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Chapter 20
1. Adequate distribution for a new product can often be attained by giving dealers a large trade allowance.
a. True
b. False
ANSWER: True
RATIONALE: Adequate distribution for a new product can often be attained by offering a larger-than-usual
profit margin to distributors. A variation on this strategy is to give dealers a large trade
allowance to help offset the costs of promotion and further stimulate demand at the retail
level. See 20-6: Other Determinants of Price
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Understand
BUSPROG: Analytic
Distribution Strategies
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:51 AM
CUSTOM ID: CGI: DBQQN2Y08H820N47P483
QUESTION ID: JFND-GO4G-G3BU-CQJA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMMB-CCHS-R3DG-8Y5U-OQMB-
GASS-C3UD-CESS-GC3A-GOSS-CPMB-COSU-N3TZ-GY5D-EQBS-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

2. Manufacturers find that their large customers always force sellers to do illegal price discrimination.
a. True
b. False
ANSWER: False
RATIONALE: Manufacturers find that their large customers such as department stores often make specific
pricing demands that the suppliers must agree to. See 20-6: Other Determinants of Price
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Remember
BUSPROG: Analytic
Demand
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:51 AM
CUSTOM ID: CGI: DZXQTCA79R2PNB9DC595
QUESTION ID: JFND-GO4G-G3BU-CQKG
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QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-

CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJW-GY5S-KA5D-GB1S-GPJZ-GESU-
CA5R-CESS-RCUB-GOSU-RP3I-CASS-N3B1-GOAG-CCMN-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

3. Price is not used for trade promotions as it garners a negative opinion for the brand.
a. True
b. False
ANSWER: False
RATIONALE: Price is often used as a promotional tool to increase consumer interest. Pricing can be a tool
for trade promotions as well. See 20-6: Other Determinants of Price
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Understand
BUSPROG: Analytic
Promotion Strategies
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:51 AM
CUSTOM ID: CGI: GJQBC71MD3H5KWTR1387
QUESTION ID: JFND-GO4G-G3BU-CQKF
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJ3-CEAD-YCJO-GWAD-O3DN-
CRSS-C3BA-CRSU-OA3W-GOSS-NCUF-GRSS-CCDG-CTOU-NPBU-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

4. The best way for manufacturers to control prices is by using an exclusive distribution system.
a. True
b. False
ANSWER: False
RATIONALE: The best way for manufacturers to control prices is to develop brand loyalty in consumers by
delivering quality and value. See 20-6: Other Determinants of Price
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Remember
BUSPROG: Analytic
Distribution Strategies
DATE CREATED: 5/1/2015 4:22 PM
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DATE MODIFIED: 5/26/2015 2:51 AM

CUSTOM ID: CGI: GVYUR9E49Z1PAX823898
QUESTION ID: JFND-GO4G-G3BU-CQKR
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJS-GC4D-1PMN-GYHU-YPMG-
GESS-C3BT-8RSS-NAMF-GOSS-GPDF-GCSU-C3JO-GR3U-CCB3-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

5. According to garment makers, the demands of large customers are nearly wiping out profits for all but the very large
suppliers.
a. True
b. False
ANSWER: True
RATIONALE: Cumulatively, the demands of large customers are nearly wiping out profits for all but the
very biggest suppliers, according to fashion designers and garment makers. See 20-6: Other
Determinants of Price
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Remember
BUSPROG: Analytic
Demand
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:51 AM
CUSTOM ID: CGI: KHFXSPYAVU1RC7UE4816
QUESTION ID: JFND-GO4G-G3BU-CQKD
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJT-GBOS-RCUD-GPTS-RC5R-COSU-
RPTA-CRSU-GCTO-GOSU-OCTZ-8RSS-CPJW-GY3U-1PTS-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

6. Large customers insist on cash rebates if the guarantee of stores' profit margins are not met.
a. True
b. False
ANSWER: True
RATIONALE: Large customers insist on cash rebates if the guarantee of stores' profit margins are not met.
See 20-6: Other Determinants of Price
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
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TOPICS: A-head: Other Determinants of Price

Bloom's: Understand
BUSPROG: Analytic
Demand
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:51 AM
CUSTOM ID: CGI: KXARY5UNR79EVKJ3Q763
QUESTION ID: JFND-GO4G-G3BU-CQJU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJO-GYHG-CAJW-CT1D-CPMN-
GCSU-1A5B-8RSU-OCTA-GOSU-EP5G-CESS-KPB1-8F1D-QATW-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

7. Prices always steadily decline for a product in the decline stage of the product life cycle.
a. True
b. False
ANSWER: False
RATIONALE: When only one firm is left in the market, prices begin to stabilize, but they may eventually
rise dramatically if a product survives and moves into the specialty goods category, as horse-
drawn carriages and vinyl records have. See 20-6: Other Determinants of Price
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Remember
BUSPROG: Analytic
Product Life Cycle
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:51 AM
CUSTOM ID: CGI: KXHZPPE83U8V36K1V215
QUESTION ID: JFND-GO4G-G3BU-CQJ1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJA-GB1D-KQJI-GO5U-YCUG-
GWSU-RP3W-8YSS-NPTT-GOSS-ECDF-GRSS-ECMB-GW3U-NA3Z-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

8. Department stores seldom make demands on their suppliers to cover the heavy discounts and markdowns on their own
selling floors.
a. True
b. False
ANSWER: False
RATIONALE: Department stores are making greater-than-ever demands on their suppliers to cover the
heavy discounts and markdowns on their own selling floors. See 20-6: Other Determinants of
Price
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POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Understand
BUSPROG: Analytic
Demand
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:51 AM
CUSTOM ID: CGI: LASZTDSEZ3PW656GY517
QUESTION ID: JFND-GO4G-G3BU-CQJT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJS-GEHD-K3JU-CR4S-KATZ-CASS-
RQBO-8YSU-QPTZ-GOSU-YCBA-GCSU-CP3S-CTTG-K3MR-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

9. Stocking well-known branded items at high prices in order to sell store brands at discounted prices is called selling
against the brand.
a. True
b. False
ANSWER: True
RATIONALE: Stocking well-known branded items at high prices in order to sell store brands at discounted
prices is called selling against the brand. See 20-6: Other Determinants of Price
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Remember
BUSPROG: Analytic
Distribution Strategies
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:51 AM
CUSTOM ID: CGI: LFFHWNK72UV03H05N872
QUESTION ID: JFND-GO4G-G3BU-CQJO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMMN-GOAU-YPT3-CWHD-CCB3-
8RSS-NQBA-CRSU-CAMG-GOSU-YA3W-CCSS-RQMF-CTUD-CC3W-E7JI-YT4D-
JFNN-4OTI-GO4W-NQNBEE

10. Competition remains constant during a product's life cycle.

a. True
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Chapter 20

b. False
ANSWER: False
RATIONALE: Competition varies during the product life cycle, so it may strongly affect pricing decisions.
See 20-6: Other Determinants of Price
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Understand
BUSPROG: Analytic
Competition
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:51 AM
CUSTOM ID: CGI: NMAL5X1B0KCQTQ8HT797
QUESTION ID: JFND-GO4G-G3BU-CQJZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMMB-GBTG-RP5R-GEHU-NC5D-
GOSS-RP33-8RSS-NPDN-GOSU-13MD-GASU-QCB3-GEAU-KC3I-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

