Question 1

At what point does a firm maximize profit?

Accepted Answer

A)  The point at which marginal cost equals marginal revenue 
B)  The point at which the firm sells its product at the highest price 
C)  The breakeven point plus the adjusted marginal cost 
D)  The point at which marginal profits equal marginal revenue 
E)  The point at which marginal cost equals marginal profits 
A)  The point at which marginal cost equals marginal revenue 
B)  The point at which the firm sells its product at the highest price 
C)  The breakeven point plus the adjusted marginal cost 
D)  The point at which marginal profits equal marginal revenue 
E)  The point at which marginal cost equals marginal profits

Question 2

If Pacific Power and Light increased its rates by 10% and experienced a 2% reduction in the demand for power, the demand would be

Accepted Answer

A)  elastic. 
B)  minimal. 
C)  minor elasticity. 
D)  variable. 
E)  inelastic. 
A)  elastic. 
B)  minimal. 
C)  minor elasticity. 
D)  variable. 
E)  inelastic.

Question 3

Mars Petcare is one of the world's largest pet food manufacturers. If the strategic goal for Mars Petcare in the coming year was to ___________ in North America, it should use temporary price reductions.

Accepted Answer

A)  increase the number of competitors 
B)  gain market share 
C)  decrease volume sold 
D)  increase revenue per item 
E)  decrease the number of competitors 
A)  increase the number of competitors 
B)  gain market share 
C)  decrease volume sold 
D)  increase revenue per item 
E)  decrease the number of competitors

Question 4

The purpose of the pricing concept is to quantify and express the value of items in a market exchange.

Accepted Answer

A) True 
 B)False

Question 5

Vanessa is shopping for a new pair of athletic shoes. Since she is concerned about both the price and the quality aspects of a product, Vanessa is most likely a ___ consumer.

Accepted Answer

A)  price-conscious 
B)  prestige-sensitive 
C)  value-conscious 
D)  price-conscious and prestige-sensitive 
E)  quality-conscious 
A)  price-conscious 
B)  prestige-sensitive 
C)  value-conscious 
D)  price-conscious and prestige-sensitive 
E)  quality-conscious

Question 6

Barter is the oldest form of exchange.

Accepted Answer

A) True 
 B)False

Question 7

Setting prices for business customers is very similar to setting prices for consumers.

Accepted Answer

A) True 
 B)False

Question 8

To gain market share, when Hyundai first entered the U.S. car market it did so with a comparatively low pricing strategy. One of the negative side effects of making this pricing decision is

Accepted Answer

A)  a negative impact on consumers' perceptions of quality. 
B)  difficulty lowering the prices later. 
C)  a high return on investment level affecting tax balances owed. 
D)  poor survival chances. 
E)  higher developmental costs. 
A)  a negative impact on consumers' perceptions of quality. 
B)  difficulty lowering the prices later. 
C)  a high return on investment level affecting tax balances owed. 
D)  poor survival chances. 
E)  higher developmental costs.

Question 9

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 10

The legality of uniform geographic pricing has been challenged, and so its use has been abandoned.

Accepted Answer

A) True 
 B)False

Question 11

If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ____ discount.

Accepted Answer

A)  quantity 
B)  cash 
C)  seasonal 
D)  trade 
E)  complementary 
A)  quantity 
B)  cash 
C)  seasonal 
D)  trade 
E)  complementary

Question 12

The types of prices that appear most often in ads are ___,while the types of prices that occur least often in ads are ____ prices.

Accepted Answer

A)  reference; comparison 
B)  discount; cost-plus 
C)  bargain; premium 
D)  comparison; cost-plus 
E)  sale; reference 
A)  reference; comparison 
B)  discount; cost-plus 
C)  bargain; premium 
D)  comparison; cost-plus 
E)  sale; reference

Question 13

Channel member expectations play no part in a firm's pricing decisions.

Accepted Answer

A) True 
 B)False

Question 14

At the breakeven point,

Accepted Answer

A)  the money a company brings in from selling products equals the amount spent producing the products. 
B)  the total fixed costs are exactly equal to the total variable costs. 
C)  profits are exactly equal to the difference between revenue and total variable costs. 
D)  the marginal revenue of a product is exactly equal to the marginal cost of producing one more unit. 
E)  the marginal cost curve and the average cost curve will be identical for a particular product. 
A)  the money a company brings in from selling products equals the amount spent producing the products. 
B)  the total fixed costs are exactly equal to the total variable costs. 
C)  profits are exactly equal to the difference between revenue and total variable costs. 
D)  the marginal revenue of a product is exactly equal to the marginal cost of producing one more unit. 
E)  the marginal cost curve and the average cost curve will be identical for a particular product.

