Question 1

Vanessa is shopping for a new pair of athletic shoes.Since she is concerned about both the price and the quality aspects of a product,Vanessa is most likely a ___ consumer.

Accepted Answer

A) Price-conscious 
B) Prestige-sensitive 
C) Value-conscious 
D) Price-conscious and prestige-sensitive 
E) Quality-conscious 
A) Price-conscious 
B) Prestige-sensitive 
C) Value-conscious 
D) Price-conscious and prestige-sensitive 
E) Quality-conscious

Question 2

Noncumulative discounts are one-time reductions in prices based on the number of units purchased,the dollar value of the order,or the product mix purchased.

Accepted Answer

A) True 
 B)False

Question 3

Sellers using nonprice competition are not concerned with prices charged by competitors.

Accepted Answer

A) True 
 B)False

Question 4

When marginal cost is equal to marginal revenue,the firm should

Accepted Answer

A) produce more to increase profits. 
B) produce less to decrease total costs. 
C) stop producing additional units to maximize profits. 
D) provide discounts to encourage purchases. 
E) intensify distribution to increase sales. 
A) produce more to increase profits. 
B) produce less to decrease total costs. 
C) stop producing additional units to maximize profits. 
D) provide discounts to encourage purchases. 
E) intensify distribution to increase sales.

Question 5

Markum Industries determines that for its air compressors the following results are achieved at a price of $250: total costs = $250,000;variable costs per unit = $100;fixed costs = $175,000.Given these figures,Markum would break even at ____ units.

Accepted Answer

A) 1,167 
B) 1,000 
C) 1,750 
D) 2,500 
E) 700 
A) 1,167 
B) 1,000 
C) 1,750 
D) 2,500 
E) 700

Question 6

Jared is developing a business plan for a new type of bicycle helmet.He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product.Jared is interested in finding the

Accepted Answer

A) elasticity of demand. 
B) breakeven point. 
C) variable costs. 
D) price elasticity. 
E) the sum of fixed costs. 
A) elasticity of demand. 
B) breakeven point. 
C) variable costs. 
D) price elasticity. 
E) the sum of fixed costs.

Question 7

If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges,the retailer is paying a(n)____ price.

Accepted Answer

A) F.O.B.destination 
B) F.O.B.factory 
C) transfer 
D) postage-stamp 
E) base-point 
A) F.O.B.destination 
B) F.O.B.factory 
C) transfer 
D) postage-stamp 
E) base-point

Question 8

What are the components of total cost? Give specific examples.

Accepted Answer

The components of total cost include bot

Question 9

Nonprice competition allows a company to increase its brand's unit sales through means other than changing the brand's price.

Accepted Answer

A) True 
 B)False

Question 10

Customers always interpret a higher price to mean higher quality.

Accepted Answer

A) True 
 B)False

Question 11

A price developed in the consumer's mind through experience with the product is called a(n)

Accepted Answer

A) external reference price. 
B) value-price guideline. 
C) frame of reference. 
D) internalized price. 
E) internal reference price. 
A) external reference price. 
B) value-price guideline. 
C) frame of reference. 
D) internalized price. 
E) internal reference price.

Question 12

To determine the breakeven point in units,divide the fixed costs by

Accepted Answer

A) total costs. 
B) variable costs time price. 
C) price minus variable costs. 
D) price per unit. 
E) total revenue minus fixed costs. 
A) total costs. 
B) variable costs time price. 
C) price minus variable costs. 
D) price per unit. 
E) total revenue minus fixed costs.

Question 13

Which of the following is not a discount provided to business customers?

Accepted Answer

A) Trade 
B) Cumulative 
C) Cash 
D) Seasonal 
E) Differentiated 
A) Trade 
B) Cumulative 
C) Cash 
D) Seasonal 
E) Differentiated

Question 14

Buyers who focus on purchasing products that signify prominence and status are

Accepted Answer

A) value-conscious consumers. 
B) price-conscious consumers. 
C) socially elite buyers. 
D) prestige-sensitive buyers. 
E) brand aware consumers. 
A) value-conscious consumers. 
B) price-conscious consumers. 
C) socially elite buyers. 
D) prestige-sensitive buyers. 
E) brand aware consumers.

Question 15

Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing

Accepted Answer

A) product competition. 
B) nonprice competition. 
C) brand differentiation. 
D) price competition. 
E) competitor differentiation. 
A) product competition. 
B) nonprice competition. 
C) brand differentiation. 
D) price competition. 
E) competitor differentiation.

Question 16

The more experience the customer has with a product,the more he or she relies on external reference prices.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not a major factor for firms making price decisions?

Accepted Answer

A) Costs 
B) Competition 
C) Previous sales 
D) Channel member expectations 
E) Legal and regulatory issues 
A) Costs 
B) Competition 
C) Previous sales 
D) Channel member expectations 
E) Legal and regulatory issues

Question 18

Ethan is an operations unit manager for Morningstar Foods.So far in developing his monthly budget,he has identified the following costs: Overhead at $120,000;Packaging at $70,000;Advertising at $60,000;Salaries at $400,000;Food production at $90,000,and Distribution at $22,000.The fixed costs in this situation would be

Accepted Answer

A) overhead,packaging,advertising,salaries,food production,and distribution 
B) overhead,packaging,advertising,salaries,and distribution 
C) overhead,advertising,distribution,and salaries 
D) overhead,advertising,and salaries 
E) overhead 
A) overhead,packaging,advertising,salaries,food production,and distribution 
B) overhead,packaging,advertising,salaries,and distribution 
C) overhead,advertising,distribution,and salaries 
D) overhead,advertising,and salaries 
E) overhead

Question 19

If Wilson Sporting Goods faces a standard demand curve that exists for most products,as it raises the price of its tennis rackets,the

Accepted Answer

A) quantity demanded goes down. 
B) demand remains constant. 
C) quantity demanded increases. 
D) demand increases. 
E) breakeven increases. 
A) quantity demanded goes down. 
B) demand remains constant. 
C) quantity demanded increases. 
D) demand increases. 
E) breakeven increases.

Question 20

Nonprice competition emphasizes distinctive product features,service,and product quality.

Accepted Answer

A) True 
 B)False

Vanessa is shopping for a new pair of athletic shoes.Since she is concerned about both the price and the quality aspects of a product,Vanessa is most likely a ___ consumer.

Noncumulative discounts are one-time reductions in prices based on the number of units purchased,the dollar value of the order,or the product mix purchased.

Sellers using nonprice competition are not concerned with prices charged by competitors.

When marginal cost is equal to marginal revenue,the firm should

Markum Industries determines that for its air compressors the following results are achieved at a price of $250: total costs = $250,000;variable costs per unit = $100;fixed costs = $175,000.Given these figures,Markum would break even at ____ units.

Jared is developing a business plan for a new type of bicycle helmet.He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product.Jared is interested in finding the

If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges,the retailer is paying a(n)____ price.

What are the components of total cost? Give specific examples.

Nonprice competition allows a company to increase its brand's unit sales through means other than changing the brand's price.

Customers always interpret a higher price to mean higher quality.

A price developed in the consumer's mind through experience with the product is called a(n)

To determine the breakeven point in units,divide the fixed costs by

Which of the following is not a discount provided to business customers?

Buyers who focus on purchasing products that signify prominence and status are

Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing

The more experience the customer has with a product,the more he or she relies on external reference prices.

Which of the following is not a major factor for firms making price decisions?

If Wilson Sporting Goods faces a standard demand curve that exists for most products,as it raises the price of its tennis rackets,the

Nonprice competition emphasizes distinctive product features,service,and product quality.

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

Vanessa is shopping for a new pair of athletic shoes.Since she is concerned about both the price and the quality aspects of a product,Vanessa is most likely a ___ consumer.

Noncumulative discounts are one-time reductions in prices based on the number of units purchased,the dollar value of the order,or the product mix purchased.

Sellers using nonprice competition are not concerned with prices charged by competitors.

When marginal cost is equal to marginal revenue,the firm should

Markum Industries determines that for its air compressors the following results are achieved at a price of $250: total costs = $250,000;variable costs per unit = $100;fixed costs = $175,000.Given these figures,Markum would break even at ____ units.

Jared is developing a business plan for a new type of bicycle helmet.He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product.Jared is interested in finding the

If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges,the retailer is paying a(n)____ price.

What are the components of total cost? Give specific examples.

Nonprice competition allows a company to increase its brand's unit sales through means other than changing the brand's price.

Customers always interpret a higher price to mean higher quality.

A price developed in the consumer's mind through experience with the product is called a(n)

To determine the breakeven point in units,divide the fixed costs by

Which of the following is not a discount provided to business customers?

Buyers who focus on purchasing products that signify prominence and status are

Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing

The more experience the customer has with a product,the more he or she relies on external reference prices.

Which of the following is not a major factor for firms making price decisions?

If Wilson Sporting Goods faces a standard demand curve that exists for most products,as it raises the price of its tennis rackets,the

Nonprice competition emphasizes distinctive product features,service,and product quality.

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