Question 1

Which of the following is most likely to have an inelastic demand curve?

Accepted Answer

A) Automobile 
B) Vacation 
C) Nonelective surgery 
D) Recreational vehicle 
E) Computer 
A) Automobile 
B) Vacation 
C) Nonelective surgery 
D) Recreational vehicle 
E) Computer C

Question 2

Marketers have more difficulty adjusting their prices than they do any other marketing mix variable.

Accepted Answer

A) True 
 B)False  False

Question 3

Ideally,pricing decisions have little relation to a firm's marketing objectives.

Accepted Answer

A) True 
 B)False  False

Question 4

Suppose that the watchband department of Timex sells completed watchbands to the finished watch department.The finished watch department is charged the price it would have to pay an outside watchband manufacturer less a discount to reflect low sales and transportation costs.This method of pricing is called ____ pricing.

Accepted Answer

A) zone 
B) actual full cost 
C) standard full cost 
D) cost plus investment 
E) market-based cost 
A) zone 
B) actual full cost 
C) standard full cost 
D) cost plus investment 
E) market-based cost

Question 5

The Palasi Candy Company is a small business located in the northeastern United States.The owner of Palasi Candy is calculating the projected costs for the coming year.There is rent for the building,salaries for the retail employees,raw materials of sugar,chocolate,and other ingredients,wrappers for packaging of individual pieces of candy,boxes,and radio advertising.Palasi's ______ are most likely to be the raw materials of sugar,chocolate,and other ingredients,as well as the wrappers.

Accepted Answer

A) sunk costs. 
B) variable costs. 
C) direct costs. 
D) fixed costs. 
E) marginal costs. 
A) sunk costs. 
B) variable costs. 
C) direct costs. 
D) fixed costs. 
E) marginal costs.

Question 6

French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night.This is an indication that suites at this hotel are apparently an example of a(n)____ product.

Accepted Answer

A) reverse-demand 
B) inferior 
C) standard 
D) secondary-demand 
E) prestige 
A) reverse-demand 
B) inferior 
C) standard 
D) secondary-demand 
E) prestige

Question 7

Price is

Accepted Answer

A) money paid in a transaction. 
B) not important to buyers. 
C) of limited interest to sellers. 
D) the most inflexible marketing mix decision variable. 
E) the value that is exchanged for products in a marketing transaction. 
A) money paid in a transaction. 
B) not important to buyers. 
C) of limited interest to sellers. 
D) the most inflexible marketing mix decision variable. 
E) the value that is exchanged for products in a marketing transaction.

Question 8

Marketers should set prices consistent with marketing goals,not with the corporate mission.

Accepted Answer

A) True 
 B)False

Question 9

Monopolies usually keep their prices at a level that generate a reasonable,but not excessive,return primarily because

Accepted Answer

A) they want to avoid new competitors entering their market. 
B) they want to avoid government regulations on their pricing. 
C) they try to satisfy the demands of value-conscious consumers. 
D) firms can increase market share more rapidly this way. 
E) customers will discontinue use of these products if prices rise. 
A) they want to avoid new competitors entering their market. 
B) they want to avoid government regulations on their pricing. 
C) they try to satisfy the demands of value-conscious consumers. 
D) firms can increase market share more rapidly this way. 
E) customers will discontinue use of these products if prices rise.

Question 10

Which of the following acts does not directly affect pricing decisions?

Accepted Answer

A) Sherman Antitrust Act 
B) Federal Trade Commission Act 
C) Wheeler-Lea Act 
D) Clayton Act 
E) Simpson-Marshall Act 
A) Sherman Antitrust Act 
B) Federal Trade Commission Act 
C) Wheeler-Lea Act 
D) Clayton Act 
E) Simpson-Marshall Act

Question 11

The purpose of the pricing concept is to quantify and express the value of items in a market exchange.

Accepted Answer

A) True 
 B)False

Question 12

Factors affecting pricing decisions can include demand,distribution,and the way in which the product is promoted.

Accepted Answer

A) True 
 B)False

Question 13

How would pricing decisions differ for a business in an oligopolistic market structure as opposed to a monopolistic market structure?

Accepted Answer

The answer of How would pricing decisions differ for a...

Question 14

Profit margins for marketing channel members must be considered when determining the price of a product.

Accepted Answer

A) True 
 B)False

Question 15

To maintain market share and revenue in an increasingly price-sensitive market,companies have focused on quality,used labor-saving technologies,and used efficient manufacturing processes.These tactics have provided gains in productivity that have translated into ____ for the consumer.

Accepted Answer

A) higher costs for the company and higher prices 
B) higher costs for the company and lower prices 
C) lower costs for the company and lower prices 
D) lower costs for the company and higher prices 
E) no change in the costs for either the company or 
A) higher costs for the company and higher prices 
B) higher costs for the company and lower prices 
C) lower costs for the company and lower prices 
D) lower costs for the company and higher prices 
E) no change in the costs for either the company or

Question 16

What a price means or what it communicates to customers is called

Accepted Answer

A) reference. 
B) response. 
C) interpretation. 
D) internalization. 
E) signaling. 
A) reference. 
B) response. 
C) interpretation. 
D) internalization. 
E) signaling.

