Question 1

A leader merchandise is a product offered by retailers to customers at less than cost to attract them to stores.

Accepted Answer

A) True 
 B)False

Question 2

Under which of the following conditions is a product most likely to have an elastic demand?

Accepted Answer

A)  Consumers can easily find close substitutes for the product. 
B)  The marginal cost of producing the product is equal to its marginal revenue. 
C)  A large portion of a person's budget is spent on the product. 
D)  The fixed costs associated with producing the product are higher than the variable costs associated with it. 
A)  Consumers can easily find close substitutes for the product. 
B)  The marginal cost of producing the product is equal to its marginal revenue. 
C)  A large portion of a person's budget is spent on the product. 
D)  The fixed costs associated with producing the product are higher than the variable costs associated with it.

Question 3

Skimming pricing strategies are also known as "market-plus pricing."

Accepted Answer

A) True 
 B)False

Question 4

Many people in rural areas of West Virginia use heating oil to heat their homes during the winter months. Shield Heating Oil sells and delivers this kind of heating oil to customers across a 200-mile range, which includes some mountainous terrain. Which of the following statements is true about Shield's pricing tactics?

Accepted Answer

A)  It is legal for Shield to levy a special long-distance tax on its customers who live the farthest from the company's main storage facility. 
B)  It is legal for Shield to charge slightly more to its customers who live in remote areas where it is difficult to deliver the heating oil. 
C)  It is legal for Shield to charge slightly more to its customers who can afford to pay more. 
D)  It is legal for Shield to charge slightly more to its customers who buy a higher volume of heating oil. 
A)  It is legal for Shield to levy a special long-distance tax on its customers who live the farthest from the company's main storage facility. 
B)  It is legal for Shield to charge slightly more to its customers who live in remote areas where it is difficult to deliver the heating oil. 
C)  It is legal for Shield to charge slightly more to its customers who can afford to pay more. 
D)  It is legal for Shield to charge slightly more to its customers who buy a higher volume of heating oil.

Question 5

A demand is said to be inelastic when the:

Accepted Answer

A)  demand curve and the supply curve do not intersect. 
B)  total cost and total revenue are equal at all levels of demand. 
C)  elasticity of demand is less than 1. 
D)  elasticity of demand is greater than 1. 
A)  demand curve and the supply curve do not intersect. 
B)  total cost and total revenue are equal at all levels of demand. 
C)  elasticity of demand is less than 1. 
D)  elasticity of demand is greater than 1.

Question 6

Jamal needed a new cell phone but didn't have a lot of money. He went to TechBargains.com and typed "cheap cell phones" into the search bar. As he was scrolling through his options, he noticed very few brands under $50 and far more brands selling for $100 or more. Which of the following statements best describes what Jamal has observed?

Accepted Answer

A)  Generally speaking, the higher the price point, the greater the demand. 
B)  Generally speaking, the higher the price point, the more supply is available. 
C)  In general, as price goes down, demand goes up. 
D)  In general, as price goes down, supply goes up. 
A)  Generally speaking, the higher the price point, the greater the demand. 
B)  Generally speaking, the higher the price point, the more supply is available. 
C)  In general, as price goes down, demand goes up. 
D)  In general, as price goes down, supply goes up.

Question 7

Product line pricing is the practice of marketing merchandise at variable prices negotiated between buyer and seller.

Accepted Answer

A) True 
 B)False

Question 8

As a Procter & Gamble sales representative, you sell Pampers diapers, among many other brands, to grocery store chains of all sizes. One of the smaller chains located in three states, which earns close to $200 million annually, would like a discount. Under the Robinson-Patman Act, what kind of discount could you offer this customer?

Accepted Answer

A)  No discount; the price of Pampers must remain exactly the same for all customers. 
B)  You can offer up to a 10% discount to smaller retailers, but not larger retailers. 
C)  You can offer up to a 10% discount to larger retailers, but not smaller retailers. 
D)  You can offer a discount to this and any other retailer based strictly on the volume of their orders. 
A)  No discount; the price of Pampers must remain exactly the same for all customers. 
B)  You can offer up to a 10% discount to smaller retailers, but not larger retailers. 
C)  You can offer up to a 10% discount to larger retailers, but not smaller retailers. 
D)  You can offer a discount to this and any other retailer based strictly on the volume of their orders.

Question 9

Which of the following is an example of a qualitative forecasting technique?

Accepted Answer

A)  A pharmaceutical company asks its sales force to predict the sales of a particular drug over the next six months 
B)  McDonald's offers a new pulled pork sandwich in Cincinnati for the next three months 
C)  A notebook manufacturer predicts the sales of notebooks this school season based on sales from the last five years 
D)  A handbag retailer compares response rates to two variations of the same Instagram ad 
A)  A pharmaceutical company asks its sales force to predict the sales of a particular drug over the next six months 
B)  McDonald's offers a new pulled pork sandwich in Cincinnati for the next three months 
C)  A notebook manufacturer predicts the sales of notebooks this school season based on sales from the last five years 
D)  A handbag retailer compares response rates to two variations of the same Instagram ad

Question 10

Car washes are a dime a dozen, or are they? You and your competitors are all charging $20 for a basic car wash, but as you think about long-range planning, you'd like to attract more business to your Rainbow's End Car Wash. What should you do?

Accepted Answer

A)  Offer a 20% off coupon for the next three months 
B)  Lower your prices, even though it will mean a significant loss in profits 
C)  Enhance your customer service by offering free drinks in a clean, inviting waiting room 
D)  Raise your prices to suggest an image of high-end luxury 
A)  Offer a 20% off coupon for the next three months 
B)  Lower your prices, even though it will mean a significant loss in profits 
C)  Enhance your customer service by offering free drinks in a clean, inviting waiting room 
D)  Raise your prices to suggest an image of high-end luxury

A leader merchandise is a product offered by retailers to customers at less than cost to attract them to stores.

Under which of the following conditions is a product most likely to have an elastic demand?

Skimming pricing strategies are also known as "market-plus pricing."

A demand is said to be inelastic when the:

Product line pricing is the practice of marketing merchandise at variable prices negotiated between buyer and seller.

Which of the following is an example of a qualitative forecasting technique?

Car washes are a dime a dozen, or are they? You and your competitors are all charging $20 for a basic car wash, but as you think about long-range planning, you'd like to attract more business to your Rainbow's End Car Wash. What should you do?

Marketing: the Art of Satisfying Customers

Strategic Planning in Contemporary Marketing

The Marketing Environment, Ethics, and Social Responsibility

E-Business: Managing the Customer Experience

Social Media: Living in the Connected World

Consumer Behavior

Business Markets and Buying Behavior

Global Marketing

Market Segmentation, Targeting, and Positioning

Marketing Research

Product and Branding Concepts

Developing and Managing Products

Pricing Concepts

Distribution Channels and Supply Chain Management

Retailing and Direct Marketing

Integrated Marketing Communications

Personal Selling and Sales Promotion

Creating A Marketing Plan

Financial Analysis In Marketing

Your Career In Marketing

Filters

Exam 14: Pricing Strategies

A leader merchandise is a product offered by retailers to customers at less than cost to attract them to stores.

Under which of the following conditions is a product most likely to have an elastic demand?

Skimming pricing strategies are also known as "market-plus pricing."

A demand is said to be inelastic when the:

Product line pricing is the practice of marketing merchandise at variable prices negotiated between buyer and seller.

Which of the following is an example of a qualitative forecasting technique?

Car washes are a dime a dozen, or are they? You and your competitors are all charging $20 for a basic car wash, but as you think about long-range planning, you'd like to attract more business to your Rainbow's End Car Wash. What should you do?

Marketing: the Art of Satisfying Customers

Strategic Planning in Contemporary Marketing

The Marketing Environment, Ethics, and Social Responsibility

E-Business: Managing the Customer Experience

Social Media: Living in the Connected World

Consumer Behavior

Business Markets and Buying Behavior

Global Marketing

Market Segmentation, Targeting, and Positioning

Marketing Research

Product and Branding Concepts

Developing and Managing Products

Pricing Concepts

Distribution Channels and Supply Chain Management

Retailing and Direct Marketing

Integrated Marketing Communications

Personal Selling and Sales Promotion

Creating A Marketing Plan

Financial Analysis In Marketing

Your Career In Marketing

Filters