E1-5.01 Develop a foundational knowledge of pricing to understand its role in marketing
34.Why would a manager of a local business keep track of the prices that similar businesses in the area
are charging?
A. To remain competitive
C. To promote an image
B. To improve advertising
D. To offer new services
35. Which of the following is an example of a business using a flexible pricing policy:
A. Establishing prices that are competitive
B. Lowering prices during bad economic times
C. Setting prices as low as possible
D. Charging prices that customers expect to pay
36. When the costs of raw materials increase considerably, a business is likely to
A. maintain similar profit margins as its competitors.
B. implement a long-term markup pricing policy.
C. continue following the same pricing strategies.
D. increase the selling price of the product.
37. The price function often influences the place function by determining
A. when the product is made.
C. how the product is advertised.
B. why the product is shipped.
D. where the product is sold.
38. Why do some new companies set their selling prices as low as they can?
A. To get market share as fast as possible
C. To earn a high return on investment
B. To eliminate all possible competition
D. To quickly make a large profit
39. What is the purpose of sales-oriented pricing objectives?
A. To increase the total amount of sales income
B. To create profits for the business
C. To increase the return on investment
D. To guarantee the survival of the business
40. One reason why the target market of a business affects its pricing is because consumers in each
target market
A. monitor the industry standard.
C. prefer products in the growth stage.
B. expect a large product mix.
D. judge the value of products differently.
41. During which stage of the product life cycle is a business likely to try to stabilize a product's price?
A. Expansion
C. Obsolescence
B. Introductory
D. Maturity