Question 1

Variable cost is the:

Accepted Answer

A) money or other considerations (including other goods and services)exchanged for the ownership or use of a good or service. 
B) sum of the expenses of the firm that are stable and do not change with the quantity of the product that is produced and sold. 
C) total expense incurred by a firm in producing and marketing a product or service. 
D) sum of the expenses of the firm that vary directly with the quantity of the product that is produced and sold. 
A) money or other considerations (including other goods and services)exchanged for the ownership or use of a good or service. 
B) sum of the expenses of the firm that are stable and do not change with the quantity of the product that is produced and sold. 
C) total expense incurred by a firm in producing and marketing a product or service. 
D) sum of the expenses of the firm that vary directly with the quantity of the product that is produced and sold.

Question 2

VIZIO Inc. makes innovative__________ for the average consumer.

Accepted Answer

A) smart televisions 
B) LED computer screens 
C) interactive apps 
D) Netflix 
A) smart televisions 
B) LED computer screens 
C) interactive apps 
D) Netflix

Question 3

A home improvement retailer advertises that it has a popular central vacuum system available for $420.00. The ad suggests that the competition's price is $500.00. It was verified that the competitors did not offer the central vacuum system at $500.00. What deceptive pricing practice is the home improvement retailer attempting?

Accepted Answer

A) comparison with suggested prices 
B) comparable value comparison 
C) bait and switch 
D) bargains conditional on other purchases 
A) comparison with suggested prices 
B) comparable value comparison 
C) bait and switch 
D) bargains conditional on other purchases

Question 4

Factors that determine consumers' willingness and ability to pay for goods and services are called:

Accepted Answer

A) economic environmental factors. 
B) elasticity factors. 
C) demand factors. 
D) the "misery index." 
A) economic environmental factors. 
B) elasticity factors. 
C) demand factors. 
D) the "misery index."

Question 5

'No-name' products likely use:

Accepted Answer

A) below-market pricing 
B) prestige pricing 
C) demand backward pricing 
D) loss-leader pricing 
A) below-market pricing 
B) prestige pricing 
C) demand backward pricing 
D) loss-leader pricing

Question 6

Which of the following is a special kind of price?

Accepted Answer

A) liquidity 
B) equitable medium 
C) operating costs 
D) rent for an apartment 
A) liquidity 
B) equitable medium 
C) operating costs 
D) rent for an apartment

Question 7

Fixed cost refers to:

Accepted Answer

A) the total expense incurred by a firm in producing and marketing a product or service. 
B) the consideration exchanged for the ownership or use of a good or service. 
C) the sum of the expenses that vary directly with the quantity of the product produced and sold. 
D) expenses that are stable and do not change with the quantity of the product that is produced and sold. 
A) the total expense incurred by a firm in producing and marketing a product or service. 
B) the consideration exchanged for the ownership or use of a good or service. 
C) the sum of the expenses that vary directly with the quantity of the product produced and sold. 
D) expenses that are stable and do not change with the quantity of the product that is produced and sold.

Question 8

Ace Shoe Company sells heel replacement kits for men's shoes. It has fixed costs of $6 million and unit variable costs of $5 per pair. Suppose a consultant tells Ace it can sell 700,000 heel repair kits, what price must it charge to achieve a profit of $2.5 million?

Accepted Answer

A) $3.58 
B) $12.15 
C) $17.14 
D) $7.58 
A) $3.58 
B) $12.15 
C) $17.14 
D) $7.58

Question 9

Break-even analysis is:

Accepted Answer

A) the process of determining the quantity of product consumers will buy relative to the quantity produced by the firm. 
B) a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output. 
C) a method of determining just how much a consumer is willing to pay for a product or service. 
D) a process that investigates the magnitude of difference between marginal revenue and marginal cost. 
A) the process of determining the quantity of product consumers will buy relative to the quantity produced by the firm. 
B) a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output. 
C) a method of determining just how much a consumer is willing to pay for a product or service. 
D) a process that investigates the magnitude of difference between marginal revenue and marginal cost.

Question 10

If you computed: (unit price x quantity sold)- total cost. What would you be calculating?

