BUSI 330 Quiz 4

BUSI 330 Quiz 4 Liberty University

1. All of the following are true about a skimming pricing strategy when used during the introduction stage of the product life cycle except which?
2. In which stage of the product life cycle do marginal competitors begin to leave the market?
3. The challenges of packaging and labeling are often global. One particular challenge facing global manufacturers involves
4. Figure 10-1 above represents the stages of the product life cycle. What does the curve labeled Y represent?
5. Mattel has a contractual agreement to let Colgate use the Barbie name and image on kids’ toothpaste and toothbrushes. Colgate pays Mattel a fee for the use of the Barbie name and image. This is an example of
6. A branding strategy in which a company uses one name for all its products in a product class is referred to as
7. According to the concept of the diffusion of innovation, consumers who are skeptical and with below average social status are called
8. The stage of the product life cycle occurs when a product is launched to its intended target market.
9. Thirty years ago, the Mississippi Gulf Coast was a nice place to vacation with a white sandy beach, golfing opportunities, resort hotels, and good seafood restaurants. With the addition of casinos, the Gulf Coast improved its odds of being a tourist destination for more travelers. This is an example of a
10. Customers will often judge the of the service experience based on the performance of the people providing the service.
11. A common pricing tactic today is the use of special fees and surcharges that add to a list price, a response to consumers’ zeal for combined with the ease of making price comparisons on the Internet.
12. Figure 11-2 above represents the four approaches to selecting an appropriate price level. Box B includes standard markup and cost-plus so it represents which approach?
13. In some cases, penetration pricing may follow skimming pricing. The skimming pricing would help and the penetration pricing would help
14. Suppose you are the owner of a picture frame store. Assume that the average price customers are willing to pay for each picture frame is $120. Also, suppose your fixed costs (FC) total $32,000 (real estate taxes, interest on a bank loan, etc.) and unit variable cost (UVC) for a picture frame is $40 (labor, glass, frame, and matting). According to Figure 11-7a above, how much profit will your picture frame store make if it sells 400 picture frames?
15. Delta Air Lines offers vacation packages that include airfare, car rental, and lodging. Delta is using a(n) pricing strategy.
16. A hardware store advertises a 3/8″ Black and Decker Power Drill for $29.95. You enter the store intending to purchase the drill. The salesperson informs you that they are all sold out. She tells you that the sale drills were factory seconds and that if you are going to be doing any kind of serious woodworking, you should buy the Model 3309, which sells for $49.99. This scenario has elements of which type of illegal pricing practice?
17. The ratio of to price is referred to as value.
18. Setting prices a few dollars or cents under an even number is referred to as
19. Cost-plus pricing refers to
20. Three pricing objectives relate to a firm’s profit. In one known as , a company gives up immediate profit in exchange for achieving a higher market share in the hopes of penetrating competitive markets.
21. Dual distribution refers to
22. All of the following sources produce channel conflict except which?
23. Conflict occurring between intermediaries at the same level in a marketing channel, such as between two or more retailers that carry the same manufacturer’s brands, is referred to as
24. At Saks Fifth Avenue, point-of-sale scanner technology records each day’s sales. When stock falls below a minimum level, a replenishment order is automatically produced. Vendors such as DKNY receive the order, which is processed and delivered within 48 hours. This system has effectively reduced
25. Pharmaceutical companies sell some of their products to hospitals and clinics directly. They also market other products to large retail chains such as Walgreens that distribute them to their stores across the nation. In addition, they sell products to drug wholesalers that sell to the remaining independent drugstores in the United States. What method of distribution best describes the method used by pharmaceutical companies in this example?
26. Extending credit to customers is an example of a
27. Many retailers who sell Campbell Soup products make purchases from Campbell under vendor-managed inventory programs. These retailers
28. American Hospital Supply helps its customers (hospitals) manage inventory and streamline order processing for hundreds of medical supplies. The source of American Hospital Supply’s power is its
29. Exclusive distribution refers to
30. Figure 12-9 indicates that supply chain managers must balance total logistics cost factors against customer service factors. The four customer service factors (W, X, Y, and Z) include all of the following except which?