FInal Mcqs - Marketing kotler solved mcqs PDF

Preview

Summary

Marketing kotler solved mcqs...

Description

Muhammad Umar Farooq

Chapter 07: Pricing Strategies A company sets not a single price, but rather a ________ that covers different items in its line that change over time as products move through their life cycles. B) pricing structure

1.

2. Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________. C) market-skimming pricing 3. Of the following, which statement would NOT support a market-skimming policy for a new product? D) Competitors can enter the market easily. 4. A firm is using ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future. A) price skimming 5. ________ pricing is the approach of setting a low initial price in order to attract a large number of buyers quickly and win a large market share B) Market-penetration 6. Accent Software faces the conditions below, all of which support Accent's use of a market-penetration pricing strategy EXCEPT that ________. C) the product's quality and image support a high price 7. Which of the following is a reason that a marketer would choose a penetration pricing strategy? E) to discourage competition from entering the market 8. Companies usually develop ________ rather than single products. B) product lines 9. Many producers who use captive-product pricing set the price of the main product ________ and set ________ on the supplies necessary to use the product. C) low; high markups 10. When amusement parks and movie theaters charge admission plus fees for food and other attractions, they are following a(n) ________ pricing strategy. C) captive-product 11. HiPoint Telephone Company uses two-part pricing for its long-distance call charges. Because this is a service, the price is broken into a fixed rate plus a ________. B) variable usage rate

MSCI18111162 BBA- 5th C

1

Muhammad Umar Farooq

12. With product bundle pricing, sellers can combine several products and offer the bundle ________ B) at a reduced price 13. What is a major advantage of product bundle pricing? A) It can promote the sales of products consumers might not otherwise buy. 14. A quantity discount is a price reduction to buyers who purchase ________. B) large volumes 15. Trade or functional discounts are offered by manufacturers to which of the following? A) channel members who perform tasks that the manufacturer would otherwise have to perform 16. Which of the following is an example of a cash discount? A) 2/10, net 30 17. When General Motors provides payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs, it is granting a(n) ________. D) promotional allowance 18. Quantity discounts provide an incentive to the customer to buy ________. C) more from one given seller, rather than from many different sources 19. By definition, this type of pricing is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost. A) segmented pricing 20. When a firm varies its price by the season, month, day, or even hour, it is using ________ pricing. D) time 21. Airlines, hotels, and restaurants call segmented pricing ________. B) yield management 22. Consumers usually perceive higher-priced products as ________. B) having a higher quality 23. Michael and John both own leather jackets and are currently shopping for two new ones. They both have prices in mind and refer to them when shopping. These prices are termed ________. B) reference prices 24. Which of the following refers to the prices that a buyer carries in his or her mind and refers to when looking at a given product? B) reference prices

MSCI18111162 BBA- 5th C

2

Muhammad Umar Farooq

25. When consumers cannot judge quality because they lack the information or skill, price becomes ________. C) an important quality signal 26. What type of pricing is being used when a company temporarily prices it product below the list price or even below cost to create buying excitement and urgency? D) promotional pricing 27. The most likely effect of the frequent use of promotional pricing is an industry ________. B) price war 28. The Internet offers ________, where the price can easily be adjusted to meet changes in demand. B) dynamic pricing 29. Some companies are reversing the fixed pricing trend and using ________. D) dynamic pricing 30. There are many reasons why a firm might consider cutting its price. All of the following are among them EXCEPT ________. D) monopolistic competition 31. Which of the following is a reason for a company to raise its prices? A) to address the issue of over demand for a product 32. Which of the following is a major factor that influence price increases? A) cost inflation 33. Competitors are most likely to react to a price change when ________. A) the number of firms involved is small B) the purchase is uniform D) A and B 34. Federal legislation on price-fixing requires that sellers set their prices ________. B) without communication from competitors 35. Mark's Markers, a manufacturer of color markers, has required its dealers to charge a specified retail price for its markers. Mark's is most likely guilty of ________. B) retail price maintenance 36. Valeo Fashions has just introduced a new line of fashion dresses for teens. They will initially enter the market at high prices in a ________ pricing strategy. B) market-skimming 37. Market-skimming pricing would likely be most effective in selling ________. B) an electronic device for which research and development must be recouped

MSCI18111162 BBA- 5th C

3

Muhammad Umar Farooq

38. Among the following, a market-penetration strategy will likely be most effective with ________. C) convenience items for which there is much competition 39. When Pepsi came out with Pepsi Blue and priced it at half price to attract buyers they were using, Pepsi was using ________. B) market-penetration pricing 40. A manufacturer offers 3/10, net 30, terms to a wholesaler for a recent purchase. The wholesaler may deduct ________ percent if the bill is paid within ________ days. D) 3; 10 41. When Whallans Gift Card Shop offers a price reduction to customers who buy Christmas cards the week after Christmas, Whallans is giving a(n) ________ discount. B) seasonal 42. The New Age Gallery has three admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called________. C) customer-segmented pricing 43. Lancaster Recycling has a history of problems with customers who do not pay their bills on time. Lancaster Recycling wants to improve its cash situation, reduce bad debts, and reduce credit-collection costs. The company might consider which of the following forms of pricing? C) cash discounts 44. The Chicago Bears organization charges different prices for seats in different areas of the Soldier Field, even though the costs are the same. This form of pricing is called ________. A) location pricing 45. By offering a set of pens packaged with stationery and matching envelopes, Quills is using ________. B) product bundle pricing 46. When Murphy's Candies sets a low initial price in order to get its "foot in the door" and quickly attract a large number of buyers, the company is practicing marketskimming pricing. Answer: FALSE 47. Market-skimming is a more popular strategy for pricing new products, while marketpenetration is a more popular strategy for pricing products that are more advanced in the product life cycle. Answer: FALSE 48. Pricing is often difficult because various products have related demand and costs, and they face different degrees of competition. Answer: TRUE

MSCI18111162 BBA- 5th C

4

Muhammad Umar Farooq

49. A seasonal discount is a price reduction to buyers who buy merchandise or services while they are in season. Answer: FALSE 50. When consumers cannot judge the quality of a product because they lack information or skill, they are likely to perceive a higher-priced product as having higher quality. Answer: TRUE 51. The frequent use of promotional pricing can lead to industry price wars. Answer: TRUE 52. Used too frequently, promotional pricing can have the negative effect of decreasing the brand's value in the eyes of customers. Answer: TRUE 53. The FOB-origin pricing strategy means that the goods sold are placed free on board a carrier. At that point the title and responsibility pass to the customer, who pays the freight from the factory to the destination. Answer: TRUE 54. Your company may respond to a competitor's price reduction by launching a lowprice fighting brand. This is likely necessary if the particular market segment being lost is price sensitive and will not respond to arguments of higher quality. Answer: TRUE

Chapter 07: Placement 1. ________ the manufacturer or service provider is the set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service. B) Upstream from 2. Most producers today sell their goods to ________. C) intermediaries 3. Distribution channel decisions often involve ________ with other firms, particularly those that involve contracts or relationships with channel partners. B) long-term commitments 4. From the economic system's point of view, the role of marketing intermediaries is to transform the assortment of products made by producers into the assortment of products wanted by ________. C) consumers 5. Producers benefit from using intermediaries because they ________. A) offer greater efficiency in making goods available to target markets MSCI18111162 BBA- 5th C

5

Muhammad Umar Farooq

6. Intermediaries play an important role in matching ________. B) supply and demand 7. Which of the following is NOT a key function that intermediaries play in completing transactions? E) negotiation 8. Which of the following is NOT a key function that intermediaries play in helping to fulfill a completed transaction? B) promotion 9. In marketing terms, we say that the number of intermediary levels indicates the ________ of a channel. D) length 10. To a producer of goods, a greater number of channel levels means ________ and greater channel complexity. B) less control 11. A conventional distribution channel consists of one or more ________ producers, wholesalers, and retailers. B) independent 12. A channel consisting of one or more independent producers, wholesalers, or retailers that seek to maximize their own profits even at the expense of profits for the channel as a whole is a(n) ________. B) conventional distribution channel 13. An advantage of a vertical marketing system (VMS) is that it acts as a ________ system. A) unified 14. The most common type of contractual agreement in business is the ________. A) franchise organization 15. In a ________, two or more companies at one level join together to develop a new marketing opportunity. B) horizontal marketing system 16. Hybrid marketing systems are also called ________. B) multichannel distribution systems 17. Due in a large part to advances in technology, ________ is a major trend whereby product and service producers are bypassing intermediaries and going directly to final buyers, or radically new types of channel intermediaries are emerging to displace traditional ones. C) disinter-mediation

MSCI18111162 BBA- 5th C

6

Muhammad Umar Farooq

18. Designing a channel system calls for analyzing consumer needs, setting channel objectives, ________ and evaluation. B) identifying major channel alternatives 19. Which of the following should be the first step in designing a marketing channel? B) identifying what consumers want from the channel 20. To increase a channel's service level, it must provide a greater assortment of products, more add-on services, and ________. C) faster delivery 21. Which type of product might require a more direct marketing channel to avoid delays and too much handling? B) perishable products 22. When determining the number of channel members to use at each level, three strategies are available: intensive, exclusive, and ________ distribution. B) selective 23. Sometimes a producer chooses only a few dealers in a territory to distribute its products or services. Generally these dealers are given a right to ________ distribution. A) exclusive 24. Which type of distribution is used when the producer wants more than one, but fewer than all, of the intermediaries who are willing to carry its products? B) selective 25. Channel members should be evaluated using all of the following criteria EXCEPT which one? D) channel leadership 26. When a company compares the likely sales, costs, and profitability of different channel alternatives, it is using ________ criteria to evaluate its channel options. C) economic 27. Exclusive territorial agreements are normal in ________. B) franchises 28. Steve's Physco Skates sells its products to Wal-Mart, who then sells them to the consumer. This is an example of a(n) ________. C) indirect marketing channel 29. When Netflix began delivering DVDs directly to customers through the mail instead of using a brick-and-mortar system, Netflix was following the trend of ________. B) disintermediation

MSCI18111162 BBA- 5th C

7

Muhammad Umar Farooq

30. Chewing gum is stocked in many outlets in the same market or community; in fact, it is placed in as many outlets as possible. This is an example of ________ distribution. D) intensive 31. Which product(s) will most likely be intensively distributed? D) Coca Cola 32. Which product will most likely be exclusively distributed? A) BMW cars 33. Tiffany & Co jewelry can only be found in a limited number of intermediaries. This is an example of ________ distribution. A) exclusive 34. Max Samuelson is a high-end fashion designer who markets his clothing lines through a limited number of highly reputable retailers. Max uses ________. A) exclusive distribution 35. Producing a product or service and making it available to buyers requires building relationships not just with customers, but also with key suppliers and resellers in the company's supply chain. Answer: TRUE 36. With the success of the Internet, few producers sell through intermediaries today. Answer: FALSE 37. A major role played by intermediaries is to buy large quantities of products from many producers and break them down into the smaller quantities and broader assortments wanted by consumers. Answer: TRUE 38. Members of the marketing channel may help a company complete transactions by performing key functions such as promotion and negotiation. Answer: TRUE 39. Always Fresh Produce Company has a route selling to more than 100 groceries, schools, and restaurants at wholesale prices. Last week the owners opened up a walkin discounted consumer produce outlet. Always is now using a multichannel distribution system. Answer: TRUE 40. Disintermediation has occurred when an online marketer takes business away from traditional brick-and-mortar retailers. Answer: TRUE 41. Intensive distribution seeks many outlets in a market, while selective distribution seeks only one outlet in a given market area. Answer: FALSE

MSCI18111162 BBA- 5th C

8

Muhammad Umar Farooq

42. The producer and intermediaries need to agree on the terms and responsibilities of each member, including price policies, conditions of sale, territorial rights, and specific services to be performed by each party. Answer: TRUE 43. Under the strategy of exclusive distribution, a seller allows only certain retail outlets to carry its products. Answer: TRUE 44. Integrated logistics management aims to provide better customer service and trim distribution costs through teamwork, both inside the company and among all the marketing channel organizations. Answer: TRUE 45. ________ includes all the activities involved in selling products or services directly to final consumers for their personal, non business use. B) Retailing 46. In recent years, ________ has/have been growing fast. This includes selling to final consumers through direct mail, catalogs, telephone, and the Internet. D) nonstore retailing 47. ________ is the basis of all discount operations and is typically used by sellers of convenience goods. Retailers offering this level of service require customers to perform their own "locate-compare-select" process in order to save money. B) Self-service 48. Mail-order, phone, and online shopping are all examples of ________. B) nonstore retailing 49. More growth in online retailing is expected from ________ retailers than other retail types. A) click-and-brick 50. ________, the world's second largest retailer after Wal-Mart, has embarked on an aggressive mission to extend its role as a leading international retailer. C) Carrefour 51. ________ includes all activities involved in selling goods and services to those buying for resale or business use. A) Wholesaling 52. ________ buy mostly from producers and sell to retailers and industrial consumers. C) Wholesalers 53. Which of the following is NOT one of a wholesaler's channel functions? D) off-price retailing

MSCI18111162 BBA- 5th C

9

Muhammad Umar Farooq

54. ________ and ________ do not take title to goods, and they perform only a few channel functions. B) Brokers; agents 55. A(n) ________ brings buyers and sellers together and assists in negotiations. B) broker 56. ________, or manufacturers' representatives, represent a buyer or seller on a more permanent basis. C) Agents 57) McDonald's, Subway, and Pizza Hut are all examples of a ________. C) franchise 58. 7-Eleven has recently begun to redesign and restock its stores to offer a more upscale environment and products, such as house wines and fresh foods. 7-Eleven has changed its ________. A) positioning 59. Which of the following types of retailers is most likely to practice everyday low pricing (EDLP)? A) discount stores 60. To create the right atmosphere, some retailers control every aspect of the consumer's store experience, including what customers hear and smell. Answer: TRUE

Chapter-8 Promotion 1) A company's total marketing communications mix consists of a special blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. This is also called ________. C) the promotion mix 2) The use of short-term incentives to encourage the purchase or sale of a product or service is called ________. B) sales promotions 3) Any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor is called ________. B) advertising 4) Which of the five major promotion tools includes building up a positive corporate image and handling unfavorable stories and events? D) public relations MSCI18111162 BBA- 5th C

10

Muhammad Umar Farooq

5) Which of the following is NOT a major category in a company's promotion mix? B) strategic positioning 6) Which major promotion category makes use of catalogs, telephone marketing, kiosks, and the Internet? B) direct marketing 7) Which major promotion category makes use of displays, discounts, coupons, and demonstrations? A) sales promotion 8) The promotion mix is the company's primary communication activity; the marketing mix must be coordinated for the greatest communication impact. What is NOT included in the entire marketing mix? B) competitor 9) Today's consumers do not need to rely on marketer-supplied information about products and services because they can use ________ to seek out a wealth of information. C) the Internet and other technologies 10) Which of the following is NOT a factor in the changes occurring in today's marketing communications? D) Mass media no longer capture the majority of promotional budgets. 11) Which of the following is NOT one o...