Marketing Final Exam

Pricing objectives on market share dollar sales or

Info iconThis 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: is seven years old and wants to open a lemonade stand in her neighborhood. She is having a tough time deciding whether to base her pricing objectives on market share, dollar sales, or unit sales. Regardless of which she chooses, her pricing objective can be categorized as: a. status quo b. profit oriented c. need oriented d. cost oriented e. sales oriented ANS: E Sales-oriented pricing objectives are based on either market share or dollar or unit sales. PTS: 1 REF: 303 Thinking KEY: CB&E Model Pricing OBJ: 19-2 TOP: AACSB Reflective MSC: BLOOMS Application 18. A company using market share pricing has a _____ pricing objective. a. profit-oriented b. sales-oriented c. demand-oriented d. supply-oriented e. status quo ANS: B Sales-oriented pricing objectives are based either on market share or on dollar or unit sales. PTS: 1 REF: 303 Thinking KEY: CB&E Model Pricing OBJ: 19-2 TOP: AACSB Reflective MSC: BLOOMS Knowledge 19. _____ is a company’s product sales as a percentage of total sales for that industry. a. Return on investment b. Profit share c. Revenue share d. Market share e. Contribution ANS: D This is the definition of market share, and sales can be reported in dollars or in units of product. PTS: 1 REF: 303 Thinking KEY: CB&E Model Pricing OBJ: 19-2 TOP: AACSB Reflective MSC: BLOOMS Knowledge 20. At a price of $1,192,057, the Bugatti Veyron may be the most expensive street-legal car on the market today. Obviously, Bugatti is NOT using a(n) _____ pricing objective in setting the price for this car. a. inelastic or supply-oriented b. market share or sales maximization c. profit maximization or target return on investment d. status quo or satisfactory profits e. demand-oriented or supply-oriented ANS: B A lower price allows a company to maximize sales and build market share, but Bugatti's high price is geared towards the other options. PTS: 1 REF: 303-305 Thinking KEY: CB&E Model Pricing OBJ: 19-2 TOP: AACSB Reflective MSC: BLOOMS Application 21. At the end of the summer, Howard Nursery reduced the price on all of its plants, fertilizer, and potting soil by 50 percent in order to liquidate this inventory. What type of pricing strategy is being used in this example? a. Supply oriented b. Sales maximization c. Target return on investment d. Satisfactory profit e. Profit maximization ANS: B Sales maximization ignores profit and competition for the purpose of raising cash. PTS: 1 REF: 305 Thinking KEY: CB&E Model Pricing OBJ: 19-2 TOP: AACSB Reflective MSC: BLOOMS Application 22. Dixie Furniture Company has recently moved to a new, larger location. At this new location, it has been unable to attract sufficient customers. Its owner did not have the cash to pay the current loan installment due on the building and inventory, so he decided to reduce all merchandise prices by at least 50 percent for a weekend sale to earn enough to make his loan payment. His pricing objective can be classified as: a. market share maximization b. satisfac...
View Full Document

This document was uploaded on 09/29/2013.

Ask a homework question - tutors are online