11. The demand curve for a product shows the change in the product's supply with changes in its price.
a. True
b. False
ANSWER: False
RATIONALE: The demand graph for a product shows the change in demand for the product with changes in
its price. See 20-3: The Demand Determinant of Price
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.03
TOPICS: A-head: The Demand Determinant of Price
Bloom's: Understand
BUSPROG: Analytic
Demand
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:51 AM
CUSTOM ID: CGI: QBHSZS4E9NTM6V3SP780
QUESTION ID: JFND-GO4G-G3BU-CQJS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJO-CO3S-CA33-8Y5S-EPBS-GASS-
EC5B-CESS-GPBO-GOSU-YPB1-CCSU-NA3A-CJOU-YAJ3-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
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12. A shopping bot is a private electronic network that links a company with its suppliers and customers.
a. True
b. False
ANSWER: False
RATIONALE: Extranet is a private electronic network that links a company with its suppliers and
customers. It links people, machines, and companies around the globe. A shopping bot is a
program that searches the Web for the best price for a particular item that one wishes to
purchase. See 20-6: Other Determinants of Price
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Remember
BUSPROG: Analytic
Extranets
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:51 AM
CUSTOM ID: CGI: QSFCR5TNVMDGQ9TE5796
QUESTION ID: JFND-GO4G-G3BU-CQJI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJA-CW4U-1C33-GEHD-KPMG-
GESU-NQB1-CRSU-1AJ3-GOSU-1PUR-GCSS-EP5R-CWHD-GQJS-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

13. An effective distribution network can sometimes overcome other minor flaws in the marketing mix.
a. True
b. False
ANSWER: True
RATIONALE: An effective distribution network can sometimes overcome other minor flaws in the
marketing mix. See 20-6: Other Determinants of Price
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Remember
BUSPROG: Analytic
Distribution Strategies
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:51 AM
CUSTOM ID: CGI: SBNWL2EL0WS8LMLBD503
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QUESTION ID: JFND-GO4G-G3BU-CQJW

QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJ1-GAHG-GPDR-8F1D-CCUG-8RSU-
QP5G-CESU-KAUG-GOSS-RPBO-CESS-KPMB-CIOU-YC5D-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

14. As products enter the growth stage of the product life cycle, prices generally begin to stabilize.
a. True
b. False
ANSWER: True
RATIONALE: As products enter the growth stage of the product life cycle, prices generally begin to
stabilize. See 20-6: Other Determinants of Price
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Remember
BUSPROG: Analytic
Product Life Cycle
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:51 AM
CUSTOM ID: CGI: VAWP7JSYNSFZ8KY9M505
QUESTION ID: JFND-GO4G-G3BU-CTKN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJO-8R4S-EA3Z-GO3G-GC5D-GWSU-
CQJI-8YSS-N3T3-GOSU-CQBW-GRSS-NPBU-GO5G-KCTA-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

15. If the demand curve for a product slopes downward and to the right, it indicates that more of the product is demanded
as its price is lowered.
a. True
b. False
ANSWER: True
RATIONALE: If the demand curve of a product slopes downward and to the right, it indicates that more of
the product is demanded as the price is lowered. In other words, if manufacturers of the
product put a greater quantity on the market, then their hope of selling all of it will be
realized only by selling it at a lower price. See 20-3: The Demand Determinant of Price
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.03
TOPICS: A-head: The Demand Determinant of Price
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Bloom's: Understand
BUSPROG: Analytic
Demand
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:51 AM
CUSTOM ID: CGI: WARR2XNT7RZZ5V4LR188
QUESTION ID: JFND-GO4G-G3BU-CTKB
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJU-CE3S-CCMD-CE3D-RPMG-
GRSS-G3T1-8YSS-GP3Z-GOSS-CCTU-GASS-CATZ-CC3U-QP5G-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

16. Price matching is one of the ways to counter a competitor's prices.

a. True
b. False
ANSWER: True
RATIONALE: One way to counter a competitor's prices is through price matching. The concept is to match
one's competitor's price. See 20-6: Other Determinants of Price
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Remember
BUSPROG: Analytic
Competition
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:51 AM
CUSTOM ID: CGI: WRPT46C7EQEY2Z9H6944
QUESTION ID: JFND-GO4G-G3BU-CTJ3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJW-GA4U-CCBW-CE4D-YPMD-
CESU-EATZ-CRSU-Y3BT-GOSS-GAJS-GOSU-QCDN-GTUG-C3TO-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

17. Liquiction Pool and Patio Inc. is a company known for its quality pool installations, excellent customer service, and
reasonable prices. Given the demand, Liquiction could price its products higher, but it prefers to price its products such
that it will earn a reasonable level of profits. Liquiction seems to base its pricing policy on:
a. profit maximization.
b. earning satisfactory profits.
c. creating retained earnings.
d. maintaining a status quo pricing.
ANSWER: b
RATIONALE: Liquiction seems to base its pricing policy on earning satisfactory profits. Satisfactory profits
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are a reasonable level of profits. Rather than maximizing profits, many organizations strive
for profits that are satisfactory to the stockholders and management—in other words, a level
of profits consistent with the level of risk an organization faces. See 20-2: Pricing Objectives
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.02
TOPICS: A-head: Pricing Objectives
Bloom's: Apply
BUSPROG: Reflective Thinking
Pricing Strategies
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:51 AM
CUSTOM ID: CGI: AMUWQ2V4VQMLLJ52X873
QUESTION ID: JFND-GO4G-G3BU-CTJA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJZ-GH3D-OPB1-GE4G-GC5G-GYSS-
EPUB-CESU-EPUR-GOSS-CP31-CRSS-GPMN-GCHD-13UF-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

18. Which of the following trends in the consumer market has increased the difficulty of setting the right price for a
product?
a. The unwillingness of many firms to maintain or regain their market share by cutting prices
b. The decreased availability of bargain-priced private and generic product brands
c. The careful evaluation of each product's price against its value by potential buyers
d. The inability of consumers to do comparison shopping
ANSWER: c
RATIONALE: Confronting a flood of new products, potential buyers carefully evaluate the price of each one
against the value of existing products. It is one of the trends in the consumer market that has
increased the difficulty of setting the right price for a product. See 20-1: The Importance of
Price
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.01
TOPICS: A-head: The Importance of Price
Bloom's: Understand
BUSPROG: Analytic
Pricing
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:51 AM
CUSTOM ID: CGI: ARDZJGZPTSLH9VWG5983
QUESTION ID: JFND-GO4G-G3BU-CTKG
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QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-

CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMMF-GTOU-QQBU-GE4D-EQDG-
GRSU-GP3I-8RSU-O3JU-GOSU-RAUD-GWSU-EA33-CAHD-QQJS-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

19. For convenience, pricing objectives can be divided into three categories. They are:
a. refundable, competitive, and attainable.
b. perceived, actual, and situational.
c. differentiated, niche, and undifferentiated.
d. profit oriented, sales oriented, and status quo.
ANSWER: d
RATIONALE: For convenience, pricing objectives can be divided into three categories. They are profit
oriented, sales oriented, and status quo. Profit-oriented pricing objectives include profit
maximization, satisfactory profits, and target return on investment. Sales-oriented pricing
objectives are based on market share as reported in dollar or unit sales. Status quo pricing
seeks to maintain existing prices or to meet the competition's prices. See 20-2: Pricing
Objectives
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.02
TOPICS: A-head: Pricing Objectives
Bloom's: Remember
BUSPROG: Analytic
Pricing Objectives
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:51 AM
CUSTOM ID: CGI: ERXYH7CFF2F0ZHHLB892
QUESTION ID: JFND-GO4G-G3BU-CTKF
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMMG-CEHU-CQB3-8B1G-ECMF-
8YSU-YQBT-CESU-KQBT-GOSU-RATA-CESU-NC3S-GF1U-YAJ3-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

