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1 | | Pricing objectives and policies should consider all of the following EXCEPT: |
| | A) | How flexible prices will be |
| | B) | When discounts will be given, and to whom |
| | C) | How transportation costs will be handled |
| | D) | What form of advertising will be used |
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2 | | Which of the following are alternate terms for the "price" of something? |
| | A) | College tuition |
| | B) | Rent |
| | C) | Bank interest on loans |
| | D) | All of the above |
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3 | | When a specific level of profit is set as an objective it is called a ____________ objective. |
| | A) | Profit maximizing |
| | B) | Target return |
| | C) | Sales-oriented |
| | D) | None of the above |
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4 | | Which of the following is a sales oriented pricing objective? |
| | A) | Target return |
| | B) | Meeting competition |
| | C) | Growth in market share |
| | D) | Non-price competition |
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5 | | A profit maximization objective always involves charging high prices, and therefore is not a socially desirable objective. |
| | A) | True |
| | B) | False |
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6 | | A _______________ objective seeks some level of unit sales, dollar sales, or share of market, without referring to profit. |
| | A) | Sales-oriented |
| | B) | Status-quo |
| | C) | Target-return |
| | D) | Profit-maximization |
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7 | | A ___________ objective may be adopted when a manager is satisfied with their current market share and profits. |
| | A) | Sales-oriented |
| | B) | Status-quo |
| | C) | Target-return |
| | D) | Profit-maximization |
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8 | | Prices that are set by a firm are called ________________. |
| | A) | Target prices |
| | B) | Dedicated prices |
| | C) | Administered prices |
| | D) | Non-market prices |
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9 | | The majority of U.S. firms use a one-price policy. |
| | A) | True |
| | B) | False |
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10 | | A(n) ________________ pricing policy tries to sell the top of a market - the top of the demand curve - at a high price before aiming at more price-sensitive customers. |
| | A) | Skimming |
| | B) | Penetration |
| | C) | Optimal |
| | D) | Best-practices |
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11 | | A(n) ______________ pricing policy tries to sell the whole market at one low price. |
| | A) | Skimming |
| | B) | Penetration |
| | C) | Discount |
| | D) | Global |
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12 | | The difference between introductory price dealing and other pricing policies is that introductory price cuts are only temporary, and other pricing policies are meant to be long term. |
| | A) | True |
| | B) | False |
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13 | | The prices final customers or users are normally asked to pay for products is known as ________________________. |
| | A) | Normal list prices |
| | B) | Customary list prices |
| | C) | Basic list prices |
| | D) | Standard list prices |
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14 | | Discounts that encourage large orders, but do not tie a buyer to subsequent purchases, are called __________________ discounts. |
| | A) | Quantity |
| | B) | Cumulative quantity |
| | C) | Non-cumulative quantity |
| | D) | Seasonal |
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15 | | Reductions from list price given by a seller to buyers who either give up some marketing function or provide the function themselves is known as a ____________. |
| | A) | Sales price |
| | B) | Discount |
| | C) | Enticement |
| | D) | Allowance |
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16 | | __________ means that payment for the face value of the invoice is due immediately. |
| | A) | "No terms" |
| | B) | Cash discounts |
| | C) | Priority pay |
| | D) | Net |
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17 | | ______________ are given to final consumers, customers, or channel members for doing something or accepting less of something. |
| | A) | Allowances |
| | B) | Credits |
| | C) | Bonuses |
| | D) | Incentives |
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18 | | Allowances that are given to retailers, by manufacturers or wholesalers, to pass on to the retailers' salesclerks for aggressively selling certain items are called ___________. |
| | A) | Push- money allowances |
| | B) | Advertising allowances |
| | C) | Rebates |
| | D) | Bonuses |
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19 | | The term F.O.B. (free on board) typically means that the seller pays the cost of loading the products onto some vehicle, and retains title and liability for damage in transit until the goods reach the buyer's destination. |
| | A) | True |
| | B) | False |
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20 | | In states that have passed an unfair trade practices act, selling _______ cost is illegal. |
| | A) | At |
| | B) | Above |
| | C) | Below |
| | D) | None of the above |
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21 | | Price fixing, competitors getting together to raise, lower, or stabilize prices, is allowed in approximately half of the states in the United States. |
| | A) | True |
| | B) | False |
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22 | | Under the Robinson-Patman Act, price discrimination is illegal under all circumstances. |
| | A) | True |
| | B) | False |
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