Question 17

Which of the following statements about price elasticity is false?

Accepted Answer

A) Steak is an example of a product that has an elastic demand for most people,because when price goes up quantity demanded goes down proportionally more. 
B) Elasticity of demand is the relative responsiveness of a change in quantity demanded to changes in price. 
C) If marketers can determine price elasticity,then setting prices at optimum levels is much easier. 
D) When price is raised on a product that has an inelastic demand,then total revenue will decrease. 
E) A product like electricity has an inelastic demand. 
A) Steak is an example of a product that has an elastic demand for most people,because when price goes up quantity demanded goes down proportionally more. 
B) Elasticity of demand is the relative responsiveness of a change in quantity demanded to changes in price. 
C) If marketers can determine price elasticity,then setting prices at optimum levels is much easier. 
D) When price is raised on a product that has an inelastic demand,then total revenue will decrease. 
E) A product like electricity has an inelastic demand.

Question 18

A concession in price in business markets to achieve a desired goal is called a(n)

Accepted Answer

A) allowance. 
B) objective-oriented discount. 
C) cash discount. 
D) trade discount. 
E) cumulative discount. 
A) allowance. 
B) objective-oriented discount. 
C) cash discount. 
D) trade discount. 
E) cumulative discount.

Question 19

Channel member expectations play no part in a firm's pricing decisions.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following prohibits price discrimination that lessens competition among wholesalers and retailers?

Accepted Answer

A) Sherman Antitrust Act 
B) Robinson-Patman Act 
C) Lanham Trademark Act 
D) Federal Trade Commission Act 
E) Wheeler-Lea Act 
A) Sherman Antitrust Act 
B) Robinson-Patman Act 
C) Lanham Trademark Act 
D) Federal Trade Commission Act 
E) Wheeler-Lea Act

Which of the following is most likely to have an inelastic demand curve?

Marketers have more difficulty adjusting their prices than they do any other marketing mix variable.

Ideally,pricing decisions have little relation to a firm's marketing objectives.

French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night.This is an indication that suites at this hotel are apparently an example of a(n)____ product.

Price is

Marketers should set prices consistent with marketing goals,not with the corporate mission.

Monopolies usually keep their prices at a level that generate a reasonable,but not excessive,return primarily because

Which of the following acts does not directly affect pricing decisions?

The purpose of the pricing concept is to quantify and express the value of items in a market exchange.

Factors affecting pricing decisions can include demand,distribution,and the way in which the product is promoted.

How would pricing decisions differ for a business in an oligopolistic market structure as opposed to a monopolistic market structure?

Profit margins for marketing channel members must be considered when determining the price of a product.

To maintain market share and revenue in an increasingly price-sensitive market,companies have focused on quality,used labor-saving technologies,and used efficient manufacturing processes.These tactics have provided gains in productivity that have translated into ____ for the consumer.

What a price means or what it communicates to customers is called

Which of the following statements about price elasticity is false?

A concession in price in business markets to achieve a desired goal is called a(n)

Channel member expectations play no part in a firm's pricing decisions.

Which of the following prohibits price discrimination that lessens competition among wholesalers and retailers?

An Overview of Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

Marketing Research and Information Systems

Target Markets: Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product Concepts

Developing and Managing Products

Services Marketing

Branding and Packaging

Marketing Channels and Supply-Chain Management

Retailing, direct Marketing, and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Setting Prices

Filters

Exam 20: Pricing Concepts

Which of the following is most likely to have an inelastic demand curve?

Marketers have more difficulty adjusting their prices than they do any other marketing mix variable.

Ideally,pricing decisions have little relation to a firm's marketing objectives.

French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night.This is an indication that suites at this hotel are apparently an example of a(n)____ product.

Price is

Marketers should set prices consistent with marketing goals,not with the corporate mission.

Monopolies usually keep their prices at a level that generate a reasonable,but not excessive,return primarily because

Which of the following acts does not directly affect pricing decisions?

The purpose of the pricing concept is to quantify and express the value of items in a market exchange.

Factors affecting pricing decisions can include demand,distribution,and the way in which the product is promoted.

How would pricing decisions differ for a business in an oligopolistic market structure as opposed to a monopolistic market structure?

Profit margins for marketing channel members must be considered when determining the price of a product.

To maintain market share and revenue in an increasingly price-sensitive market,companies have focused on quality,used labor-saving technologies,and used efficient manufacturing processes.These tactics have provided gains in productivity that have translated into ____ for the consumer.

What a price means or what it communicates to customers is called

Which of the following statements about price elasticity is false?

A concession in price in business markets to achieve a desired goal is called a(n)

Channel member expectations play no part in a firm's pricing decisions.

Which of the following prohibits price discrimination that lessens competition among wholesalers and retailers?

An Overview of Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

Marketing Research and Information Systems

Target Markets: Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product Concepts

Developing and Managing Products

Services Marketing

Branding and Packaging

Marketing Channels and Supply-Chain Management

Retailing, direct Marketing, and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Setting Prices

Filters