Question 1

What type of discount is given to a business purchaser for performing activities such as transporting, storing, and selling?

Accepted Answer

A) Quantity 
B) Cash 
C) Geographic 
D) Service 
E) Trade 
A) Quantity 
B) Cash 
C) Geographic 
D) Service 
E) Trade

Question 2

Producers commonly provide discounts off list prices to intermediaries.

Accepted Answer

A) True 
 B)False

Question 3

Since Victoria's Secret has decided to use nonprice competition, it distinguishes its brand through all but which of the following?

Accepted Answer

A) distinctive product features. 
B) exceptional service. 
C) rebates. 
D) variety and selection. 
E) product quality and style. 
A) distinctive product features. 
B) exceptional service. 
C) rebates. 
D) variety and selection. 
E) product quality and style.

Question 4

Monopolies usually keep their prices at a level that generate a reasonable, but not excessive, return primarily because

Accepted Answer

A) they want to avoid new competitors entering their market. 
B) they want to avoid government regulations on their pricing. 
C) they try to satisfy the demands of value-conscious consumers. 
D) firms can increase market share more rapidly this way. 
E) customers will discontinue use of these products if prices rise. 
A) they want to avoid new competitors entering their market. 
B) they want to avoid government regulations on their pricing. 
C) they try to satisfy the demands of value-conscious consumers. 
D) firms can increase market share more rapidly this way. 
E) customers will discontinue use of these products if prices rise.

Question 5

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. BASF has decided to offer discounts to its businesses customers in the form of the following: For each order of $100,000 or more during the next 90 days, the buyer will receive a rebate of 5 percent. This type of pricing would be an example of ____ discounts.

Accepted Answer

A) allowance 
B) cash 
C) seasonal 
D) noncumulative 
E) cumulative 
A) allowance 
B) cash 
C) seasonal 
D) noncumulative 
E) cumulative

Question 6

Roberts Electronics calculates that if it produces 15 radar detectors, its costs are $1,500, and if it produces 16 radar detectors, its costs are $1,590. In this instance, $90 is the firm's ____ cost.

Accepted Answer

A) average 
B) fixed 
C) variable 
D) marginal 
E) average variable 
A) average 
B) fixed 
C) variable 
D) marginal 
E) average variable

Question 7

The purpose of the pricing concept is to quantify and express the value of items in a market exchange.

Accepted Answer

A) True 
 B)False

Question 8

Suppose Tommy Hilfiger is introducing a new line of men's ties. The designer believes that the target market for these ties comprises men who are very status-conscious. In keeping with this assessment, department stores selling the ties should

Accepted Answer

A) charge a price based on their cost. 
B) charge prices consistent with their existing ties. 
C) discount the ties. 
D) negotiate the price with individual tie shoppers. 
E) use price symbolically. 
A) charge a price based on their cost. 
B) charge prices consistent with their existing ties. 
C) discount the ties. 
D) negotiate the price with individual tie shoppers. 
E) use price symbolically.

Question 9

Markum Industries determines that for its air compressors the following results are achieved at a price of $250: total costs = $250,000; variable costs per unit = $100; fixed costs = $175,000. Given these figures, Markum would break even at ____ units.

Accepted Answer

A) 1,167 
B) 1,000 
C) 1,750 
D) 2,500 
E) 700 
A) 1,167 
B) 1,000 
C) 1,750 
D) 2,500 
E) 700

Question 10

What are the terms of F.O.B. pricing?

Accepted Answer

The answer of What are the terms of F.O.B. pricing?...

Question 11

Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of a ____ discount.

Accepted Answer

A) quantity 
B) cash 
C) seasonal 
D) trade 
E) complementary 
A) quantity 
B) cash 
C) seasonal 
D) trade 
E) complementary

Question 12

Premium-priced products are usually marketed through

Accepted Answer

A) complex marketing channels. 
B) intensive or selective distribution. 
C) exclusive or intensive distribution. 
D) exclusive distribution only. 
E) selective or exclusive distribution. 
A) complex marketing channels. 
B) intensive or selective distribution. 
C) exclusive or intensive distribution. 
D) exclusive distribution only. 
E) selective or exclusive distribution.

Question 13

Generally, customers are most likely to rely on the price-quality association when

Accepted Answer

A) they cannot judge the quality of the product for themselves. 
B) the product is a well-known brand. 
C) customers can judge the product's quality for themselves. 
D) the product is purchased through the use of the Internet. 
E) products are being purchased from well-established retailers that are familiar to customers. 
A) they cannot judge the quality of the product for themselves. 
B) the product is a well-known brand. 
C) customers can judge the product's quality for themselves. 
D) the product is purchased through the use of the Internet. 
E) products are being purchased from well-established retailers that are familiar to customers.

