Question 1

The fact that senior citizens are charged a lower price at movie theaters than are younger adults is an example of ____ pricing.

Accepted Answer

A)  price-lining 
B)  Promotional 
C)  Professional 
D)  Differential 
E)  psychological 
A)  price-lining 
B)  Promotional 
C)  Professional 
D)  Differential 
E)  psychological

Question 2

A written explanation of the responsibilities of the producer in the event the product is found to be defective or otherwise unsatisfactory is called a(n)

Accepted Answer

A)  Universal Product Code. 
B)  label. 
C)  express warranty. 
D)  set of instructions. 
E)  covenant. 
A)  Universal Product Code. 
B)  label. 
C)  express warranty. 
D)  set of instructions. 
E)  covenant.

Question 3

A product cannot perform its function if it is priced incorrectly.

Accepted Answer

A) True 
 B)False

Question 4

Psychological pricing strategies encourage purchases to be based on economically rational responses rather than on emotional responses.

Accepted Answer

A) True 
 B)False

Question 5

Chris and Kimberly White decided to buy new furniture for their bedroom.They spent considerable time shopping around, comparing prices and styles.Bedroom furniture is best classified as a ____ product.

Accepted Answer

A)  convenience 
B)  business 
C)  shopping 
D)  specialty 
E)  major equipment 
A)  convenience 
B)  business 
C)  shopping 
D)  specialty 
E)  major equipment

Question 6

Brand equity refers to making all of a company's brands approximately equal with respect to brand loyalty.

Accepted Answer

A) True 
 B)False

Question 7

The strategy of developing a large market share for a new product by setting a very low price is called penetration pricing.

Accepted Answer

A) True 
 B)False

Question 8

Costs that are incurred no matter how many units of a product are produced or sold are called

Accepted Answer

A)  operating expenses. 
B)  overhead. 
C)  variable costs. 
D)  fixed costs. 
E)  inflexible costs. 
A)  operating expenses. 
B)  overhead. 
C)  variable costs. 
D)  fixed costs. 
E)  inflexible costs.

Question 9

Equate, a brand of health and beauty care products, is available only at Walmart stores.Equate is a ____ brand.

Accepted Answer

A)  Producer 
B)  Private 
C)  distributor 
D)  Generic 
E)  conglomerate 
A)  Producer 
B)  Private 
C)  distributor 
D)  Generic 
E)  conglomerate

Question 10

Price differentiation is

Accepted Answer

A)  a form of competition-based pricing. 
B)  a form of cost-based pricing. 
C)  a form of demand-based pricing. 
D)  focused on achieving fewer sales but at higher prices. 
E)  focused on selling different goods for different prices. 
A)  a form of competition-based pricing. 
B)  a form of cost-based pricing. 
C)  a form of demand-based pricing. 
D)  focused on achieving fewer sales but at higher prices. 
E)  focused on selling different goods for different prices.

Question 11

During the decline stage of the product life-cycle, the sales volume decreases sharply because of an increase in the number of competing firms.

Accepted Answer

A) True 
 B)False

Question 12

A hotel room in New Orleans during Mardi Gras costs considerably more than it would during the following week.This is an example of

Accepted Answer

A)  status-quo pricing. 
B)  cost-based pricing. 
C)  price differentiation. 
D)  variable pricing. 
E)  price adjustment. 
A)  status-quo pricing. 
B)  cost-based pricing. 
C)  price differentiation. 
D)  variable pricing. 
E)  price adjustment.

Question 13

Click It, Inc.
Travis is a salesperson for Click It, Inc.Click It does not sell products with its own brand name.Instead, its products are created for different retail stores and carry the store brand.Travis thought that several changes needed to be made to a particular product, but Click It management reminded him that the stores, not Click It, owned the brand.
However, because Click It had been concerned about dropping sales, management listened to Travis's concerns about the company's pricing.He suggested using a different pricing strategy.More specifically, he felt that the company should incorporate a multiple-unit pricing strategy because it would then allow Click It to set a single price for multiple units.This had the potential of increasing sales and therefore profits, so management agreed to consider Travis's suggestion.
-Refer to Click It, Inc.As Click It managers considers the pricing issues, they should know that all of the following are major pricing objectives except

Accepted Answer

A)  status-quo pricing. 
B)  market-share goals. 
C)  survival. 
D)  profit minimisation. 
E)  target return on investment. 
A)  status-quo pricing. 
B)  market-share goals. 
C)  survival. 
D)  profit minimisation. 
E)  target return on investment.

Question 14

WD-40, Inc., markets only one product, its namesake chemical lubricant.The company offers the product in several different container sizes: smaller ones for household use and larger ones for industrial use.WD-40 would be considered as having a

Accepted Answer

A)  wide product mix. 
B)  broad product line. 
C)  narrow product mix. 
D)  differentiated product line. 
E)  brand name. 
A)  wide product mix. 
B)  broad product line. 
C)  narrow product mix. 
D)  differentiated product line. 
E)  brand name.

Question 15

Price leaders

Accepted Answer

A)  are sold at the highest possible price. 
B)  maximise profits. 
C)  lead to increased revenue or lower costs when prices are increased or decreased. 
D)  are sometimes sold at less than cost in hopes that sales of other products will increase. 
E)  lead the industry in sales. 
A)  are sold at the highest possible price. 
B)  maximise profits. 
C)  lead to increased revenue or lower costs when prices are increased or decreased. 
D)  are sometimes sold at less than cost in hopes that sales of other products will increase. 
E)  lead the industry in sales.

