Question 1

An example of a product distributed from the producer to the consumers through the retailer is:

Accepted Answer

The answer of An example of a product distributed from...

Question 2

Because consumers associate a drug's price with potency,some pharmaceutical companies use the _____ strategy to price their over-the-counter drugs.

Accepted Answer

Consumers often perceive more expensive drugs as being more effective or of higher quality, leading pharmaceutical companies to use symbolic/prestige pricing. This strategy involves setting higher prices to signal superior quality or effectiveness, capitalizing on the belief that a higher price equates to greater potency.

Question 3

If a company sells one of its products for $9.99 rather than $10,it is using:

Accepted Answer

Odd pricing is a strategy where prices are set slightly below a round number, in this case, $9.99 instead of $10, to make the price seem lower than it actually is, encouraging more purchases.

Question 4

Dynamix Computers initially charged a low price for its new computer and then raised the price after gaining a large market share.Which of the following pricing strategies did Dynamix Computers use in this scenario?

Accepted Answer

Dynamix Computers used penetration pricing, which involves setting a low initial price to enter the market and attract a large number of buyers quickly, before eventually raising the price.

Question 5

Which of the following types of consumer marketing channel is used for the distribution of products like refrigerators,televisions,soft drinks,cigarettes,clocks,watches,and office products?

Accepted Answer

The answer of Which of the following types of consumer...

Question 6

_____ encourages consumers to make purchases based on emotion rather than rational considerations about the price.

Accepted Answer

Psychological pricing strategies are designed to have a psychological impact on consumers, encouraging them to make purchases based on emotions or perceptions rather than on a rational evaluation of the price or value of the product. This can involve pricing items just below a round number (e.g., $9.99 instead of $10) to make the price seem significantly lower, appealing to consumers' emotions and perception of getting a deal.

Question 7

If a company buys televisions from a manufacturer and then sells them to department stores,it is most probably a _____.

Accepted Answer

This company acts as a wholesaler because it buys products (televisions) from the manufacturer and then sells them in bulk to department stores, rather than directly to the final consumer. Wholesalers typically operate by purchasing goods from producers and selling them to retailers or other businesses.

Question 8

LCG Inc.,a mobile manufacturing company,is launching its new product in the market.The managers at LCG want to price the product in a way that would enable the company to recover the investments made toward developing the product.Which pricing strategy would be most effective for LCG Inc.?

Accepted Answer

Price skimming is effective for recovering investments made in product development by setting high initial prices that are lowered over time. This strategy capitalizes on the willingness of early adopters to pay a premium for the new product.

Question 9

Farmers who sell their fruit and vegetables to consumers at roadside stands or farmer's markets use a _____ consumer marketing channel.

Accepted Answer

Channel A refers to a direct marketing channel where producers sell directly to consumers without intermediaries, such as at roadside stands or farmer's markets.

Question 10

If a company's goal is to develop an image of having high-quality luxury products,it should employ a(n):

Accepted Answer

Prestige pricing strategy is used to set higher prices to foster the perception that the products are of high quality and luxury. This approach aligns with the goal of developing an image of high-quality luxury products, as it suggests exclusivity and superior value.

Question 11

47 Avenue buys shoes for men,women,and children from a large producer and sells them directly to end users.In this scenario,47 Avenue is a _____.

Accepted Answer

47 Avenue buys shoes from a producer and sells them directly to end users, which is the definition of a retailer.

Question 12

The pricing policy that allows a company to generate much-needed revenue to help offset the costs of research and development is known as:

Accepted Answer

Price skimming is a strategy where a company charges the highest initial price that customers will pay for a new or innovative product, then lowers the price over time. This approach helps recover the costs of research and development quickly, as the initial high price targets those customers willing to pay more for the novelty or unique features of the product.

Question 13

Gucci bags often run into thousands of dollars.What kind of a pricing strategy is used by the company?

Accepted Answer

Price skimming is a strategy where a company charges the highest initial price that customers will pay and then lowers it over time. Gucci employs this by setting high prices for new, often exclusive products, targeting customers willing to pay a premium before gradually reducing prices if necessary.

Question 14

Mocha Café initially charged a low price for its cuisine and then raised the price after gaining a large market share.Which of the following pricing strategies did Mocha Café use in this scenario?

Accepted Answer

Penetration pricing involves setting a low initial price to enter the market and attract a large number of customers quickly, then raising prices once a significant market share has been captured, which is what Mocha Café did.

Question 15

Which of the following is typically related to pricing new products?

Accepted Answer

Penetration pricing is a strategy used to price new products, where the price is set low to attract customers and gain market share quickly.

Question 16

If a cosmetics company is selling an eye shadow priced at $11.99 rather than $12,it is using:

Accepted Answer

This is an example of psychological pricing, where prices are set slightly below a round number to make the product appear less expensive to consumers, influencing their buying behavior.

Question 17

Which of the following types of consumer marketing channel is used for products such as college textbooks,automobiles,and appliances?

Accepted Answer

Channel B is used for products that require more personal selling and customer service, such as college textbooks, automobiles, and appliances.

Question 18

Many consumers associate high prices with high quality.In view of this assumption,some of the cosmetics companies use the _____ strategy to price their products.

Accepted Answer

Symbolic/prestige pricing strategy is used by companies to set higher prices for their products, capitalizing on the common consumer perception that higher price equates to higher quality. This approach is particularly effective in markets like cosmetics, where brand image and perceived quality play significant roles in consumer purchasing decisions.

Question 19

Services are usually distributed through _____ marketing channels.

Accepted Answer

The answer of Services are usually distributed through _____ marketing...

Question 20

When a company sets a low price for a new product to discourage competition from entering the market,it is using the _____ strategy.

Accepted Answer

Penetration pricing is a strategy where a company sets a low price for a new product to attract customers and discourage competition from entering the market. This approach helps in quickly increasing market share.

Quiz 12: Dimensions of Marketing Strategy