Unformatted text preview: do all of the following to regain some control over the price their products are
sold for at the retail level EXCEPT:
require resellers to maintain prices in line with
developing brand loyalty in consumers by
delivering quality and value
avoiding doing business with price-cutting
using an exclusive distribution system
Manufacturers can also package merchandise with the selling price marked on it or place goods
KEY: CB&E Model Pricing
96. Shopping bots:
e. OBJ: 19-6 TOP: AACSB Reflective MSC: BLOOMS Analysis
encourage a more creative use of advertising
link manufacturers, suppliers, and customers
create opportunities for prestige pricing
provide a means for comparison shopping
create inelastic demand ANS: D
Bot is short for robot, and shopping bots theoretically give pricing power to the consumer.
KEY: CB&E Model Pricing OBJ: 19-6 TOP: AACSB Reflective MSC: BLOOMS Comprehension 97. Which of the following statements about the Internet is true?
The Internet has shifted all shopping power to b.
Consumer reviews tend to be equal in quality.
Business-to-business auctions on the Internet
are likely to be more important than consumer
auctions in the future.
Fraud is not a problem on the Internet.
Extranets are programs that search the Internet
for the best price for a particular product. ANS: C
The Internet has shifted some, but not all, shopping power to consumers. Consumer reviews vary
in quality. Fraud is a huge problem.
KEY: CB&E Model Pricing OBJ: 19-6 TOP: AACSB Reflective MSC: BLOOMS Analysis 98. During the hot summer months, or the week before a new class starts if there is still space
available, the Nick Price golf school in Orlando, Florida, offers a 25 percent reduction to get
golfers during the off-season or those making a last-minute decision. This is an example of
pricing strategy used as a(n):
direct sales tool
Price is often used as a promotional tool to increase consumer interest.
KEY: CB&E Model Pricing OBJ: 19-6 TOP: AACSB Reflective MSC: BLOOMS Application 99. Many consumers, especially when faced with an uncertain purchase decision, think that a high
is a signal of quality
is an indication that consumers are being
will always lead to major price discounts to
wholesalers and retailers that distribute it
is a sign of the company’s overall market
indicates that the brand was slipping into the
decline stage of the product life cycle but has
had a sudden resurgence of growth
Numerous studies have shown that consumers equate high price with good quality. PTS: 1
KEY: CB&E Model Pricing OBJ: 19-6 TOP: AACSB Reflective MSC: BLOOMS Comprehension 100. David...
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This document was uploaded on 09/29/2013.
- Fall '13