Kathleen Keller
Quiz by , created more than 1 year ago

This is a Unit 4 test related to pricing effects on the Marketing Mix.

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Kathleen Keller
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Pricing in Marketing

Question 1 of 18

1

How does technology help businesses when it enables them to obtain and analyze vast amounts of information that impact the pricing function?

Select one of the following:

  • By generating profit-and-loss statements

  • By deciding how much to spend on advertising

  • By calculating the cost of hiring more employees

  • By determining the best time to adjust prices

Explanation

Question 2 of 18

1

What might happen if a business's customers feel that they are not getting the most value for their money?

Select one of the following:

  • Sales remain the same.

  • Sales increase.

  • Customers spend money elsewhere.

  • Customers purchase more.

Explanation

Question 3 of 18

1

What pricing tactic might be considered questionable by some businesses?

Select one of the following:

  • Matching the prices of a competitor

  • Developing a complex pricing structure

  • Marking up prices to earn a profit

  • Providing a reference price

Explanation

Question 4 of 18

1

Which of the following factors should businesses consider when establishing a product's selling price?

Select one of the following:

  • Economic conditions

  • Unfair sales laws

  • Pricing agreements

  • Trade practices

Explanation

Question 5 of 18

1

What is an example of an unethical pricing practice?

Select one of the following:

  • A company prices its products low in an attempt to drive its competitors out of business.

  • A business increases its prices when the cost of the materials to make the products increases.

  • A firm sets a business objective to increase its profit margins over the next five years.

  • A business prices a new product line to reflect high quality and status.

Explanation

Question 6 of 18

1

The Standard Oil Company's price-fixing tactics and monopolistic control over oil refining and distribution in the late 1800's was a major contributing factor in the enactment of which piece of legislation?

Select one of the following:

  • Sherman Antitrust Act

  • Clayton Act

  • Robinson-Patman Act

  • Federal Trade Commission Act

Explanation

Question 7 of 18

1

Which of the following is an example of an ethical issue as it relates to predatory pricing?

Select one of the following:

  • An international book publisher sells similar products to similar customers at different prices.

  • A tire producer introduces a new item to its product line and sets the initial price very low.

  • A salesperson encourages a customer to purchase an extended vehicle warranty for a new car.

  • A local ice-cream shop prices menu items below cost in an effort to eliminate its competition.

Explanation

Question 8 of 18

1

What is the advantage to a business of using bar-code pricing?

Select one of the following:

  • Easier for customers to read

  • Reduces required business security

  • Easier to change prices

  • Reduces number of employees needed for sales

Explanation

Question 9 of 18

1

What is an external factor that affects the price that a business charges for its products?

Select one of the following:

  • Operating costs

  • Variable expenses

  • Economic conditions

  • Employee benefits

Explanation

Question 10 of 18

1

Why do some new companies set their selling prices as low as they can?

Select one of the following:

  • To eliminate all possible competition

  • To get market share as fast as possible

  • To earn a high return on investment

  • To quickly make a large profit

Explanation

Question 11 of 18

1

Companies A, B, and C sell similar products. Together, they recently decided to sell their products for the same price. In what unethical activity are the businesses engaging?

Select one of the following:

  • Bait-and-Switch

  • Price Fixing

  • Loss-leader Pricing

  • Gray Markets

Explanation

Question 12 of 18

1

Charging premium prices for lumber to hurricane victims because supply is limited is

Select one of the following:

  • unethical and illegal.

  • unethical and legal.

  • ethical and legal.

  • ethical and illegal.

Explanation

Question 13 of 18

1

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?

Select one of the following:

  • Price Discrimination

  • Controlled Pricing

  • Price Competition

  • Regulated Pricing

Explanation

Question 14 of 18

1

Wal-Mart and Sears attract two different types of customers because of their pricing strategies. They have established their prices based on __________ decisions.

Select one of the following:

  • promotional

  • customer

  • place

  • profit

Explanation

Question 15 of 18

1

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?

Select one of the following:

  • Below-cost pricing

  • High-level pricing

  • Odd-cents pricing

  • Flexible pricing

Explanation

Question 16 of 18

1

One way that many businesses use technology to reduce the costs associated with marking prices on products is by using

Select one of the following:

  • electronic scanning devices.

  • automated inventory systems.

  • preprinted gummed labels.

  • computer-generated tags.

Explanation

Question 17 of 18

1

Technology allows manufacturers to pre-print product packaging with Universal Product Codes (UPCs) which contain __________ information.

Select one of the following:

  • pricing

  • sampling

  • operating

  • selling

Explanation

Question 18 of 18

1

What costs do businesses usually include in the price of their products?

Select one of the following:

  • Regulations

  • Inflation

  • Transportation

  • Orientation

Explanation

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