Question 1

What is a gray market? Do manufacturers foster this type of market?

Accepted Answer

Channels can be very difficult to manage

Question 2

Assume the demand for electricity, a necessity with few substitutes, is −0.2. If the cable company raised its rates by 10 percent, we would expect a

Accepted Answer

A) 10 percent decrease in quantity demanded. 
B) 2 percent increase in quantity demanded. 
C) 10 percent increase in quantity demanded. 
D) 2 percent decrease in quantity demanded. 
E) 5 percent decrease in quantity demanded. 
A) 10 percent decrease in quantity demanded. 
B) 2 percent increase in quantity demanded. 
C) 10 percent increase in quantity demanded. 
D) 2 percent decrease in quantity demanded. 
E) 5 percent decrease in quantity demanded.

Question 3

Tyler rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20. His fixed costs are $100,000 and his target profit is $20,000. For Tyler, to earn his target profit, he will need to rent out ________ rooms.

Accepted Answer

A) 100 
B) 1,500 
C) 20,000 
D) 1,000 
E) 250 
A) 100 
B) 1,500 
C) 20,000 
D) 1,000 
E) 250

Question 4

Cedrick is conducting an experiment, charging different prices for the same products at different stores and measuring sales. With this information, he will construct a demand curve. How can Cedrick use this information?

Accepted Answer

He can use this information to estimate

Question 5

A demand curve is built on the assumption that

Accepted Answer

A) income is derived from demand. 
B) price remains the same, and fixed costs change. 
C) everything but price and demand remains the same. 
D) fixed costs change with quantity demanded. 
E) the firm does not advertise. 
A) income is derived from demand. 
B) price remains the same, and fixed costs change. 
C) everything but price and demand remains the same. 
D) fixed costs change with quantity demanded. 
E) the firm does not advertise.

Question 6

If the price for a product increases, the demand for the complementary product will

Accepted Answer

A) decrease. 
B) increase. 
C) stay the same. 
D) become more elastic. 
E) become more inelastic. 
A) decrease. 
B) increase. 
C) stay the same. 
D) become more elastic. 
E) become more inelastic.

Question 7

Midway Appliance Group has set very low prices for its products in an attempt to drive its competitor, Home Supply Corp., out of business. This is known as monopolistic pricing.

Accepted Answer

A) True 
 B)False

Question 8

Sales of more expensive organic produce tend to increase when the economy is doing well, while sales of lower-priced store brand produce increase when the economy is not doing well. This is an example of how ________ impacts demand for products.

Accepted Answer

A) dynamic pricing 
B) the price inelasticity coefficient 
C) the income effect 
D) the target return effect 
E) cross-price elasticity 
A) dynamic pricing 
B) the price inelasticity coefficient 
C) the income effect 
D) the target return effect 
E) cross-price elasticity

Question 9

The demand curve for prestige products generally slopes downward due to higher prices.

Accepted Answer

A) True 
 B)False

Question 10

Blaire tells her sales representatives the goal is to generate at least a 15 percent return on investment for all the computer desks they sell. Blaire is using a ________ pricing strategy.

Accepted Answer

A) sales orientation 
B) target profit 
C) target return 
D) status quo 
E) competitive parity 
A) sales orientation 
B) target profit 
C) target return 
D) status quo 
E) competitive parity

Question 11

When the price of milk goes up, demand does not fall significantly, because people still need to buy milk. However, if the price of T-bone steaks rises beyond a certain point, people will buy fewer of them because they can turn to the many substitutes for this cut of meat. This demonstrates price elasticity of demand.

Accepted Answer

A) True 
 B)False

Question 12

The point at which the number of units sold generates enough revenue to equal the total costs of running an operation is known as the

Accepted Answer

A) JIT inventory. 
B) fixed cost margin. 
C) break-even point. 
D) unit cost. 
E) economy of scale. 
A) JIT inventory. 
B) fixed cost margin. 
C) break-even point. 
D) unit cost. 
E) economy of scale.

