MKTG 350 EXAM 3 QUESTIONS WITH
100% CORRECT ANSWERS
The fundamental philosophy behind ________ is to reduce investment in promotion and
transfer part of the savings to lower price.
A. reverse auctions
B. target return on investment pricing
C. everyday low pricing
D. variable pricing - Answer- everyday low pricing
HP sells an inexpensive printer for an entry-level user, but the printer cartridges that
need continual replacement are fairly expensive. This demonstrates the concept of
___________.
A. product line pricing
B. captive pricing
C. prestige pricing
D. reference pricing - Answer- captive pricing
Jameson purchased an alarm system for his car during a promotion. He considered the
price after the promotion to be very attractive. However, he later learned that the firm
set an artificially high reference price for the alarm system just before the promotion to
make the advertised sale price more attractive. Jameson just experienced ________.
A. predatory pricing
B. bait and switch
C. deceptive pricing
D. price discrimination - Answer- deceptive pricing
________ could result in overall higher prices for consumers since various competitors
are all pricing the same to maximize their profits.
A. Price-fixing
B. Predatory pricing
C. Reference pricing
D. Price discrimination - Answer- Price-fixing
________ require that a certain percentage markup be applied to all products.
A. Criminal laws
B. Minimum markup laws
C. Fair trade laws
D. Partnership laws - Answer- Minimum markup laws
, _______ refers to products sold at prices below cost to attract shoppers to a store.
A. Loss leader
B. Prestige
C. Free on board (FOB)
D. Price bundling - Answer- Loss leader
Price wars occur when a company sells a product for one price in a particular
geographic region and a different price in another geographic region.
A. True
B. False - Answer- False
The probability of a product's success is determined in the ________ stage of the
product development process.
A. business case analysis
B. marketing plan
C. idea generation
D. product roll-out - Answer- business case analysis
In the context of criteria used to prioritize product ideas, time to market refers to the time
taken to ________.
A. create awareness about a product among new market segments
B. analyze market conditions to forecast sales
C. get the product through the introduction stage to the growth stage
D. develop and get the product to market - Answer- develop and get the product to
market
Golf ball manufacturers use "Iron Mike," a machine that swings a golf club at a constant
velocity, to test the distance for new golf ball designs. When using Iron Mike, the
manufacturers are engaged in
A. market testing.
B. premarket testing.
C. concept testing.
D. alpha testing - Answer- alpha testing
Estimating total demand is a function of three separate purchase situations, which are
________ purchases.
A. new, impulse, and replacement
B. new, repeat, and impulse
C. new, repeat, and replacement
D. new, ideal, and impulse - Answer- new, repeat, and replacement
100% CORRECT ANSWERS
The fundamental philosophy behind ________ is to reduce investment in promotion and
transfer part of the savings to lower price.
A. reverse auctions
B. target return on investment pricing
C. everyday low pricing
D. variable pricing - Answer- everyday low pricing
HP sells an inexpensive printer for an entry-level user, but the printer cartridges that
need continual replacement are fairly expensive. This demonstrates the concept of
___________.
A. product line pricing
B. captive pricing
C. prestige pricing
D. reference pricing - Answer- captive pricing
Jameson purchased an alarm system for his car during a promotion. He considered the
price after the promotion to be very attractive. However, he later learned that the firm
set an artificially high reference price for the alarm system just before the promotion to
make the advertised sale price more attractive. Jameson just experienced ________.
A. predatory pricing
B. bait and switch
C. deceptive pricing
D. price discrimination - Answer- deceptive pricing
________ could result in overall higher prices for consumers since various competitors
are all pricing the same to maximize their profits.
A. Price-fixing
B. Predatory pricing
C. Reference pricing
D. Price discrimination - Answer- Price-fixing
________ require that a certain percentage markup be applied to all products.
A. Criminal laws
B. Minimum markup laws
C. Fair trade laws
D. Partnership laws - Answer- Minimum markup laws
, _______ refers to products sold at prices below cost to attract shoppers to a store.
A. Loss leader
B. Prestige
C. Free on board (FOB)
D. Price bundling - Answer- Loss leader
Price wars occur when a company sells a product for one price in a particular
geographic region and a different price in another geographic region.
A. True
B. False - Answer- False
The probability of a product's success is determined in the ________ stage of the
product development process.
A. business case analysis
B. marketing plan
C. idea generation
D. product roll-out - Answer- business case analysis
In the context of criteria used to prioritize product ideas, time to market refers to the time
taken to ________.
A. create awareness about a product among new market segments
B. analyze market conditions to forecast sales
C. get the product through the introduction stage to the growth stage
D. develop and get the product to market - Answer- develop and get the product to
market
Golf ball manufacturers use "Iron Mike," a machine that swings a golf club at a constant
velocity, to test the distance for new golf ball designs. When using Iron Mike, the
manufacturers are engaged in
A. market testing.
B. premarket testing.
C. concept testing.
D. alpha testing - Answer- alpha testing
Estimating total demand is a function of three separate purchase situations, which are
________ purchases.
A. new, impulse, and replacement
B. new, repeat, and impulse
C. new, repeat, and replacement
D. new, ideal, and impulse - Answer- new, repeat, and replacement
