2025 Updated CH16 TEST BANK
Assessment Questions & Verified Correct answers
(A+ Guarantee)
What does the exchange value of a product define?
a. worth
b. price
c. value
d. funds - correct answer✔✔b. price
What pricing objective might seek sales maximization within a given profit constraint?
a. profitability
b. volume
c. meeting competition
d. prestige - correct answer✔✔b. volume
What objectives are short-run or long-run profitability goals, usually stated as percentages of
sales or investment?
a. profit maximization
b. volume
c. target-return
d. prestige - correct answer✔✔c. target-return
What is one of the major benefits derived from target-return objectives?
a. They eliminate competition.
b. They generate excess profit.
c. They encourage increased investments by stockholders.
,d. They serve as a means of evaluating performance. - correct answer✔✔d. they serve as a
means of evaluating performance
What did the Profit Impact of Market Strategies Project (PIMS) reveal were the two most
important factors influencing profitability?
a. sales cost and market demand
b. product quality and market share
c. profit margin and market share
d. profit maximization and competition - correct answer✔✔b. product quality and market share
In comparing the top four brands in a market segment, what did the Profit Impact of Market
Strategies Project (PIMS) research data reveal was the average, after-tax return on investment
percentage that the leading brand generates?
a. less than 10 percent
b. 15 to 25 percent
c. 30 to 50 percent
d. more than 65 percent - correct answer✔✔b. 15 to 25 percent
At present, what are both long-distance telephone services and wireless carriers tending to adhere
to?
a. competitive pricing objective
b. prestige pricing policy
c. breakeven pricing approach
d. psychological pricing model - correct answer✔✔a. competitive pricing objective
What should Proctor & Gamble in order to introduce a value-priced brand of laundry detergent?
a. emphasize the low price compared to all other products currently available in the marketplace
b. put less product in the customary package to offset the low-profit margin
c. demonstrate the prestige the consumer gets along with this product
, d. focus on how the lower-priced brand offers comparable quality to higher-priced products -
correct answer✔✔d. focus on how the lower-priced brand offers comparable quality to higher-
priced products
What do prestige pricing objectives emphasize?
a. quality and exclusivity
b. revenue maximization
c. cost minimization
d. sales maximization - correct answer✔✔a. quality and exclusivity
What is the common pricing strategy used in selling expensive and luxurious automobiles?
a. meeting competitors' prices
b. return on investment
c. prestige
d. revenue maximization - correct answer✔✔c. prestige
What is the organizational goal of a high school when it sponsors a $100-per-person auction to
raise funds for the operation of the school?
a. maximize profits
b. recover costs
c. suppress the market
d. provide market incentives - correct answer✔✔a. maximize profits
What is an inappropriate pricing objective for a not-for-profit organization?
a. providing market incentives
b. profit maximization
c. cost recovery
d. industry domination - correct answer✔✔d. industry domination
Assessment Questions & Verified Correct answers
(A+ Guarantee)
What does the exchange value of a product define?
a. worth
b. price
c. value
d. funds - correct answer✔✔b. price
What pricing objective might seek sales maximization within a given profit constraint?
a. profitability
b. volume
c. meeting competition
d. prestige - correct answer✔✔b. volume
What objectives are short-run or long-run profitability goals, usually stated as percentages of
sales or investment?
a. profit maximization
b. volume
c. target-return
d. prestige - correct answer✔✔c. target-return
What is one of the major benefits derived from target-return objectives?
a. They eliminate competition.
b. They generate excess profit.
c. They encourage increased investments by stockholders.
,d. They serve as a means of evaluating performance. - correct answer✔✔d. they serve as a
means of evaluating performance
What did the Profit Impact of Market Strategies Project (PIMS) reveal were the two most
important factors influencing profitability?
a. sales cost and market demand
b. product quality and market share
c. profit margin and market share
d. profit maximization and competition - correct answer✔✔b. product quality and market share
In comparing the top four brands in a market segment, what did the Profit Impact of Market
Strategies Project (PIMS) research data reveal was the average, after-tax return on investment
percentage that the leading brand generates?
a. less than 10 percent
b. 15 to 25 percent
c. 30 to 50 percent
d. more than 65 percent - correct answer✔✔b. 15 to 25 percent
At present, what are both long-distance telephone services and wireless carriers tending to adhere
to?
a. competitive pricing objective
b. prestige pricing policy
c. breakeven pricing approach
d. psychological pricing model - correct answer✔✔a. competitive pricing objective
What should Proctor & Gamble in order to introduce a value-priced brand of laundry detergent?
a. emphasize the low price compared to all other products currently available in the marketplace
b. put less product in the customary package to offset the low-profit margin
c. demonstrate the prestige the consumer gets along with this product
, d. focus on how the lower-priced brand offers comparable quality to higher-priced products -
correct answer✔✔d. focus on how the lower-priced brand offers comparable quality to higher-
priced products
What do prestige pricing objectives emphasize?
a. quality and exclusivity
b. revenue maximization
c. cost minimization
d. sales maximization - correct answer✔✔a. quality and exclusivity
What is the common pricing strategy used in selling expensive and luxurious automobiles?
a. meeting competitors' prices
b. return on investment
c. prestige
d. revenue maximization - correct answer✔✔c. prestige
What is the organizational goal of a high school when it sponsors a $100-per-person auction to
raise funds for the operation of the school?
a. maximize profits
b. recover costs
c. suppress the market
d. provide market incentives - correct answer✔✔a. maximize profits
What is an inappropriate pricing objective for a not-for-profit organization?
a. providing market incentives
b. profit maximization
c. cost recovery
d. industry domination - correct answer✔✔d. industry domination