Question 15

Marginal revenue is the change in total revenue that occurs when a firm sells an additional unit of product.

Accepted Answer

A) True 
 B)False

Question 16

Compare and contrast price and nonprice competition. Give examples of firms that compete on a price basis and on a nonprice basis.

Accepted Answer

When engaging in price competition, a ma

Question 17

Brand uniqueness is not important in nonprice competition.

Accepted Answer

A) True 
 B)False

Question 18

Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing

Accepted Answer

A)  product competition. 
B)  nonprice competition. 
C)  brand differentiation. 
D)  price competition. 
E)  competitor differentiation. 
A)  product competition. 
B)  nonprice competition. 
C)  brand differentiation. 
D)  price competition. 
E)  competitor differentiation.

Question 19

A firm can survive in the long run only if its products are sold below cost.

Accepted Answer

A) True 
 B)False

Question 20

Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10% to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of a ____ discount.

Accepted Answer

A)  quantity 
B)  cash 
C)  seasonal 
D)  trade 
E)  complementary 
A)  quantity 
B)  cash 
C)  seasonal 
D)  trade 
E)  complementary

At what point does a firm maximize profit?

If Pacific Power and Light increased its rates by 10% and experienced a 2% reduction in the demand for power, the demand would be

Mars Petcare is one of the world's largest pet food manufacturers. If the strategic goal for Mars Petcare in the coming year was to ___________ in North America, it should use temporary price reductions.

The purpose of the pricing concept is to quantify and express the value of items in a market exchange.

Vanessa is shopping for a new pair of athletic shoes. Since she is concerned about both the price and the quality aspects of a product, Vanessa is most likely a ___ consumer.

Barter is the oldest form of exchange.

Setting prices for business customers is very similar to setting prices for consumers.

To gain market share, when Hyundai first entered the U.S. car market it did so with a comparatively low pricing strategy. One of the negative side effects of making this pricing decision is

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

The legality of uniform geographic pricing has been challenged, and so its use has been abandoned.

If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ____ discount.

The types of prices that appear most often in ads are _,while the types of prices that occur least often in ads are __ prices.

Channel member expectations play no part in a firm's pricing decisions.

At the breakeven point,

Marginal revenue is the change in total revenue that occurs when a firm sells an additional unit of product.

Compare and contrast price and nonprice competition. Give examples of firms that compete on a price basis and on a nonprice basis.

Brand uniqueness is not important in nonprice competition.

Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing

A firm can survive in the long run only if its products are sold below cost.

Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10% to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of a ____ discount.

An Overview of Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

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 Concepts, Branding, and Packaging

Developing and Managing Products

Services Marketing

Marketing Channels and Supply Chain Management

Retailing, Direct Marketing and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Setting Prices

Filters

Exam 19: Pricing Concepts

At what point does a firm maximize profit?

If Pacific Power and Light increased its rates by 10% and experienced a 2% reduction in the demand for power, the demand would be

Mars Petcare is one of the world's largest pet food manufacturers. If the strategic goal for Mars Petcare in the coming year was to ___________ in North America, it should use temporary price reductions.

The purpose of the pricing concept is to quantify and express the value of items in a market exchange.

Vanessa is shopping for a new pair of athletic shoes. Since she is concerned about both the price and the quality aspects of a product, Vanessa is most likely a ___ consumer.

Barter is the oldest form of exchange.

Setting prices for business customers is very similar to setting prices for consumers.

To gain market share, when Hyundai first entered the U.S. car market it did so with a comparatively low pricing strategy. One of the negative side effects of making this pricing decision is

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

The legality of uniform geographic pricing has been challenged, and so its use has been abandoned.

If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ____ discount.

The types of prices that appear most often in ads are ___,while the types of prices that occur least often in ads are ____ prices.

Channel member expectations play no part in a firm's pricing decisions.

At the breakeven point,

Marginal revenue is the change in total revenue that occurs when a firm sells an additional unit of product.

Compare and contrast price and nonprice competition. Give examples of firms that compete on a price basis and on a nonprice basis.

Brand uniqueness is not important in nonprice competition.

Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing

A firm can survive in the long run only if its products are sold below cost.

Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10% to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of a ____ discount.

An Overview of Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

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 Concepts, Branding, and Packaging

Developing and Managing Products

Services Marketing

Marketing Channels and Supply Chain Management

Retailing, Direct Marketing and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Setting Prices

Filters

The types of prices that appear most often in ads are _,while the types of prices that occur least often in ads are __ prices.