20. Britney is fifteen years old and wants to begin her own business selling cupcakes to coffee shops and restaurants. She
is having a tough time deciding whether she should express her market share in terms of the revenue generated or the
number of cupcakes sold. Regardless of what she chooses, which of the following types of pricing objectives is Britney
considering?
a. Status quo pricing
b. Profit oriented
c. Target return on investment
d. Sales oriented
ANSWER: d
RATIONALE: Regardless of what she chooses, Britney's pricing objective can be categorized as sales
oriented. Sales-oriented pricing objectives are based on market share as reported in dollars or
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unit sales. See 20-2: Pricing Objectives

POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.02
TOPICS: A-head: Pricing Objectives
Bloom's: Apply
BUSPROG: Reflective Thinking
Pricing Strategies
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:51 AM
CUSTOM ID: CGI: EUCHQXQ699R2ZZDMP156
QUESTION ID: JFND-GO4G-G3BU-CTKR
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJI-GY3G-EA3U-CFOU-O3UB-GESS-
K3BS-8RSS-G3DG-GOSU-1A5R-GRSS-EATO-GR5G-NCJS-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

21. Yield management systems are used to:

a. determine the availability of product substitutes in industries that are experiencing rapid change.
b. profitably fill unused capacity by using complex mathematical systems.
c. predict necessary service levels required to achieve revenue goals.
d. determine whether it is financially more feasible to buy a new product or repair a broken one.
ANSWER: b
RATIONALE: Yield management system (YMS) is a technique for adjusting prices that uses complex
mathematical software to profitably fill unused capacity by discounting early purchases,
limiting early sales at these discounted prices, and overbooking capacity. YMS is spreading
beyond service industries as its popularity increases. See 20-4: The Power of Dynamic
Pricing and Yield Management Systems
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.04
TOPICS: A-head: The Power of Dynamic Pricing and Yield Management Systems
Bloom's: Understand
BUSPROG: Analytic
Yield Management
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:51 AM
CUSTOM ID: CGI: GRCBL0EKV01B69DFF576
QUESTION ID: JFND-GO4G-G3BU-CTKD
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMMF-CCHG-EC5R-CC5U-OATS-
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GYSU-GA5F-CESS-RA3O-GOSU-QPUD-CCSU-RPBZ-GHAD-GQBO-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

22. Which of the following statements is true about yield management systems (YMS)?
a. They are used to eliminate the problem of simultaneous production and consumption from services.
b. They are restricted to use only in service industries.
c. They are complex pricing systems used to establish price equilibrium.
d. They are used to make profitable use of the unused capacity of perishable goods.
ANSWER: d
RATIONALE: Yield management system (YMS) is a technique for adjusting prices that uses complex
mathematical software to profitably fill unused capacity by discounting early purchases,
limiting early sales at these discounted prices, and overbooking capacity. YMS is spreading
beyond service industries as its popularity increases. See 20-4: The Power of Dynamic
Pricing and Yield Management Systems
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.04
TOPICS: A-head: The Power of Dynamic Pricing and Yield Management Systems
Bloom's: Understand
BUSPROG: Analytic
Yield Management
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: HEXSAT5MYGCQM4SJM047
QUESTION ID: JFND-GO4G-G3BU-CTJU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJZ-GH4D-NCTA-GWAU-RA5R-
CASU-C3J1-CESU-OPJZ-GOSU-KCJW-GESU-GQDG-CA5D-QAJZ-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

23. GoodFurn Furniture Company has recently moved to a new, larger location. At the new location, it has been unable to
attract sufficient customers. Its owner did not have the cash to pay the current loan installment due for the building and
inventory. So, he decided to reduce all merchandise prices by at least 50 percent for a weekend sale to earn enough to
make his loan payment. In this case, the owner's pricing objective can be classified as:
a. market share maximization.
b. satisfactory profits.
c. asset maximization.
d. sales maximization.
ANSWER: d
RATIONALE: The owner of GoodFurn Furniture Company has used sales maximization. A firm with the
objective of maximizing sales ignores profits, competition, and the marketing environment as
long as sales are rising. See 20-2: Pricing Objectives
POINTS: 1

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Name: Class: Date:

Chapter 20

DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.02
TOPICS: A-head: Pricing Objectives
Bloom's: Apply
BUSPROG: Reflective Thinking
Pricing Strategies
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: JCXFM69RJM77VS1QG745
QUESTION ID: JFND-GO4G-G3BU-CTJ1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMMG-CR4D-RCDB-GO4D-N3T1-
8YSU-KCJI-8YSU-CPBS-GOSU-QCTA-CRSU-GPMR-GPTG-GC3I-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

24. Which of the following is an advantage of status quo pricing?

a. It leads to optimal pricing of a product.
b. It maintains an organization's differential advantage.
c. It gives greater importance to the demand and costs of a product.
d. It requires little planning.
ANSWER: d
RATIONALE: Status quo pricing requires little planning because it involves just copying the competitions'
pricing policies. Status quo pricing maintains existing prices or meets the competition's
prices. See 20-2: Pricing Objectives
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.02
TOPICS: A-head: Pricing Objectives
Bloom's: Understand
BUSPROG: Analytic
Pricing Strategies
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: KELJT0FUJXXEPHG2T493
QUESTION ID: JFND-GO4G-G3BU-CTJT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJO-GFUD-K3B3-GYAU-QC5R-
GESU-QAUF-CESU-YAJO-GOSU-YPBU-CASU-E3J3-CRHG-NQJS-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

25. Why are more and more companies turning to dynamic pricing?
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Chapter 20

a. To help adjust prices

b. To implement bait pricing
c. To implement free on board origin pricing
d. To establish inelasticity of demand
ANSWER: a
RATIONALE: More and more companies are turning to dynamic pricing to help adjust prices. Dynamic
pricing is a strategy whereby prices are adjusted over time to maximize a company's
revenues. See 20-4: The Power of Dynamic Pricing and Yield Management Systems
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.04
TOPICS: A-head: The Power of Dynamic Pricing and Yield Management Systems
Bloom's: Understand
BUSPROG: Analytic
Dynamic Pricing
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: KRQS4R9ZXA964FXJ3082
QUESTION ID: JFND-GO4G-G3BU-CTJO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJI-GYHU-N3MN-GCHD-1A3T-
CASU-RPDF-CESS-NPTI-GOSU-EPUD-8RSU-QQBS-CFTU-RP3S-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

26. Although many factors can influence the price of a product, the primary determinants are:
a. the costs of manufacturing and distributing the product.
b. the demand for the product and the cost to the seller for the product.
c. the demand by consumers and the perceived quality of the product.
d. the distribution and promotion strategies for the product.
ANSWER: b
RATIONALE: Although many factors can influence price, the primary determinants are the demand for the
good or service and the cost to the seller. The quantity of a product that will be sold in the
market at various prices for a specified period is called the demand. See 20-3: The Demand
Determinant of Price
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.03
TOPICS: A-head: The Demand Determinant of Price
Bloom's: Understand
BUSPROG: Analytic
Demand
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DATE CREATED: 5/1/2015 4:22 PM

DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: LWNNDABRFF7XA002K277
QUESTION ID: JFND-GO4G-G3BU-CTJZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJO-GFUG-C3JI-CRAU-NCUB-GOSU-
RPJA-8RSU-EP3O-GOSS-K3TZ-GWSU-CQJA-GFTG-GA3O-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

27. During the hot summer months, the Nick Price Golf School offers a 25 percent reduction on its golf lessons to attract
golfers during the off-season. Which of the following is exemplified in this scenario?
a. The power of yield management systems
b. The advantage of markup pricing
c. The relationship between price and quality
d. The use of price as a promotional tool
ANSWER: d
RATIONALE: This scenario illustrates the use of price as a promotional tool. Price is often used as a
promotional tool to increase consumers' interest. See 20-6: Other Determinants of Price
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Apply
BUSPROG: Reflective Thinking
Promotion Strategies
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: MBTL96EL4C7DKMEV6654
QUESTION ID: JFND-GO4G-G3BU-CTJS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJT-CI1U-QCDB-CO3U-R3TS-CCSU-
QQBS-CESU-1P3A-GOSU-Y3BZ-CESU-QCTZ-GY4U-GPBW-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

28. At Starmart, Riya saw a box of collector's edition comic books. Each book was priced at $28.50, but a customer who
bought five of the books was required to pay only $19.99 for each book. Riya bought one book and her friend bought five
books. What was the retailer's revenue from this purchase?
a. $158.51
b. $19.99
c. $28.50
d. $128.45
ANSWER: d
RATIONALE: The retailer's revenue from this purchase is $128.45. Revenue is the price charged to
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customers multiplied by the number of units sold. $28.50 + ($19.99 x 5) = $128.45. See 20-1:
The Importance of Price
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.01
TOPICS: A-head: The Importance of Price
Bloom's: Apply
BUSPROG: Reflective Thinking
Pricing Decisions
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: PZRFSRMFVXUVPCNJN214
QUESTION ID: JFND-GO4G-G3BU-CTJI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMMR-GCHD-EPBZ-CE3U-QQJS-
GASU-NPTW-CRSS-E3BS-GOSS-NCUF-GYSU-ECBA-GOAG-RCDG-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

29. Which of the following is true about shopping bots?

a. They encourage a more creative use of advertising.
b. They create opportunities for prestige pricing.
c. They search the Web for the best price for a product.
d. They create inelastic demand.
ANSWER: c
RATIONALE: A shopping bot is a program that searches the Web for the best price for a particular item that
one wishes to purchase. Shopping bots theoretically give pricing power to consumers. See
20-6: Other Determinants of Price
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Understand
BUSPROG: Analytic
Internet
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: QFPCEE2EWXCVK729Z066
QUESTION ID: JFND-GO4G-G3BU-CTJW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMMD-CP1U-KAJ3-GBOU-QP5B-
GRSS-CPBO-CESU-EA3O-GOSU-EQMN-GHSU-R3T3-GE5G-GAUF-E7JI-YT4D-JFNN-
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4OTI-GO4W-NQNBEE

30. Which of the following is true of products in the introduction stage of their life cycle?
a. Their prices will rise dramatically as they move into the specialty goods category.
b. They experience price increases that are cost initiated.
c. Their prices are usually set high.
d. They experience an elastic demand in the core of the market.
ANSWER: c
RATIONALE: Management usually sets prices high during the introductory stage. One reason is that it
hopes to recover its development costs quickly. See 20-6: Other Determinants of Price
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Understand
BUSPROG: Analytic
Product Life Cycle
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: RKFCYAGR6EMSK80EX063
QUESTION ID: JFND-GO4G-G3BU-CT1N
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJ1-CP1D-O3MF-GFUD-NC5D-CESS-
GCDF-8YSU-RCMB-GOSU-CCJS-GWSU-GQBO-GW5U-YA3I-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

31. What happens when demand is elastic?

a. As price goes up, revenue goes down.
b. As price goes down, revenue goes down.
c. As price goes up, revenue goes up.
d. As price goes up, revenue does not change.
ANSWER: a
RATIONALE: Elastic demand is a situation in which consumer demand is sensitive to price changes. The
demand is said to be elastic if: (1) price goes up and revenue goes down (2) price goes down
and revenue goes up. See 20-3: The Demand Determinant of Price
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.03
TOPICS: A-head: The Demand Determinant of Price
Bloom's: Understand

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BUSPROG: Analytic
Elasticity of Demand
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: RYZY31TQVJ8DSFU24547
QUESTION ID: JFND-GO4G-G3BU-CT1B
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJW-CRHU-GCUF-GIOS-KCMD-
GWSS-RPMR-CESU-NPBA-GOSU-Q3UF-COSU-ECMG-GW4G-GPDN-E7JI-YT4D-
JFNN-4OTI-GO4W-NQNBEE

32. Consumers are more likely to perceive the value of a product to be less than its cost if:
a. the product's price is set too high.
b. the product's manufacturer gains very little profit from the product.
c. the product has an inelastic demand.
d. the product's demand and supply attain the state of price equilibrium.
ANSWER: a
RATIONALE: If, in consumers' minds, a price is set too high, the perceived value will be less than the cost,
and sale opportunities will be lost. To earn a profit, managers must choose a price that is not
too high or too low—a price that equals the perceived value to target consumers. See 20-1:
The Importance of Price
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.01
TOPICS: A-head: The Importance of Price
Bloom's: Remember
BUSPROG: Analytic
Pricing
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: SFPZSCTAYNVXDL48V064
QUESTION ID: JFND-GO4G-G3BU-CTT3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJU-GY4U-K3UB-8Y3G-NCJ3-GESU-
YQJA-CESS-RPJ3-GOSU-NQBA-GHSU-RPDD-8R4U-13JA-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

33. Which of the following is a similarity between broad-based shopping bots and niche-oriented shopping bots?
a. Both search restricted government Web sites.
b. Both operate using a Yellow Pages type of model in that they list every retailer they can find.
c. Both search for only one type of product.
d. Both theoretically give pricing power to consumers.
ANSWER: d
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RATIONALE: Both broad-based type and niche-oriented type theoretically give pricing power to the
consumer. Both are shopping bots, a program that searches the Web for the best price for a
particular item that a consumer wishes to purchase. See 20-6: Other Determinants of Price
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Analyze
BUSPROG: Analytic
Internet
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: SGQLDVHCXPUJVKR4A899
QUESTION ID: JFND-GO4G-G3BU-CTTA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMMN-GTOU-OPBZ-GW5S-GA3S-
GWSU-O3MB-8RSU-OAUB-GOSS-NQBW-GCSU-Q3JO-CFTD-OCB1-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

34. Pierre's Ice Cream Company produces ultra-rich ice cream, which it sells in Cleveland, Ohio, and other neighboring
places. Last year, its actual return on investment exceeded its target return on investment (ROI) for that fiscal year. The
following results were found on its financial statements: Gross revenues: $250,000 Total assets: $500,000 Gross profits:
$100,000 Total liabilities: $200,000 Net profits after tax: $ 50,000 Owner's equity: $300,000 What was the actual ROI for
Pierre's Ice Cream Company?
a. 6.67 percent
b. 10 percent
c. 22 percent
d. 28 percent
ANSWER: b
RATIONALE: Return on investment (ROI) is equal to net profits after taxes divided by total assets. $50,000
/ $500,000 = 10 percent. See 20-2: Pricing Objectives
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.02
TOPICS: A-head: Pricing Objectives
Bloom's: Apply
BUSPROG: Reflective Thinking
Pricing Strategies
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: TTHLF3TGGCCE8E63H464
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QUESTION ID: JFND-GO4G-G3BU-CT1G

QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMMR-G3UG-EPBT-GC5U-NQMR-
GOSU-OAJO-CESU-OQJU-GOSU-EPT1-GCSU-13T1-CO3G-CP5B-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

35. Profit-oriented pricing objectives include:

a. target return on investment.
b. target market share.
c. sales maximization.
d. status quo pricing.
ANSWER: a
RATIONALE: Profit-oriented pricing objectives include profit maximization, satisfactory profits, and target
return on investment. See 20-2: Pricing Objectives
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.02
TOPICS: A-head: Pricing Objectives
Bloom's: Remember
BUSPROG: Analytic
Pricing Objectives
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: TUZX2JGRUU8JU44S5331
QUESTION ID: JFND-GO4G-G3BU-CT1F
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMMN-8R5S-NQMR-GBOS-GPBU-
GASU-G3UD-8YSU-YPDG-GOSU-R3UF-GYSS-R3B3-GBUG-GP31-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

36. At a local retail store, Randi saw a bag of daffodil flower bulbs and a box of plant fertilizer. The items, which were
sold together, retailed at $28.50 but were marked down to $19.99. The $19.99 is the:
a. revenue.
b. price.
c. profit.
d. liquidity value.
ANSWER: b
RATIONALE: The $19.99 is the price of the product. Price is that which is given up in exchange to acquire
a product. See 20-1: The Importance of Price
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
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LEARNING OBJECTIVES: MKTG.LAMB.15.20.01

TOPICS: A-head: The Importance of Price
Bloom's: Apply
BUSPROG: Reflective Thinking
Pricing Decisions
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: VNFT0WGGRN5180KQU357
QUESTION ID: JFND-GO4G-G3BU-CT1R
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJZ-GA3D-OPBI-GP1G-KA3S-CASU-
CATI-8YSU-1CJ3-GOSU-1P3W-GWSU-YPB1-CO4G-EPMF-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

37. Which of the following statements is true about the Internet?

a. The Internet has shifted all shopping power to consumers
b. Consumer reviews on the Internet about various products tend to be equal in quality
c. Business-to-business auctions on the Internet are likely to be the dominant form in the future
d. Extranets are programs that search the Internet for the best price for a particular product
ANSWER: c
RATIONALE: Business-to-business auctions on the Internet are likely to be the dominant form in the future. The
business-to-business auction world is shifting from haggling over prices to niggling over parameters
of the deal. See 20-6: Other Determinants of Price
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: A-head: Other Determinants of Price
Bloom's: Understand
BUSPROG: Analytic
Internet
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: WHGSMHAVSC6UE8P9R937
QUESTION ID: JFND-GO4G-G3BU-CT1D
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJW-GWHG-NPJ3-CE5D-O3T3-GOSS-
RCMN-8YSU-RA3T-GOSU-RCDN-8YSS-CAUN-GH4U-NCT3-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

38. Shopping bots theoretically give pricing power to:

a. consumers.
b. wholesalers.
c. retailers.
d. agents.
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ANSWER: a
RATIONALE: Shopping bots theoretically give pricing power to consumers. The more information that a
shopper has, the more efficient his or her purchase decision will be. See 20-6: Other
Determinants of Price
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Remember
BUSPROG: Analytic
Internet
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: XARRZR78XF1AFNX5S097
QUESTION ID: JFND-GO4G-G3BU-CTTU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJ3-GH5D-Q3BA-GRAS-C3JW-GHSU-
EQBU-8RSU-EP3U-GOSU-KAMD-GWSS-NCDR-CO4D-NA5G-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

39. At the end of summer, the Gloomin' Garden Inc. reduced the price on all of its plants, fertilizers, and potting soil by 50
percent in order to liquidate this inventory. What type of pricing strategy has been used by Gloomin' Garden Inc.?
a. Supply oriented pricing
b. Sales maximization
c. Target return on investment
d. Satisfactory profit
ANSWER: b
RATIONALE: The type of pricing strategy used by Gloomin' Garden Inc. is sales maximization. A firm with
the objective of maximizing sales ignores profits, competition, and the marketing
environment as long as sales are rising. Sales maximization can also be effectively used on a
temporary basis to sell excess inventory. See 20-2: Pricing Objectives
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.02
TOPICS: A-head: Pricing Objectives
Bloom's: Apply
BUSPROG: Reflective Thinking
Pricing Strategies
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: XKHKBHL6Q708J0Q5L769
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QUESTION ID: JFND-GO4G-G3BU-CTT1

QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMMF-GR4U-K3DF-GJ1U-QQMB-
CRSS-NC3U-CESS-GCUR-GOSS-KATA-GWSU-C3DN-8R3S-RC3S-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

40. Dynamic pricing is used to:

a. implement bait pricing to get more loyal customers.
b. perform price discrimination among its customers.
c. raise prices to maximize a company's revenues.
d. attain price equilibrium.
ANSWER: c
RATIONALE: Dynamic pricing is a strategy whereby prices are adjusted over time to maximize a
company's revenues. When competitive pressures are high, a company must know when it
can raise prices to maximize its revenues. See 20-4: The Power of Dynamic Pricing and
Yield Management Systems
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.04
TOPICS: A-head: The Power of Dynamic Pricing and Yield Management Systems
Bloom's: Understand
BUSPROG: Analytic
Dynamic Pricing
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: ZNJQ4FCFC8PGX0NCS513
QUESTION ID: JFND-GO4G-G3BU-CTTT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMMB-CC3U-CCJA-GW3U-O3T3-
8YSU-ECTI-CESU-O3UD-GOSU-YQJU-GRSS-NCUB-CPTU-1CTO-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

41. When consumer demand is sensitive to price changes,__________occurs.

ANSWER: elastic demand
RATIONALE: When consumer demand is sensitive to price changes, elastic demand occurs. Conversely,
inelastic demand means that an increase or a decrease in price will not significantly affect
demand for the product. See 20-3: The Demand Determinant of Price
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.03
TOPICS: A-head: The Demand Determinant of Price
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Bloom's: Remember
BUSPROG: Analytic
Elasticity of Demand
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: ADUAE54TMMB669TST120
QUESTION ID: JFND-GO4G-G3BU-CTTO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMMG-8FTU-EP3U-G71G-EPT1-8RSS-
KA3A-8RSU-NC3T-GOSS-R3TO-8RSU-1QDG-GHAS-C3BO-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

42. At a price of $2,000, the demand for Ranger 60 mountain bikes from Cloyd's Inc. is 300, but only 191 bikes are being
made. At a price of $2,300, the demand for the bikes is 250, and exactly 250 bikes are being made. If Cloyd's sells each
one of the bikes at a price lower than $2,300,__________.
ANSWER: a shortage of bikes will be created
RATIONALE: If Cloyd's sells each one of the bikes at a price lower than $2,300, a shortage of supply will
result. When the price of a product reduces, the demand will increase, and the product will be
in short supply. At $2,300, the demand and supply for Ranger 60 mountain bikes attain a
price equilibrium. Any price below $2,300 will result in shortage of supply, and any price
above $2,300 will result in a surplus. See 20-3: The Demand Determinant of Price
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.03
TOPICS: A-head: The Demand Determinant of Price
Bloom's: Apply
BUSPROG: Reflective Thinking
Demand
Pricing
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: APRPAB58LH3X3HG6X513
QUESTION ID: JFND-GO4G-G3BU-CTTZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMMN-GOHG-KQMF-CP1U-RAJU-
GASS-KPJU-8RSU-NCT3-GOSU-R3UB-GHSU-OAMF-GA5U-E3MR-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

