Question 1

The owner of Big Bike Motorcycles is opening a new retail location.Which of the following is most likely to be a fixed cost for Big Bike Motorcycles?

Accepted Answer

A) Retail personnel salaries 
B) Advertising on Facebook 
C) Building Rent 
D) Electricity 
E) Transportation of sold bikes 
A) Retail personnel salaries 
B) Advertising on Facebook 
C) Building Rent 
D) Electricity 
E) Transportation of sold bikes

Question 2

Which of the following is not a method used to determine transfer prices?

Accepted Answer

A) Discounted standard cost 
B) Actual full cost 
C) Standard full cost 
D) Cost plus investment 
E) Market-based cost 
A) Discounted standard cost 
B) Actual full cost 
C) Standard full cost 
D) Cost plus investment 
E) Market-based cost

Question 3

Fixed costs vary with the number of units produced or sold.

Accepted Answer

A) True 
 B)False

Question 4

What type of discount is given to a business purchaser for performing activities such as transporting,storing,and selling?

Accepted Answer

A) Quantity 
B) Cash 
C) Geographic 
D) Service 
E) Trade 
A) Quantity 
B) Cash 
C) Geographic 
D) Service 
E) Trade

Question 5

The legality of uniform geographic pricing has been challenged,and so its use has been abandoned.

Accepted Answer

A) True 
 B)False

Question 6

Reductions for transportation and other costs related to the physical distance between buyer and seller are known as

Accepted Answer

A) base-point pricing. 
B) freight absorption pricing. 
C) price zoning. 
D) location pricing. 
E) geographic pricing. 
A) base-point pricing. 
B) freight absorption pricing. 
C) price zoning. 
D) location pricing. 
E) geographic pricing.

Question 7

If Colgate-Palmolive wants to maximize profit on its toothpaste,it should operate at the point where

Accepted Answer

A) total costs and total revenues are equal. 
B) marginal revenue is at its highest level. 
C) marginal revenue exceeds marginal cost. 
D) marginal revenue equals marginal cost. 
E) demand is most elastic. 
A) total costs and total revenues are equal. 
B) marginal revenue is at its highest level. 
C) marginal revenue exceeds marginal cost. 
D) marginal revenue equals marginal cost. 
E) demand is most elastic.

Question 8

Nonprice competition does not permit unique product features,higher product quality,and customer service.

Accepted Answer

A) True 
 B)False

Question 9

When a customer is considering the purchase of a product in a less-familiar product category,that individual is likely to rely more heavily on

Accepted Answer

A) internal reference prices. 
B) symbol prices. 
C) high value products. 
D) discounted reference prices. 
E) external reference prices. 
A) internal reference prices. 
B) symbol prices. 
C) high value products. 
D) discounted reference prices. 
E) external reference prices.

Question 10

For most products,the quantity demanded goes up as the price goes down.

Accepted Answer

A) True 
 B)False

Question 11

The idea behind prestige demand is that many prestige products seem to sell better at a high price than at a low price.

Accepted Answer

A) True 
 B)False

Question 12

Scenario 20.2
Use the following to answer the questions.
The BASF Chemical Company in Germany has developed a new rubberized coating.The product has an application for cell phones and other hand-held electronic devices that gives them protection from falls and scratches.BASF plans to market the product directly to businesses that manufacture the casings for these types of products.BASF currently uses a system of salespeople headquartered in Germany,while its primary business customers are in China.
-Refer to Scenario 20.2.BASF is considering the problem of actual distance in delivering its product from the plant in Germany to some of its customers in China.Which pricing strategy would help overcome this problem?

Accepted Answer

A) Geographic 
B) Transfer 
C) Commercial 
D) Transit 
E) Factory 
A) Geographic 
B) Transfer 
C) Commercial 
D) Transit 
E) Factory

Question 13

Changes in buyers' attitudes,other components of the marketing mix,and uncontrollable environmental factors can influence demand.

Accepted Answer

A) True 
 B)False

Question 14

In conducting an assessment of her accounting firm,Paige discovers the following annual results: average charge per customer = $250;rent = $12,000;total billings = $150,000;employee compensation and benefits = $60,000;and other costs = $110,000.Given these results,Paige's profits would equal

Accepted Answer

A) a loss of $20,000. 
B) a loss of $32,000. 
C) $28,000. 
D) $40,000. 
E) $222,000. 
A) a loss of $20,000. 
B) a loss of $32,000. 
C) $28,000. 
D) $40,000. 
E) $222,000.

Question 15

What do all of the following have in common: tuition,fee,premium,retainer,dues?

Accepted Answer

A) They are all usually paid in cash. 
B) They are forms of exchange similar to,but not identical with,money. 
C) They are forms of exchange similar to,but not identical with,barter. 
D) They are different terms for the concept of price. 
E) They have nothing in common. 
A) They are all usually paid in cash. 
B) They are forms of exchange similar to,but not identical with,money. 
C) They are forms of exchange similar to,but not identical with,barter. 
D) They are different terms for the concept of price. 
E) They have nothing in common.

Question 16

Mars Petcare is one of the world's largest petfood manufacturers.If the strategic goal for Mars Petcare in the coming year was to ___________ in North America,it should use temporary price reductions.

