Question 1

What should a company do if its competitor's product contains some features that are not available in its product?

Accepted Answer

In such a situation, the compa

Question 2

Which of the following is true regarding price elasticity?

Accepted Answer

A)  The higher the elasticity, the lesser is the volume growth resulting from a 1 percent price reduction. 
B)  Within the price indifference band, price changes have little or no effect on demand. 
C)  If demand is elastic, sellers will consider increasing the price. 
D)  Price elasticity does not depend on magnitude and direction of the contemplated price change. 
E)  When demand is inelastic, sellers should lower prices in order to increase total revenue. 
A)  The higher the elasticity, the lesser is the volume growth resulting from a 1 percent price reduction. 
B)  Within the price indifference band, price changes have little or no effect on demand. 
C)  If demand is elastic, sellers will consider increasing the price. 
D)  Price elasticity does not depend on magnitude and direction of the contemplated price change. 
E)  When demand is inelastic, sellers should lower prices in order to increase total revenue.

Question 3

Matt's retail store offers all its products at $2 lesser than its competitors throughout the year. The store never runs any promotional campaigns or offers any additional special discounts. Matt's retail store is following a(n) ________.

Accepted Answer

A)  auction-type pricing policy 
B)  target-plus pricing policy 
C)  everyday low pricing policy 
D)  high-low pricing policy 
E)  going-rate pricing policy 
A)  auction-type pricing policy 
B)  target-plus pricing policy 
C)  everyday low pricing policy 
D)  high-low pricing policy 
E)  going-rate pricing policy

Question 4

Cost inflation provokes price increases.

Accepted Answer

A) True 
 B)False

Question 5

When hotels drop their rates on the weekends, then this form of price discrimination is known as ________.

Accepted Answer

A)  channel pricing 
B)  image pricing 
C)  product-form pricing 
D)  time pricing 
E)  location pricing 
A)  channel pricing 
B)  image pricing 
C)  product-form pricing 
D)  time pricing 
E)  location pricing

Question 6

ROC Engineering, a Chinese shipbuilding company, agrees to build a fleet of submarines for the Sri Lankan navy, for which it will be paid in the local Sri Lankan currency. As per the agreement, ROC must also spend a substantial amount of the money it generates through this deal within the country. In accordance with the contract, ROC buys Sri Lankan tea at a reduced rate. This is an example of which of the following forms of countertrade?

Accepted Answer

A)  descending bid 
B)  offset 
C)  barter 
D)  compensation deal 
E)  buyback arrangement 
A)  descending bid 
B)  offset 
C)  barter 
D)  compensation deal 
E)  buyback arrangement

Question 7

A company that pays its bills each month for its rent, heat, interest, and salaries regardless of its output is said to be incurring what type of costs?

Accepted Answer

These are

Question 8

In second-degree price discrimination, the seller charges ________.

Accepted Answer

A)  less to buyers of larger volumes 
B)  different prices depending on the season, day, or hour 
C)  a separate price to each customer depending on the intensity of his or her demand 
D)  different prices for different versions of the same product 
E)  different prices for the same product depending on the channel through which it is sold 
A)  less to buyers of larger volumes 
B)  different prices depending on the season, day, or hour 
C)  a separate price to each customer depending on the intensity of his or her demand 
D)  different prices for different versions of the same product 
E)  different prices for the same product depending on the channel through which it is sold

Question 9

________ is the cost per unit at that level of production.

Accepted Answer

A)  Target cost 
B)  Average cost 
C)  Marginal cost 
D)  Opportunity cost 
E)  Fixed cost 
A)  Target cost 
B)  Average cost 
C)  Marginal cost 
D)  Opportunity cost 
E)  Fixed cost

Question 10

A British aircraft manufacturer sold planes to India for 70 percent cash and the rest in coffee. This is an example of what kind of a countertrade?

Accepted Answer

This is an example of a compen

Question 11

Consumers are less price-sensitive ________.

Accepted Answer

A)  to high cost items 
B)  when they frequently change their buying habits 
C)  when there are more substitutes 
D)  when there are more competitors 
E)  when they do not readily notice higher prices 
A)  to high cost items 
B)  when they frequently change their buying habits 
C)  when there are more substitutes 
D)  when there are more competitors 
E)  when they do not readily notice higher prices

Question 12

Costs that do not vary with production levels or sales revenue are known as ________.

Accepted Answer

A)  overhead costs 
B)  variable costs 
C)  average costs 
D)  opportunity costs 
E)  total costs 
A)  overhead costs 
B)  variable costs 
C)  average costs 
D)  opportunity costs 
E)  total costs

Question 13

Value pricing requires a company to reengineer its operations to become a low-cost producer.

Accepted Answer

A) True 
 B)False

Question 14

When Cathy went shopping, she paid a lot to buy a jacket that had a well-known designer's tag attached to it. After a few days, she came across a jacket which was undistinguishable from the one she had bought but was priced 5 times lesser than the earlier one. She didn't give this a second thought because she was convinced that the designer label she had bought was worth it. What can be deduced from this?

