Question 1

Marketers using a dynamic price policy should take care to avoid

Accepted Answer

A)  requests for allowances. 
B)  price discrimination. 
C)  contradictory promotions. 
D)  changes in market segmentation. 
E)  challenges from government agencies. 
A)  requests for allowances. 
B)  price discrimination. 
C)  contradictory promotions. 
D)  changes in market segmentation. 
E)  challenges from government agencies.

Question 2

Target return-on-sales pricing refers to

Accepted Answer

A)  adjusting the price of a product so it is "in line" with that of its largest competitor. 
B)  setting the price of a line of products at a number of different price points. 
C)  adding a fixed percentage to the cost of all items in a specific product class. 
D)  setting prices to achieve a profit that is a specified percentage of the sales volume. 
E)  setting a price based on a specific annual dollar target profit volume. 
A)  adjusting the price of a product so it is "in line" with that of its largest competitor. 
B)  setting the price of a line of products at a number of different price points. 
C)  adding a fixed percentage to the cost of all items in a specific product class. 
D)  setting prices to achieve a profit that is a specified percentage of the sales volume. 
E)  setting a price based on a specific annual dollar target profit volume.

Question 3

You are selling a new line of t-shirts on the boardwalk. The selling price will be $25 per shirt. The labor cost is $5 per shirt. The administrative costs of operating the company are estimated to be $60,000 annually and the sales and marketing expenses are $20,000 a year. Additionally, the cost of materials will be $10 per shirt. What is the break-even quantity?

Accepted Answer

A)  2,000 shirts 
B)  3,200 shirts 
C)  5,334 shirts 
D)  8,000 shirts 
E)  16,000 shirts 
A)  2,000 shirts 
B)  3,200 shirts 
C)  5,334 shirts 
D)  8,000 shirts 
E)  16,000 shirts

Question 4

A Patek Philippe Sky Moon Tourbillion men's wristwatch is among the most expensive in the world, costing more than $1.5 million. This is an example of a ________ strategy.

Accepted Answer

A)  penetration pricing 
B)  target pricing 
C)  bundle pricing 
D)  loss-leader pricing 
E)  prestige pricing 
A)  penetration pricing 
B)  target pricing 
C)  bundle pricing 
D)  loss-leader pricing 
E)  prestige pricing

Question 5

Ampro-Mag makes materials for safely controlling hazardous spills of all kinds. It sells these items as a neutralizing kit priced at $100. The costs of the materials that go into each kit are $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising in trade journals, and $3,500 for the monthly salary of its owner. What is Ampro-Mag's monthly break-even point in terms of number of neutralizing kits sold?

Accepted Answer

A)  40 kits 
B)  52 kits 
C)  104 kits 
D)  116 kits 
E)  520 kits 
A)  40 kits 
B)  52 kits 
C)  104 kits 
D)  116 kits 
E)  520 kits

Question 6

All of the following are legal or ethical considerations when setting a final price except which?

Accepted Answer

A)  price discrimination 
B)  predatory pricing 
C)  price matching 
D)  price fixing 
E)  deceptive pricing 
A)  price discrimination 
B)  predatory pricing 
C)  price matching 
D)  price fixing 
E)  deceptive pricing

Question 7

Which of the four approaches does Carmex use to set prices for its products?

Accepted Answer

Carmex uses each of the four perspective

Question 8

Trade discounts are offered to resellers in the marketing channel on the basis of where they are in the channel and

Accepted Answer

A)  the marketing activities they are expected to perform in the future. 
B)  the frequency of the order. 
C)  when orders are placed during the year. 
D)  the length of the relationship with the manufacturer. 
E)  the size of the order. 
A)  the marketing activities they are expected to perform in the future. 
B)  the frequency of the order. 
C)  when orders are placed during the year. 
D)  the length of the relationship with the manufacturer. 
E)  the size of the order.

Question 9

What is the difference between a movement along a demand curve and a shift of a demand curve?

Accepted Answer

A movement along a demand curve assumes

Question 10

Figure 11-6a
-In Figure 11-7a above, which is a break-even chart that depicts a graphic presentation of a break-even analysis for a picture frame store, the area CGD represents the firm's

Accepted Answer

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

Question 11

Which of the following statements regarding sales goals is most accurate?

Accepted Answer

A)  For marketing managers, sales revenue or unit sales can be easily translated into meaningful targets for a product line or brand. 
B)  Cutting prices for a single product in a product line to raise unit sales often results in an increase in sales for related products in the line. 
C)  Very often, cutting prices results in a decrease in market share. 
D)  Setting unit volume sales as a pricing objective results in price wars with competitors, so the practice is limited to industries with few competitors. 
E)  An advantage of increasing unit volume sales is that it always results in an increase in profits. 
A)  For marketing managers, sales revenue or unit sales can be easily translated into meaningful targets for a product line or brand. 
B)  Cutting prices for a single product in a product line to raise unit sales often results in an increase in sales for related products in the line. 
C)  Very often, cutting prices results in a decrease in market share. 
D)  Setting unit volume sales as a pricing objective results in price wars with competitors, so the practice is limited to industries with few competitors. 
E)  An advantage of increasing unit volume sales is that it always results in an increase in profits.

Question 12

Specifying the role of price in an organization's marketing and strategic plans is referred to as

Accepted Answer

A)  choosing a pricing plan. 
B)  defining a profit mission. 
C)  developing pricing constraints. 
D)  setting pricing objectives. 
E)  determining the list or quoted price. 
A)  choosing a pricing plan. 
B)  defining a profit mission. 
C)  developing pricing constraints. 
D)  setting pricing objectives. 
E)  determining the list or quoted price.

Question 13

All of the following are examples of pricing constraints except which?

Accepted Answer

A)  familiarity of the product 
B)  competitors' prices 
C)  newness of the product 
D)  break even point 
E)  demand for the product class, product, or brand 
A)  familiarity of the product 
B)  competitors' prices 
C)  newness of the product 
D)  break even point 
E)  demand for the product class, product, or brand

Question 14

Price discrimination is illegal under the

Accepted Answer

A)  Sherman Act. 
B)  Consumer Goods Pricing Act. 
C)  Robinson-Patman Act. 
D)  Federal Trade Commission Act. 
E)  Anti-Competitive Act. 
A)  Sherman Act. 
B)  Consumer Goods Pricing Act. 
C)  Robinson-Patman Act. 
D)  Federal Trade Commission Act. 
E)  Anti-Competitive Act.

Question 15

Vertical price fixing refers to

Accepted Answer

A)  two or more competitors explicitly or implicitly setting prices. 
B)  the practice of charging different prices to different buyers for goods of like grade and quality. 
C)  controlling agreements between independent buyers and sellers whereby sellers are required not to sell products below a minimum retail price. 
D)  a conspiracy among firms to set prices for a product or service. 
E)  a seller's requirement that the purchaser of one product also buy another product in the line. 
A)  two or more competitors explicitly or implicitly setting prices. 
B)  the practice of charging different prices to different buyers for goods of like grade and quality. 
C)  controlling agreements between independent buyers and sellers whereby sellers are required not to sell products below a minimum retail price. 
D)  a conspiracy among firms to set prices for a product or service. 
E)  a seller's requirement that the purchaser of one product also buy another product in the line.

Question 16

Odd-even pricing refers to

Accepted Answer

A)  setting prices one way for product lines and another way for individual brands. 
B)  setting prices of luxury items at even price points and setting the price of necessities at odd price points. 
C)  setting prices a few dollars or cents under an odd number. 
D)  adding a fixed percentage to the cost of all items in a specific product class. 
E)  setting prices a few dollars or cents under an even number. 
A)  setting prices one way for product lines and another way for individual brands. 
B)  setting prices of luxury items at even price points and setting the price of necessities at odd price points. 
C)  setting prices a few dollars or cents under an odd number. 
D)  adding a fixed percentage to the cost of all items in a specific product class. 
E)  setting prices a few dollars or cents under an even number.

Question 17

All of the following are demand-oriented approaches to selecting an approximate price level except which?

