NEW Marketing 3.06 Question Preview (ID: 21940)
3.06.
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Companies 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?
a) Gray markets
b) Loss-leader pricing
c) Bait-and-switch
d) Price fixing
What is an external factor that affects the price that a business charges for its products?
a) Operating costs
b) Economic conditions
c) Employee benefits
d) Variable expenses
What pricing tactic might be considered questionable by some businesses?
a) Marking up prices to earn a profit
b) Providing a reference price
c) Matching the prices of a competitor
d) Developing a complex pricing structure
Wal-Mart and Sears attract two different types of customers because of their pricing strategies. They have established their prices based on __________ decisions.
a) profit
b) place
c) promotional
d) customer
How does technology help businesses when it enables them to obtain and analyze vast amounts of information that impact the pricing function?
a) By determining the best time to adjust prices
b) By calculating the cost of hiring more employees
c) By generating profit-and-loss statements
d) By deciding how much to spend on advertising
One way that many businesses use technology to reduce the costs associated with marking prices on products is by using
a) computer-generated tags.
b) automated inventory systems
c) electronic scanning devices.
d) preprinted gummed labels.
A 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?
a) Regulated pricing
b) Price competition
c) Price discrimination
d) Controlled pricing
Technology allows manufacturers to pre-print product packaging with Universal Product Codes (UPCs) which contain __________ information.
a) operating
b) pricing
c) selling
d) sampling
Charging premium prices for lumber to hurricane victims because supply is limited is
a) unethical and illegal.
b) ethical and legal.
c) ethical and illegal.
d) unethical and legal.
What 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?
a) Odd-cents pricing
b) Flexible pricing
c) Below-cost pricing
d) High-level pricing
Which of the following factors should businesses consider when establishing a product's selling price
a) Pricing agreements
b) Trade practices
c) Economic conditions
d) Unfair sales laws
Why do some new companies set their selling prices as low as they can?
a) To earn a high return on investment
b) To quickly make a large profit
c) To eliminate all possible competition
d) To get market share as fast as possible
Which of the following is an example of an ethical issue as it relates to predatory pricing:
a) An international book publisher sells similar products to similar customers at different prices
b) A local ice-cream shop prices menu items below cost in an effort to eliminate its competition.
c) A tire producer introduces a new item to its product line and sets the initial price very low
d) A salesperson encourages a customer to purchase an extended vehicle warranty for a new car.
What is the advantage to a business of using bar-code pricing?
a) Easier to change prices
b) Reduces number of employees needed for sales
c) Easier for customers to read
d) Reduces required business security
What is an example of an unethical pricing practice?
a) A business increases its prices when the cost of the materials to make the products increases.
b) A firm sets a business objective to increase its profit margins over the next five years.
c) A business prices a new product line to reflect high quality and status.
d) A company prices its products low in an attempt to drive its competitors out of business.
What costs do businesses usually include in the price of their products?
a) Regulations
b) Transportation
c) Orientation
d) Inflation
What might happen if a business's customers feel that they are not getting the most value for their money?
a) Customers spend money elsewhere
b) Customers purchase more
c) Sales remain the same.
d) Sales increase.
The 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?
a) Federal Trade Commission Act
b) Clayton Act
c) Sherman Antitrust Act
d) Robinson-Patman Act
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