Question 1

Only Amazon profited-as it does in its standard credit card transactions-from the gift card.

Accepted Answer

A) True 
 B)False

Question 2

As a product enters the growth stage,prices generally begin to stabilize.One reason for this is that:

Accepted Answer

A) the product has begun to appeal to a broader market. 
B) most competitors have been eliminated from the market. 
C) manufacturers hope to recover their development costs quickly. 
D) the available supply decrease.s 
E) all of the above are correct.. 
A) the product has begun to appeal to a broader market. 
B) most competitors have been eliminated from the market. 
C) manufacturers hope to recover their development costs quickly. 
D) the available supply decrease.s 
E) all of the above are correct..

Question 3

How does price interact with the other three Ps of the marketing mix?

Accepted Answer

PRODUCT.The product life cycle stage and

Question 4

If price _____ and revenue _____,demand is elastic.

Accepted Answer

A) goes up;goes down 
B) goes down;goes down 
C) goes down;goes up 
D) down;stays the same 
E) goes up;stays the same 
A) goes up;goes down 
B) goes down;goes down 
C) goes down;goes up 
D) down;stays the same 
E) goes up;stays the same

Question 5

_____ is a company's product sales as a percentage of total sales for that industry.

Accepted Answer

A) Return on investment 
B) Profit share 
C) Revenue share 
D) Market share 
E) Contribution 
A) Return on investment 
B) Profit share 
C) Revenue share 
D) Market share 
E) Contribution

Question 6

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.Many party planners in the Southeast will only use Cecilia Villaveces Cakes at their parties--no matter what the price is.They know that Cecilia's cakes can make a party a success.Moreover,the cakes are what people remember most about the parties.From this description,you should assume Cecilia Villaveces Cakes have a(n):

Accepted Answer

A) elastic demand. 
B) unitary elasticity. 
C) inelastic supply. 
D) inelastic demand. 
E) elastic supply. 
A) elastic demand. 
B) unitary elasticity. 
C) inelastic supply. 
D) inelastic demand. 
E) elastic supply.

Question 7

While the sales of the Apple iPhone have been great from the beginning,when Apple released its iPhone 3G and cut the price of the iPhone from $399 to $199,sales exploded with one million iPhones sold the first weekend.Demand for the iPhone appears to be:

Accepted Answer

A) unitary. 
B) predictable. 
C) synergistic. 
D) inelastic. 
E) elastic. 
A) unitary. 
B) predictable. 
C) synergistic. 
D) inelastic. 
E) elastic.

Question 8

When Jerry took delivery of his brand new (and very expensive)Jaguar automobile,he was filled with pleasure and excitement.This is an example of the _____ effect associated with the price-quality relationship.

Accepted Answer

A) durability 
B) allocative 
C) prestige 
D) hedonistic 
E) performance 
A) durability 
B) allocative 
C) prestige 
D) hedonistic 
E) performance

Question 9

The dimensions of quality that are important to consumers include:

Accepted Answer

A) versatility. 
B) serviceability. 
C) performance. 
D) ease of use. 
E) all of these choices. 
A) versatility. 
B) serviceability. 
C) performance. 
D) ease of use. 
E) all of these choices.

Question 10

If the formula for elasticity results in a measure of elasticity (E)equal to 1,the increase in sales exactly offsets the decrease in price,so total revenue remains the same.

Accepted Answer

A) True 
 B)False

Question 11

The owner of Buffalo Mountain Coffee Shop pays the same amount in rent each month no matter how many customers she serves.The shop owner's rent is an example of a marginal cost.

Accepted Answer

A) True 
 B)False

Question 12

Peggy's Twist Shack sells soft-serve ice cream.Peggy graphed the demand per week for vanilla ice cream cones.The graph indicates a demand schedule that slopes downward and to the right.This graph indicates that the quantity of vanilla ice cream cones demanded increases as:

Accepted Answer

A) cost increases. 
B) supply decreases. 
C) price increases. 
D) price decreases. 
E) supply increases. 
A) cost increases. 
B) supply decreases. 
C) price increases. 
D) price decreases. 
E) supply increases.

Question 13

_____ determine what sales volume must be reached before the company's total revenue equals total costs and no profits are earned.

