Question 1

Markup pricing,adding an amount to cost to cover expenses and profit,is one of the most common pricing methods used by intermediaries to establish a selling price.

Accepted Answer

A) True 
 B)False

Question 2

_____ 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 3

American Girl Doll
The American Girl catalog began as a concept to introduce today's girls to those who lived in the past.Each historically accurate doll is carefully crafted and dressed and has books to describe her life.For example,Kristen is an 1854 pioneer girl who is growing up in Minnesota.Her story begins with her long sea voyage from Sweden.The basic doll,dressed in a calico dress and striped apron plus the hardcover story of how she got to Minnesota,costs $90.00.Six more hardback books of Kristen's life are available for $74.95.Kristen's nightgown costs $20.00,and a matching one for the doll owner is an additional $38.00.Buy both together and the price is only $50.00.A hand-painted wooden bed and trunk for Kristen are available for $213.00.Shipping costs vary with the price of the merchandise ordered.
-Refer to American Girl Doll.In terms of the costs of producing the doll and its accessories,the salary of the graphic designer who does the layout for the American Girl catalog is a(n):

Accepted Answer

A) markup cost. 
B) variable cost. 
C) fixed cost. 
D) derived cost. 
E) elastic cost. 
A) markup cost. 
B) variable cost. 
C) fixed cost. 
D) derived cost. 
E) elastic cost.

Question 4

Specialty Cakes
Imagine that 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 the 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 the cost to the seller. 
D) demand by the consumer and perceived quality. 
E) distribution and promotion strategies used by the cake maker.

Question 5

Specialty Cakes
Imagine that 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.Which of the following is the BEST example of a variable cost for Cecilia Villaveces Cakes?

Accepted Answer

A) Life insurance on Cecilia 
B) Flour and sugar 
C) Ovens used for cooking cakes 
D) Business licenses 
E) Interest payments to the bank 
A) Life insurance on Cecilia 
B) Flour and sugar 
C) Ovens used for cooking cakes 
D) Business licenses 
E) Interest payments to the bank

Question 6

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 7

Monthly output at Leisure-Time,Inc.changed from 12 to 13 prefabricated gazebos,and the total costs changed from $9,000 to $10,500.What is the marginal cost for this company?

Accepted Answer

A) $1,500 
B) $2,000 
C) $1,200 
D) $10,000 
E) $12,000 
A) $1,500 
B) $2,000 
C) $1,200 
D) $10,000 
E) $12,000

Question 8

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.

Question 9

The price of the good or service is a key decision for a marketer because it most significantly and directly affects the product's:

Accepted Answer

A) distribution. 
B) costs. 
C) demand. 
D) promotion. 
E) quality. 
A) distribution. 
B) costs. 
C) demand. 
D) promotion. 
E) quality.

Question 10

Consumers' responsiveness or sensitivity to changes in price is known as:

Accepted Answer

A) break-even. 
B) Equilibrium. 
C) unitary revenue. 
D) asymmetrical demand. 
E) elasticity of demand. 
A) break-even. 
B) Equilibrium. 
C) unitary revenue. 
D) asymmetrical demand. 
E) elasticity of demand.

Question 11

One strategy to get adequate distribution for a new product is to offer dealers a large trade allowance to help offset the costs of promotion.

Accepted Answer

A) True 
 B)False

Question 12

Price wars often break out:

Accepted Answer

A) as a product enters the growth stage. 
B) when a product if first introduced onto the market. 
C) as a result of keystoning. 
D) when a product enters the decline stage of the life cycle. 
E) in hotly competitive markets. 
A) as a product enters the growth stage. 
B) when a product if first introduced onto the market. 
C) as a result of keystoning. 
D) when a product enters the decline stage of the life cycle. 
E) in hotly competitive markets.

Question 13

Regency,Inc.makes disposable cap and gown sets for graduations.Each cap and gown set sells for $15.The average variable cost for manufacturing ten cap and gown sets is $100.Total fixed costs for the year equal $65,000.Calculate the break-even point in units.

