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.

Accepted Answer

Purchasing only on the Internet can increase cognitive activity costs associated with shopping, as it requires more research and comparison to find the best deals and products.

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.

Accepted Answer

Price from a consumer's point of view is what they must give up (usually in terms of money) in order to purchase a product or service. It is the cost or sacrifice the consumer has to make to obtain the product or service.

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

Accepted Answer

Value is probably the most important factor in a purchase situation because it encompasses the perceived benefits and costs of the product or service. Consumers weigh the value of what they're getting against what they have to give up (money, time, effort, etc.). While price and other costs (cognitive activity costs, behavioral costs, shopping costs) do play a role in purchase decisions, they are often evaluated in conjunction with the perceived value.

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.

Accepted Answer

Pricing research primarily aims to determine the most appropriate price for a product or service, which is directly related to the amount of money customers are willing to pay. Therefore, pricing research focuses on the monetary aspect of customer behavior.

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.

Accepted Answer

Options A, B, C, and D all involve consumers taking on roles or responsibilities that could lower the cost of goods or services for them, either by reducing the seller's costs or by directly contributing to the production or distribution process. However, shopping at retail stores as opposed to making catalog purchases (E) does not inherently involve the consumer in lowering the dollar price through their own actions in the production, distribution, or promotion processes.

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.

Accepted Answer

Credit cards make a purchase seem less expensive because consumers do not have to physically hand over cash or see the amount leaving their account immediately. This can lead to overspending and accumulating debt.

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.

Accepted Answer

Nonprofit organizations typically have a goal of fulfilling their mission or providing a service rather than generating surplus funds beyond costs.

Answer: C 
 Nonprofit exchanges often involve intangible benefits such as social impact, meaning that the value derived from the exchange can be more tangible than in for-profit exchanges.

Note: None of the other statements are true for nonprofit organizations.

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.

Accepted Answer

High-involvement products typically involve more consideration and evaluation, including price, before a purchase decision is made. This contrasts with impulse buys, habitual purchases, or products within a consumer's implicit price range, where price may not be as significant a factor.

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.

Accepted Answer

Convenience stores emerged due to the consumer's desire for a quick and easy shopping experience that saves time. This shows that consumers highly value their time and are willing to pay a premium for convenience.

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.

Accepted Answer

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 other dollar prices of other brands in the same product class or to other attributes of the same brand or other brands. However, comparing it to the dollar prices of other brands in a different product class is not relevant in this context and is therefore an exception.

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.

Accepted Answer

Value is subjective and based on the perception of the consumer. It is the result of a cost-benefit evaluation by the consumer, where they assess whether the benefits of a product or service outweigh the cost. The marketer can influence this perception through their marketing efforts, but ultimately it is up to the consumer to determine the value of the offering. The dollar value of the item, the firm's skill in advertising, and the visibility of the product are all factors that can influence value, but they are not the direct result of it.

Question 12

The most intangible and abstract element in the marketing mix is:
A) product.
B) distribution.
C) promotion.
D) price.
E) strategy.

Accepted Answer

While all elements of the marketing mix can be difficult to measure and quantify, price is often the most intangible and abstract because it can be influenced by a variety of factors including psychological pricing, perceived value, and brand equity. Additionally, price is often dynamic and can fluctuate based on market conditions, making it more difficult to pin down than the other elements of the marketing mix.

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.

Accepted Answer

Penetration pricing involves initially setting a low price to attract customers and gain market share, with plans to gradually increase prices over time.

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.

Accepted Answer

Price elasticity refers to how sensitive customers are to changes in price. If a target market is highly sensitive to money costs, they are likely to have a high price elasticity, meaning that even small changes in price can lead to significant changes in demand for the product. Therefore, measuring price elasticity can help businesses understand their target market's sensitivity to money costs.

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.

Accepted Answer

Setting a lower dollar price is a common strategy used by firms to position a brand as a bargain product, appealing to customers seeking affordability and value. This is often done by sacrificing profit margins to attract a larger customer base and increase sales volume.

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.

Accepted Answer

The stated price, unit price, credit data, etc. are all types of information related to price, making them fall under the category of price information.

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

Accepted Answer

Funds obtained from work are likely to be valued highest as they represent earned income that comes from one's own effort and skill. This income is often seen as more stable and reliable than other sources such as gifts or gambling winnings. Furthermore, work income may also have a sense of personal accomplishment and recognition associated with it.

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.

Accepted Answer

Impulse items are products that are purchased without much thought or planning, often at the point of purchase.

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.

Accepted Answer

E-tailing (online retail) typically involves longer delivery times compared to traditional retail stores where customers can obtain products immediately upon purchase.

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.

Accepted Answer

Before deciding on a pricing strategy, it is important to understand the relationship between the product and its target consumers. Factors such as consumer behavior, preferences, and willingness to pay must be analyzed in order to determine the optimal pricing strategy for the product. Therefore, an analysis of consumer-product relationships should be the starting point for developing a pricing strategy.

Quiz 18: Consumer Behavior and Pricing Strategy

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

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

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

Most pricing research has focused on:

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

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

Which of the following statements about nonprofit organizations is true?

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

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

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:

Value is the direct result of:

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

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

Target market sensitivity to money costs may be measured by:

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

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

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

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

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

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