Question 1

Which factor is least likely to affect pricing decisions?

Accepted Answer

A) Competitive prices 
B) Legal and regulatory issues 
C) Organizational and marketing objectives 
D) Customers' interpretation and response 
E) Shifting stock values 
A) Competitive prices 
B) Legal and regulatory issues 
C) Organizational and marketing objectives 
D) Customers' interpretation and response 
E) Shifting stock values

Question 2

Marginal analysis involves examining

Accepted Answer

A) what happens to a firm's costs and revenues when production is changed by one unit. 
B) the extra revenue produced by the sale of one more product. 
C) the extra cost incurred by the production of one more unit. 
D) the difference between marginal revenue and total revenue. 
E) the difference between marginal cost and total cost. 
A) what happens to a firm's costs and revenues when production is changed by one unit. 
B) the extra revenue produced by the sale of one more product. 
C) the extra cost incurred by the production of one more unit. 
D) the difference between marginal revenue and total revenue. 
E) the difference between marginal cost and total cost.

Question 3

The degree to which the price of a product enhances a customer's satisfaction with the purchase experience and with the product after the purchase is part of their

Accepted Answer

A) response. 
B) reference. 
C) interpretation. 
D) price satisfaction. 
E) price-consciousness. 
A) response. 
B) reference. 
C) interpretation. 
D) price satisfaction. 
E) price-consciousness.

Question 4

Duds and Suds is a bar with a country and western atmosphere.In addition to the bar,Duds and Suds has a gift shop that sells western clothing with its logo.Norman is the owner of the business and has recently enacted temporary price reductions through clearance sales,discounts,and nightly drink specials.What is Norman most likely trying to do?

Accepted Answer

A) raise cash quickly. 
B) decrease costs. 
C) increase profitability. 
D) run off the competition. 
E) create a value image. 
A) raise cash quickly. 
B) decrease costs. 
C) increase profitability. 
D) run off the competition. 
E) create a value image.

Question 5

The fact that a gas station in Texas pays less for fuel than a gas station in Maine from a producer in Louisiana suggests that refineries are using which of the following pricing methods?

Accepted Answer

A) Price differentiation 
B) Base-point pricing 
C) Freight absorption pricing 
D) Transfer pricing 
E) Zone pricing 
A) Price differentiation 
B) Base-point pricing 
C) Freight absorption pricing 
D) Transfer pricing 
E) Zone pricing

Question 6

Marketers generally view ____ as the minimum price a product can be sold for.

Accepted Answer

A) fixed costs 
B) variable costs 
C) profits 
D) costs 
E) moderate losses 
A) fixed costs 
B) variable costs 
C) profits 
D) costs 
E) moderate losses

Question 7

The perception of price depends on a

Accepted Answer

A) product's actual price and consumers' expectations regarding price. 
B) consumer's analysis of competitive prices. 
C) consumer's reference price. 
D) consumer's expectation of price. 
E) product's actual price in comparison with the manufacturer's suggested price. 
A) product's actual price and consumers' expectations regarding price. 
B) consumer's analysis of competitive prices. 
C) consumer's reference price. 
D) consumer's expectation of price. 
E) product's actual price in comparison with the manufacturer's suggested price.

Question 8

Which of the following products is most likely to involve personal selling?

Accepted Answer

A) Blenders at a department store 
B) Riding lawn mowers 
C) Kindle Fire 
D) Picture frames at a hobby supply store 
E) Footballs at a sporting goods store 
A) Blenders at a department store 
B) Riding lawn mowers 
C) Kindle Fire 
D) Picture frames at a hobby supply store 
E) Footballs at a sporting goods store

Question 9

Nicole is out shopping with her friends for the day.While evaluating a decision to purchase a handbag,she says,"People notice when you buy the most expensive brand of a product." Nicole is most likely a _____ consumer.

Accepted Answer

A) price-conscious 
B) quality-conscious 
C) value-conscious 
D) socially conscious 
E) prestige-sensitive 
A) price-conscious 
B) quality-conscious 
C) value-conscious 
D) socially conscious 
E) prestige-sensitive

Question 10

To gain market share,when Hyundai first entered the U.S.car market it did so with a comparatively low pricing strategy.One of the negative side effects of making this pricing decision is

Accepted Answer

A) a negative impact on consumers' perceptions of quality. 
B) difficulty raising the prices later. 
C) a high return on investment level affecting tax balances owed. 
D) poor survival chances. 
E) higher developmental costs. 
A) a negative impact on consumers' perceptions of quality. 
B) difficulty raising the prices later. 
C) a high return on investment level affecting tax balances owed. 
D) poor survival chances. 
E) higher developmental costs.

Question 11

Demand is best determined by a top management committee.

Accepted Answer

A) True 
 B)False

Question 12

A measure of sensitivity of demand in relation to changes in price is

Accepted Answer

A) a demand curve. 
B) a prestige graph. 
C) marginal analysis. 
D) price elasticity of demand. 
E) quantity elasticity. 
A) a demand curve. 
B) a prestige graph. 
C) marginal analysis. 
D) price elasticity of demand. 
E) quantity elasticity.

