Question 1

If demand is elastic,will sellers consider lowering their prices? Explain.

Accepted Answer

Yes.A lower price will produce

Question 2

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

Accepted Answer

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

Question 3

Fixed costs _ as the number of units produced increases.

Accepted Answer

A) decrease 
B) increase at a diminishing rate 
C) divide in half 
D) remain the same 
E) increase 
A) decrease 
B) increase at a diminishing rate 
C) divide in half 
D) remain the same 
E) increase

Question 4

What costs make up a product's total cost?

Accepted Answer

Fixed costs and vari

Question 5

As production workers become better organized and more familiar with equipment,the average cost per unit decreases.This is called the .

Accepted Answer

A) marginal utility 
B) experience curve 
C) demand curve 
D) long- run average cost curve 
E) short- run average cost curve 
A) marginal utility 
B) experience curve 
C) demand curve 
D) long- run average cost curve 
E) short- run average cost curve

Question 6

Which of the following is a risk a company takes when building a strategy around the experience curve?

Accepted Answer

A) Aggressive pricing may give the product a cheap image,causing customers to lose interest. 
B) The method may cause consumers to become frustrated with changing prices. 
C) Competitors will likely not be able to meet the company's price cuts. 
D) Existing technologies are likely to become more expensive as the company expands. 
E) The method does not take competitors' prices into account. 
A) Aggressive pricing may give the product a cheap image,causing customers to lose interest. 
B) The method may cause consumers to become frustrated with changing prices. 
C) Competitors will likely not be able to meet the company's price cuts. 
D) Existing technologies are likely to become more expensive as the company expands. 
E) The method does not take competitors' prices into account.

Question 7

How important is price among the elements of the marketing mix?

Accepted Answer

In recent decades,nonprice fac

Question 8

Ecstasy Pharmaceuticals faces fixed costs with its new drug of $1,000,000.The company sells the drug in bottles of 50 pills for $10.00.It estimates that it must sell 200,000 bottles to break even.What is the total cost to produce a bottle of 50 pills?

Accepted Answer

A) $5.00 
B) $2.50 
C) $6.00 
D) $7.50 
E) not enough information to calculate 
A) $5.00 
B) $2.50 
C) $6.00 
D) $7.50 
E) not enough information to calculate

Question 9

A marketer's fixed costs are $400,000,the variable cost is $16,and the company expects the product to sell for $24.If the marketer has sales of $1,440,000,what is its profit on this product?

Accepted Answer

The profit

Question 10

General Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment.This approach is called .

Accepted Answer

A) going- rate pricing 
B) target- return pricing 
C) cost- plus pricing 
D) value- based pricing 
E) low- price image 
A) going- rate pricing 
B) target- return pricing 
C) cost- plus pricing 
D) value- based pricing 
E) low- price image

If demand is elastic,will sellers consider lowering their prices? Explain.

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

Fixed costs _ as the number of units produced increases.

What costs make up a product's total cost?

As production workers become better organized and more familiar with equipment,the average cost per unit decreases.This is called the .

Which of the following is a risk a company takes when building a strategy around the experience curve?

How important is price among the elements of the marketing mix?

Ecstasy Pharmaceuticals faces fixed costs with its new drug of $1,000,000.The company sells the drug in bottles of 50 pills for $10.00.It estimates that it must sell 200,000 bottles to break even.What is the total cost to produce a bottle of 50 pills?

A marketer's fixed costs are $400,000,the variable cost is $16,and the company expects the product to sell for $24.If the marketer has sales of $1,440,000,what is its profit on this product?

General Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment.This approach is called .

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

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

Developing New Products and Managing the Product Life Cycle

Additional Pricing Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value

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 Strategies: Understanding and Capturing Customer Value

If demand is elastic,will sellers consider lowering their prices? Explain.

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

Fixed costs _ as the number of units produced increases.

What costs make up a product's total cost?

As production workers become better organized and more familiar with equipment,the average cost per unit decreases.This is called the .

Which of the following is a risk a company takes when building a strategy around the experience curve?

How important is price among the elements of the marketing mix?

Ecstasy Pharmaceuticals faces fixed costs with its new drug of $1,000,000.The company sells the drug in bottles of 50 pills for $10.00.It estimates that it must sell 200,000 bottles to break even.What is the total cost to produce a bottle of 50 pills?

A marketer's fixed costs are $400,000,the variable cost is $16,and the company expects the product to sell for $24.If the marketer has sales of $1,440,000,what is its profit on this product?

General Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment.This approach is called .

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

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

Developing New Products and Managing the Product Life Cycle

Additional Pricing Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value

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