Alex Final Exam Review - 4.01

Front

The determination of an exchange price acceptable to both the buyer and the seller of a product is called

Back

pricing

Front

In which of the following businesses is the business owner usually responsible for setting prices: Walmart, Sears, Java Joe’s Coffee Shop?

Back

Java Joe’s Coffee Shop

Front

In which of the following businesses would a separate department most likely be responsible for establishing prices: Local clothing store, Large national chain store like Lowes or Best Buy, Hair salon?

Back

Large national chain store like Lowes or Best Buy.

Front

A hair care company cannot afford to spend millions of dollars on research for the new, inexpensive shampoo it is developing, so the company must choose a less expensive form of research. This is an example of how pricing affects which of the following elements of the marketing mix: Place, Product

Back

Product

Front

Does pricing affect the amount of money a business spends on product research?

Back

Yes; companies will not spend as much on research for lower priced products.

Front

When companies increase the quality of materials used in the production of their products, their prices will tend to be

Back

higher

Front

A company with a high profit margin decides to advertise with a full-page, high-cost magazine ad. This is an example of how pricing influences

Back

promotion

Front

Which area of promotion will pricing affect?

Back

Advertising budget

Front

A company decides to save money by shipping its products by truck instead of by plane. Which marketing mix element is pricing influencing in this example?

Back

Place

Front

Covering all of a businesses costs is a pricing objective related to

Back

profitability