Multiple choice questions:
1. Which of the following is NOT a likely result of a business failing to follow an appropriate price strategy?
The business loses its competitive edge.
The business brings products to market but cannot attract sufficient buyers.
The business generates insufficient revenue to cover costs of production.
The business switches from a fixed price to a variable price strategy.
Question 2.2. Which example BEST illustrates the Law of Supply and Demand?
As the price of corn syrup increases, cereal manufacturers raise their prices.
As the price of gas increases, drivers find ways to use their vehicles less.
As the price of clothing increases, shoppers increasingly use coupon promotions.
As the interest rate on bank deposits falls, consumers use credit cards more.
Question 3.3. The term that BEST describes the supply chain from the perspective of customers seeking solutions to problems is
Supply chain management.
Customer value equation.
Demand chain.
Reverse logistics.
Question 4.4. When price sensitivity differs among customers in different market segments, which type of pricing strategy gains in importance?
Modified pricing strategy
Variable pricing strategy
Differing price variables
Short-term variability
Question 5.5. In what quadrant of the POES model of message channels does a "company blog" belong?
Owned
Earned
Shared
Paid
Question 6.6. Which of the following represents the BEST response to the increasingly complex task of establishing effective pricing strategies?
Opting for a fixed price strategy in order to avoid complexity.
Foregoing the use of sales promotions to avoid angering customers who pay full price.
Tracking the effectiveness of strategies currently in use.
Using high-low pricing to strategically raise consumers' reference price expectations.
Question 7.7. What condition is a variable price strategy required to meet in order to avoid being classified as price discrimination, prohibited by federal law in the U.S.A.?
Goods or services of identical grade or quality must be offered to all buyers at the same price.
Prices for like goods or services offered at different price points to different buyers must be open to negotiation (i.e. haggling).
Tiered pricing plans must represent identical levels of service across all buyers regardless of tier.
Volume maximization, rather than profit maximization, must be the goal of the variable pricing strategy.
Question 8.8. When an intermediary in the distribution channel takes ownership of items, what is the impact on others in the supply chain?
Other supply chain partners must undertake value-adding activities to convert inputs to outputs.
The channel partner selling the items must generate transaction records, such as invoices and packing slips.
The channel partner taking ownership must generate demand through retailer supports, such as product display materials.
Other channel partners competing for that sale must create incentives to stimulate retail demand.
Question 9.9. Which statement BEST describes the strategic objective of volume maximization?
To generate as much profit (revenue) as possible in the near term.
To generate as much sales volume as possible over time.
To generate as much sales volume as possible in the near term.
To generate as much profit as possible over the life of an offering.
Question 10.10. Four factors influence strategic planning for pricing decisions. Which list contains all four factors discussed in chapter 5?
Target market, competition, differentiation, and environment
Environment, target market, costs, and differentiation
Environment, target market, differentiation, and pricing strategy
Costs, environment, target market, and value proposition