Most pricing objectives based on ---- are achieved by trial and error because not all the cost and revenue data are available when prices are set. A)market share B)cash flow C)return on investment D)survival E)profit

Most pricing objectives based on ---- are achieved by trial and error because not all the cost and revenue data are available when prices are set. A)market share B)cash flow C)return on investment D)survival E)profit
by

1 Answer

Answer :

C)return on investment
by

Related questions

Which one of the following pricing objectives is rarely operational because its achievement is difficult to measure? A)Return on investment B)Cash flow C)Profit maximisation D)Market share E)Survival

Description : Which one of the following pricing objectives is rarely operational because its achievement is difficult to measure? A)Return on investment B)Cash flow C)Profit maximisation D)Market share E)Survival

Last Answer : C)Profit maximisation

Which of the following pricing objectives sets prices to recover cash as quickly as possible? A)Market share B)Profit C)Cash flow D)Return on investment E)Product quality

Description : Which of the following pricing objectives sets prices to recover cash as quickly as possible? A)Market share B)Profit C)Cash flow D)Return on investment E)Product quality

Last Answer : C)Cash flow

If marketers in an organisation set prices to recover research and development expenses and establish a premium quality image for its product, they have in mind which type of pricing objective? A)Survival B)Return on investment C)Market share D)Product quality E)Cash flow

Description : If marketers in an organisation set prices to recover research and development expenses and establish a premium quality image for its product, they have in mind which type of pricing objective? A)Survival B)Return on investment C)Market share D)Product quality E)Cash flow

Last Answer : D)Product quality

If Nabisco established a pricing objective of selling one out of every three crackers consumed in the world, it would have established an objective based on: A)cash flow. B)market share. C)survival. D)return on investment. E)profit.

Description : If Nabisco established a pricing objective of selling one out of every three crackers consumed in the world, it would have established an objective based on: A)cash flow. B)market share. C)survival. D)return on investment. E)profit.

Last Answer : B)market share.

When a company adjusts price levels so that it can increase sales volume to levels that match the organisation's expenses, it is said to employ a ---- pricing objective. A)market share B)cash flow C)return on investment D)survival E)profit

Description : When a company adjusts price levels so that it can increase sales volume to levels that match the organisation's expenses, it is said to employ a ---- pricing objective. A)market share B)cash flow C)return on investment D)survival E)profit

Last Answer : D)survival

A marketer is most likely to set prices according to a cash -flow objective when a A)trial -and -error approach to the market is acceptable. B)certain market share must be maintained. C)quick return on investment is desired. D)product is expected to have a long life cycle.

Description : A marketer is most likely to set prices according to a cash -flow objective when a A)trial -and -error approach to the market is acceptable. B)certain market share must be maintained. C)quick return on investment is desired. D)product is expected to have a long life cycle.

Last Answer : C)quick return on investment is desired.

If Carrier develops a new air conditioning compressor that lasts twice as long as existing compressors but only uses half the electricity, it will probably establish its pricing based on: A)cash flow. B)product quality. C)survival. D)return on investment. E)market share.

Description : If Carrier develops a new air conditioning compressor that lasts twice as long as existing compressors but only uses half the electricity, it will probably establish its pricing based on: A)cash flow. B)product quality. C)survival. D)return on investment. E)market share.

Last Answer : B)product quality.

What type of pricing objective might an organisation set if it was already in a favourable financial position and desired nothing more? A)Return on investment B)Cash flow C)Profit D)Status quo E)Survival

Description : What type of pricing objective might an organisation set if it was already in a favourable financial position and desired nothing more? A)Return on investment B)Cash flow C)Profit D)Status quo E)Survival

Last Answer : D)Status quo

Which pricing objective de -emphasises price and can lead to a climate of nonprice competition in an industry? A)Status quo B)Return on investment C)Market share D)Survival E)Cash flow

Description : Which pricing objective de -emphasises price and can lead to a climate of nonprice competition in an industry? A)Status quo B)Return on investment C)Market share D)Survival E)Cash flow

Last Answer : A)Status quo

To gain market share Lada entered car markets with a comparatively low price. One of the negative side effects of taking this pricing position is A)a negative impact on consumers' perceptions of quality. B)competitors can match the price. C)a high return on investment levels affecting tax balances owed. D)poor survival chances in the market.

