Question 1

Identify and describe the major types of discounts used for business markets. Then explain the reasons for using each type.

Accepted Answer

The major types of discounts include: tr

Question 2

It is easy to obtain an accurate price list for a competitor's products.

Accepted Answer

A) True 
 B)False

Question 3

Non-price competition allows a company to increase its brand's unit sales through means other than changing the brand's price.

Accepted Answer

A) True 
 B)False

Question 4

When marginal cost is equal to marginal revenue, the firm should:

Accepted Answer

A)  produce more to increase profits. 
B)  produce less to decrease total costs. 
C)  stop producing additional units. 
D)  provide discounts to encourage purchases. 
E)  intensify distribution to increase sales. 
A)  produce more to increase profits. 
B)  produce less to decrease total costs. 
C)  stop producing additional units. 
D)  provide discounts to encourage purchases. 
E)  intensify distribution to increase sales.

Question 5

Price leaders, comparison discounting, and special-event pricing are examples of:

Accepted Answer

A)  psychological pricing. 
B)  professional pricing. 
C)  product-line pricing. 
D)  premium pricing 
E)  promotional pricing. 
A)  psychological pricing. 
B)  professional pricing. 
C)  product-line pricing. 
D)  premium pricing 
E)  promotional pricing.

Question 6

What are the implications of a downward-sloping demand curve?

Accepted Answer

Most firms face downward-sloping demand

Question 7

Changes in buyers' attitudes, other components of the marketing mix, and uncontrollable environmental factors can influence demand.

Accepted Answer

A) True 
 B)False

Question 8

Marketers are usually in a better position to establish prices when they know the prices charged for competing brands.

Accepted Answer

A) True 
 B)False

Question 9

The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line. Its basic promotional tool is discount. These discounts offered to middlemen for performing certain channel activities are referred to as discounts.

Accepted Answer

A)  trade 
B)  cumulative 
C)  noncumulative 
D)  quantity 
E)  intermediary 
A)  trade 
B)  cumulative 
C)  noncumulative 
D)  quantity 
E)  intermediary

Question 10

Price elasticity of demand measures the sensitivity of demand to changes in price.

Accepted Answer

A) True 
 B)False

Question 11

Showing a product's price along with its previous price, the price of a competing brand, or the price at another retail outlet is called:

Accepted Answer

A)  competition-based pricing. 
B)  reference pricing. 
C)  comparison discounting. 
D)  captive pricing. 
E)  psychological pricing. 
A)  competition-based pricing. 
B)  reference pricing. 
C)  comparison discounting. 
D)  captive pricing. 
E)  psychological pricing.

Question 12

Explain differential pricing and then describe the four major types.

Accepted Answer

Differential pricing means charging diff

Question 13

If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the:

Accepted Answer

A)  quantity demanded goes down. 
B)  demand remains constant. 
C)  quantity demanded increases. 
D)  demand increases. 
E)  break-even increases. 
A)  quantity demanded goes down. 
B)  demand remains constant. 
C)  quantity demanded increases. 
D)  demand increases. 
E)  break-even increases.

Question 14

Price competition is a very flexible marketing strategy.

Accepted Answer

A) True 
 B)False

Question 15

What are some issues to consider when determining a specific price?

Accepted Answer

A pricing strategy will yield a certain

Question 16

A psychological price is designed to encourage purchases on the basis of rational response rather than on the basis of emotional reactions.

Accepted Answer

A) True 
 B)False

Question 17

For most products, a(n) relationship exists between the price of a particular product and the quantity demanded.

Accepted Answer

A)  inelastic 
B)  inverse 
C)  positive 
D)  unknown 
E)  elastic 
A)  inelastic 
B)  inverse 
C)  positive 
D)  unknown 
E)  elastic

Question 18

Scenario 12.3
Use the following to answer the questions.
Glenwood Pet Hospital is considering implementing a new pricing strategy for its veterinarian services. After reviewing the previous three years' revenue, Glenwood finds that most of its customers bring their pets in for the required annual vaccinations only if the animal is ill. Glenwood's objective is to generate more income per customer on an annual basis. The hospital has previously priced its services by charging a flat fee for the office visit, a fee for each vaccine, and a fee for each type of examination beyond the basic office visit. Most customers pay the flat office fee and a fee for a rabies vaccine. Glenwood is now considering a new plan where the pet owner would pay one fee that would cover an office visit, the required rabies vaccine, and additional vaccines that prevent heartworm, kennel-cough, and fleas. Glenwood hopes to encourage the pet owners to view their pet's health as part of a prevention program, rather than a one-time annual visit.
-Refer to Scenario 12.3. Glenwood's new pricing strategy is an example of pricing.

Accepted Answer

A)  cost-based 
B)  psychological 
C)  customary 
D)  bundle 
E)  demand-based 
A)  cost-based 
B)  psychological 
C)  customary 
D)  bundle 
E)  demand-based

Question 19

Dividing the percentage change in quantity demanded by the percentage change in price gives the:

Accepted Answer

A)  prestige demand curve. 
B)  break-even point. 
C)  marginal cost curve. 
D)  price sensitivity curve. 
E)  price elasticity of demand. 
A)  prestige demand curve. 
B)  break-even point. 
C)  marginal cost curve. 
D)  price sensitivity curve. 
E)  price elasticity of demand.

Question 20

Which of the following statements about non-price competition is false?

Accepted Answer

A)  Companies that use non-price competition do not need to keep track of their competitor's prices. 
B)  A company must be able to distinguish its brand through some unique feature in order to successfully engage in non-price competition. 
C)  A firm using non-price competition can build loyalty to both its company and its products. 
D)  When using non-price competition, a company should promote the distinguishing characteristics of its brand. 
E)  Companies that use non-price competition can distinguish their products through promotion and packaging. 
A)  Companies that use non-price competition do not need to keep track of their competitor's prices. 
B)  A company must be able to distinguish its brand through some unique feature in order to successfully engage in non-price competition. 
C)  A firm using non-price competition can build loyalty to both its company and its products. 
D)  When using non-price competition, a company should promote the distinguishing characteristics of its brand. 
E)  Companies that use non-price competition can distinguish their products through promotion and packaging.

Identify and describe the major types of discounts used for business markets. Then explain the reasons for using each type.

It is easy to obtain an accurate price list for a competitor's products.

Non-price competition allows a company to increase its brand's unit sales through means other than changing the brand's price.

When marginal cost is equal to marginal revenue, the firm should:

Price leaders, comparison discounting, and special-event pricing are examples of:

What are the implications of a downward-sloping demand curve?

Changes in buyers' attitudes, other components of the marketing mix, and uncontrollable environmental factors can influence demand.

Marketers are usually in a better position to establish prices when they know the prices charged for competing brands.

The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line. Its basic promotional tool is discount. These discounts offered to middlemen for performing certain channel activities are referred to as discounts.

Price elasticity of demand measures the sensitivity of demand to changes in price.

Showing a product's price along with its previous price, the price of a competing brand, or the price at another retail outlet is called:

Explain differential pricing and then describe the four major types.

If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the:

Price competition is a very flexible marketing strategy.

What are some issues to consider when determining a specific price?

A psychological price is designed to encourage purchases on the basis of rational response rather than on the basis of emotional reactions.

For most products, a(n) relationship exists between the price of a particular product and the quantity demanded.

Dividing the percentage change in quantity demanded by the percentage change in price gives the:

Which of the following statements about non-price competition is false?

Customer-Driven Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment, Social Responsibility, and Ethics

Marketing Research and Information Systems

Target Markets: Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product, Branding, and Packaging Concepts

Developing and Managing Goods and Services

Marketing Channels and Supply-Chain Management

Retailing, Direct Marketing, and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Filters

Exam 12: Pricing Concepts and Management

Identify and describe the major types of discounts used for business markets. Then explain the reasons for using each type.

It is easy to obtain an accurate price list for a competitor's products.

Non-price competition allows a company to increase its brand's unit sales through means other than changing the brand's price.

When marginal cost is equal to marginal revenue, the firm should:

Price leaders, comparison discounting, and special-event pricing are examples of:

What are the implications of a downward-sloping demand curve?

Changes in buyers' attitudes, other components of the marketing mix, and uncontrollable environmental factors can influence demand.

Marketers are usually in a better position to establish prices when they know the prices charged for competing brands.

The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line. Its basic promotional tool is discount. These discounts offered to middlemen for performing certain channel activities are referred to as discounts.

Price elasticity of demand measures the sensitivity of demand to changes in price.

Showing a product's price along with its previous price, the price of a competing brand, or the price at another retail outlet is called:

Explain differential pricing and then describe the four major types.

If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the:

Price competition is a very flexible marketing strategy.

What are some issues to consider when determining a specific price?

A psychological price is designed to encourage purchases on the basis of rational response rather than on the basis of emotional reactions.

For most products, a(n) relationship exists between the price of a particular product and the quantity demanded.

Dividing the percentage change in quantity demanded by the percentage change in price gives the:

Which of the following statements about non-price competition is false?

Customer-Driven Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment, Social Responsibility, and Ethics

Marketing Research and Information Systems

Target Markets: Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product, Branding, and Packaging Concepts

Developing and Managing Goods and Services

Marketing Channels and Supply-Chain Management

Retailing, Direct Marketing, and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Filters