Question 1

Discuss how consumers use the price-quality relationship to evaluate goods and explain how marketers can take advantage of this consumer response.

Accepted Answer

Consumers tend to rely on price as an in

Question 2

Define elasticity of demand and compare and contrast the three types of demand: elastic,inelastic,and unitary.What would the demand curve for elastic and inelastic demand look like when graphed?

Accepted Answer

Elasticity of demand refers to consumers

Question 3

What activities occur once the marketing manager has established pricing goals? Why are these activities important?

Accepted Answer

The marketing manager must first estimat

Question 4

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 5

Sherrie is seven years old and wants to open a lemonade stand in her neighborhood.She is having a tough time deciding whether to base her pricing objectives on market share,dollar sales,or unit sales.Regardless of which she chooses,her pricing objective can be categorized as:

Accepted Answer

A)  status quo 
B)  profit oriented 
C)  need oriented 
D)  cost oriented 
E)  sales oriented 
A)  status quo 
B)  profit oriented 
C)  need oriented 
D)  cost oriented 
E)  sales oriented

Question 6

Chad has calculated the sales volume at which his lemonade stand's costs equal revenue.Over dinner he announced to his family that he only needed to sell 50 glasses of lemonade at $5 per glass to cover all his costs (lumber and nails for the stand,lemons,sugar,etc.).Which important factor has Chad excluded from his analysis?

Accepted Answer

A)  fixed and variable cost determination 
B)  consumer demand 
C)  target return pricing 
D)  break-even analysis 
E)  market share 
A)  fixed and variable cost determination 
B)  consumer demand 
C)  target return pricing 
D)  break-even analysis 
E)  market share

Question 7

Price should not be used as a promotional tool.

Accepted Answer

A) True 
 B)False

Question 8

Explain yield management systems (YMS)and discuss the types of industry were they are most appropriate.

Accepted Answer

Yield management systems are a technique

Question 9

Cowboy Malone's Electric City pays a wholesaler $700 for a television and sells it to a customer for $1,500.The markup on the television is:

Accepted Answer

A)  $240 
B)  $160 
C)  $700 
D)  $800 
E)  $1,500 
A)  $240 
B)  $160 
C)  $700 
D)  $800 
E)  $1,500

Question 10

Yield management systems (YMS)were first used by Internet service providers.

Accepted Answer

A) True 
 B)False

Question 11

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 12

Costs that do not change as output is increased or decreased are called stable costs.

Accepted Answer

A) True 
 B)False

Question 13

Khimaira Farms sells handcrafted cookie cutters.When graphed,the demand schedule for Khimaira Farms brand cookie cutters forms a straight line.If at $3 per cutter,500 cookie cutters are demanded,and at $4 per cutter,450 cookie cutters are ordered,how many will be ordered at a price of $6 per cutter?

Accepted Answer

A)  350 
B)  450 
C)  400 
D)  333 
E)  375 
A)  350 
B)  450 
C)  400 
D)  333 
E)  375

Question 14

A winery that makes a huge profit on merlot wines may lower its price on pinot noir wines to cause damage to wineries that only produce pinot noir.This is an example of predatory pricing.

Accepted Answer

A) True 
 B)False

Question 15

List the three basic pricing methods.Name one advantage and one disadvantage associated with using each method.

Accepted Answer

PRICE-SKIMMING advantages include (1)qui

Question 16

When the NES Group lowered the price of its professional-grade meat slicers from $2,300 to $1,600,demand doubled from 4 units sold per month to 8 units per month.However,total revenue dropped.This is an example of:

Accepted Answer

A)  substitute goods 
B)  unitary elasticity 
C)  elastic demand 
D)  consumer shortage 
E)  inelastic demand 
A)  substitute goods 
B)  unitary elasticity 
C)  elastic demand 
D)  consumer shortage 
E)  inelastic demand

Question 17

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.What is the fixed cost contribution for the Roadster given average variable costs of $50,500?

Accepted Answer

A)  $50,500 
B)  $78,000 
C)  $128,500 
D)  $179,000 
E)  $500,000 
A)  $50,500 
B)  $78,000 
C)  $128,500 
D)  $179,000 
E)  $500,000

Question 18

All of the following elements must be present for a pricing practice to be considered discriminatory under the Robinson-Patman Act EXCEPT:

Accepted Answer

A)  The seller must charge different prices to different customers for the same product. 
B)  The seller must make two or more actual sales within a reasonably short time. 
C)  The transaction must occur in interstate commerce. 
D)  The products sold must not be commodities. 
E)  There must be significant competitive injury. 
A)  The seller must charge different prices to different customers for the same product. 
B)  The seller must make two or more actual sales within a reasonably short time. 
C)  The transaction must occur in interstate commerce. 
D)  The products sold must not be commodities. 
E)  There must be significant competitive injury.