Description : To gain market share Lada entered car markets with a comparatively low price. One of the negative side effects of taking this pricing position is A)a negative impact on consumers' perceptions of ... high return on investment levels affecting tax balances owed. D)poor survival chances in the market.

Last Answer : A)a negative impact on consumers' perceptions of quality.

A firm establishes which of the following pricing objectives to maintain or increase its product's sales in relation to total industry sales? A)Cash flow B)Sales potential C)Product quality D)Market share E)Status quo

Description : A firm establishes which of the following pricing objectives to maintain or increase its product's sales in relation to total industry sales? A)Cash flow B)Sales potential C)Product quality D)Market share E)Status quo

Last Answer : D)Market share

Judging from the PIMS database, Nestle's high market share definitely guarantees the firm a: A)large level of profit. B)high return on investment. C)quality product. D)high level of capital intensity. E)strong market position.

Description : Judging from the PIMS database, Nestle's high market share definitely guarantees the firm a: A)large level of profit. B)high return on investment. C)quality product. D)high level of capital intensity. E)strong market position.

Last Answer : E)strong market position.

What is a requirement for setting pricing objectives? A)The objectives should be short-term oriented. B)There should be only one pricing objective. C)An evaluation of competitors' prices should be made. D)The cost structure should be identified. E)The objectives should be explicitly state

Description : What is a requirement for setting pricing objectives? A)The objectives should be short-term oriented. B)There should be only one pricing objective. C)An evaluation of competitors' prices should be made. D)The cost structure should be identified. E)The objectives should be explicitly stated.

Last Answer : E)The objectives should be explicitly stated.

Competition -oriented pricing is: A)used when costs and revenues are considered secondary to competitors' prices. B)not useful as a method of increasing or maintaining market share. C)of little use if the competing products are homogenous. D)most often used when competing products are heterogeneous.

Description : Competition-oriented pricing is: A)used when costs and revenues are considered secondary to competitors' prices. B)not useful as a method of increasing or maintaining market share. C)of little use if the competing products are homogenous. D)most often used when competing products are heterogeneous.

Last Answer : A)used when costs and revenues are considered secondary to competitors' prices.

When establishing prices, a marketer's first step is to A)determine demand. B)develop pricing objectives. C)select a pricing policy. D)evaluate competitors' prices. E)determine a pricing method.

Description : When establishing prices, a marketer's first step is to A)determine demand. B)develop pricing objectives. C)select a pricing policy. D)evaluate competitors' prices. E)determine a pricing method.

Last Answer : B)develop pricing objectives.

For custom -made equipment and commercial construction projects, which pricing method is most likely to be used? A)Prestige pricing B)Markup pricing C)Return -on -investment pricing D)Cost -plus pricing

Description : For custom -made equipment and commercial construction projects, which pricing method is most likely to be used? A)Prestige pricing B)Markup pricing C)Return -on -investment pricing D)Cost -plus pricing

Last Answer : D)Cost-plus pricing

L. A. Gear's sports shoe line would have been classified as a problem child when it was introduced. Based on this classification, which of the following would have been true according to the product -portfolio matrix? A)High profitability B)High market growth rate C)High market share D)Positive cash flow E)Relatively high sales volume

Description : L. A. Gear's sports shoe line would have been classified as a problem child when it was introduced. Based on this classification, which of the following would have been true according to the ... B)High market growth rate C)High market share D)Positive cash flow E)Relatively high sales volume

Last Answer : B)High market growth rate

Which of the following pricing methods is used most often by retailers? A)Markup pricing B)Price discrimination C)Price differentiation D)Return on investment E)Price skimming

Description : Which of the following pricing methods is used most often by retailers? A)Markup pricing B)Price discrimination C)Price differentiation D)Return on investment E)Price skimming

