1|Page
GB 350 Final Exam from the University of Mississippi
(Ole Miss) with Professor Casico|| VERIFIED
EXAM||LATEST EXAM!!!
Washer/dryer manufactures often offer three-year
warranties to customers for additional price. John does not
think that he needs a warranty just because he's buying a
new washer and dryer. In john's opinion, the washer/dryer
combo and the warranty have a _____ relationship. -
answer-neutral
Mary is purchasing a new washer and dryer at a retailer.
Once she has chosen her washer/dryer combo, the
salesperson tells her that is always a good idea to
purchase a warranty at an additional charge. The warranty
will cover any repairs to the washer/dryer combo for three
years. What type of relationship is a salesperson trying to
create between the washer/dryer combo and the
warranty? - answer-complementary
. Refined inc. Just developed a new dining room table that
hangs from the ceiling instead of standing on four legs. It
costs refined $800 to produce each table, and the
company would like to make a profit by charging $1000
market price. However, refined realizes that most
consumers are not familiar with hanging dining room
tables, and probably would be willing to pay $1000 for it.
Therefore, refined enters the dining room table market
,2|Page
with its hanging tables price at $750/per table, willing to
take an early loss with the hopes of getting customers to
purchase and use the product. What type of pricing
strategy is refind using when it enters the market? -
answer-penetration pricing
Marx pharmaceutical company recently received fda
approval for a new cancer-fighting drug. According to
regulations, this drug is protected by patent for seven
years, and cannot be replicated by another competitor
during that time. During those seven years, marx
pharmaceutical decides to charge very high prices for the
product in order to recover the costs it incurred to develop
and gain approval for the drug. What type of pricing
strategy is marx pharmaceutical using during the seven
years? - answer-price skimming
Jcpenney often run sales on its inventory, offering low
prices to get customers through the door. What type of
pricing objective does jcpenney operate under? - answer-
sales-oriented pricing objective
Jackfrost makes premium quality riding lawnmowers and
has traditionally charged a high price for them to its retailer
customers. Recently, jim freeze has entered the market
with an expensive lawnmower, and retailers have started
,3|Page
considering freeze mowers instead of frost mowers.
Concerned about keeping his market share, jack
drastically lowers the price of his lawnmowers, and jim
freeze leaves the market because he cannot compete.
Once jim is out of the market, jack increases his
lawnmower prices back to where they were. What illegal
practice could jack be accused of? - answer-predatory
pricing
Unfair trade practices act requires a mandatory markup on
products that retailers and wholesalers sell. These
markups are _____ regulations. - answer-legal?
Allyn's office supplies is a manufacturer of mechanical
pencils and file folders. Allyn sells mechanical pencils to
walmart at a 20% markup. One week later, allyn sells file
folders to miller's local store at an 80% markup. What
illegal act could allyn be accused of? - answer-price
discrimination
Gant manufacturing has earned a reputation for producing
the most reliable widgets the southeastern united states.
Originally, gant sold its products directly to consumers
through its website and phone orders. However, gant
quickly realized that it would be more efficient to sell its
products retailers, who would then sell the widgets to
, 4|Page
consumers. For gant, these retailers offer _____ utility. -
answer-exchange
Jamie's discount retailer is trying to compete with walmart
by offering a price matching guarantee to its customers.
Basically, if a customer purchases a product from jamie's
and finds it is offered a lower price on the walmart's shelf,
that customer can bring a picture of the walmart price and
get a refund for the difference. Under what type of pricing
objective category is jamie's operating? - answer-status-
quo pricing objective
Apple just introduced the "ipacemaker" to the medical
equipment industry. Financial analysis has deemed this is
a risky move for the $1 billion company who traditionally
focuses on making products for tech savvy consumers.
What strategy does this describe? - answer-diversification
The walt disney company hosts a website called the
"disney parks mom panel" for parents who have questions
about the different offerings of the disney company.
Members of the mom panel are experienced disney
customers who answer questions from site visitors in order
to give them relevant information from a parental point of
view, and provide a community atmosphere so visitors can
become more involved with the disney brand, overall.