Accepted Answer

Cathy was using the price as an indicato

Question 15

A company that is looking to maximize its market share would do well to follow ________ pricing.

Accepted Answer

A)  markup 
B)  market-penetration 
C)  market-skimming 
D)  survival 
E)  target-return 
A)  markup 
B)  market-penetration 
C)  market-skimming 
D)  survival 
E)  target-return

Question 16

Trade-in allowances reward dealers for participating in advertising and sales support programs.

Accepted Answer

A) True 
 B)False

Question 17

Today, consumers are price takers and accept prices at face value or as given.

Accepted Answer

A) True 
 B)False

Question 18

An umbrella manufacturing company's fixed costs are $275,000. The variable cost per unit is $5 and each umbrella is sold at $10. How many units should the firm sell in order to break even?

Accepted Answer

A)  18000 
B)  5500 
C)  27500 
D)  55000 
E)  1819 
A)  18000 
B)  5500 
C)  27500 
D)  55000 
E)  1819

Question 19

In target-return pricing, the firm adds a standard markup to the product's cost.

Accepted Answer

A) True 
 B)False

Question 20

Shrinking the amount of product instead of raising the price is a good way to counteract consumer resistances to price increases.

Accepted Answer

A) True 
 B)False

What should a company do if its competitor's product contains some features that are not available in its product?

Which of the following is true regarding price elasticity?

Matt's retail store offers all its products at $2 lesser than its competitors throughout the year. The store never runs any promotional campaigns or offers any additional special discounts. Matt's retail store is following a(n) ________.

Cost inflation provokes price increases.

When hotels drop their rates on the weekends, then this form of price discrimination is known as ________.

A company that pays its bills each month for its rent, heat, interest, and salaries regardless of its output is said to be incurring what type of costs?

In second-degree price discrimination, the seller charges ________.

________ is the cost per unit at that level of production.

A British aircraft manufacturer sold planes to India for 70 percent cash and the rest in coffee. This is an example of what kind of a countertrade?

Consumers are less price-sensitive ________.

Costs that do not vary with production levels or sales revenue are known as ________.

Value pricing requires a company to reengineer its operations to become a low-cost producer.

A company that is looking to maximize its market share would do well to follow ________ pricing.

Trade-in allowances reward dealers for participating in advertising and sales support programs.

Today, consumers are price takers and accept prices at face value or as given.

An umbrella manufacturing company's fixed costs are $275,000. The variable cost per unit is $5 and each umbrella is sold at $10. How many units should the firm sell in order to break even?

In target-return pricing, the firm adds a standard markup to the product's cost.

Shrinking the amount of product instead of raising the price is a good way to counteract consumer resistances to price increases.

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Gathering Information and Scanning the Environment

Conducting Marketing Research and Forecasting Demand

Creating Customer Value, Satisfaction, and Loyalty

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning

Competitive Dynamics

Setting Product Strategy

Designing and Managing Services

Designing and Managing Marketing Channels and Value Networks

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events, and Public Relations

Managing Personal Communications: Direct Marketing and Personal Selling

Introducing New Market Offerings

Tapping Into Global Markets

Managing a Holistic Marketing Organization for the Long Run

Filters

Exam 14: Developing Pricing Strategies and Programs

What should a company do if its competitor's product contains some features that are not available in its product?

Which of the following is true regarding price elasticity?

Matt's retail store offers all its products at $2 lesser than its competitors throughout the year. The store never runs any promotional campaigns or offers any additional special discounts. Matt's retail store is following a(n) ________.

Cost inflation provokes price increases.

When hotels drop their rates on the weekends, then this form of price discrimination is known as ________.

A company that pays its bills each month for its rent, heat, interest, and salaries regardless of its output is said to be incurring what type of costs?

In second-degree price discrimination, the seller charges ________.

________ is the cost per unit at that level of production.

A British aircraft manufacturer sold planes to India for 70 percent cash and the rest in coffee. This is an example of what kind of a countertrade?

Consumers are less price-sensitive ________.

Costs that do not vary with production levels or sales revenue are known as ________.

Value pricing requires a company to reengineer its operations to become a low-cost producer.

A company that is looking to maximize its market share would do well to follow ________ pricing.

Trade-in allowances reward dealers for participating in advertising and sales support programs.

Today, consumers are price takers and accept prices at face value or as given.

An umbrella manufacturing company's fixed costs are $275,000. The variable cost per unit is $5 and each umbrella is sold at $10. How many units should the firm sell in order to break even?

In target-return pricing, the firm adds a standard markup to the product's cost.

Shrinking the amount of product instead of raising the price is a good way to counteract consumer resistances to price increases.

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Gathering Information and Scanning the Environment

Conducting Marketing Research and Forecasting Demand

Creating Customer Value, Satisfaction, and Loyalty

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning

Competitive Dynamics

Setting Product Strategy

Designing and Managing Services

Designing and Managing Marketing Channels and Value Networks

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events, and Public Relations

Managing Personal Communications: Direct Marketing and Personal Selling

Introducing New Market Offerings

Tapping Into Global Markets

Managing a Holistic Marketing Organization for the Long Run

Filters