Question

1. Target released a promotional campaign with the tagline, "Expect more. Pay less." Which of the following pricing strategies is Target most likely using? A. Psychological pricing B. Promotional pricing C. Product-line pricing D. Differential pricing E. New-product pricing

2. What type of discount is given to a business purchaser for performing activities such as transporting, storing, and selling? A. Quantity B. Cash C. Geographic D. Service E. Trade

3.   Peabody Garden Supply is trying to optimize its method of getting products to customers. It has added electronic ordering systems for customers and improved the training process for workers in the warehouse who make the products ready for shipment. The improvements Peabody has made are to its A. materials handling. B. logistics. C. order processing. D. inventory management. E. warehousing.

4. Which of the following is an advantage of utilizing penetration pricing? A. It helps a firm recover R&D costs quickly. B. It puts the company in a more flexible pricing position. C. It helps the company build market share quickly. D. It decreases economies of scale, allowing for increased production costs per run. E. It makes it easier for the firm to lower prices in the future

Answer 1

Ans1) Target is using promotional pricing because it is saying Expect More, Pay Less which is same as a promotional pricing. Thus the correct option will be B.

Ans 2) Trade discount is generally given by the business while transporting, storing and selling. Thus the correct option will be E.

Ans 3) Since the improvement with the ordering system correct answer should be option C i.e., order processing.

Ans 4) Penetration pricing is used by the companies to generate market share quickly by keeping price of product lower. Thus the correct option will be C.