Question 1

While pricing objectives frequently reflect corporate goals, pricing constraints often relate to

Accepted Answer

A)  stockholder demands. 
B)  political ideology. 
C)  conditions existing in the marketplace. 
D)  an organization's code of ethics. 
E)  the financial realities within the organization itself. 
A)  stockholder demands. 
B)  political ideology. 
C)  conditions existing in the marketplace. 
D)  an organization's code of ethics. 
E)  the financial realities within the organization itself.

Question 2

Describe the types of competitive markets and give an example of each one.

Accepted Answer

There are four types of competitive mark

Question 3

If you know the contents and price of a McDonald's Extra Value Meal, it may serve as ________ to you when you visit other fast-food restaurants and consider the purchase of a meal option there.

Accepted Answer

A)  a marginal analysis 
B)  a profit equation 
C)  a reference value 
D)  a break-even analysis 
E)  price elasticity of demand 
A)  a marginal analysis 
B)  a profit equation 
C)  a reference value 
D)  a break-even analysis 
E)  price elasticity of demand

Question 4

From a marketing viewpoint, ________ is the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

Accepted Answer

A)  value 
B)  price 
C)  barter 
D)  currency 
E)  a tariff 
A)  value 
B)  price 
C)  barter 
D)  currency 
E)  a tariff

Question 5

Figure 13-7B
-In the break-even chart in Figure 13-7 above, the line CG represents the firm's

Accepted Answer

A)  fixed costs. 
B)  break-even point. 
C)  variable costs. 
D)  profit. 
E)  total revenue. 
A)  fixed costs. 
B)  break-even point. 
C)  variable costs. 
D)  profit. 
E)  total revenue.

Question 6

Figure 13-4B
-A shift of the demand curve from D2to D3in Figure 13-4B above indicates

Accepted Answer

A)  fewer units are demanded at the given price. 
B)  more units are demanded at the given price. 
C)  the price has decreased. 
D)  the price has increased. 
E)  there is not enough information given to indicate what happened. 
A)  fewer units are demanded at the given price. 
B)  more units are demanded at the given price. 
C)  the price has decreased. 
D)  the price has increased. 
E)  there is not enough information given to indicate what happened.

Question 7

According to the price equation, final price equals list price minus ________ plus extra fees.

Accepted Answer

A)  profits 
B)  commissions 
C)  trade-ins 
D)  taxes 
E)  allowances 
A)  profits 
B)  commissions 
C)  trade-ins 
D)  taxes 
E)  allowances

Question 8

Economists have identified four types of competitive markets: pure monopoly, monopolistic competition, oligopoly, and

Accepted Answer

A)  pure competition. 
B)  government-dominated. 
C)  capitalist. 
D)  socialist. 
E)  communist. 
A)  pure competition. 
B)  government-dominated. 
C)  capitalist. 
D)  socialist. 
E)  communist.

Question 9

Companies are reluctant to lower their selling prices because this lowers the ________ and even more sharply increases the ________.

Accepted Answer

A)  variable cost; profit 
B)  contribution margin; break-even point 
C)  revenue; fixed costs 
D)  profit; fixed costs 
E)  fixed cost; variable costs 
A)  variable cost; profit 
B)  contribution margin; break-even point 
C)  revenue; fixed costs 
D)  profit; fixed costs 
E)  fixed cost; variable costs

Question 10

Distinguish between elastic demand and inelastic demand.

Accepted Answer

Elastic demand exists when a 1 percent d

Question 11

Factors that determine consumers' willingness and ability to pay for products and services are referred to as

Accepted Answer

A)  supply factors. 
B)  demand factors. 
C)  affordability factors. 
D)  elasticity factors. 
E)  macro environmental factors. 
A)  supply factors. 
B)  demand factors. 
C)  affordability factors. 
D)  elasticity factors. 
E)  macro environmental factors.

Question 12

The break-even point (BEP) = [Fixed cost ÷ (________ − Unit variable cost)].

Accepted Answer

A)  Total cost 
B)  Total expense 
C)  Fixed cost 
D)  Unit variable cost 
E)  Unit price 
A)  Total cost 
B)  Total expense 
C)  Fixed cost 
D)  Unit variable cost 
E)  Unit price

Question 13

An oligopoly is a competitive market situation in which

Accepted Answer

A)  many sellers follow market price for identical, commodity products. 
B)  one seller sets the price for a unique product. 
C)  few sellers compete, and are sensitive to one another's prices. 
D)  many sellers compete on nonprice factors. 
E)  one or few sellers compete solely on nonprice factors. 
A)  many sellers follow market price for identical, commodity products. 
B)  one seller sets the price for a unique product. 
C)  few sellers compete, and are sensitive to one another's prices. 
D)  many sellers compete on nonprice factors. 
E)  one or few sellers compete solely on nonprice factors.

Question 14

Which lists the types of competitive markets from most competitive to least competitive?