Accepted Answer

A) Marginal revenue estimates 
B) Price equilibrium analyses 
C) Break-even analyses 
D) Average total cost (AT
C) figures 
E) Marginal costs of goods sold 
A) Marginal revenue estimates 
B) Price equilibrium analyses 
C) Break-even analyses 
D) Average total cost (AT
C) figures 
E) Marginal costs of goods sold

Question 14

Which of the following would imply elastic demand?

Accepted Answer

A) Price is low relative to purchasing power 
B) Nondurable product 
C) Low inflation rate 
D) Many substitute products 
E) All of these choices 
A) Price is low relative to purchasing power 
B) Nondurable product 
C) Low inflation rate 
D) Many substitute products 
E) All of these choices

Question 15

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

Accepted Answer

Yield management systems (YMS)are a tech

Question 16

Profit is the price charged to customers multiplied by the number of units sold.

Accepted Answer

A) True 
 B)False

Question 17

The manufacturers that remain in the market toward the end of the maturity stage typically offer similar prices.

Accepted Answer

A) True 
 B)False

Question 18

When Apple,Inc.originally introduced its iPhone,it was priced at what many believed to be about as high as the market would allow.Within weeks,Apple lowered the price of the iPhone.It appears that Apple entered the market with a _____ approach to pricing the iPhone.

Accepted Answer

A) market share pricing 
B) profit maximization 
C) demand-oriented 
D) sales maximization 
E) status quo pricing 
A) market share pricing 
B) profit maximization 
C) demand-oriented 
D) sales maximization 
E) status quo pricing

Question 19

Which of the following statements describes a limitation associated with break-even analysis?

Accepted Answer

A) It is sometimes difficult to ascertain whether a cost is fixed or variable. 
B) It requires the calculation of marginal revenue. 
C) It strictly considers demand. 
D) It assumes variable cost per item,which is difficult to calculate. 
E) It can only be expressed as a break-even point in dollar amounts. 
A) It is sometimes difficult to ascertain whether a cost is fixed or variable. 
B) It requires the calculation of marginal revenue. 
C) It strictly considers demand. 
D) It assumes variable cost per item,which is difficult to calculate. 
E) It can only be expressed as a break-even point in dollar amounts.

Question 20

Define price and discuss the two roles price plays in the evaluation of product alternatives.

Accepted Answer

Price is that which is given up in an ex

Exam 19: Pricing Concepts

Only Amazon profited-as it does in its standard credit card transactions-from the gift card.

As a product enters the growth stage,prices generally begin to stabilize.One reason for this is that:

How does price interact with the other three Ps of the marketing mix?

If price _____ and revenue _____,demand is elastic.

_____ is a company's product sales as a percentage of total sales for that industry.

While the sales of the Apple iPhone have been great from the beginning,when Apple released its iPhone 3G and cut the price of the iPhone from $399 to $199,sales exploded with one million iPhones sold the first weekend.Demand for the iPhone appears to be:

When Jerry took delivery of his brand new (and very expensive)Jaguar automobile,he was filled with pleasure and excitement.This is an example of the _____ effect associated with the price-quality relationship.

The dimensions of quality that are important to consumers include:

If the formula for elasticity results in a measure of elasticity (E)equal to 1,the increase in sales exactly offsets the decrease in price,so total revenue remains the same.

The owner of Buffalo Mountain Coffee Shop pays the same amount in rent each month no matter how many customers she serves.The shop owner's rent is an example of a marginal cost.

Peggy's Twist Shack sells soft-serve ice cream.Peggy graphed the demand per week for vanilla ice cream cones.The graph indicates a demand schedule that slopes downward and to the right.This graph indicates that the quantity of vanilla ice cream cones demanded increases as:

_____ determine what sales volume must be reached before the company's total revenue equals total costs and no profits are earned.

Which of the following would imply elastic demand?

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

Profit is the price charged to customers multiplied by the number of units sold.

The manufacturers that remain in the market toward the end of the maturity stage typically offer similar prices.

When Apple,Inc.originally introduced its iPhone,it was priced at what many believed to be about as high as the market would allow.Within weeks,Apple lowered the price of the iPhone.It appears that Apple entered the market with a _____ approach to pricing the iPhone.

Which of the following statements describes a limitation associated with break-even analysis?

Define price and discuss the two roles price plays in the evaluation of product alternatives.

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

If price _ and revenue _,demand is elastic.