Marketing Test 3.06-3.07 LAPS

In which of the following businesses would a separate department most likely be responsible for establishing prices
Chain store
In which of the following businesses is the business owner usually responsible for setting prices
Java Joe’s Coffee Shop
Covering costs is a pricing objective related to
profitability
What would be the most appropriate pricing strategy for a business in a small town where unemployment has skyrocketed and the economy is in a downturn
Flexible pricing
To set prices, businesses must price the physical product and all of its associated
services
Informing, persuading, or reminding customers about products is known as
promotion
Which of the following elements of the marketing mix involves decisions about shipping, handling, and storing items
Place
Company goals that influence how marketers make pricing decisions are called
pricing objectives
Sellers must carefully set prices so that buyers feel they are receiving __________ value for their money
optimum
Can pricing affect a business’s image
Yes; a business with low prices may have a discount image.
When companies increase the quality of materials used in the production of their products, their prices will tend to be
higher
Deciding what goods, services, or ideas to produce or sell to satisfy customers’ needs is known as making __________ decisions
product
Does pricing affect the amount of money a business spends on product research
Yes; companies will not spend as much on research for lower priced products.
Wal-mart and Sears attract two different types of customers because of their pricing strategies. They have established their prices based on _____ decisions
customer
A station across the street is offering gasoline for five cents cheaper per gallon. The other stations in the area decide to lower their prices as well. This is an example of ______ pricing
competitive
Which area of promotion will pricing affect
Advertising budget
The amount of money that a buyer is willing to pay and a seller is willing to accept for a product is known as
exchange price
Can prices be set too low
Yes; customers may feel quality is too low.
A downturn in the economy has forced a home builder to lower its prices. This company has __________ prices
flexible
What might happen if a business’s customers feel that they are not getting the most value for their money
Customers spend money elsewhere
What costs do businesses usually include in the price of their products
transportation
With what do many customers associate price
Quality
The determination of an exchange price acceptable to both the buyer and the seller of a product is called
pricing
What is an external factor that affects the price that a business charges for its products?(StateNC?)
Economic conditions
Erica wants to buy Marco’s used iPod. He is asking her to pay him $100 for it. $100 is the iPod’s
selling price
Which of the following factors related to a business’s objectives and strategies affects its pricing
Product mix
Which of the following is prohibited by government regulation
Businesses advertising a product claiming reduced price but only sold for a short time at higher price
Which of the following is not something a business must accomplish through selling price
Maintain market share
The selling prices of products help customers to
make buying decisions.
Jack’s General Store has advertised a big sale on toasters. When Wendy goes to the store to buy a toaster, the salesperson tells her they are all sold out and offers to sell her a higher priced toaster oven. This is an example of an illegal practice known as
bait-and-switch advertising.
The national economy is always changing. These ups and downs in economic activity are known as
business cycles.
The majority of businesses that use profit-oriented pricing want to:.
earn a reasonable amount of profit
Most marketers feel that it is a good strategy to price their products according to the
way their customers view the products.
Is the following statement true or false
There is no connection between a firm’s marketing objectives and its pricing objectives:
False; pricing objectives should be used to achieve marketing objectives.
In which of the following forms of competition are no substitutes readily available
Monopoly
Which of the following is true of a business’s pricing objectives
They must be adjusted from time to time.
It costs a publishing company $8 to produce a paperback book. The company sells each paperback it produces for $9.99. The $1.99 difference is known as
mark-up
What happens when demand for a product goes up
Producers make more of it.
The objective of pricing that is intended to earn a certain percentage of profit based on the amount of
return on investment.
Why is obtaining, maintaining, or increasing market share important to a business
Market share serves as a measure of the success of the business.
Businesses that come under government control often set a target return of profit because they
may be investigated if they earn high profits.
A business charges a small company a higher price for a product than it charges a large company for the same product. What does this represent
Price discrimination
Which of the following is a true statement
There are many kinds of selling prices for goods and services.
A business that sets its prices lower than those of competitors will not make a profit unless it also
controls its costs.
In what type of market do companies compete by making their products different from each other as to quality, service, styles, and prices
Monopolistic competition
Selling price helps customers to allocate their money because price determines
what customers can afford to purchase.
