MAR 3231 FSU ACTUAL EXAM 4 HOPKINS | QUESTIONS AND ANSWERS | VERIFIED AND WELL DETAILED ANSWERS | LATEST EXAM UPDATE

MAR 3231 FSU ACTUAL EXAM 4 HOPKINS |
QUESTIONS AND ANSWERS | VERIFIED AND
WELL DETAILED ANSWERS | LATEST EXAM
UPDATE




SECTION 1: PRICING STRATEGIES & ORIENTATIONS
1. Why do consumers pay a premium for certain products?

 A) Because they have no other choices
 B) Because they want to be able to trust a product and minimize the risk of
purchasing/using it
 C) Because premium products are always higher quality
 D) Because they are forced to by retailers

Correct Answer: B

 Practical Rationale: Consumers pay more for brands they trust to reduce the perceived
risk of a bad purchase.
 Board Exam Rationale: Consumers pay a premium because they want to be able to trust a
product and minimize the risk of purchasing/using it . Brand trust reduces perceived risk.

2. What are the three pricing options for retailers?

 A) Low, Medium, High
 B) Discount, At-the-market, Upscale
 C) Cost-plus, Value-based, Competition-based
 D) Penetration, Skimming, Premium

Correct Answer: B

, Practical Rationale: Retailers choose their pricing strategy based on their target market
and positioning.
 Board Exam Rationale: The three pricing options for retailers are: 1) Discount Orientation,
2) At-the-market Orientation, 3) Upscale Orientation .

3. Which pricing orientation uses low prices as a competitive advantage?

 A) Upscale Orientation
 B) At-the-market Orientation
 C) Discount Orientation
 D) Premium Orientation

Correct Answer: C

 Practical Rationale: Discount retailers like Walmart and TJ Maxx compete primarily on
price.
 Board Exam Rationale: Discount Orientation uses low prices as a competitive advantage.
Consumers looking for the best deal are driven by PRICE .

4. Which of the following is an example of Discount Orientation?

 A) Gucci
 B) Home Depot
 C) Walmart
 D) Oliver Cabell

Correct Answer: C

 Practical Rationale: Walmart is a classic example of a discount retailer competing on
low prices.
 Board Exam Rationale: Walmart, TJ Maxx, and Dollar General are examples of Discount
Orientation .

5. The competitive advantage between Amazon and Walmart is:

 A) Selection
 B) Customer Service
 C) Price
 D) Store Experience

Correct Answer: C

, Practical Rationale: Both Amazon and Walmart compete fiercely on price as their
primary advantage.
 Board Exam Rationale: PRICE is the competitive advantage between Amazon and
Walmart .

6. Why is Amazon a threat to discount retailers?

 A) Amazon has lower prices on everything
 B) Amazon has selection, brand power, supply chain, established consumer behavior,
and advanced shipping capabilities
 C) Amazon offers better customer service
 D) Amazon has more physical stores

Correct Answer: B

 Practical Rationale: Amazon's comprehensive ecosystem makes it a formidable
competitor to discount retailers.
 Board Exam Rationale: Amazon is a threat to discount retailers because of: Selection,
brand power, supply chain and distribution, established consumer behavior, and shipping
capabilities (Amazon Prime) .

7. Which pricing orientation uses average prices—not the cheapest, not the
premium?

 A) Discount Orientation
 B) Upscale Orientation
 C) At-the-market Orientation
 D) Penetration Pricing

Correct Answer: C

 Practical Rationale: At-the-market retailers position themselves in the middle of the
price spectrum.
 Board Exam Rationale: At-the-market Orientation uses average prices—not the cheapest,
not the premium .

8. How can a retailer win with At-the-market Orientation?

 A) By having the lowest prices
 B) By competing on one of the other 4 P's
 C) By offering luxury products
 D) By eliminating customer service

, Correct Answer: B

 Practical Rationale: At-the-market retailers differentiate on experience, products, and
service rather than price.
 Board Exam Rationale: To win with At-the-market Orientation: Do not compete on price
(can be damaging). Compete on one of the other 4 P's—Experience, exclusive products
and brands, customer service/expertise, or one-stop-shop .

9. Which of the following is an example of At-the-market Orientation?

 A) Walmart
 B) Gucci
 C) Home Depot & Lowe's
 D) Dollar General

Correct Answer: C

 Practical Rationale: Home Depot and Lowe's compete on selection and expertise, not
just price.
 Board Exam Rationale: Home Depot and Lowe's are examples of At-the-market
Orientation .

10. Which pricing orientation uses higher or highest prices?

 A) Discount Orientation
 B) At-the-market Orientation
 C) Upscale Orientation
 D) Penetration Pricing

Correct Answer: C

 Practical Rationale: Upscale retailers charge premium prices for luxury goods and
experiences.
 Board Exam Rationale: Upscale Orientation uses higher or highest prices .

11. What are customers paying for with Upscale Orientation?

 A) Low prices only
 B) Brand name, recognition, status, and exclusivity
 C) Convenience only
 D) Basic functionality