Question 1

The Robinson-Patman Act does NOT include regulations that ________.

Accepted Answer

A)  apply to resellers 
B)  protect final consumers 
C)  prohibit selling the same product to different retailers at different prices 
D)  prohibit offering such "extras" as discounts, rebates, premiums, and coupons to some but not all customers 
E)  prohibit price discrimination in interstate commerce 
A)  apply to resellers 
B)  protect final consumers 
C)  prohibit selling the same product to different retailers at different prices 
D)  prohibit offering such "extras" as discounts, rebates, premiums, and coupons to some but not all customers 
E)  prohibit price discrimination in interstate commerce

Question 2

Exchanges of nonmonetary value do not involve a price.

Accepted Answer

A) True 
 B)False

Question 3

What are the two types of price fixing? Briefly define each.

Accepted Answer

Horizontal price fixing occurs when comp

Question 4

As a manufacturer increases price, the ________ drops.

Accepted Answer

A)  target 
B)  break-even point 
C)  marginal revenue 
D)  total cost 
E)  variable cost 
A)  target 
B)  break-even point 
C)  marginal revenue 
D)  total cost 
E)  variable cost

Question 5

A quantity discount is a price reduction to buyers who purchase ________.

Accepted Answer

A)  frequently 
B)  large volumes 
C)  close outs 
D)  bundled products 
E)  seasonal products 
A)  frequently 
B)  large volumes 
C)  close outs 
D)  bundled products 
E)  seasonal products

Question 6

Market-skimming is a more popular strategy for pricing new products, while market-penetration is a more popular strategy for pricing products that are more advanced in the product life cycle.

Accepted Answer

A) True 
 B)False

Question 7

A local appliance store is advertising the sale of a 27-inch color TV for only $199. The ad states that this price will apply only to TVs that are in stock and no rain checks will be given. Fifteen minutes after the store opens on the day of the sale of the TV, a customer is told by a sales clerk that all of the TVs selling for $199 have been sold. However, the sales clerk is very happy to show the customer a similar TV for only $399. What pricing strategy is the store implementing and why?

Accepted Answer

The store is using the bait-and-switch t

Question 8

A(n) ________ strategy is implemented when a store places two similar items next to each other, highlighting the fact that the price of one item is slightly lower than that of the other item.

Accepted Answer

A)  assimilation effect 
B)  contrast effect 
C)  price-placebo effect 
D)  penetration pricing 
E)  skimming price 
A)  assimilation effect 
B)  contrast effect 
C)  price-placebo effect 
D)  penetration pricing 
E)  skimming price

Question 9

Break-even analysis is used to examine the relationship between ________.

Accepted Answer

A)  fixed costs and variable costs 
B)  costs and contributions 
C)  costs and price 
D)  demand and costs 
E)  demand and profits 
A)  fixed costs and variable costs 
B)  costs and contributions 
C)  costs and price 
D)  demand and costs 
E)  demand and profits

Question 10

Which of the following is an example of a pricing strategy that focuses on customers' needs?

Accepted Answer

A)  price leadership 
B)  everyday low pricing 
C)  distribution-based pricing 
D)  keystoning 
E)  skimming 
A)  price leadership 
B)  everyday low pricing 
C)  distribution-based pricing 
D)  keystoning 
E)  skimming

Question 11

A hamburger stand near the local mall sells hamburgers for $3.99, drinks for $1.99, and fries for $1.49, while a gourmet restaurant nearby sells entrees for $20, $30, and $45. Both of these restaurants are using ________.

Accepted Answer

A)  demand-based pricing 
B)  cost-based pricing 
C)  psychological pricing 
D)  prestige pricing 
E)  penetration pricing 
A)  demand-based pricing 
B)  cost-based pricing 
C)  psychological pricing 
D)  prestige pricing 
E)  penetration pricing

Question 12

What are some of the potential consumer benefits to purchasing items online?

Accepted Answer

Consumers can potentially save on the ac

Question 13

Which of the following statements about the break-even point is true?

