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general business data bank




Question;1);A company sets not a single price, but rather a ________ that covers different;items in its line that change over time as products move through their life;cycles.;A);pricing by-product;B);pricing structure;C);pricing loop;D);pricing cycle;E);pricing bundle;2);Companies facing the challenge of setting prices for the first time can choose;between two broad strategies: market-penetration pricing and ________.;A);market-level pricing;B);market-competitive pricing;C);market-skimming pricing;D);market-price lining;E);market-price filling;1;3);Of the following, which statement would NOT support a market-skimming policy;for a new product?;A);The product's quality and image support its higher price.;B);Enough buyers want the products at that price.;C);Competitors are not able to undercut the high price.;D);Competitors can enter the market easily.;E);C and D;4);HiPoint Telephone Company uses two-part pricing for its long-distance call;charges. Because this is a service, the price is broken into a fixed rate plus;a ________.;A);fixed rate usage;B);variable usage rate;C);standard usage rate;D);market usage rate;E);none of the above;5);Companies involved in deciding which items to include in the base price and;which to offer as options are engaged in ________ pricing.;A);product bundle;B);optional-product;C);captive-product;D);by-product;E);skimming;6);Keeping in mind that a seller must sell by-products at a price that covers more;than the cost of storing and delivering them, which of the following will;by-product pricing permit a seller to do?;A);increase the main product's price;B);make extra profit;C);reduce the main product's price;D);none of the above;E);B and C;7);With product bundle pricing, sellers can combine several products and offer the;bundle ________.;A);as a working unit;B);at a reduced price;C);as a complete self-service package;D);as a reward to loyal customers;E);as segmented pricing;8);What is a major advantage of product bundle pricing?;A);It can promote the sales of products consumers might not otherwise buy.;B);It offers consumers more value for the money.;C);It combines the benefits of the other pricing strategies.;D);It provides a more complete product experience for consumers.;E);All of the above.;9);Which of the following is NOT a price adjustment strategy?;A);segmented pricing;B) promotional pricing;C) free samples;D) geographical pricing;E) seasonal pricing;10) Service Industries, Inc., plans to;offer a price-adjustment strategy in the near future. They could consider each;of the following EXCEPT ________.;A);discount and allowance pricing;B);segmented pricing;C);physiological pricing;D);promotional pricing;E);location pricing;11) Consumer use price less to judge the;quality of a product when they ________.;A);lack information;B);lack skills to use the product;C);have experience with the product;D);are shopping for a specialty item;E);cannot physically examine the product;12) Michael and John both own leather;jackets and are currently shopping for two new ones. They both have prices in;mind and refer to them when shopping. These prices are termed ________.;A);psychological prices;B);reference prices;C);comparison prices;D);price points;E);skimmed prices;13) Which of the following refers to the;prices that a buyer carries in his or her mind and refers to when looking at a;given product?;A);target prices;B);reference prices;C);promotional prices;D);geographical prices;E);dynamic prices;14) Price escalation in international;markets may result from four of these five marketing conditions. Which one will;have the LEAST effect?;A);the additional cost of physical distribution;B);exchange-rate fluctuations;C);market stability;D);higher costs of selling;E);language barriers;15) There are many reasons why a firm;might consider cutting its price. All of the following are among them EXCEPT;A);excess capacity;B);falling demand in the face of strong price competition;C);a drive to dominate the market through lower costs;D);monopolistic competition;E);a drive to gain market share and cut costs through volume;16) Which of the following is a reason for;a company to raise its prices?;A);to address the issue of overdemand for a product;B);to win a larger share of the market;C);to use excess capacity;D);to boost sales volume;E);to balance out decreasing costs;17) Which of the following is a major;factor that influence price increases?;A);cost inflation;B);surplus of raw materials;C);government intervention;D);foreign competition;E);B and C;18) Competitors are most likely to react;to a price change when ________.;A);the number of firms involved is small;B);the purchase is uniform;C);the buyers are not well informed;D);A and B;E);all of the above;19) Price discrimination is legal under;which of the following conditions?;A);when a manufacturer and reseller have agreed upon a specified retail price for;a product;B);when a manufacturer sells to retailers in different markets;C);when a seller can prove its costs are different when selling to different;retailers;D);when a seller advertises prices that are not actually available to consumers;E);when a seller has not communicated with competitors before announcing prices;20) Price discrimination may be used to;match competition as long as the strategy is temporary, localized, and;A);defensive;B);offensive;C);published;D);private;E);used in all channels;21) When a manufacturer seeks a market for;by-products and accepts a price that covers more than the cost of storing and;delivering those by-products, the manufacturer is able to reduce the main;product's price to make it more competitive.;22) When using product bundle pricing;sellers combine several of their products and offer the bundle at an increased;price for increased profit.;23) Most companies adjust their basic;prices to account for various customer differences and changing situations.;24) A seasonal discount is a price;reduction to buyers who buy merchandise or services while they are in season.;25) Manufacturers may offer functional;discounts within trade channels for channel members who store inventory.;26) The basic difference between;customer-segment pricing and product-form pricing is that the latter offers;alternative versions of the product that are priced differently but not;according to differences in their costs.;27) Segmented pricing is known by other;names, two of the most common are revenue management and yield management.;28) A company considering a price change;should be more concerned about consumers' reactions than competitors;reactions.;29) Your company may respond to a;competitor's price reduction by launching a low-price fighting brand. This is;likely necessary if the particular market segment being lost is price sensitive;and will not respond to arguments of higher quality.;30) State and federal governments accept;some reasons for price-fixing when it does not limit competition.


Paper#47212 | Written in 18-Jul-2015

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