Question 1

A firm can survive in the long run only if its products are sold below cost.

Accepted Answer

A) True 
 B)False

Question 2

A product under nonprice competition would most likely not succeed in the market if

Accepted Answer

A) a new advertising campaign is established for it. 
B) it is easy to duplicate. 
C) it is packaged differently from similar products. 
D) it is priced near the competitors' price. 
E) its quality has been upgraded. 
A) a new advertising campaign is established for it. 
B) it is easy to duplicate. 
C) it is packaged differently from similar products. 
D) it is priced near the competitors' price. 
E) its quality has been upgraded.

Question 3

Laura Spangler,of North Central Novelties,reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers.This is an example of a ____ discount.

Accepted Answer

A) quantity 
B) cash 
C) seasonal 
D) trade 
E) complementary 
A) quantity 
B) cash 
C) seasonal 
D) trade 
E) complementary

Question 4

Brand uniqueness is not important in nonprice competition.

Accepted Answer

A) True 
 B)False

Question 5

The Highland Racquet Club found that with annual fixed costs of $60,000,its breakeven point is 2,000 members when the membership charge is $60 per person per year.What is the variable cost per person for Highland?

Accepted Answer

A) $45 
B) $50 
C) $30 
D) $25 
E) $40 
A) $45 
B) $50 
C) $30 
D) $25 
E) $40

Question 6

For most products,a(n)____ relationship exists between the price of a particular product and the quantity demanded.

Accepted Answer

A) inelastic 
B) inverse 
C) positive 
D) unknown 
E) elastic 
A) inelastic 
B) inverse 
C) positive 
D) unknown 
E) elastic

Question 7

If Pacific Power and Light increased its rates by 10 percent and experienced a 2 percent reduction in the demand for power,the demand would be

Accepted Answer

A) elastic. 
B) minimal. 
C) minor elasticity. 
D) variable. 
E) inelastic. 
A) elastic. 
B) minimal. 
C) minor elasticity. 
D) variable. 
E) inelastic.

Question 8

In setting price,it is wise to analyze competitors' prices.

Accepted Answer

A) True 
 B)False

Question 9

Pricing decisions can be based on determining whether the demand for a product is price elastic or price inelastic.

Accepted Answer

A) True 
 B)False

Question 10

Suppose that the frozen foods division of Swanson purchases food trays and boxes from the packaging division.The form of pricing used to charge the frozen foods division is called

Accepted Answer

A) zone pricing. 
B) base-point pricing. 
C) business-unit pricing. 
D) transfer pricing. 
E) price discrimination. 
A) zone pricing. 
B) base-point pricing. 
C) business-unit pricing. 
D) transfer pricing. 
E) price discrimination.

Question 11

Price should be defined in terms of money only.

Accepted Answer

A) True 
 B)False

Question 12

Barter is the oldest form of exchange.

Accepted Answer

A) True 
 B)False

Question 13

Price is considered to be the variable in the marketing mix that is

Accepted Answer

A) Least flexible. 
B) Most flexible. 
C) Most difficult. 
D) First to be decided. 
E) Last to be decided. 
A) Least flexible. 
B) Most flexible. 
C) Most difficult. 
D) First to be decided. 
E) Last to be decided.

Question 14

Which of the following products is most likely to have an inverted C-shaped demand curve?

Accepted Answer

A) Visit to the Dentist 
B) Eternity perfume 
C) Starbucks coffee 
D) Pillsbury cake mix 
E) Ford Escape 
A) Visit to the Dentist 
B) Eternity perfume 
C) Starbucks coffee 
D) Pillsbury cake mix 
E) Ford Escape

Question 15

Marketers have no flexibility in setting prices under conditions of

Accepted Answer

A) a monopoly. 
B) an oligopoly. 
C) perfect competition. 
D) monopolistic competition. 
E) no competition. 
A) a monopoly. 
B) an oligopoly. 
C) perfect competition. 
D) monopolistic competition. 
E) no competition.

A firm can survive in the long run only if its products are sold below cost.

A product under nonprice competition would most likely not succeed in the market if

Laura Spangler,of North Central Novelties,reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers.This is an example of a ____ discount.

Brand uniqueness is not important in nonprice competition.

The Highland Racquet Club found that with annual fixed costs of $60,000,its breakeven point is 2,000 members when the membership charge is $60 per person per year.What is the variable cost per person for Highland?

For most products,a(n)____ relationship exists between the price of a particular product and the quantity demanded.

If Pacific Power and Light increased its rates by 10 percent and experienced a 2 percent reduction in the demand for power,the demand would be

In setting price,it is wise to analyze competitors' prices.

Pricing decisions can be based on determining whether the demand for a product is price elastic or price inelastic.

Suppose that the frozen foods division of Swanson purchases food trays and boxes from the packaging division.The form of pricing used to charge the frozen foods division is called

Price should be defined in terms of money only.

Barter is the oldest form of exchange.

Price is considered to be the variable in the marketing mix that is

Which of the following products is most likely to have an inverted C-shaped demand curve?

Marketers have no flexibility in setting prices under conditions of

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

A firm can survive in the long run only if its products are sold below cost.

A product under nonprice competition would most likely not succeed in the market if

Laura Spangler,of North Central Novelties,reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers.This is an example of a ____ discount.

Brand uniqueness is not important in nonprice competition.

The Highland Racquet Club found that with annual fixed costs of $60,000,its breakeven point is 2,000 members when the membership charge is $60 per person per year.What is the variable cost per person for Highland?

For most products,a(n)____ relationship exists between the price of a particular product and the quantity demanded.

If Pacific Power and Light increased its rates by 10 percent and experienced a 2 percent reduction in the demand for power,the demand would be

In setting price,it is wise to analyze competitors' prices.

Pricing decisions can be based on determining whether the demand for a product is price elastic or price inelastic.

Suppose that the frozen foods division of Swanson purchases food trays and boxes from the packaging division.The form of pricing used to charge the frozen foods division is called

Price should be defined in terms of money only.

Barter is the oldest form of exchange.

Price is considered to be the variable in the marketing mix that is

Which of the following products is most likely to have an inverted C-shaped demand curve?

Marketers have no flexibility in setting prices under conditions of

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