Question 1

When the seller takes on part or all of the cost of shipping,it is called ________.

Accepted Answer

A) freight absorption 
B) F)O.B.factory 
C) F)O.B.origin 
D) uniform delivered 
E) basing-point 
A) freight absorption 
B) F)O.B.factory 
C) F)O.B.origin 
D) uniform delivered 
E) basing-point

Question 2

Which of the following is true about the demand curve?

Accepted Answer

A) It is used to illustrate the effect of price on the quantity supplied. 
B) It is always graphically depicted by a straight line. 
C) It shows the quantity of product customers will buy in a market during a period of time even if other factors change. 
D) It usually slopes upward and to the right. 
E) It shows the relationship between product demand and product price. 
A) It is used to illustrate the effect of price on the quantity supplied. 
B) It is always graphically depicted by a straight line. 
C) It shows the quantity of product customers will buy in a market during a period of time even if other factors change. 
D) It usually slopes upward and to the right. 
E) It shows the relationship between product demand and product price.

Question 3

Explain the pricing strategy being implemented when a retail store places the store's generic brand items next to the national brand items when the national brand items have a slightly higher price than the generic brand item.Why would a retailer do this?

Accepted Answer

The store is relying on the assimilation

Question 4

A new product carries a low price for a limited period of time to attract customers in what type of pricing strategy?

Accepted Answer

A) price skimming 
B) trial pricing 
C) penetration pricing 
D) specialty pricing 
E) price bundling 
A) price skimming 
B) trial pricing 
C) penetration pricing 
D) specialty pricing 
E) price bundling

Question 5

Mark believes he should pay more than $49.95 for a motel room;this price is his internal reference price.

Accepted Answer

A) True 
 B)False

Question 6

________ do not vary with the number of units produced.

Accepted Answer

A) Liquidity costs 
B) Fixed costs 
C) Variable costs 
D) Marginal costs 
E) Everyday costs 
A) Liquidity costs 
B) Fixed costs 
C) Variable costs 
D) Marginal costs 
E) Everyday costs

Question 7

Which of the following statements about price is true?

Accepted Answer

A) Pricing is the least important marketing mix element. 
B) Price is always a monetary value. 
C) Price can mean exchange of nonmonetary goods or services. 
D) Most consumers believe price has little influence on their purchase decisions. 
E) Pricing is unaffected by changes in the business cycle. 
A) Pricing is the least important marketing mix element. 
B) Price is always a monetary value. 
C) Price can mean exchange of nonmonetary goods or services. 
D) Most consumers believe price has little influence on their purchase decisions. 
E) Pricing is unaffected by changes in the business cycle.

Question 8

Demand would most likely be inelastic for which of the following?

Accepted Answer

A) lamb chops and t-bone steaks 
B) gourmet cheese 
C) symphony tickets 
D) luxury watches 
E) basic necessities 
A) lamb chops and t-bone steaks 
B) gourmet cheese 
C) symphony tickets 
D) luxury watches 
E) basic necessities

Question 9

Which of the following is an example of a variable cost for an amusement park?

Accepted Answer

A) salary of the park manager 
B) food cart supplies 
C) liability insurance 
D) interest on the property's mortgage 
E) property taxes 
A) salary of the park manager 
B) food cart supplies 
C) liability insurance 
D) interest on the property's mortgage 
E) property taxes

Question 10

Break-even analysis is used to examine the relationship between ________.

Accepted Answer

A) fixed costs and variable costs 
B) costs and contributions 
C) costs and price 
D) demand and costs 
E) demand and profits 
A) fixed costs and variable costs 
B) costs and contributions 
C) costs and price 
D) demand and costs 
E) demand and profits

Question 11

________ refers to the sale of two or more goods or services as a single package for one price.

Accepted Answer

A) Two-part pricing 
B) Captive pricing 
C) Price bundling 
D) List pricing 
E) Everyday low pricing 
A) Two-part pricing 
B) Captive pricing 
C) Price bundling 
D) List pricing 
E) Everyday low pricing

Question 12

Which of the following is a set price or price range in consumers' minds that they refer to in evaluating a product's price?

Accepted Answer

A) dynamic price 
B) internal reference price 
C) suggested retail price 
D) captive price 
E) value price 
A) dynamic price 
B) internal reference price 
C) suggested retail price 
D) captive price 
E) value price

Question 13

A number of top fashion-modeling agencies were charged with ________ because they were jointly determining what commissions they would charge for models.

Accepted Answer

A) prestige pricing 
B) horizontal price lining 
C) vertical price lining 
D) vertical price-fixing 
E) horizontal price-fixing 
A) prestige pricing 
B) horizontal price lining 
C) vertical price lining 
D) vertical price-fixing 
E) horizontal price-fixing

Question 14

Enforcing laws against ________ is complicated because such practices are similar to the legal practice of "trading up."

Accepted Answer

A) price bundling 
B) captive pricing 
C) bait-and-switch tactics 
D) prestige pricing 
E) placebo effect pricing 
A) price bundling 
B) captive pricing 
C) bait-and-switch tactics 
D) prestige pricing 
E) placebo effect pricing

Question 15

All 50 U.S.states consider loss leader practices to be wrong and have passed legislation called "unfair sales acts," also called "unfair trade practices acts."

Accepted Answer

A) True 
 B)False

Question 16

What are the two types of price fixing? Briefly define each.

Accepted Answer

Horizontal price fixing occurs when comp

Question 17

Many people rely on a prescription drug to control their cholesterol.An increase in the price of the drug would have little effect on the quantity demanded because there are no substitutes for the drug and because people who take it have no choice but to continue taking it if they wish to stay healthy.The demand for the cholesterol drug is ________.

