Question 1

_____ pay for every activity of the company.

Accepted Answer

A)  Revenues 
B)  Investments 
C)  Retained earnings 
D)  Profits 
E)  Prices 
A)  Revenues 
B)  Investments 
C)  Retained earnings 
D)  Profits 
E)  Prices

Question 2

During the hot summer months or the week before a new class starts if there is still space available,the Nick Price golf school in Orlando,Florida offers a 25 percent reduction to get golfers during the off-season or those making a last-minute decision.This is an example of pricing strategy used as a(n):

Accepted Answer

A)  distribution tool 
B)  price enhancer 
C)  product strategy 
D)  direct sales tool 
E)  promotion strategy 
A)  distribution tool 
B)  price enhancer 
C)  product strategy 
D)  direct sales tool 
E)  promotion strategy

Question 3

At a price of $6,000,only 191 of the Moulton 60 model bicycle are being made.If Moulton sells each one of the bicycles at that price,then a state of _____ has been achieved.

Accepted Answer

A)  symmetry 
B)  marketing balance 
C)  unitary economics 
D)  commerce stability 
E)  price equilibrium 
A)  symmetry 
B)  marketing balance 
C)  unitary economics 
D)  commerce stability 
E)  price equilibrium

Question 4

Ceylon Express sells bottled pasteurized tea to retailers.It has the following revenues and costs:
$\begin{array}{llcc}
  \text { Sales price per bottle: } &\$0.50\
 \text { Average variable costs per bottle:} &\$0.30\
 \text {Total fixed costs (annual):  } &\$50,000\
 \text { Tax rate: } & \text { 20 percent } \
\end{array}$

What is the annual break-even point in units for the company?

Accepted Answer

A)  50,000 
B)  250,000 
C)  100,000 
D)  166,667 
E)  500,000 
A)  50,000 
B)  250,000 
C)  100,000 
D)  166,667 
E)  500,000

Question 5

Firms that price their products solely on the basis of costs are adhering to the marketing concept.

Accepted Answer

A) True 
 B)False

Question 6

Tesla Motors
"Going green" doesn't have to be boring.The Tesla Roadster Sport is an electric car that goes from 0 to 60 in four seconds and drives more like a race car than an environmentally-friendly ride.But that level of performance will set you back $128,500.As of 2009,Silicon Valley-based Tesla Motors,Inc.was the only company offering highway-compatible electric cars.Most Roadster Sport buyers are car enthusiasts and are buying them for the "fun toy" aspect of having an electric car rather than for environmental reasons.
-Refer to Tesla Motors.The price of the Roadster was set so that total revenue was as large as possible relative to total costs.This represents a _____ approach.

Accepted Answer

A)  profit maximization 
B)  market share pricing 
C)  demand-oriented pricing 
D)  sales maximization 
E)  status quo pricing 
A)  profit maximization 
B)  market share pricing 
C)  demand-oriented pricing 
D)  sales maximization 
E)  status quo pricing

Question 7

_____ is the practice of marking up prices by 100 percent (or doubling the cost to set the selling price).

Accepted Answer

A)  Margin pricing 
B)  Keystoning 
C)  Mark-on adding 
D)  Formula doubling 
E)  Symmetrical pricing 
A)  Margin pricing 
B)  Keystoning 
C)  Mark-on adding 
D)  Formula doubling 
E)  Symmetrical pricing

Question 8

Marketing managers who attempt to raise the quality image of their product by selling it at high prices are following a(n)_____ strategy.

Accepted Answer

A)  profit maximization 
B)  market share 
C)  maintained markup pricing 
D)  prestige pricing 
E)  investment asset 
A)  profit maximization 
B)  market share 
C)  maintained markup pricing 
D)  prestige pricing 
E)  investment asset

Question 9

Which of the following statements about pricing strategies throughout the product life cycle is FALSE?

Accepted Answer

A)  During product decline,prices may also decline until there is only one competitor left in the market. 
B)  Price increases during the maturity stage are cost initiated instead of demand initiated. 
C)  The maturity stage often brings about price decreases. 
D)  Prices stabilize when the product enters the growth stage. 
E)  With inelastic demand,price will be set low in the introduction stage. 
A)  During product decline,prices may also decline until there is only one competitor left in the market. 
B)  Price increases during the maturity stage are cost initiated instead of demand initiated. 
C)  The maturity stage often brings about price decreases. 
D)  Prices stabilize when the product enters the growth stage. 
E)  With inelastic demand,price will be set low in the introduction stage.

Question 10

Allstate has more than 1,500 price-levels that are determined by a complex algorithms that analyzes 16 credit report variables,including late payments and card balances.Allstate is using a _____ to set prices.