Question 16

Entirely new products are called

Accepted Answer

A)  innovations. 
B)  generics. 
C)  imitations. 
D)  house brands. 
E)  adaptations. 
A)  innovations. 
B)  generics. 
C)  imitations. 
D)  house brands. 
E)  adaptations.

Question 17

A discount from the list, or retail, price offered to intermediaries is a(n) ____ discount.

Accepted Answer

A)  quantity 
B)  FOB price 
C)  Cash 
D)  trade 
E)  cumulative 
A)  quantity 
B)  FOB price 
C)  Cash 
D)  trade 
E)  cumulative

Question 18

A major reason why retailers use markup pricing is because it is easy to apply.

Accepted Answer

A) True 
 B)False

Question 19

Paper, pencils, oils, and ____ are examples of supplies.

Accepted Answer

A)  stamping machines 
B)  cleaning agents 
C)  Cranes 
D)  Calculators 
E)  Lathes 
A)  stamping machines 
B)  cleaning agents 
C)  Cranes 
D)  Calculators 
E)  Lathes

Question 20

Costs incurred regardless of how many units of a product are produced or sold are called fixed costs.

Accepted Answer

A) True 
 B)False

The fact that senior citizens are charged a lower price at movie theaters than are younger adults is an example of ____ pricing.

A written explanation of the responsibilities of the producer in the event the product is found to be defective or otherwise unsatisfactory is called a(n)

A product cannot perform its function if it is priced incorrectly.

Psychological pricing strategies encourage purchases to be based on economically rational responses rather than on emotional responses.

Chris and Kimberly White decided to buy new furniture for their bedroom.They spent considerable time shopping around, comparing prices and styles.Bedroom furniture is best classified as a ____ product.

Brand equity refers to making all of a company's brands approximately equal with respect to brand loyalty.

The strategy of developing a large market share for a new product by setting a very low price is called penetration pricing.

Costs that are incurred no matter how many units of a product are produced or sold are called

Equate, a brand of health and beauty care products, is available only at Walmart stores.Equate is a ____ brand.

Price differentiation is

During the decline stage of the product life-cycle, the sales volume decreases sharply because of an increase in the number of competing firms.

A hotel room in New Orleans during Mardi Gras costs considerably more than it would during the following week.This is an example of

WD-40, Inc., markets only one product, its namesake chemical lubricant.The company offers the product in several different container sizes: smaller ones for household use and larger ones for industrial use.WD-40 would be considered as having a

Price leaders

Entirely new products are called

A discount from the list, or retail, price offered to intermediaries is a(n) ____ discount.

A major reason why retailers use markup pricing is because it is easy to apply.

Paper, pencils, oils, and ____ are examples of supplies.

Costs incurred regardless of how many units of a product are produced or sold are called fixed costs.

Introduction to Business

Responsible Business

Global Business

Types of Business Ownership

Small Business, Entrepreneurship, and Franchises

Leadership and Managing a Business

Flexibility Within the Organisation

Products and Services

Recruitment and Retaining the Best Employees

Employee Motivation and Team Building

The Marketing Concept

Marketing Channels

Marketing Communications

Social Media and E-Business

Introduction to Management Accounting

Money and the Banking System

Financial Management

Personal Finances and Investments

Filters

Exam 12: Aproduct Development and Pricing Strategies

The fact that senior citizens are charged a lower price at movie theaters than are younger adults is an example of ____ pricing.

A written explanation of the responsibilities of the producer in the event the product is found to be defective or otherwise unsatisfactory is called a(n)

A product cannot perform its function if it is priced incorrectly.

Psychological pricing strategies encourage purchases to be based on economically rational responses rather than on emotional responses.

Chris and Kimberly White decided to buy new furniture for their bedroom.They spent considerable time shopping around, comparing prices and styles.Bedroom furniture is best classified as a ____ product.

Brand equity refers to making all of a company's brands approximately equal with respect to brand loyalty.

The strategy of developing a large market share for a new product by setting a very low price is called penetration pricing.

Costs that are incurred no matter how many units of a product are produced or sold are called

Equate, a brand of health and beauty care products, is available only at Walmart stores.Equate is a ____ brand.

Price differentiation is

During the decline stage of the product life-cycle, the sales volume decreases sharply because of an increase in the number of competing firms.

A hotel room in New Orleans during Mardi Gras costs considerably more than it would during the following week.This is an example of

WD-40, Inc., markets only one product, its namesake chemical lubricant.The company offers the product in several different container sizes: smaller ones for household use and larger ones for industrial use.WD-40 would be considered as having a

Price leaders

Entirely new products are called

A discount from the list, or retail, price offered to intermediaries is a(n) ____ discount.

A major reason why retailers use markup pricing is because it is easy to apply.

Paper, pencils, oils, and ____ are examples of supplies.

Costs incurred regardless of how many units of a product are produced or sold are called fixed costs.

Introduction to Business

Responsible Business

Global Business

Types of Business Ownership

Small Business, Entrepreneurship, and Franchises

Leadership and Managing a Business

Flexibility Within the Organisation

Products and Services

Recruitment and Retaining the Best Employees

Employee Motivation and Team Building

The Marketing Concept

Marketing Channels

Marketing Communications

Social Media and E-Business

Introduction to Management Accounting

Money and the Banking System

Financial Management

Personal Finances and Investments

Filters