43. A cost that changes with the level of output is called a(n)__________cost.
ANSWER: variable
RATIONALE: A cost that changes with the level of output is called a variable cost. An example of variable
cost is the cost of materials. See 20-5: The Cost Determinant of Price
POINTS: 1
DIFFICULTY: Challenging
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QUESTION TYPE: Completion

HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.05
TOPICS: A-head: The Cost Determinant of Price
Bloom's: Remember
BUSPROG: Analytic
Cost-based Pricing
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: CESGYQVSC3VJXADJ3389
QUESTION ID: JFND-GO4G-G3BU-CTTS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJZ-GA4U-E3MR-GE3G-NPDG-GESS-
CPJ1-8YSU-RAJO-GOSS-R3BO-CASU-KA5B-CW5U-QQBZ-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

44. When Jerry took delivery of his brand new Karuaf automobile, he was filled with pleasure and excitement as Karuaf is
a very expensive brand. This is an example of the__________effect associated with the price-quality relationship.
ANSWER: hedonistic
RATIONALE: This is an example of the hedonistic effect associated with the price-quality relationship.
High purchase prices may create feelings of pleasure and excitement associated with
consuming higher-priced products. This is the hedonistic effect. See 20-6: Other
Determinants of Price
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Apply
BUSPROG: Reflective Thinking
Price-quality Relationships
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: GHTG4GHRF2KHYCRN9155
QUESTION ID: JFND-GO4G-G3BU-CTTI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMMR-COAU-QP3W-8BTD-QQDR-
CASU-YPB1-8YSU-CC3T-GOSU-EPDN-GWSU-OC3T-CO3D-EAUG-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

45. Randy's Apparels Inc. plans to expand its customer base and product line. It introduces a new line of designer wear
that are very expensive and exclusively available at Randy's. It emphasizes the high quality and exclusivity of this new
line of products in its advertisements. In this case, Randy's Apparels has used__________for the new line of products.
ANSWER: prestige pricing
RATIONALE: Randy's Apparels has used prestige pricing to promote its new line of high-quality products.
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This is an example of pricing strategy used as a promotion strategy. Prestige pricing is

charging a high price to help promote a high-quality image. See 20-6: Other Determinants of
Price
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Apply
BUSPROG: Reflective Thinking
Promotion Strategies
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: MGKC0TFFMQN9L33K8932
QUESTION ID: JFND-GO4G-G3BU-CTTW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJW-GCAU-EC3T-8Y4D-Y3TO-8RSS-
EPBO-CRSU-QCTO-GOSS-NPJS-CESU-O3BU-CA4U-1QB1-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

46. Diffusion Research Company specializes in conducting market research for various firms. When it receives proposals
for new research, its management will first estimate the cost of conducting the research and producing and delivering the
final research report. The management then adds 30 percent to that cost estimate. This becomes the price estimate given to
the potential research client. This suggests that Diffusion Research Company uses a__________pricing objective.
ANSWER: profit-oriented
RATIONALE: This suggests that Diffusion Research Company uses a profit-oriented pricing objective. The
company aims to earn a greater return on investment. Target return on investment is one of
the most common types of profit-oriented pricing objectives. See 20-2: Pricing Objectives
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.02
TOPICS: A-head: Pricing Objectives
Bloom's: Apply
BUSPROG: Reflective Thinking
Pricing Strategies
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: QSXQTYF0KHV2TEAT1560
QUESTION ID: JFND-GO4G-G3BU-CO4N
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJS-GF1S-RAJI-GBOU-NCUN-CASU-
1QBS-8RSU-RCTS-GOSS-KPDB-GYSU-N3DB-GJTS-NPUN-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
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47. Jaggd Inc., an electronic goods manufacturing company, was planning to launch its latest smartphone in the market.
Within the first few days of launching the phone, Jaggd wanted to earn as much revenue as the cost incurred in
manufacturing the phone. So, it priced the phone about as high as the market would allow. In this case, Jaggd entered the
market with a__________approach to pricing the smartphone.
ANSWER: profit maximization
RATIONALE: Jaggd entered the market with a profit maximization approach to pricing the smartphone.
Profit maximization means setting prices so that total revenue is as large as possible relative
to total costs. See 20-2: Pricing Objectives
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.02
TOPICS: A-head: Pricing Objectives
Bloom's: Apply
BUSPROG: Reflective Thinking
Pricing Strategies
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: UAUL0RLCMB9QKPN6A437
QUESTION ID: JFND-GO4G-G3BU-CO4B
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJI-GWHS-KCB1-GC3D-Y3UD-
GESU-13BW-8RSU-YATO-GOSU-OA5R-GRSU-KQMD-8R4D-EP5G-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

48. When the price of a product is set at a level where demand and supply are the same, a state of__________has been
achieved.
ANSWER: price equilibrium
RATIONALE: When demand and supply are equal, a state called price equilibrium is achieved. At
equilibrium, there is no inclination for prices to rise or fall. See 20-3: The Demand
Determinant of Price
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.03
TOPICS: A-head: The Demand Determinant of Price
Bloom's: Remember
BUSPROG: Analytic
Demand
Pricing
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: XKNEW9WEDMG1S0RQW245
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QUESTION ID: JFND-GO4G-G3BU-CO33

QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJI-COAU-GP31-CW3S-EQDF-GHSU-
QC3Z-8RSU-YC3A-GOSS-EAUR-GESS-C3BO-GO5U-QCBA-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

49. The quantity of a product that people will buy is most likely to decrease as the product's__________increases.
ANSWER: price
RATIONALE: The quantity of a product that people will buy depends on its price. The higher the price, the
fewer goods or services consumers will demand. Conversely, the lower the price, the more
goods or services they will demand. See 20-3: The Demand Determinant of Price
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.03
TOPICS: A-head: The Demand Determinant of Price
Bloom's: Understand
BUSPROG: Analytic
Demand
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: YQAGF8VB29BJWJGES706
QUESTION ID: JFND-GO4G-G3BU-CO3A
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJA-GA4U-KAT1-CCAD-KAUB-
CRSS-NCT1-8RSU-RQBO-GOSS-CC3I-GYSU-NA5D-GW3G-KATO-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

50. __________costs do not change as output is increased or decreased.

