MBA 565 Module 6 Quiz 5

Subject: Business    / Marketing
1.A firm first decides where it wants to position its market offering. A company can pursue any of five major objectives through pricing. Which of the following is NOT one of these objectives? (Points : 5)
Predatory pricing
Maximum current profit
Maximum market share
Product-quality leadership

2.The question regarding the various channel functions is not whether or not they need to be performed but who is to perform them. All channel functions have three things in common. Which of the following is NOT one of these channel functions? (Points : 5)
They use up scarce resources.
They can often be performed better through specialization.
They can be shifted among channel members.
They require substantial investments by the producer.
None of the above

3.At some stock level point, management must reorder product to refill the inventory to an acceptable level. This point is called the ________. (Points : 5)
order (reorder) point
minimum inventory level
inventory carrying costs
none of the above

4.Executives often complain that pricing is a big headache. Common mistakes include: price is not revised often enough to capitalize on market changes; price is set ________ of the rest of the marketing mix rather than an intrinsic element of a market-positioning strategy. (Points : 5)
too high

5.A ________ strategy creates consumer demand through promotions and advertising as a way to induce intermediaries to carry the product. (Points : 5)
none of the above

6.The concept of the lowest ________ means that a seller can charge a higher price if they can convince the customers that price is only a small part of the total cost of obtaining, operating, and servicing the product over its lifetime. (Points : 5)
prestige pricing
total cost of ownership
convenience pricing
key price points
none of the above

7.With ________, the company does not need to worry about too many outlets; it can gain adequate market coverage with more control and less cost that intensive distribution. (Points : 5)
selective distribution
normal distribution
extensive distribution
random distribution
exclusive distribution

8.For price discrimination to work ________. (Points : 5)
the market must be segmentable and the segments must show similar intensities of demand
members in the lower-price segment must be able to resell the product to the higher-price segment
competitors must be able to undersell the firm in the higher-price segment
the practice must not breed customer resentment and ill will
the extra revenue derived from price discrimination must not exceed the cost of segmenting and policing the market

9.Auction-type pricing is becoming very popular due to the Internet. The three types of auction pricing include sealed-bid auctions, descending bids auctions, and ________. (Points : 5)
EDLP auctions
ascending bid auctions
high-low bid auctions
going-rate bidding auctions
value pricing auctions

10.Major retailer types include the following EXCEPT ________. (Points : 5)
specialty store
discount store
catalog showroom
the Internet

11.________ is an effort by one organization to win the support of the leaders of another organization by including them in advisory councils, board of directors, and the like. (Points : 5)
Superordinate goals

12.________ is the cornerstone of all discount operations. (Points : 5)
Limited service
Full service
Custom service

13.Price elasticity depends on the magnitude and direction of the price change. If may differ for a price cut versus a price increase. When the price changes have little or no effect, there might exist a ________ for your product. (Points : 5)
selective price
price indifference band
substitute product
promotional price
collective price

14.________ measures a product’s handling costs from the time the product reaches the warehouse until a customer buys it in the retail store. (Points : 5)
Brand management
Shelf management
Profitability analysis
Direct product profitability analysis
Direct product performance analysis

15.By granting ________, the producer hopes to obtain more dedicated and knowledgeable selling. (Points : 5)
selective distribution
intensive distribution
extensive distribution
random distribution
exclusive distribution

16.________ warehouses store goods for moderate to long periods of time. (Points : 5)

17.________ are existing companies that have added an online site for information and/or e-commerce. (Points : 5)
Store locations
Brick-and-click firms
Brick-and-mortar firms
Pure-click firms
None of the above

18.Varying prices by time of the day, the season of the year, or the day of the week is called ________. (Points : 5)
time pricing
price discrimination
product-form pricing
channel pricing

19.A ________ is a storeless retailer serving a specific clientele-usually employees of large organizations-who are authorized to buy from a list of retailers that have agreed to give discounts in return for inclusion on the list. (Points : 5)
direct-selling vendor
direct marketing vendor
buying service
automatic vendor
corporate retailer

20.________ consist of the sum of the fixed and variable costs for any given level of production. (Points : 5)
Total costs
Manufacturing costs
Delivery costs
Fixed costs
Variable costs