Question 1

Rent,interest,and executive salaries are examples of ________.

Accepted Answer

A)  fixed costs 
B)  variable costs 
C)  accumulated costs 
D)  total costs 
E)  marketing costs 
A)  fixed costs 
B)  variable costs 
C)  accumulated costs 
D)  total costs 
E)  marketing costs

Question 2

Price elasticity of demand is ________ divided by ________.

Accepted Answer

A)  percent change in quantity demanded; percent change in price 
B)  demand; price 
C)  percent change in price; percent change in quantity demanded 
D)  the going price; the asking price 
E)  retail value; list price 
A)  percent change in quantity demanded; percent change in price 
B)  demand; price 
C)  percent change in price; percent change in quantity demanded 
D)  the going price; the asking price 
E)  retail value; list price

Question 3

Explain the significance of a downward-sloping experience curve.

Accepted Answer

Not only will the company's un

Question 4

________ is the amount of money charged for a product or service.

Accepted Answer

A)  Value 
B)  A demand 
C)  Price 
D)  A wage 
E)  Salary 
A)  Value 
B)  A demand 
C)  Price 
D)  A wage 
E)  Salary

Question 5

Assume a manufacturer with fixed costs of $100,000,a variable cost of $10,and expected sales of 50,000 units wants to earn a 20 percent markup on sales.What is the manufacturer's markup price?

Accepted Answer

A)  $14 
B)  $15 
C)  $18 
D)  $18.50 
E)  none of the above 
A)  $14 
B)  $15 
C)  $18 
D)  $18.50 
E)  none of the above

Question 6

If demand changes greatly with price,we say the demand is inelastic.

Accepted Answer

A) True 
 B)False

Question 7

In competition-based pricing,_________ will base their judgments of a product's value on the prices that competitors charge for similar products.

Accepted Answer

A)  competitors 
B)  consumers 
C)  producers 
D)  manufacturers 
E)  clients 
A)  competitors 
B)  consumers 
C)  producers 
D)  manufacturers 
E)  clients

Question 8

Environmental elements are categorized as external factors that affect pricing decisions.

Accepted Answer

A) True 
 B)False

Question 9

Consumers usually perceive higher-priced products as ________.

Accepted Answer

A)  out of reach for most people 
B)  having more allure 
C)  having target-cost prices 
D)  having cost-based prices 
E)  being in the introductory stage of the product life cycle 
A)  out of reach for most people 
B)  having more allure 
C)  having target-cost prices 
D)  having cost-based prices 
E)  being in the introductory stage of the product life cycle

Question 10

Explain how break-even analysis can be used for target profit pricing.

Accepted Answer

The firm determines the price at which i

Question 11

Explain a pure monopoly.

Accepted Answer

The market consists

Question 12

Compare pure competition with oligopolistic competition.

Accepted Answer

Under pure competition,the market consis

Question 13

Superior Tires has decided to decrease its prices.The company can expect that ________ for its product will increase.

Accepted Answer

A)  cost-plus pricing 
B)  value-based pricing 
C)  demand 
D)  the experience curve 
E)  competition 
A)  cost-plus pricing 
B)  value-based pricing 
C)  demand 
D)  the experience curve 
E)  competition

Question 14

Refer to the scenario below to answer the following questions.
Pensonic Manufacturing produces small kitchen appliances-blenders, hand mixers, and electric skillets. Pensonic attempts to target newlyweds and first-time home buyers with this brand, under a market share leadership strategy.
In considering that most young households have limited financial resources, Pensonic has attempted to engage in target costing. "In doing this," Pensonic's manager Abdul Razak stated, "we have better control over keeping price right in line with customers."
Pensonic manufactures a three-speed blender, its top seller, and a five-speed blender. The hand mixers are manufactured in two styles-a small hand-held mixer with two rotating beaters and a similar style that comes with an optional stand and attached mixing bowl. Alden's temperature-controlled skillets are manufactured in one style with three color options.
"Our product offerings are narrower," Abdul Razak added, "but our line workers know each product like the back of their hands. This allows us to produce superior products while holding our prices low."
-If Abdul raises the price on the handheld mixer by 2 percent and quantity demanded falls by 10 percent,what is the price elasticity of demand?

Accepted Answer

A)  -5 
B)  -8 
C)  -12 
D)  5 
E)  12 
A)  -5 
B)  -8 
C)  -12 
D)  5 
E)  12

Question 15

________ describes how responsive demand will be to a change in price.

Accepted Answer

A)  Price elasticity 
B)  Break-even pricing 
C)  The demand curve 
D)  Target costing 
E)  Supply 
A)  Price elasticity 
B)  Break-even pricing 
C)  The demand curve 
D)  Target costing 
E)  Supply

Question 16

Cost-based pricing relies on consumer perception of value to drive pricing.

