Question 1

Price is defined as the exchange value of a good or service; value is defined solely by the tangible benefits the purchaser derives.

Accepted Answer

A) True 
 B)False

Question 2

A company's board of directors is concerned about the ROI. A profit maximization pricing strategy will be seriously considered.

Accepted Answer

A) True 
 B)False

Question 3

The objective of sales volume maximization is to

Accepted Answer

A)  pay off accumulated debts. 
B)  maximize return on investment. 
C)  recover initial capital invested. 
D)  secure high profits. 
E)  increase market share. 
A)  pay off accumulated debts. 
B)  maximize return on investment. 
C)  recover initial capital invested. 
D)  secure high profits. 
E)  increase market share.

Question 4

In a situation where a price change does not have a significant impact on the quantity sold, demand is said to be

Accepted Answer

A)  elastic. 
B)  marginal. 
C)  complementary. 
D)  inelastic. 
E)  cross-elastic. 
A)  elastic. 
B)  marginal. 
C)  complementary. 
D)  inelastic. 
E)  cross-elastic.

Question 5

Loss leaders are products that are a continual drain on a company's profits.

Accepted Answer

A) True 
 B)False

Question 6

In a business environment, the primary goal of the organization is to produce the highest possible rate of return for the owner, but not for the shareholders.

Accepted Answer

A) True 
 B)False

Question 7

Service firms that offer two-part pricing consisting of a fixed fee plus a variable usage fee are using product bundling pricing.

Accepted Answer

A) True 
 B)False

Question 8

Listing the cost per standard unit of a product to facilitate comparison shopping is

Accepted Answer

A)  promotional pricing. 
B)  psychological pricing. 
C)  standard pricing. 
D)  unit pricing. 
E)  comparison pricing. 
A)  promotional pricing. 
B)  psychological pricing. 
C)  standard pricing. 
D)  unit pricing. 
E)  comparison pricing.

Question 9

Walmart relies on price to establish and maintain its image.

Accepted Answer

A) True 
 B)False

Question 10

Of the following, which practice is more typical of manufacturers than retailers?

Accepted Answer

A)  establishing prestige pricing 
B)  setting odd-even pricing 
C)  using customary pricing 
D)  offering performance allowances 
E)  engaging in psychological pricing 
A)  establishing prestige pricing 
B)  setting odd-even pricing 
C)  using customary pricing 
D)  offering performance allowances 
E)  engaging in psychological pricing

Question 11

The federal government oversees price activity in Canada through the Competition Act.

Accepted Answer

A) True 
 B)False

Question 12

The basic law of supply and demand contends that a limited supply and high demand for a given product will lead to a ________ price.

Accepted Answer

A)  oligopolistic 
B)  elastic 
C)  high 
D)  low 
E)  pure 
A)  oligopolistic 
B)  elastic 
C)  high 
D)  low 
E)  pure

Question 13

The pricing policy that is most attractive to customers living close to the manufacturer is

Accepted Answer

A)  zone pricing. 
B)  freight absorption. 
C)  uniform delivered pricing. 
D)  FOB origin. 
E)  FOB destination. 
A)  zone pricing. 
B)  freight absorption. 
C)  uniform delivered pricing. 
D)  FOB origin. 
E)  FOB destination.

Question 14

Which pricing method is based on the expectations of customers? Explain how this is so.

Accepted Answer

Backward pricing is based on the price t

Question 15

A price-fixing strategy is required to maximize ROI.

Accepted Answer

A) True 
 B)False

Question 16

If a downtown hotel offers a 40% discount to families for weekend reservations in the winter months, a time when rooms are usually in abundant supply, that discount would be called

Accepted Answer

A)  a cash discount. 
B)  a seasonal discount. 
C)  a rebate. 
D)  a promotional allowance. 
E)  a trade allowance. 
A)  a cash discount. 
B)  a seasonal discount. 
C)  a rebate. 
D)  a promotional allowance. 
E)  a trade allowance.

Question 17

Pricing decisions are critical to the success of the marketing organization. Discuss the reasons for this by considering the perspectives of both the customer and the marketing organization.

Accepted Answer

From the marketing organization's perspe

Question 18

Lowering prices temporarily to attract customers is called

Accepted Answer

A)  promotional pricing. 
B)  prestige pricing. 
C)  occasional pricing. 
D)  temporary pricing. 
E)  spot pricing. 
A)  promotional pricing. 
B)  prestige pricing. 
C)  occasional pricing. 
D)  temporary pricing. 
E)  spot pricing.

Question 19

A company sells a product for $20.00 per unit. The fixed costs are $96,000 and each unit has a variable cost of $8.00. In order to break even, what dollar volume must the company generate?

