1. Myra is looking for furniture that will be placed in their living room. Considering the price range and type, she is well versed with the price to pay. When she entered a Japanese second hand shop, she was really attracted at one furniture but dismayed when it comes to the price. The furniture is not brand new and already has some scratches and marks but the price is for a brand new product. What reference pricing hasn't been implemented successfully? FAIR PRICE TYPICAL PRICE LAST PRICE PAID UPPER BOUND PRICE + LOWER BOUND PRICE COMPETITOR PRICE EXPECTED FUTURE PRICE USUAL DISCOUNTED PRICE + Explanation: 2. Store ABC has entered a new industry. Previously they are in poultry products. Since they see the potential of venturing in supermarkets, they have allotted capital to start. In the new venture that they have entered, they opted to offer the freshest and newest stocks possible. Compared to other supermarkets, they have shorter span for displaying perishable goods making them replace stocks every now and then. The usual display is one week but for them they are replacing perishable items every 3 days. Considering their actions on their inventories, what objective will they be following in relation to their price? SURVIVAL MAXIMUM CURRENT PROFIT MAXIMUM MARKET SHARE MAXIMUM MARKET SKIMMING PRODUCT QUALITY LEADERSHIP Explanation:3. A bakery had been facing some problems since in its location, there will be new bakeries that will be established. Though the owner had been there operating for several years, she still nds it threatening forthe business. To keep and encourage other buyers she conducted some promo of her cakes and breads. For example, for every purchase of wheat loaf, there will be free cup of coffee. What pricing objective is the does the owner consider? SURVIVAL MAXIMUM CURRENT PROFIT MAXIMUM MARKET SHARE MAXIMUM MARKET SKIMMING PRODUCT QUALITY LEADERSHIP Explanation: 4. A university in the city had increased its tuition fee. There had been series of debates regardingthe increase dueto the number of possible transferees. When the management implemented the increase they noticed that they can nish the university enrolment in 2 days from I" days enrolment. What type of demand is present in relation to the services ofthe school? ELASTIC INELASTIC UNITARY Explanation: 5. Marjorie is currently into selling pillow cases, blankets and bedsheets. Some of her stocks came from m and US. Since shipping cost went higher, she needs to reflect it on the price. She noticed that most of her buyers, even loyal customers are preferring locally made products than imported ones. What basis of determining demand had been reflected? PRICE SENSITIVITY ESTIMATING DEMAND CURVES PRICE ELASTICITY DEMAND Explanation: 6. Norman newly opened his furniture store. It is already his third store in the region. Most of his buyers are business establishments seeking for good wood furniture. Since he wanted to expand in Singapore, he is aiming to achieve his investment in his third branch by the end of the year. What basis of estimating cost is present? BASIC COSTS ACCUMULATED PRODUCTION ACTIVITY-BASED ACCOUNTING TARGET COSTING Explanation: 7. Kyla is a supplier of fresh milk to some cafe in the area. She noticed that most of her clients are doubling their orders during the time of the first quarter and last quarter of the year. Kyla also observed that she has comparable costing during those quarters. What type of cost had been observed? FIXED COST VARIABLE COST TOTAL COST AVERAGE COST COST AT DIFFERENT LEVEL OF PROUCTION Explanation: 8. Jennifer is planning to open a flower shop inside the mall next month. She asked for the rent that she needs to pay every month and finds it reasonable to take. She also considers costing each flower offering that she has depending on the type of the flower and design of wrapping. With those in mind, she thinks she is ready for the operation of her business. What type of cost has been reviewed? FIXED COST VARIABLE COST TOTAL COST AVERAGE COST COST AT DIFFERENT LEVEL OF PROUCTION Explanation:9. Since the business is aiming to open their 5th branch within the city, they have to have a stable profit coming from their current branches. The reason for the need of stability is they will be using the profit from the other branches to operate the new branches next month. Their manager is aiming for 100,000 net profit from each existing branch so the 5th branch will be opened next month. Considering the aim of the business what pricing method will be followed? MARK UP PRICING TARGET-RETURN PRICING PERCEIVED VALUE PRICING VALUE PRICING AUCTION TYPE PRICING GOING RATE PRICING Explanation: 10. Giant corner is a company offering play set and items for babies, toddlers and kids. One of their product line is their baby crib. Since the price is considered to be higher than other brands because of its quality, they are offering three months payment period when using the buyer's credit card. The total amount will be divided equally into three months payment period. What promotional tactic has been done by Giant corner? LOSS-LEADER PRICING SPECIAL-EVENT PRICING CASH REBATES LOW-INTEREST FINANCING LONGER PAYMENT TERMS WARRANTIES AND