Question 1

Which of the following is true of products in the introductory stage of their life cycle?

Accepted Answer

A) ​Their prices will rise dramatically as they move into the specialty goods category. 
B) They experience price increases that are cost initiated. 
C) Their prices are usually set high. 
D) ​They experience an elastic demand in the core of the market. 
A) ​Their prices will rise dramatically as they move into the specialty goods category. 
B) They experience price increases that are cost initiated. 
C) Their prices are usually set high. 
D) ​They experience an elastic demand in the core of the market. C

Question 2

_____ is a price tactic that charges freight costs from a given point,regardless of the city from which the goods are shipped.

Accepted Answer

A) ​Free on board origin pricing 
B) Zone pricing 
C) Uniform delivered pricing 
D) ​Basing-point pricing 
A) ​Free on board origin pricing 
B) Zone pricing 
C) Uniform delivered pricing 
D) ​Basing-point pricing D

Question 3

Fresnas Designs Inc.is a company known for its quality interior decorations,customized service,and affordable prices.Given the high demand in the market for its service,the management of Fresnas Designs Inc.could price its products higher,but it prefers to price its products such that it will earn a reasonable revenue.In this case,the management of Fresnas Designs Inc.bases its pricing policy on:

Accepted Answer

A) ​sales maximization. 
B) earning satisfactory profits. 
C) creating retained earnings. 
D) ​status quo pricing. 
A) ​sales maximization. 
B) earning satisfactory profits. 
C) creating retained earnings. 
D) ​status quo pricing. B

Question 4

Which of the following statements is true about yield management systems (YMS)?

Accepted Answer

A) ​Theyare used to eliminate the problem of simultaneous production and consumption from services. 
B) They are can be used only in service industries. 
C) They are complex pricing systems used to establish price equilibrium. 
D) ​They are used to make profitable use of the unused capacity of perishable goods. 
A) ​Theyare used to eliminate the problem of simultaneous production and consumption from services. 
B) They are can be used only in service industries. 
C) They are complex pricing systems used to establish price equilibrium. 
D) ​They are used to make profitable use of the unused capacity of perishable goods.

Question 5

Which of the following statements is true about shopping bots?

Accepted Answer

A) ​The broad-based type of shopping bot searches for prices for only one type of product such as consumer electronics (CNET) or travel-related services (Kayak). 
B) They create opportunities for prestige pricing. 
C) They search the Web for the best price for a product. 
D) ​The niche-oriented shopping bot searches a wide range of product categories such as Google Shopping or Nextag. 
A) ​The broad-based type of shopping bot searches for prices for only one type of product such as consumer electronics (CNET) or travel-related services (Kayak). 
B) They create opportunities for prestige pricing. 
C) They search the Web for the best price for a product. 
D) ​The niche-oriented shopping bot searches a wide range of product categories such as Google Shopping or Nextag.

Question 6

Unlike a firm that launches a new item resembling several others already on the market,a firm that introduces a totally new product with no close substitutes will have no pricing freedom.

Accepted Answer

A) True 
 B)False

Question 7

An effective distribution network can sometimes overcome other minor flaws in the marketing mix.

Accepted Answer

A) True 
 B)False

Question 8

Unlike a firm that strives for market share,a firm with the objective of maximizing sales:

Accepted Answer

A) ​possesses adequate funds and faces an optimistic future. 
B) ignores profits, competition, and the marketing environment as long as sales are rising. 
C) benefits from maximization of cash if it is adopted as a long-run objective. 
D) ​seeks to maintain existing prices or to meet the competition's prices. 
A) ​possesses adequate funds and faces an optimistic future. 
B) ignores profits, competition, and the marketing environment as long as sales are rising. 
C) benefits from maximization of cash if it is adopted as a long-run objective. 
D) ​seeks to maintain existing prices or to meet the competition's prices.

Question 9

_____ is a method of determining what sales volume must be reached before total revenue equals total costs.

Accepted Answer

A) ​Break-even analysis 
B) Markup pricing 
C) Opportunity analysis 
D) ​Fixed-cost pricing 
A) ​Break-even analysis 
B) Markup pricing 
C) Opportunity analysis 
D) ​Fixed-cost pricing

Question 10

Which of the following is true of price-quality relationships?

Accepted Answer

A) ​Consumers perceive lowerpriced goods to be more long lasting than higherpriced goods. 
B) Consumers believe that higher priced goods are manufactured with better quality of ingredients. 
C) Consumers lack information about the quality of lowerpriced goods due to poor advertising. 
D) ​Consumer demands for higherpriced goods remain unchanged even if their quality declines. 
A) ​Consumers perceive lowerpriced goods to be more long lasting than higherpriced goods. 
B) Consumers believe that higher priced goods are manufactured with better quality of ingredients. 
C) Consumers lack information about the quality of lowerpriced goods due to poor advertising. 
D) ​Consumer demands for higherpriced goods remain unchanged even if their quality declines.

Question 11

Compare price skimming and penetration pricing.

Accepted Answer

Answers will vary.Price skimming is some

Question 12

Discuss the factors that affect elasticity of demand.

Accepted Answer

Answers will vary.Several factors affect

Question 13

Which of the following is a limitation of break-even analysis?

