Question 1

Market share is the ratio of the ________ to those of the industry,including the firm itself.

Accepted Answer

Market share is the ratio of the firm's sales revenues or unit sales to those of the industry (competitors plus the firm itself).

Question 2

Unit volume as a pricing objective refers to

Accepted Answer

Key term definition-unit volume.

Question 3

A firm's profit objective is often measured in terms of ROI.The acronym ROI stands for

Accepted Answer

Three different objectives relate to a firm's profit,which is often measured in terms of return on investment (ROI)or return on assets (ROA).

Question 4

A maximizing current profit objective implies that a company chooses to

Accepted Answer

Three different objectives relate to a firm's profit,which include: (1)managing for long-run profits,when a company gives up immediate profit in exchange for achieving a higher market share;(2)maximizing current profit,such as for a quarter or year,because the targets can be set and performance measured quickly;and (3)achieving a target return,which occurs when a firm sets a profit goal (such as 20 percent for pretax ROI),usually determined by its board of directors.

Question 5

The ratio of the firm's sales revenues or unit sales to those of the industry (competitors plus the firm itself)is referred to as

Accepted Answer

Key term definition-market share.

Question 6

If the CEO of the Clorox Co.were to say,"We want to control 60 percent of the bleach market within the next five years," he would have set a ________ pricing objective.

Accepted Answer

The CEO has set a numerical target for the percentage of the total bleach market,including his own sales,which is a definition of market share.

Question 7

Managing for long-run profits as a pricing objective implies that a company will

Accepted Answer

One objective related to a firm's profit is managing for long-run profits,when a company gives up immediate profit in exchange for achieving a higher market share.

Question 8

Companies often pursue a market share objective when

Accepted Answer

Companies often pursue a market share objective when industry sales are relatively flat or declining.

Question 9

Which of the following statements regarding pricing objectives is most accurate?

Accepted Answer

Pricing objectives may change depending on the financial position of the company as a whole,the success of its products,or the segments in which it is doing business.

Question 10

An online movie streaming service charges $14.99 per month for its basic package.However,when a competitor introduced the same service at $13.99,the firm dropped its price to $13.99.The firm most likely made this price reduction in an attempt to

Accepted Answer

Market share is the ratio of the firm's sales revenues or unit sales to those of the industry (competitors plus the firm itself).The firm most likely is trying to maintain market share in response to the competitor's lower price.

Question 11

Which of the following statements regarding sales goals is most accurate?

Accepted Answer

Objectives related to dollar sales revenue or unit volume sales have the advantage of being translated easily into meaningful targets for marketing managers responsible for a product line or brand.However,while cutting the price on one product in a firm's line may increase its sales revenue,it may also reduce the sales revenue of related products.

Question 12

A target return profit objective implies that a company chooses to

Accepted Answer

Three different objectives relate to a firm's profit,which include: (1)managing for long-run profits,when a company gives up immediate profit in exchange for achieving a higher market share;(2)maximizing current profit,such as for a quarter or year,because the targets can be set and performance measured quickly;and (3)achieving a target return,which occurs when a firm sets a profit goal (such as 20 percent for pretax ROI),usually determined by its board of directors.

Question 13

All of the following are examples of pricing objectives except which?

Accepted Answer

Pricing objectives include profit,sales,market share,unit volume,survival,and social responsibility.Pricing constraints include demand for the product class,product,or brand,cost of producing and marketing the product,newness of the product (stage in its life cycle),whether there is a single product versus a product line,the cost of changing prices and/or the time periods they apply,the type of competitive market,and competitors' prices.

Question 14

Three different objectives relate to a firm's profit,each of which have different implications for pricing strategy.One of these is

Accepted Answer

Three different objectives relate to a firm's profit,which include: (1)managing for long-run profits,when a company gives up immediate profit in exchange for achieving a higher market share;(2)maximizing current profit,such as for a quarter or year,because the targets can be set and performance measured quickly;and (3)achieving a target return,which occurs when a firm sets a profit goal (such as 20 percent for pretax ROI),usually determined by its board of directors.

Question 15

Which of the following statements regarding a market share pricing objective is most accurate?

Accepted Answer

Market share is the ratio of the firm's sales revenues or unit sales to those of the industry (competitors plus the firm itself).Companies often pursue a market share objective when industry sales are relatively flat or declining.Although increased market share is a primary goal of some firms,others see it as a means to other ends: increasing sales and profits.

Question 16

Several pricing objectives relate to a firm's profit.In one known as ________,a company gives up immediate profit in exchange for achieving a higher market share in the hopes of penetrating competitive markets.

Accepted Answer

Key term definition-managing for long-run profits.

Question 17

A negative aspect of selecting unit volume as a pricing objective is that

Accepted Answer

Many firms use unit volume,the quantity produced or sold,as a pricing objective.These firms often sell multiple products at very different prices and need to match the unit volume demanded by customers with price and production capacity.Using unit volume as an objective can be counterproductive if a volume objective is achieved by drastic price cutting that drives down profit.

Question 18

Given that a firm's profit is high enough for it to remain in business,an objective may be to ________,which will in turn lead to increases in market share and profit.

Accepted Answer

Given that a firm's profit is high enough for it to remain in business,an objective may be to increase sales revenue,which can lead to increases in market share and profit.Objectives related to dollar sales revenue or unit sales have the advantage of being translated easily into meaningful targets for marketing managers responsible for a product line or brand.

Question 19

Three different objectives relate to a firm's profit,which is often measured in terms of return on investment.One objective,known as ________,occurs when a firm sets a profit goal,usually determined by its board of directors.

Accepted Answer

Key term definition-target return.

Question 20

Three different objectives relate to a firm's profit.One objective,known as ________,is common in many firms because the targets can be set and performance measured quickly.

Accepted Answer

Key term definition-maximizing current profit.

Quiz 13: Building the Price Foundation

Market share is the ratio of the ________ to those of the industry,including the firm itself.

Unit volume as a pricing objective refers to

A firm's profit objective is often measured in terms of ROI.The acronym ROI stands for

A maximizing current profit objective implies that a company chooses to

The ratio of the firm's sales revenues or unit sales to those of the industry (competitors plus the firm itself) is referred to as

If the CEO of the Clorox Co.were to say,"We want to control 60 percent of the bleach market within the next five years," he would have set a ________ pricing objective.

Managing for long-run profits as a pricing objective implies that a company will

Companies often pursue a market share objective when

Which of the following statements regarding pricing objectives is most accurate?

An online movie streaming service charges $14.99 per month for its basic package.However,when a competitor introduced the same service at $13.99,the firm dropped its price to $13.99.The firm most likely made this price reduction in an attempt to

Which of the following statements regarding sales goals is most accurate?

A target return profit objective implies that a company chooses to

All of the following are examples of pricing objectives except which?

Three different objectives relate to a firm's profit,each of which have different implications for pricing strategy.One of these is

Which of the following statements regarding a market share pricing objective is most accurate?

Several pricing objectives relate to a firm's profit.In one known as ________,a company gives up immediate profit in exchange for achieving a higher market share in the hopes of penetrating competitive markets.

A negative aspect of selecting unit volume as a pricing objective is that

Given that a firm's profit is high enough for it to remain in business,an objective may be to ________,which will in turn lead to increases in market share and profit.

Three different objectives relate to a firm's profit,which is often measured in terms of return on investment.One objective,known as ________,occurs when a firm sets a profit goal,usually determined by its board of directors.

Three different objectives relate to a firm's profit.One objective,known as ________,is common in many firms because the targets can be set and performance measured quickly.