Question 1

A cost that changes with the level of output is called a(n)__________cost.

Accepted Answer

variable

Question 2

At the end of summer,the Gloomin' Garden Inc.reduced the price on all of its plants,fertilizers,and potting soil by 50 percent in order to liquidate this inventory.What type of pricing strategy has been used by Gloomin' Garden Inc.?

Accepted Answer

A) Supply oriented pricing 
B) Sales maximization 
C) Target return on investment 
D) Satisfactory profit 
A) Supply oriented pricing 
B) Sales maximization 
C) Target return on investment 
D) Satisfactory profit B

Question 3

Consumers are more likely to perceive the value of a product to be less than its cost if:

Accepted Answer

A) the product's price is set too high. 
B) the product's manufacturer gains very little profit from the product. 
C) the product has an inelastic demand. 
D) the product's demand and supply attain the state of price equilibrium. 
A) the product's price is set too high. 
B) the product's manufacturer gains very little profit from the product. 
C) the product has an inelastic demand. 
D) the product's demand and supply attain the state of price equilibrium. A

Question 4

When Jerry took delivery of his brand new Karuaf automobile,he was filled with pleasure and excitement as Karuaf is a very expensive brand.This is an example of the__________effect associated with the price-quality relationship.

Accepted Answer

The answer of When Jerry took delivery of his brand...

Question 5

As products enter the growth stage of the product life cycle,prices generally begin to stabilize.

Accepted Answer

A) True 
 B)False

Question 6

When the price of a product is set at a level where demand and supply are the same,a state of__________has been achieved.

Accepted Answer

The answer of When the price of a product is...

Question 7

Price is not used for trade promotions as it garners a negative opinion for the brand.

Accepted Answer

A) True 
 B)False

Question 8

Stocking well-known branded items at high prices in order to sell store brands at discounted prices is called selling against the brand.

Accepted Answer

A) True 
 B)False

Question 9

Diffusion Research Company specializes in conducting market research for various firms.When it receives proposals for new research,its management will first estimate the cost of conducting the research and producing and delivering the final research report.The management then adds 30 percent to that cost estimate.This becomes the price estimate given to the potential research client.This suggests that Diffusion Research Company uses a__________pricing objective.

Accepted Answer

The answer of Diffusion Research Company specializes in conducting market...

Question 10

How do manufacturers benefit from prestige pricing?

Accepted Answer

Prestige pricing is charging a high pric

Question 11

When Jerry took delivery of his brand new Karuaf automobile,he was filled with pleasure and excitement as Karuaf is a very expensive brand.This is an example of the _____ effect associated with the price-quality relationship.

Accepted Answer

A) durability 
B) ​allocative 
C) ​prestige 
D) hedonistic 
A) durability 
B) ​allocative 
C) ​prestige 
D) hedonistic

Question 12

Profit-oriented pricing objectives include:

Accepted Answer

A) target return on investment. 
B) target market share. 
C) sales maximization. 
D) status quo pricing. 
A) target return on investment. 
B) target market share. 
C) sales maximization. 
D) status quo pricing.

Question 13

Department stores seldom make demands on their suppliers to cover the heavy discounts and markdowns on their own selling floors.

Accepted Answer

A) True 
 B)False

Question 14

Adequate distribution for a new product can often be attained by giving dealers a large trade allowance.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements is true about yield management systems (YMS)?

Accepted Answer

A) They are used to eliminate the problem of simultaneous production and consumption from services. 
B) They are restricted to use only in service industries. 
C) They are complex pricing systems used to establish price equilibrium. 
D) They are used to make profitable use of the unused capacity of perishable goods. 
A) They are used to eliminate the problem of simultaneous production and consumption from services. 
B) They are restricted to use only in service industries. 
C) They are complex pricing systems used to establish price equilibrium. 
D) They are used to make profitable use of the unused capacity of perishable goods.

Question 16

Although many factors can influence the price of a product,the primary determinants are:

Accepted Answer

A) the costs of manufacturing and distributing the product. 
B) the demand for the product and the cost to the seller for the product. 
C) the demand by consumers and the perceived quality of the product. 
D) the distribution and promotion strategies for the product. 
A) the costs of manufacturing and distributing the product. 
B) the demand for the product and the cost to the seller for the product. 
C) the demand by consumers and the perceived quality of the product. 
D) the distribution and promotion strategies for the product.

Question 17

Which of the following trends in the consumer market has increased the difficulty of setting the right price for a product?

Accepted Answer

A) The unwillingness of many firms to maintain or regain their market share by cutting prices 
B) The decreased availability of bargain-priced private and generic product brands 
C) The careful evaluation of each product's price against its value by potential buyers 
D) The inability of consumers to do comparison shopping 
A) The unwillingness of many firms to maintain or regain their market share by cutting prices 
B) The decreased availability of bargain-priced private and generic product brands 
C) The careful evaluation of each product's price against its value by potential buyers 
D) The inability of consumers to do comparison shopping

Question 18

For convenience,pricing objectives can be divided into three categories.They are:

Accepted Answer

A) refundable,competitive,and attainable. 
B) perceived,actual,and situational. 
C) differentiated,niche,and undifferentiated. 
D) profit oriented,sales oriented,and status quo. 
A) refundable,competitive,and attainable. 
B) perceived,actual,and situational. 
C) differentiated,niche,and undifferentiated. 
D) profit oriented,sales oriented,and status quo.

