Question 1

When price decreases and total revenue falls,demand is:

Accepted Answer

A) elastic. 
B) inelastic. 
C) absolute. 
D) unitary. 
E) stable. 
A) elastic. 
B) inelastic. 
C) absolute. 
D) unitary. 
E) stable.

Question 2

Manufacturers can do all of the following to regain some control over the price their products are sold for at the retail level EXCEPT:

Accepted Answer

A) require resellers to maintain prices in line with competitors' prices. 
B) developing brand loyalty in consumers by delivering quality and value. 
C) avoiding doing business with price-cutting discounters. 
D) franchising. 
E) using an exclusive distribution system. 
A) require resellers to maintain prices in line with competitors' prices. 
B) developing brand loyalty in consumers by delivering quality and value. 
C) avoiding doing business with price-cutting discounters. 
D) franchising. 
E) using an exclusive distribution system.

Question 3

Central Bark is a dog resort where pets are pampered.Which of the following is the BEST example of one of its fixed costs?

Accepted Answer

A) Payment on the building used by Central Bark 
B) Dog biscuits 
C) Dog collars and leashes 
D) Bubble bath 
E) Advertisements in local magazines 
A) Payment on the building used by Central Bark 
B) Dog biscuits 
C) Dog collars and leashes 
D) Bubble bath 
E) Advertisements in local magazines

Question 4

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.

Question 5

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 6

Although many factors can influence price,the primary determinants are:

Accepted Answer

A) costs of manufacturing and distribution 
B) the demand for the good and the cost to the seller 
C) demand by the consumer and perceived quality 
D) distribution and promotion strategies 
E) stage of the product life cycle and costs to the consumer 
A) costs of manufacturing and distribution 
B) the demand for the good and the cost to the seller 
C) demand by the consumer and perceived quality 
D) distribution and promotion strategies 
E) stage of the product life cycle and costs to the consumer

Question 7

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.To set the price of her cakes,Cecilia simply doubles her costs,which often include several hours of labor and expensive raw materials.This method of price setting is called:

Accepted Answer

A) mark-on pricing. 
B) premium pricing. 
C) keystoning. 
D) add-on pricing. 
E) superimposed pricing. 
A) mark-on pricing. 
B) premium pricing. 
C) keystoning. 
D) add-on pricing. 
E) superimposed pricing.

Question 8

A firm has maximized its profits when its marginal revenue exceeds its marginal cost.

Accepted Answer

A) True 
 B)False

Question 9

When pricing goals are mainly sales oriented,cost considerations usually dominate.

Accepted Answer

A) True 
 B)False

Question 10

List five factors that affect elasticity of demand and briefly describe how each affects demand.

Accepted Answer

AVAILABILITY OF SUBSTITUTES.When many pr

Question 11

Britney is fifteen years old and wants to open her own business selling cupcakes to local coffee shops and restaurants.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 12

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.If total fixed costs are $23,400,000 and the average variable cost is $50,500,how many Roadsters must Tesla sell to break even?

Accepted Answer

A) 130 
B) 182 
C) 250 
D) 300 
E) 463 
A) 130 
B) 182 
C) 250 
D) 300 
E) 463

Question 13

When the Apple iPhone 3G was introduced,the Apple iTunes Web site also began selling small program "apps" written by third parties that could be run on the iPhone.One interesting app was the "I Am Rich" application.For a price of $1,000,you could buy this app that did nothing but display a red gem on the iPhone's screen.The description of the app stated that this red icon would remind you (and others you show it to)"that you were rich enough to afford this." Six of the applications were sold before Apple,Inc.removed the app from iTunes.At the $1,000 price,the author of the app was using _____ pricing as part of his marketing approach.

Accepted Answer

A) snob appeal 
B) prestige 
C) exclusive 
D) selective 
E) unique 
A) snob appeal 
B) prestige 
C) exclusive 
D) selective 
E) unique

Question 14

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 15

As a product moves through its life cycle,the demand for the product and the competitive conditions tend to change.For each stage in the product life cycle,discuss pricing strategies appropriate for that stage.

Accepted Answer

INTRODUCTION.Generally,prices are set hi

Question 16

At Walmart,Randi saw a bag of daffodil flower bulbs and a box of plant fertilizer.The items,which were sold together,retailed at $28.50 but were marked down to $19.99.The $19.99 is the:

Accepted Answer

A) revenue. 
B) price. 
C) profit. 
D) liquidity value. 
E) amortized value. 
A) revenue. 
B) price. 
C) profit. 
D) liquidity value. 
E) amortized value.

