MKTG 409 Module 6 Chapter 12 Assignment MindTap Study Guide – Marketing Channels,
Distribution & Supply Chain Review
Apple has long promoted the style, design, and quality of its products and has become very
successful because many consumers consider these characteristics desirable. Apple can best be
described as operating in an environment of _______. - ANS ✔✔nonprice competition
If Peloton seeks to lead the electronics industry in innovation, what type of pricing objective will
it most likely adopt? - ANS ✔✔Product quality
Artemis Inc. has a pricing objective to increase its primary product's sales relative to total
industry sales. This is best described as a _______. - ANS ✔✔market share objective
Daniel always has to purchase popcorn whenever he goes to the movies. Popcorn is typically
marked up 1,275 percent. However, Daniel is willing to pay this price. For Daniel the _______ is
influencing his view of price. - ANS ✔✔purchase situation
Miguel is setting prices for new couches. The couch he is currently looking at is higher quality
and expected to last longer than a traditional couch. Miguel expects to set the price of the
couch high because he knows that consumers anticipate paying more for longer-lasting
products. What stage of the pricing process is Miguel currently at? - ANS ✔✔Assessing the
target market's evaluation of price
ACE Corp.'s products have elastic demand. If ACE raises the price of products, what will be the
result? - ANS ✔✔A decrease in total revenue
Juan thinks he has reached the point where he has maximized his profit. However, because this
can be tricky to determine, he is not sure. He decides to test it by selling one more unit. If Juan
is correct in his assumption, what should happen when he sells this additional unit? - ANS
✔✔Marginal cost will exceed marginal revenue.
, Camila is undergoing the eight-step process for establishing prices for a newly launched
product. She has just finished assessing the target market's evaluation of possible prices. What
is Camila's next step? - ANS ✔✔Evaluation of competitors' prices
Lexi operates a service business that engages in systematically collecting data on brands and
prices at competitors' stores for her business customers. For which stage of the price
establishment process would this service be most appropriate? - ANS ✔✔Evaluating
competitors' prices
Lin is attempting to price a piece of custom-made equipment for a gym. The production costs of
the equipment are hard to assess. She decides it would just be easier to add a specified dollar
amount to the total cost. What type of pricing is Lin using? - ANS ✔✔Cost-plus
Firefly Space Shuttles is using a strategy of maximizing revenues by making numerous price
changes in response to demand, competitors' prices, or environmental conditions. This is best
described as _______. - ANS ✔✔yield management
LEGOLAND is implementing a new type of pricing. When demand increases and more customers
visit the parks, the price will increase. When demand dips during the slow season, prices will
decrease. This is a way to help balance out supply and demand. What is another name for the
type of pricing that LEGOLAND is using? - ANS ✔✔Dynamic pricing
Felipe goes to a Toyota dealership looking for a new car. He finds a Toyota Corolla he really likes.
The time has come to meet with the salesperson. What type of pricing strategy is the
salesperson likely to adopt with Felipe? - ANS ✔✔Negotiated pricing
Danny has a dilemma. He works for a chocolate company and the price of chocolate is going up.
The most logical solution would be to raise the price. However, Danny knows from his history in
the business that their loyal customers would not look favorably on a price increase. For
customers, candy bars are one of those items where the price rarely changes. Danny's firm has
sold its candy bars for $0.99 for the past two decades. Danny feels that the next best solution to
absorbing the extra costs is to make the candy bars slightly smaller without lowering the price.
Distribution & Supply Chain Review
Apple has long promoted the style, design, and quality of its products and has become very
successful because many consumers consider these characteristics desirable. Apple can best be
described as operating in an environment of _______. - ANS ✔✔nonprice competition
If Peloton seeks to lead the electronics industry in innovation, what type of pricing objective will
it most likely adopt? - ANS ✔✔Product quality
Artemis Inc. has a pricing objective to increase its primary product's sales relative to total
industry sales. This is best described as a _______. - ANS ✔✔market share objective
Daniel always has to purchase popcorn whenever he goes to the movies. Popcorn is typically
marked up 1,275 percent. However, Daniel is willing to pay this price. For Daniel the _______ is
influencing his view of price. - ANS ✔✔purchase situation
Miguel is setting prices for new couches. The couch he is currently looking at is higher quality
and expected to last longer than a traditional couch. Miguel expects to set the price of the
couch high because he knows that consumers anticipate paying more for longer-lasting
products. What stage of the pricing process is Miguel currently at? - ANS ✔✔Assessing the
target market's evaluation of price
ACE Corp.'s products have elastic demand. If ACE raises the price of products, what will be the
result? - ANS ✔✔A decrease in total revenue
Juan thinks he has reached the point where he has maximized his profit. However, because this
can be tricky to determine, he is not sure. He decides to test it by selling one more unit. If Juan
is correct in his assumption, what should happen when he sells this additional unit? - ANS
✔✔Marginal cost will exceed marginal revenue.
, Camila is undergoing the eight-step process for establishing prices for a newly launched
product. She has just finished assessing the target market's evaluation of possible prices. What
is Camila's next step? - ANS ✔✔Evaluation of competitors' prices
Lexi operates a service business that engages in systematically collecting data on brands and
prices at competitors' stores for her business customers. For which stage of the price
establishment process would this service be most appropriate? - ANS ✔✔Evaluating
competitors' prices
Lin is attempting to price a piece of custom-made equipment for a gym. The production costs of
the equipment are hard to assess. She decides it would just be easier to add a specified dollar
amount to the total cost. What type of pricing is Lin using? - ANS ✔✔Cost-plus
Firefly Space Shuttles is using a strategy of maximizing revenues by making numerous price
changes in response to demand, competitors' prices, or environmental conditions. This is best
described as _______. - ANS ✔✔yield management
LEGOLAND is implementing a new type of pricing. When demand increases and more customers
visit the parks, the price will increase. When demand dips during the slow season, prices will
decrease. This is a way to help balance out supply and demand. What is another name for the
type of pricing that LEGOLAND is using? - ANS ✔✔Dynamic pricing
Felipe goes to a Toyota dealership looking for a new car. He finds a Toyota Corolla he really likes.
The time has come to meet with the salesperson. What type of pricing strategy is the
salesperson likely to adopt with Felipe? - ANS ✔✔Negotiated pricing
Danny has a dilemma. He works for a chocolate company and the price of chocolate is going up.
The most logical solution would be to raise the price. However, Danny knows from his history in
the business that their loyal customers would not look favorably on a price increase. For
customers, candy bars are one of those items where the price rarely changes. Danny's firm has
sold its candy bars for $0.99 for the past two decades. Danny feels that the next best solution to
absorbing the extra costs is to make the candy bars slightly smaller without lowering the price.
