Question 1

If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the

Accepted Answer

A) quantity demanded goes down. 
B) demand remains constant. 
C) quantity demanded increases. 
D) demand increases. 
E) breakeven increases. 
A) quantity demanded goes down. 
B) demand remains constant. 
C) quantity demanded increases. 
D) demand increases. 
E) breakeven increases.

Question 2

Which of the following statements about nonprice competition is false?

Accepted Answer

A) Companies that use nonprice competition do not need to keep track of their competitor's prices. 
B) A company must be able to distinguish its brand through some unique feature in order to successfully engage in nonprice competition. 
C) A firm using nonprice competition can build loyalty to both its company and its products. 
D) When using nonprice competition, a company should promote the distinguishing characteristics of its brand. 
E) Buyers must view the distinguishing characteristics of a product offered through nonprice competition as being important. 
A) Companies that use nonprice competition do not need to keep track of their competitor's prices. 
B) A company must be able to distinguish its brand through some unique feature in order to successfully engage in nonprice competition. 
C) A firm using nonprice competition can build loyalty to both its company and its products. 
D) When using nonprice competition, a company should promote the distinguishing characteristics of its brand. 
E) Buyers must view the distinguishing characteristics of a product offered through nonprice competition as being important.

Question 3

The Palasi Candy Company is a small business located in the northeastern United States. The owner of Palasi Candy is calculating the projected costs for the coming year. There is rent for the building, salaries for the retail employees, raw materials of sugar, chocolate, and other ingredients, wrappers for packaging of individual pieces of candy, boxes, and radio advertising. Palasi's ______ are most likely to be the raw materials of sugar, chocolate, and other ingredients, as well as the wrappers.

Accepted Answer

A) sunk costs. 
B) variable costs. 
C) direct costs. 
D) fixed costs. 
E) marginal costs. 
A) sunk costs. 
B) variable costs. 
C) direct costs. 
D) fixed costs. 
E) marginal costs.

Question 4

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 5

Abby is marketing consultant who specializes in small businesses. Her current client is very interested in estimating the costs for the coming year, in order to find the breakeven point. Abby knows this is an important financial statistic because below the breakeven point, the firm is operating

Accepted Answer

A) with fixed costs only. 
B) with minimal variable costs. 
C) with no revenue. 
D) with minimal profit. 
E) at a loss. 
A) with fixed costs only. 
B) with minimal variable costs. 
C) with no revenue. 
D) with minimal profit. 
E) at a loss.

Question 6

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 price its product in barrels from the factory, before it is loaded on the carrier, this would be an example of ____ pricing.

Accepted Answer

A) buy-back allowance 
B) geographic 
C) F.O.B destination 
D) F.O.B.factory 
E) base-point 
A) buy-back allowance 
B) geographic 
C) F.O.B destination 
D) F.O.B.factory 
E) base-point

Question 7

Suppose that the watchband department of Timex sells completed watchbands to the finished watch department. The finished watch department is charged the price it would have to pay an outside watchband manufacturer less a discount to reflect low sales and transportation costs. This method of pricing is called ____ pricing.

Accepted Answer

A) zone 
B) actual full cost 
C) standard full cost 
D) cost plus investment 
E) market-based cost 
A) zone 
B) actual full cost 
C) standard full cost 
D) cost plus investment 
E) market-based cost

Question 8

If the product price is $100, average variable cost $40 per unit, and the total fixed costs are $120,000, what is the breakeven point?

Accepted Answer

A) 500 units 
B) 2,000 units 
C) 1,200 units 
D) 300 units 
E) 3,000 units 
A) 500 units 
B) 2,000 units 
C) 1,200 units 
D) 300 units 
E) 3,000 units

Question 9

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 10

Marketing mix variables are highly interrelated.

Accepted Answer

A) True 
 B)False

Question 11

If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur

Accepted Answer

A) more fixed costs. 
B) higher average fixed costs. 
C) fewer variable costs. 
D) a marginal cost. 
E) higher average variable costs. 
A) more fixed costs. 
B) higher average fixed costs. 
C) fewer variable costs. 
D) a marginal cost. 
E) higher average variable costs.

Question 12

If Pacific Power and Light increased its rates by 10 percent and experienced a 2 percent reduction in the demand for power, the demand would be

Accepted Answer

A) elastic. 
B) minimal. 
C) minor elasticity. 
D) variable. 
E) inelastic. 
A) elastic. 
B) minimal. 
C) minor elasticity. 
D) variable. 
E) inelastic.

Question 13

Which of the following products is most likely to have an inverted C-shaped demand curve?

Accepted Answer

A) Visit to the Dentist 
B) Eternity perfume 
C) Starbucks coffee 
D) Pillsbury cake mix 
E) Ford Escape 
A) Visit to the Dentist 
B) Eternity perfume 
C) Starbucks coffee 
D) Pillsbury cake mix 
E) Ford Escape

Question 14

Price is a key element in the marketing mix because it relates directly to

Accepted Answer

A) the size of the sales force. 
B) the speed of an exchange. 
C) quality controls. 
D) the generation of total revenue. 
E) brand image. 
A) the size of the sales force. 
B) the speed of an exchange. 
C) quality controls. 
D) the generation of total revenue. 
E) brand image.

Question 15

Pricing decisions can be based on determining whether the demand for a product is price elastic or price inelastic.

Accepted Answer

A) True 
 B)False

If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the

Which of the following statements about nonprice competition is false?

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.

Abby is marketing consultant who specializes in small businesses. Her current client is very interested in estimating the costs for the coming year, in order to find the breakeven point. Abby knows this is an important financial statistic because below the breakeven point, the firm is operating

If the product price is $100, average variable cost $40 per unit, and the total fixed costs are $120,000, what is the breakeven point?

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

Marketing mix variables are highly interrelated.

If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur

If Pacific Power and Light increased its rates by 10 percent and experienced a 2 percent reduction in the demand for power, the demand would be

Which of the following products is most likely to have an inverted C-shaped demand curve?

Price is a key element in the marketing mix because it relates directly to

Pricing decisions can be based on determining whether the demand for a product is price elastic or price inelastic.

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

If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the

Which of the following statements about nonprice competition is false?

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.

Abby is marketing consultant who specializes in small businesses. Her current client is very interested in estimating the costs for the coming year, in order to find the breakeven point. Abby knows this is an important financial statistic because below the breakeven point, the firm is operating

If the product price is $100, average variable cost $40 per unit, and the total fixed costs are $120,000, what is the breakeven point?

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

Marketing mix variables are highly interrelated.

If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur

If Pacific Power and Light increased its rates by 10 percent and experienced a 2 percent reduction in the demand for power, the demand would be

Which of the following products is most likely to have an inverted C-shaped demand curve?

Price is a key element in the marketing mix because it relates directly to

Pricing decisions can be based on determining whether the demand for a product is price elastic or price inelastic.

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