Question 1

Sales-oriented pricing objectives don't refer to profit.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following is a status quo oriented pricing objective?

Accepted Answer

A)   Target return
B)   Unit sales growth
C)   Profit maximization
D)   Growth in market share
E)   Nonprice competition E

Question 3

A target return objective and a profit maximization objective are both profit-oriented objectives.

Accepted Answer

A) True 
 B)False

Question 4

When a firm sells through intermediaries, there is little reason to try to administer the price intermediaries charge final consumers.

Accepted Answer

A) True 
 B)False

Question 5

Godiva, a maker of expensive European chocolates, does not mention price in its magazine advertising. Instead, the ad copy mentions the quality of the ingredients, the fine packaging, and the luxurious boutiques where Godiva chocolates are sold. Godiva seems to be pursuing a pricing objective of:

Accepted Answer

A)   Meeting competition.
B)   Nonprice competition.
C)   Target return.
D)   Growth in market share.
E)   None of these is a good answer.

Question 6

Target return pricing objectives:

Accepted Answer

A)   usually are very high for firms facing heavy competition.
B)   aren't used by industry leaders because they can maximize profits.
C)   would never make sense for a nonprofit organization.
D)   may simplify the management of large producers with many divisions or departments.
E)   All of these alternatives are correct.

Question 7

Regarding pricing objectives, a good marketing manager knows that:

Accepted Answer

A)   sales-oriented objectives usually lead to high profits.
B)   target return objectives usually lead to a large profit.
C)   status quo pricing objectives can be part of an extremely aggressive marketing strategy.
D)   profit maximization objectives always lead to high prices.
E)   None of these alternatives is correct.

Question 8

Which of the following statements about rebates is True?

Accepted Answer

A)   Rebates are refunds paid to consumers after a purchase.
B)   Rebates ensure that the final consumer gets a producer's price reduction.
C)   Many consumers purchase a product because a rebate is offered but then never request the refund.
D)   Many consumers think that some sellers make it an unnecessary hassle to claim a rebate.
E)   All of these statements about rebates are True. E

Question 9

If a producer's marketing manager doesn't know the shape of the demand curve for a new product, the initial price level policy should probably be a(an)  ______________ policy.

Accepted Answer

A)   flexible-pricing
B)   target-return pricing
C)   introductory pricing
D)   penetration price
E)   skimming price

Question 10

A target return pricing objective has administrative advantages in a large company where there are many divisions to compare.

Accepted Answer

A) True 
 B)False

Question 11

Ceramics Distributing Co. wants to keep its inventory low. Which of the following would be LEAST likely to encourage customers to take over more responsibility for the storage function?

Accepted Answer

A)   offering a cumulative quantity discount
B)   offering a stocking allowance
C)   offering a noncumulative quantity discount
D)   offering a seasonal discount

Question 12

A skimming pricing policy tries to sell to customers who are at the top of the demand curve first, before aiming for more price sensitive customers.

Accepted Answer

A) True 
 B)False

Question 13

The term "3/10, net 30" means that thirty percent of the face value of the invoice is due immediately, and that the rest must be paid within 30 days.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a SALES-ORIENTED pricing objective?

Accepted Answer

A)   Growth in market share
B)   Target return
C)   Nonprice competition
D)   Satisfactory profits
E)   Meeting competition

Question 15

Cumulative quantity discounts encourage repeat buying from the same seller, while noncumulative quantity discounts encourage large individual orders.

Accepted Answer

A) True 
 B)False

Question 16

Noncumulative quantity discounts are intended to encourage customers to make more of their on-going purchases from the same seller.

Accepted Answer

A) True 
 B)False

Question 17

Uniform delivered pricing is most commonly used when transportation costs are relatively low.

Accepted Answer

A) True 
 B)False

Question 18

"Push money" is most likely to be offered to:

Accepted Answer

A)   cosmetics salespeople at a department store.
B)   salesclerks at a grocery store.
C)   component materials' sales reps.
D)   industrial supplies' sales reps.
E)   Each of these is equally likely to receive "push money."

Question 19

_____ is what a customer must give up to get the benefits offered by the rest of a firm's marketing mix.

Accepted Answer

A)   Promotion
B)   Price
C)   Product
D)   Past
E)   Profit

Question 20

Jackson Motors, Inc. normally sells its electric motors to all buyers for $100. However, a competitor offered to sell similar motors to one of Jackson Motors' biggest customers for only $80 and Jackson Motors offered that customer--but not its other customers--a $80 selling price. According to the Robinson-Patman Act:

Accepted Answer

A)   Jackson Motors has not violated the law--it is just meeting competition.
B)   Jackson Motors is breaking the law--unless it offers to sell motors to all of its customers for $80.
C)   Jackson Motors cannot lower its $100 selling price.
D)   Jackson Motors cannot use the "meeting competition in good faith" defense unless it beats its competitor's $80 selling price.
E)   Jackson Motors AND its competitor are both guilty of price fixing.

