Question 4

Brick and mortar department stores have been losing market share during the past several years. They are now feverishly implementing new strategies to keep up with the changing demographic and psychographic trends. Which best describes a national trend?

All the above.

Consumers are much more confident purchasing products on-line.

Competition from specialty stores.

Cities across the nation are experiencing population growth.

Question 5

Which of the VALS behavioral segments is the primary customer for Discounters?

Survivors

Achievers

Strivers

Innovators

Question 6

This behavioral segment is traditional, respects authority, technological adverse and prefer familiar products and established brands.

Believers

Strivers

Survivors

Achievers

Question 7

Which best describes consumers that are generally active, impulsive and seeks stimulation from the new and risky. They spend a comparatively high proportion of their income on fashion, socializing and entertainment.

Achievers

Experiences

Boomers

Generation X

Question 8

Which statement about pricing is true?

Customers generally do not want cheap products, they want value.

All the above.

Consumers interpret value in their own terms.

Price, value and costs are not three isolated terms. There is a relationship with each term.

Question 9

A popular pricing strategy that allows a brand or retailer to expand their target market both demographically and psycho-graphically is?

Group of answer choices

Market Penetration

Good-Better-Best

Value based

Cost based

Question 10

A national brand product manager is pricing a 65% cotton, 35% silk sweater. The total manufacturing cost is $30.00 and the desired wholesale mark-up is 40%. What is the wholesale sell price?

$50

$42

$75

$60

Question 11

Now that you calculated the wholesale sell price for the sweater in question #10, the product manager now needs to establish an MSRP (Manufacturer's Suggested Retail Price).The retail mark-up objective is 70%. What is the MSRP?

$166.65

$250.00

$140.00

$120.50

Question 12

A product that is priced as close to its costs as possibleto maximize sales volume by taking sales and market share away from competition is known as:

Demand Pricing

Need Pricing

Market Penetration Pricing

Value based

Question 13

This financial instrument protects both buyer and seller and is the most common method of payment when doing business where imports are concerned.

Factoring

Secured bank loan

Letter of Credit

Bank credit card