Marketing Final Exam

Level except a require resellers to maintain prices

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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: a. require resellers to maintain prices in line with competitors’ prices b. developing brand loyalty in consumers by delivering quality and value c. avoiding doing business with price-cutting discounters d. franchising e. using an exclusive distribution system ANS: A Manufacturers can also package merchandise with the selling price marked on it or place goods on consignment. PTS: 1 REF: 314 Thinking KEY: CB&E Model Pricing 96. Shopping bots: a. b. c. d. 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. PTS: 1 REF: 314 Thinking 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? a. The Internet has shifted all shopping power to b. c. d. e. consumers. 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. PTS: 1 REF: 315 Thinking 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): a. distribution tool b. price enhancer c. product strategy d. direct sales tool e. promotion strategy ANS: E Price is often used as a promotional tool to increase consumer interest. PTS: 1 REF: 315 Thinking 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 price: a. is a signal of quality b. is an indication that consumers are being ripped off c. will always lead to major price discounts to wholesalers and retailers that distribute it d. is a sign of the company’s overall market share e. indicates that the brand was slipping into the decline stage of the product life cycle but has had a sudden resurgence of growth ANS: A Numerous studies have shown that consumers equate high price with good quality. PTS: 1 REF: 316 Thinking 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.

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