Question 1

Most public colleges charge less than half the price of similar private colleges.How can each type of college be delivering value?

Accepted Answer

Consumers want high value.High value can

Question 2

Explain the difference between fixed and variable costs and provide examples of each.

Accepted Answer

Fixed costs are those costs that remain

Question 3

A study found that,among addicted smokers,a 10 percent increase in the price of cigarettes resulted in a 2 percent decrease in quantity demanded.For these consumers,cigarettes have a(n)_______ price elasticity demand.

Accepted Answer

A)  elastic 
B)  inelastic 
C)  cross-price 
D)  income effect 
E)  substitution effect 
A)  elastic 
B)  inelastic 
C)  cross-price 
D)  income effect 
E)  substitution effect

Question 4

Why is it more fun and challenging for a marketer to be part of a market characterized by monopolistic competition than be part of one characterized by pure competition?

Accepted Answer

In pure competition,all products are sim

Question 5

Pricing strategies should be aligned with a firm's overall goals and objectives.

Accepted Answer

A) True 
 B)False

Question 6

The process of charging different prices for goods or services based on the type of customer,level of demand,or time of the day,week,or season is referred to as

Accepted Answer

A)  dynamic pricing. 
B)  the substitution effect. 
C)  the income effect. 
D)  the target return effect. 
E)  cross-price elasticity. 
A)  dynamic pricing. 
B)  the substitution effect. 
C)  the income effect. 
D)  the target return effect. 
E)  cross-price elasticity.

Question 7

A demand curve is built on the assumption that

Accepted Answer

A)  income is derived from demand. 
B)  price remains the same,and fixed costs change. 
C)  everything but price and demand remains the same. 
D)  fixed costs change with quantity demanded. 
E)  the firm does not advertise. 
A)  income is derived from demand. 
B)  price remains the same,and fixed costs change. 
C)  everything but price and demand remains the same. 
D)  fixed costs change with quantity demanded. 
E)  the firm does not advertise.

Question 8

The break-even point is estimated by

Accepted Answer

A)  multiplying revenue per unit times the quantity sold. 
B)  dividing fixed contribution per unit by variable costs. 
C)  multiplying fixed costs by contribution per unit. 
D)  dividing fixed costs by contribution per unit. 
E)  dividing variable costs by fixed costs. 
A)  multiplying revenue per unit times the quantity sold. 
B)  dividing fixed contribution per unit by variable costs. 
C)  multiplying fixed costs by contribution per unit. 
D)  dividing fixed costs by contribution per unit. 
E)  dividing variable costs by fixed costs.

Question 9

Because there are many firms in monopolistic competition markets,

Accepted Answer

A)  everyone is a price taker. 
B)  producers do not have to consider the reactions of rival firms. 
C)  government often encourages consolidation to reduce the number of competitors. 
D)  price controls may be implemented. 
E)  the many competitors will focus on product differentiation. 
A)  everyone is a price taker. 
B)  producers do not have to consider the reactions of rival firms. 
C)  government often encourages consolidation to reduce the number of competitors. 
D)  price controls may be implemented. 
E)  the many competitors will focus on product differentiation.

Question 10

How is the price elasticity for Crest toothpaste likely to be different from the price elasticity for all toothpastes (a product category)? Why are they likely to be different?

Accepted Answer

The price elasticity for Crest toothpast

Question 11

Karen initially charged $80 for an hour-long massage and averaged 20 clients per week.When she raised her price to $100,the number of massages decreased to 15 per week.What is the price elasticity of demand for her service?

Accepted Answer

Price elasticity of demand is the percen

Question 12

One of the limitations associated with break-even analysis is that

Accepted Answer

A)  it assumes fixed costs are zero. 
B)  it cannot adjust for high variable costs. 
C)  it tells marketers only what price is needed to break even. 
D)  it assumes that there is only one price. 
E)  it assumes that demand is extremely inelastic. 
A)  it assumes fixed costs are zero. 
B)  it cannot adjust for high variable costs. 
C)  it tells marketers only what price is needed to break even. 
D)  it assumes that there is only one price. 
E)  it assumes that demand is extremely inelastic.

Question 13

Which of the following is the most logical example of complementary products?

Accepted Answer

A)  hot dogs and hamburgers 
B)  VCRs and DVD players 
C)  hot dogs and hot dog buns 
D)  Honda cars and Toyota cars 
E)  a university and a corporation 
A)  hot dogs and hamburgers 
B)  VCRs and DVD players 
C)  hot dogs and hot dog buns 
D)  Honda cars and Toyota cars 
E)  a university and a corporation

Question 14

Brands that have developed loyal customers have a higher price elasticity of demand.

Accepted Answer

A) True 
 B)False

Question 15

When firms set prices similar to those of competitors,they are following a strategy of

Accepted Answer

A)  me-too pricing. 
B)  copycat pricing. 
C)  competitive parity. 
D)  market-broadening pricing. 
E)  industry-standard pricing. 
A)  me-too pricing. 
B)  copycat pricing. 
C)  competitive parity. 
D)  market-broadening pricing. 
E)  industry-standard pricing.

Question 16

A demand curve shows the relationship between income and demand.

Accepted Answer

A) True 
 B)False

Question 17

If the price for a product increases,the demand for the complementary product will

Accepted Answer

A)  decrease. 
B)  increase. 
C)  stay the same. 
D)  become more elastic. 
E)  become more inelastic. 
A)  decrease. 
B)  increase. 
C)  stay the same. 
D)  become more elastic. 
E)  become more inelastic.

