Deck 18: Consumer Behavior and Pricing Strategy

Question 1

The cognitive activity costs associated with shopping can be reduced by all of the following methods EXCEPT:

A) by buying the brands one grew up with.
B) by routinely buying the same brand.
C) by purchasing only on the Internet.
D) by following the recommendation of friends/family.
E) by buying any brand that is displayed.

Answer 1

C

Question 2

From a consumer's point of view,price is usually defined as:

A) the dollars and cents required to purchase a product/service.
B) revenue.
C) what a buyer must give up in order to purchase a product/service.
D) profit.
E) the most tangible/concrete component of the marketing mix.

Answer 2

C

Question 3

Which of the following is probably the most important factor in the purchase situation?

A) Price
B) Cognitive activity costs
C) Value
D) Behavioral costs
E) Shopping costs

Answer 3

C

Question 4

Most pricing research has focused on:

A) money.
B) customer satisfaction.
C) market share.
D) the source of funds used for purchase.
E) information generation.

Question 5

In order to obtain a lower dollar price,consumers may involve themselves in all of the following EXCEPT:

A) perform a part of the production process.
B) assume a part of the cost of distribution.
C) assist the seller in promotion.
D) assist the seller in marketing research.
E) shop at retail stores as opposed to catalog purchases.

Question 6

Which of the following statements is true with regard to credit cards?

A) Credit cards require more time.
B) Credit cards require more cognitive activity.
C) Credit cards require more effort.
D) Credit cards entail low interest rates.
E) Credit cards make a purchase seem less expensive.

Question 7

Which of the following statements about nonprofit organizations is true?

A) Nonprofit organizations do not seek surplus funds beyond costs.
B) Nonprofit organizations do not seek money from consumers.
C) The value derived from nonprofit exchanges are often more tangible.
D) Non profit organizations do not require/use a marketing strategy.
E) Nonprofit organizations follow the strategy of pricing their goods and services high.

Question 8

Price may not be a serious factor in a purchase of a product when all of the following scenarios exist EXCEPT:

A) when it falls within the consumer's implicit price range.
B) if it is an impulse purchase.
C) for products that a consumer is loyal to.
D) if the purchase is made habitually.
E) if it is a high-involvement product.

Question 9

The value most consumers place on time was vividly demonstrated by the emergence of:

A) specialty stores.
B) convenience stores.
C) hypermarkets.
D) boutiques.
E) internet purchasing.

Question 10

The stated price for a particular product may act as an attribute and the knowledge may be used to form an attitude directing purchase behavior by comparing it to all of the following EXCEPT:

A) dollar prices of other brands in a product class.
B) other attributes of the brand.
C) other attributes of other brands.
D) other consumer costs.
E) dollar prices of other brands in a different product class.

Question 11

Value is the direct result of:

A) a cost-benefit evaluation by the consumer.
B) a cost-benefit evaluation by the marketer.
C) the dollar value of the item.
D) the firm's skill in advertising.
E) the visibility of the product.

Question 12

The most intangible and abstract element in the marketing mix is:

A) product.
B) distribution.
C) promotion.
D) price.
E) strategy.

Question 13

A long-run plan to sequentially raise prices after introduction at a relatively low price refers to:

A) price skimming.
B) promotional pricing.
C) premium pricing.
D) penetration pricing.
E) demand based pricing.

Question 14

Target market sensitivity to money costs may be measured by:

A) market elasticity.
B) product elasticity.
C) consumer elasticity.
D) price elasticity.
E) mix elasticity.

Question 15

Setting a lower dollar price is clearly an important strategy for firms attempting to position a brand as a:

A) quality product.
B) industrial good.
C) impulse good.
D) bargain product.
E) specialty good.

Question 16

The stated price,unit price,credit data,etc.fall under the category of:

A) sensation of price information.
B) price information.
C) integration.
D) attitude formation.
E) comprehension.

Question 17

Which of the following income sources is the consumer most likely to value highest?

A) Funds obtained from gifts
B) Funds obtained from gambling
C) Funds obtained from work
D) Funds obtained from tax rebates
E) Funds obtained from bank interest

Question 18

Some products are simply purchased by paying whatever is asked for at the point of purchase.These products are called:

A) impulse items.
B) fast moving consumer goods.
C) industrial goods..
D) farm products.
E) necessities.

Question 19

E-tailing enjoys advantages over traditional retailers in all of the following areas EXCEPT:

A) price.
B) energy spent shopping.
C) travel costs.
D) delivery time.
E) shopping time.

Question 20

The development of a pricing strategy for a new or an existing product should begin with:

A) the creation of a product prototype.
B) an analysis of consumer-product relationships.
C) the creation of a strong advertising campaign.
D) the finalization of all other aspects of the marketing mix.
E) the choice of an external price reference.

Question 21

Many consumers do not see sufficient value to be gained from gathering/storing price information when the real potential savings to be realized are compared against haggling and not being able to buy a product.

Question 22

People may seek purchasing problems to solve as a form of entertainment.

Question 23

A firm will have greater pricing freedom if the product enjoys a clear competitive advantage.

Question 24

Online purchases provide smaller product assortments.

Question 25

Competing on marketing mix variables other than money costs is often a more defensible and more profitable strategy.

Question 26

For marketing exchanges to occur,the price consumers are willing to pay must be lesser than the price at which marketers are willing to sell.

Question 27

In order to obtain a lower dollar price,consumers may shop at retail stores as opposed to purchasing through catalogs.

Question 28

In theory nonprofit organizations seek surplus funds beyond costs.

Question 29

Use of credit card makes a purchase seem more expensive.

Question 30

Signing a credit slip can be classified under funds access.

Question 31

Price may not be a serious factor in a purchase of a product when it is a high-involvement product.

Question 32

Excessive cognitive effort can cause negative affect.

Question 33

Time spent shopping may be an enjoyable experience for highly involved internet shoppers.

Question 34

E-tailing is the best method for selling convenience goods.

Question 35

Price perceptions concern how price information is comprehended by consumers and made meaningful to them.

Question 36

From an economic/accounting standpoint,price must cover at least the product's variable costs and make some contribution to overhead and/or profits to be offered in the marketplace.

Question 37

Consumers often pay higher dollar prices to save time and effort.

Question 38

A significant amount of sensory experience is connected with the price variable.

Question 39

Penetration pricing may include a long-run plan to systematically lower prices after a high-price introduction.

Question 40

Effective online shopping likely takes less skill than simply going to a store or two and picking out a product.

Question 41

Briefly explain about time and cognitive activity as conceptual issues in pricing.

Question 42

The price a consumer has in mind for making comparisons with the stated price is called the _____.

Question 43

The _____ costs of production and marketing usually determine the lowest dollar price a firm must charge to make an offering in the market.

Question 44

What are some of the trade-offs consumers can make with regard to purchase/ownership?

Question 45

Explain the difference between internal and external reference prices.

Question 46

Why is the amount of money perhaps less important than the source of these funds? How does this relate to the use of credit cards versus cash?

Question 47

Items being purchased must be perceived to be of greater _____ to the consumer than merely the sum of the costs.

Question 48

In terms of developing a pricing strategy,what are some of the factors that marketers have to keep in mind?

Question 49

Competing on price may be the only alternative for marketers targeting _____ consumers.

Question 50

Thinking and deciding what to buy are types of _____ activities involved in making purchases.

Question 51

A(n)_____ is an explicit comparison of the stated price with another price from the marketing environment.

Question 52

Pricing strategies are designed to generate _____ based on consumer cost trade-offs and values.

Question 53

What is price? What specific types of consumer "costs" are involved?

Question 54

_____ is the most commonly used pricing objective.

Question 55

Briefly describe the generalizations about analyzing consumer-product relationships in terms of consumer costs.

Question 56

Explain two types of price behavior.

Question 57

Why is target return on investment the most popular/common pricing objective in business?

Question 58

The four basic types of consumer costs are money,time,_____,and behavior effort.

Question 59

What are some of the environmental factors to be considered when developing pricing strategies?

Question 60

Consumers may forgo comparing prices at _____ stores with those at other stores.