Accepted Answer

A)  monopolistic competition, pure monopoly, pure competition, and oligopoly 
B)  pure competition, monopolistic competition, oligopoly, and pure monopoly 
C)  pure competition, monopolistic competition, pure monopoly, and oligopoly 
D)  oligopoly, pure competition, monopolistic competition, and pure monopoly 
E)  pure monopoly, pure competition, oligopoly, and monopolistic competition 
A)  monopolistic competition, pure monopoly, pure competition, and oligopoly 
B)  pure competition, monopolistic competition, oligopoly, and pure monopoly 
C)  pure competition, monopolistic competition, pure monopoly, and oligopoly 
D)  oligopoly, pure competition, monopolistic competition, and pure monopoly 
E)  pure monopoly, pure competition, oligopoly, and monopolistic competition

Question 15

If a firm finds the demand for one of its products is inelastic, it can increase its total revenues by

Accepted Answer

A)  lowering its price. 
B)  increasing fixed costs only. 
C)  increasing variable costs only. 
D)  increasing both fixed and variable costs. 
E)  raising its price. 
A)  lowering its price. 
B)  increasing fixed costs only. 
C)  increasing variable costs only. 
D)  increasing both fixed and variable costs. 
E)  raising its price.

Question 16

Some firms pursue a ________ pricing objective, perhaps using discounting to generate cash to stave off bankruptcy.

Accepted Answer

A)  market share 
B)  survival 
C)  sales revenue 
D)  single product line 
E)  profit 
A)  market share 
B)  survival 
C)  sales revenue 
D)  single product line 
E)  profit

Question 17

If the CEO of the Clorox Co. were to say, "We want to control 40 percent of the household bleach category within the next five years," he would have set a ________ pricing objective.

Accepted Answer

A)  profit 
B)  sales 
C)  unit volume 
D)  market share 
E)  social responsibility 
A)  profit 
B)  sales 
C)  unit volume 
D)  market share 
E)  social responsibility

Question 18

A company that manages apartments decides to buy 15 new dishwashers at a list price of $550 each as replacements for old dishwashers in a small apartment complex it owns. Because the company is buying more than 10 dishwashers, it is eligible for a $150-per-unit quantity discount. Financing charges total $20 per unit. The company gets $10 per dishwasher for the 15 dishwashers traded in. What is the final price the company will pay for each dishwasher?

Accepted Answer

A)  $390 
B)  $400 
C)  $410 
D)  $430 
E)  $730 
A)  $390 
B)  $400 
C)  $410 
D)  $430 
E)  $730

Question 19

Demand for a product is likely to be more price elastic if it

Accepted Answer

A)  is considered a necessity. 
B)  has many substitutes. 
C)  is at the mature stage of the product life cycle. 
D)  requires a small cash outlay. 
E)  is nondiscretionary. 
A)  is considered a necessity. 
B)  has many substitutes. 
C)  is at the mature stage of the product life cycle. 
D)  requires a small cash outlay. 
E)  is nondiscretionary.

Question 20

The sum of the expenses of a firm that is stable and does not change with the quantity of the product that is produced and sold is referred to as

Accepted Answer

A)  fixed cost. 
B)  total cost. 
C)  variable cost. 
D)  sunk cost. 
E)  overhead cost. 
A)  fixed cost. 
B)  total cost. 
C)  variable cost. 
D)  sunk cost. 
E)  overhead cost.

Exam 13: Building the Price Foundation

While pricing objectives frequently reflect corporate goals, pricing constraints often relate to

Describe the types of competitive markets and give an example of each one.

If you know the contents and price of a McDonald's Extra Value Meal, it may serve as ________ to you when you visit other fast-food restaurants and consider the purchase of a meal option there.

From a marketing viewpoint, ________ is the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

Figure 13-7B -In the break-even chart in Figure 13-7 above, the line CG represents the firm's

Figure 13-4B -A shift of the demand curve from D2to D3in Figure 13-4B above indicates

According to the price equation, final price equals list price minus ________ plus extra fees.

Economists have identified four types of competitive markets: pure monopoly, monopolistic competition, oligopoly, and

Companies are reluctant to lower their selling prices because this lowers the ________ and even more sharply increases the ________.

Distinguish between elastic demand and inelastic demand.

Factors that determine consumers' willingness and ability to pay for products and services are referred to as

The break-even point (BEP) = [Fixed cost ÷ (________ − Unit variable cost)].

An oligopoly is a competitive market situation in which

Which lists the types of competitive markets from most competitive to least competitive?

If a firm finds the demand for one of its products is inelastic, it can increase its total revenues by

Some firms pursue a ________ pricing objective, perhaps using discounting to generate cash to stave off bankruptcy.

If the CEO of the Clorox Co. were to say, "We want to control 40 percent of the household bleach category within the next five years," he would have set a ________ pricing objective.

Demand for a product is likely to be more price elastic if it

The sum of the expenses of a firm that is stable and does not change with the quantity of the product that is produced and sold is referred to as

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Managing Successful Products, Services, and Brands

Services Marketing

Arriving at the Final Price

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multi-Channel Marketing

Pulling It All Together: the Strategic Marketing Proces

Building an Effective Marketing Plan

Financial Aspects of Marketing

Filters

Companies are reluctant to lower their selling prices because this lowers the and even more sharply increases the .