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Marketing Final Exam

Pricing obj 20 5 top aacsb reflective msc blooms

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Unformatted text preview: P: AACSB Reflective MSC: BLOOMS Comprehension 111. During a recent recession, many manufacturers determined that their suppliers were an excellent source of cost savings. Specific cost reduction strategies manufacturers have used with their suppliers include: a. offering help in boosting productivity of suppliers b. renegotiating contracts c. setting annual across-the-board cost reduction targets for suppliers d. improving economies of scale by cutting number of suppliers e. all of the choices ANS: E Tough tactics like these help keep companies afloat during economic downturns. PTS: 1 REF: 334 Thinking KEY: CB&E Model Pricing OBJ: 20-5 TOP: AACSB Reflective MSC: BLOOMS Comprehension Art Supplies It’s September and Sophia wants to buy some arts and crafts supplies for an after-school program she is developing for her daughter’s elementary school. In her Sunday newspaper was a flyer from Michaels, an arts and crafts retailer. As she looked through the newspaper insert, she noticed that if she purchased three or more bottles of Alene’s Tacky Glue, the regular price of $1.50 each was reduced to $1.15 each. She also saw that the store priced its plastic storage boxes at $1.99, $3.99, and $5.99. She thought they would be useful for storing each child’s projects. On the front page of the flyer was an ad for Funky Girls Gel Pens, something she knew her daughter would love to use. The price at Michael’s was $6.99 lower than the price she had found at the other stores that carried the pens. She thought that some of the older girls might like to start a scrapbook and was pleased to find that Michaels had a scrapbook starter kit, which includes scissors, book, pages, and stickers for only $15. The items could be purchased separately for $19.99. The flyer also announced that all flag-related items leftover from its Fourth of July sale were reduced by 40 percent. 112. Refer to Art Supplies. Which type of discount is being used to price the tacky glue? a. Noncumulative quantity discount b. Promotional allowance c. Seasonal discount d. Cash discount e. Cumulative quantity discount ANS: A A noncumulative quantity discount is a reduction from list price that applies to a single order rather than to the total volume placed during a specific period. PTS: 1 REF: 325 Thinking KEY: CB&E Model Pricing OBJ: 20-3 TOP: AACSB Reflective MSC: BLOOMS Application 113. Refer to Art Supplies. Which of the following merchandise is offered in the flyer with a seasonal discount? a. Tacky glue b. Plastic storage boxes c. Flag-related items d. Funky Girls Gel Pens e. Scrapbook starter kit ANS: C Seasonal discounts are pricing reductions 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 114. Refer to Art Supplies. What pricing practice was used to price the plastic storage boxes? a. Seasonal pricing b. Price shading c. Price lining d. Inelastic pricing e. Cumulative pricing ANS: C Price lining...
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