Question 1

Explain what is meant by price elasticity of demand.

Accepted Answer

Price elasticity of demand provides a me

Question 2

If fixed costs = $6,000, selling price = $10, and variable costs per unit = $5, what is the breakeven point in units and in dollar sales volume?

Accepted Answer

Knowing the number of units necessary to

Question 3

Jared is developing a business plan for a new type of bicycle helmet. He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product. Jared is interested in finding the

Accepted Answer

A)  elasticity of demand. 
B)  breakeven point. 
C)  variable costs. 
D)  price elasticity. 
E)  the sum of fixed costs. 
A)  elasticity of demand. 
B)  breakeven point. 
C)  variable costs. 
D)  price elasticity. 
E)  the sum of fixed costs.

Question 4

If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should use

Accepted Answer

A)  penetration pricing. 
B)  random discounting. 
C)  captive pricing. 
D)  price skimming. 
E)  everyday low prices. 
A)  penetration pricing. 
B)  random discounting. 
C)  captive pricing. 
D)  price skimming. 
E)  everyday low prices.

Question 5

What type of discount is given to a business purchaser for performing activities such as transporting, storing, and selling?

Accepted Answer

A)  Quantity 
B)  Cash 
C)  Geographic 
D)  Service 
E)  Trade 
A)  Quantity 
B)  Cash 
C)  Geographic 
D)  Service 
E)  Trade

Question 6

If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur

Accepted Answer

A)  more fixed costs. 
B)  higher average fixed costs. 
C)  fewer variable costs. 
D)  a marginal cost. 
E)  higher average variable costs. 
A)  more fixed costs. 
B)  higher average fixed costs. 
C)  fewer variable costs. 
D)  a marginal cost. 
E)  higher average variable costs.

Question 7

Explain differential pricing and then describe the four major types.

Accepted Answer

Differential pricing means charging diff

Question 8

Buyers who focus on purchasing products that signify prominence and status are

Accepted Answer

A)  value-conscious consumers. 
B)  price-conscious consumers. 
C)  socially elite buyers. 
D)  prestige-sensitive buyers. 
E)  brand aware consumers. 
A)  value-conscious consumers. 
B)  price-conscious consumers. 
C)  socially elite buyers. 
D)  prestige-sensitive buyers. 
E)  brand aware consumers.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

Which of the following basis for pricing is most commonly used by retailers?

Accepted Answer

A)  Negotiated pricing 
B)  Markup pricing 
C)  Demand-based pricing 
D)  Cost-plus pricing 
E)  Differential pricing 
A)  Negotiated pricing 
B)  Markup pricing 
C)  Demand-based pricing 
D)  Cost-plus pricing 
E)  Differential pricing

Question 12

When products in an industry are relatively homogeneous and price is a key purchase consideration,

Accepted Answer

A)  competition-based pricing becomes more important. 
B)  demand-based pricing dominates pricing decisions. 
C)  firms tend to use secondary-market pricing. 
D)  cost-based methods like markup pricing are dominant. 
E)  customary pricing is often used. 
A)  competition-based pricing becomes more important. 
B)  demand-based pricing dominates pricing decisions. 
C)  firms tend to use secondary-market pricing. 
D)  cost-based methods like markup pricing are dominant. 
E)  customary pricing is often used.

Question 13

A firm that considers costs and revenue secondary to competitors' prices when setting its own prices is using a competition-based pricing strategy.

Accepted Answer

A) True 
 B)False

Question 14

A problem associated with ____ is that consumers can predict when prices will be lowered and delay purchases until that time.

Accepted Answer

A)  random discounting 
B)  penetration pricing 
C)  reference pricing 
D)  everyday low pricing 
E)  periodic discounting 
A)  random discounting 
B)  penetration pricing 
C)  reference pricing 
D)  everyday low pricing 
E)  periodic discounting

Question 15

Marginal revenue is the change in total revenue that occurs when a firm sells an additional unit of product.

Accepted Answer

A) True 
 B)False

Question 16

Lucy buys a new dress at T.J. Maxx that has a price tag with "Compare at $150.00. Our Price $89.99." This is an example of the use of

Accepted Answer

A)  internal referencing. 
B)  cumulative discounts. 
C)  seasonal discounts. 
D)  base-point pricing. 
E)  an external reference price. 
A)  internal referencing. 
B)  cumulative discounts. 
C)  seasonal discounts. 
D)  base-point pricing. 
E)  an external reference price.

Question 17

Scenario 12.1 Use the following to answer the questions.
Concession Supply sells hotdogs, buns, and nacho ingredients to several major league ballparks across the country. Currently, Concession Supply has the following pricing information for one case of hotdogs sold at Wrigley Field: Total fixed costs = $1,200, Selling price = $16, and Variable costs = $6.
Refer to Scenario 12.1. What is the breakeven point in dollar sales volume?