Last Answer : A)Markup pricing

With regard to the rate of return on investment (ROI), which one of the following statements is not valid ? (A) It is an overall indicator of the profitability of an enterprise (B) It is a triangular relationship in the sense that ROI = Profit margin ×Asset turnover (C) It is a superior measure compared to the cash flow generated per share (D) It was first developed by Dupont, USA

Description : With regard to the rate of return on investment (ROI), which one of the following statements is not valid ? (A) It is an overall indicator of the profitability of an enterprise (B) It is a ... superior measure compared to the cash flow generated per share (D) It was first developed by Dupont, USA

Last Answer : Answer: It is a superior measure compared to the cash flow generated per share

Marketers must take steps to make sure that pricing objectives they set are consistent with the organisation's ___________ and ___________ . A)advertising objectives; marketing objectives B)overall objectives; marketing objectives C)marketing objectives; promotional objectives D)overall objectives; promotional objectives

Description : Marketers must take steps to make sure that pricing objectives they set are consistent with the organisation's ___________ and ___________ . A)advertising objectives; marketing ... ; marketing objectives C)marketing objectives; promotional objectives D)overall objectives; promotional objectives

Last Answer : B)overall objectives; marketing objectives

In the long run, M&M Mars must view __________ as the floor below which its chocolate bars cannot be priced. A)a 10 percent return on investment B)product development costs C)costs D)advertising expenditures E)Nestle's prices

Description : In the long run, M&M Mars must view __________ as the floor below which its chocolate bars cannot be priced. A)a 10 percent return on investment B)product development costs C)costs D)advertising expenditures E)Nestle's prices

Last Answer : C)costs

Based on the work by the Boston Consulting Group, products with a dominant share of the market and good prospects for growth are A)dogs. B)cash cows. C)stars. D)problem children. E)pigs.

Description : Based on the work by the Boston Consulting Group, products with a dominant share of the market and good prospects for growth are A)dogs. B)cash cows. C)stars. D)problem children. E)pigs.

Last Answer : C)stars.

The wheel of retailing hypothesis suggests that: A)retailers tend to provide more limited services to customers as the business ages. B)new retailers enter the market with low prices, low profit margins and low status but eventually trade up. C)as retail firms' profits increase, the service they provide to customers increases but the cost of doing business decreases. D)a retail firm must grow to compete with other retail firms on an equal basis.

Description : The wheel of retailing hypothesis suggests that: A)retailers tend to provide more limited services to customers as the business ages. B)new retailers enter the market with low prices, low profit margins ... decreases. D)a retail firm must grow to compete with other retail firms on an equal basis.

Last Answer : B)new retailers enter the market with low prices, low profit margins and low status but eventually trade up.

The accounting report indicates that Alton's sales increased by £2 millions last year. While the Chairman is pleased, the marketing vice president feels that inflation had a great deal to do with this result. She proposes that __________ may be a better gauge of the firm's performance last year. A)net sales B)gross profits C)market share D)cash flow

Description : The accounting report indicates that Alton's sales increased by £2 millions last year. While the Chairman is pleased, the marketing vice president feels that inflation had a great deal to do with this result ... the firm's performance last year. A)net sales B)gross profits C)market share D)cash flow

Last Answer : C)market share

A market share pricing objective A)is not recommended when sales for the total industry are declining. B)is not especially useful when sales for the total industry are increasing. C)is not especially useful when sales for the total industry are flat. D)can be used effectively whether total industry sales are rising or falling.

Description : A market share pricing objective A)is not recommended when sales for the total industry are declining. B)is not especially useful when sales for the total industry are increasing. C)is not ... industry are flat. D)can be used effectively whether total industry sales are rising or falling.

Last Answer : D)can be used effectively whether total industry sales are rising or falling.

One advantage of non -price competition is that: A)a firm can react quickly to competitive efforts. B)market share becomes less important. C)a firm can build customer loyalty. D)pricing is no longer a success factor.