Question 14

Price is a major component of the profit equation.

Accepted Answer

A) True 
 B)False

Question 15

Jared is developing a business plan for a new type of bicycle helmet. He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product. Jared is interested in finding the

Accepted Answer

A) elasticity of demand. 
B) breakeven point. 
C) variable costs. 
D) price elasticity. 
E) the sum of fixed costs. 
A) elasticity of demand. 
B) breakeven point. 
C) variable costs. 
D) price elasticity. 
E) the sum of fixed costs.

Question 16

Knowing the number of units necessary to break even is important in setting the price.

Accepted Answer

A) True 
 B)False

Question 17

Marketers generally view ____ as the minimum price a product can be sold for.

Accepted Answer

A) fixed costs 
B) variable costs 
C) profits 
D) costs 
E) moderate losses 
A) fixed costs 
B) variable costs 
C) profits 
D) costs 
E) moderate losses

Question 18

When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on

Accepted Answer

A) internal reference prices. 
B) symbol prices. 
C) high value products. 
D) discounted reference prices. 
E) external reference prices. 
A) internal reference prices. 
B) symbol prices. 
C) high value products. 
D) discounted reference prices. 
E) external reference prices.

Question 19

What are the differences among value-conscious, price-conscious, and prestige-sensitive customers?

Accepted Answer

The answer of What are the differences among value-conscious, price-conscious,...

Question 20

Organizational goals have little to do with pricing decisions.

Accepted Answer

A) True 
 B)False

What type of discount is given to a business purchaser for performing activities such as transporting, storing, and selling?

Producers commonly provide discounts off list prices to intermediaries.

Since Victoria's Secret has decided to use nonprice competition, it distinguishes its brand through all but which of the following?

Monopolies usually keep their prices at a level that generate a reasonable, but not excessive, return primarily because

Roberts Electronics calculates that if it produces 15 radar detectors, its costs are $1,500, and if it produces 16 radar detectors, its costs are $1,590. In this instance, $90 is the firm's ____ cost.

The purpose of the pricing concept is to quantify and express the value of items in a market exchange.

Suppose Tommy Hilfiger is introducing a new line of men's ties. The designer believes that the target market for these ties comprises men who are very status-conscious. In keeping with this assessment, department stores selling the ties should

Markum Industries determines that for its air compressors the following results are achieved at a price of $250: total costs = $250,000; variable costs per unit = $100; fixed costs = $175,000. Given these figures, Markum would break even at ____ units.

What are the terms of F.O.B. pricing?

Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of a ____ discount.

Premium-priced products are usually marketed through

Generally, customers are most likely to rely on the price-quality association when

Price is a major component of the profit equation.

Jared is developing a business plan for a new type of bicycle helmet. He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product. Jared is interested in finding the

Knowing the number of units necessary to break even is important in setting the price.

Marketers generally view ____ as the minimum price a product can be sold for.

When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on

What are the differences among value-conscious, price-conscious, and prestige-sensitive customers?

Organizational goals have little to do with pricing decisions.

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

What type of discount is given to a business purchaser for performing activities such as transporting, storing, and selling?

Producers commonly provide discounts off list prices to intermediaries.

Since Victoria's Secret has decided to use nonprice competition, it distinguishes its brand through all but which of the following?

Monopolies usually keep their prices at a level that generate a reasonable, but not excessive, return primarily because

Roberts Electronics calculates that if it produces 15 radar detectors, its costs are $1,500, and if it produces 16 radar detectors, its costs are $1,590. In this instance, $90 is the firm's ____ cost.

The purpose of the pricing concept is to quantify and express the value of items in a market exchange.

Suppose Tommy Hilfiger is introducing a new line of men's ties. The designer believes that the target market for these ties comprises men who are very status-conscious. In keeping with this assessment, department stores selling the ties should

Markum Industries determines that for its air compressors the following results are achieved at a price of $250: total costs = $250,000; variable costs per unit = $100; fixed costs = $175,000. Given these figures, Markum would break even at ____ units.

What are the terms of F.O.B. pricing?

Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of a ____ discount.

Premium-priced products are usually marketed through

Generally, customers are most likely to rely on the price-quality association when

Price is a major component of the profit equation.

Jared is developing a business plan for a new type of bicycle helmet. He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product. Jared is interested in finding the

Knowing the number of units necessary to break even is important in setting the price.

Marketers generally view ____ as the minimum price a product can be sold for.

When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on

What are the differences among value-conscious, price-conscious, and prestige-sensitive customers?

Organizational goals have little to do with pricing decisions.

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