Pricing And Distribution Strategies Verified Test Bank Ch.9

Chapter 9: Pricing and distribution strategies

Test Bank

Type: multiple choice question

Title: Chapter 09 Question 01

1) Which is true?

a. Consumers look for a low price when they buy.

b. Consumers look for value when they buy.

c. Consumers look at cost when they buy.

d. Consumers look at sales when they buy.

Type: multiple choice question

Title: Chapter 09 Question 02

2) How do most companies approach price setting?

a. All the consumers can pay.

b. Cheapest ever

c. Cost plus a profit

d. Losses plus the cost

Type: multiple choice question

Title: Chapter 09 Question 03

3) Which of the following is not an attribute of price?

a. Variable

b. Veracious

c. Variety

d. Virtual

Type: multiple choice question

Title: Chapter 09 Question 04

4) USA Sprint offering 4000 minutes for $39.99 a month, when only 350 minutes were actually anytime. Is an example that prices may be ____

a. invisible.

b. visible.

c. virtual.

d. transparent.

Type: multiple choice question

Title: Chapter 09 Question 05

5) Determining the price in the bases of what value the consumer places on the product is called ______ pricing.

a. inside out

b. outside out

c. cost plus

d. reverse cost plus

Type: multiple choice question

Title: Chapter 09 Question 06

6) The consumers’ price sensitivity is influenced by

a. who bears the cost.

b. what percentage of total expenditure does the product represent.

c. None of the options given are correct.

d. who bears the cost and what percentage of total expenditure does the product represent.

Type: multiple choice question

Title: Chapter 09 Question 07

7) While determining pricing the company needs to also think of

a. competitor reaction.

b. sales reaction.

c. employee reaction.

d. None of the options given are correct.

Type: multiple choice question

Title: Chapter 09 Question 08

8) A Manager must not only look at prices at which he sells to the intermediaries, but he must also monitor the prices at

a. SOP.

b. SOS.

c. LOF.

d. POS.

Type: multiple choice question

Title: Chapter 09 Question 09

9) British Gas bowed to political and consumer pressure and announced in early 2009 that it was to cut its gas bills by 10 per cent after a succession of rapid price increases. Hence the company failed to assess the _____ response to prices.

a. buyer’s emotional

b. seller’s emotional

c. buyer’s rational

d. buyer’s whimsical

Type: multiple choice question

Title: Chapter 09 Question 10

10) A grocery store offering discounted air tickets to customers who have spent $50 is an example of

a. decoupling.

b. bundling.

c. unbundling.

d. promotion.

Type: multiple choice question

Title: Chapter 09 Question 11

11) When a good or service that was a standard feature is removed and becomes an option is called ______

a. joint promotion.

b. unbundling.

c. bundling.

d. coupling.

Type: multiple choice question

Title: Chapter 09 Question 12

12) People who pay ‘up front’ large sums for memberships of health clubs tend to use that facility for the first few week shows that _______ is also important.

a. timing of payment

b. health of costs

c. living costs

d. None of the options given are correct.

Type: multiple choice question

Title: Chapter 09 Question 13

13) It has been observed that when prices are bundled, consumers ________

a. remember each cost clearly.

b. spend less.

c. lose sight of each individual price.

d. get confused.

Type: multiple choice question

Title: Chapter 09 Question 14

14) What is target pricing?

a. Putting together your costs and then selling at break even

b. Putting together your costs and then selling at a profit

c. Develop product with the target price in mind

d. None of the options given are correct.

Type: multiple choice question

Title: Chapter 09 Question 15

15) The ________ model combines free, entry-level options with paid options that offer additional features.

a. premium

b. freemium

c. bundling

d. subscription pricing

Type: multiple choice question

Title: Chapter 09 Question 16

16) In which pricing model customers are charged based on use or consumption?

a. Pay-per-use model

b. Subscription model

c. Freemium model

d. Decoy price model

Type: multiple choice question

Title: Chapter 09 Question 17

17) What type of product can create their own markets and can price at a premium?

a. Me-too products

b. Incrementally innovative products

c. Truly innovative products

d. Well-known products

Type: multiple choice question

Title: Chapter 09 Question 18

18) What type of product need to be priced a little higher than existing offerings?