Accepted Answer

A) profit 
B) marginal revenue 
C) average revenue 
D) total revenue 
A) profit 
B) marginal revenue 
C) average revenue 
D) total revenue

Question 11

Step 1 of the pricing process is identifying pricing constraints and objectives. Describe the constraints a firm is likely to face.

Accepted Answer

The answer of Step 1 of the pricing process is...

Question 12

Which company will likely benefit the greatest by offering social media discounts?

Accepted Answer

A) A new startup that provides high-end electronic repair services. 
B) Prada that is using a prestige pricing strategy. 
C) Apple, who just launched the new iPhone 7. 
D) A new startup that is using a penetration pricing strategy. 
A) A new startup that provides high-end electronic repair services. 
B) Prada that is using a prestige pricing strategy. 
C) Apple, who just launched the new iPhone 7. 
D) A new startup that is using a penetration pricing strategy.

Question 13

The practice of exchanging goods and services for other goods and services rather than for money is called:

Accepted Answer

A) pricing substitution. 
B) value-pricing. 
C) debt restructuring. 
D) barter. 
A) pricing substitution. 
B) value-pricing. 
C) debt restructuring. 
D) barter.

Question 14

FOB origin pricing is a method of pricing where:

Accepted Answer

A) price the seller sets includes all transportation costs. 
B) title of goods remains with the manufacturer until sold to the ultimate consumer. 
C) title of goods passes to the buyer upon arrival at the final destination. 
D) title of goods passes to the buyer at the point of loading. 
A) price the seller sets includes all transportation costs. 
B) title of goods remains with the manufacturer until sold to the ultimate consumer. 
C) title of goods passes to the buyer upon arrival at the final destination. 
D) title of goods passes to the buyer at the point of loading.

Question 15

If you buy one pair of Uvex Clear UVExtreme safety eyewear, the cost is $7.40, but if you buy ten at one time, the price per pair is reduced to $6.85. This is an example of a:

Accepted Answer

A) promotional allowance. 
B) bundle pricing. 
C) quantity discount. 
D) cumulative quantity discount. 
A) promotional allowance. 
B) bundle pricing. 
C) quantity discount. 
D) cumulative quantity discount.

Question 16

The marketplace sets the price for soybeans, so farmers who are trying to sell their soybean crops don't have to create a pricing strategy. The soybeans are sold in a(n) ________ market.

Accepted Answer

A) monopolistic competition 
B) pure monopoly 
C) pure competition 
D) oligopoly 
A) monopolistic competition 
B) pure monopoly 
C) pure competition 
D) oligopoly

Question 17

A break-even point is:

Accepted Answer

A) the point at which total revenue and average revenue converge. 
B) the point at which total revenue and total cost are equal and beyond which profit occurs. 
C) the point of greatest difference between marginal revenue and marginal cost. 
D) the point at which marginal revenue equals marginal cost. 
A) the point at which total revenue and average revenue converge. 
B) the point at which total revenue and total cost are equal and beyond which profit occurs. 
C) the point of greatest difference between marginal revenue and marginal cost. 
D) the point at which marginal revenue equals marginal cost.

Question 18

For $19.99 a month you can purchase only a paper subscription to the Globe and Mail newspaper. For $9.99 you can purchase only an online subscription. However, for $22.99 you get both. This is an example of:

Accepted Answer

A) Tie-in pricing 
B) Packaged pricing 
C) Bundle pricing 
D) Multi-product pricing 
A) Tie-in pricing 
B) Packaged pricing 
C) Bundle pricing 
D) Multi-product pricing

Question 19

When Pizza Hut announced it was going to add 25 percent more toppings to its Lover's Line of pizzas without increasing the price, what consumer motivation was it appealing to?

Accepted Answer

A) reliability 
B) appearance 
C) value 
D) cost 
A) reliability 
B) appearance 
C) value 
D) cost

Question 20

What is experience curve pricing?

Accepted Answer

The answer of What is experience curve pricing?...

Variable cost is the:

VIZIO Inc. makes innovative__________ for the average consumer.

Factors that determine consumers' willingness and ability to pay for goods and services are called:

'No-name' products likely use:

Which of the following is a special kind of price?