Accepted Answer

A)  yield management system 
B)  capacity correlation system 
C)  service forecasting tools 
D)  service management system 
E)  capacity maintenance tool 
A)  yield management system 
B)  capacity correlation system 
C)  service forecasting tools 
D)  service management system 
E)  capacity maintenance tool

Question 11

When Nesco brand food hydrators sold for $59.99,Nesco sold 90 dehydrators.When the company dropped the price of its dehydrators to $44.95,it sold 145 dehydrators.Demand for the food dehydrators appears to be:

Accepted Answer

A)  elastic 
B)  inelastic 
C)  unitary 
D)  symmetrical 
E)  asymmetrical 
A)  elastic 
B)  inelastic 
C)  unitary 
D)  symmetrical 
E)  asymmetrical

Question 12

Last quarter Abingdon Company sold 1,000 decorative decals for $1 each,Cedar Decaliania sold 200 decorative decals at $4 each,Creative Decals sold 500 decals at $2 each,and Donnelly,Inc.sold 300 decals for $4 apiece.Assuming the four companies are the only firms competing in the decorative decal market,calculate unit and dollar market share for each company for last quarter.For each company,which market share figure might be used in an advertisement for that company?

Accepted Answer

The following calculation table shows th

Question 13

A cost that changes with the level of output is called a(n)_____ cost.

Accepted Answer

A)  liquidity 
B)  variable 
C)  fixed 
D)  asset 
E)  elastic 
A)  liquidity 
B)  variable 
C)  fixed 
D)  asset 
E)  elastic

Question 14

Which of the following would imply demand would be elastic?

Accepted Answer

A)  Price is low relative to purchasing power 
B)  Nondurable product 
C)  Low inflation rate 
D)  Many substitute products 
E)  All of these choices 
A)  Price is low relative to purchasing power 
B)  Nondurable product 
C)  Low inflation rate 
D)  Many substitute products 
E)  All of these choices

Question 15

Total variable costs divided by quantity of output equals:

Accepted Answer

A)  average total cost 
B)  mean intermittent cost 
C)  fixed cost 
D)  marginal cost 
E)  average variable cost 
A)  average total cost 
B)  mean intermittent cost 
C)  fixed cost 
D)  marginal cost 
E)  average variable cost

Question 16

Specialty Cakes
Imagine you're planning an after-symphony fund-raising party,and you need a life-size grand piano cake.Or,you are a developer proposing a new shopping center to a group of investors,and you want to serve a cake shaped like an architectural rendition of the center.Is this impossible? No,you just need to contact Cecilia Villaveces Cakes.She actually built a life-size grand piano for a gala in Macon,Georgia.You can expect to pay anywhere from $75 to $10,000 for one of Cecilia's artistic creations,depending on complexity of design and size.She uses only the best ingredients,and no two cakes are ever quite alike.
-Refer to Specialty Cakes.Although many factors determine the prices charged by Cecilia Villaveces Cakes,the two primary determinants are:

Accepted Answer

A)  costs of manufacturing and distribution costs 
B)  stage of the product life cycle and costs to the consumers 
C)  the demand for the good and cost to the seller 
D)  demand by the consumer and perceived quality 
E)  distribution and promotion strategies used by the cake maker 
A)  costs of manufacturing and distribution costs 
B)  stage of the product life cycle and costs to the consumers 
C)  the demand for the good and cost to the seller 
D)  demand by the consumer and perceived quality 
E)  distribution and promotion strategies used by the cake maker

Question 17

For convenience,pricing objectives can be divided into three categories.They are:

Accepted Answer

A)  refundable,competitive,and attainable 
B)  perceived,actual,and unique-situational 
C)  differentiated,niche,and undifferentiated 
D)  profit oriented,sales oriented,and status quo 
E)  monopolistic,fixed,and variable 
A)  refundable,competitive,and attainable 
B)  perceived,actual,and unique-situational 
C)  differentiated,niche,and undifferentiated 
D)  profit oriented,sales oriented,and status quo 
E)  monopolistic,fixed,and variable

Question 18

High purchase prices may create feelings of pleasure and excitement in consumers.

Accepted Answer

A) True 
 B)False

Question 19

What is the difference between fixed and variable costs? Give examples of each type of cost.

Accepted Answer

FIXED COSTS are those expenses of the fi

Question 20

As long as the revenue of the last unit produced and sold is greater than the cost of the last unit produced and sold,a firm should:

Accepted Answer

A)  continue manufacturing 
B)  not use formula pricing 
C)  continue using price equilibrium 
D)  consider using sales maximization pricing 
E)  reach its break-even point very shortly 
A)  continue manufacturing 
B)  not use formula pricing 
C)  continue using price equilibrium 
D)  consider using sales maximization pricing 
E)  reach its break-even point very shortly

_____ pay for every activity of the company.

At a price of $6,000,only 191 of the Moulton 60 model bicycle are being made.If Moulton sells each one of the bicycles at that price,then a state of _____ has been achieved.

Ceylon Express sells bottled pasteurized tea to retailers.It has the following revenues and costs: Sales price per bottle: \0 .50 Average variable costs per bottle: \0 .30 Total fixed costs (annual): \5 0,000 Tax rate: 20 percent What is the annual break-even point in units for the company?

Firms that price their products solely on the basis of costs are adhering to the marketing concept.

_____ is the practice of marking up prices by 100 percent (or doubling the cost to set the selling price).

Marketing managers who attempt to raise the quality image of their product by selling it at high prices are following a(n)_____ strategy.

Which of the following statements about pricing strategies throughout the product life cycle is FALSE?

Allstate has more than 1,500 price-levels that are determined by a complex algorithms that analyzes 16 credit report variables,including late payments and card balances.Allstate is using a _____ to set prices.

When Nesco brand food hydrators sold for $59.99,Nesco sold 90 dehydrators.When the company dropped the price of its dehydrators to $44.95,it sold 145 dehydrators.Demand for the food dehydrators appears to be:

A cost that changes with the level of output is called a(n)_____ cost.

Which of the following would imply demand would be elastic?

Total variable costs divided by quantity of output equals:

For convenience,pricing objectives can be divided into three categories.They are:

High purchase prices may create feelings of pleasure and excitement in consumers.

What is the difference between fixed and variable costs? Give examples of each type of cost.

As long as the revenue of the last unit produced and sold is greater than the cost of the last unit produced and sold,a firm should:

An Overview of Marketing

Strategic Planning for Competitive Advantage

Ethics and Social Responsibility

The Marketing Environment

Developing a Global Vision

Consumer Decision Making

Business Marketing

Segmenting and Targeting Markets

Decision Support Systems and Marketing Research

Product Decisions

Developing and Managing Products

Services and Nonprofit Organization Marketing

Marketing Channels

Supply Chain Management

Retailing

Promotional Planning for Competitive Advantage

Advertising and Public Relations

Sales Promotion and Personal Selling

Setting the Right Price

Customer Relationship Management (CRM)

Social Media and Marketing

Filters

Exam 19: Pricing Concepts

_____ pay for every activity of the company.

At a price of $6,000,only 191 of the Moulton 60 model bicycle are being made.If Moulton sells each one of the bicycles at that price,then a state of _____ has been achieved.

Ceylon Express sells bottled pasteurized tea to retailers.It has the following revenues and costs: Sales price per bottle: \0 .50 Average variable costs per bottle: \0 .30 Total fixed costs (annual): \5 0,000 Tax rate: 20 percent What is the annual break-even point in units for the company?

Firms that price their products solely on the basis of costs are adhering to the marketing concept.

_____ is the practice of marking up prices by 100 percent (or doubling the cost to set the selling price).

Marketing managers who attempt to raise the quality image of their product by selling it at high prices are following a(n)_____ strategy.

Which of the following statements about pricing strategies throughout the product life cycle is FALSE?

Allstate has more than 1,500 price-levels that are determined by a complex algorithms that analyzes 16 credit report variables,including late payments and card balances.Allstate is using a _____ to set prices.

When Nesco brand food hydrators sold for $59.99,Nesco sold 90 dehydrators.When the company dropped the price of its dehydrators to $44.95,it sold 145 dehydrators.Demand for the food dehydrators appears to be:

A cost that changes with the level of output is called a(n)_____ cost.

Which of the following would imply demand would be elastic?

Total variable costs divided by quantity of output equals:

For convenience,pricing objectives can be divided into three categories.They are:

High purchase prices may create feelings of pleasure and excitement in consumers.

What is the difference between fixed and variable costs? Give examples of each type of cost.

As long as the revenue of the last unit produced and sold is greater than the cost of the last unit produced and sold,a firm should:

An Overview of Marketing

Strategic Planning for Competitive Advantage

Ethics and Social Responsibility

The Marketing Environment

Developing a Global Vision

Consumer Decision Making

Business Marketing

Segmenting and Targeting Markets

Decision Support Systems and Marketing Research

Product Decisions

Developing and Managing Products

Services and Nonprofit Organization Marketing

Marketing Channels

Supply Chain Management

Retailing

Promotional Planning for Competitive Advantage

Advertising and Public Relations

Sales Promotion and Personal Selling

Setting the Right Price

Customer Relationship Management (CRM)

Social Media and Marketing

Filters