Question 1

Which of the following is most likely to have an inelastic demand curve?

Accepted Answer

A)  Automobile 
B)  Vacation 
C)  Nonelective surgery 
D)  Recreational vehicle 
E)  Computer 
A)  Automobile 
B)  Vacation 
C)  Nonelective surgery 
D)  Recreational vehicle 
E)  Computer

Question 2

Marketers generally view ____ as the minimum price a product can be sold for.

Accepted Answer

A)  fixed costs 
B)  variable costs 
C)  profits 
D)  costs 
E)  moderate losses 
A)  fixed costs 
B)  variable costs 
C)  profits 
D)  costs 
E)  moderate losses

Question 3

Since Victoria's Secret has decided to use nonprice competition, it distinguishes its brand through all but which of the following?

Accepted Answer

A)  Distinctive product features 
B)  Exceptional service 
C)  Rebates 
D)  Variety and selection 
E)  Product quality and style 
A)  Distinctive product features 
B)  Exceptional service 
C)  Rebates 
D)  Variety and selection 
E)  Product quality and style

Question 4

Profit margins for marketing channel members must be considered when determining the price of a product.

Accepted Answer

A) True 
 B)False

Question 5

Kristi Lee Photography specializes in portraits, engagement, and wedding photography and has been a loyal Canon user for years. Kristi only shoots with Canon and owns the popular 5D Mark IV camera body and a variety of different lenses. Kristi believes that Canon is superior to Nikon due to Canon's USM, the ultrasonic motor that controls the autofocus system. Kristi believes she gets superior performance from the Canon system, and the USM is a key feature that Kristi appreciates. What type of practice is Canon using in its marketing of its lenses that relates to Kristi's preference for Canon products?

Accepted Answer

A)  Nonprice competition 
B)  Price competition 
C)  Feature superiority 
D)  Value-conscious pricing 
E)  Discount superiority 
A)  Nonprice competition 
B)  Price competition 
C)  Feature superiority 
D)  Value-conscious pricing 
E)  Discount superiority

Question 6

Transfer pricing involves the sale of a product to another unit within the same organization.

Accepted Answer

A) True 
 B)False

Question 7

If the terms of a business exchange are 2/10 net 30, this means that the transaction

Accepted Answer

A)  involves a cumulative discount if paid in 30 days. 
B)  involves a noncumulative discount. 
C)  offers a discount if the buyer lives within a ten-mile radius. 
D)  price does not include the cost of freight. 
E)  involves a cash discount if paid within ten days. 
A)  involves a cumulative discount if paid in 30 days. 
B)  involves a noncumulative discount. 
C)  offers a discount if the buyer lives within a ten-mile radius. 
D)  price does not include the cost of freight. 
E)  involves a cash discount if paid within ten days.

Question 8

A certain location of O'Charley's restaurant has annual fixed costs of $200,000. If an average tab at the restaurant is $60 and the variable costs per tab is $20, how many groups of customers must O'Charley's serve per year in order to break even?

Accepted Answer

A)  2,000 
B)  5,000 
C)  10,000 
D)  3,333 
E)  2,500 
A)  2,000 
B)  5,000 
C)  10,000 
D)  3,333 
E)  2,500

Question 9

Knowing the target market's evaluation of price allows the marketer to know how much emphasis to place on price and how to price a product relative to competition.

Accepted Answer

A) True 
 B)False

Question 10

A company trying to position itself as value oriented should not

Accepted Answer

A)  set prices that are reasonable relative to product quality. 
B)  use premium pricing for its products. 
C)  set prices similar to those of its competitors. 
D)  use any advertising for its products. 
E)  consider costs when determining the price of products. 
A)  set prices that are reasonable relative to product quality. 
B)  use premium pricing for its products. 
C)  set prices similar to those of its competitors. 
D)  use any advertising for its products. 
E)  consider costs when determining the price of products.

Question 11

Which of the following prohibits price discrimination that lessens competition among wholesalers and retailers?

Accepted Answer

A)  Sherman Antitrust Act 
B)  Robinson-Patman Act 
C)  Lanham Trademark Act 
D)  Federal Trade Commission Act 
E)  Wheeler-Lea Act 
A)  Sherman Antitrust Act 
B)  Robinson-Patman Act 
C)  Lanham Trademark Act 
D)  Federal Trade Commission Act 
E)  Wheeler-Lea Act

Question 12

Which of the following is true about price?

Accepted Answer

A)  Price has no psychological impact on customers. 
B)  Price always takes the form of money paid. 
C)  Price relates directly to variable costs. 
D)  Marketers do not use price symbolically. 
E)  It is the only marketing mix variable that can be changed quickly to respond to shifts in demand. 
A)  Price has no psychological impact on customers. 
B)  Price always takes the form of money paid. 
C)  Price relates directly to variable costs. 
D)  Marketers do not use price symbolically. 
E)  It is the only marketing mix variable that can be changed quickly to respond to shifts in demand.

Question 13

A graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a

Accepted Answer

A)  price graph. 
B)  supply curve. 
C)  price/quantity graph. 
D)  marginal revenue curve. 
E)  demand curve. 
A)  price graph. 
B)  supply curve. 
C)  price/quantity graph. 
D)  marginal revenue curve. 
E)  demand curve.

