Question 1

The break-even volume is the point at which ________.

Accepted Answer

A)  the total revenue and total cost curves intersect 
B)  demand equals supply 
C)  the production of one more unit will not lead to increase in demand 
D)  the company can pay off all its long-term debt 
E)  a firm exceeds the sales forecast 
A)  the total revenue and total cost curves intersect 
B)  demand equals supply 
C)  the production of one more unit will not lead to increase in demand 
D)  the company can pay off all its long-term debt 
E)  a firm exceeds the sales forecast

Question 2

The simplest pricing method is ________ pricing.

Accepted Answer

A)  value-based 
B)  fixed cost 
C)  cost-plus 
D)  target return 
E)  competition-based 
A)  value-based 
B)  fixed cost 
C)  cost-plus 
D)  target return 
E)  competition-based

Question 3

A manufacturer has fixed costs of $100,000, a variable cost of $10 per unit of output, and break-even volume of 50,000 units. What should the manufacturer's unit cost be in order to break even?

Accepted Answer

A)  $10 
B)  $12 
C)  $14 
D)  $16 
E)  $20 
A)  $10 
B)  $12 
C)  $14 
D)  $16 
E)  $20

Question 4

Good-value pricing usually is used by premium brands, and rarely by less-expensive brands.

Accepted Answer

A) True 
 B)False

Question 5

________ pricing uses buyers' perceptions of value as the key to pricing.

Accepted Answer

A)  Customer value-based 
B)  Cost-based 
C)  Time-based 
D)  Markup 
E)  Target return 
A)  Customer value-based 
B)  Cost-based 
C)  Time-based 
D)  Markup 
E)  Target return

Question 6

Under ________, the market consists of many buyers and sellers trading in a uniform commodity.

Accepted Answer

A)  pure competition 
B)  monopolistic competition 
C)  oligopolistic competition 
D)  a pure monopoly 
E)  the dominant firm model 
A)  pure competition 
B)  monopolistic competition 
C)  oligopolistic competition 
D)  a pure monopoly 
E)  the dominant firm model

Question 7

Break-even volume is the number of unit sales required for total revenue to cover total cost.

Accepted Answer

A) True 
 B)False

Question 8

Why is markup pricing most likely impractical?

Accepted Answer

A)  Calculating costs is complicated due to fluctuations. 
B)  By tying the price to cost, sellers oversimplify pricing. 
C)  When all firms in the industry use this pricing method, prices tend to be similar. 
D)  The method ignores demand and competitor prices. 
E)  With a standard markup, consumers know when they are being overcharged. 
A)  Calculating costs is complicated due to fluctuations. 
B)  By tying the price to cost, sellers oversimplify pricing. 
C)  When all firms in the industry use this pricing method, prices tend to be similar. 
D)  The method ignores demand and competitor prices. 
E)  With a standard markup, consumers know when they are being overcharged.

Question 9

Which of the following shows the number of units the market will buy in a given time period, at different prices that might be charged?

Accepted Answer

A)  demand curve 
B)  supply curve 
C)  learning curve 
D)  break-even pricing 
E)  target costing 
A)  demand curve 
B)  supply curve 
C)  learning curve 
D)  break-even pricing 
E)  target costing

Question 10

Price setting is usually determined by ________ in small companies.

Accepted Answer

A)  the top managers 
B)  the marketing department 
C)  the sales department 
D)  divisional managers 
E)  product managers 
A)  the top managers 
B)  the marketing department 
C)  the sales department 
D)  divisional managers 
E)  product managers

Question 11

In Viña del Mar, Chile, a large number of shops specialize in selling the same quality of seafood products along the beach frequented by tourists. No individual shop dares charge more than the going price without fearing loss of business to other shops. This exemplifies ________.

Accepted Answer

A)  pure competition 
B)  monopolistic competition 
C)  oligopolistic competition 
D)  pure monopoly 
E)  the dominant firm model 
A)  pure competition 
B)  monopolistic competition 
C)  oligopolistic competition 
D)  pure monopoly 
E)  the dominant firm model

Question 12

A downward-sloping experience curve is indicative of ________.

Accepted Answer

A)  the negative customer perception about a company's products 
B)  the falling demand for a company's products 
C)  the falling unit production cost of a company 
D)  the low quality of a company's products 
E)  slow and inadequate organizational learning 
A)  the negative customer perception about a company's products 
B)  the falling demand for a company's products 
C)  the falling unit production cost of a company 
D)  the low quality of a company's products 
E)  slow and inadequate organizational learning

Question 13

In industrial markets, ________ typically has the final say in setting the pricing objectives and policies of a company.

Accepted Answer

A)  the sales manager 
B)  top management 
C)  the production manager 
D)  the HR department 
E)  the sales staff 
A)  the sales manager 
B)  top management 
C)  the production manager 
D)  the HR department 
E)  the sales staff

Question 14

Dips in the economy and the instant price comparisons made possible by the Internet have contributed to ________.

Accepted Answer

A)  decreased consumer price sensitivity 
B)  increased consumer price sensitivity 
C)  a less direct relationship between supply and demand 
D)  low brand equity for luxury goods 
E)  decreased brand loyalty 
A)  decreased consumer price sensitivity 
B)  increased consumer price sensitivity 
C)  a less direct relationship between supply and demand 
D)  low brand equity for luxury goods 
E)  decreased brand loyalty

Question 15

Mansfield Pharmaceuticals markets Zipro, an antibiotic. The firm has fixed costs of $1,000,000 and variable costs of $2 per bottle of 50 tablets priced at $10 per bottle. What is the break-even volume?