Question 19

_____ costs do not change as output is increased or decreased.

Accepted Answer

A)  Asset 
B)  Variable 
C)  Fixed 
D)  Symmetrical 
E)  Status quo 
A)  Asset 
B)  Variable 
C)  Fixed 
D)  Symmetrical 
E)  Status quo

Question 20

The two types of costs a marketer needs to consider when setting prices are:

Accepted Answer

A)  primary and secondary 
B)  variable and fixed 
C)  marginal and absolute 
D)  short-term and long-term 
E)  elastic and inelastic 
A)  primary and secondary 
B)  variable and fixed 
C)  marginal and absolute 
D)  short-term and long-term 
E)  elastic and inelastic

Discuss how consumers use the price-quality relationship to evaluate goods and explain how marketers can take advantage of this consumer response.

Define elasticity of demand and compare and contrast the three types of demand: elastic,inelastic,and unitary.What would the demand curve for elastic and inelastic demand look like when graphed?

What activities occur once the marketing manager has established pricing goals? Why are these activities important?

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

Sherrie is seven years old and wants to open a lemonade stand in her neighborhood.She is having a tough time deciding whether to base her pricing objectives on market share,dollar sales,or unit sales.Regardless of which she chooses,her pricing objective can be categorized as:

Price should not be used as a promotional tool.

Explain yield management systems (YMS)and discuss the types of industry were they are most appropriate.

Cowboy Malone's Electric City pays a wholesaler $700 for a television and sells it to a customer for $1,500.The markup on the television is:

Yield management systems (YMS)were first used by Internet service providers.

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

Costs that do not change as output is increased or decreased are called stable costs.

Khimaira Farms sells handcrafted cookie cutters.When graphed,the demand schedule for Khimaira Farms brand cookie cutters forms a straight line.If at $3 per cutter,500 cookie cutters are demanded,and at $4 per cutter,450 cookie cutters are ordered,how many will be ordered at a price of $6 per cutter?

A winery that makes a huge profit on merlot wines may lower its price on pinot noir wines to cause damage to wineries that only produce pinot noir.This is an example of predatory pricing.

List the three basic pricing methods.Name one advantage and one disadvantage associated with using each method.

When the NES Group lowered the price of its professional-grade meat slicers from $2,300 to $1,600,demand doubled from 4 units sold per month to 8 units per month.However,total revenue dropped.This is an example of:

All of the following elements must be present for a pricing practice to be considered discriminatory under the Robinson-Patman Act EXCEPT:

_____ costs do not change as output is increased or decreased.

The two types of costs a marketer needs to consider when setting prices are:

An Overview of Marketing

Strategic Planning for Competitive Advantage

Ethics & 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 Concepts

Developing and Managing Products

Marketing Channels and Supply Chain Management

Retailing

Marketing Communications and Advertising

Public Relations, Sales Promotion, and Personal Selling

Filters

Exam 16: Pricing Concepts

Discuss how consumers use the price-quality relationship to evaluate goods and explain how marketers can take advantage of this consumer response.

Define elasticity of demand and compare and contrast the three types of demand: elastic,inelastic,and unitary.What would the demand curve for elastic and inelastic demand look like when graphed?

What activities occur once the marketing manager has established pricing goals? Why are these activities important?

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

Sherrie is seven years old and wants to open a lemonade stand in her neighborhood.She is having a tough time deciding whether to base her pricing objectives on market share,dollar sales,or unit sales.Regardless of which she chooses,her pricing objective can be categorized as:

Price should not be used as a promotional tool.

Explain yield management systems (YMS)and discuss the types of industry were they are most appropriate.

Cowboy Malone's Electric City pays a wholesaler $700 for a television and sells it to a customer for $1,500.The markup on the television is:

Yield management systems (YMS)were first used by Internet service providers.

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

Costs that do not change as output is increased or decreased are called stable costs.

A winery that makes a huge profit on merlot wines may lower its price on pinot noir wines to cause damage to wineries that only produce pinot noir.This is an example of predatory pricing.

List the three basic pricing methods.Name one advantage and one disadvantage associated with using each method.

When the NES Group lowered the price of its professional-grade meat slicers from $2,300 to $1,600,demand doubled from 4 units sold per month to 8 units per month.However,total revenue dropped.This is an example of:

All of the following elements must be present for a pricing practice to be considered discriminatory under the Robinson-Patman Act EXCEPT:

_____ costs do not change as output is increased or decreased.

The two types of costs a marketer needs to consider when setting prices are:

An Overview of Marketing

Strategic Planning for Competitive Advantage

Ethics & 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 Concepts

Developing and Managing Products

Marketing Channels and Supply Chain Management

Retailing

Marketing Communications and Advertising

Public Relations, Sales Promotion, and Personal Selling

Filters