Accepted Answer

A)  odd-even 
B)  yield management 
C)  bundle 
D)  customary 
E)  prestige 
A)  odd-even 
B)  yield management 
C)  bundle 
D)  customary 
E)  prestige

Question 18

A common pricing tactic today is the use of special fees and surcharges that add to a list price, a response to consumers' zeal for ________ combined with the ease of making price comparisons on the Internet.

Accepted Answer

A)  readily accessible information 
B)  low prices 
C)  quality 
D)  value 
E)  warranties 
A)  readily accessible information 
B)  low prices 
C)  quality 
D)  value 
E)  warranties

Question 19

Demand factors refer to

Accepted Answer

A)  the number of consumers who can afford to purchase a product or service. 
B)  the price that should be charged for a given product. 
C)  consumers' willingness and ability to pay for products and services. 
D)  the number of consumers who want to purchase a product. 
E)  the number of consumers who can purchase a product. 
A)  the number of consumers who can afford to purchase a product or service. 
B)  the price that should be charged for a given product. 
C)  consumers' willingness and ability to pay for products and services. 
D)  the number of consumers who want to purchase a product. 
E)  the number of consumers who can purchase a product.

Question 20

Which of the following type of business is most likely to use cost-plus-percentage-of-cost pricing?

Accepted Answer

A)  real estate agency 
B)  insurance company 
C)  power company 
D)  grocery store 
E)  architect 
A)  real estate agency 
B)  insurance company 
C)  power company 
D)  grocery store 
E)  architect

Marketers using a dynamic price policy should take care to avoid

Target return-on-sales pricing refers to

A Patek Philippe Sky Moon Tourbillion men's wristwatch is among the most expensive in the world, costing more than $1.5 million. This is an example of a ________ strategy.

All of the following are legal or ethical considerations when setting a final price except which?

Which of the four approaches does Carmex use to set prices for its products?

Trade discounts are offered to resellers in the marketing channel on the basis of where they are in the channel and

What is the difference between a movement along a demand curve and a shift of a demand curve?

Figure 11-6a -In Figure 11-7a above, which is a break-even chart that depicts a graphic presentation of a break-even analysis for a picture frame store, the area CGD represents the firm's

Which of the following statements regarding sales goals is most accurate?

Specifying the role of price in an organization's marketing and strategic plans is referred to as

All of the following are examples of pricing constraints except which?

Price discrimination is illegal under the

Vertical price fixing refers to

Odd-even pricing refers to

All of the following are demand-oriented approaches to selecting an approximate price level except which?

A common pricing tactic today is the use of special fees and surcharges that add to a list price, a response to consumers' zeal for ________ combined with the ease of making price comparisons on the Internet.

Demand factors refer to

Which of the following type of business is most likely to use cost-plus-percentage-of-cost pricing?

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

Marketers using a dynamic price policy should take care to avoid

Target return-on-sales pricing refers to

A Patek Philippe Sky Moon Tourbillion men's wristwatch is among the most expensive in the world, costing more than $1.5 million. This is an example of a ________ strategy.

All of the following are legal or ethical considerations when setting a final price except which?

Which of the four approaches does Carmex use to set prices for its products?

Trade discounts are offered to resellers in the marketing channel on the basis of where they are in the channel and

What is the difference between a movement along a demand curve and a shift of a demand curve?

Figure 11-6a -In Figure 11-7a above, which is a break-even chart that depicts a graphic presentation of a break-even analysis for a picture frame store, the area CGD represents the firm's

Which of the following statements regarding sales goals is most accurate?

Specifying the role of price in an organization's marketing and strategic plans is referred to as

All of the following are examples of pricing constraints except which?

Price discrimination is illegal under the

Vertical price fixing refers to

Odd-even pricing refers to

All of the following are demand-oriented approaches to selecting an approximate price level except which?

A common pricing tactic today is the use of special fees and surcharges that add to a list price, a response to consumers' zeal for ________ combined with the ease of making price comparisons on the Internet.

Demand factors refer to

Which of the following type of business is most likely to use cost-plus-percentage-of-cost pricing?

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