Question 14

Price is a crucial marketing mix component.

Accepted Answer

A) True 
 B)False

Question 15

Marketing mix variables are highly interrelated.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is true about customers' interpretation and response to price?

Accepted Answer

A)  An internal reference price is a comparison price provided by others such as friends and relatives. 
B)  An external reference price is a price developed in the buyer's mind through experience with the product. 
C)  Prestige-sensitive customers are concerned about both the price and quality aspects of a product. 
D)  At times, customers interpret a higher price as higher product quality. 
E)  Customers do not consider the resources required to maintain a product after purchase. 
A)  An internal reference price is a comparison price provided by others such as friends and relatives. 
B)  An external reference price is a price developed in the buyer's mind through experience with the product. 
C)  Prestige-sensitive customers are concerned about both the price and quality aspects of a product. 
D)  At times, customers interpret a higher price as higher product quality. 
E)  Customers do not consider the resources required to maintain a product after purchase.

Question 17

When Cadillac buys headlights from Delco (both of which are divisions of General Motors), ____ pricing occurs.

Accepted Answer

A)  base-point 
B)  zone 
C)  transfer 
D)  uniform geographic 
E)  matrix 
A)  base-point 
B)  zone 
C)  transfer 
D)  uniform geographic 
E)  matrix

Question 18

The degree to which the price of a product enhances a customer's satisfaction with the purchase experience and with the product after the purchase is part of their

Accepted Answer

A)  response. 
B)  reference. 
C)  interpretation. 
D)  price satisfaction. 
E)  price-consciousness. 
A)  response. 
B)  reference. 
C)  interpretation. 
D)  price satisfaction. 
E)  price-consciousness.

Question 19

Why is the marginal revenue of a product important to the marketer?

Accepted Answer

Marginal analysis examines what happens

Question 20

Dividing the percentage change in quantity demanded by the percentage change in price gives the

Accepted Answer

A)  prestige demand curve. 
B)  breakeven point. 
C)  marginal cost curve. 
D)  price sensitivity curve. 
E)  price elasticity of demand. 
A)  prestige demand curve. 
B)  breakeven point. 
C)  marginal cost curve. 
D)  price sensitivity curve. 
E)  price elasticity of demand.

Which of the following is most likely to have an inelastic demand curve?

Marketers generally view ____ as the minimum price a product can be sold for.

Since Victoria's Secret has decided to use nonprice competition, it distinguishes its brand through all but which of the following?

Profit margins for marketing channel members must be considered when determining the price of a product.

Transfer pricing involves the sale of a product to another unit within the same organization.

If the terms of a business exchange are 2/10 net 30, this means that the transaction

A certain location of O'Charley's restaurant has annual fixed costs of $200,000. If an average tab at the restaurant is $60 and the variable costs per tab is $20, how many groups of customers must O'Charley's serve per year in order to break even?

Knowing the target market's evaluation of price allows the marketer to know how much emphasis to place on price and how to price a product relative to competition.

A company trying to position itself as value oriented should not

Which of the following prohibits price discrimination that lessens competition among wholesalers and retailers?

Which of the following is true about price?

A graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a

Price is a crucial marketing mix component.

Marketing mix variables are highly interrelated.

Which of the following statements is true about customers' interpretation and response to price?

When Cadillac buys headlights from Delco (both of which are divisions of General Motors), ____ pricing occurs.

The degree to which the price of a product enhances a customer's satisfaction with the purchase experience and with the product after the purchase is part of their

Why is the marginal revenue of a product important to the marketer?

Dividing the percentage change in quantity demanded by the percentage change in price gives the

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

Which of the following is most likely to have an inelastic demand curve?

Marketers generally view ____ as the minimum price a product can be sold for.

Since Victoria's Secret has decided to use nonprice competition, it distinguishes its brand through all but which of the following?

Profit margins for marketing channel members must be considered when determining the price of a product.

Transfer pricing involves the sale of a product to another unit within the same organization.

If the terms of a business exchange are 2/10 net 30, this means that the transaction

A certain location of O'Charley's restaurant has annual fixed costs of $200,000. If an average tab at the restaurant is $60 and the variable costs per tab is $20, how many groups of customers must O'Charley's serve per year in order to break even?

Knowing the target market's evaluation of price allows the marketer to know how much emphasis to place on price and how to price a product relative to competition.

A company trying to position itself as value oriented should not

Which of the following prohibits price discrimination that lessens competition among wholesalers and retailers?

Which of the following is true about price?

A graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a

Price is a crucial marketing mix component.

Marketing mix variables are highly interrelated.

Which of the following statements is true about customers' interpretation and response to price?

When Cadillac buys headlights from Delco (both of which are divisions of General Motors), ____ pricing occurs.

The degree to which the price of a product enhances a customer's satisfaction with the purchase experience and with the product after the purchase is part of their

Why is the marginal revenue of a product important to the marketer?

Dividing the percentage change in quantity demanded by the percentage change in price gives the

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