Accepted Answer

A)  It is used to determine how many more units need to be sold to increase market share by a specific amount. 
B)  It is a technique used to calculate fixed costs. 
C)  It determines the amount of retained earnings a company will have during an accounting period. 
D)  It is a technique marketers use to examine the relationship between supply and demand. 
E)  It is calculated using contribution per unit costs and total fixed costs. 
A)  It is used to determine how many more units need to be sold to increase market share by a specific amount. 
B)  It is a technique used to calculate fixed costs. 
C)  It determines the amount of retained earnings a company will have during an accounting period. 
D)  It is a technique marketers use to examine the relationship between supply and demand. 
E)  It is calculated using contribution per unit costs and total fixed costs.

Question 14

To determine the break-even point, a firm needs to first do which of the following?

Accepted Answer

A)  determine what percentage of the market it wants 
B)  determine the point at which supply equals demand 
C)  calculate the contribution per unit 
D)  conduct an environmental audit 
E)  determine total market share 
A)  determine what percentage of the market it wants 
B)  determine the point at which supply equals demand 
C)  calculate the contribution per unit 
D)  conduct an environmental audit 
E)  determine total market share

Question 15

Which of the following occurs when competitors making the same product jointly determine what price each will charge customers for the item?

Accepted Answer

A)  horizontal price fixing 
B)  vertical price fixing 
C)  predatory pricing 
D)  internal reference pricing 
E)  assimilation pricing 
A)  horizontal price fixing 
B)  vertical price fixing 
C)  predatory pricing 
D)  internal reference pricing 
E)  assimilation pricing

Question 16

A local restaurant sells lunch entrees for $7.95, $9.95, and $11.95. From this information, you can infer the restaurant uses which of the following?

Accepted Answer

A)  price discrimination 
B)  odd-even pricing and price lining 
C)  dynamic pricing and price lining 
D)  reference pricing and value pricing 
E)  dynamic pricing and loss leader pricing 
A)  price discrimination 
B)  odd-even pricing and price lining 
C)  dynamic pricing and price lining 
D)  reference pricing and value pricing 
E)  dynamic pricing and loss leader pricing

Question 17

Cost-based pricing considers factors such as the nature of the target market, demand, competition, and the product life cycle.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following should be true for a skimming price to be successful?

Accepted Answer

A)  Target consumers should be price sensitive. 
B)  Supply should exceed demand. 
C)  Demand must be stabilizing. 
D)  The producer should use intensive distribution. 
E)  There should be little chance that competitors can quickly enter the market. 
A)  Target consumers should be price sensitive. 
B)  Supply should exceed demand. 
C)  Demand must be stabilizing. 
D)  The producer should use intensive distribution. 
E)  There should be little chance that competitors can quickly enter the market.

Question 19

The Value Meal Deal at a fast food restaurant in which you get a sandwich, fries, and a drink for one price is an example of price bundling.

Accepted Answer

A) True 
 B)False

Question 20

Federal legislation on price-fixing requires that sellers set their prices ________.

Accepted Answer

A)  based on their fixed and variable costs 
B)  without communication with competitors 
C)  to achieve a specified profit margin 
D)  consistently with all customers 
E)  consistently throughout a region 
A)  based on their fixed and variable costs 
B)  without communication with competitors 
C)  to achieve a specified profit margin 
D)  consistently with all customers 
E)  consistently throughout a region

The Robinson-Patman Act does NOT include regulations that ________.

Exchanges of nonmonetary value do not involve a price.

What are the two types of price fixing? Briefly define each.

As a manufacturer increases price, the ________ drops.

A quantity discount is a price reduction to buyers who purchase ________.

Market-skimming is a more popular strategy for pricing new products, while market-penetration is a more popular strategy for pricing products that are more advanced in the product life cycle.

A(n) ________ strategy is implemented when a store places two similar items next to each other, highlighting the fact that the price of one item is slightly lower than that of the other item.

Break-even analysis is used to examine the relationship between ________.