SERVICE CONTRACTS PSYCHOLOGICAL DISCOUNTING Explanation:11. Melanie is looking for a stiletto shoes that she can use during an awards night where she will be the host. She started looking for one in the department store. Unfortunately, the available colors will not complement the gown that she will be wearing. She immediately remembers that there is an outlet store of the brand of shoes that she prefers and hoping the color that she likes can be found there. What channel service output might be taken advantage by Melanie in the outlet store? LOT SIZE WAITING/DELIVERY TIME SPATIAL CONVENIENCE PRODUCT VARIETY SERVICE BACKUP Explanation: 12. Store DEF is a store of different types of television of different brands. Since buying a TV may come in different types of demand in terms of accessories, cabinets, brackets and speakers, the store had also considered every other accessory that a buyer may have. It is to prevent their customers to buy it from other stores and consider a one stop shopping experience. What channel service output is being prioritized by the store? LOT SIZE WAITING/DELIVERY TIME SPATIAL CONVENIENCE PRODUCT VARIETY SERVICE BACKUP Explanation: 13. Melissa is currently into loosing weight and healthy lifestyle. Part of her practice in achieving the right weight is by eating more vegetables and fruits. In buying vegetables and fruits, she prefer buying it from a store selling organic resources. According to her, she will not stop having that lifestyle until she reaches her ideal weight and figure. The seller of organic vegetables and fruits will consider Melissa as what category of shopper? HABITUAL SHOPPER HIGH VALUE DEAL SEEKER VARIETY LOVING SHOPPER HIGH INVOLVEMENT SHOPPER Explanation:15. Havainnas store considers letting their consumers fill out a form. In the form they will be knowledgeable about their name, phone number and their request during their next visit considering the variation of slipper they wanted to buy. By doing such, the store will be assured there will repeat visit. What specific channel function is being conducted? FORWARD FLOW FUNCTION BACK FLOW FUNCTION + FORWARD AND BACKWARD FLOW FUNCTION + Explanation 16. Beverly currently considers selling beauty soaps as her source of income. What she does is go directly to wholesaler and get the soaps in bulk. In selling the product there are also resellers buying the product and reselling again the product. What intermediary type is Beverly? MERCHANT AGENT FACILITATOR Explanation: 17. Hagendaz, a brand of ice cream had penetrated the Philippine market. In selling the product in the country, it has been sold by some supermarkets having a specialized refrigerator because it needs to maintain the quality of the ice cream at the same time, sellers should be categorized as high end supermarkets because the price is much higher than local brand of ice creams. What number of intermediaries did Hagendaz resorted to? EXCLUSIVE INTENSIVE SELECTIVE Explanation18. When HP was being sold in one department store, it was offered to be purchased in an installment basis. When Joey asked the number of months of the installment, the sales representative mentioned they only provide until 12 months installment. Unsure about he can get the product at its high value, he went directly to the HP store. Surprised, the installment period there is at 24 months. He availed the product directly in the HP store. What terms and responsibility of intermediary was not managed well in coordination with the manufacturer? PRICE POLICIES CONDITIONS OF SALE TERRITORIAL SERVICES TO BE PERFORMED BY PARTY Explanation 19. When the farm owner of lemons passed the product to a retailer, there had been no problem when it comes to perishability. The retailer does not return rotten lemons. The strategy of the retailer had been in the manner of selling the lemons. Aside from selling the lemons as its state, the seller has also used the lemons as lemonade, ingredient for pastries and cakes and even for fragrances and scents. What channel criterion had been present for the retailer be considered as a viable intermediary of lemons? ECONOMIC CONTROL ADAPTIVE Explanation 20. Retailer ABC had been receiving complaints about out of stocks products inside the store. According to the customers they are wasting time going to the store since most of their needs are not present especially staple goods and to add to the that the next store is 30 minutes from the said retailer. According to the retailer, they had been waiting for deliveries by different brands of goods and unfortunately, they were not complying in their said schedule. What type of conflict is present? VERTICAL HORIZONTAL MULTICHANNEL Explanation14. Jenny prefers having her hair styled in David's Salon. But being more specic, shegoes to the David's Salon situated in a mall. She had tried the services of other salon branches but she feels more at home with her preferred branch. The employees gives her extra care and understands her hair problem. It is only in that store that she also buys shampoo and conditioner. What category of shopper is Jenny? HABITUAL SHOPPER HIGH VALUE DEAL SEEKER VARIETY LOVING SHOPPER HIGH INVOLVEMENT SHOPPER Explanation