Description : One advantage of non-price competition is that: A)a firm can react quickly to competitive efforts. B)market share becomes less important. C)a firm can build customer loyalty. D)pricing is no longer a success factor.

Last Answer : C)a firm can build customer loyalty.

When Sharp first introduced its line of reverse notation calculators, it set the price quite high; it has lowered the price as competitors have entered the market. The pricing strategy used by Sharp is called: A)customary pricing. B)penetration pricing. C)price skimming. D)prestige pricing.

Description : When Sharp first introduced its line of reverse notation calculators, it set the price quite high; it has lowered the price as competitors have entered the market. The pricing strategy used by Sharp is called: A)customary pricing. B)penetration pricing. C)price skimming. D)prestige pricing.

Last Answer : C)price skimming.

Historically, Knox PLC sold industrial clamps directly to firms using these items in their production process. Knox's Chairman believes that it may be time to start using an industrial distributor because of the ability of such firms to: A)provide Knox with market information. B)supply technical information to Knox. C)provide customers with more competitive pricing. D)carry a more complete line of Knox clamps. E)market the products to Knox specifications.

Description : Historically, Knox PLC sold industrial clamps directly to firms using these items in their production process. Knox's Chairman believes that it may be time to start using an industrial distributor because ... D)carry a more complete line of Knox clamps. E)market the products to Knox specifications.

Last Answer : A)provide Knox with market information.

When an organisation sets a limited number of prices for selected groups of merchandise, this idea is commonly referred to as A)prestige pricing. B)price lining. C)customary pricing. D)odd -even pricing. E)ethical pricing.

Description : When an organisation sets a limited number of prices for selected groups of merchandise, this idea is commonly referred to as A)prestige pricing. B)price lining. C)customary pricing. D)odd-even pricing. E)ethical pricing.

Last Answer : B)price lining.

Pick out the wrong statement. (A) Gross revenue is that total amount of capital received as a result of the sale of goods or service (B) Net revenue is the total profit remaining after deducting all costs excluding taxes (C) The ratio of immediately available cash to the total current liabilities is known as the cash ratio (D) Consolidated income statement based on a given time period indicates surplus capital and shows the relationship among total income, costs & profit over the time interval

Description : Pick out the wrong statement. (A) Gross revenue is that total amount of capital received as a result of the sale of goods or service (B) Net revenue is the total profit remaining ... indicates surplus capital and shows the relationship among total income, costs & profit over the time interval

Last Answer : (C) Working capital turnover ratio = sales/net working capital

Firms that truly adopt the marketing concept develop a distinct organisational culture based on a shared set of beliefs that make __________ the pivotal point of the firm's decisions about strategy and operations. A)beating competitors B)increasing market share C)customers' needs D)marketing implementation E)marketing control

Description : Firms that truly adopt the marketing concept develop a distinct organisational culture based on a shared set of beliefs that make __________ the pivotal point of the firm's decisions ... beating competitors B)increasing market share C)customers' needs D)marketing implementation E)marketing control

Last Answer : C)customers' needs

What is the marketing objective of nonbusiness organisations? A)To provide an idea or service to the public B)To obtain a desired response from a target market or public C)To obtain a return on social investment D)To determine the target market and to create and maintain a satisfying marketing mix

Description : What is the marketing objective of nonbusiness organisations? A)To provide an idea or service to the public B)To obtain a desired response from a target market or public C)To obtain a return on social investment D)To determine the target market and to create and maintain a satisfying marketing mix

Last Answer : B)To obtain a desired response from a target market or public

A product is a price leader when: A)it is sold at the highest possible price. B)an increase in price leads to increased revenue C)it sometimes is sold at less than cost in the hope that sales of other products will increase. D)its price leads the industry and competitors follow with similar prices.

Description : A product is a price leader when: A)it is sold at the highest possible price. B)an increase in price leads to increased revenue C)it sometimes is sold at less than cost in the hope that sales of other products will increase. D)its price leads the industry and competitors follow with similar prices.

Last Answer : C)it sometimes is sold at less than cost in the hope that sales of other products will increase. D)its price leads the industry and competitors follow with similar prices.

