ENT UNIT 7

Which of the following are considered profit oriented objectives?

• Target return objective

• Market Share objective

• No price objective

• Sales growth objective

What governmental regulation eliminated price discrimination?

• Robinson Patman Act of 1936

• Sherman Antitrust Act of 1890

• The Clayton Antitrust Act of 1914

• Consumer Goods Pricing Act

Which of the following is NOT included in advantages of flexible pricing?

• Salespeople can make price adjustments considering customer relationship

• Salespeople can make price adjustments considering competitor’s prices

• Salespeople can make price adjustments considering profit margins

• Salespeople can make price adjustments considering the customer’s bargaining ability

What does it mean when a product has inelastic demand?

• A change in price will affect the demand

• A change in price has little affect on the demand

• The product will bounce back quickly from economic downturn

• The product will not bounce back quickly from economic downturn

Flexible price policies are NOT most common in which of the following?

• Channels

• Direct sales of business products

• Retail for expensive items

• Bulk products

What are seasonal discounts?

• Discounts offered to encourage buyers to buy in bulk

• Discounts offered to encourage buyers to buy earlier than what current demand requires

• Discounts offered to encourage buyers to pay a price more quickly

• Discounts offered temporarily to encourage immediate buying

Which of the following is NOT true of the penetration price policy?

• It uses low prices to sell a product to an entire market

• It is more attractive when selling larger quantities

• It is the same as introductory price dealing

• Is a good strategy when the elite market is small

Which of the following can companies do in the case of declining profit margins instead of passing the extra costs to customers?

• Reduce the size of the product instead of increasing the price

• Reduce the size of the product and increase the price

• Reduce the size of the product and decrease the price

• Companies must always pass the extra costs to customers

Which of following is an example of odd-even pricing?

• $105

• $110

• $119.99

• $120

Target return pricing is pricing to cover all costs and which of the following?

• A percentage return

• A target return

• A specific dollar return

• Either a percentage return or a specific dollar return, which are two ways of measuring target returns