Marketing Final Exam

Aacsb reflective msc blooms knowledge 33 which type

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Unformatted text preview: ;E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Knowledge 33. Which type of discount is a price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a bill? a. Quantity discount b. Cash discount c. Rebate d. Functional discount e. Promotional allowance ANS: B This is the definition of a cash discount. PTS: 1 REF: 325 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Knowledge 34. When the salesperson from Affiliated Food, Inc., a grocery distributor, calls on a grocery store, she is authorized to offer a 15 percent discount from the list price in recognition of activities (such as unpacking items and stocking shelves) that retailers perform for the distributor. This 15 percent discount is a: a. quantity discount b. promotional allowance c. functional discount d. seasonal discount e. channel allowance ANS: C A functional, or trade, discount is a discount to wholesalers and retailers for performing channel functions. PTS: 1 REF: 325 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Application 35. Home Depot’s fall lawn mower sale is an example of which of the following pricing tactics? a. Quantity discount b. Seasonal discount c. Temporal discount d. Promotional allowance e. Functional discount ANS: B A seasonal discount is a price reduction for buying merchandise out of season. PTS: 1 REF: 325 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Application 36. A(n) _____ discount is a deduction from list prices that applies to the buyer’s total purchases made during a specific period and is intended to encourage customer loyalty. a. cumulative quantity b. noncumulative quantitative c. functional d. cash e. integrated ANS: A This is the definition of a cumulative quantity discount. PTS: 1 REF: 325 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Knowledge 37. Which type of quantity discount is a deduction from the list price that applies to a single order? a. Base discount b. Cumulative discount c. Noncumulative discount d. Cash discount e. Functional discount ANS: C A noncumulative discount applies to one order and is intended to encourage orders in large quantities. PTS: 1 REF: 325 Thinking KEY: CB&E Model Pricing 38. Quantity discounts are most often used to: a. b. c. d. e. OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Knowledge reward the buyer who pays in cash encourage large orders increase supply for a specific raw material reward a channel intermediary for performing some service shift the storage function backward to the supplier ANS: B Quantity discounts encourage wholesalers or retailers to buy in larger amounts. PTS: 1 REF: 325 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Comprehension 39. An Internet picture frame manufacturer offers retailers reduced prices on any combination of size or style frames...
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This document was uploaded on 09/29/2013.

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