Question 1

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.

Accepted Answer

The statement implies that consumers do not find it worth their time and effort to gather and store price information because they perceive the potential savings to be outweighed by the benefits of haggling and buying the product. Therefore, they do not see sufficient value in the process.

Question 2

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

Accepted Answer

Some people enjoy the challenge of solving purchasing problems as a form of entertainment, such as finding the best deals or negotiating prices.

Question 3

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

Accepted Answer

If a product has a clear competitive advantage, consumers are more likely to be willing to pay a higher price for it. This gives the firm greater pricing freedom as it can set a higher price without losing too many customers to competitors. Conversely, if a product does not have a competitive advantage, the firm may need to set a lower price to remain competitive in the market.

Question 4

Online purchases provide smaller product assortments.

Accepted Answer

Online purchases can provide access to a wider range of products from all over the world, which may not be available in local stores.

Question 5

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

Accepted Answer

Competing solely on lower prices can lead to a price war and is not always sustainable. However, competing on other marketing mix variables such as product quality, design, features, customer service, and promotion strategies can differentiate a company's offering and lead to long-term profitability. Additionally, focusing on these variables instead of solely on price can create greater value for customers and lead to a stronger brand reputation.

Question 6

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.

Accepted Answer

For marketing exchanges to occur, the price consumers are willing to pay must be equal to or greater than the price at which marketers are willing to sell, ensuring both parties see value in the transaction.

Question 7

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

Accepted Answer

The answer of In order to obtain a lower dollar...

Question 8

In theory nonprofit organizations seek surplus funds beyond costs.

Accepted Answer

Nonprofit organizations aim to use surplus funds to further their mission rather than distribute them as profit; their primary goal is not to seek surplus beyond costs but to fulfill their organizational objectives.

Question 9

Use of credit card makes a purchase seem more expensive.

Accepted Answer

Using a credit card can often make a purchase seem less expensive at the moment of transaction because it delays the actual payment and doesn't immediately impact the user's bank account balance, potentially reducing the psychological pain of parting with money.

Question 10

Signing a credit slip can be classified under funds access.

Accepted Answer

Signing a credit slip is a method of authorizing a transaction, not directly accessing funds.

Question 11

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

Accepted Answer

Price is often a major consideration for consumers when making high-involvement purchases, as they are investing more time, effort, and money in the product. However, other factors such as quality, brand reputation, and personal values may also play a significant role in the decision-making process.

Question 12

Excessive cognitive effort can cause negative affect.

Accepted Answer

Studies have shown that when individuals have to put in excessive cognitive effort, such as when solving complex problems or trying to understand difficult concepts, it can lead to negative affect such as frustration, anxiety, and stress.

Question 13

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

Accepted Answer

Highly involved internet shoppers are likely to enjoy shopping as they have a strong interest in the products or services they are purchasing and enjoy exploring their options.

Question 14

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

Accepted Answer

E-tailing, or electronic retailing, is a method of selling goods online, and while it offers convenience and a wide reach, it may not always be the "best" method for selling convenience goods due to factors like shipping times, costs, and the need for physical inspection or immediate possession of the goods by consumers. Traditional retail methods can sometimes serve these needs more effectively.

Question 15

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

Accepted Answer

Price perceptions refer to the way consumers interpret and understand the price information of a product. It involves how consumers make sense of the price and how they evaluate it in relation to the perceived value of the product.

Question 16

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.

Accepted Answer

This is consistent with the concept of break-even analysis, which calculates the minimum price required to cover all costs and achieve zero profit. In order to make a profit and sustain the business, the price must be set higher than the break-even point to cover overhead and generate profits.

Question 17

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

Accepted Answer

This is because consumers may value their time more than the actual cost of the item, and are willing to pay extra to avoid the added time and effort required for a cheaper option.

Question 18

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

Accepted Answer

Sensory experience is typically associated with the physical senses and perception, not directly with the price variable, which is more related to economic and financial aspects.

Question 19

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

Accepted Answer

Penetration pricing involves setting a low price for a new product to attract customers and gain market share quickly, not starting with high prices and then lowering them.

Question 20

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

Accepted Answer

Effective online shopping requires more skills than just going to a physical store. Online shoppers need to have internet literacy, be able to navigate multiple websites, understand payment and shipping options, and assess product quality without seeing it in person. On the other hand, going to a store and picking out a product only requires basic shopping and decision-making skills.

Quiz 18: Consumer Behavior and Pricing Strategy