Question 13

If demand is elastic,a change in price causes a parallel change in total revenue.

Accepted Answer

A) True 
 B)False

Question 14

A graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a

Accepted Answer

A) price graph. 
B) supply curve. 
C) price/quantity graph. 
D) marginal revenue curve. 
E) demand curve. 
A) price graph. 
B) supply curve. 
C) price/quantity graph. 
D) marginal revenue curve. 
E) demand curve.

Question 15

At the breakeven point,

Accepted Answer

A) the money a company brings in from selling products equals the amount spent producing the products. 
B) the total fixed costs are exactly equal to the total variable costs. 
C) profits are exactly equal to the difference between revenue and total variable costs. 
D) the marginal revenue of a product is exactly equal to the marginal cost of producing one more unit. 
E) the marginal cost curve and the average cost curve will be identical for a particular product. 
A) the money a company brings in from selling products equals the amount spent producing the products. 
B) the total fixed costs are exactly equal to the total variable costs. 
C) profits are exactly equal to the difference between revenue and total variable costs. 
D) the marginal revenue of a product is exactly equal to the marginal cost of producing one more unit. 
E) the marginal cost curve and the average cost curve will be identical for a particular product.

Question 16

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.If BASF were to employ pricing that includes the price at the factory plus freight charges from a chosen point nearest the buyer,this would be an example of ____ pricing.

Accepted Answer

A) factory plus 
B) dispersion 
C) base-point 
D) freight absorption 
E) uniform geographic 
A) factory plus 
B) dispersion 
C) base-point 
D) freight absorption 
E) uniform geographic

Question 17

The amount of profit a channel member expects depends on

Accepted Answer

A) the amount of discounts for large orders provided by the producers. 
B) the number of channel support activities provided by the producers. 
C) what the intermediary could earn if it were handling a competing product instead. 
D) the type of distribution channels involved. 
E) the amount of effort required to carry the product. 
A) the amount of discounts for large orders provided by the producers. 
B) the number of channel support activities provided by the producers. 
C) what the intermediary could earn if it were handling a competing product instead. 
D) the type of distribution channels involved. 
E) the amount of effort required to carry the product.

Question 18

Total costs are influenced by quantities sold.

Accepted Answer

A) True 
 B)False

Question 19

When Cadillac buys headlights from Delco (both of which are divisions of General Motors),____ pricing occurs.

Accepted Answer

A) base-point 
B) zone 
C) transfer 
D) uniform geographic 
E) matrix 
A) base-point 
B) zone 
C) transfer 
D) uniform geographic 
E) matrix

Question 20

Product demand usually becomes more elastic over time because more substitutes are found.

Accepted Answer

A) True 
 B)False

Which factor is least likely to affect pricing decisions?

Marginal analysis involves examining

The degree to which the price of a product enhances a customer's satisfaction with the purchase experience and with the product after the purchase is part of their

The fact that a gas station in Texas pays less for fuel than a gas station in Maine from a producer in Louisiana suggests that refineries are using which of the following pricing methods?

Marketers generally view ____ as the minimum price a product can be sold for.

The perception of price depends on a

Which of the following products is most likely to involve personal selling?

Nicole is out shopping with her friends for the day.While evaluating a decision to purchase a handbag,she says,"People notice when you buy the most expensive brand of a product." Nicole is most likely a _____ consumer.

To gain market share,when Hyundai first entered the U.S.car market it did so with a comparatively low pricing strategy.One of the negative side effects of making this pricing decision is

Demand is best determined by a top management committee.

A measure of sensitivity of demand in relation to changes in price is

If demand is elastic,a change in price causes a parallel change in total revenue.

A graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a

At the breakeven point,

The amount of profit a channel member expects depends on

Total costs are influenced by quantities sold.

When Cadillac buys headlights from Delco (both of which are divisions of General Motors),____ pricing occurs.

Product demand usually becomes more elastic over time because more substitutes are found.

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

Which factor is least likely to affect pricing decisions?

Marginal analysis involves examining

The degree to which the price of a product enhances a customer's satisfaction with the purchase experience and with the product after the purchase is part of their

The fact that a gas station in Texas pays less for fuel than a gas station in Maine from a producer in Louisiana suggests that refineries are using which of the following pricing methods?

Marketers generally view ____ as the minimum price a product can be sold for.

The perception of price depends on a

Which of the following products is most likely to involve personal selling?

Nicole is out shopping with her friends for the day.While evaluating a decision to purchase a handbag,she says,"People notice when you buy the most expensive brand of a product." Nicole is most likely a _____ consumer.

To gain market share,when Hyundai first entered the U.S.car market it did so with a comparatively low pricing strategy.One of the negative side effects of making this pricing decision is

Demand is best determined by a top management committee.

A measure of sensitivity of demand in relation to changes in price is

If demand is elastic,a change in price causes a parallel change in total revenue.

A graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a

At the breakeven point,

The amount of profit a channel member expects depends on

Total costs are influenced by quantities sold.

When Cadillac buys headlights from Delco (both of which are divisions of General Motors),____ pricing occurs.

Product demand usually becomes more elastic over time because more substitutes are found.

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