GB 350 Final Exam from the University of Mississippi
(Ole Miss) with Professor Casico|| VERIFIED
EXAM||LATEST EXAM!!!
Washer/dryer manufactures often offer three-year
warranties to customers for additional price. John does not
think that he needs a warranty just because he's buying a
new washer and dryer. In john's opinion, the washer/dryer
combo and the warranty have a _____ relationship. -
answer-neutral
Mary is purchasing a new washer and dryer at a retailer.
Once she has chosen her washer/dryer combo, the
salesperson tells her that is always a good idea to
purchase a warranty at an additional charge. The warranty
will cover any repairs to the washer/dryer combo for three
years. What type of relationship is a salesperson trying to
create between the washer/dryer combo and the
warranty? - answer-complementary
. Refined inc. Just developed a new dining room table that
hangs from the ceiling instead of standing on four legs. It
costs refined $800 to produce each table, and the
company would like to make a profit by charging $1000
market price. However, refined realizes that most
consumers are not familiar with hanging dining room
tables, and probably would be willing to pay $1000 for it.
Therefore, refined enters the dining room table market
,2|Page
with its hanging tables price at $750/per table, willing to
take an early loss with the hopes of getting customers to
purchase and use the product. What type of pricing
strategy is refind using when it enters the market? -
answer-penetration pricing
Marx pharmaceutical company recently received fda
approval for a new cancer-fighting drug. According to
regulations, this drug is protected by patent for seven
years, and cannot be replicated by another competitor
during that time. During those seven years, marx
pharmaceutical decides to charge very high prices for the
product in order to recover the costs it incurred to develop
and gain approval for the drug. What type of pricing
strategy is marx pharmaceutical using during the seven
years? - answer-price skimming
Jcpenney often run sales on its inventory, offering low
prices to get customers through the door. What type of
pricing objective does jcpenney operate under? - answer-
sales-oriented pricing objective
Jackfrost makes premium quality riding lawnmowers and
has traditionally charged a high price for them to its retailer
customers. Recently, jim freeze has entered the market
with an expensive lawnmower, and retailers have started
,3|Page
considering freeze mowers instead of frost mowers.
Concerned about keeping his market share, jack
drastically lowers the price of his lawnmowers, and jim
freeze leaves the market because he cannot compete.
Once jim is out of the market, jack increases his
lawnmower prices back to where they were. What illegal
practice could jack be accused of? - answer-predatory
pricing
Unfair trade practices act requires a mandatory markup on
products that retailers and wholesalers sell. These
markups are _____ regulations. - answer-legal?
Allyn's office supplies is a manufacturer of mechanical
pencils and file folders. Allyn sells mechanical pencils to
walmart at a 20% markup. One week later, allyn sells file
folders to miller's local store at an 80% markup. What
illegal act could allyn be accused of? - answer-price
discrimination
Gant manufacturing has earned a reputation for producing
the most reliable widgets the southeastern united states.
Originally, gant sold its products directly to consumers
through its website and phone orders. However, gant
quickly realized that it would be more efficient to sell its
products retailers, who would then sell the widgets to
, 4|Page
consumers. For gant, these retailers offer _____ utility. -
answer-exchange
Jamie's discount retailer is trying to compete with walmart
by offering a price matching guarantee to its customers.
Basically, if a customer purchases a product from jamie's
and finds it is offered a lower price on the walmart's shelf,
that customer can bring a picture of the walmart price and
get a refund for the difference. Under what type of pricing
objective category is jamie's operating? - answer-status-
quo pricing objective
Apple just introduced the "ipacemaker" to the medical
equipment industry. Financial analysis has deemed this is
a risky move for the $1 billion company who traditionally
focuses on making products for tech savvy consumers.
What strategy does this describe? - answer-diversification
The walt disney company hosts a website called the
"disney parks mom panel" for parents who have questions
about the different offerings of the disney company.
Members of the mom panel are experienced disney
customers who answer questions from site visitors in order
to give them relevant information from a parental point of
view, and provide a community atmosphere so visitors can
become more involved with the disney brand, overall.