A marketer sometimes uses temporary price reductions to: A)increase the number of competitors. B)gain market share. C)decrease volume sold. D)increase revenue per item.

Description : A marketer sometimes uses temporary price reductions to: A)increase the number of competitors. B)gain market share. C)decrease volume sold. D)increase revenue per item.

Last Answer : B)gain market share.

The marketing control process consists of A)establishing goals, market scanning, and market share analysis. B)establishing standards, evaluating performance, and reducing the differences between desired and actual performance. C)establishing goals and measuring performance. D)setting objectives, implementing strategies, and reducing the differences between desired and actual performance.

Description : The marketing control process consists of A)establishing goals, market scanning, and market share analysis. B)establishing standards, evaluating performance, and reducing the differences ... objectives, implementing strategies, and reducing the differences between desired and actual performance.

Last Answer : B)establishing standards, evaluating performance, and reducing the differences between desired and actual performance.

Philip Morris's strategy of cutting prices on its Marlboro cigarettes to enlarge its market share in the increasingly competitive tobacco industry is known as A)market penetration. B)market development. C)product development. D)product penetration. E)concentric integration.

Description : Philip Morris's strategy of cutting prices on its Marlboro cigarettes to enlarge its market share in the increasingly competitive tobacco industry is known as A)market penetration. B)market development. C)product development. D)product penetration. E)concentric integration.

Last Answer : A)market penetration.

Even though a firm may have stated list prices and discount structures, the customer may pay an even lower price through what type of pricing? A)Open bidding B)Administered pricing C)Sealed bidding D)Negotiated pricing

Description : Even though a firm may have stated list prices and discount structures, the customer may pay an even lower price through what type of pricing? A)Open bidding B)Administered pricing C)Sealed bidding D)Negotiated pricing

Last Answer : D)Negotiated pricing

Adam's Pool Service charges £50 for swimming pool cleaning performed prior to May 15 and £75 for jobs performed after that date. This pricing structure provides the benefits to Adam's of: A)price leaders. B)smoothing demand fluctuations. C)increasing service tangibility. D)tying prices to service costs.

Description : Adam's Pool Service charges £50 for swimming pool cleaning performed prior to May 15 and £75 for jobs performed after that date. This pricing structure provides the benefits to Adam's of: ... leaders. B)smoothing demand fluctuations. C)increasing service tangibility. D)tying prices to service costs.

Last Answer : B)smoothing demand fluctuations.

Marketers are in a better position to establish prices when: A)there is non -price competition. B)they know prices charged for competing brands. C)the main pricing objective is image building. D)they are using psychological pricing.

Description : Marketers are in a better position to establish prices when: A)there is non-price competition. B)they know prices charged for competing brands. C)the main pricing objective is image building. D)they are using psychological pricing.

Last Answer : B)they know prices charged for competing brands.

Delta Airlines prices its tickets so that it is less expensive to travel on weekends than during the week when there is heavy business travel. This illustrates ________ pricing. A)seasonal B)demand -oriented C)competitive D)markup

Description : Delta Airlines prices its tickets so that it is less expensive to travel on weekends than during the week when there is heavy business travel. This illustrates ________ pricing. A)seasonal B)demand-oriented C)competitive D)markup

Last Answer : B)demand-oriented

Competitors prices and the marketing mix variables that competitors emphasise partly determine: A)the selection of a pricing policy. B)the timing of the introduction of new products. C)whether to use a pioneer or psychological pricing policy. D)how important price will be to customers.

Description : Competitors prices and the marketing mix variables that competitors emphasise partly determine: A)the selection of a pricing policy. B)the timing of the introduction of new products. C)whether to use a pioneer or psychological pricing policy. D)how important price will be to customers.

Last Answer : D)how important price will be to customers.

15) Adam's Pool Service charges £50 for swimming pool cleaning performed prior to May 15 and £75 for jobs performed after that date. This pricing structure provides the benefits to Adam's of: A)price leaders. B)smoothing demand fluctuations. C)increasing service tangibility. D)tying prices to service costs.