a. Me-too products

b. Well-known products

c. Products with small enhancements

d. Truly innovative products

Type: multiple choice question

Title: Chapter 09 Question 19

19) From the customers’ point of view convenience means _______

a. speed and ease.

b. access and search.

c. transaction and search.

d. search and access

Type: multiple choice question

Title: Chapter 09 Question 20

20) ______ is about having merchandise in stock and available on a timely basis.

a. Supply convenience

b. Buyer convenience

c. Seller convenience

d. Possession convenience

Type: multiple choice question

Title: Chapter 09 Question 21

21) The speed and ease with which consumers can amend transactions before and after purchase is called ______ convenience.

a. buyer

b. seller

c. purchase

d. transaction

Type: multiple choice question

Title: Chapter 09 Question 22

22) Owing distribution network, mail, catalogue etc. are examples of _____ channel of distribution.

a. indirect

b. inhuman

c. value

d. direct

Type: multiple choice question

Title: Chapter 09 Question 23

23) An alternative to going through a physical, online, or hybrid retail infrastructure is to use a ________

a. not sell.

b. task force.

c. sales force.

d. None of the options given are correct.

Type: multiple choice question

Title: Chapter 09 Question 24

24) Leads can be qualified on social media by using IBM’s guide of ‘BANT’ (IBM, 2021). What does BANT stand for?

a. Brand, Authority, Need, Timeline

b. Budget, Authority, Need, Transaction

c. Budget, Acquisition, Need, Timeline

d. Budget, Authority, Need, Timeline

Type: multiple choice question

Title: Chapter 09 Question 25

25) In B2B, the sales force is still effective because _____

a. there is no other option.

b. it’s the cheapest way to sell.

c. helps create jobs.

d. it helps create a close personal bond.

Type: multiple choice question

Title: Chapter 09 Question 26

26) Which of the below is not a type of intermediary?

a. Agent

b. Warehouse

c. Merchant

d. Retailer

Type: multiple choice question

Title: Chapter 09 Question 27

27) An _____ acts as principal intermediary between the seller and supplier of a product or service and finds buyers without taking ownership.

a. agent

b. distributor

c. retailer

d. merchant

Type: multiple choice question

Title: Chapter 09 Question 28

28) Navigation has four dimensions: ‘_______,’ ‘affiliation,’ ‘______,’ and ‘range’.

a. distribution, richness

b. mapping, reach

c. reach, richness

d. reach, people

Type: multiple choice question

Title: Chapter 09 Question 29

29) __________ is about transparency and trust between retailers and their customers.

a. Reach

b. Affiliation

c. Richness

d. Range

Type: multiple choice question

Title: Chapter 09 Question 30

30) There can be two groups of channel conflicts; they are

a. vertical, diagonal.

b. horizontal, diagonal.

c. horizontal, vertical.

d. circular, vertical.

Type: multiple choice question

Title: Chapter 09 Question 31

31) One caveat in omnichannel retailing is there is evidence that while there are ________ who are keen to try new channels there are also ______ who are resistant to change and who generally stay with the tried and tested.

a. triers, stayers

b. learners, specials

c. flyers, sprayers

d. learners, stayers

Type: multiple choice question

Title: Chapter 09 Question 32

32) For a market leader price ______ when attacked by a challenger is generally advised.

a. increase

b. maintain

c. drop

d. None of the options given is correct.

Type: multiple choice question

Title: Chapter 09 Question 33

33) _________ clone prices and distribution of other companies.

a. Market leaders

b. Market challengers

c. Market nichers

d. Market followers

Type: multiple choice question

Title: Chapter 09 Question 34

34) When everyone else in the market regards the niche market as too much effort to bother with, then the niche market player can _______

a. charge a discount.

b. charge all costs.

c. charge nothing.

d. charge a premium.

Type: multiple choice question

Title: Chapter 09 Question 35

35) In many markets pricing and distribution strategies meet in conjunction with

a. packaging and customer needs.

b. promotion and customer wants.

c. place and positioning.

d. positioning and customer wants.