Question 17

As it is suggested in the case study,Amazon,a direct investor in in LivingSocial,may have helped the company.How could Amazon have made money if it sold the discount cards at well below face value?

Accepted Answer

A) commissions from LivingSocial 
B) ROI 
C) with marginal revenue 
D) markup pricing 
E) It can't.Selling discount cards below face value is counterfeiting. 
A) commissions from LivingSocial 
B) ROI 
C) with marginal revenue 
D) markup pricing 
E) It can't.Selling discount cards below face value is counterfeiting.

Question 18

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 19

The Nest is a retail store owned and operated by an interior designer.The markup on all items in the store is 100 percent over cost (or double the cost).In this case,we would say the designer uses:

Accepted Answer

A) keystoning. 
B) target ROI pricing. 
C) break-even pricing. 
D) marginalizing. 
E) double sourcing. 
A) keystoning. 
B) target ROI pricing. 
C) break-even pricing. 
D) marginalizing. 
E) double sourcing.

Question 20

Which of the following statements is NOT true about price?

Accepted Answer

A) Price can relate to anything with perceived value,not just money. 
B) Price is that which is given up in an exchange to acquire a product. 
C) Price means the same thing to the consumer and the seller. 
D) The price paid is based on the satisfaction consumers expect to receive from a product. 
E) Customers are interested in obtaining a perceived reasonable price. 
A) Price can relate to anything with perceived value,not just money. 
B) Price is that which is given up in an exchange to acquire a product. 
C) Price means the same thing to the consumer and the seller. 
D) The price paid is based on the satisfaction consumers expect to receive from a product. 
E) Customers are interested in obtaining a perceived reasonable price.

When price decreases and total revenue falls,demand is:

Manufacturers can do all of the following to regain some control over the price their products are sold for at the retail level EXCEPT:

Central Bark is a dog resort where pets are pampered.Which of the following is the BEST example of one of its fixed costs?

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

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

Although many factors can influence price,the primary determinants are:

A firm has maximized its profits when its marginal revenue exceeds its marginal cost.

When pricing goals are mainly sales oriented,cost considerations usually dominate.

List five factors that affect elasticity of demand and briefly describe how each affects demand.

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:

As a product moves through its life cycle,the demand for the product and the competitive conditions tend to change.For each stage in the product life cycle,discuss pricing strategies appropriate for that stage.

At Walmart,Randi saw a bag of daffodil flower bulbs and a box of plant fertilizer.The items,which were sold together,retailed at $28.50 but were marked down to $19.99.The $19.99 is the:

As it is suggested in the case study,Amazon,a direct investor in in LivingSocial,may have helped the company.How could Amazon have made money if it sold the discount cards at well below face value?

The Nest is a retail store owned and operated by an interior designer.The markup on all items in the store is 100 percent over cost (or double the cost).In this case,we would say the designer uses:

Which of the following statements is NOT true about price?

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

When price decreases and total revenue falls,demand is:

Manufacturers can do all of the following to regain some control over the price their products are sold for at the retail level EXCEPT:

Central Bark is a dog resort where pets are pampered.Which of the following is the BEST example of one of its fixed costs?

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

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

Although many factors can influence price,the primary determinants are:

A firm has maximized its profits when its marginal revenue exceeds its marginal cost.

When pricing goals are mainly sales oriented,cost considerations usually dominate.

List five factors that affect elasticity of demand and briefly describe how each affects demand.

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:

As a product moves through its life cycle,the demand for the product and the competitive conditions tend to change.For each stage in the product life cycle,discuss pricing strategies appropriate for that stage.

At Walmart,Randi saw a bag of daffodil flower bulbs and a box of plant fertilizer.The items,which were sold together,retailed at $28.50 but were marked down to $19.99.The $19.99 is the:

As it is suggested in the case study,Amazon,a direct investor in in LivingSocial,may have helped the company.How could Amazon have made money if it sold the discount cards at well below face value?

The Nest is a retail store owned and operated by an interior designer.The markup on all items in the store is 100 percent over cost (or double the cost).In this case,we would say the designer uses:

Which of the following statements is NOT true about price?

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