Marketing Final Exam

But will not maximize or improve any of the other

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: tory profits c. asset maximization d. sales maximization e. target ROI ANS: D The strategy described will maximize sales dollars but will not maximize or improve any of the other objectives in the long term. PTS: 1 REF: 305 Thinking KEY: CB&E Model Pricing OBJ: 19-2 TOP: AACSB Reflective MSC: BLOOMS Application 23. As a short-term pricing objective, _____ can be effectively used on a temporary basis to sell off excessive inventory. a. profit maximization b. profit-oriented pricing c. status quo pricing d. sales maximization e. market share pricing ANS: D Sales maximization pricing is a short-term price reduction to increase sales. PTS: 1 REF: 305 Thinking KEY: CB&E Model Pricing OBJ: 19-2 TOP: AACSB Reflective MSC: BLOOMS Comprehension 24. If a company’s pricing objective is to meet the competition or to maintain existing prices, it is using _____ pricing. a. head-on b. target return on investment c. status quo d. market share e. demand-oriented ANS: C This defines status quo pricing. PTS: 1 REF: 305 Thinking KEY: CB&E Model Pricing OBJ: 19-2 TOP: AACSB Reflective MSC: BLOOMS Knowledge 25. When Delta Airlines raises or lowers its prices on its Atlanta to Chicago route, other airlines tend to make the same changes in their pricing. This is an example of _____ pricing. a. b. c. d. e. status quo target return market share predatory cost-plus ANS: A Status quo pricing is best described as meeting the competition. PTS: 1 REF: 305 Thinking KEY: CB&E Model Pricing OBJ: 19-2 TOP: AACSB Reflective MSC: BLOOMS Application 26. Which of the following statements describes an advantage of status quo pricing? a. Status quo pricing is derived from actual costs of manufacturing. b. Status quo pricing maintains the organization’s differential advantage. c. Status quo pricing is active, not reactive. d. Status quo pricing causes price wars. e. Status quo pricing requires little planning. ANS: E Status quo pricing requires little planning because it involves just copying the competitions’ pricing policies. PTS: 1 REF: 305 Thinking KEY: CB&E Model Pricing OBJ: 19-2 TOP: AACSB Reflective MSC: BLOOMS Analysis 27. Although many factors can influence price, the primary determinants are: a. costs of manufacturing and distribution b. the demand for the good and the cost to the seller c. demand by the consumer and perceived quality d. distribution and promotion strategies e. stage of the product life cycle and costs to the consumer ANS: B The price managers set for each product depends mostly on two factors: the demand for the good or service and the cost to the seller for that good or service. PTS: 1 REF: 305 Thinking KEY: CB&E Model Pricing OBJ: 19-3 TOP: AACSB Reflective MSC: BLOOMS Comprehension 28. The quantity of a product that will be sold in the market at various prices for a specified period is called: a. b. c. d. e. market share demand supply value revenue ANS: B This is the definition of demand. PTS: 1 REF: 305 Thinking KEY: CB&E Mo...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern