Statements about price-setting process is most accurate

Assignment Help Operation Management
Reference no: EM132279784

1. A reference value __________.

is relative to the amount of time and energy a consumer puts into the purchase process

is based upon the value assigned to similar items used by the consumer's peers

results from performing a careful break-even analysis

involves comparing the costs and benefits of substitute items

is based upon the differential between customers' "needs" and "wants"

2. Penetration pricing is intended to appeal to which market?

highly selective, quality-seeking consumers

price-insensitive markets

specialty product markets

the same markets as those targeted with a skimming pricing strategy

the mass market

3. Marketing two or more products in a single package price is referred to as

package pricing.

loss-leader pricing.

bundle pricing.

tie-in pricing.

multi-product pricing.

4. All of the following are examples of a price EXCEPT:

a premium.



a commission.


5. Price refers to

the value assigned to the exchange of products and services for other products and services.

the value judgment made by both the buyer and seller regarding an item's worth.

the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

the value assessed for the benefits of using a product or service.

the highest monetary value a customer is willing to pay for a product or service.

6. Which of the following statements regarding a trade-in allowance is most accurate?

A trade-in allowance is a noncash exchange of one product for another of equal or lesser value.

A trade-in allowance is an effective way to lower the price a buyer has to pay without formally reducing the list price.

A trade-in allowance is a cash-back payment when a more expensive item is replaced with a less expensive one.

A trade-in allowance is the return of money based on proof of purchase.

A trade-in allowance is a cash payment to a retailer for extra in-store support or special featuring of the brand.

7. Hallmark was the official supplier of flowers at the last Winter Olympics. Hallmark presented each Olympic winner with a special bouquet of roses designed to resemble the Olympic torch. Consumers were able to buy a smaller version of this same bouquet at the Hallmark website for $74.95. The Olympic bouquet that consumers could buy contained two dozen yellow roses, yet you could buy the same two dozen yellow roses for less than $35 at most supermarkets. If Hallmark is treating the Olympic bouquet as an innovative product, then it is using which demand-oriented pricing approach?

bundle pricing

yield management pricing

skimming pricing

target return-on-sales pricing

penetration pricing

8. Several companies produce latex gloves that are used in a variety of different industries. If one of the glove manufacturers decreases its price by just a few percentage points, it will result in a significant increase in quantity demanded. The demand for latex gloves is






9. Manufacturers use seasonal discounts to

get rid of dated merchandise.

prevent retailers from purchasing competitors' products.

prolong the peak seasonal selling season.

establish an immediate feeling of goodwill between the buyer and seller that hopefully will continue when prices return to normal.

entice dealers to purchase seasonal merchandise earlier in the selling season.

10. Deceptive pricing practices are outlawed by legislation and enforced by which federal agency?

Consumer Protection Agency

U.S. Department of Justice

Federal Communications Commission

U.S. Department of Commerce

Federal Trade Commission

11. Which of the following statements about the price-setting process is most accurate?

When selecting a strategy for setting an initial price, it doesn't matter which one you use as long as you stick with it.

Sometimes pricing strategies overlap, and a seasoned marketer will consider several strategies when choosing an approximate price level.

Demand-oriented pricing approaches rely heavily on competitors' prices.

Skimming pricing is a competition-oriented pricing strategy.

Penetration pricing is the best pricing strategy for companies trying to meet the goals of a profit-oriented pricing approach.

12. Mail order selling, catalog sales, telemarketing, and televised home shopping are all examples of

direct marketing channels.

indirect marketing channels.

multimarketing channels.

virtual marketing channels.

personal selling.

13. A marketing channel intermediary that purchases merchandise for resale at retail outlets would be engaging in a(n) __________ function.




risk taking


14. You probably own several pairs of shoes. Further, it is likely you purchased those shoes at retail stores located in a shopping mall and not directly from the manufacturer. In fact, most products are brought to you from a series of other individuals or firms known as a __________.

marketing intermediary

distribution hierarchy

marketing chain of command

distribution matrix

marketing channel

15. There are three variations of contractual systems: wholesaler-sponsored voluntary chains, retailer-sponsored cooperatives, and __________.


service-oriented voluntary chains

channel-dominated voluntary chains

distributorship cooperatives

reseller franchising

Reference no: EM132279784

Provide a situation where the carrot and stick approach

Provide a situation where the carrot and stick approach was used. Was it effective? Do you think it should be minimized in organizations? Why or Why not? What motivational tec

How do schedule considerations add to your project risk

Assume that you are the project manager for the construction of 10 conference facilities in your organization’s building in Florida. A statement of work has been given to you,

Distribution-warehousing-transportation and customer service

You are the VP of Operations for your company and own all of your company’s operations/supply chain (R&D, Planning, Procurement, Manufacturing, Inventory Control, Warehousing/

What is the triple constraint as applies to it projects

What is a project, and what are its main attributes? How is a project different from what most people do in their day-to-day jobs? What is the triple constraint as applies to

Recognizing that life has many grays that emotions matter

Recognizing that life has many "grays," that emotions matter, and that the truth can vary from one situation to another is part of. Hispanic Americans have the lowest rates of

Find the minimum dimensions for the receiving area.

The weekly average number of incoming palletized load units at the SISA DC at Gioia Tauro in Italy is 21 465. The average time needed to unload a vehicle is 18.3 minutes.  Fin

Phrasing for the intention measure

You are interested in predicting whether a person will purchase a new Chrysler from the Bob Caldwell dealership in the next month. Someone suggests the following phrasing for

Public health business plan for a health organization

In this course, you are completing a public health business plan for a health organization. Imagine you are a leader in this health organization. How would you use an outcomes


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd