Q1. ________ involves charging a constant low price with few or no temporary price discounts.
a. High-low pricing
b. Penetration pricing
c. Cost-plus pricing
d. Everyday low pricing (EDLP)
e. Target return pricing
Q2. General Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment. This approach is called ________.
a. target return pricing
b. value-based pricing
c. cost-plus pricing
d. low-price image
e. going-rate pricing
Q3. Which of the following statements about a break-even chart is true?
a. It is a tool marketers use to examine the relationship between supply and demand.
b. It is used to determine how the customer-perceived value changes with value-added pricing.
c. It uses variable costs, the unit price, and fixed costs.
d. It is a tool used to calculate fixed costs.
e. It shows the level of earnings a company has during an accounting period.
Q4. The simplest pricing method is ________.
a. going-rate and sealed-bid pricing
b. cost-plus pricing
c. break-even analysis
d. target return pricing
e. value-based pricing
Q5. It is most typical for producers who use captive-product pricing to set the price of the main product ________
and set ________ on the supplies necessary to use the product.
a. high; low markups
b. moderately; moderate markups
c. low; high markups
d. high; high markups
e. low; low markups
Q6. Mach 3 razor blades must be used in the Mach 3 razor. Which type of pricing is most likely used?
a. optional-product pricing
b. captive-product pricing
c. by-product pricing
d. allowance pricing
e. product line pricing
Q7. When Circuit Town Electronics sets its televisions at three price levels of $699, $899, and $1,099, it is using ________.
a. target return pricing
b. product line pricing
c. market-penetration pricing
d. break-even pricing
e. market-skimming pricing
Q8. Busch Stadium in St. Louis charges different prices for seats in different areas of the ballpark, even though their costs are
the same. What is this form of pricing called?
Q9. Under which type of geographic pricing strategy does each customer pay the exact freight for the product from the factory
to its destination?
a. freight-absorption pricing
b. FOB-origin pricing
d. zone pricing
e. dynamic pricing
Q10. ________ are the sum of the ________ and ________ for any given level of production.
a. Fixed costs; variable; total costs
b. Break-even costs; fixed; total costs
c. Total costs; fixed; variable costs
d. Fixed costs; total; variable costs
e. Variable costs; fixed; total costs
Q57. Which of the following is the term for the individuals in a company who travel to call on customers in the field?
a. product sales force
b. outside sales force
c. complex sales force
d. customer sales force
e. inside sales force
Q58. At Finleys Fine Goods, members of the sales force and marketing department tend to have disagreements when things
go wrong with a customer. The marketers blame the salespeople for poorly executing their strategies, while the salespeople
blame the marketers for being out of touch with the customer. Which of the following steps should upper-level management
at Finleys Fine Goods take to help bring the sales and marketing functions closer together?
a. establish a complex sales force structure
b. create an inside sales force
c. employ a chief revenue officer
d. establish a customer sales force structure
e. adopt a sales force automation system
Q59. Which sales management tool shows a salesperson which customers and prospects to see during the next 12 months and
in which months, as well as which activities to carry out?
a. time-and-duty analysis
b. annual call plan
c. sales force automation system
d. positive incentives plan
e. sales quota plan
Q60. Which of the following best explains why many companies are adopting the team selling approach to service large, complex
a. Salespeople prefer working in groups because of the opportunity for flex hours and job sharing.
b. A group of salespeople assigned to one account is cost effective for corporations.
c. Products have become too complicated for one salesperson to support.
d. Fewer skilled salespeople are working in the high-tech industry.
e. Customers prefer dealing with many salespeople rather than one salesperson.
Q61. A company that treats its salespeople as valuable contributors with unlimited income opportunities has developed
a(n) ________ that will have fewer turnovers and higher sales force performance.
a. sales structure