Question 13

When Colleen shops at R.F. Malloy, each item has the actual price listed at the bottom of the price tag and an "original price" listed above that which is always much higher. This "original price" is an example of

Accepted Answer

A) an everyday low price. 
B) a reference price. 
C) the manufacturer's cost. 
D) a final price. 
E) the external horizontal fixed price. 
A) an everyday low price. 
B) a reference price. 
C) the manufacturer's cost. 
D) a final price. 
E) the external horizontal fixed price.

Question 14

Because there are many firms in monopolistic competition markets,

Accepted Answer

A) everyone is a price taker. 
B) producers do not have to consider the reactions of rival firms. 
C) government often encourages consolidation to reduce the number of competitors. 
D) price controls may be implemented. 
E) the many competitors will focus on product differentiation. 
A) everyone is a price taker. 
B) producers do not have to consider the reactions of rival firms. 
C) government often encourages consolidation to reduce the number of competitors. 
D) price controls may be implemented. 
E) the many competitors will focus on product differentiation.

Question 15

Marketers spend millions of dollars annually trying to create or reinforce brand loyalty. Brand loyalty changes the demand curve for the firm's products by

Accepted Answer

A) reducing the price elasticity of demand. 
B) making demand more oligopolistic and less monopolistic. 
C) increasing the income effect. 
D) reducing fixed costs and increasing the gray marketing effect. 
E) shifting the market from a monopoly to pure competition. 
A) reducing the price elasticity of demand. 
B) making demand more oligopolistic and less monopolistic. 
C) increasing the income effect. 
D) reducing fixed costs and increasing the gray marketing effect. 
E) shifting the market from a monopoly to pure competition.

Question 16

Andrew's firm has set corporate direction to become one of the leaders in each of its significant market segments. It is Andrew's job to examine the firm's pricing strategy to determine how to maximize market share, even at the expense of profits in the short run. What kind of company objective would guide his effort?

Accepted Answer

A) industry-oriented 
B) sales-oriented 
C) competitor-oriented 
D) innovation-oriented 
E) customer-oriented 
A) industry-oriented 
B) sales-oriented 
C) competitor-oriented 
D) innovation-oriented 
E) customer-oriented

Question 17

Describe the everyday low pricing strategy used by some big box stores. How do consumers respond to this strategy?

Accepted Answer

With an everyday low pricing (EDLP)strat

Question 18

Antoine rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20, to cover maid service and utilities. His fixed costs are $100,000 and his profit last year was $20,000. For Antoine, the contribution per unit is

Accepted Answer

A) $100. 
B) $80. 
C) $800. 
D) $1,000. 
E) $40 
A) $100. 
B) $80. 
C) $800. 
D) $1,000. 
E) $40

Question 19

What five components should be taken into consideration when a company is developing its pricing objectives?

Accepted Answer

The five Cs of pricing that should be ta

Question 20

Unlike product, promotion, or place, price is the only part of the marketing mix

Accepted Answer

A) that offers the opportunity for an oligopoly. 
B) that is subject to gray market manipulation. 
C) that leads to competition. 
D) that generates revenue. 
E) that is determined by the consumer. 
A) that offers the opportunity for an oligopoly. 
B) that is subject to gray market manipulation. 
C) that leads to competition. 
D) that generates revenue. 
E) that is determined by the consumer.

What is a gray market? Do manufacturers foster this type of market?

Assume the demand for electricity, a necessity with few substitutes, is −0.2. If the cable company raised its rates by 10 percent, we would expect a

Tyler rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20. His fixed costs are $100,000 and his target profit is $20,000. For Tyler, to earn his target profit, he will need to rent out ________ rooms.

Cedrick is conducting an experiment, charging different prices for the same products at different stores and measuring sales. With this information, he will construct a demand curve. How can Cedrick use this information?

A demand curve is built on the assumption that

If the price for a product increases, the demand for the complementary product will

Midway Appliance Group has set very low prices for its products in an attempt to drive its competitor, Home Supply Corp., out of business. This is known as monopolistic pricing.

Sales of more expensive organic produce tend to increase when the economy is doing well, while sales of lower-priced store brand produce increase when the economy is not doing well. This is an example of how ________ impacts demand for products.

The demand curve for prestige products generally slopes downward due to higher prices.

Blaire tells her sales representatives the goal is to generate at least a 15 percent return on investment for all the computer desks they sell. Blaire is using a ________ pricing strategy.

The point at which the number of units sold generates enough revenue to equal the total costs of running an operation is known as the

When Colleen shops at R.F. Malloy, each item has the actual price listed at the bottom of the price tag and an "original price" listed above that which is always much higher. This "original price" is an example of

Because there are many firms in monopolistic competition markets,

Marketers spend millions of dollars annually trying to create or reinforce brand loyalty. Brand loyalty changes the demand curve for the firm's products by

Describe the everyday low pricing strategy used by some big box stores. How do consumers respond to this strategy?

Antoine rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20, to cover maid service and utilities. His fixed costs are $100,000 and his profit last year was $20,000. For Antoine, the contribution per unit is

What five components should be taken into consideration when a company is developing its pricing objectives?

Unlike product, promotion, or place, price is the only part of the marketing mix

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Digital Marketing: Online, Social, and Mobile

Conscious Marketing, Corporate Social Responsibility, and Ethics

Analyzing the Marketing Environment

Consumer Behavior

Business-To-Business Marketing

Global Marketing

Segmentation, Targeting, and Positioning

Marketing Research

Product, Branding, and Packaging Decisions

Developing New Products

Services: the Intangible Product

Supply Chain and Channel Management

Retailing and Omnichannel Marketing

Integrated Marketing Communications

Advertising, Public Relations, and Sales Promotions

Personal Selling and Sales Management

Filters

Exam 14: Pricing Concepts for Capturing Value

What is a gray market? Do manufacturers foster this type of market?

Assume the demand for electricity, a necessity with few substitutes, is −0.2. If the cable company raised its rates by 10 percent, we would expect a

Tyler rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20. His fixed costs are $100,000 and his target profit is $20,000. For Tyler, to earn his target profit, he will need to rent out ________ rooms.

Cedrick is conducting an experiment, charging different prices for the same products at different stores and measuring sales. With this information, he will construct a demand curve. How can Cedrick use this information?

A demand curve is built on the assumption that

If the price for a product increases, the demand for the complementary product will

Midway Appliance Group has set very low prices for its products in an attempt to drive its competitor, Home Supply Corp., out of business. This is known as monopolistic pricing.

Sales of more expensive organic produce tend to increase when the economy is doing well, while sales of lower-priced store brand produce increase when the economy is not doing well. This is an example of how ________ impacts demand for products.

The demand curve for prestige products generally slopes downward due to higher prices.

Blaire tells her sales representatives the goal is to generate at least a 15 percent return on investment for all the computer desks they sell. Blaire is using a ________ pricing strategy.

The point at which the number of units sold generates enough revenue to equal the total costs of running an operation is known as the

When Colleen shops at R.F. Malloy, each item has the actual price listed at the bottom of the price tag and an "original price" listed above that which is always much higher. This "original price" is an example of

Because there are many firms in monopolistic competition markets,

Marketers spend millions of dollars annually trying to create or reinforce brand loyalty. Brand loyalty changes the demand curve for the firm's products by

Describe the everyday low pricing strategy used by some big box stores. How do consumers respond to this strategy?

Antoine rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20, to cover maid service and utilities. His fixed costs are $100,000 and his profit last year was $20,000. For Antoine, the contribution per unit is

What five components should be taken into consideration when a company is developing its pricing objectives?

Unlike product, promotion, or place, price is the only part of the marketing mix

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Digital Marketing: Online, Social, and Mobile

Conscious Marketing, Corporate Social Responsibility, and Ethics

Analyzing the Marketing Environment

Consumer Behavior

Business-To-Business Marketing

Global Marketing

Segmentation, Targeting, and Positioning

Marketing Research

Product, Branding, and Packaging Decisions

Developing New Products

Services: the Intangible Product

Supply Chain and Channel Management

Retailing and Omnichannel Marketing

Integrated Marketing Communications

Advertising, Public Relations, and Sales Promotions

Personal Selling and Sales Management

Filters