Question 1

Break-even analysis is the method of determining the cost of buying the product from the producer,plus amounts for profit and for expenses not otherwise accounted for.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following refers to a pricing objective that maintains existing prices or meets the competition's prices?

Accepted Answer

A)  Sales maximization 
B)  Status quo pricing 
C)  Satisfactory pricing 
D)  Pricing based on perceived satisfaction 
A)  Sales maximization 
B)  Status quo pricing 
C)  Satisfactory pricing 
D)  Pricing based on perceived satisfaction

Question 3

Which of the following is a limitation of break-even analysis?

Accepted Answer

A)  It does not give an estimate of how much profit can be earned once the break-even point is obtained. 
B)  It does not give weight to the cost of labor that is incurred during production. 
C)  Sometimes it cannot predict the effect of changes in sales price. 
D)  Sometimes it is hard to know whether a cost is fixed or variable. 
A)  It does not give an estimate of how much profit can be earned once the break-even point is obtained. 
B)  It does not give weight to the cost of labor that is incurred during production. 
C)  Sometimes it cannot predict the effect of changes in sales price. 
D)  Sometimes it is hard to know whether a cost is fixed or variable.

Question 4

When a seller establishes a series of prices for a type of merchandise,it creates an odd-even pricing.

Accepted Answer

A) True 
 B)False

Question 5

Which term refers to a pricing policy whereby a firm charges a high introductory price,often coupled with heavy promotion?

Accepted Answer

A)  Price skimming 
B)  Penetration pricing 
C)  Status quo pricing 
D)  Sales maximization 
A)  Price skimming 
B)  Penetration pricing 
C)  Status quo pricing 
D)  Sales maximization

Question 6

Dynamic pricing has better equipped brick-and-mortar stores to compete with their online alternatives.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is the final stage in the product life cycle?

Accepted Answer

A)  Maturity stage 
B)  Decline stage 
C)  Growth stage 
D)  Introductory stage 
A)  Maturity stage 
B)  Decline stage 
C)  Growth stage 
D)  Introductory stage

Question 8

Explain what is meant by shopping bots,identify several different types of these bots,and discuss how they help consumers make purchase decisions.

Accepted Answer

Answers will vary.The Internet,Extranets

Question 9

Zen Electronics has taken a penetration pricing approach to launch its new line of mobiles.Therefore,Zen is most likely to ______.

Accepted Answer

A)  initially charge a relatively low price per product 
B)  introduce the line at a relatively high price per product 
C)  wait until the current competition weakens 
D)  join the competition at its peak 
A)  initially charge a relatively low price per product 
B)  introduce the line at a relatively high price per product 
C)  wait until the current competition weakens 
D)  join the competition at its peak

Question 10

A price tactic that requires the buyer to absorb the freight costs from the shipping point is called ______________.

Accepted Answer

A)  value-based pricing 
B)  FOB origin pricing 
C)  uniform delivered pricing 
D)  zone pricing 
A)  value-based pricing 
B)  FOB origin pricing 
C)  uniform delivered pricing 
D)  zone pricing

Question 11

When a seller establishes a series of prices for a type of merchandise,a purchase agreement is violated.

Accepted Answer

A) True 
 B)False

Question 12

When a purchase decision involves uncertainty,which of the following statements best describes the price-quality relationship?

Accepted Answer

A)  Consumers perceive lower-priced goods to be more long-lasting than higher-priced goods. 
B)  Consumers believe that higher-priced goods are manufactured with materials or ingredients of better quality. 
C)  Consumers lack information about the quality of lower-priced goods due to poor advertising. 
D)  Consumer demand for higher priced goods remains unchanged even if product quality declines. 
A)  Consumers perceive lower-priced goods to be more long-lasting than higher-priced goods. 
B)  Consumers believe that higher-priced goods are manufactured with materials or ingredients of better quality. 
C)  Consumers lack information about the quality of lower-priced goods due to poor advertising. 
D)  Consumer demand for higher priced goods remains unchanged even if product quality declines.

Question 13

Define what is meant by consumer penalties and provide reasons why companies would impose them on consumers.

Accepted Answer

Answers will vary.More and more business

Break-even analysis is the method of determining the cost of buying the product from the producer,plus amounts for profit and for expenses not otherwise accounted for.

Which of the following refers to a pricing objective that maintains existing prices or meets the competition's prices?

Which of the following is a limitation of break-even analysis?

When a seller establishes a series of prices for a type of merchandise,it creates an odd-even pricing.

Which term refers to a pricing policy whereby a firm charges a high introductory price,often coupled with heavy promotion?

Dynamic pricing has better equipped brick-and-mortar stores to compete with their online alternatives.

Which of the following is the final stage in the product life cycle?

Explain what is meant by shopping bots,identify several different types of these bots,and discuss how they help consumers make purchase decisions.

Zen Electronics has taken a penetration pricing approach to launch its new line of mobiles.Therefore,Zen is most likely to ______.

A price tactic that requires the buyer to absorb the freight costs from the shipping point is called ______________.

When a seller establishes a series of prices for a type of merchandise,a purchase agreement is violated.

When a purchase decision involves uncertainty,which of the following statements best describes the price-quality relationship?

Define what is meant by consumer penalties and provide reasons why companies would impose them on consumers.

An Overview of Marketing

Strategic Planning and Competitive Advantage

Ethics and Social Responsibility

The Marketing Environment

Developing a Global Vision

Consumer Decision Making

Business Marketing

Segmenting and Targeting Markets

Marketing Research

Product Concepts

Developing and Managing Products

Services and Nonprofit Organization Marketing

Supply Chain Management and Marketing Channels

Retailing

Marketing Communications

Advertising,public Relations,and Sales Promotion

Personal Selling and Sales Management

Social Media and Marketing

Filters

Exam 19: Pricing Concepts

Break-even analysis is the method of determining the cost of buying the product from the producer,plus amounts for profit and for expenses not otherwise accounted for.

Which of the following refers to a pricing objective that maintains existing prices or meets the competition's prices?

Which of the following is a limitation of break-even analysis?

When a seller establishes a series of prices for a type of merchandise,it creates an odd-even pricing.

Which term refers to a pricing policy whereby a firm charges a high introductory price,often coupled with heavy promotion?

Dynamic pricing has better equipped brick-and-mortar stores to compete with their online alternatives.

Which of the following is the final stage in the product life cycle?

Explain what is meant by shopping bots,identify several different types of these bots,and discuss how they help consumers make purchase decisions.

Zen Electronics has taken a penetration pricing approach to launch its new line of mobiles.Therefore,Zen is most likely to ______.

A price tactic that requires the buyer to absorb the freight costs from the shipping point is called ______________.

When a seller establishes a series of prices for a type of merchandise,a purchase agreement is violated.

When a purchase decision involves uncertainty,which of the following statements best describes the price-quality relationship?

Define what is meant by consumer penalties and provide reasons why companies would impose them on consumers.

An Overview of Marketing

Strategic Planning and Competitive Advantage

Ethics and Social Responsibility

The Marketing Environment

Developing a Global Vision

Consumer Decision Making

Business Marketing

Segmenting and Targeting Markets

Marketing Research

Product Concepts

Developing and Managing Products

Services and Nonprofit Organization Marketing

Supply Chain Management and Marketing Channels

Retailing

Marketing Communications

Advertising,public Relations,and Sales Promotion

Personal Selling and Sales Management

Social Media and Marketing

Filters