Question 1

A conspiracy among firms to set prices for a product is referred to as

Accepted Answer

A)  price discrimination. 
B)  price fixing. 
C)  predatory pricing. 
D)  tying arrangements. 
E)  exclusive dealing. 
A)  price discrimination. 
B)  price fixing. 
C)  predatory pricing. 
D)  tying arrangements. 
E)  exclusive dealing.

Question 2

A target return profit pricing objective implies that a company chooses to

Accepted Answer

A)  set targets whose performance can be measured quickly. 
B)  give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets. 
C)  set a profit goal that is often determined by its board of directors. 
D)  reduce investment in any further market or product research. 
E)  set prices based on return on sales. 
A)  set targets whose performance can be measured quickly. 
B)  give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets. 
C)  set a profit goal that is often determined by its board of directors. 
D)  reduce investment in any further market or product research. 
E)  set prices based on return on sales.

Question 3

What type of discount to resellers is based in part on where they are in the channel?

Accepted Answer

A)  seasonal discounts 
B)  trade discounts 
C)  cash discounts 
D)  promotional allowances 
E)  trade-in allowances 
A)  seasonal discounts 
B)  trade discounts 
C)  cash discounts 
D)  promotional allowances 
E)  trade-in allowances

Question 4

Figure 11-6a
-In the break-even chart in Figure 11-7a above, the wedge ABC represents the firm's

Accepted Answer

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

Question 5

Three pricing objectives relate to a firm's profit. In one known as ________, a company gives up immediate profit in exchange for achieving a higher market share in the hopes of penetrating competitive markets.

Accepted Answer

A)  maximizing current profit 
B)  target return 
C)  break-even strategy 
D)  minimizing risk 
E)  managing for long-run profits 
A)  maximizing current profit 
B)  target return 
C)  break-even strategy 
D)  minimizing risk 
E)  managing for long-run profits

Question 6

Consumers buy water and soda from vending machines. Usually the price of each of these products is about $1.50. If a marketer charges a significantly higher price for such products dispensed by vending machines, such as $2.50 per item, sales are likely to decline. In order to avoid declines in sales, marketers tend to be very consistent in the prices they charge for vending machine products. This is an example of marketers employing a ________ strategy.

Accepted Answer

A)  below-market pricing 
B)  skimming pricing 
C)  penetration pricing 
D)  loss-leader pricing 
E)  customary pricing 
A)  below-market pricing 
B)  skimming pricing 
C)  penetration pricing 
D)  loss-leader pricing 
E)  customary pricing

Question 7

Rent, executive salaries, and insurance are typical examples of

Accepted Answer

A)  variable costs. 
B)  fixed costs. 
C)  unit costs. 
D)  marginal costs. 
E)  total costs. 
A)  variable costs. 
B)  fixed costs. 
C)  unit costs. 
D)  marginal costs. 
E)  total costs.

Question 8

Marketing two or more products in a single package price is referred to as

Accepted Answer

A)  package pricing. 
B)  loss-leader pricing. 
C)  bundle pricing. 
D)  tie-in pricing. 
E)  multiproduct pricing. 
A)  package pricing. 
B)  loss-leader pricing. 
C)  bundle pricing. 
D)  tie-in pricing. 
E)  multiproduct pricing.

Question 9

For most products, it is difficult to identify a specific market price for a product or product class. Still, marketing managers often have a subjective feel for the competitors' price or market price. Using this benchmark, they then may deliberately choose a strategy of

Accepted Answer

A)  above-, at-, or below-market pricing. 
B)  loss-leader pricing. 
C)  penetration pricing. 
D)  standard markup pricing. 
E)  experience curve pricing. 
A)  above-, at-, or below-market pricing. 
B)  loss-leader pricing. 
C)  penetration pricing. 
D)  standard markup pricing. 
E)  experience curve pricing.

Question 10

The total money received from the sale of a product is referred to as

Accepted Answer

A)  profit. 
B)  total revenue. 
C)  average revenue. 
D)  marginal revenue. 
E)  derived demand. 
A)  profit. 
B)  total revenue. 
C)  average revenue. 
D)  marginal revenue. 
E)  derived demand.

Question 11

The latest in appliance technology allows your refrigerator to send messages to your smart phone and even photos of the interior to remind you of what you need to pick up at the store. Taking advantage of strong consumer demand for technology-enabled products, marketers set prices for these refrigerators at thousands above other models. These marketers are using a ________ pricing strategy.

Accepted Answer

A)  skimming 
B)  penetration 
C)  loss leader 
D)  price lining 
E)  bundle 
A)  skimming 
B)  penetration 
C)  loss leader 
D)  price lining 
E)  bundle

Question 12

Which of the following statements regarding pricing constraints is most accurate?

Accepted Answer

A)  When a product is in the introductory stage of the product life cycle, the initial price must be low since consumers don't know what the product can do. 
B)  Patents and limited competition earlier in the life cycle mean that higher prices can usually be charged for new products. 
C)  The greater the number of products in a company's product line, the less the product features of similar products can affect price. 
D)  The newest addition to a company's product line should always have the highest price in order to maintain the value of existing brands. 
E)  To avoid cannibalization, the newest product addition to a company's product line should never have a price lower than the other offerings in the line. 
A)  When a product is in the introductory stage of the product life cycle, the initial price must be low since consumers don't know what the product can do. 
B)  Patents and limited competition earlier in the life cycle mean that higher prices can usually be charged for new products. 
C)  The greater the number of products in a company's product line, the less the product features of similar products can affect price. 
D)  The newest addition to a company's product line should always have the highest price in order to maintain the value of existing brands. 
E)  To avoid cannibalization, the newest product addition to a company's product line should never have a price lower than the other offerings in the line.

Question 13

After setting an approximate price level, the marketer proceeds to which step of the price-setting process?

Accepted Answer

A)  defining the scope of the product 
B)  seeking regulatory approval for the price point 
C)  setting the list or quoted price 
D)  evaluating the success of the price strategy 
E)  making special adjustments to the list price 
A)  defining the scope of the product 
B)  seeking regulatory approval for the price point 
C)  setting the list or quoted price 
D)  evaluating the success of the price strategy 
E)  making special adjustments to the list price

Question 14

The quantity at which total revenue and total cost are equal is referred to as

Accepted Answer

A)  the tipping point. 
B)  the profitability point. 
C)  incremental return on investment. 
D)  the break-even point. 
E)  sustainability. 
A)  the tipping point. 
B)  the profitability point. 
C)  incremental return on investment. 
D)  the break-even point. 
E)  sustainability.

Question 15

Figure 11-2
-Figure 11-2 above represents the four approaches to selecting an appropriate price level. Box A represents which approach?

Accepted Answer

A)  cost-oriented approach 
B)  profit-oriented approach 
C)  competition-oriented approach 
D)  demand-oriented approach 
E)  results-oriented approach 
A)  cost-oriented approach 
B)  profit-oriented approach 
C)  competition-oriented approach 
D)  demand-oriented approach 
E)  results-oriented approach

Question 16

Describe a profit objective used by many Japanese manufacturing firms.

Accepted Answer

Managing for long-run profits is a prici

Question 17

What are the three major steps involved in setting prices?

Accepted Answer

Step 1: Select an approximate price leve

Question 18

Which of the following illustrates movement along the demand curve?

Accepted Answer

A)  Prices remain the same, but there is a significant increase in demand. 
B)  Prices remain the same, but there is a significant decrease in demand. 
C)  As the price is raised, the quantity demanded increases, assuming all demand factors stay the same. 
D)  As the price is lowered, the quantity demanded increases, assuming all demand factors stay the same. 
E)  Movement along the curve indicates that some significant event has taken place outside the organization that has affected demand. 
A)  Prices remain the same, but there is a significant increase in demand. 
B)  Prices remain the same, but there is a significant decrease in demand. 
C)  As the price is raised, the quantity demanded increases, assuming all demand factors stay the same. 
D)  As the price is lowered, the quantity demanded increases, assuming all demand factors stay the same. 
E)  Movement along the curve indicates that some significant event has taken place outside the organization that has affected demand.

