question

In which of the following businesses would a separate department most likely be responsible for establishing prices

answer

Chain store

question

In which of the following businesses is the business owner usually responsible for setting prices

answer

Java Joe's Coffee Shop

question

Covering costs is a pricing objective related to

answer

profitability

question

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

answer

Flexible pricing

question

To set prices, businesses must price the physical product and all of its associated

answer

services

question

Informing, persuading, or reminding customers about products is known as

answer

promotion

question

Which of the following elements of the marketing mix involves decisions about shipping, handling, and storing items

answer

Place

question

Company goals that influence how marketers make pricing decisions are called

answer

pricing objectives

question

Sellers must carefully set prices so that buyers feel they are receiving __________ value for their money

answer

optimum

question

Can pricing affect a business's image

answer

Yes; a business with low prices may have a discount image.

question

When companies increase the quality of materials used in the production of their products, their prices will tend to be

answer

higher

question

Deciding what goods, services, or ideas to produce or sell to satisfy customers' needs is known as making __________ decisions

answer

product

question

Does pricing affect the amount of money a business spends on product research

answer

Yes; companies will not spend as much on research for lower priced products.

question

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

answer

customer

question

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

answer

competitive

question

Which area of promotion will pricing affect

answer

Advertising budget

question

The amount of money that a buyer is willing to pay and a seller is willing to accept for a product is known as

answer

exchange price

question

Can prices be set too low

answer

Yes; customers may feel quality is too low.

question

A downturn in the economy has forced a home builder to lower its prices. This company has __________ prices

answer

flexible

question

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

answer

Customers spend money elsewhere

question

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

answer

transportation

question

With what do many customers associate price

answer

Quality

question

The determination of an exchange price acceptable to both the buyer and the seller of a product is called

answer

pricing

question

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

answer

Economic conditions

question

Erica wants to buy Marco's used iPod. He is asking her to pay him $100 for it. $100 is the iPod's

answer

selling price

question

Which of the following factors related to a business's objectives and strategies affects its pricing

answer

Product mix

question

Which of the following is prohibited by government regulation

answer

Businesses advertising a product claiming reduced price but only sold for a short time at higher price

question

Which of the following is not something a business must accomplish through selling price

answer

Maintain market share

question

The selling prices of products help customers to

answer

make buying decisions.

question

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

answer

bait-and-switch advertising.

question

The national economy is always changing. These ups and downs in economic activity are known as

answer

business cycles.

question

The majority of businesses that use profit-oriented pricing want to:.

answer

earn a reasonable amount of profit

question

Most marketers feel that it is a good strategy to price their products according to the

answer

way their customers view the products.

question

Is the following statement true or false There is no connection between a firm's marketing objectives and its pricing objectives:

answer

False; pricing objectives should be used to achieve marketing objectives.

question

In which of the following forms of competition are no substitutes readily available

answer

Monopoly

question

Which of the following is true of a business's pricing objectives

answer

They must be adjusted from time to time.

question

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

answer

mark-up

question

What happens when demand for a product goes up

answer

Producers make more of it.

question

The objective of pricing that is intended to earn a certain percentage of profit based on the amount of

answer

return on investment.

question

Why is obtaining, maintaining, or increasing market share important to a business

answer

Market share serves as a measure of the success of the business.

question

Businesses that come under government control often set a target return of profit because they

answer

may be investigated if they earn high profits.

question

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

answer

Price discrimination

question

Which of the following is a true statement

answer

There are many kinds of selling prices for goods and services.

question

A business that sets its prices lower than those of competitors will not make a profit unless it also

answer

controls its costs.

question

In what type of market do companies compete by making their products different from each other as to quality, service, styles, and prices

answer

Monopolistic competition

question

Selling price helps customers to allocate their money because price determines

answer

what customers can afford to purchase.

question

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

answer

Pure competition

question

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

answer

Price fixing

question

A business that uses sales-oriented pricing objectives wants to increase the

answer

total amount of its income from sales.

question

If a producer priced its products much lower than those offered by competitors, is it possible that the producer would lose customers

answer

Yes; the price may be so low that the producer is unable to perform certain duties.

question

Why is it important for businesses to recover their costs

answer

So that they can stay in business

question

The goal of channels of distribution is to move products from producers to

answer

final consumers

question

Channels of distribution benefit consumers by

answer

making a variety of products available to them

question

Channels of distribution benefit businesses by

answer

getting their products to consumers more efficiently

question

Providing marketing information is an important channel activity. Businesses rely on marketing information to determine

answer

their target markets' needs and wants

question

The costs of promoting products are often

answer

shared by channel members

question

Retailers perform an important channel activity by negotiating with consumers on issues such as

answer

delivery

question

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

answer

quantity

question

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

answer

assortment

question

Channels of distribution allow channel members to share

answer

risk

question

Channel members add value to a product by

answer

performing certain channel activities expertly

question

Which of the following is NOT a condition that must exist for channels to be effective

answer

They must have at least five members

question

Channel members should share an equal commitment to the product's

answer

quality

question

The first decision that marketers must make when managing channels is

answer

setting channel objectives

question

Producers who eliminate all middlemen in the channel are said to be using _____ distribution

answer

direct

question

Marketers determine distribution intensity so they can achieve

answer

ideal market exposure

question

When marketers are trying to reach the greatest number of consumers possible, they use a(n) __________distribution pattern

answer

intensive

question

Which of the following products would likely use an exclusive distribution pattern

answer

A large piece of farm machinery

question

The total number of members in a channel is called

answer

channel length

question

A channel task should be performed by the channel member who

answer

performs it best

question

A producer feels that a retailer is not marketing its product to final consumers aggressively enough. This is an example of

answer

vertical conflict

question

Who is often closer to final consumers than producers are and can provide valuable marketing information

answer

intermediaries

question

Marketers use _________ distribution to maintain tight control over a product

answer

exclusive

question

__________ are businesses that buy consumer goods or services and sell them to ultimate consumers.

answer

retailers

question

Marketers want to achieve ________ by making their product available to each and every customer who might buy it

answer

ideal market exposure

question

___________ are financial penalties assessed for a variety of problems, such as late shipments or damaged merchandise

answer

chargebacks

question

An advantage for producers in using the producer to wholesaler to retailer to consumer distribution channel is that

answer

wholesalers usually buy in large quantities

question

Which of the following is an example of an industrial user

answer

A hairstylist buying new scissors to perform haircuts

question

Which of the following intermediaries never actually owns the products it promotes and sells

answer

Agents

question

Which indirect channel of distribution is used to reach large retailers when the producer does not want responsibility for the selling activities

answer

Producer to agent to retailer to consumer

question

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)

answer

wholesaler

question

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

answer

reduce

question

Which of the following is a benefit of channels of distribution

answer

We can more easily obtain products from all over the world

question

The use of intermediaries enables producers to make larger profits because intermediaries

answer

may sell more than the producer could sell on its own

question

What is the most common channel of distribution for large industrial goods

answer

Producer to industrial user

question

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)

answer

intermediary

question

Where does a channel of distribution begin

answer

With the producer

question

Which of the following services would be distributed by a producer to agent to consumer channel

answer

Travel planning

question

Wal-Mart, Domino's Pizza, and Avis Rent-a-Car are examples of

answer

retailers

question

What distribution channel is used for high-priced industrial goods when the producer does not have its own sale force

answer

Producer to agent to user

question

Producers are able to match their production to the needs of consumers or industrial users because intermediaries

answer

develop an assortment of goods

question

Which of the following is an example of an ultimate consumer

answer

A teenager buying her/his first car

Marketing Test 3.06-3.07 LAPS – Flashcards

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