Accepted Answer

A) elastic 
B) inelastic 
C) cross-elastic 
D) supply-driven 
E) asymmetrical 
A) elastic 
B) inelastic 
C) cross-elastic 
D) supply-driven 
E) asymmetrical

Question 18

Surge pricing occurs when a company raises the price of its product when demand for the product goes up and lowers the price of its product when demand goes down.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is an advantage of using cost-based pricing methods?

Accepted Answer

A) They consider external factors such as competition. 
B) They include consideration of the effects of demand. 
C) They are relatively simple to calculate. 
D) They make accurate cost estimating a simple process. 
E) They take the product life cycle into consideration. 
A) They consider external factors such as competition. 
B) They include consideration of the effects of demand. 
C) They are relatively simple to calculate. 
D) They make accurate cost estimating a simple process. 
E) They take the product life cycle into consideration.

Question 20

Which of the following is a reason that a marketer would choose a penetration pricing strategy?

Accepted Answer

A) to ensure the company has the ability to increase prices once demand decreases 
B) to focus on the rapid achievement of profit objectives 
C) to appeal to different consumer segments with different levels of price sensitivity 
D) to create markets for highly technical products 
E) to discourage competition from entering the market 
A) to ensure the company has the ability to increase prices once demand decreases 
B) to focus on the rapid achievement of profit objectives 
C) to appeal to different consumer segments with different levels of price sensitivity 
D) to create markets for highly technical products 
E) to discourage competition from entering the market

When the seller takes on part or all of the cost of shipping,it is called ________.

Which of the following is true about the demand curve?

Explain the pricing strategy being implemented when a retail store places the store's generic brand items next to the national brand items when the national brand items have a slightly higher price than the generic brand item.Why would a retailer do this?

A new product carries a low price for a limited period of time to attract customers in what type of pricing strategy?

Mark believes he should pay more than $49.95 for a motel room;this price is his internal reference price.

________ do not vary with the number of units produced.

Which of the following statements about price is true?

Demand would most likely be inelastic for which of the following?

Which of the following is an example of a variable cost for an amusement park?

Break-even analysis is used to examine the relationship between ________.

________ refers to the sale of two or more goods or services as a single package for one price.

Which of the following is a set price or price range in consumers' minds that they refer to in evaluating a product's price?

A number of top fashion-modeling agencies were charged with ________ because they were jointly determining what commissions they would charge for models.

Enforcing laws against ________ is complicated because such practices are similar to the legal practice of "trading up."

All 50 U.S.states consider loss leader practices to be wrong and have passed legislation called "unfair sales acts," also called "unfair trade practices acts."

What are the two types of price fixing? Briefly define each.

Surge pricing occurs when a company raises the price of its product when demand for the product goes up and lowers the price of its product when demand goes down.

Which of the following is an advantage of using cost-based pricing methods?

Which of the following is a reason that a marketer would choose a penetration pricing strategy?

Welcome to the World of Marketing

Global, ethical, and Sustainable Marketing

Strategic Market Planning

Market Research

Marketing Analytics: Welcome to the Era of Big Data

Understand Consumer and Business Markets

Segmentation,target Marketing,and Positioning

Innovation and New Product Development

Product II: Product Strategy,branding,and Product Management

Deliver Value Through Supply Chain Management,channels of Distribution,and Logistics

Delivering the Customer Experience: Bricks and Clicks

Promotion I: Advertising and Sales Promotion

Promotion II: Social Media, directdatabase Marketing, personal Selling, and Public Relations

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Exam 10: Price: What Is the Value Proposition Worth

When the seller takes on part or all of the cost of shipping,it is called ________.

Which of the following is true about the demand curve?

Explain the pricing strategy being implemented when a retail store places the store's generic brand items next to the national brand items when the national brand items have a slightly higher price than the generic brand item.Why would a retailer do this?

A new product carries a low price for a limited period of time to attract customers in what type of pricing strategy?

Mark believes he should pay more than $49.95 for a motel room;this price is his internal reference price.

________ do not vary with the number of units produced.

Which of the following statements about price is true?

Demand would most likely be inelastic for which of the following?

Which of the following is an example of a variable cost for an amusement park?

Break-even analysis is used to examine the relationship between ________.

________ refers to the sale of two or more goods or services as a single package for one price.

Which of the following is a set price or price range in consumers' minds that they refer to in evaluating a product's price?

A number of top fashion-modeling agencies were charged with ________ because they were jointly determining what commissions they would charge for models.

Enforcing laws against ________ is complicated because such practices are similar to the legal practice of "trading up."

All 50 U.S.states consider loss leader practices to be wrong and have passed legislation called "unfair sales acts," also called "unfair trade practices acts."

What are the two types of price fixing? Briefly define each.

Surge pricing occurs when a company raises the price of its product when demand for the product goes up and lowers the price of its product when demand goes down.

Which of the following is an advantage of using cost-based pricing methods?

Which of the following is a reason that a marketer would choose a penetration pricing strategy?

Welcome to the World of Marketing

Global, ethical, and Sustainable Marketing

Strategic Market Planning

Market Research

Marketing Analytics: Welcome to the Era of Big Data

Understand Consumer and Business Markets

Segmentation,target Marketing,and Positioning

Innovation and New Product Development

Product II: Product Strategy,branding,and Product Management

Deliver Value Through Supply Chain Management,channels of Distribution,and Logistics

Delivering the Customer Experience: Bricks and Clicks

Promotion I: Advertising and Sales Promotion

Promotion II: Social Media, directdatabase Marketing, personal Selling, and Public Relations

Filters