Department stores such as Kohl's and Macy's are interested in learning how much their competitors are charging for similar merchandise. Which of the following practices might these retailers utilize to identify competitors' prices?
A) Employing comparative shoppers who systematically collect data on prices at competing stores
B) Stealing price lists from a display at a trade show
C) Hiring sales representatives from competitors' companies and asking them to share price information
D) Pretending to be a buyer and soliciting pricing information from the competitor
Question 2Target has worked closely with suppliers such as Calphalon to offer customers a high-quality, branded product that is only available in Target stores. Due to these partnerships, Target has established a high level of perceived _______ among their customers since they provide a large range of brand-name merchandise at reasonable or below-competition prices.
A) value
B) demand
C) supply
D) competitive differentiation
Question 3Aldi and Dollar General stores have been expanding their footprint across the United States, opening new locations and competing against traditional discount and grocery store chains, such as Walmart, Target, Kmart, Kroger, Jewel Osco, and Schnucks. Both Aldi and Dollar General hope to capture a large proportion of the dollars consumers spend on grocery and general merchandise items and have responded to consumer desires for value and convenience of a smaller store. What type of pricing objective are these stores utilizing?
A) Market share
B) Return on investment
C) Profit
D) Survival
Question 4McDonald's restaurants have experienced declining sales recently due to consumers' increased interest in healthy eating and their preference for fast-casual restaurants such as Chipotle and Noodles. In order to attract more customers to McDonald's, the chain expanded the number of items they are offering on the 1 menu, and many of these items are priced below cost. McDonald's is most likely utilizing a _____ pricing objective.
A) survival
B) profit
C) market share
D) return on investment
Question 5_____________ is pricing a product at a moderate level and positioning it next to a more expensive model or brand.
A) Reference pricing
B) Odd-even pricing
C) Customary pricing
D) Prestige pricing
E) Professional pricing
Question 6Which of the following statements is true about the determination of a specific price for a product?
A) Price elasticity is not relevant when determining a specific price.
B) It occurs in the fifth stage of the price-setting process.
C) Only fixed costs should be considered when setting the specific price.
D) When no government controls exist, pricing is a flexible way to adjust the marketing mix.
E) Demand is not a consideration when establishing a specific price.
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