Question 1

One advantage of nonprice competition is that

Accepted Answer

A) a firm can react quickly to competitive efforts. 
B) market share becomes less important. 
C) a firm can build customer loyalty. 
D) marketing efforts are completely eliminated. 
E) pricing is no longer a factor. 
A) a firm can react quickly to competitive efforts. 
B) market share becomes less important. 
C) a firm can build customer loyalty. 
D) marketing efforts are completely eliminated. 
E) pricing is no longer a factor.

Question 2

The value of an idea cannot be assessed by price.

Accepted Answer

A) True 
 B)False

Question 3

Logan is reading the online report of the tuition and fees he owes for this semester of college.Since he has signed up for online banking,he pays the amount immediately.The amount Logan just paid is considered to be

Accepted Answer

A) his expenses. 
B) his charges. 
C) his bill. 
D) the price. 
E) the exchange valuations. 
A) his expenses. 
B) his charges. 
C) his bill. 
D) the price. 
E) the exchange valuations.

Question 4

Profits for a firm are computed as follows: Profits = TR - FC.

Accepted Answer

A) True 
 B)False

Question 5

The ____ prohibits price fixing among firms in an industry.

Accepted Answer

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

Question 6

Knowing the target market's evaluation of price allows the marketer to know how much emphasis to place on price and how to price a product relative to competition.

Accepted Answer

A) True 
 B)False

Question 7

Demand depends only on the price of the product.

Accepted Answer

A) True 
 B)False

Question 8

What assumption does breakeven analysis make that limits its overall usefulness?

Accepted Answer

A) It focuses on how to achieve a price objective. 
B) It assumes a company wants to gain a certain market share. 
C) It relies on demand for a product being inelastic. 
D) It focuses only on competitive factors and not costs. 
E) It assumes demand is elastic for the product. 
A) It focuses on how to achieve a price objective. 
B) It assumes a company wants to gain a certain market share. 
C) It relies on demand for a product being inelastic. 
D) It focuses only on competitive factors and not costs. 
E) It assumes demand is elastic for the product.

Question 9

Price competition is a very flexible marketing strategy.

Accepted Answer

A) True 
 B)False

Question 10

The firm should produce the quantity at which marginal revenue and marginal cost are equal.

Accepted Answer

A) True 
 B)False

Question 11

Price is the value that is exchanged for products in a marketing transaction.

Accepted Answer

A) True 
 B)False

Question 12

If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces,the designer is offering 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 13

Ryan orders 16 dozen fishing lures from Strike Right for $375.When he gets the invoice,he is furious that $25 in freight charges has been tacked onto his bill because he thought the price included freight costs.Ryan should have been certain that the order terms were

Accepted Answer

A) F.O.B.origin. 
B) F.O.B.factory. 
C) C.O.D. 
D) 2/10,n/30. 
E) F.O.B.destination. 
A) F.O.B.origin. 
B) F.O.B.factory. 
C) C.O.D. 
D) 2/10,n/30. 
E) F.O.B.destination.

Question 14

If a firm currently produces 2,500 products per month and decides to produce 2,501,it will incur

Accepted Answer

A) more fixed costs. 
B) higher average fixed costs. 
C) fewer variable costs. 
D) a marginal cost. 
E) higher average variable costs. 
A) more fixed costs. 
B) higher average fixed costs. 
C) fewer variable costs. 
D) a marginal cost. 
E) higher average variable costs.

Question 15

What are reference prices and how do customers use them? What is the difference between internal and external reference prices?

Accepted Answer

The answer of What are reference prices and how do...

Question 16

At what point does a firm maximize profit?

Accepted Answer

A) The point at which marginal cost equals marginal revenue 
B) The point at which the firm sells its product at the highest price 
C) The breakeven point plus the adjusted marginal cost 
D) The point at which marginal profits equal marginal revenue 
E) The point at which marginal cost equals marginal profits 
A) The point at which marginal cost equals marginal revenue 
B) The point at which the firm sells its product at the highest price 
C) The breakeven point plus the adjusted marginal cost 
D) The point at which marginal profits equal marginal revenue 
E) The point at which marginal cost equals marginal profits

Question 17

Both the Federal Trade Commission Act and the Wheeler-Lea Act prohibit

Accepted Answer

A) freezing prices. 
B) independent pricing policies. 
C) deceptive pricing. 
D) price fixing. 
E) price differentials. 
A) freezing prices. 
B) independent pricing policies. 
C) deceptive pricing. 
D) price fixing. 
E) price differentials.

Question 18

A customer looking for the lowest price on a mattress without concern for the quality of the mattress or the status gained by buying and using a certain brand is a price-conscious customer.

Accepted Answer

A) True 
 B)False

Question 19

What are the implications of a downward-sloping demand curve?

Accepted Answer

The answer of What are the implications of a downward-sloping...

Question 20

Transfer pricing involves the sale of a product to another unit within the same organization.

Accepted Answer

A) True 
 B)False

Exam 20: Pricing Concepts

One advantage of nonprice competition is that

The value of an idea cannot be assessed by price.

Logan is reading the online report of the tuition and fees he owes for this semester of college.Since he has signed up for online banking,he pays the amount immediately.The amount Logan just paid is considered to be

Profits for a firm are computed as follows: Profits = TR - FC.

The ____ prohibits price fixing among firms in an industry.

Knowing the target market's evaluation of price allows the marketer to know how much emphasis to place on price and how to price a product relative to competition.

Demand depends only on the price of the product.

What assumption does breakeven analysis make that limits its overall usefulness?

Price competition is a very flexible marketing strategy.

The firm should produce the quantity at which marginal revenue and marginal cost are equal.

Price is the value that is exchanged for products in a marketing transaction.

If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces,the designer is offering a ____ discount.

Ryan orders 16 dozen fishing lures from Strike Right for $375.When he gets the invoice,he is furious that $25 in freight charges has been tacked onto his bill because he thought the price included freight costs.Ryan should have been certain that the order terms were

If a firm currently produces 2,500 products per month and decides to produce 2,501,it will incur

What are reference prices and how do customers use them? What is the difference between internal and external reference prices?

At what point does a firm maximize profit?

Both the Federal Trade Commission Act and the Wheeler-Lea Act prohibit

A customer looking for the lowest price on a mattress without concern for the quality of the mattress or the status gained by buying and using a certain brand is a price-conscious customer.

What are the implications of a downward-sloping demand curve?

Transfer pricing involves the sale of a product to another unit within the same organization.

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