Question 1

With a ________ pricing strategy, marketers set a low initial price for the introduction of a new product or service.

Accepted Answer

A)  market penetration 
B)  bundling 
C)  price fixing 
D)  reference 
E)  skimming 
A)  market penetration 
B)  bundling 
C)  price fixing 
D)  reference 
E)  skimming

Question 2

Julia's is an upscale women's clothing store. Prices are based on customers' beliefs about the value of the clothing. The store focuses on a limited target market and provides excellent customer service. Julia's is using a ________ pricing strategy.

Accepted Answer

A)  customer-oriented 
B)  target profit 
C)  target return 
D)  status quo 
E)  maximizing profits 
A)  customer-oriented 
B)  target profit 
C)  target return 
D)  status quo 
E)  maximizing profits

Question 3

In U.S. markets, there are many substitute products for Fruit Loops cereal, suggesting the price elasticity of demand for Fruit Loops is high.

Accepted Answer

A) True 
 B)False

Question 4

A strategy of setting prices based on how customers develop their perceptions of value can often be the most effective pricing strategy, especially if the strategy

Accepted Answer

A)  leads the marketer to being the low-cost seller. 
B)  is supported by consistent advertising and distribution strategies. 
C)  challenges consumers to discard their perceptions of value. 
D)  is consistent with a competitive target return strategy. 
E)  is measured against the competition. 
A)  leads the marketer to being the low-cost seller. 
B)  is supported by consistent advertising and distribution strategies. 
C)  challenges consumers to discard their perceptions of value. 
D)  is consistent with a competitive target return strategy. 
E)  is measured against the competition.

Question 5

If a 1 percent decrease in price results in less than a 1 percent increase in the quantity demanded, demand is

Accepted Answer

A)  cross-price elastic. 
B)  price inelastic. 
C)  price elastic. 
D)  status quo elastic. 
E)  derived demand inelastic. 
A)  cross-price elastic. 
B)  price inelastic. 
C)  price elastic. 
D)  status quo elastic. 
E)  derived demand inelastic.

Question 6

Brandon 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 Brandon use this information?

Accepted Answer

He can use this information to estimate

Question 7

When members of the marketing channel collude to control the prices passed on to consumers, they are engaging in

Accepted Answer

A)  loss-leader price fixing. 
B)  bait-and-switch price fixing. 
C)  horizontal price fixing. 
D)  vertical price fixing. 
E)  predatory pricing. 
A)  loss-leader price fixing. 
B)  bait-and-switch price fixing. 
C)  horizontal price fixing. 
D)  vertical price fixing. 
E)  predatory pricing.

Question 8

Barry customizes Harley-Davidson motorcycles. No two cycles are alike. He notices that very few customers even ask the price of his motorcycles before they decide to purchase them. Demand for his motorcycles is probably

Accepted Answer

A)  price sensitive. 
B)  price elastic. 
C)  price inelastic. 
D)  income elastic. 
E)  cross-price elastic. 
A)  price sensitive. 
B)  price elastic. 
C)  price inelastic. 
D)  income elastic. 
E)  cross-price elastic.

Question 9

Which of the following is most likely to be characterized by pure competition in the United States?

Accepted Answer

A)  spices 
B)  cereal 
C)  soft drinks 
D)  computer operating systems 
E)  fast-food restaurants 
A)  spices 
B)  cereal 
C)  soft drinks 
D)  computer operating systems 
E)  fast-food restaurants

Question 10

An example of an objective set by a sales-oriented company is to institute a company-wide policy that all products must provide for at least an 18 percent profit margin to reach a particular profit goal for the firm.

Accepted Answer

A) True 
 B)False

With a ________ pricing strategy, marketers set a low initial price for the introduction of a new product or service.

Julia's is an upscale women's clothing store. Prices are based on customers' beliefs about the value of the clothing. The store focuses on a limited target market and provides excellent customer service. Julia's is using a ________ pricing strategy.

In U.S. markets, there are many substitute products for Fruit Loops cereal, suggesting the price elasticity of demand for Fruit Loops is high.

A strategy of setting prices based on how customers develop their perceptions of value can often be the most effective pricing strategy, especially if the strategy

If a 1 percent decrease in price results in less than a 1 percent increase in the quantity demanded, demand is

Brandon 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 Brandon use this information?

When members of the marketing channel collude to control the prices passed on to consumers, they are engaging in

Barry customizes Harley-Davidson motorcycles. No two cycles are alike. He notices that very few customers even ask the price of his motorcycles before they decide to purchase them. Demand for his motorcycles is probably

Which of the following is most likely to be characterized by pure competition in the United States?

An example of an objective set by a sales-oriented company is to institute a company-wide policy that all products must provide for at least an 18 percent profit margin to reach a particular profit goal for the firm.

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Social and Mobile Marketing

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 Establishing Value

With a ________ pricing strategy, marketers set a low initial price for the introduction of a new product or service.

Julia's is an upscale women's clothing store. Prices are based on customers' beliefs about the value of the clothing. The store focuses on a limited target market and provides excellent customer service. Julia's is using a ________ pricing strategy.

In U.S. markets, there are many substitute products for Fruit Loops cereal, suggesting the price elasticity of demand for Fruit Loops is high.

A strategy of setting prices based on how customers develop their perceptions of value can often be the most effective pricing strategy, especially if the strategy

If a 1 percent decrease in price results in less than a 1 percent increase in the quantity demanded, demand is

Brandon 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 Brandon use this information?

When members of the marketing channel collude to control the prices passed on to consumers, they are engaging in

Barry customizes Harley-Davidson motorcycles. No two cycles are alike. He notices that very few customers even ask the price of his motorcycles before they decide to purchase them. Demand for his motorcycles is probably

Which of the following is most likely to be characterized by pure competition in the United States?

An example of an objective set by a sales-oriented company is to institute a company-wide policy that all products must provide for at least an 18 percent profit margin to reach a particular profit goal for the firm.

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Social and Mobile Marketing

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