Marketing and Pricing Strategies Quiz chapter 13/14

When establishing prices, a marketer's first step is to

• determine demand

• develop pricing objectives

• determine pricing methods

• select pricing policy

Running a big sale in order to generate enough cash flow to pay creditors is typical in a situation in which a firm's primary pricing objective is

• profit.

• survival.

• status quo.

• market share.

If Nabisco had established a pricing objective of selling one out of every three crackers consumed in the world, it would have established an objective based on

• market share.

• return of investment, (ROI).

• survival.

• cash flow.

If an organization sets prices to establish a premium quality image for its product, it would be using a ____ pricing objective

• market share

• product quality

• cash flow

• survival

Markup is measured either as a percentage of ____ or a percentage of ____.

• cost; profit

• demand; competition

• revenue; contribution margin

• selling price; cost

When determining markup as a percentage of cost, divide the markup amount by

• quantity

• revenue

• cost

• selling price

J.C. Penney's pays $16.00 for a six-ounce bottle of cologne and sells it for $24.00. Its markup as a percentage of cost is approximately ____ percent for this product.

• 50

• 30

• 60

• 33.3

When Sharp first introduced its line of graphing calculators, it set the price quite high; it has lowered the price as competitors have entered the market. The pricing strategy initially used by Sharp is called

• price skimming.

• odd-even pricing

• penetration pricing.

• customary pricing.

A penetration pricing strategy is particularly appropriate when demand is

• highly elastic.

• increasing.

• highly inelastic.

• decreasing

If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should use

• every day low prices.

• random discounting.

• price skimming

• penetration pricing.