Question 1

All of the following factors directly affect the elasticity of demand EXCEPT:

Accepted Answer

A) other uses of a product. 
B) inputs needed to manufacture the product. 
C) availability of substitute goods. 
D) price relative to a consumer's purchasing power. 
E) product durability. 
A) other uses of a product. 
B) inputs needed to manufacture the product. 
C) availability of substitute goods. 
D) price relative to a consumer's purchasing power. 
E) product durability.

Question 2

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 3

Profit maximization is the price at which supply and demand are equal,and there is no inclination for prices to rise or fall.

Accepted Answer

A) True 
 B)False

Question 4

During the hot summer months,or the week before a new class starts if there is still space available,the Nick Price golf school in Orlando,Florida,offers a 25 percent reduction to get golfers during the off-season or those making a last-minute decision.This is an example of pricing strategy used as a(n):

Accepted Answer

A) distribution tool. 
B) price enhancer. 
C) product strategy. 
D) direct sales tool. 
E) promotion strategy. 
A) distribution tool. 
B) price enhancer. 
C) product strategy. 
D) direct sales tool. 
E) promotion strategy.

Question 5

Which of the following statements about the Internet is true?

Accepted Answer

A) The Internet has shifted all shopping power to consumers. 
B) Consumer reviews tend to be equal in quality. 
C) Business-to-business auctions on the Internet are likely to be more important than consumer auctions in the future. 
D) Fraud is not a problem on the Internet. 
E) Extranets are programs that search the Internet for the best price for a particular product. 
A) The Internet has shifted all shopping power to consumers. 
B) Consumer reviews tend to be equal in quality. 
C) Business-to-business auctions on the Internet are likely to be more important than consumer auctions in the future. 
D) Fraud is not a problem on the Internet. 
E) Extranets are programs that search the Internet for the best price for a particular product.

Question 6

Allstate has more than 1,500 price levels determined by complex algorithms that analyze 16 credit report variables,including late payments and card balances.Allstate is using a _____ to set prices.

Accepted Answer

A) yield management system 
B) capacity correlation system 
C) service forecasting tools 
D) service management system 
E) capacity maintenance tool 
A) yield management system 
B) capacity correlation system 
C) service forecasting tools 
D) service management system 
E) capacity maintenance tool

Question 7

The most popular method used by wholesalers and retailers in establishing a sales price is _____ pricing.

Accepted Answer

A) markup 
B) status quo 
C) formula 
D) marginal revenue 
E) break-even 
A) markup 
B) status quo 
C) formula 
D) marginal revenue 
E) break-even

Question 8

What is meant by the colorful term "land grabbing" when Groupon and its competitors offer attractive deals and promotions?

Accepted Answer

A) increase sales and revenue 
B) grow their memberships 
C) "buying in bulk" gift cards and retail "coupons" 
D) steal shoppers from each other 
E) get better deals from retailers to offer shoppers 
A) increase sales and revenue 
B) grow their memberships 
C) "buying in bulk" gift cards and retail "coupons" 
D) steal shoppers from each other 
E) get better deals from retailers to offer shoppers

Question 9

_____ pay for every activity of the company.

Accepted Answer

A) Revenues 
B) Investments 
C) Retained earnings 
D) Profits 
E) Prices 
A) Revenues 
B) Investments 
C) Retained earnings 
D) Profits 
E) Prices

Question 10

_____ 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 11

Price should not be used as a promotional tool.

Accepted Answer

A) True 
 B)False

Question 12

The greater the number of different uses for a product,the more _____ demand tends to be.

Accepted Answer

A) elastic 
B) inelastic 
C) unitary 
D) volatile 
E) stable 
A) elastic 
B) inelastic 
C) unitary 
D) volatile 
E) stable

Question 13

A lack of pricing power means that when a company tries to raise its prices,it loses sales volume as customers shift to low cost competitors or find a substitute product.

Accepted Answer

A) True 
 B)False

Question 14

When a seller determines the selling price by adding to cost an amount for profit and expenses not previously accounted for,the seller is using _____ pricing.

