Question 1

The value of something we give up in order to obtain something else is referred to as a(n)________.

Accepted Answer

A) transformation cost 
B) opportunity cost 
C) exchange 
D) variable cost 
E) marginal cost 
A) transformation cost 
B) opportunity cost 
C) exchange 
D) variable cost 
E) marginal cost

Question 2

A quantity discount is a price reduction to buyers who purchase ________.

Accepted Answer

A) frequently 
B) large volumes 
C) close outs 
D) bundled products 
E) seasonal products 
A) frequently 
B) large volumes 
C) close outs 
D) bundled products 
E) seasonal products

Question 3

Why are prestige products often an exception to the law of demand?

Accepted Answer

A) The demand curve for prestige products slopes downward and to the right. 
B) Increasing the price of prestige products can make them seem more desirable. 
C) Demand for prestige products often is greater than supply. 
D) Prestige products such as diamonds,sapphires,and emeralds are nonrenewable resources. 
E) Customers are more aware of any price changes to prestige products. 
A) The demand curve for prestige products slopes downward and to the right. 
B) Increasing the price of prestige products can make them seem more desirable. 
C) Demand for prestige products often is greater than supply. 
D) Prestige products such as diamonds,sapphires,and emeralds are nonrenewable resources. 
E) Customers are more aware of any price changes to prestige products.

Question 4

With ________,the seller pays both the cost of loading and transporting the product to the customer.

Accepted Answer

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

Question 5

When consumers are unable to judge the quality of a product through examination or prior experience,they usually do which of the following?

Accepted Answer

A) Make a price-quality inference. 
B) Depend on an internal reference price. 
C) Assess the fair price. 
D) Experience an assimilation effect. 
E) Experience a price-placebo effect. 
A) Make a price-quality inference. 
B) Depend on an internal reference price. 
C) Assess the fair price. 
D) Experience an assimilation effect. 
E) Experience a price-placebo effect.

Question 6

The first step in planning how to price a product is to develop pricing objectives.

Accepted Answer

A) True 
 B)False

Question 7

Price fixing occurs when two or more companies conspire to ________.

Accepted Answer

A) keep prices at a certain level 
B) use predatory pricing 
C) use loss-leader pricing 
D) use bait-and-switch tactics 
E) prohibit competitors from entering a market 
A) keep prices at a certain level 
B) use predatory pricing 
C) use loss-leader pricing 
D) use bait-and-switch tactics 
E) prohibit competitors from entering a market

Question 8

Which of the following statements about the break-even point is true?

Accepted Answer

A) It is used to determine how many more units need to be sold to increase market share by a specific amount. 
B) It is a technique used to calculate fixed costs. 
C) It determines the amount of retained earnings a company will have during an accounting period. 
D) It is a technique marketers use to examine the relationship between supply and demand. 
E) It is calculated using contribution per unit costs and total fixed costs. 
A) It is used to determine how many more units need to be sold to increase market share by a specific amount. 
B) It is a technique used to calculate fixed costs. 
C) It determines the amount of retained earnings a company will have during an accounting period. 
D) It is a technique marketers use to examine the relationship between supply and demand. 
E) It is calculated using contribution per unit costs and total fixed costs.

Question 9

When a snow blower shop offers a price reduction to customers who buy during the spring and summer,the shop is giving a(n)________ discount.

Accepted Answer

A) functional 
B) seasonal 
C) annual 
D) trade 
E) allowance 
A) functional 
B) seasonal 
C) annual 
D) trade 
E) allowance

Question 10

Savings for You,a discount retail chain,is highly competitive.When entering a new market,Savings for You often cuts prices so deeply that it sells below costs,effectively pushing smaller companies with less purchasing power out of the market.Savings for You is most at risk of being accused of ________.

Accepted Answer

A) skimming prices 
B) price-fixing 
C) predatory pricing 
D) deceptive pricing 
E) loss leader pricing 
A) skimming prices 
B) price-fixing 
C) predatory pricing 
D) deceptive pricing 
E) loss leader pricing

Question 11

Which of the following is an example of a pricing strategy that focuses on customers' needs?

Accepted Answer

A) price leadership 
B) everyday low pricing 
C) distribution-based pricing 
D) cost-plus pricing 
E) skimming 
A) price leadership 
B) everyday low pricing 
C) distribution-based pricing 
D) cost-plus pricing 
E) skimming

Question 12

A local appliance store is advertising the sale of a 27-inch color TV for only $199.The ad states that this price will apply only to TVs that are in stock and no rain checks will be given.Fifteen minutes after the store opens on the day of the sale of the TV,a customer is told by a sales clerk that all of the TVs selling for $199 have been sold.However,the sales clerk is very happy to show the customer a similar TV for only $399.What pricing strategy is the store implementing and why?

