Question 1

Walmart is involved in "equal to competition"pricing.

Accepted Answer

A) True 
 B)False

Question 2

When an organization determines the optimum retail selling price consumers are willing to accept, it is using

Accepted Answer

A)  chain markup pricing. 
B)  channel pricing. 
C)  backward pricing. 
D)  optimum return pricing. 
E)  target pricing. 
A)  chain markup pricing. 
B)  channel pricing. 
C)  backward pricing. 
D)  optimum return pricing. 
E)  target pricing.

Question 3

The purchase of automobile fuel is an example of elastic demand.

Accepted Answer

A) True 
 B)False

Question 4

Costs that change according to the level of output are ________ costs.

Accepted Answer

A)  unit 
B)  variable 
C)  full 
D)  marginal 
E)  fixed 
A)  unit 
B)  variable 
C)  full 
D)  marginal 
E)  fixed

Question 5

The breakeven point in dollars for a company with fixed costs of $400,000, variable costs per unit of $25, and a price of $45 is $900,000.

Accepted Answer

A) True 
 B)False

Question 6

Price skimming sets a low entry price to discourage competitors from entering the market.

Accepted Answer

A) True 
 B)False

Question 7

A retailer prices a product at $699 instead of $700. This is an example of

Accepted Answer

A)  market pricing. 
B)  price skimming. 
C)  unit pricing. 
D)  price penetration. 
E)  odd-even pricing. 
A)  market pricing. 
B)  price skimming. 
C)  unit pricing. 
D)  price penetration. 
E)  odd-even pricing.

Question 8

Price lining is when retailers mark up their costs to arrive at a selling price.

Accepted Answer

A) True 
 B)False

Question 9

When faced with rising costs and declining margins, companies can increase the price or

Accepted Answer

A)  institute zone pricing. 
B)  implement cost reductions. 
C)  lower the price. 
D)  increase the supply. 
E)  abandon the brand. 
A)  institute zone pricing. 
B)  implement cost reductions. 
C)  lower the price. 
D)  increase the supply. 
E)  abandon the brand.

Question 10

Given the following, calculate the net price of the purchase by a customer who buys 1,000 cases of product and pays the supplier within 15 days of shipment. What is the total percentage discount on the sale?
- Cost of product: $75.00 per case
- Trade discount: $5.00 per case
- Quantity discount: 1.5% for each 500 cases
- Performance allowance: 5%
- Cash discount: 2/10, net 30

Accepted Answer

List Price $75.00
LESS: Trade Discount $

Question 11

If Farmer Brown has a total cost of $1 for a dozen eggs and he chooses to charge a 20% markup as profit, then he is said to have a ________ pricing strategy.

Accepted Answer

A)  backward pricing 
B)  cost-based 
C)  uniform delivered 
D)  fixed cost 
E)  rigid 
A)  backward pricing 
B)  cost-based 
C)  uniform delivered 
D)  fixed cost 
E)  rigid

Question 12

The price elasticity of demand refers to

Accepted Answer

A)  how quickly demand rebounds when a price changes. 
B)  the willingness of consumers to purchase a product in times of high supply. 
C)  the effect of a price change on the volume purchased. 
D)  the range of prices in a product line. 
E)  the fact that consumers purchase greater quantities at higher prices. 
A)  how quickly demand rebounds when a price changes. 
B)  the willingness of consumers to purchase a product in times of high supply. 
C)  the effect of a price change on the volume purchased. 
D)  the range of prices in a product line. 
E)  the fact that consumers purchase greater quantities at higher prices.

Question 13

Increasing sales volume and market share are objectives of profit maximization.

Accepted Answer

A) True 
 B)False

Question 14

Marketing managers offer cash discounts to their distributors to

Accepted Answer

A)  reduce shipping and selling costs. 
B)  reward them for loyal service. 
C)  get them to buy in larger quantities. 
D)  boost sales in slow periods. 
E)  encourage customers to pay bills promptly. 
A)  reduce shipping and selling costs. 
B)  reward them for loyal service. 
C)  get them to buy in larger quantities. 
D)  boost sales in slow periods. 
E)  encourage customers to pay bills promptly.

Question 15

A manufacturer agrees to allow a retailer to be the exclusive vendor to carry its line under the condition that it sells at the MSLP. This is illegal.

Accepted Answer

A) True 
 B)False

Question 16

Explain, using examples from two different industries, the practice of drip pricing.