Accepted Answer

A)  25,000 
B)  55,000 
C)  100,000 
D)  115,000 
E)  125,000 
A)  25,000 
B)  55,000 
C)  100,000 
D)  115,000 
E)  125,000

Question 16

Cost-plus pricing ________.

Accepted Answer

A)  is a complex pricing method 
B)  involves pricing that accurately reflects production costs 
C)  involves adding a standard markup for profit 
D)  aims at breaking even on the costs of making and marketing a product 
E)  is a value-based pricing method 
A)  is a complex pricing method 
B)  involves pricing that accurately reflects production costs 
C)  involves adding a standard markup for profit 
D)  aims at breaking even on the costs of making and marketing a product 
E)  is a value-based pricing method

Question 17

The Great Recession of 2008 to 2009 triggered a shift in consumer attitudes toward ________.

Accepted Answer

A)  variety and price 
B)  perceptions of value 
C)  locations of stores 
D)  price and quality 
E)  economic data 
A)  variety and price 
B)  perceptions of value 
C)  locations of stores 
D)  price and quality 
E)  economic data

Question 18

The fixed cost in manufacturing a single LED monitor is $40 and the variable cost is $12. If the company expects to manufacture 5,000 monitors, the total costs would be ________.

Accepted Answer

A)  $60,000 
B)  $200,000 
C)  $260,000 
D)  $420,000 
E)  $500,000 
A)  $60,000 
B)  $200,000 
C)  $260,000 
D)  $420,000 
E)  $500,000

Question 19

In 2011, the fixed costs of a company were $500,000, and its variable costs equaled $150,000. In 2010, the company made an annual profit of $200,000. It has been predicted that, despite a steady growth, the company's variable costs will likely equal $300,000 by 2013. The total costs of the company in 2011 were ________.

Accepted Answer

A)  $350,000 
B)  $450,000 
C)  $650,000 
D)  $800,000 
E)  $950,000 
A)  $350,000 
B)  $450,000 
C)  $650,000 
D)  $800,000 
E)  $950,000

Question 20

What is high-low pricing?

Accepted Answer

High-low pricing involves char

The break-even volume is the point at which ________.

The simplest pricing method is ________ pricing.

A manufacturer has fixed costs of $100,000, a variable cost of $10 per unit of output, and break-even volume of 50,000 units. What should the manufacturer's unit cost be in order to break even?

Good-value pricing usually is used by premium brands, and rarely by less-expensive brands.

________ pricing uses buyers' perceptions of value as the key to pricing.

Under ________, the market consists of many buyers and sellers trading in a uniform commodity.

Break-even volume is the number of unit sales required for total revenue to cover total cost.

Why is markup pricing most likely impractical?

Which of the following shows the number of units the market will buy in a given time period, at different prices that might be charged?

Price setting is usually determined by ________ in small companies.

In Viña del Mar, Chile, a large number of shops specialize in selling the same quality of seafood products along the beach frequented by tourists. No individual shop dares charge more than the going price without fearing loss of business to other shops. This exemplifies ________.

A downward-sloping experience curve is indicative of ________.

In industrial markets, ________ typically has the final say in setting the pricing objectives and policies of a company.

Dips in the economy and the instant price comparisons made possible by the Internet have contributed to ________.

Mansfield Pharmaceuticals markets Zipro, an antibiotic. The firm has fixed costs of $1,000,000 and variable costs of $2 per bottle of 50 tablets priced at $10 per bottle. What is the break-even volume?

Cost-plus pricing ________.

The Great Recession of 2008 to 2009 triggered a shift in consumer attitudes toward ________.

The fixed cost in manufacturing a single LED monitor is $40 and the variable cost is $12. If the company expects to manufacture 5,000 monitors, the total costs would be ________.

What is high-low pricing?

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Buyer Behavior

Business Markets and Business Buyer Behavior

Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Pricing Strategies: Additional Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters

Exam 10: Pricing: Understanding and Capturing Customer Value

The break-even volume is the point at which ________.

The simplest pricing method is ________ pricing.

A manufacturer has fixed costs of $100,000, a variable cost of $10 per unit of output, and break-even volume of 50,000 units. What should the manufacturer's unit cost be in order to break even?

Good-value pricing usually is used by premium brands, and rarely by less-expensive brands.

________ pricing uses buyers' perceptions of value as the key to pricing.

Under ________, the market consists of many buyers and sellers trading in a uniform commodity.

Break-even volume is the number of unit sales required for total revenue to cover total cost.

Why is markup pricing most likely impractical?

Which of the following shows the number of units the market will buy in a given time period, at different prices that might be charged?

Price setting is usually determined by ________ in small companies.

In Viña del Mar, Chile, a large number of shops specialize in selling the same quality of seafood products along the beach frequented by tourists. No individual shop dares charge more than the going price without fearing loss of business to other shops. This exemplifies ________.

A downward-sloping experience curve is indicative of ________.

In industrial markets, ________ typically has the final say in setting the pricing objectives and policies of a company.

Dips in the economy and the instant price comparisons made possible by the Internet have contributed to ________.

Mansfield Pharmaceuticals markets Zipro, an antibiotic. The firm has fixed costs of $1,000,000 and variable costs of $2 per bottle of 50 tablets priced at $10 per bottle. What is the break-even volume?

Cost-plus pricing ________.

The Great Recession of 2008 to 2009 triggered a shift in consumer attitudes toward ________.

The fixed cost in manufacturing a single LED monitor is $40 and the variable cost is $12. If the company expects to manufacture 5,000 monitors, the total costs would be ________.

What is high-low pricing?

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Buyer Behavior

Business Markets and Business Buyer Behavior

Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Pricing Strategies: Additional Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters