Question 1

Marketing mix variables are highly interrelated.

Accepted Answer

A) True 
 B)False

Question 2

How can transfer prices be calculated? Give three alternatives.

Accepted Answer

Transfer pricing refers to the pricing o

Question 3

Lucy buys a new dress at T.J.Maxx that has a price tag with "Compare at $150.00.Our Price $89.99." This is an example of the use of

Accepted Answer

A) internal referencing. 
B) cumulative discounts. 
C) seasonal discounts. 
D) base-point pricing. 
E) an external reference price. 
A) internal referencing. 
B) cumulative discounts. 
C) seasonal discounts. 
D) base-point pricing. 
E) an external reference price.

Question 4

Nonprice competition can be used to establish brand loyalty.

Accepted Answer

A) True 
 B)False

Question 5

For most consumers,there is an assumed relationship between

Accepted Answer

A) price and quality. 
B) value and cost. 
C) internal and external reference prices. 
D) value and price consciousness. 
E) prestige prices and value. 
A) price and quality. 
B) value and cost. 
C) internal and external reference prices. 
D) value and price consciousness. 
E) prestige prices and value.

Question 6

Which of the following statements about nonprice competition is false?

Accepted Answer

A) Companies that use nonprice competition do not need to keep track of their competitor's prices. 
B) A company must be able to distinguish its brand through some unique feature in order to successfully engage in nonprice competition. 
C) A firm using nonprice competition can build loyalty to both its company and its products. 
D) When using nonprice competition,a company should promote the distinguishing characteristics of its brand. 
E) Buyers must view the distinguishing characteristics of a product offered through nonprice competition as being important. 
A) Companies that use nonprice competition do not need to keep track of their competitor's prices. 
B) A company must be able to distinguish its brand through some unique feature in order to successfully engage in nonprice competition. 
C) A firm using nonprice competition can build loyalty to both its company and its products. 
D) When using nonprice competition,a company should promote the distinguishing characteristics of its brand. 
E) Buyers must view the distinguishing characteristics of a product offered through nonprice competition as being important.

Question 7

Scenario 20.1
Use the following to answer the questions.
Concession Supply sells hotdogs,buns,and nacho ingredients to several major league ballparks across the country.Currently,Concession Supply has the following pricing information for one case of hotdogs sold at Wrigley Field: Total fixed costs = $1,200,Selling price = $16,and Variable costs = $6.
-Refer to Scenario 20.1.If Concession Supply wanted to make a profit of $800 on each case,it would need to sell ____ cases.

Accepted Answer

A) 150 
B) 300 
C) 100 
D) 75 
E) 200 
A) 150 
B) 300 
C) 100 
D) 75 
E) 200

Question 8

Roberts Electronics calculates that if it produces 15 radar detectors,its costs are $1,500,and if it produces 16 radar detectors,its costs are $1,590.In this instance,$90 is the firm's ____ cost.

Accepted Answer

A) average 
B) fixed 
C) variable 
D) marginal 
E) average variable 
A) average 
B) fixed 
C) variable 
D) marginal 
E) average variable

Question 9

Price is a crucial marketing mix component.

Accepted Answer

A) True 
 B)False

Question 10

Premium-priced products are usually marketed through

Accepted Answer

A) complex marketing channels. 
B) intensive or selective distribution. 
C) exclusive or intensive distribution. 
D) exclusive distribution only. 
E) selective or exclusive distribution. 
A) complex marketing channels. 
B) intensive or selective distribution. 
C) exclusive or intensive distribution. 
D) exclusive distribution only. 
E) selective or exclusive distribution.

Question 11

In the long run,the J.F.Smucker Company must view ____ as the absolute lowest price for its Jif brand peanut butter.

Accepted Answer

A) a 10 percent return on investment 
B) product development costs 
C) total costs 
D) advertising expenditures 
E) Nestlé's prices 
A) a 10 percent return on investment 
B) product development costs 
C) total costs 
D) advertising expenditures 
E) Nestlé's prices

Question 12

A company trying to position itself as value oriented should not

Accepted Answer

A) set prices that are reasonable relative to product quality. 
B) use premium pricing for its products. 
C) set prices similar to those of its competitors. 
D) use any advertising for its products. 
E) consider costs when determining the price of products. 
A) set prices that are reasonable relative to product quality. 
B) use premium pricing for its products. 
C) set prices similar to those of its competitors. 
D) use any advertising for its products. 
E) consider costs when determining the price of products.

Question 13

The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line.Its basic promotional tool is the discount.These discounts offered to middlemen for performing certain channel activities are referred to as ____ discounts.

Accepted Answer

A) trade 
B) cumulative 
C) noncumulative 
D) push 
E) intermediary 
A) trade 
B) cumulative 
C) noncumulative 
D) push 
E) intermediary

Question 14

If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage,it is committing

Accepted Answer

A) price discrimination. 
B) price-consciousness. 
C) functional discounting. 
D) price competition. 
E) price fixing. 
A) price discrimination. 
B) price-consciousness. 
C) functional discounting. 
D) price competition. 
E) price fixing.

Question 15

Setting prices for business customers is very similar to setting prices for consumers.

Accepted Answer

A) True 
 B)False

Question 16

Rent is usually a fixed cost.

Accepted Answer

A) True 
 B)False

Question 17

When marketers at Consolidated Mustard Company tried to determine demand for their product,they found that at 50 cents,consumers wanted 2,000 jars;at $1.00,they wanted 6,000 jars;and at $1.50,they wanted 4,000 jars.What can Consolidated conclude?

Accepted Answer

A) Consolidated did poor market demand research. 
B) Consolidated has an elastic product. 
C) Consolidated has an inelastic product. 
D) Consolidated mustard is a prestige good. 
E) Consolidated mustard has a normal demand curve. 
A) Consolidated did poor market demand research. 
B) Consolidated has an elastic product. 
C) Consolidated has an inelastic product. 
D) Consolidated mustard is a prestige good. 
E) Consolidated mustard has a normal demand curve.

Question 18

Since Victoria's Secret has decided to use nonprice competition,it distinguishes its brand through all but which of the following?

Accepted Answer

A) distinctive product features. 
B) exceptional service. 
C) rebates. 
D) variety and selection. 
E) product quality and style. 
A) distinctive product features. 
B) exceptional service. 
C) rebates. 
D) variety and selection. 
E) product quality and style.

Question 19

Dividing the percentage change in quantity demanded by the percentage change in price gives the

Accepted Answer

A) prestige demand curve. 
B) breakeven point. 
C) marginal cost curve. 
D) price sensitivity curve. 
E) price elasticity of demand. 
A) prestige demand curve. 
B) breakeven point. 
C) marginal cost curve. 
D) price sensitivity curve. 
E) price elasticity of demand.

Question 20

What are the terms of F.O.B.pricing?

Accepted Answer

The answer of What are the terms of F.O.B.pricing?...

Marketing mix variables are highly interrelated.

How can transfer prices be calculated? Give three alternatives.

Lucy buys a new dress at T.J.Maxx that has a price tag with "Compare at $150.00.Our Price $89.99." This is an example of the use of

Nonprice competition can be used to establish brand loyalty.

For most consumers,there is an assumed relationship between

Which of the following statements about nonprice competition is false?

Roberts Electronics calculates that if it produces 15 radar detectors,its costs are $1,500,and if it produces 16 radar detectors,its costs are $1,590.In this instance,$90 is the firm's ____ cost.

Price is a crucial marketing mix component.

Premium-priced products are usually marketed through

In the long run,the J.F.Smucker Company must view ____ as the absolute lowest price for its Jif brand peanut butter.

A company trying to position itself as value oriented should not

The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line.Its basic promotional tool is the discount.These discounts offered to middlemen for performing certain channel activities are referred to as ____ discounts.

If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage,it is committing

Setting prices for business customers is very similar to setting prices for consumers.

Rent is usually a fixed cost.

When marketers at Consolidated Mustard Company tried to determine demand for their product,they found that at 50 cents,consumers wanted 2,000 jars;at $1.00,they wanted 6,000 jars;and at $1.50,they wanted 4,000 jars.What can Consolidated conclude?

Since Victoria's Secret has decided to use nonprice competition,it distinguishes its brand through all but which of the following?

Dividing the percentage change in quantity demanded by the percentage change in price gives the

What are the terms of F.O.B.pricing?

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

Marketing mix variables are highly interrelated.

How can transfer prices be calculated? Give three alternatives.

Lucy buys a new dress at T.J.Maxx that has a price tag with "Compare at $150.00.Our Price $89.99." This is an example of the use of

Nonprice competition can be used to establish brand loyalty.

For most consumers,there is an assumed relationship between

Which of the following statements about nonprice competition is false?

Roberts Electronics calculates that if it produces 15 radar detectors,its costs are $1,500,and if it produces 16 radar detectors,its costs are $1,590.In this instance,$90 is the firm's ____ cost.

Price is a crucial marketing mix component.

Premium-priced products are usually marketed through

In the long run,the J.F.Smucker Company must view ____ as the absolute lowest price for its Jif brand peanut butter.

A company trying to position itself as value oriented should not

The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line.Its basic promotional tool is the discount.These discounts offered to middlemen for performing certain channel activities are referred to as ____ discounts.

If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage,it is committing

Setting prices for business customers is very similar to setting prices for consumers.

Rent is usually a fixed cost.

When marketers at Consolidated Mustard Company tried to determine demand for their product,they found that at 50 cents,consumers wanted 2,000 jars;at $1.00,they wanted 6,000 jars;and at $1.50,they wanted 4,000 jars.What can Consolidated conclude?

Since Victoria's Secret has decided to use nonprice competition,it distinguishes its brand through all but which of the following?

Dividing the percentage change in quantity demanded by the percentage change in price gives the

What are the terms of F.O.B.pricing?

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