Accepted Answer

A)  $50,000 
B)  $30,000 
C)  $720,000 
D)  $540,000 
E)  $160,000 
A)  $50,000 
B)  $30,000 
C)  $720,000 
D)  $540,000 
E)  $160,000

Question 20

A price skimming strategy would be inappropriate for a generic pharmaceutical product.

Accepted Answer

A) True 
 B)False

Price is defined as the exchange value of a good or service; value is defined solely by the tangible benefits the purchaser derives.

A company's board of directors is concerned about the ROI. A profit maximization pricing strategy will be seriously considered.

The objective of sales volume maximization is to

In a situation where a price change does not have a significant impact on the quantity sold, demand is said to be

Loss leaders are products that are a continual drain on a company's profits.

In a business environment, the primary goal of the organization is to produce the highest possible rate of return for the owner, but not for the shareholders.

Service firms that offer two-part pricing consisting of a fixed fee plus a variable usage fee are using product bundling pricing.

Listing the cost per standard unit of a product to facilitate comparison shopping is

Walmart relies on price to establish and maintain its image.

Of the following, which practice is more typical of manufacturers than retailers?

The federal government oversees price activity in Canada through the Competition Act.

The basic law of supply and demand contends that a limited supply and high demand for a given product will lead to a ________ price.

The pricing policy that is most attractive to customers living close to the manufacturer is

Which pricing method is based on the expectations of customers? Explain how this is so.

A price-fixing strategy is required to maximize ROI.

If a downtown hotel offers a 40% discount to families for weekend reservations in the winter months, a time when rooms are usually in abundant supply, that discount would be called

Pricing decisions are critical to the success of the marketing organization. Discuss the reasons for this by considering the perspectives of both the customer and the marketing organization.

Lowering prices temporarily to attract customers is called

A company sells a product for $20.00 per unit. The fixed costs are $96,000 and each unit has a variable cost of $8.00. In order to break even, what dollar volume must the company generate?

A price skimming strategy would be inappropriate for a generic pharmaceutical product.

Contemporary Marketing

The External Marketing Environment

Strategic Marketing Planning

Marketing Intelligence

Consumer Buying Behaviour

Business-To-Business Marketing and Organizational Buying Behaviour

Market Segmentation and Target Marketing

Product Strategy

Product Management

Services and Not-For-Profit Marketing

Distribution and Supply Chain Management

Retailing

IMC: Media Advertising, Social and Mobile Communications

IMC: Sales Promotion, Public Relations, Experiential Marketing, and Personal Selling

Global Marketing

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Exam 11: Pricing Decisions: Objectives, Strategies and Tactics

Price is defined as the exchange value of a good or service; value is defined solely by the tangible benefits the purchaser derives.

A company's board of directors is concerned about the ROI. A profit maximization pricing strategy will be seriously considered.

The objective of sales volume maximization is to

In a situation where a price change does not have a significant impact on the quantity sold, demand is said to be

Loss leaders are products that are a continual drain on a company's profits.

In a business environment, the primary goal of the organization is to produce the highest possible rate of return for the owner, but not for the shareholders.

Service firms that offer two-part pricing consisting of a fixed fee plus a variable usage fee are using product bundling pricing.

Listing the cost per standard unit of a product to facilitate comparison shopping is

Walmart relies on price to establish and maintain its image.

Of the following, which practice is more typical of manufacturers than retailers?

The federal government oversees price activity in Canada through the Competition Act.

The basic law of supply and demand contends that a limited supply and high demand for a given product will lead to a ________ price.

The pricing policy that is most attractive to customers living close to the manufacturer is

Which pricing method is based on the expectations of customers? Explain how this is so.

A price-fixing strategy is required to maximize ROI.

If a downtown hotel offers a 40% discount to families for weekend reservations in the winter months, a time when rooms are usually in abundant supply, that discount would be called

Pricing decisions are critical to the success of the marketing organization. Discuss the reasons for this by considering the perspectives of both the customer and the marketing organization.

Lowering prices temporarily to attract customers is called

A company sells a product for $20.00 per unit. The fixed costs are $96,000 and each unit has a variable cost of $8.00. In order to break even, what dollar volume must the company generate?

A price skimming strategy would be inappropriate for a generic pharmaceutical product.

Contemporary Marketing

The External Marketing Environment

Strategic Marketing Planning

Marketing Intelligence

Consumer Buying Behaviour

Business-To-Business Marketing and Organizational Buying Behaviour

Market Segmentation and Target Marketing

Product Strategy

Product Management

Services and Not-For-Profit Marketing

Distribution and Supply Chain Management

Retailing

IMC: Media Advertising, Social and Mobile Communications

IMC: Sales Promotion, Public Relations, Experiential Marketing, and Personal Selling

Global Marketing

Filters