Accepted Answer

A) 650 
B) 765 
C) 1,300 
D) 4,334 
E) 13,000 
A) 650 
B) 765 
C) 1,300 
D) 4,334 
E) 13,000

Question 14

Prices always steadily decline for a product in the decline stage of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 15

Dixie Furniture Company has recently moved to a new,larger location.At this new location,it has been unable to attract sufficient customers.Its owner did not have the cash to pay the current loan installment due on the building and inventory,so he decided to reduce all merchandise prices by at least 50 percent for a weekend sale to earn enough to make his loan payment.His pricing objective can be classified as:

Accepted Answer

A) market share maximization. 
B) satisfactory profits. 
C) asset maximization. 
D) sales maximization. 
E) target ROI. 
A) market share maximization. 
B) satisfactory profits. 
C) asset maximization. 
D) sales maximization. 
E) target ROI.

Question 16

Research indicates that when a country's inflation rate is high,demand becomes more elastic.

Accepted Answer

A) True 
 B)False

Question 17

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 18

The quantity of a product that will be sold in the market at various prices for a specified period is called:

Accepted Answer

A) market share. 
B) demand. 
C) supply. 
D) value. 
E) revenue. 
A) market share. 
B) demand. 
C) supply. 
D) value. 
E) revenue.

Question 19

When the NES Group lowered the price of its professional-grade meat slicers from $2,300 to $1,600,demand doubled from four units sold per month to eight 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 20

Selling $20 gift cards for $10 is,essentially,a variation of a loss-leader promotion.

Accepted Answer

A) True 
 B)False

Markup pricing,adding an amount to cost to cover expenses and profit,is one of the most common pricing methods used by intermediaries to establish a selling price.

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

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.

Monthly output at Leisure-Time,Inc.changed from 12 to 13 prefabricated gazebos,and the total costs changed from $9,000 to $10,500.What is the marginal cost for this company?

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:

The price of the good or service is a key decision for a marketer because it most significantly and directly affects the product's:

Consumers' responsiveness or sensitivity to changes in price is known as:

One strategy to get adequate distribution for a new product is to offer dealers a large trade allowance to help offset the costs of promotion.

Price wars often break out:

Regency,Inc.makes disposable cap and gown sets for graduations.Each cap and gown set sells for $15.The average variable cost for manufacturing ten cap and gown sets is $100.Total fixed costs for the year equal $65,000.Calculate the break-even point in units.

Prices always steadily decline for a product in the decline stage of the product life cycle.

Research indicates that when a country's inflation rate is high,demand becomes more elastic.

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:

The quantity of a product that will be sold in the market at various prices for a specified period is called:

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

Selling $20 gift cards for $10 is,essentially,a variation of a loss-leader promotion.

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 Concepts

Developing and Managing Products

Services and Nonprofit Organization Marketing

Marketing Channels

Supply Chain Management

Retailing

Integrated Marketing Communications

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

Markup pricing,adding an amount to cost to cover expenses and profit,is one of the most common pricing methods used by intermediaries to establish a selling price.

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

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.

Monthly output at Leisure-Time,Inc.changed from 12 to 13 prefabricated gazebos,and the total costs changed from $9,000 to $10,500.What is the marginal cost for this company?

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:

The price of the good or service is a key decision for a marketer because it most significantly and directly affects the product's:

Consumers' responsiveness or sensitivity to changes in price is known as:

One strategy to get adequate distribution for a new product is to offer dealers a large trade allowance to help offset the costs of promotion.

Price wars often break out:

Regency,Inc.makes disposable cap and gown sets for graduations.Each cap and gown set sells for $15.The average variable cost for manufacturing ten cap and gown sets is $100.Total fixed costs for the year equal $65,000.Calculate the break-even point in units.

Prices always steadily decline for a product in the decline stage of the product life cycle.

Research indicates that when a country's inflation rate is high,demand becomes more elastic.

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:

The quantity of a product that will be sold in the market at various prices for a specified period is called:

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

Selling $20 gift cards for $10 is,essentially,a variation of a loss-leader promotion.

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 Concepts

Developing and Managing Products

Services and Nonprofit Organization Marketing

Marketing Channels

Supply Chain Management

Retailing

Integrated Marketing Communications

Advertising and Public Relations

Sales Promotion and Personal Selling

Setting the Right Price

Customer Relationship Management Crm

Social Media and Marketing

Filters