Accepted Answer

A) increase the number of competitors. 
B) gain market share. 
C) decrease volume sold. 
D) increase revenue per item. 
E) decrease the number of competitors. 
A) increase the number of competitors. 
B) gain market share. 
C) decrease volume sold. 
D) increase revenue per item. 
E) decrease the number of competitors.

Question 17

When marketers emphasize price as an issue and match or beat the prices of other companies,they are using

Accepted Answer

A) price competition. 
B) nonprice competition. 
C) comparative pricing strategies. 
D) demand-based pricing. 
E) supply-based pricing. 
A) price competition. 
B) nonprice competition. 
C) comparative pricing strategies. 
D) demand-based pricing. 
E) supply-based pricing.

Question 18

Comparison of various prices and various breakeven points will tell the marketer exactly what price to charge.

Accepted Answer

A) True 
 B)False

Question 19

The types of prices that appear most often in ads are ___;while the types of prices that occur least often in ads are ____ prices.

Accepted Answer

A) reference;comparison 
B) discount;cost-plus 
C) bargain;premium 
D) comparison;cost-plus 
E) sale;reference 
A) reference;comparison 
B) discount;cost-plus 
C) bargain;premium 
D) comparison;cost-plus 
E) sale;reference

Question 20

Marginal revenue is the change in total revenue that occurs when a firm sells an additional unit of product.

Accepted Answer

A) True 
 B)False

The owner of Big Bike Motorcycles is opening a new retail location.Which of the following is most likely to be a fixed cost for Big Bike Motorcycles?

Which of the following is not a method used to determine transfer prices?

Fixed costs vary with the number of units produced or sold.

What type of discount is given to a business purchaser for performing activities such as transporting,storing,and selling?

The legality of uniform geographic pricing has been challenged,and so its use has been abandoned.

Reductions for transportation and other costs related to the physical distance between buyer and seller are known as

If Colgate-Palmolive wants to maximize profit on its toothpaste,it should operate at the point where

Nonprice competition does not permit unique product features,higher product quality,and customer service.

When a customer is considering the purchase of a product in a less-familiar product category,that individual is likely to rely more heavily on

For most products,the quantity demanded goes up as the price goes down.

The idea behind prestige demand is that many prestige products seem to sell better at a high price than at a low price.

Changes in buyers' attitudes,other components of the marketing mix,and uncontrollable environmental factors can influence demand.

In conducting an assessment of her accounting firm,Paige discovers the following annual results: average charge per customer = $250;rent = $12,000;total billings = $150,000;employee compensation and benefits = $60,000;and other costs = $110,000.Given these results,Paige's profits would equal

What do all of the following have in common: tuition,fee,premium,retainer,dues?

Mars Petcare is one of the world's largest petfood manufacturers.If the strategic goal for Mars Petcare in the coming year was to ___________ in North America,it should use temporary price reductions.

When marketers emphasize price as an issue and match or beat the prices of other companies,they are using

Comparison of various prices and various breakeven points will tell the marketer exactly what price to charge.

The types of prices that appear most often in ads are _;while the types of prices that occur least often in ads are __ prices.

Marginal revenue is the change in total revenue that occurs when a firm sells an additional unit of product.

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

The owner of Big Bike Motorcycles is opening a new retail location.Which of the following is most likely to be a fixed cost for Big Bike Motorcycles?

Which of the following is not a method used to determine transfer prices?

Fixed costs vary with the number of units produced or sold.

What type of discount is given to a business purchaser for performing activities such as transporting,storing,and selling?

The legality of uniform geographic pricing has been challenged,and so its use has been abandoned.

Reductions for transportation and other costs related to the physical distance between buyer and seller are known as

If Colgate-Palmolive wants to maximize profit on its toothpaste,it should operate at the point where

Nonprice competition does not permit unique product features,higher product quality,and customer service.

When a customer is considering the purchase of a product in a less-familiar product category,that individual is likely to rely more heavily on

For most products,the quantity demanded goes up as the price goes down.

The idea behind prestige demand is that many prestige products seem to sell better at a high price than at a low price.

Changes in buyers' attitudes,other components of the marketing mix,and uncontrollable environmental factors can influence demand.

In conducting an assessment of her accounting firm,Paige discovers the following annual results: average charge per customer = $250;rent = $12,000;total billings = $150,000;employee compensation and benefits = $60,000;and other costs = $110,000.Given these results,Paige's profits would equal

What do all of the following have in common: tuition,fee,premium,retainer,dues?

Mars Petcare is one of the world's largest petfood manufacturers.If the strategic goal for Mars Petcare in the coming year was to ___________ in North America,it should use temporary price reductions.

When marketers emphasize price as an issue and match or beat the prices of other companies,they are using

Comparison of various prices and various breakeven points will tell the marketer exactly what price to charge.

The types of prices that appear most often in ads are ___;while the types of prices that occur least often in ads are ____ prices.

Marginal revenue is the change in total revenue that occurs when a firm sells an additional unit of product.

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

The types of prices that appear most often in ads are _;while the types of prices that occur least often in ads are __ prices.