Quiz
Pricing in Marketing
Questions in this quiz (18)
1How does technology help businesses when it enables them to obtain and analyze vast amounts of information that impact the pricing function?
- ABy generating profit-and-loss statements
- BBy deciding how much to spend on advertising
- CBy calculating the cost of hiring more employees
- DBy determining the best time to adjust prices
2What might happen if a business's customers feel that they are not getting the most value for their money?
- ASales remain the same.
- BSales increase.
- CCustomers spend money elsewhere.
- DCustomers purchase more.
3What pricing tactic might be considered questionable by some businesses?
- AMatching the prices of a competitor
- BDeveloping a complex pricing structure
- CMarking up prices to earn a profit
- DProviding a reference price
4 Which of the following factors should businesses consider when establishing a product's selling price?
- AEconomic conditions
- BUnfair sales laws
- CPricing agreements
- DTrade practices
5What is an example of an unethical pricing practice?
- AA company prices its products low in an attempt to drive its competitors out of business.
- BA business increases its prices when the cost of the materials to make the products increases.
- CA firm sets a business objective to increase its profit margins over the next five years.
- DA business prices a new product line to reflect high quality and status.
6The 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?
- ASherman Antitrust Act
- BClayton Act
- CRobinson-Patman Act
- DFederal Trade Commission Act
7Which of the following is an example of an ethical issue as it relates to predatory pricing?
- AAn international book publisher sells similar products to similar customers at different prices.
- BA tire producer introduces a new item to its product line and sets the initial price very low.
- CA salesperson encourages a customer to purchase an extended vehicle warranty for a new car.
- DA local ice-cream shop prices menu items below cost in an effort to eliminate its competition.
8What is the advantage to a business of using bar-code pricing?
- AEasier for customers to read
- BReduces required business security
- CEasier to change prices
- DReduces number of employees needed for sales
9 What is an external factor that affects the price that a business charges for its products?
- AOperating costs
- BVariable expenses
- CEconomic conditions
- DEmployee benefits
10 Why do some new companies set their selling prices as low as they can?
- ATo eliminate all possible competition
- BTo get market share as fast as possible
- CTo earn a high return on investment
- DTo quickly make a large profit
11Companies 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?
- ABait-and-Switch
- BPrice Fixing
- CLoss-leader Pricing
- DGray Markets
12 Charging premium prices for lumber to hurricane victims because supply is limited is
- Aunethical and illegal.
- Bunethical and legal.
- Cethical and legal.
- Dethical and illegal.
13A 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?
- APrice Discrimination
- BControlled Pricing
- CPrice Competition
- DRegulated Pricing
14Wal-Mart and Sears attract two different types of customers because of their pricing strategies. They have established their prices based on __________ decisions.
- Apromotional
- Bcustomer
- Cplace
- Dprofit
15What 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?
- ABelow-cost pricing
- BHigh-level pricing
- COdd-cents pricing
- DFlexible pricing
16One way that many businesses use technology to reduce the costs associated with marking prices on products is by using
- Aelectronic scanning devices.
- Bautomated inventory systems.
- Cpreprinted gummed labels.
- Dcomputer-generated tags.
17 Technology allows manufacturers to pre-print product packaging with Universal Product Codes (UPCs) which contain __________ information.
- Apricing
- Bsampling
- Coperating
- Dselling
18What costs do businesses usually include in the price of their products?
- ARegulations
- BInflation
- CTransportation
- DOrientation
Information
- Description
- This is a Unit 4 test related to pricing effects on the Marketing Mix.
- Author
- Deleted user
- Language
- English
- Views
- 13
- History
- Created on 5 Feb 2017 · updated on 5 Feb 2017
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