Question 19

The ________ paid for products and services goes by many names, like tuition for your education, rent for an apartment, interest on a bank credit card, and a premium for car insurance.

Accepted Answer

A)  fee 
B)  value 
C)  cost 
D)  price 
E)  exchange rate 
A)  fee 
B)  value 
C)  cost 
D)  price 
E)  exchange rate

Question 20

Why do manufacturers offer seasonal discounts to channel members? Provide an example of how one would work.

Accepted Answer

To encourage buyers to stock inventory e

A conspiracy among firms to set prices for a product is referred to as

A target return profit pricing objective implies that a company chooses to

What type of discount to resellers is based in part on where they are in the channel?

Figure 11-6a -In the break-even chart in Figure 11-7a above, the wedge ABC represents the firm's

Three pricing objectives relate to a firm's profit. In one known as ________, a company gives up immediate profit in exchange for achieving a higher market share in the hopes of penetrating competitive markets.

Rent, executive salaries, and insurance are typical examples of

Marketing two or more products in a single package price is referred to as

For most products, it is difficult to identify a specific market price for a product or product class. Still, marketing managers often have a subjective feel for the competitors' price or market price. Using this benchmark, they then may deliberately choose a strategy of

The total money received from the sale of a product is referred to as

Which of the following statements regarding pricing constraints is most accurate?

After setting an approximate price level, the marketer proceeds to which step of the price-setting process?

The quantity at which total revenue and total cost are equal is referred to as

Figure 11-2 -Figure 11-2 above represents the four approaches to selecting an appropriate price level. Box A represents which approach?

Describe a profit objective used by many Japanese manufacturing firms.

What are the three major steps involved in setting prices?

Which of the following illustrates movement along the demand curve?

The ________ paid for products and services goes by many names, like tuition for your education, rent for an apartment, interest on a bank credit card, and a premium for car insurance.

Why do manufacturers offer seasonal discounts to channel members? Provide an example of how one would work.

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

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

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Implementing Interactive and Multichannel Marketing

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

Filters

Exam 11: Pricing Products and Services

A conspiracy among firms to set prices for a product is referred to as

A target return profit pricing objective implies that a company chooses to

What type of discount to resellers is based in part on where they are in the channel?

Figure 11-6a -In the break-even chart in Figure 11-7a above, the wedge ABC represents the firm's

Three pricing objectives relate to a firm's profit. In one known as ________, a company gives up immediate profit in exchange for achieving a higher market share in the hopes of penetrating competitive markets.

Rent, executive salaries, and insurance are typical examples of

Marketing two or more products in a single package price is referred to as

For most products, it is difficult to identify a specific market price for a product or product class. Still, marketing managers often have a subjective feel for the competitors' price or market price. Using this benchmark, they then may deliberately choose a strategy of

The total money received from the sale of a product is referred to as

Which of the following statements regarding pricing constraints is most accurate?

After setting an approximate price level, the marketer proceeds to which step of the price-setting process?

The quantity at which total revenue and total cost are equal is referred to as

Figure 11-2 -Figure 11-2 above represents the four approaches to selecting an appropriate price level. Box A represents which approach?

Describe a profit objective used by many Japanese manufacturing firms.

What are the three major steps involved in setting prices?

Which of the following illustrates movement along the demand curve?

The ________ paid for products and services goes by many names, like tuition for your education, rent for an apartment, interest on a bank credit card, and a premium for car insurance.

Why do manufacturers offer seasonal discounts to channel members? Provide an example of how one would work.

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

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

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Implementing Interactive and Multichannel Marketing

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

Filters