Deck 9: Pricing and Distribution Strategies

Question 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.

Answer 1

Consumers look for value when they buy.

Question 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

Answer 2

Cost plus a profit

Question 3

Which of the following is not an attribute of price?

A) Variable
B) Veracious
C) Variety
D) Virtual

Answer 3

Veracious

Question 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.

Question 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

Question 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.

Question 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.

Question 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.

Question 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

Question 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.

Question 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.

Question 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.

Question 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.

Question 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.

Question 15

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

A) premium
B) freemium
C) bundling
D) subscription pricing

Question 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

Question 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

Question 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

Question 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

Question 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

Question 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

Question 22

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

A) indirect
B) inhuman
C) value
D) direct

Question 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.

Question 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

Question 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.

Question 26

Which of the below is not a type of intermediary?

A) Agent
B) Warehouse
C) Merchant
D) Retailer

Question 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

Question 28

Navigation has four dimensions: '_______,' 'affiliation,' '______,' and 'range'.

A) distribution, richness
B) mapping, reach
C) reach, richness
D) reach, people

Question 29

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

A) Reach
B) Affiliation
C) Richness
D) Range

Question 30

There can be two groups of channel conflicts; they are

A) vertical, diagonal.
B) horizontal, diagonal.
C) horizontal, vertical.
D) circular, vertical.

Question 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

Question 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.

Question 33

_________ clone prices and distribution of other companies.

A) Market leaders
B) Market challengers
C) Market nichers
D) Market followers

Question 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.

Question 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.