MKT 310 WEEK 10 QUIZ 8 CHAPTER 17 & 18

MKT 310 WEEK 10 QUIZ 8 CHAPTER 17 & 181) The sensitivity of consumers to price changes is measured by the ________.A) law of demandB) sales to price coefficientC) coefficient of elasticityD) price elasticity of demand2) A relatively small percentage change in the price of a computer results in large percentage changes in the number of units purchased for a retailer. The price elasticity of demand for computers can be described as ________.A) price elasticB) unitary elasticityC) price inelasticD) low3) When the price elasticity of demand is high and prices go up, total ________.A) revenues stay the sameB) revenues declineC) revenues increaseD) profits increase4) When the price elasticity of demand is unitary and prices go down, total ________.A) revenues stay the sameB) revenues declineC) revenues increaseD) profits increase5) Price elasticity of demand is negative since ________.A) consumers are generally price consciousB) quantities sold decline as prices increaseC) there are few status-oriented consumersD) most retailers use markup pricing6) Horizontal price fixing involves an agreement ________.A) to charge retail firms lower prices in areas with an undesirable competitorB) by any channel member not to sell merchandise below costC) among manufacturers, among wholesalers, or among retailers to set pricesD) by retailers to charge the price level suggested by manufacturers or wholesalers7) In vertical price fixing, ________.A) channel members conspire to set retail prices at given levelsB) channel members agree not to sell merchandise below their costC) retailers have no intention of selling advertised goodsD) manufacturers or wholesalers are able to control the retail prices of their goods and services8) The intent of vertical price-fixing legislation was to protect ________.A) large retail chainsB) small manufacturersC) small, full-service retailersD) final consumers9) Manufacturers and wholesalers can legally control retail prices by ________.A) charging price-cutting retailers higher pricesB) limiting sales to interstate commerceC) using consignment sellingD) refusing to sell to price-cutting retailers10) Price-discrimination legislation is designed to limit the ability of ________.A) retailers to charge less than a manufacturer’s or wholesaler’s suggested list priceB) manufacturers and wholesalers to grant large discounts or favorable terms to large retailers when the discount could not be justified by cost savingsC) manufacturers, wholesalers, and retailers from conspiring to fix retail pricesD) manufacturers from setting artificially-low prices with the intent of destroying competition11) Price discrimination is legal under the Robinson-Patman Act when ________.A) different brand names are placed on a productB) lower prices are offered in the form of favorable purchase terms (such as credit allowances)C) a large customer threatens to cancel an order unless the seller reduces its priceD) price differences are equal to or less than a supplier’s cost savings12) In predatory pricing, large retailers attempt to destroy smaller retailers by ________.A) vertical integrationB) conspiring with manufacturers to refuse to sell to smaller retailersC) selling goods at very low prices (sometimes even below cost)D) providing free warranties with selected goods13) Retailers typically use loss leaders to ________.A) increase store trafficB) switch customers to other goods with higher profit marginsC) increase their bargaining power with select suppliersD) practice opportunistic buying14) Unit pricing laws are necessary because of ________.A) deceptive price advertising by retailersB) scanning and the Universal Product CodeC) item-price removal by supermarket chainsD) the presence of many different-sized packages15) Item price removal enables supermarkets to ________.A) mark prices for goods on shelves or signs and not on individual itemsB) charge the higher of two prices, if two prices are on a single packageC) sell goods for below cost if they are matching a nearby competitorD) selectively mark prices on “key” items only16) A retailer typically has no intention of selling a promoted good or service in ________.A) unit pricingB) item price removalC) price discriminationD) bait-and-switch advertising17) Which strategy does not enable a retailer to control retail prices?A) stocking private brandsB) selling gray market goodsC) selling pre-sold manufacturer brandsD) centralizing purchases with few manufacturers18) In selling against the brand, ________.A) manufacturer brands are given secondary shelf-space locationsB) retailers require slotting allowances from manufacturers for shelf spaceC) retailers disparage manufacturer brandsD) retailers charge artificially high prices on manufacturer brands in order to sell their own private labels19) In price guarantees, a manufacturer protects a retailer by ________.A) indemnifying it for any antitrust action against the firm caused by the manufacturer’s illegal actionB) refunding the difference if a retailer must lower its retail priceC) offering to sell its private-label merchandise if requiredD) refusing to sell to price-cutting retailers20) Individual retailers have no control over the setting of retail prices in ________.A) deregulated market pricingB) market pricingC) administered pricingD) government-controlled pricing21) A retailer able to develop a strongly differentiated retail mix can utilize ________.A) pricing at the marketB) pricing below the marketC) deregulated market pricingD) administered pricing22) An aggressive low-price strategy designed to sell a high volume of goods is ________.A) market skimming pricingB) market penetration pricingC) the price-quality associationD) markup pricing23) Market penetration is an appropriate strategy when ________.A) a retailer seeks to attract consumers less concerned with price and more concerned with service, assortment, and statusB) new competitors are