Marketing Final Exam

Blooms knowledge 8 at wal mart randi saw a bag of

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Unformatted text preview: asset ANS: C Profit is revenue minus expenses. PTS: 1 REF: 302 Thinking KEY: CB&E Model Pricing OBJ: 19-1 TOP: AACSB Reflective MSC: BLOOMS Knowledge 8. At Wal-Mart, Randi saw a bag of daffodil flower bulbs and a box of plant fertilizer. The items, which were sold together, retailed at $28.50 but were marked down to $19.99. The retailer sold one at the $28.50 price and five at the $19.99 price. The retailer’s revenue is: a. $8.51 b. $19.99 c. $28.50 d. $128.45 e. $171.00 ANS: D $28.50 + ($19.99 x 5) = $128.45. PTS: 1 REF: 302 KEY: CB&E Model Pricing OBJ: 19-1 TOP: AACSB Analytic MSC: BLOOMS Analysis 9. Why are marketing managers finding it more difficult to set prices in today’s environment? a. Inflationary and recessionary periods have made customers less price sensitive. b. Fewer dealer and generic brands are available because the competition has been eliminated. c. The high rate of new-product introductions has led to careful re-evaluation by consumers. d. Marketing managers are finding it difficult to compare prices between suppliers. e. Buyers are less informed and are less price sensitive. ANS: C With constant new-product introductions, consumers have many alternative goods to choose from, and selecting the right price becomes a very complicated task for the marketing manager. PTS: 1 REF: 302 Thinking KEY: CB&E Model Pricing OBJ: 19-1 TOP: AACSB Reflective MSC: BLOOMS Comprehension 10. For convenience, pricing objectives can be divided into three categories. They are: a. refundable, competitive, and attainable b. perceived, actual, and unique-situational c. differentiated, niche, and undifferentiated d. profit oriented, sales oriented, and status quo e. monopolistic, fixed, and variable ANS: D Profit-oriented objectives include profit maximization, satisfactory profits, and target return on investment. Sales-oriented pricing objectives are based either on market share or on dollar or unit sales. Status quo pricing seeks to maintain existing prices or to meet the competition’s prices. PTS: 1 REF: 302 Thinking KEY: CB&E Model Pricing OBJ: 19-2 TOP: AACSB Reflective MSC: BLOOMS Comprehension 11. An organization is using _____ when it sets its prices so that total revenue is as large as possible relative to total costs. a. profit maximization b. market share pricing c. demand-oriented pricing d. sales maximization e. status quo pricing ANS: A Profit maximization is a type of profit-oriented pricing objective and means setting prices so that total revenue is as large as possible relative to total costs. PTS: 1 REF: 302 Thinking KEY: CB&E Model Pricing OBJ: 19-2 TOP: AACSB Reflective MSC: BLOOMS Knowledge 12. When Apple, Inc. originally introduced its iPhone, it was priced at what many believed to be about as high as the market would allow. Within weeks, Apple lowered the price of the iPhone. It appears that Apple entered the market with a _____ approach to pricing the iPhone. a. market share pricing b. profit maximization...
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