MGT301- Quiz 1 Solution and Discussion

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1. A company which is dealing in shirts utilizes a push strategy to sell the shirt line. Its basic promotional tool is discount. These discounts offered to middlemen are referred to as which one of the following discounts? MGT301

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15. Which type of cost-oriented pricing is most closely related to markup pricing? MGT301

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14. Which of the following statements about government regulation of pricing is true? MGT301

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13. When Kodak sets the price range of its cameras as low priced and its related film as high priced, it is practicing which one of the following pricing decision? MGT301

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12. When a company cannot supply all its customers’ needs; what would be an effect on price? MGT301

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11. What might be the effect of a successful price increase on profits?

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10. The economic sacrifice made by a buyer to a seller for products or services refers to which one of the following price? MGT301

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9. Setting low prices to encourage initial product trial and to generate sales growth reflects which one of the following pricing method? MGT301

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8. Quantity discounts are a legal form of price discrimination. A quantity discount is a price reduction to buyers who purchase _____. MGT301

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7. Once a product prototype is developed, it is ready to enter into which of the following stage of new product development? MGT301

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6. Lawyers, accountants, and other professionals typically price by adding a standard markup for profit that reflects which one of the following concepts?

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5. In which of the following pricing the seller selects a given city as a “basing point” and charges all customers the freight cost from that city to the customer location, regardless of the city from which the goods are actually shipped? MGT301

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4. A situation where potential suppliers quote a confidential price to the buyer refers to which one of the following options? MGT301

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3. A firm establishes which of the following pricing objectives to maintain or increase its product’s sales in relation to total industry sales? MGT301

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2. Company B is an internet service provider company and it has launched two different packages which charge a fixed and some variable rates according to usage in a month. Company B is using which type of product mix pricing strategies? MGT301