科特勒营销管理架构英文版练习题期末试题3

MKTG 649: Marketing Management, Spring 2011

Exam 3 Review Questions

∙NOTE: These questions are illustrative. in addition to studying this set, you should also consult the relevant chapters of your text and your lectures notes.

∙ Review this set and feel free to discuss with me, should you have any questions or concerns.

Chapter 12 – Developing Pricing Strategies and Programs

1. When customers buy on the basis of a reference price or because the price conveys a particular quality image to them, they are being influenced by __________.

a. value pricing

b. the psychology of pricing

c. the going-rates of competitors

d. value augmented by perception

e. an aggregated marketing plan for pricing

2. A common mistake in pricing is __________.

a. setting prices according to demand

b. revising prices too often

c. considering price and price competition as a key problem in marketing

d. ignoring costs when setting prices

e. setting prices independently of the rest of the marketing mix

3. A market segment has a large number of buyers. High initial price does not attract competitors to the market, but it communicates superior product image. In this segment a __________ is the best strategy.

a. market-skimming pricing

b. product quality leadership

c. maximum current revenue

d. market-penetration pricing

e. maximum sales growth

4. __________ are costs that do not vary with production or sales revenue.

a. Total costs

b. Average costs

c. Variable costs

d. Fixed costs

e. Marginal costs

5. Every time Nike doubles the total number of shoes it has sold, its marketing cost structure falls by a predictable percentage. This is an example of the __________.

a. leverage effect

b. activity-based pricing concept

c. experience curve

d. elasticity consumer exhibit for shoe prices

e. target costing principle

6. A maker of generic skateboard decks (blanks) for shops to customize incurs a variable cost of $12 per blank and fixed costs of $500,000. To earn a 20 percent markup on selling price, the manufacturer would charge __________ for each of the 100,000 blanks it expects to sell.

a. $14.40

b. $20.40

c. $21.25

d. $37.50

e. $33.33

7. Lucinda is a maker of wine charms (small, decorative jewelry loops put on wineglass stems to set your glass apart from those of other partiers), and has a variable cost of $4.50 per set of six and fixed costs of $16,000. To earn a 25 percent markup on selling price, Lucinda should charge __________ for each of the 4,000 sets of charms she expects to sell.

a. $5.63

b. $6.38

c. $8.63

d. $9.63

e. $11.33

8. Burlingvale Coats produces winter wear for Target. Their recently designed parkas for the northern stores cost about $30 to produce, and Burlingvale wishes to earn a 15 percent return on an investment of $5 million. If 75,000 parkas will be sold to Target, the appropriate price per item is __________.

a. $30.00

b. $37.50

c. $35.00

d. $40.00

e. $45.00

9. Nixon Watch Co. will incur fixed costs of $500,000 and unit variable costs of $20 on its new perpetual calendar quartz models. Nixon plans to set the wholesale price of the model at $50. To break even, Nixon must sell __________ units.

a. 9,876

b. 16,667

c. 18,333

d. 20,000

e. 25,000

10. __________ pricing is a method in which the company charges a fairly low price for a high-quality offering.

a. Markup

b. Psychological

c. Target-return

d. Perceived-value

e. Value

11. Every August, Fat Tire Ale hosts a bike race and beer tasting festival in Taos, New Mexico. During the festival, local retailers offer __________ pricing to entice people who come for the festival to come into their stores and buy their merchandise.

a. special-event

b. seasonal discount

c. promotional allowance

d. psychological discount

e. functional discount

Mini-Case 12-1

Fugazi is a punk band from Washington, D.C. The leader, Ian, insists that the band not focus on the commercial aspects of making music, so the band typically charges less than $10 for a live show, they sell no T-shirts or other Fugazi gear, and they will only play in all-ages venues. To increase creative and financial control, Ian and other members of the band package and sell their self-produced CDs that they sell for $10 online.

12. Refer to Mini-Case 12-1. Every time Fugazi tours, they are able to pick up more ideas about how to minimize the costs of going on tour, in order to make a fair and increasing return for their efforts. This is an example of __________.

a. total costs falling

b. activity-based accounting

c. target costing

d. the learning curve

e. consideration of customers’ demand schedules

13. Refer to Mini-Case 12-1. When it comes to pricing their music, Fugazi uses the __________ method.

a. value

b. going-rate

c. markup