unlikely to enter the marketC) low prices discourage actual and potential competitionD) early recovery of cash is a goal of the retailer24) The price floor represents the ________.A) highest price a consumer will payB) lowest acceptable price to a retailerC) lowest competitor’s priceD) lowest minimum price that is legal according to sales-below-cost laws25) Which of the following suggests that too low a price may hinder demand?A) bait advertisingB) sales-below-cost lawsC) prestige pricingD) predatory pricing laws26) The most widely practiced retail pricing technique is ________.A) cost-oriented pricingB) prestige pricingC) competition-oriented pricingD) demand-oriented pricing27) Markups in retailing are typically computed on the basis of ________.A) merchandise costB) merchandise cost plus freightC) retail selling priceD) retail selling price plus freight28) The difference between initial markups and maintained markups is due to ________.A) different terms offered to larger customersB) seasonal discountsC) markdowns, added markups, shortages, and discountsD) revisions in planned profits29) Direct product profitability (DPP) is an example of ________.A) a variable markup policyB) pricing at the marketC) administered pricingD) unit pricing30) Which pricing strategy seeks to stabilize demand throughout the year?A) variable pricingB) everyday low pricing (EDLP)C) one-price policyD) flexible pricing31) A retailer that seeks to alter prices to reflect fluctuations in costs or consumer demand should practice ________.A) variable pricingB) customary pricingC) a one-price policyD) price lining32) The opposite of setting prices by negotiation or bargaining is ________.A) leader pricingB) odd pricingC) customary pricingD) a one-price policy33) In which pricing technique does a retailer advertise and sell key items in the product assortment at less than the usual profit margin?A) price liningB) leader pricingC) odd pricingD) bait-and-switch advertising34) A retailer sells men’s suits for $179, $229, $309, and $359. This illustrates ________.A) price liningB) leader pricingC) odd pricingD) bait advertising35) A major advantage of an early markdown policy is that ________.A) consumer interest is heightened during storewide clearancesB) merchandise offered for sale is freshC) goods can be resold during next season without any need for a price reductionD) the retailer has greater opportunity to sell the good36) Price elasticity is ________ when the urgency for a purchase is low and the number of acceptable substitutes is high.A) inelasticB) elasticC) unitaryD) positive37) Total demand for a movie drops from 400 to 350 units when a theater operator increases the ticket price for a popular movie from $7 to $9. Price elasticity of demand (expressed as a positive number) equals ________.A) 0.125B) 0.53C) 0.67D) 2.5038) When a stationery store increases its price for a popular computer notebook from $1,000 to $1,250, its quantity demanded decreases from 400 to 250 per month. Its price elasticity of demand (expressed as a positive number) equals ________.A) 1.11B) 2.07C) 2.30D) 2.5039) A negatively-sloped demand curve means that ________.A) the price elasticity of demand is negativeB) demand is elasticC) demand is inelasticD) demand is unitary40) The difference between horizontal price fixing and vertical price fixing is based on ________.A) whether the channel members are at the same levelB) the legality of the resulting pricesC) the effect on final selling pricesD) whether collusion is involved41) Many manufacturers feel that vertical price fixing should be legal since it protects ________.A) large chain organizationsB) final consumers seeking lower pricesC) manufacturers seeking large promotional budgets for innovative productsD) a brand’s image that may be hurt from repeated price cutting by retailers42) The Robinson-Patman Act was developed to ________.A) provide lower prices to final consumersB) make price conspiracies between channel members illegalC) allow smaller retailers to receive similar prices to large retail chains that had high bargaining powerD) limit price competition among retailers43) Loss leaders are viewed as being particularly attractive by many retailers since they ________.A) generate consumer store traffic throughout the storeB) ultimately destroy small, marginal competitorsC) are legalD) are not forms of deceptive advertising according to FTC guidelines44) A key difference between a loss leader and leader pricing is based upon whether ________.A) the goods are sold above costB) bait advertising is used as part of the retailer’s strategyC) sufficient customer traffic is generatedD) competing retailers are hurt by the action45) A key difference between loss leaders and bait-and-switch advertising is based upon whether ________.A) the strategy is legalB) competitors are hurt by the offerC) the retailer intends to sell the advertised good or serviceD) ample store traffic is created by the strategy46) The key difference between bait-and-switch advertising and “trading the customer up” to a more expensive substitute is that in “trading the customer up,” the advertised low-price good ________.A) is sold below costB) is available for sale at the advertised priceC) is disparagedD) must be specially ordered47) Selling against the brand and private labels are two strategies retailers use to ________.A) increase consumer price elasticityB) create nonprice competitionC) generate price competitionD) assert channel power48) A retailer has the least control over retail price setting in ________.A) a price warB) a regulated pricing situationC) an administered pricing situationD) market pricing49) Administered pricing utilizes ________.A) nonprice competitionB) price guaranteesC) quantity and seasonal discountsD) bargaining power50) Administered pricing can be used in association with ________.A) market penetrationB) price warsC) market skimmingD) elastic demandMore Questions are Included…