Accepted Answer

This is a tactic that involves charging

Question 17

Which of the following is an intangible benefit of a pair of Adidas basketball shoes?

Accepted Answer

A)  the support of the inner sole 
B)  comfortable fit 
C)  easy-off laces 
D)  the best materials 
E)  the style and image 
A)  the support of the inner sole 
B)  comfortable fit 
C)  easy-off laces 
D)  the best materials 
E)  the style and image

Question 18

A consumer buying a new car pays a standard delivery/freight charge regardless of his or her location. This is an example of ________ pricing.

Accepted Answer

A)  flexible 
B)  FOB destination 
C)  zone 
D)  uniform delivered 
E)  FOB origin 
A)  flexible 
B)  FOB destination 
C)  zone 
D)  uniform delivered 
E)  FOB origin

Question 19

Explain why uniform delivered pricing used by automobile dealerships may cause consumer frustration.

Accepted Answer

Uniform delivered pricing involves charg

Question 20

A firm's fixed costs are $50,000 and its unit variable cost is $15.00. At a selling price of $25.00 per unit, the breakeven point is

Accepted Answer

A)  50,000 units. 
B)  125,000 units. 
C)  5,000 units. 
D)  100,000 units. 
E)  75,000 units. 
A)  50,000 units. 
B)  125,000 units. 
C)  5,000 units. 
D)  100,000 units. 
E)  75,000 units.

Walmart is involved in "equal to competition"pricing.

When an organization determines the optimum retail selling price consumers are willing to accept, it is using

The purchase of automobile fuel is an example of elastic demand.

Costs that change according to the level of output are ________ costs.

The breakeven point in dollars for a company with fixed costs of $400,000, variable costs per unit of $25, and a price of $45 is $900,000.

Price skimming sets a low entry price to discourage competitors from entering the market.

A retailer prices a product at $699 instead of $700. This is an example of

Price lining is when retailers mark up their costs to arrive at a selling price.

When faced with rising costs and declining margins, companies can increase the price or

If Farmer Brown has a total cost of $1 for a dozen eggs and he chooses to charge a 20% markup as profit, then he is said to have a ________ pricing strategy.

The price elasticity of demand refers to

Increasing sales volume and market share are objectives of profit maximization.

Marketing managers offer cash discounts to their distributors to

A manufacturer agrees to allow a retailer to be the exclusive vendor to carry its line under the condition that it sells at the MSLP. This is illegal.

Explain, using examples from two different industries, the practice of drip pricing.

Which of the following is an intangible benefit of a pair of Adidas basketball shoes?

A consumer buying a new car pays a standard delivery/freight charge regardless of his or her location. This is an example of ________ pricing.

Explain why uniform delivered pricing used by automobile dealerships may cause consumer frustration.

A firm's fixed costs are $50,000 and its unit variable cost is $15.00. At a selling price of $25.00 per unit, the breakeven point is

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

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Exam 11: Pricing Decisions: Objectives, Strategies and Tactics

Walmart is involved in "equal to competition"pricing.

When an organization determines the optimum retail selling price consumers are willing to accept, it is using

The purchase of automobile fuel is an example of elastic demand.

Costs that change according to the level of output are ________ costs.

The breakeven point in dollars for a company with fixed costs of $400,000, variable costs per unit of $25, and a price of $45 is $900,000.

Price skimming sets a low entry price to discourage competitors from entering the market.

A retailer prices a product at $699 instead of $700. This is an example of

Price lining is when retailers mark up their costs to arrive at a selling price.

When faced with rising costs and declining margins, companies can increase the price or

If Farmer Brown has a total cost of $1 for a dozen eggs and he chooses to charge a 20% markup as profit, then he is said to have a ________ pricing strategy.

The price elasticity of demand refers to

Increasing sales volume and market share are objectives of profit maximization.

Marketing managers offer cash discounts to their distributors to

A manufacturer agrees to allow a retailer to be the exclusive vendor to carry its line under the condition that it sells at the MSLP. This is illegal.

Explain, using examples from two different industries, the practice of drip pricing.

Which of the following is an intangible benefit of a pair of Adidas basketball shoes?

A consumer buying a new car pays a standard delivery/freight charge regardless of his or her location. This is an example of ________ pricing.

Explain why uniform delivered pricing used by automobile dealerships may cause consumer frustration.

A firm's fixed costs are $50,000 and its unit variable cost is $15.00. At a selling price of $25.00 per unit, the breakeven point is

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