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MKT300-2
Chapter 19 Quiz
| Question | Answer |
|---|---|
| If a company's pricing objective is to meet the competition or to maintain existing prices, it is using _____ pricing. | status quo |
| Cowboy Malone’s Electric City pays a wholesaler $692 for a television and sells it to a customer for $1,500. The markup on the television is: | $800 |
| Price should not be used as a promotional tool. | false |
| Today's firms must develop specific, measurable, and attainable pricing objectives if they hope to survive in highly competitive markets. | true |
| The Nest is a retail store owned and operated by an interior designer. The markup on all items in the store is 100 percent over cost (or double the cost). In this case we would say that the designer uses: | keystoning |
| key stoning | is the practice of marking up items by 100% |
| Peggy’s Twist Shack sells soft-serve ice cream. Peggy graphed the demand per week for vanilla ice cream cones. The graph indicates a demand schedule that slopes downward and to the right. This graph indicates that the quantity of vanilla ice cream cones demanded increases as: | decreases |
| Break-even analysis determines what sales volume must be reached for a product before the company's total revenue equals total costs. | true |
| What does the lack of a price-matching guarantee tend to signal to the target market? | the retailer provides a high level of service |
| David likes New Balance running shoes. However, when he stopped by the Foot Locker to buy a new pair of running shoes he notice that Nike had a new pair of running shoes that cost $350. To David the higher price of the Nike shoe indicated that it would be a better pair of running shoes. This is an example of: | prestige pricing |
| At the end of the summer, the Bloomin’ Garden Center reduced the price on all of its plants, fertilizer, and potting soil by 50 percent in order to liquidate this inventory. What type of pricing strategy is being used in this example? | sales maximization |
| Refer to the American Girl Doll. In terms of producing the doll and its accessories, the calico fabric used to make Kristen's dress is an example of a(n): | variable cost |
| At a price of $6,000, only 191 of the Moulton 60 model bicycle are being made. If Moulton sells each one of the bicycles at that price, then a state of _____ has been achieved. | price equilibrium |
| price at which supply is equal to demand is known as | price equilibrium |
| Market share is a company’s product sales as a percentage of its total sales for that industry. | true |
| Refer to Smelly Fruit. Suppose you have decided to buy land in Thailand and become a durian producer. You see that the customary price for a Kan Yao is $200, so that is the price you decide to charge for your durian crop. This suggests you are using a _____ approach to setting your price. | status quo |
| The owner of Buffalo Mountain Coffee Shop pays the same amount in rent each month no matter how many customers she serves. The shop owner’s rent is an example of a marginal cost. | false |
| Shopping bots: | provide a means for comparison shopping |
| For convenience, pricing objectives can be divided into three categories. They are: | profit oriented, sales oriented, and status quo |
| Profit maximization is the price at which supply and demand are equal, and there is no inclination for prices to rise or fall. | false |
| When Apple Inc. originally introduced its iPhone it was priced at what many believed to be about as high as the market would allow. Within weeks Apple lowered the price of the iPhone. It appears that Apple Inc. entered the market with a _____ approach to pricing the iPhone. | profit maximization |
| Total variable costs divided by quantity of output equals: | average variable cost |
Created by:
pfrizzel