You are a brand manager for a large chain of grocery stores. You have been working overtime for the ...

You are a brand manager for a large chain of grocery stores. You have been working overtime for the last two weeks to prepare for your pricing objectives meeting with the head of sales and marketing. You walk into the meeting with a high degree of confidence in the strategy that you have for setting the pricing objectives for your brand category for the upcoming year. You are speechless when the marketing head tells you that no changes in the pricing objectives will be made for your brand category. He says he believes it is most prudent to leave the existing pricing objectives as they are for the upcoming year.
 
  Which of the following statements is the best explanation for the marketing head's decision to leave the existing pricing objectives in place with no change?
 
 A) A status quo pricing objective can reduce a firm's risks by helping stabilize demand for its products.
  B) The company intends to focus on product quality instead of pricing to win market share.
  C) The company expects its market share to increase if it leaves its pricing objectives the same.
  D) Profit maximization is not an objective in the upcoming year.
  E) The company is not concerned about cash flow.

Question 2

You are head of sales and marketing for your firm, and you are meeting with the CEO to establish pricing objectives for the upcoming product year.
 
  Which of the following factors are you going to consider as you establish your firm's pricing objectives?
 
 A) Consumer advocacy groups' concerns
  B) Sales reps compensation packages
  C) Competitor complaints
  D) The firm's survival
  E) Dissident shareholders' complaints

Question 3

The way that pricing is used in the marketing mix will influence the determination of the final price.
 
 Indicate whether the statement is true or false

Question 4

The local florist advertises a discount on arrangements during the month of April because the anniversary of the store's opening is in April. This is an example of special-event pricing.
 
 Indicate whether the statement is true or false

Question 5

A price-leader approach is a pricing approach most often used in supermarkets to attract consumers by giving them special low prices on a few items.
 
 Indicate whether the statement is true or false

Question 6

Prestige pricing is used when a higher price is consistent with buyers' attitudes toward the quality or image of a product.
 
 Indicate whether the statement is true or false

Question 7

In some cases, prices are assigned to goods on the basis of nothing more than custom.
 
 Indicate whether the statement is true or false

Question 8

A psychological price is designed to encourage purchases on the basis of rational response rather than on the basis of emotional reactions.
 
 Indicate whether the statement is true or false

Question 9

Grocery stores that position their less expensive, private brands next to more expensive, well-known manufacturer brands on the shelf are using the concept of reference pricing.
 
 Indicate whether the statement is true or false