(Combined) Chapter 20 Quiz Questions, MKT 300 Exam
3- Ch. 12, Chapter 19 Marketing Final, MKT321_CH20,
Chap 19 Practice Questions, Foundations of Marketing
Ch. 15, Mktg chapter 15, TAMU MKTG 321 Chapter 15
(Retailing, Direct Marketing, and Wholesaling), All With
Complete Solutions 2024.
Reference pricing is
pricing a product at a moderate level and positioning it next to a more expensive model or brand
What type of pricing strategy is used in a situation where the seller has an ethical responsibility not to
overcharge the client and the fees do not relate directly to the time and/or effort spent in specific
cases?
Professional pricing
A product is a price leader when
it is sold at less than cost in the hope that sales of other products will increase.
The federal government often uses ____ pricing when it grants defense contracts.
cost-plus
If General Motors determines that it wants to sell 200,000 Chevrolet Acadias and sets the price at
$29,500 because it knows that at that price it will reach that goal, the firm would be using a ____
pricing method.
demand-based
Marketers at organizations engaged in nonprice competition
Answer: need competitive price information to make sure that their products are priced at
approximately the same level as the prices of competing brands.
Which of the following is true about the target market's evaluation of price?
Answer: The importance of price depends on the type of product.
All of the following are psychological techniques except
customary pricing
A marketer is most likely to set prices according to a cash-flow objective when a
Answer: quick return on investment is desired
,After selecting a pricing strategy, what is the next step in the establishment of prices?
Answer: Determining a specific price
Which of the following characteristics is unique to pricing more so than other variables of the
marketing mix?
Answers:
a. Flexibility
b. Consistency
c. Challenging
d. Truthfulness
e. Clarity
a
Maintaining or increasing market share
Answers:
a. is directly tied to leading an industry in product quality.
b. depends on the overall growth of the total industry.
c. is a profit-related objective based on price.
d. can be achieved even if industry sales are flat or decreasing.
e. is an infrequently used pricing objective in most industries.
d
Pricing the basic product in a product line low while pricing related items at a higher level is called
Answers:
a. premium pricing.
b. price lining.
c. price skimming.
d. bait pricing.
e. captive pricing.
e
Maria recently put her house on the market at an asking price of $260,000. She realizes, however, that
in order to sell the house, she may have to use
Answers:
a. price lining.
b. negotiated pricing.
c. professional pricing.
d. secondary-market pricing.
e. reference pricing.
b
Under Armour is establishing a ______ pricing objective to maintain or increase its product's sales in
relation to total industry sales.
,Answers:
a. status quo
b. survival
c. return on investment
d. market share
e. product quality
d
Which of the following would be used in setting the price of a new product if considerable competition
is expected?
Answers:
a. Penetration pricing
b. Price skimming
c. Psychological pricing
d. Prestige pricing
e. Odd-even pricing
a
Pricing the basic product in a product line low while pricing related items at a higher level is called
Answers:
a. premium pricing.
b. captive pricing.
c. price lining.
d. price skimming.
e. bait pricing.
, b
product quality
The pricing of Clinique makeup considerably higher than brands such as Cover Girl, Revlon, and
Maybelline is used to communicate ____, which is the company's primary pricing objective.
true
t or f: Noncumulative discounts are one-time reductions in prices based on the number of units
purchased, the dollar value of the order, or the product mix purchased.
selective or exclusive distribution
Premium-priced products are usually marketed through
false
t or f: It is usually easy to obtain an accurate price list for a competitor's products.
price elasticity of demand
Dividing the percentage change in quantity demanded by the percentage change in price gives the
False
t or f: Setting prices for business customers is very similar to setting prices for consumers.
an external reference point
Lucy buys a new dress at T.J. Maxx that has a price tag with "Compare at $150.00. Our Price $89.99." This
is an example of the use of
interpretation
What a price means or what it communicates to customers is called
Jared is developing a business plan for a new type of bicycle helmet. He is interested in finding the
point at which the costs of producing the helmet will equal the revenue earned from selling the
product. Jared is interested in finding the
breakeven point
A price developed in the consumer's mind through experience with the product is called a(n)
internal reference price
When marketers emphasize price as an issue and match or beat the prices of other companies, they
are using
price competition
Isabella is a product manager for The Container Store, a retailer of plastic bins and other storage
containers. Sales have been declining in the past nine months and her management team is pressuring
her to compete based on price discounts. However, Isabella is aware of the dangers associated with
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