Accepted Answer

A) True 
 B)False

Question 17

Xbox 360 decides to add a free subscription to XBOX magazine with every game bought in an effort to differentiate its offering from PS3 games.This is an example of ________.

Accepted Answer

A)  good-value pricing 
B)  add-on pricing 
C)  product-support pricing 
D)  value-added pricing 
E)  cost-based pricing 
A)  good-value pricing 
B)  add-on pricing 
C)  product-support pricing 
D)  value-added pricing 
E)  cost-based pricing

Question 18

________ pricing works only if that price actually brings in the expected level of sales.

Accepted Answer

A)  Elasticity 
B)  Markup 
C)  Variable 
D)  Inelasticity 
E)  Target profit 
A)  Elasticity 
B)  Markup 
C)  Variable 
D)  Inelasticity 
E)  Target profit

Question 19

Under ________,the market consists of one seller.

Accepted Answer

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

Question 20

Demand and consumer value perceptions set the floor for prices.

Accepted Answer

A) True 
 B)False

Rent,interest,and executive salaries are examples of ________.

Price elasticity of demand is divided by .

Explain the significance of a downward-sloping experience curve.

________ is the amount of money charged for a product or service.

Assume a manufacturer with fixed costs of $100,000,a variable cost of $10,and expected sales of 50,000 units wants to earn a 20 percent markup on sales.What is the manufacturer's markup price?

If demand changes greatly with price,we say the demand is inelastic.

In competition-based pricing,_________ will base their judgments of a product's value on the prices that competitors charge for similar products.

Environmental elements are categorized as external factors that affect pricing decisions.

Consumers usually perceive higher-priced products as ________.

Explain how break-even analysis can be used for target profit pricing.

Explain a pure monopoly.

Compare pure competition with oligopolistic competition.

Superior Tires has decided to decrease its prices.The company can expect that ________ for its product will increase.

________ describes how responsive demand will be to a change in price.

Cost-based pricing relies on consumer perception of value to drive pricing.

Xbox 360 decides to add a free subscription to XBOX magazine with every game bought in an effort to differentiate its offering from PS3 games.This is an example of ________.

________ pricing works only if that price actually brings in the expected level of sales.

Under ________,the market consists of one seller.

Demand and consumer value perceptions set the floor for prices.

Marketing: Managing Profitable Customer Relationships

Company and Marketing Strategy: Partnering to Build

The Marketing Environment

Managing Marketing Information

Consumer Markets and Consumer Buyer Behavior

Business Markets and Business Buyer Behavior

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Products,Services,and Brands: Building Customer Value

New Product Development and Product Life-Cycle Strategies

Pricing Products: Pricing Strategies

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value: Integrated Marketing

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct and Online Marketing: Building Direct Customer Relationships

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters

Exam 10: Pricing Products: Understanding and Capturing Customer Value

Rent,interest,and executive salaries are examples of ________.

Price elasticity of demand is ________ divided by ________.

Explain the significance of a downward-sloping experience curve.

________ is the amount of money charged for a product or service.

Assume a manufacturer with fixed costs of $100,000,a variable cost of $10,and expected sales of 50,000 units wants to earn a 20 percent markup on sales.What is the manufacturer's markup price?

If demand changes greatly with price,we say the demand is inelastic.

In competition-based pricing,_________ will base their judgments of a product's value on the prices that competitors charge for similar products.

Environmental elements are categorized as external factors that affect pricing decisions.

Consumers usually perceive higher-priced products as ________.

Explain how break-even analysis can be used for target profit pricing.

Explain a pure monopoly.

Compare pure competition with oligopolistic competition.

Superior Tires has decided to decrease its prices.The company can expect that ________ for its product will increase.

________ describes how responsive demand will be to a change in price.

Cost-based pricing relies on consumer perception of value to drive pricing.

Xbox 360 decides to add a free subscription to XBOX magazine with every game bought in an effort to differentiate its offering from PS3 games.This is an example of ________.

________ pricing works only if that price actually brings in the expected level of sales.

Under ________,the market consists of one seller.

Demand and consumer value perceptions set the floor for prices.

Marketing: Managing Profitable Customer Relationships

Company and Marketing Strategy: Partnering to Build

The Marketing Environment

Managing Marketing Information

Consumer Markets and Consumer Buyer Behavior

Business Markets and Business Buyer Behavior

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Products,Services,and Brands: Building Customer Value

New Product Development and Product Life-Cycle Strategies

Pricing Products: Pricing Strategies

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value: Integrated Marketing

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct and Online Marketing: Building Direct Customer Relationships

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters

Price elasticity of demand is divided by .