Fixed cost refers to:

Ace Shoe Company sells heel replacement kits for men's shoes. It has fixed costs of $6 million and unit variable costs of $5 per pair. Suppose a consultant tells Ace it can sell 700,000 heel repair kits, what price must it charge to achieve a profit of $2.5 million?

Break-even analysis is:

If you computed: (unit price x quantity sold)- total cost. What would you be calculating?

Step 1 of the pricing process is identifying pricing constraints and objectives. Describe the constraints a firm is likely to face.

Which company will likely benefit the greatest by offering social media discounts?

The practice of exchanging goods and services for other goods and services rather than for money is called:

FOB origin pricing is a method of pricing where:

If you buy one pair of Uvex Clear UVExtreme safety eyewear, the cost is $7.40, but if you buy ten at one time, the price per pair is reduced to $6.85. This is an example of a:

The marketplace sets the price for soybeans, so farmers who are trying to sell their soybean crops don't have to create a pricing strategy. The soybeans are sold in a(n) ________ market.

A break-even point is:

For $19.99 a month you can purchase only a paper subscription to the Globe and Mail newspaper. For $9.99 you can purchase only an online subscription. However, for $22.99 you get both. This is an example of:

When Pizza Hut announced it was going to add 25 percent more toppings to its Lover's Line of pizzas without increasing the price, what consumer motivation was it appealing to?

What is experience curve pricing?

Creating Customer Value, Relationships, and Experiences Through Marketing

Developing Successful Marketing Strategies

Scanning the Marketing Environment

Ethics and Social Responsibility for Sustainable Marketing

Consumer Behaviour

Understanding Organizations As Customers

Reaching Global Markets

Marketing Research: From Information to Action

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Managing Products and Brands

Managing Services

Managing Marketing Channels and Supply Chains

Retailing

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Personal Selling and Sales Management

Pulling It All Together: the Strategic Marketing Process

Using Social Media and Mobile Marketing to Connect With Consumers

Filters

Exam 13: Pricing Products and Services

Variable cost is the:

VIZIO Inc. makes innovative__________ for the average consumer.

Factors that determine consumers' willingness and ability to pay for goods and services are called:

'No-name' products likely use:

Which of the following is a special kind of price?

Fixed cost refers to:

Ace Shoe Company sells heel replacement kits for men's shoes. It has fixed costs of $6 million and unit variable costs of $5 per pair. Suppose a consultant tells Ace it can sell 700,000 heel repair kits, what price must it charge to achieve a profit of $2.5 million?

Break-even analysis is:

If you computed: (unit price x quantity sold)- total cost. What would you be calculating?

Step 1 of the pricing process is identifying pricing constraints and objectives. Describe the constraints a firm is likely to face.

Which company will likely benefit the greatest by offering social media discounts?

The practice of exchanging goods and services for other goods and services rather than for money is called:

FOB origin pricing is a method of pricing where:

If you buy one pair of Uvex Clear UVExtreme safety eyewear, the cost is $7.40, but if you buy ten at one time, the price per pair is reduced to $6.85. This is an example of a:

The marketplace sets the price for soybeans, so farmers who are trying to sell their soybean crops don't have to create a pricing strategy. The soybeans are sold in a(n) ________ market.

A break-even point is:

For $19.99 a month you can purchase only a paper subscription to the Globe and Mail newspaper. For $9.99 you can purchase only an online subscription. However, for $22.99 you get both. This is an example of:

When Pizza Hut announced it was going to add 25 percent more toppings to its Lover's Line of pizzas without increasing the price, what consumer motivation was it appealing to?

What is experience curve pricing?

Creating Customer Value, Relationships, and Experiences Through Marketing

Developing Successful Marketing Strategies

Scanning the Marketing Environment

Ethics and Social Responsibility for Sustainable Marketing

Consumer Behaviour

Understanding Organizations As Customers

Reaching Global Markets

Marketing Research: From Information to Action

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Managing Products and Brands

Managing Services

Managing Marketing Channels and Supply Chains

Retailing

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Personal Selling and Sales Management

Pulling It All Together: the Strategic Marketing Process

Using Social Media and Mobile Marketing to Connect With Consumers

Filters