Accepted Answer

A) ​It does not give an estimate of how much profit can be earned once the break-even point is obtained. 
B) It does not give weightage to the cost of labor that is incurred during production. 
C) It is applicable only when the demand for a product is elastic. 
D) ​It is hard to determine which costs are fixed and which costs are variable. 
A) ​It does not give an estimate of how much profit can be earned once the break-even point is obtained. 
B) It does not give weightage to the cost of labor that is incurred during production. 
C) It is applicable only when the demand for a product is elastic. 
D) ​It is hard to determine which costs are fixed and which costs are variable.

Question 14

A lack of price matching contributes to a low price image.

Accepted Answer

A) True 
 B)False

Question 15

Predatory pricing is illegal under the Sherman Act and the Federal Trade Commission Act.

Accepted Answer

A) True 
 B)False

Question 16

The marketing manager of Rues Golf Club finds that the club can increase its market share and become the industry leader if it slashes membership prices by 50 percent during the first quarter of the year.However,the club cannot achieve its target return on investment if its slashes its membership prices during a quarter.This conflict illustrates:

Accepted Answer

A) ​a need to eliminate low-profit products. 
B) a lack of competition in the marketplace. 
C) how pricing operates in an ideal marketplace. 
D) ​the need for trade-offs in pricing objectives. 
A) ​a need to eliminate low-profit products. 
B) a lack of competition in the marketplace. 
C) how pricing operates in an ideal marketplace. 
D) ​the need for trade-offs in pricing objectives.

Question 17

A price skimming strategy is most often used for a new product when:

Accepted Answer

A) ​competition in the market is abundant. 
B) customers are unwilling to spend a large amount of money on the product. 
C) its supply is greater than its demand. 
D) ​the product is perceived by the target market as having unique advantages. 
A) ​competition in the market is abundant. 
B) customers are unwilling to spend a large amount of money on the product. 
C) its supply is greater than its demand. 
D) ​the product is perceived by the target market as having unique advantages.

Question 18

Price matching is one of the ways to counter a competitor's prices.

Accepted Answer

A) True 
 B)False

Question 19

When there are many substitutes available for a particular product,consumers:

Accepted Answer

A) ​judge the quality of the substitute product based on supply of each substitute. 
B) perceive individual products to have poor durability. 
C) can easily switch from one product to another. 
D) ​are sensitive to changes in supply of substitute products belonging to new brands. 
A) ​judge the quality of the substitute product based on supply of each substitute. 
B) perceive individual products to have poor durability. 
C) can easily switch from one product to another. 
D) ​are sensitive to changes in supply of substitute products belonging to new brands.

Question 20

Illustrate with examples how price plays a role in promotion strategies for products.

Accepted Answer

Answers will vary.Price is often used as

Which of the following is true of products in the introductory stage of their life cycle?

_____ is a price tactic that charges freight costs from a given point,regardless of the city from which the goods are shipped.

Which of the following statements is true about yield management systems (YMS)?

Which of the following statements is true about shopping bots?

Unlike a firm that launches a new item resembling several others already on the market,a firm that introduces a totally new product with no close substitutes will have no pricing freedom.

An effective distribution network can sometimes overcome other minor flaws in the marketing mix.

Unlike a firm that strives for market share,a firm with the objective of maximizing sales:

_____ is a method of determining what sales volume must be reached before total revenue equals total costs.

Which of the following is true of price-quality relationships?

Compare price skimming and penetration pricing.

Discuss the factors that affect elasticity of demand.

Which of the following is a limitation of break-even analysis?

A lack of price matching contributes to a low price image.

Predatory pricing is illegal under the Sherman Act and the Federal Trade Commission Act.

A price skimming strategy is most often used for a new product when:

Price matching is one of the ways to counter a competitor's prices.

When there are many substitutes available for a particular product,consumers:

Illustrate with examples how price plays a role in promotion strategies for products.

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

Marketing Research

Product Concepts

Developing and Managing Products

Services and Nonprofit Organization Marketing

Supply Chain Management and Marketing Channels

Retailing

Marketing Communications

Advertising, Public Relations and Sales Promotion

Personal Selling and Sales Management

Social Media and Marketing

Filters

Exam 19: Pricing Concepts

Which of the following is true of products in the introductory stage of their life cycle?

_____ is a price tactic that charges freight costs from a given point,regardless of the city from which the goods are shipped.

Which of the following statements is true about yield management systems (YMS)?

Which of the following statements is true about shopping bots?

Unlike a firm that launches a new item resembling several others already on the market,a firm that introduces a totally new product with no close substitutes will have no pricing freedom.

An effective distribution network can sometimes overcome other minor flaws in the marketing mix.

Unlike a firm that strives for market share,a firm with the objective of maximizing sales:

_____ is a method of determining what sales volume must be reached before total revenue equals total costs.

Which of the following is true of price-quality relationships?

Compare price skimming and penetration pricing.

Discuss the factors that affect elasticity of demand.

Which of the following is a limitation of break-even analysis?

A lack of price matching contributes to a low price image.

Predatory pricing is illegal under the Sherman Act and the Federal Trade Commission Act.

A price skimming strategy is most often used for a new product when:

Price matching is one of the ways to counter a competitor's prices.

When there are many substitutes available for a particular product,consumers:

Illustrate with examples how price plays a role in promotion strategies for products.

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

Marketing Research

Product Concepts

Developing and Managing Products

Services and Nonprofit Organization Marketing

Supply Chain Management and Marketing Channels

Retailing

Marketing Communications

Advertising, Public Relations and Sales Promotion

Personal Selling and Sales Management

Social Media and Marketing

Filters