Question 18

The key to successful pricing is to match the product with the consumer's perception of value.

Accepted Answer

A) True 
 B)False

Question 19

Costs related to supply and costs related to demand are the two primary cost categories.

Accepted Answer

A) True 
 B)False

Question 20

A strategy of setting prices based on how customers develop their perceptions of value can often be the most effective pricing strategy,especially if the strategy

Accepted Answer

A)  leads the marketer to being the low-cost seller. 
B)  is supported by consistent advertising and distribution strategies. 
C)  challenges consumers to discard their perceptions of value. 
D)  is consistent with a competitive target return strategy. 
E)  is measured against the competition. 
A)  leads the marketer to being the low-cost seller. 
B)  is supported by consistent advertising and distribution strategies. 
C)  challenges consumers to discard their perceptions of value. 
D)  is consistent with a competitive target return strategy. 
E)  is measured against the competition.

Most public colleges charge less than half the price of similar private colleges.How can each type of college be delivering value?

Explain the difference between fixed and variable costs and provide examples of each.

A study found that,among addicted smokers,a 10 percent increase in the price of cigarettes resulted in a 2 percent decrease in quantity demanded.For these consumers,cigarettes have a(n)_______ price elasticity demand.

Why is it more fun and challenging for a marketer to be part of a market characterized by monopolistic competition than be part of one characterized by pure competition?

Pricing strategies should be aligned with a firm's overall goals and objectives.

The process of charging different prices for goods or services based on the type of customer,level of demand,or time of the day,week,or season is referred to as

A demand curve is built on the assumption that

The break-even point is estimated by

Because there are many firms in monopolistic competition markets,

How is the price elasticity for Crest toothpaste likely to be different from the price elasticity for all toothpastes (a product category)? Why are they likely to be different?

Karen initially charged $80 for an hour-long massage and averaged 20 clients per week.When she raised her price to $100,the number of massages decreased to 15 per week.What is the price elasticity of demand for her service?

One of the limitations associated with break-even analysis is that

Which of the following is the most logical example of complementary products?

Brands that have developed loyal customers have a higher price elasticity of demand.

When firms set prices similar to those of competitors,they are following a strategy of

A demand curve shows the relationship between income and demand.

If the price for a product increases,the demand for the complementary product will

The key to successful pricing is to match the product with the consumer's perception of value.

Costs related to supply and costs related to demand are the two primary cost categories.

A strategy of setting prices based on how customers develop their perceptions of value can often be the most effective pricing strategy,especially if the strategy

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Social and Mobile Marketing

Marketing Ethics

Analyzing the Marketing Environment

Consumer Behavior

Business-To-Business Marketing

Global Marketing

Segmentation, Targeting, and Positioning

Marketing Research

Product, Branding, and Packaging Decisions

Developing New Products

Services: the Intangible Product

Strategic Pricing Methods

Supply Chain and Channel Management

Retailing and Multichannel Marketing

Integrated Marketing Communications

Integrated Marketing Communications

Personal Selling and Sales Management

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Exam 14: Pricing Concepts for Establishing Value

Most public colleges charge less than half the price of similar private colleges.How can each type of college be delivering value?

Explain the difference between fixed and variable costs and provide examples of each.

A study found that,among addicted smokers,a 10 percent increase in the price of cigarettes resulted in a 2 percent decrease in quantity demanded.For these consumers,cigarettes have a(n)_______ price elasticity demand.

Why is it more fun and challenging for a marketer to be part of a market characterized by monopolistic competition than be part of one characterized by pure competition?

Pricing strategies should be aligned with a firm's overall goals and objectives.

The process of charging different prices for goods or services based on the type of customer,level of demand,or time of the day,week,or season is referred to as

A demand curve is built on the assumption that

The break-even point is estimated by

Because there are many firms in monopolistic competition markets,

How is the price elasticity for Crest toothpaste likely to be different from the price elasticity for all toothpastes (a product category)? Why are they likely to be different?

Karen initially charged $80 for an hour-long massage and averaged 20 clients per week.When she raised her price to $100,the number of massages decreased to 15 per week.What is the price elasticity of demand for her service?

One of the limitations associated with break-even analysis is that

Which of the following is the most logical example of complementary products?

Brands that have developed loyal customers have a higher price elasticity of demand.

When firms set prices similar to those of competitors,they are following a strategy of

A demand curve shows the relationship between income and demand.

If the price for a product increases,the demand for the complementary product will

The key to successful pricing is to match the product with the consumer's perception of value.

Costs related to supply and costs related to demand are the two primary cost categories.

A strategy of setting prices based on how customers develop their perceptions of value can often be the most effective pricing strategy,especially if the strategy

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Social and Mobile Marketing

Marketing Ethics

Analyzing the Marketing Environment

Consumer Behavior

Business-To-Business Marketing

Global Marketing

Segmentation, Targeting, and Positioning

Marketing Research

Product, Branding, and Packaging Decisions

Developing New Products

Services: the Intangible Product

Strategic Pricing Methods

Supply Chain and Channel Management

Retailing and Multichannel Marketing

Integrated Marketing Communications

Integrated Marketing Communications

Personal Selling and Sales Management

Filters