Which of the following is an example of a pricing strategy that focuses on customers' needs?

A hamburger stand near the local mall sells hamburgers for $3.99, drinks for $1.99, and fries for $1.49, while a gourmet restaurant nearby sells entrees for $20, $30, and $45. Both of these restaurants are using ________.

What are some of the potential consumer benefits to purchasing items online?

Which of the following statements about the break-even point is true?

To determine the break-even point, a firm needs to first do which of the following?

Which of the following occurs when competitors making the same product jointly determine what price each will charge customers for the item?

A local restaurant sells lunch entrees for $7.95, $9.95, and $11.95. From this information, you can infer the restaurant uses which of the following?

Cost-based pricing considers factors such as the nature of the target market, demand, competition, and the product life cycle.

Which of the following should be true for a skimming price to be successful?

The Value Meal Deal at a fast food restaurant in which you get a sandwich, fries, and a drink for one price is an example of price bundling.

Federal legislation on price-fixing requires that sellers set their prices ________.

Welcome to the World of Marketing: Create and Deliver Value

Global, Ethical, and Sustainable Marketing

Strategic Market Planning

Market Research

Marketing Analytics: Welcome to the Era of Big Data

Understand Consumer and Business Markets

Segmentation, Target Marketing, and Positioning

Product I: Innovation and New Product Development

Product Ii: Product Strategy, Branding, and Product Management

Deliver the Goods: Determine the Distribution Strategy

Deliver the Customer Experience: Goods and Services Via Bricks and Clicks

Promotion I: Advertising and Sales Promotion

Promotion Ii: Social Media, Directdatabase Marketing, Personal Selling, and Public Relations

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Exam 10: Price: What Is the Value Proposition Worth

The Robinson-Patman Act does NOT include regulations that ________.

Exchanges of nonmonetary value do not involve a price.

What are the two types of price fixing? Briefly define each.

As a manufacturer increases price, the ________ drops.

A quantity discount is a price reduction to buyers who purchase ________.

Market-skimming is a more popular strategy for pricing new products, while market-penetration is a more popular strategy for pricing products that are more advanced in the product life cycle.

A(n) ________ strategy is implemented when a store places two similar items next to each other, highlighting the fact that the price of one item is slightly lower than that of the other item.

Break-even analysis is used to examine the relationship between ________.

Which of the following is an example of a pricing strategy that focuses on customers' needs?

A hamburger stand near the local mall sells hamburgers for $3.99, drinks for $1.99, and fries for $1.49, while a gourmet restaurant nearby sells entrees for $20, $30, and $45. Both of these restaurants are using ________.

What are some of the potential consumer benefits to purchasing items online?

Which of the following statements about the break-even point is true?

To determine the break-even point, a firm needs to first do which of the following?

Which of the following occurs when competitors making the same product jointly determine what price each will charge customers for the item?

A local restaurant sells lunch entrees for $7.95, $9.95, and $11.95. From this information, you can infer the restaurant uses which of the following?

Cost-based pricing considers factors such as the nature of the target market, demand, competition, and the product life cycle.

Which of the following should be true for a skimming price to be successful?

The Value Meal Deal at a fast food restaurant in which you get a sandwich, fries, and a drink for one price is an example of price bundling.

Federal legislation on price-fixing requires that sellers set their prices ________.

Welcome to the World of Marketing: Create and Deliver Value

Global, Ethical, and Sustainable Marketing

Strategic Market Planning

Market Research

Marketing Analytics: Welcome to the Era of Big Data

Understand Consumer and Business Markets

Segmentation, Target Marketing, and Positioning

Product I: Innovation and New Product Development

Product Ii: Product Strategy, Branding, and Product Management

Deliver the Goods: Determine the Distribution Strategy

Deliver the Customer Experience: Goods and Services Via Bricks and Clicks

Promotion I: Advertising and Sales Promotion

Promotion Ii: Social Media, Directdatabase Marketing, Personal Selling, and Public Relations

Filters