Exam 16: Pricing Objectives and Policies

Sales-oriented pricing objectives don't refer to profit.

Correct Answer
verified
True

Which of the following is a status quo oriented pricing objective?

Correct Answer
verified
E

A target return objective and a profit maximization objective are both profit-oriented objectives.

Correct Answer
verified

When a firm sells through intermediaries, there is little reason to try to administer the price intermediaries charge final consumers.

Correct Answer
verified

Godiva, a maker of expensive European chocolates, does not mention price in its magazine advertising. Instead, the ad copy mentions the quality of the ingredients, the fine packaging, and the luxurious boutiques where Godiva chocolates are sold. Godiva seems to be pursuing a pricing objective of:

Correct Answer
verified

Target return pricing objectives:

Correct Answer
verified

Regarding pricing objectives, a good marketing manager knows that:

Correct Answer
verified

Which of the following statements about rebates is True?

Correct Answer
verified
E

If a producer's marketing manager doesn't know the shape of the demand curve for a new product, the initial price level policy should probably be a(an) ______________ policy.

Correct Answer
verified

A target return pricing objective has administrative advantages in a large company where there are many divisions to compare.

Correct Answer
verified

Ceramics Distributing Co. wants to keep its inventory low. Which of the following would be LEAST likely to encourage customers to take over more responsibility for the storage function?

Correct Answer
verified

A skimming pricing policy tries to sell to customers who are at the top of the demand curve first, before aiming for more price sensitive customers.

Correct Answer
verified

The term "3/10, net 30" means that thirty percent of the face value of the invoice is due immediately, and that the rest must be paid within 30 days.

Correct Answer
verified

Which of the following is a SALES-ORIENTED pricing objective?

Correct Answer
verified

Cumulative quantity discounts encourage repeat buying from the same seller, while noncumulative quantity discounts encourage large individual orders.

Correct Answer
verified

Noncumulative quantity discounts are intended to encourage customers to make more of their on-going purchases from the same seller.

Correct Answer
verified

Uniform delivered pricing is most commonly used when transportation costs are relatively low.

Correct Answer
verified

"Push money" is most likely to be offered to:

Correct Answer
verified

_____ is what a customer must give up to get the benefits offered by the rest of a firm's marketing mix.

Correct Answer
verified

Correct Answer
verified

Exam 16: Pricing Objectives and Policies

Sales-oriented pricing objectives don't refer to profit.

Correct AnswerverifiedTrue

Which of the following is a status quo oriented pricing objective?

Correct AnswerverifiedE

A target return objective and a profit maximization objective are both profit-oriented objectives.

Correct AnswerverifiedShow Answer

When a firm sells through intermediaries, there is little reason to try to administer the price intermediaries charge final consumers.

Correct AnswerverifiedShow Answer

Godiva, a maker of expensive European chocolates, does not mention price in its magazine advertising. Instead, the ad copy mentions the quality of the ingredients, the fine packaging, and the luxurious boutiques where Godiva chocolates are sold. Godiva seems to be pursuing a pricing objective of:

Correct AnswerverifiedShow Answer

Target return pricing objectives:

Correct AnswerverifiedShow Answer

Regarding pricing objectives, a good marketing manager knows that:

Correct AnswerverifiedShow Answer

Which of the following statements about rebates is True?

Correct AnswerverifiedE

If a producer's marketing manager doesn't know the shape of the demand curve for a new product, the initial price level policy should probably be a(an) ______________ policy.

Correct AnswerverifiedShow Answer

A target return pricing objective has administrative advantages in a large company where there are many divisions to compare.

Correct AnswerverifiedShow Answer

Ceramics Distributing Co. wants to keep its inventory low. Which of the following would be LEAST likely to encourage customers to take over more responsibility for the storage function?

Correct AnswerverifiedShow Answer

A skimming pricing policy tries to sell to customers who are at the top of the demand curve first, before aiming for more price sensitive customers.

Correct AnswerverifiedShow Answer

The term "3/10, net 30" means that thirty percent of the face value of the invoice is due immediately, and that the rest must be paid within 30 days.

Correct AnswerverifiedShow Answer

Which of the following is a SALES-ORIENTED pricing objective?

Correct AnswerverifiedShow Answer

Cumulative quantity discounts encourage repeat buying from the same seller, while noncumulative quantity discounts encourage large individual orders.

Correct AnswerverifiedShow Answer

Noncumulative quantity discounts are intended to encourage customers to make more of their on-going purchases from the same seller.

Correct AnswerverifiedShow Answer

Uniform delivered pricing is most commonly used when transportation costs are relatively low.

Correct AnswerverifiedShow Answer

"Push money" is most likely to be offered to:

Correct AnswerverifiedShow Answer

_____ is what a customer must give up to get the benefits offered by the rest of a firm's marketing mix.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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True

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E

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E

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