86) P&G surveyed the market and identified an unserved segment of the electric toothbrush market. Using these results, P&G created Spinbrush. The unorthodox order of this marketing mix decision is an example of ________.
A) competition-based pricing
B) cost-plus pricing
C) target costing
D) value-based pricing
E) penetration pricing
Answer: C
Diff: 2 Page Ref: 300
AACSB: Analytic Skills
Skill: Application
Objective: 10-3
87) PoolPak produces climate-control systems for large swimming pools. The company's customers are more concerned about service support for maintaining a system than its initial price. PoolPak may use this knowledge to become more competitive through ________.
A) target costing
B) value pricing
C) cost-plus pricing
D) a nonprice position
E) skimming pricing
Answer: D
Diff: 2 Page Ref: 300
AACSB: Reflective Thinking Skills
Skill: Application
Objective: 10-3
88) By pledging to be a leader in providing clean, renewable energy sources and developing products and services that help consumers protect the environment, Green Mountain Power competes successfully against "cheaper" brands that focus on more price-sensitive consumers. Green Mountain Power has the firm belief that even kilowatt-hours can be ________.
A) cost-plus priced
B) represented by a demand curve
C) differentiated
D) value-based priced
E) none of the above
Answer: C
Diff: 3 Page Ref: 300
AACSB: Reflective Thinking Skills
Skill: Application
Objective: 10-3
89) In Vin del Mar, Chile, there are a dozen stores specializing in selling the same quality of seafood products on one street. An individual store dare not charge more than the going price without the risk of losing business to the other stores that are selling the fish at a common price. This is an example of what type of market?
A) pure competition
B) monopolistic competition
C) oligopolistic competition
D) pure monopoly
E) socialist
Answer: A
Diff: 2 Page Ref: 301
AACSB: Analytic Skills
Skill: Application
Objective: 10-3
90) Companies are fortunate to have demand that is more ________ because they may be able to set higher prices.
A) elastic
B) external
C) internal
D) inelastic
E) fixed
Answer: D
Diff: 2 Page Ref: 303
AACSB: Reflective Thinking Skills
Skill: Application
Objective: 10-3
91) If demand falls by 1 percent when price is increased by 2 percent, then ________.
A) elasticity is -1/2
B) demand is inelastic
C) demand is elastic
D) buyers are not price sensitive
E) A and B
Answer: E
Diff: 3 Page Ref: 303
AACSB: Reflective Thinking Skills
Skill: Application
Objective: 10-3
92) Jimmy's Hardware, an independent local retailer, is losing business to Walmart. This is most likely because he cannot match Walmart's pricing strategy of ________.
A) EDLP
B) EFGF
C) fixed prices
D) value-added pricing
E) skimming pricing
Answer: A
Diff: 2 Page Ref: 293
AACSB: Reflective Thinking Skills
Skill: Critical Thinking
Objective: 10-2
93) Consumers who have less time and patience for watching for supermarket specials and clipping coupons would most likely prefer ________.
A) variable pricing
B) high-low pricing
C) EDLP
D) break-even pricing
E) value-added pricing
Answer: C
Diff: 3 Page Ref: 293
AACSB: Reflective Thinking Skills
Skill: Critical Thinking
Objective: 10-2
94) ________ pricing works only if that price actually brings in the expected level of sales.
A) Elasticity
B) Markup
C) Variable
D) Inelasticity
E) Target return
Answer: E
Diff: 3 Page Ref: 298
AACSB: Reflective Thinking Skills
Skill: Critical Thinking
Objective: 10-2
95) If Canon Camera Company follows a high-price, high-margin strategy, what will competitors such as Nikon, Minolta, and Pentax most likely do?
A) They will go out of business.
B) They will want to compete against Canon.
C) They will advertise less.
D) They will bundle their products.
E) none of the above
Answer: B
Diff: 2 Page Ref: 299
AACSB: Reflective Thinking Skills
Skill: Critical Thinking
Objective: 10-2
96) If Canon Camera Company follows a low-price, low-margin strategy for a product, what will competitors most likely do?
A) They will decide to decide to target underserved niches.
B) They will want to compete in the same markets against Canon.
C) They will advertise less.
D) They will advertise more.
E) none of the above
Answer: A
Diff: 3 Page Ref: 299
AACSB: Analytic Skills
Skill: Application
Objective: 10-2
97) Consumers usually perceive higher-priced products as ________.
A) out of reach for most people
B) having high quality
C) having target-cost prices
D) having cost-based prices
E) being in the introductory stage of the product life cycle
Answer: B
Diff: 3 Page Ref: 301
AACSB: Reflective Thinking Skills
Skill: Critical Thinking
Objective: 10-3
No comments:
Post a Comment