because there are always people who will but the item. b. Small changes in price can have big effects on the number of units sold but not company profit. c. Small changes in price can have big effects on company profit but not on the number of units sold. d. Small changes in price can have big effects on the number of units sold and also on company profit. e. All of the above are true. Answer: d Page: 335 Rationale: Price is the place where all other business decisions come together. The price must be right in the sense that customers must be willing to pay it and it must generate enough sales dollars to pay for the cost of developing, producing, and marketing the product and earn a profit for the company. Small changes in price can have big effects on both the number of units sold and company profit. 13-4 PRICE CONCEPTUAL Attorneys fees, entrance fees, train fares, and organization dues are all: a. premiums. b. bartering tools. c. mediums of exchange. d. synonyms for price. e. examples of liquidity. Answer: d Page: 336 Other Locations: web Learning Objective: 1 Rationale: Tuition, rent, interest, premium, fee, dues, fares, salary, commission and wage are all synonyms for price. 13-5 PRICE CONCEPTUAL Which of the following is a particular type of price?...
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