Question 1

The amount of profit a channel member expects depends on

Accepted Answer

A)  the amount of discounts for large orders provided by the producers. 
B)  the number of channel support activities provided by the producers. 
C)  what the intermediary could earn if it were handling a competing product instead. 
D)  the type of distribution channels involved. 
E)  the amount of effort required to carry the product. 
A)  the amount of discounts for large orders provided by the producers. 
B)  the number of channel support activities provided by the producers. 
C)  what the intermediary could earn if it were handling a competing product instead. 
D)  the type of distribution channels involved. 
E)  the amount of effort required to carry the product.

Question 2

Logan is reading the online report of the tuition and fees he owes for this semester of college. Since he has signed up for online banking, he pays the amount immediately. The amount Logan just paid is considered to be

Accepted Answer

A)  his expenses. 
B)  his charges. 
C)  his bill. 
D)  the price. 
E)  the exchange valuations. 
A)  his expenses. 
B)  his charges. 
C)  his bill. 
D)  the price. 
E)  the exchange valuations.

Question 3

Pricing decisions can be based on determining whether the demand for a product is price elastic or price inelastic.

Accepted Answer

A) True 
 B)False

Question 4

The firm should produce the quantity at which marginal revenue and marginal cost are equal.

Accepted Answer

A) True 
 B)False

Question 5

The idea behind prestige demand is that many prestige products seem to sell better at a high price than at a low price.

Accepted Answer

A) True 
 B)False

Question 6

When marginal cost is equal to marginal revenue, the firm should

Accepted Answer

A)  produce more to increase profits. 
B)  produce less to decrease total costs. 
C)  stop producing additional units to maximize profits. 
D)  provide discounts to encourage purchases. 
E)  intensify distribution to increase sales. 
A)  produce more to increase profits. 
B)  produce less to decrease total costs. 
C)  stop producing additional units to maximize profits. 
D)  provide discounts to encourage purchases. 
E)  intensify distribution to increase sales.

Question 7

You are the general manager of the machining products division of a diversified manufacturing company in Des Moines, Iowa. You primarily produce machining products for sale to wholesalers around the world. However, you periodically get requests from other divisions in your company to purchase your products. You treat these purchase requests the same as a purchase request from a non-affiliated entity. You sell your machining products to other internal divisions at a price that is equivalent to a market-based cost.
This is an example of which of the following types of business pricing?

Accepted Answer

A)  Freight absorption pricing 
B)  Uniform geographic pricing 
C)  Transfer pricing 
D)  Zone pricing 
E)  Base-point pricing 
A)  Freight absorption pricing 
B)  Uniform geographic pricing 
C)  Transfer pricing 
D)  Zone pricing 
E)  Base-point pricing

Question 8

In the long run, the J.M. Smucker Company must view ____ as the absolute lowest price for its Jif brand peanut butter.

Accepted Answer

A)  a 10% return on investment 
B)  product development costs 
C)  total costs 
D)  advertising expenditures 
E)  Nestlé's prices 
A)  a 10% return on investment 
B)  product development costs 
C)  total costs 
D)  advertising expenditures 
E)  Nestlé's prices

Question 9

What are the differences among value-conscious, price-conscious, and prestige-sensitive customers?

Accepted Answer

Buyers can be characterized according to

Question 10

Marketers have more difficulty adjusting their prices than they do any other marketing mix variable.

Accepted Answer

A) True 
 B)False

Question 11

One advantage of nonprice competition is that

Accepted Answer

A)  a firm can react quickly to competitive efforts. 
B)  market share becomes less important. 
C)  a firm can build customer loyalty. 
D)  marketing efforts are completely eliminated. 
E)  pricing is no longer a factor. 
A)  a firm can react quickly to competitive efforts. 
B)  market share becomes less important. 
C)  a firm can build customer loyalty. 
D)  marketing efforts are completely eliminated. 
E)  pricing is no longer a factor.

Question 12

Which of the following products is most likely to involve personal selling?

Accepted Answer

A)  Blenders at a department store 
B)  Riding lawn mowers 
C)  Kindle Fire 
D)  Picture frames at a hobby supply store 
E)  Footballs at a sporting goods store 
A)  Blenders at a department store 
B)  Riding lawn mowers 
C)  Kindle Fire 
D)  Picture frames at a hobby supply store 
E)  Footballs at a sporting goods store

Question 13

A deduction from list price for purchasing large quantities aggregated over a stated period of time is a

Accepted Answer

A)  noncumulative quantity discount. 
B)  additive cash discount. 
C)  cumulative quantity discount. 
D)  cumulative discount allowance. 
E)  additive quantity reduction. 
A)  noncumulative quantity discount. 
B)  additive cash discount. 
C)  cumulative quantity discount. 
D)  cumulative discount allowance. 
E)  additive quantity reduction.

Question 14

A seller can change prices quickly in a price-competition situation.

Accepted Answer

A) True 
 B)False

Question 15

If a product has an inelastic demand and the manufacturer raises its price,

Accepted Answer

A)  total revenue will increase. 
B)  quantity demanded will decrease. 
C)  the demand schedule will shift. 
D)  the demand will become more inelastic. 
E)  total revenue will decrease. 
A)  total revenue will increase. 
B)  quantity demanded will decrease. 
C)  the demand schedule will shift. 
D)  the demand will become more inelastic. 
E)  total revenue will decrease.

Question 16

Abby is a marketing consultant who specializes in small businesses. Her current client is very interested in estimating the costs for the coming year, in order to find the breakeven point. Abby knows this is an important financial statistic because below the breakeven point, the firm is operating

Accepted Answer

A)  with fixed costs only. 
B)  with minimal variable costs. 
C)  with no revenue. 
D)  with minimal profit. 
E)  at a loss. 
A)  with fixed costs only. 
B)  with minimal variable costs. 
C)  with no revenue. 
D)  with minimal profit. 
E)  at a loss.

Question 17

What assumption does breakeven analysis make that limits its overall usefulness?

Accepted Answer

A)  It focuses on how to achieve a price objective. 
B)  It assumes a company wants to gain a certain market share. 
C)  It relies on demand for a product being inelastic. 
D)  It focuses only on competitive factors and not costs. 
E)  It assumes demand is elastic for the product. 
A)  It focuses on how to achieve a price objective. 
B)  It assumes a company wants to gain a certain market share. 
C)  It relies on demand for a product being inelastic. 
D)  It focuses only on competitive factors and not costs. 
E)  It assumes demand is elastic for the product.

Question 18

If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage, it is committing

Accepted Answer

A)  price discrimination. 
B)  price-consciousness. 
C)  functional discounting. 
D)  price competition. 
E)  price fixing. 
A)  price discrimination. 
B)  price-consciousness. 
C)  functional discounting. 
D)  price competition. 
E)  price fixing.

Question 19

Pricing decisions should be based on the marketer's previous marketing strategies for other successful products and on intuition.

Accepted Answer

A) True 
 B)False

Question 20

Price is considered to be the variable in the marketing mix that is

Accepted Answer

A)  least flexible. 
B)  most flexible. 
C)  most difficult. 
D)  first to be decided. 
E)  last to be decided. 
A)  least flexible. 
B)  most flexible. 
C)  most difficult. 
D)  first to be decided. 
E)  last to be decided.

The amount of profit a channel member expects depends on

Logan is reading the online report of the tuition and fees he owes for this semester of college. Since he has signed up for online banking, he pays the amount immediately. The amount Logan just paid is considered to be

Pricing decisions can be based on determining whether the demand for a product is price elastic or price inelastic.

The firm should produce the quantity at which marginal revenue and marginal cost are equal.

The idea behind prestige demand is that many prestige products seem to sell better at a high price than at a low price.

When marginal cost is equal to marginal revenue, the firm should

In the long run, the J.M. Smucker Company must view ____ as the absolute lowest price for its Jif brand peanut butter.

What are the differences among value-conscious, price-conscious, and prestige-sensitive customers?

Marketers have more difficulty adjusting their prices than they do any other marketing mix variable.

One advantage of nonprice competition is that

Which of the following products is most likely to involve personal selling?

A deduction from list price for purchasing large quantities aggregated over a stated period of time is a

A seller can change prices quickly in a price-competition situation.

If a product has an inelastic demand and the manufacturer raises its price,

Abby is a marketing consultant who specializes in small businesses. Her current client is very interested in estimating the costs for the coming year, in order to find the breakeven point. Abby knows this is an important financial statistic because below the breakeven point, the firm is operating

What assumption does breakeven analysis make that limits its overall usefulness?

If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage, it is committing

Pricing decisions should be based on the marketer's previous marketing strategies for other successful products and on intuition.

Price is considered to be the variable in the marketing mix that is

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

The amount of profit a channel member expects depends on

Logan is reading the online report of the tuition and fees he owes for this semester of college. Since he has signed up for online banking, he pays the amount immediately. The amount Logan just paid is considered to be

Pricing decisions can be based on determining whether the demand for a product is price elastic or price inelastic.

The firm should produce the quantity at which marginal revenue and marginal cost are equal.

The idea behind prestige demand is that many prestige products seem to sell better at a high price than at a low price.

When marginal cost is equal to marginal revenue, the firm should

In the long run, the J.M. Smucker Company must view ____ as the absolute lowest price for its Jif brand peanut butter.

What are the differences among value-conscious, price-conscious, and prestige-sensitive customers?

Marketers have more difficulty adjusting their prices than they do any other marketing mix variable.

One advantage of nonprice competition is that

Which of the following products is most likely to involve personal selling?

A deduction from list price for purchasing large quantities aggregated over a stated period of time is a

A seller can change prices quickly in a price-competition situation.

If a product has an inelastic demand and the manufacturer raises its price,

Abby is a marketing consultant who specializes in small businesses. Her current client is very interested in estimating the costs for the coming year, in order to find the breakeven point. Abby knows this is an important financial statistic because below the breakeven point, the firm is operating

What assumption does breakeven analysis make that limits its overall usefulness?

If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage, it is committing

Pricing decisions should be based on the marketer's previous marketing strategies for other successful products and on intuition.

Price is considered to be the variable in the marketing mix that is

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