Accepted Answer

A) profit maximization 
B) demand-oriented 
C) break-even 
D) target return 
E) markup 
A) profit maximization 
B) demand-oriented 
C) break-even 
D) target return 
E) markup

Question 15

_____ occurs when an increase in sales exactly offsets a decrease in price so that total revenue remains exactly the same.

Accepted Answer

A) Inelastic demand 
B) Functional elasticity of demand 
C) Unitary elasticity 
D) Highly elastic demand 
E) Fixed elasticity 
A) Inelastic demand 
B) Functional elasticity of demand 
C) Unitary elasticity 
D) Highly elastic demand 
E) Fixed elasticity

Question 16

Firms that price their products solely on the basis of costs are adhering to the marketing concept.

Accepted Answer

A) True 
 B)False

Question 17

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 producing the doll and its accessories,the calico fabric used to make Kristen's dress is an example of 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 18

_____ use complex mathematical software to profitably fill unused capacity.

Accepted Answer

A) Yield management systems 
B) Capacity correlation systems 
C) Service forecasting tools 
D) Service management systems 
E) Capacity management software 
A) Yield management systems 
B) Capacity correlation systems 
C) Service forecasting tools 
D) Service management systems 
E) Capacity management software

Question 19

Break-even analysis determines what sales volume must be reached before total revenue equals total costs.

Accepted Answer

A) True 
 B)False

Question 20

Price is defined as the perceived value of a good or service that is exchanged for a certain dollar amount.

Accepted Answer

A) True 
 B)False

All of the following factors directly affect the elasticity of demand EXCEPT:

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

Profit maximization is the price at which supply and demand are equal,and there is no inclination for prices to rise or fall.

Which of the following statements about the Internet is true?

Allstate has more than 1,500 price levels determined by complex algorithms that analyze 16 credit report variables,including late payments and card balances.Allstate is using a _____ to set prices.

The most popular method used by wholesalers and retailers in establishing a sales price is _____ pricing.

What is meant by the colorful term "land grabbing" when Groupon and its competitors offer attractive deals and promotions?

_____ pay for every activity of the company.

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

Price should not be used as a promotional tool.

The greater the number of different uses for a product,the more _____ demand tends to be.

A lack of pricing power means that when a company tries to raise its prices,it loses sales volume as customers shift to low cost competitors or find a substitute product.

When a seller determines the selling price by adding to cost an amount for profit and expenses not previously accounted for,the seller is using _____ pricing.

_____ occurs when an increase in sales exactly offsets a decrease in price so that total revenue remains exactly the same.

Firms that price their products solely on the basis of costs are adhering to the marketing concept.

_____ use complex mathematical software to profitably fill unused capacity.

Break-even analysis determines what sales volume must be reached before total revenue equals total costs.

Price is defined as the perceived value of a good or service that is exchanged for a certain dollar amount.

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

All of the following factors directly affect the elasticity of demand EXCEPT:

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

Profit maximization is the price at which supply and demand are equal,and there is no inclination for prices to rise or fall.

Which of the following statements about the Internet is true?

Allstate has more than 1,500 price levels determined by complex algorithms that analyze 16 credit report variables,including late payments and card balances.Allstate is using a _____ to set prices.

The most popular method used by wholesalers and retailers in establishing a sales price is _____ pricing.

What is meant by the colorful term "land grabbing" when Groupon and its competitors offer attractive deals and promotions?

_____ pay for every activity of the company.

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

Price should not be used as a promotional tool.

The greater the number of different uses for a product,the more _____ demand tends to be.

A lack of pricing power means that when a company tries to raise its prices,it loses sales volume as customers shift to low cost competitors or find a substitute product.

When a seller determines the selling price by adding to cost an amount for profit and expenses not previously accounted for,the seller is using _____ pricing.

_____ occurs when an increase in sales exactly offsets a decrease in price so that total revenue remains exactly the same.

Firms that price their products solely on the basis of costs are adhering to the marketing concept.

_____ use complex mathematical software to profitably fill unused capacity.

Break-even analysis determines what sales volume must be reached before total revenue equals total costs.

Price is defined as the perceived value of a good or service that is exchanged for a certain dollar amount.

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