ANSWER: Fixed
RATIONALE: A cost that does not change with the level of output is called a fixed cost. An example of
fixed costs include rent and executives' salaries. See 20-5: The Cost Determinant of Price
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.05
TOPICS: A-head: The Cost Determinant of Price
Bloom's: Remember
BUSPROG: Analytic
Cost-based Pricing
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: ZSSKAPZJBDNQ23G42656

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QUESTION ID: JFND-GO4G-G3BU-CO4G

QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJU-GOHD-NA3Z-GWHG-CA5R-
GOSU-EQJ1-8YSU-C3J3-GOSU-NQDG-CWSS-KAUN-8BOU-RAUR-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

51. Jade claims that a consumer's psychological state of mind plays a vital role in how he perceives the price and quality
of a product. Provide arguments to support his claim.
ANSWER: A consumer's psychological state at the time of purchase has a significant impact on his
perception of price and quality. If a person has recently been worrying about debt and
spending, he is more likely to focus on value than quality when making a purchase. Thus, he
might perceive a low price as an indicator of value and opt for a product with a lower price
tag. If he has spent the morning troubleshooting a failing product, he is more likely to
perceive a low price as an indicator of low quality. He will likely opt for a product with a
higher price tag, based on the belief that higher price equates to better craftsmanship.
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Essay
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Analyze
BUSPROG: Analytic
Price-quality Relationships
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: NJKZVY55N48R53BD2066
QUESTION ID: JFND-GO4G-G3BU-CO4F
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJS-GWHD-RA3I-GOHD-KP33-
GRSU-NPUD-CRSS-CAJW-GOSS-KAT1-CRSU-NCBT-GWHU-N3BW-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

52. Justify the statement, “Shopping bots have made the purchase decisions of consumers more efficient."
ANSWER: The Internet and extranets are linking people, machines, and companies around the globe—
and connecting sellers and buyers as never before. These links are enabling buyers to
compare products and prices, putting them in a better bargaining position. A shopping bot is
a program that searches the Web for the best price for a particular item that one wishes to
purchase. Shopping bots theoretically give pricing power to the consumer. The more
information that the shopper has, the more efficient his or her purchase decision will be.
Shopping bots have been around for quite some time, and security protocols have been
developed by some Internet retailers to limit bot trawls. Still, shopping bots remain a
powerful and impactful marketing tool to this day.
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Essay
HAS VARIABLES: False
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LEARNING OBJECTIVES: MKTG.LAMB.15.20.06

TOPICS: A-head: Other Determinants of Price
Bloom's: Analyze
BUSPROG: Analytic
Extranets
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: NXHBG383PSFLPSJP5057
QUESTION ID: JFND-GO4G-G3BU-CO4R
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMMB-GW5G-KA3O-CA5G-GP3T-
GWSU-OCB1-8RSU-GA3A-GOSU-Q3DD-GWSS-RPBZ-8FUG-KPBI-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

53. How do manufacturers benefit from prestige pricing?

ANSWER: Prestige pricing is charging a high price to help promote a high-quality image. A successful
prestige pricing strategy requires a retail price that is reasonably consistent with consumers'
expectations. When a purchase decision involves uncertainty, consumers tend to rely on a
high price as a predictor of good quality. Reliance on price as an indicator of quality seems to
occur for all products, but it reveals itself more strongly for some items than for others.In
general, when perceived higher- and lower-quality products are offered in settings where
consumers have difficulty making comparisons, then price promotions have an equal effect
on sales. Comparisons are more difficult in end-of-aisle displays, feature advertising, and the
like. Knowledgeable merchants take these consumer attitudes into account when devising
their pricing strategies.
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Essay
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Analyze
BUSPROG: Analytic
Promotion Strategies
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: RSVL2ZU3S0SK923WB316
QUESTION ID: JFND-GO4G-G3BU-CO4D
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJS-GHAU-RCBS-8FTD-GQBW-
GCSU-QATU-CRSU-C3JT-GOSU-OP3Z-CASU-1C3I-GEAS-RCDR-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

54. Why do manufacturers of products that are in the maturity stage of the product life cycle prefer to offer similar prices?
ANSWER: Maturity stage in a product's life cycle usually brings further price decreases as competition
increases and inefficient, high-cost firms are eliminated. Distribution channels become a
significant cost factor, however, because of the need to offer wide product lines for highly
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segmented markets, extensive service requirements, and the sheer number of dealers
necessary to absorb high-volume production. The manufacturers that remain in the market
toward the end of the maturity stage typically offer similar prices. At this stage, price
increases are usually cost initiated, not demand initiated. Nor do price reductions in the late
phase of maturity stimulate much demand. Because demand is limited and producers have
similar cost structures, the remaining competitors will probably match price reductions.
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Essay
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Analyze
BUSPROG: Analytic
Product Life Cycle
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CGI: YGWL9SWJAGJUKCYLQ190
QUESTION ID: JFND-GO4G-G3BU-CO3U
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJZ-CO5G-CA5B-GA3G-GQDR-
GASU-G3DF-CRSS-KQBU-GOSU-YCBW-GESU-YPMG-GEAS-N3JT-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

55. Diffusion Research Company specializes in conducting market research for various firms. When it receives proposals
for new research, its management will first estimate the cost of conducting the research and producing and delivering the
final research report. The management then adds 30 percent to that cost estimate. This becomes the price estimate given to
the potential research client. This suggests that Diffusion Research Company uses a _____ pricing objective.
a. profit-oriented
b. market share maximization
c. status quo
d. sales maximization
ANSWER: a
RATIONALE: This suggests that Diffusion Research Company uses a profit-oriented pricing objective. The
company aims to earn a greater return on investment. Target return on investment is one of
the most common types of profit-oriented pricing objectives. See 20-2: Pricing Objectives
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.02
TOPICS: A-head: Pricing Objectives
Bloom's: Apply
BUSPROG: Reflective Thinking
Pricing Strategies
DATE CREATED: 5/26/2015 2:22 AM
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DATE MODIFIED: 5/26/2015 2:52 AM

CUSTOM ID: QSXQTYF0KHV2TEAT1560
QUESTION ID: JFND-GO4G-GR3W-KP4B
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJS-GJ1D-CPUN-8FUD-OPTZ-CESU-
OP3I-8RSU-NCBW-GOSS-GAJO-CCSU-C3BO-CA3G-NCTU-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

56. Jaggd Inc., an electronic goods manufacturing company, was planning to launch its latest smartphone in the
market.Within the first few days of launching the phone,Jaggd wanted to earn as much revenue as the cost incurred in
manufacturing the phone. So, it priced the phoneabout as high as the market would allow. In this case,Jaggd entered the
market with a _____ approach to pricing the smartphone.
a. market share pricing
b. profit maximization
c. demand-oriented
d. sales maximization
ANSWER: b
RATIONALE: Jaggd entered the market with a profit maximization approach to pricing the smartphone.
Profit maximization means setting prices so that total revenue is as large as possible relative
to total costs. See 20-2: Pricing Objectives
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.02
TOPICS: A-head: Pricing Objectives
Bloom's: Apply
BUSPROG: Reflective Thinking
Pricing Strategies
DATE CREATED: 5/26/2015 2:24 AM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: UAUL0RLCMB9QKPN6A437
QUESTION ID: JFND-GO4G-GR3W-KP33
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJ1-CAAD-YPJA-CEHU-KQBS-
COSU-GCT3-8YSU-OPDG-GOSS-EQBT-GHSS-EC3U-8YAD-RQMB-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

57. The quantity of a product that people will buy is most likely to decrease as the product’s _____ increases.
a. distribution
b. quality
c. price
d. promotion
ANSWER: c
RATIONALE: The quantity of a product that people will buy depends on its price. The higher the price, the
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fewer goods or services consumers will demand. Conversely, the lower the price, the more
goods or services they will demand. See 20-3: The Demand Determinant of Price
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.03
TOPICS: A-head: The Demand Determinant of Price
Bloom's: Understand
BUSPROG: Analytic
The Nature of Demand
DATE CREATED: 5/26/2015 2:27 AM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: YQAGF8VB29BJWJGES706
QUESTION ID: JFND-GO4G-GR3W-KP4F
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJ1-8R5U-EQJO-GPOU-RCDB-GYSS-
NPJO-CRSS-E3DG-GOSU-N3JA-CWSU-KC5R-CEHG-N3DN-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

