Question 1

A deduction from list price for purchasing large quantities aggregated over a stated period of time is a

Accepted Answer

A) noncumulative quantity discount. 
B) additive cash discount. 
C) cumulative quantity discount. 
D) cumulative discount allowance. 
E) additive quantity reduction. 
A) noncumulative quantity discount. 
B) additive cash discount. 
C) cumulative quantity discount. 
D) cumulative discount allowance. 
E) additive quantity reduction.

Question 2

Which of the following is not a major factor for firms making price decisions?

Accepted Answer

A) Costs 
B) Competition 
C) Previous sales 
D) Channel member expectations 
E) Legal and regulatory issues 
A) Costs 
B) Competition 
C) Previous sales 
D) Channel member expectations 
E) Legal and regulatory issues

Question 3

Product demand usually becomes more elastic over time because more substitutes are found.

Accepted Answer

A) True 
 B)False

Question 4

What a price means or what it communicates to customers is called

Accepted Answer

A) reference. 
B) response. 
C) interpretation. 
D) internalization. 
E) signaling. 
A) reference. 
B) response. 
C) interpretation. 
D) internalization. 
E) signaling.

Question 5

The major disadvantage of using price competition is that it takes a long time to implement the changes in price.

Accepted Answer

A) True 
 B)False

Question 6

The amount of profit a channel member expects depends on

Accepted Answer

A) the amount of discounts for large orders provided by the producers. 
B) the number of channel support activities provided by the producers. 
C) what the intermediary could earn if it were handling a competing product instead. 
D) the type of distribution channels involved. 
E) the amount of effort required to carry the product. 
A) the amount of discounts for large orders provided by the producers. 
B) the number of channel support activities provided by the producers. 
C) what the intermediary could earn if it were handling a competing product instead. 
D) the type of distribution channels involved. 
E) the amount of effort required to carry the product.

Question 7

When marketers emphasize price as an issue and match or beat the prices of other companies, they are using

Accepted Answer

A) price competition. 
B) nonprice competition. 
C) comparative pricing strategies. 
D) demand-based pricing. 
E) supply-based pricing. 
A) price competition. 
B) nonprice competition. 
C) comparative pricing strategies. 
D) demand-based pricing. 
E) supply-based pricing.

Question 8

Identify and describe the major types of discounts used for business markets. Then explain the reasons for using each type.

Accepted Answer

The answer of Identify and describe the major types of...

Question 9

The firm should produce the quantity at which marginal revenue and marginal cost are equal.

Accepted Answer

A) True 
 B)False

Question 10

Ryan orders 16 dozen fishing lures from Strike Right for $375. When he gets the invoice, he is furious that $25 in freight charges has been tacked onto his bill because he thought the price included freight costs. Ryan should have been certain that the order terms were

Accepted Answer

A) F.O.B.origin. 
B) F.O.B.factory. 
C) C.O.D. 
D) 2/10, n/30. 
E) F.O.B.destination. 
A) F.O.B.origin. 
B) F.O.B.factory. 
C) C.O.D. 
D) 2/10, n/30. 
E) F.O.B.destination.

Question 11

A measure of sensitivity of demand in relation to changes in price is

Accepted Answer

A) a demand curve. 
B) a prestige graph. 
C) marginal analysis. 
D) price elasticity of demand. 
E) quantity elasticity. 
A) a demand curve. 
B) a prestige graph. 
C) marginal analysis. 
D) price elasticity of demand. 
E) quantity elasticity.

Question 12

The degree to which the price of a product enhances a customer's satisfaction with the purchase experience and with the product after the purchase is part of their

Accepted Answer

A) response. 
B) reference. 
C) interpretation. 
D) price satisfaction. 
E) price-consciousness. 
A) response. 
B) reference. 
C) interpretation. 
D) price satisfaction. 
E) price-consciousness.

Question 13

A customer looking for the lowest price on a mattress without concern for the quality of the mattress or the status gained by buying and using a certain brand is a price-conscious customer.

Accepted Answer

A) True 
 B)False

Question 14

A product under nonprice competition would most likely not succeed in the market if

Accepted Answer

A) a new advertising campaign is established for it. 
B) it is easy to duplicate. 
C) it is packaged differently from similar products. 
D) it is priced near the competitors' price. 
E) its quality has been upgraded. 
A) a new advertising campaign is established for it. 
B) it is easy to duplicate. 
C) it is packaged differently from similar products. 
D) it is priced near the competitors' price. 
E) its quality has been upgraded.

Question 15

Nonprice competition allows a company to increase its brand's unit sales through means other than changing the brand's price.

Accepted Answer

A) True 
 B)False

Question 16

To maintain market share and revenue in an increasingly price-sensitive market, companies have focused on quality, used labor-saving technologies, and used efficient manufacturing processes. These tactics have provided gains in productivity that have translated into ____ for the consumer.

Accepted Answer

A) higher costs for the company and higher prices 
B) higher costs for the company and lower prices 
C) lower costs for the company and lower prices 
D) lower costs for the company and higher prices 
E) no change in the costs for either the company or 
A) higher costs for the company and higher prices 
B) higher costs for the company and lower prices 
C) lower costs for the company and lower prices 
D) lower costs for the company and higher prices 
E) no change in the costs for either the company or

Question 17

For most products, the quantity demanded goes up as the price goes down.

Accepted Answer

A) True 
 B)False

Question 18

In setting price, it is wise to analyze competitors' prices.

Accepted Answer

A) True 
 B)False

Question 19

If demand is elastic, a change in price causes a parallel change in total revenue.

Accepted Answer

A) True 
 B)False

Question 20

Customers always interpret a higher price to mean higher quality.

Accepted Answer

A) True 
 B)False

Exam 20: Pricing Concepts

A deduction from list price for purchasing large quantities aggregated over a stated period of time is a

Which of the following is not a major factor for firms making price decisions?

Product demand usually becomes more elastic over time because more substitutes are found.

What a price means or what it communicates to customers is called

The major disadvantage of using price competition is that it takes a long time to implement the changes in price.

The amount of profit a channel member expects depends on

When marketers emphasize price as an issue and match or beat the prices of other companies, they are using

Identify and describe the major types of discounts used for business markets. Then explain the reasons for using each type.

The firm should produce the quantity at which marginal revenue and marginal cost are equal.

Ryan orders 16 dozen fishing lures from Strike Right for $375. When he gets the invoice, he is furious that $25 in freight charges has been tacked onto his bill because he thought the price included freight costs. Ryan should have been certain that the order terms were

A measure of sensitivity of demand in relation to changes in price is

The degree to which the price of a product enhances a customer's satisfaction with the purchase experience and with the product after the purchase is part of their

A customer looking for the lowest price on a mattress without concern for the quality of the mattress or the status gained by buying and using a certain brand is a price-conscious customer.

A product under nonprice competition would most likely not succeed in the market if

Nonprice competition allows a company to increase its brand's unit sales through means other than changing the brand's price.

To maintain market share and revenue in an increasingly price-sensitive market, companies have focused on quality, used labor-saving technologies, and used efficient manufacturing processes. These tactics have provided gains in productivity that have translated into ____ for the consumer.

For most products, the quantity demanded goes up as the price goes down.

In setting price, it is wise to analyze competitors' prices.

If demand is elastic, a change in price causes a parallel change in total revenue.

Customers always interpret a higher price to mean higher quality.

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