Businesses that come under government control often set a target return of profit because they

May be investigated if they earn high profits

Which of the following is true of a business's pricing objectives?

They must be adjusted from time to time

Selling price helps customers to allocate their money because price determines

what customers can afford to purchase

Most marketers feel that it is a good strategy to price their products according to the

way their customers view the products

Which of the following is a true statement

There are many kinds of selling prices for goods & services

Why is obtaining, maintaining, or increasing market share important to a business?

Market share is a measure of the success of the business

A business that uses sales-oriented pricing objectives wants to increase the

total amount of its income from sales

Which of the following is prohibited by government regulation?

Businesses that offer premiums without explaining the terms

The majority of businesses that use profit-oriented pricing want to

earn a reasonable amount of profit

If a producer priced its products much lower than others, is it possible to lose customers?

Yes, the price can be low that producer cant preform duties

True or False? There is no connection between a firm's marketing objectives and it's pricing

False pricing should be used to achieve marketing objectives

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PI 003 Posttest Review

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A Review for Posttest PI 003

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Questions 23

Answers

1
Which of the following factors related to a business's objectives and strategies affect it's
Fixed costs
Channel members
Product mix
Supply
2
Businesses that come under government control often set a target return of profit because they
May be investigated if they earn high profits
need to earn very high profits
are not allowed to earn a reasonable profit
must abide by unfair trade practices
3
Which of the following is true of a business's pricing objectives?
They are chosen for the life of the business
They must be changed each fiscal year
They must be adjusted from time to time
They are not affected be changing circumstances
4
Why is it important for businesses to recover their costs?
So that they can avoid government regulation
So that they can maximize their losses
So they can stay in business
So that they can pay lower taxes
5
What happens over time when demand for a product goes up?
Producers make more of it
The supply decreases
Customers can't afford to buy it
The selling price goes up
6
Selling price helps customers to allocate their money because price determines
what customers can afford to purchase
the quality of all goods and services
what customers need to purchase
the value of products to all purchasers
7
In which of the following forms of competition are no substitutes readily available?
Oligopoly
Pure competition
Pure monopoly
Monopolistic competition
8
Most marketers feel that it is a good strategy to price their products according to the
way their customers view the products
manufacturer's list price
agreements set with other channel members
sales of loss leaders
9
Which of the following is a true statement
Selling Prices are easy for businesses to determine
Only certain type of products have selling prices
There are many kinds of selling prices for goods & services
Selling prices for products always remain the same over time
10
A business that sets its prices lower than those of competitors won't make a profit unless it
reduces its inventory
increases promotion
enlarges its staff
controls its costs
11
The selling prices of products helps customers to
make buying decisions
spend freely
find a company's fixed costs
determine the amount of markup
12
Why is obtaining, maintaining, or increasing market share important to a business?
Customers are interested in a firm's market share
A large market share ensures large profits
Market share is a measure of the success of the business
Market share must constantly go up for a business to succeed
13
Which of the following must a business accomplish through selling price?
Maintain market share
Pay all product costs
Acquire start-up capital
Company valuation
14
A business that uses sales-oriented pricing objectives wants to increase the
cost of its marketing efforts
amount of promotion it uses
total amount of its income from sales
inefficiency of its human resources
15
Erica wants to buy Marco's used iPod. He is asking her to pay him $100 for it. $100 is the?
Cost of goods
Cash Flow
Selling Price
Profit
16
This has many buyers and sellers of nearly identical products with little control of pricing
Monopoly
Monopolistic competition
Pure competition
Oligopoly
17
Which of the following is prohibited by government regulation?
Businesses that charge the same price to similar customers
Businesses that offer premiums without explaining the terms
Businesses that avoid agreeing on price range for a product
Businesses that show the price per unit along w/ total price
18
In what type of market do companies compete by making their products different?
Monopoly
Pure Competition
Oligopoly
Monopolistic competition
19
It costs a publishing company $8 to produce a book. Each book sells for $9.99. The $1.99 is
elasticity
capital
markup
demand
20
Ups and downs in economic activity are known as
recessions
profit cycles
business cycles
growth periods
21
The majority of businesses that use profit-oriented pricing want to
reduce their return on investment
earn a reasonable amount of profit
make as much profit as possible
22
If a producer priced its products much lower than others, is it possible to lose customers?
No, customers will buy the lowest price
Yes, channel members avoid buying from the lowest priced
No channel members don't change vendors when its a low price
Yes, the price can be low that producer cant preform duties
23
True or False? There is no connection between a firm's marketing objectives and it's pricing
False pricing should be used to achieve marketing objectives
False, marketing objectives are based on pricing objectives
True, some businesses do not even need marketing objectives
True, marketing and pricing are independent of each other

PI 003 Posttest Review Flashcards | StudBud