58. When the price of a product is set at a level where demand and supply are the same, a state of _____ has been
achieved.
a. price equilibrium
b. stability
c. inelastic demand
d. symmetry
ANSWER: a
RATIONALE: When demand and supply are equal, a state called price equilibrium is achieved. At
equilibrium, there is no inclination for prices to rise or fall. See 20-3: The Demand
Determinant of Price
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.03
TOPICS: A-head: The Demand Determinant of Price
Bloom's: Remember
BUSPROG: Analytic
How Demand and Supply Establish Prices
DATE CREATED: 5/26/2015 2:29 AM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: XKNEW9WEDMG1S0RQW245
QUESTION ID: JFND-GO4G-GR3W-KP3O
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJ1-GY3D-GC5N-CPTS-E3UN-GASU-
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KQJI-CESU-13MB-GOSS-EATI-GWSS-RCDD-GR3U-KC3I-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

59. At a price of $2,000, the demand for Ranger 60 mountain bikes from Cloyd’s Inc. is 300, but only 191 bikes are being
made. At a price of $2,300, the demand for the bikes is 250, and exactly 250 bikes are being made. If Cloyd’ssells each
one of the bikes at a price lower than $2,300, _____.
a. a shortage of bikes will be created
b. the number of bikes being made will increase drastically
c. an inelastic demand for the bikes will be created
d. the demand and supply for the bike will attain equilibrium
ANSWER: a
RATIONALE: If Cloyd’ssells each one of the bikes at a price lower than $2,300, a shortage of supply will
result. When the price of a product reduces, the demand will increase, and the product will be
in short supply. At $2,300, the demand and supply for Ranger60 mountain bikes attain a price
equilibrium. Any price below $2,300 will result in shortage of supply, and any price above
$2,300 will result in a surplus. See 20-3: The Demand Determinant of Price
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.03
TOPICS: A-head: The Demand Determinant of Price
Bloom's: Apply
BUSPROG: Reflective Thinking
How Demand and Supply Establish Prices
DATE CREATED: 5/26/2015 2:31 AM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: APRPAB58LH3X3HG6X513
QUESTION ID: JFND-GO4G-GR3W-KP3I
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJO-8F1U-QAJU-C3OU-QCJW-GRSU-
KCJZ-8YSS-CAJU-GOSU-N3TO-CRSS-NCDB-GW4U-K3TW-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

60. When consumer demandis sensitive to price changes, _____ occurs.

a. inelastic demand
b. sales maximization
c. elastic demand
d. profit maximization
ANSWER: c
RATIONALE: When consumer demand is sensitive to price changes, elastic demand occurs. Conversely,
inelastic demand means that an increase or a decrease in price will not significantly affect
demand for the product. See 20-3: The Demand Determinant of Price
POINTS: 1
DIFFICULTY: Easy

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QUESTION TYPE: Multiple Choice

HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.03
TOPICS: A-head: The Demand Determinant of Price
Bloom's: Remember
BUSPROG: Analytic
Elasticity of Demand
DATE CREATED: 5/26/2015 2:33 AM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: ADUAE54TMMB669TST120
QUESTION ID: JFND-GO4G-GR3W-KPNB
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJO-8YAS-GCBI-G3TD-KC3A-CCSU-
NPTZ-CESS-NA5G-GOSU-ECBW-CASU-OPDG-GPOS-N3UN-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

61. A cost that changes with the level of output is called a(n) _____ cost.
a. liquidity
b. variable
c. fixed
d. indirect
ANSWER: b
RATIONALE: A cost that changes with the level of output is called a variable cost. An example of variable
cost is the cost of materials. See 20-5: The Cost Determinant of Price
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.05
TOPICS: A-head: The Cost Determinant of Price
Bloom's: Remember
BUSPROG: Analytic
Cost-based Pricing
DATE CREATED: 5/26/2015 2:36 AM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: CESGYQVSC3VJXADJ3389
QUESTION ID: JFND-GO4G-GR3W-KPBA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJZ-GO4G-GAJ1-GAAD-QQB1-
GWSU-K3MF-CRSU-EQBW-GOSS-RQDB-CWSS-RPMN-GB1D-1C33-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

62. _____ costs do not change as output is increased or decreased.

a. Marginal
b. Variable
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c. Fixed
d. Total
ANSWER: c
RATIONALE: A cost that does not change with the level of output is called a fixed cost. An example of
fixed costsinclude rent and executives’ salaries. See 20-5: The Cost Determinant of Price
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.05
TOPICS: A-head: The Cost Determinant of Price
Bloom's: Remember
BUSPROG: Analytic
Cost-based Pricing
DATE CREATED: 5/26/2015 2:40 AM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: ZSSKAPZJBDNQ23G42656
QUESTION ID: JFND-GO4G-GR3W-KPBU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJZ-GH3U-QP5F-CAHU-KCJZ-
CWSU-QQJW-CESU-K3TU-GOSU-RATT-CESS-EA3Z-GPOS-EQMN-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

63. Randy’s Apparels Inc. plans to expand its customer base and product line. It introduces a new line of designer wear
that are very expensive and exclusively available at Randy’s. It emphasizes the high quality and exclusivityof this new
line of products in its advertisements. In this case, Randy’s Apparels has used _____ for the new line of products.
a. predatory pricing
b. leader pricing
c. bait pricing
d. prestige pricing
ANSWER: d
RATIONALE: Randy’s Apparels has used prestige pricing to promote its new line of high-quality products.
This is an example of pricing strategy used as a promotion strategy. Prestige pricing is
charging a high price to help promote a high-quality image. See 20-6: Other Determinants of
Price
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Apply
BUSPROG: Reflective Thinking
Promotion Strategies
DATE CREATED: 5/26/2015 2:43 AM
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DATE MODIFIED: 5/26/2015 2:52 AM

CUSTOM ID: MGKC0TFFMQN9L33K8932
QUESTION ID: JFND-GO4G-GR3W-KPBO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMJA-CT1D-NC3O-CW5D-QQBT-
GWSU-OPJZ-8RSS-CPTT-GOSS-NCBT-CWSU-CCT3-CR3U-1P3W-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

64. When Jerry took delivery of his brand new Karuaf automobile, he was filled with pleasure and excitement as Karuaf is
a very expensive brand. This is an example of the _____ effect associated with the price-quality relationship.
a. durability
b. allocative
c. prestige
d. hedonistic
ANSWER: d
RATIONALE: This is an example of the hedonistic effect associated with the price-quality relationship.
High purchase prices may create feelings of pleasure and excitement associated with
consuming higher-priced products. This is the hedonistic effect. See 20-6: Other
Determinants of Price
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.20.06
TOPICS: A-head: Other Determinants of Price
Bloom's: Apply
BUSPROG: Reflective Thinking
Price-quality Relationships
DATE CREATED: 5/26/2015 2:45 AM
DATE MODIFIED: 5/26/2015 2:52 AM
CUSTOM ID: GHTG4GHRF2KHYCRN9155
QUESTION ID: JFND-GO4G-GR3W-KPKN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-8YHS-KPBI-8F1G-GC5F-8Y3N-4QDG-GCH1-4CUG-GR4N-4CBZ-
CRH1-43B3-CPUD-KATW-8FDI-GWN8-EPRW-EMMG-CA5G-KP31-8BOU-RAJO-
CWSS-EC5F-8YSU-OPUR-GOSU-YPDR-CESU-R3BA-CA3U-EQJT-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

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