Question 19

According to garment makers,the demands of large customers are nearly wiping out profits for all but the very large suppliers.

Accepted Answer

A) True 
 B)False

Question 20

Competition remains constant during a product's life cycle.

Accepted Answer

A) True 
 B)False

A cost that changes with the level of output is called a(n)__________cost.

At the end of summer,the Gloomin' Garden Inc.reduced the price on all of its plants,fertilizers,and potting soil by 50 percent in order to liquidate this inventory.What type of pricing strategy has been used by Gloomin' Garden Inc.?

Consumers are more likely to perceive the value of a product to be less than its cost if:

When Jerry took delivery of his brand new Karuaf automobile,he was filled with pleasure and excitement as Karuaf is a very expensive brand.This is an example of the__________effect associated with the price-quality relationship.

As products enter the growth stage of the product life cycle,prices generally begin to stabilize.

When the price of a product is set at a level where demand and supply are the same,a state of__________has been achieved.

Price is not used for trade promotions as it garners a negative opinion for the brand.

Stocking well-known branded items at high prices in order to sell store brands at discounted prices is called selling against the brand.

How do manufacturers benefit from prestige pricing?

When Jerry took delivery of his brand new Karuaf automobile,he was filled with pleasure and excitement as Karuaf is a very expensive brand.This is an example of the _____ effect associated with the price-quality relationship.

Profit-oriented pricing objectives include:

Department stores seldom make demands on their suppliers to cover the heavy discounts and markdowns on their own selling floors.

Adequate distribution for a new product can often be attained by giving dealers a large trade allowance.

Which of the following statements is true about yield management systems (YMS)?

Although many factors can influence the price of a product,the primary determinants are:

Which of the following trends in the consumer market has increased the difficulty of setting the right price for a product?

For convenience,pricing objectives can be divided into three categories.They are:

According to garment makers,the demands of large customers are nearly wiping out profits for all but the very large suppliers.

Competition remains constant during a product's life cycle.

An Overview of Marketing

Strategic Planning for Competitive Advantage

Ethics and Social Responsibility

The Marketing Environment

Developing a Global Vision

Consumer Decision Making

Business Marketing

Segmenting and Targeting Markets

Marketing Research

Product Concepts

Developing and Managing Products

Services and Nonprofit Organization Marketing

Supply Chain Management

Marketing Channels

Retailing

Marketing Communications

Advertising, public Relations, and Sales Promotion

Personal Selling and Sales Management

Social Media and Marketing

Setting the Right Price

Filters

Exam 20: Pricing Concepts

A cost that changes with the level of output is called a(n)__________cost.

At the end of summer,the Gloomin' Garden Inc.reduced the price on all of its plants,fertilizers,and potting soil by 50 percent in order to liquidate this inventory.What type of pricing strategy has been used by Gloomin' Garden Inc.?

Consumers are more likely to perceive the value of a product to be less than its cost if:

When Jerry took delivery of his brand new Karuaf automobile,he was filled with pleasure and excitement as Karuaf is a very expensive brand.This is an example of the__________effect associated with the price-quality relationship.

As products enter the growth stage of the product life cycle,prices generally begin to stabilize.

When the price of a product is set at a level where demand and supply are the same,a state of__________has been achieved.

Price is not used for trade promotions as it garners a negative opinion for the brand.

Stocking well-known branded items at high prices in order to sell store brands at discounted prices is called selling against the brand.

How do manufacturers benefit from prestige pricing?

When Jerry took delivery of his brand new Karuaf automobile,he was filled with pleasure and excitement as Karuaf is a very expensive brand.This is an example of the _____ effect associated with the price-quality relationship.

Profit-oriented pricing objectives include:

Department stores seldom make demands on their suppliers to cover the heavy discounts and markdowns on their own selling floors.

Adequate distribution for a new product can often be attained by giving dealers a large trade allowance.

Which of the following statements is true about yield management systems (YMS)?

Although many factors can influence the price of a product,the primary determinants are:

Which of the following trends in the consumer market has increased the difficulty of setting the right price for a product?

For convenience,pricing objectives can be divided into three categories.They are:

According to garment makers,the demands of large customers are nearly wiping out profits for all but the very large suppliers.

Competition remains constant during a product's life cycle.

An Overview of Marketing

Strategic Planning for Competitive Advantage

Ethics and Social Responsibility

The Marketing Environment

Developing a Global Vision

Consumer Decision Making

Business Marketing

Segmenting and Targeting Markets

Marketing Research

Product Concepts

Developing and Managing Products

Services and Nonprofit Organization Marketing

Supply Chain Management

Marketing Channels

Retailing

Marketing Communications

Advertising, public Relations, and Sales Promotion

Personal Selling and Sales Management

Social Media and Marketing

Setting the Right Price

Filters