Description : 15) Adam's Pool Service charges £50 for swimming pool cleaning performed prior to May 15 and £75 for jobs performed after that date. This pricing structure provides the benefits to Adam's ... leaders. B)smoothing demand fluctuations. C)increasing service tangibility. D)tying prices to service costs.

Last Answer : B)smoothing demand fluctuations.

If Wrigley sets its pricing objective as attaining 38 percent of the chewing gum market, what else would be needed to make this a true pricing objective? A)A statement of demand elasticities B)An identification of cost structure C)A breakeven analysis D)Identification of a time period for accomplishment

Description : If Wrigley sets its pricing objective as attaining 38 percent of the chewing gum market, what else would be needed to make this a true pricing objective? A)A statement of demand ... An identification of cost structure C)A breakeven analysis D)Identification of a time period for accomplishment

Last Answer : D)Identification of a time period for accomplishment

Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant? (A) Cash reserve (B) Rate of return on investment (C) Payout period (D) Discounted cash flow based on full life performance

Description : Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant? (A) Cash reserve (B) Rate of return on investment (C) Payout period (D) Discounted cash flow based on full life performance

Last Answer : (A) Cash reserve

The Boston Consulting Group classifies products that have a dominant market share but low prospects for growth and that generate more cash than is required to maintain market share as A)dogs. B)cash cows. C)stars. D)cash contributors. E)problem children.

Description : The Boston Consulting Group classifies products that have a dominant market share but low prospects for growth and that generate more cash than is required to maintain market share as A)dogs. B)cash cows. C)stars. D)cash contributors. E)problem children.

Last Answer : B)cash cows.

Under full cost pricing, price is determined (1) by adding a margin to the average cost (2) by comparing marginal cost and marginal revenue (3) by adding normal profit to the marginal cost (4) by the total cost of production

Description : Under full cost pricing, price is determined (1) by adding a margin to the average cost (2) by comparing marginal cost and marginal revenue (3) by adding normal profit to the marginal cost (4) by the total cost of production 

Last Answer :  by adding a margin to the average cost

Products that have a relatively low market share and low prospects for growth are considered by the Boston Consulting Group to be A)dogs. B)cash cows. C)stars. D)cash contributors.

Description : Products that have a relatively low market share and low prospects for growth are considered by the Boston Consulting Group to be A)dogs. B)cash cows. C)stars. D)cash contributors.

Last Answer : A)dogs.

Tommy leaves the video rental shop annoyed about the small number of titles that were available for rent. His attitude is due to the actual number of tapes in the store and: A)his satisfaction with the service he received. B)the store's pricing policy. C)the number of people there to help. D)his service expectations. E)the average number of available titles at all stores.

Description : Tommy leaves the video rental shop annoyed about the small number of titles that were available for rent. His attitude is due to the actual number of tapes in the store and: A)his satisfaction with ... there to help. D)his service expectations. E)the average number of available titles at all stores.

Last Answer : D)his service expectations.

Joan recently changed employers within the same industry. At her old company, employees routinely took home company pens, pencils, and note pads, and they frequently made personal long -distance calls on company phones. Joan observes that employees do not engage in such practices at her new company. What Joan sees could best be described as a difference in A)significant others. B)profit objectives. C)corporate culture. D)legal climate. E)corporate goals.

Description : Joan recently changed employers within the same industry. At her old company, employees routinely took home company pens, pencils, and note pads, and they frequently made personal long -distance ... A)significant others. B)profit objectives. C)corporate culture. D)legal climate. E)corporate goals

Last Answer : D)legal climate

In Capstone©, pricing standards are set by: a. Customers (Market Segment). b. Competitors. c. You, The Company. d. a range of the prices from all Teams. e. Random Selection.

Description : In Capstone©, pricing standards are set by: a. Customers (Market Segment). b. Competitors. c. You, The Company. d. a range of the prices from all Teams. e. Random Selection.

Last Answer : a. Customers (Market Segment).