Accepted Answer

A)  $1,200 
B)  $1,440 
C)  $3,000 
D)  $1,920 
E)  $1,600 
A)  $1,200 
B)  $1,440 
C)  $3,000 
D)  $1,920 
E)  $1,600

Question 18

How might a marketer find information about a competitor's prices? Why is this information important?

Accepted Answer

In most cases, marketers are in a better

Question 19

If an organization sets prices to recover research and development expenses and establish a premium quality image for its product, it would be using a ____ pricing objective.

Accepted Answer

A)  survival 
B)  return on investment 
C)  market share 
D)  product quality 
E)  cash flow 
A)  survival 
B)  return on investment 
C)  market share 
D)  product quality 
E)  cash flow

Question 20

Marginal analysis involves examining

Accepted Answer

A)  what happens to a firm's costs and revenues when production is changed by one unit. 
B)  what happens to a firm's revenues when one more product is sold. 
C)  what happens to a firm's costs when one more unit is produced. 
D)  the difference between marginal revenue and total revenue. 
E)  the difference between marginal cost and total cost. 
A)  what happens to a firm's costs and revenues when production is changed by one unit. 
B)  what happens to a firm's revenues when one more product is sold. 
C)  what happens to a firm's costs when one more unit is produced. 
D)  the difference between marginal revenue and total revenue. 
E)  the difference between marginal cost and total cost.

Explain what is meant by price elasticity of demand.

If fixed costs = $6,000, selling price = $10, and variable costs per unit = $5, what is the breakeven point in units and in dollar sales volume?

Jared is developing a business plan for a new type of bicycle helmet. He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product. Jared is interested in finding the

If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should use

What type of discount is given to a business purchaser for performing activities such as transporting, storing, and selling?

If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur

Explain differential pricing and then describe the four major types.

Buyers who focus on purchasing products that signify prominence and status are

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

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?

Which of the following basis for pricing is most commonly used by retailers?

When products in an industry are relatively homogeneous and price is a key purchase consideration,

A firm that considers costs and revenue secondary to competitors' prices when setting its own prices is using a competition-based pricing strategy.

A problem associated with ____ is that consumers can predict when prices will be lowered and delay purchases until that time.

Marginal revenue is the change in total revenue that occurs when a firm sells an additional unit of product.

Lucy buys a new dress at T.J. Maxx that has a price tag with "Compare at $150.00. Our Price $89.99." This is an example of the use of

How might a marketer find information about a competitor's prices? Why is this information important?

If an organization sets prices to recover research and development expenses and establish a premium quality image for its product, it would be using a ____ pricing objective.

Marginal analysis involves examining

Customer-Driven Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment, Social Responsibility, and Ethics

Marketing Research and Information Systems

Target Market Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product, Branding, and Packing Concepts

Developing and Managing Goods and Services

Marketing Channels and Supply-Chain Management

Retailing, Direct Marketing, and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Filters

Exam 12: Pricing Concepts and Management

Explain what is meant by price elasticity of demand.

If fixed costs = $6,000, selling price = $10, and variable costs per unit = $5, what is the breakeven point in units and in dollar sales volume?

Jared is developing a business plan for a new type of bicycle helmet. He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product. Jared is interested in finding the

If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should use

What type of discount is given to a business purchaser for performing activities such as transporting, storing, and selling?

If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur

Explain differential pricing and then describe the four major types.

Buyers who focus on purchasing products that signify prominence and status are

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

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?

Which of the following basis for pricing is most commonly used by retailers?

When products in an industry are relatively homogeneous and price is a key purchase consideration,

A firm that considers costs and revenue secondary to competitors' prices when setting its own prices is using a competition-based pricing strategy.

A problem associated with ____ is that consumers can predict when prices will be lowered and delay purchases until that time.

Marginal revenue is the change in total revenue that occurs when a firm sells an additional unit of product.

Lucy buys a new dress at T.J. Maxx that has a price tag with "Compare at $150.00. Our Price $89.99." This is an example of the use of

How might a marketer find information about a competitor's prices? Why is this information important?

If an organization sets prices to recover research and development expenses and establish a premium quality image for its product, it would be using a ____ pricing objective.

Marginal analysis involves examining

Customer-Driven Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment, Social Responsibility, and Ethics

Marketing Research and Information Systems

Target Market Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product, Branding, and Packing Concepts

Developing and Managing Goods and Services

Marketing Channels and Supply-Chain Management

Retailing, Direct Marketing, and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Filters