What kind of competitive market is characterized by a great many buyers and sellers of nearly identical products and marketers who have little control over pricing
Pure competition
Companies A, B, and C sell similar products. Together, they recently agreed to sell their products for the same price. In what unethical activity are the businesses engaging even if the price would be considered fair
Price fixing
A business that uses sales-oriented pricing objectives wants to increase the
total amount of its income from sales.
If a producer priced its products much lower than those offered by competitors, is it possible that the producer would lose customers
Yes; the price may be so low that the producer is unable to perform certain duties.
Why is it important for businesses to recover their costs
So that they can stay in business
The goal of channels of distribution is to move products from producers to
final consumers
Channels of distribution benefit consumers by
making a variety of products available to them
Channels of distribution benefit businesses by
getting their products to consumers more efficiently
Providing marketing information is an important channel activity. Businesses rely on marketing information to determine
their target markets’ needs and wants
The costs of promoting products are often
shared by channel members
Retailers perform an important channel activity by negotiating with consumers on issues such as
delivery
A wholesaler breaks down a large shipment of a product and sells portions of it to several retailers. The wholesaler is reducing a discrepancy of
quantity
A retailer buys a variety of toys from a number of different producers and makes them all available for sale in the same place. The retailer is reducing a discrepancy of
assortment
Channels of distribution allow channel members to share
risk
Channel members add value to a product by
performing certain channel activities expertly
Which of the following is NOT a condition that must exist for channels to be effective
They must have at least five members
Channel members should share an equal commitment to the product’s
quality
The first decision that marketers must make when managing channels is
setting channel objectives
Producers who eliminate all middlemen in the channel are said to be using _____ distribution
direct
Marketers determine distribution intensity so they can achieve
ideal market exposure
When marketers are trying to reach the greatest number of consumers possible, they use a(n) __________distribution pattern
intensive
Which of the following products would likely use an exclusive distribution pattern
A large piece of farm machinery
The total number of members in a channel is called
channel length
A channel task should be performed by the channel member who
performs it best
A producer feels that a retailer is not marketing its product to final consumers aggressively enough. This is an example of
vertical conflict
Who is often closer to final consumers than producers are and can provide valuable marketing information
intermediaries
Marketers use _________ distribution to maintain tight control over a product
exclusive
__________ are businesses that buy consumer goods or services and sell them to ultimate consumers.
retailers
Marketers want to achieve ________ by making their product available to each and every customer who might buy it
ideal market exposure
___________ are financial penalties assessed for a variety of problems, such as late shipments or damaged merchandise
chargebacks
An advantage for producers in using the producer to wholesaler to retailer to consumer distribution channel is that
wholesalers usually buy in large quantities
Which of the following is an example of an industrial user
A hairstylist buying new scissors to perform haircuts
Which of the following intermediaries never actually owns the products it promotes and sells
Agents
Which indirect channel of distribution is used to reach large retailers when the producer does not want responsibility for the selling activities
Producer to agent to retailer to consumer
Top-Notch Wheels buys mountain bikes from The Great Colorado Mountain Bike Company and sells them to bike shops. Top-Notch Wheels is an example of a(n)
wholesaler
Intermediaries buy large quantities of goods from producers and sell smaller quantities to other intermediaries or to consumers. The result is that intermediaries __________ producers per-unit cost for goods
reduce
Which of the following is a benefit of channels of distribution
We can more easily obtain products from all over the world
The use of intermediaries enables producers to make larger profits because intermediaries
may sell more than the producer could sell on its own
What is the most common channel of distribution for large industrial goods
Producer to industrial user
Quality Distributors buys electrical equipment and supplies from ABC Electric and sells them to local electrical contractors. Quality Distributors is an example of a(n)
intermediary
Where does a channel of distribution begin
With the producer
Which of the following services would be distributed by a producer to agent to consumer channel
Travel planning
Wal-Mart, Domino’s Pizza, and Avis Rent-a-Car are examples of
retailers
What distribution channel is used for high-priced industrial goods when the producer does not have its own sale force
Producer to agent to user
Producers are able to match their production to the needs of consumers or industrial users because intermediaries
develop an assortment of goods
Which of the following is an example of an ultimate consumer
A teenager buying her/his first car