Accepted Answer

The store is using the bait-and-switch t

Question 13

A firm is using ________ when it charges a high,premium price for a new product with the intention of reducing the price in the future.

Accepted Answer

A) a skimming price 
B) trial pricing 
C) value pricing 
D) penetration pricing 
E) prestige pricing 
A) a skimming price 
B) trial pricing 
C) value pricing 
D) penetration pricing 
E) prestige pricing

Question 14

Explain the concept of opportunity cost,giving at least one example from your life.

Accepted Answer

Opportunity cost is the value of somethi

Question 15

What is the rationale for a store advertising the sale of one item at a price that may be potentially lower than the cost of the item to the store?

Accepted Answer

The store is using this one sale item as

Question 16

How does the airline industry implement the yield management pricing strategy?

Accepted Answer

Using yield management pricing,firms cha

Question 17

The Value Meal Deal at a fast food restaurant in which you get a sandwich,fries,and a drink for one price is an example of price bundling.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following occurs when price is inelastic?

Accepted Answer

A) Price and revenue change in the same direction. 
B) Revenues decrease when price increases. 
C) Revenue is unaffected by price changes. 
D) Quantity demanded increases when price increases. 
E) The demand curve is more horizontal. 
A) Price and revenue change in the same direction. 
B) Revenues decrease when price increases. 
C) Revenue is unaffected by price changes. 
D) Quantity demanded increases when price increases. 
E) The demand curve is more horizontal.

Question 19

In a market with ________,the market consists of many buyers and a few sellers who are likely to have similar pricing.

Accepted Answer

A) pure competition 
B) monopolistic competition 
C) oligopolistic competition 
D) a pure monopoly 
E) socialism 
A) pure competition 
B) monopolistic competition 
C) oligopolistic competition 
D) a pure monopoly 
E) socialism

Question 20

A company that intends to maintain low-end pricing policies to make the market unattractive for its competitors is using which of the following pricing objectives in its price planning?

Accepted Answer

A) sales 
B) profit 
C) break-even 
D) competitive effect 
E) customer satisfaction 
A) sales 
B) profit 
C) break-even 
D) competitive effect 
E) customer satisfaction

The value of something we give up in order to obtain something else is referred to as a(n)________.

A quantity discount is a price reduction to buyers who purchase ________.

Why are prestige products often an exception to the law of demand?

With ________,the seller pays both the cost of loading and transporting the product to the customer.

When consumers are unable to judge the quality of a product through examination or prior experience,they usually do which of the following?

The first step in planning how to price a product is to develop pricing objectives.

Price fixing occurs when two or more companies conspire to ________.

Which of the following statements about the break-even point is true?

When a snow blower shop offers a price reduction to customers who buy during the spring and summer,the shop is giving a(n)________ discount.

Which of the following is an example of a pricing strategy that focuses on customers' needs?

A firm is using ________ when it charges a high,premium price for a new product with the intention of reducing the price in the future.

Explain the concept of opportunity cost,giving at least one example from your life.

What is the rationale for a store advertising the sale of one item at a price that may be potentially lower than the cost of the item to the store?

How does the airline industry implement the yield management pricing strategy?

The Value Meal Deal at a fast food restaurant in which you get a sandwich,fries,and a drink for one price is an example of price bundling.

Which of the following occurs when price is inelastic?

In a market with ________,the market consists of many buyers and a few sellers who are likely to have similar pricing.

A company that intends to maintain low-end pricing policies to make the market unattractive for its competitors is using which of the following pricing objectives in its price planning?

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

The value of something we give up in order to obtain something else is referred to as a(n)________.

A quantity discount is a price reduction to buyers who purchase ________.

Why are prestige products often an exception to the law of demand?

With ________,the seller pays both the cost of loading and transporting the product to the customer.

When consumers are unable to judge the quality of a product through examination or prior experience,they usually do which of the following?

The first step in planning how to price a product is to develop pricing objectives.

Price fixing occurs when two or more companies conspire to ________.

Which of the following statements about the break-even point is true?

When a snow blower shop offers a price reduction to customers who buy during the spring and summer,the shop is giving a(n)________ discount.

Which of the following is an example of a pricing strategy that focuses on customers' needs?

A firm is using ________ when it charges a high,premium price for a new product with the intention of reducing the price in the future.

Explain the concept of opportunity cost,giving at least one example from your life.

What is the rationale for a store advertising the sale of one item at a price that may be potentially lower than the cost of the item to the store?

How does the airline industry implement the yield management pricing strategy?

The Value Meal Deal at a fast food restaurant in which you get a sandwich,fries,and a drink for one price is an example of price bundling.

Which of the following occurs when price is inelastic?

In a market with ________,the market consists of many buyers and a few sellers who are likely to have similar pricing.

A company that intends to maintain low-end pricing policies to make the market unattractive for its competitors is using which of the following pricing objectives in its price planning?

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