Question 1

Knowing the target market's evaluation of price allows the marketer to know how much emphasis to place on price and how to price a product relative to competition.

Accepted Answer

A) True 
 B)False

Question 2

For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded.

Accepted Answer

A) inelastic 
B) inverse 
C) positive 
D) unknown 
E) elastic 
A) inelastic 
B) inverse 
C) positive 
D) unknown 
E) elastic

Question 3

Why is the marginal revenue of a product important to the marketer?

Accepted Answer

The answer of Why is the marginal revenue of a...

Question 4

Pricing decisions should be based on the marketer's previous marketing strategies for other successful products and on intuition.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is most likely to have an inelastic demand curve?

Accepted Answer

A) Automobile 
B) Vacation 
C) Nonelective surgery 
D) Recreational vehicle 
E) Computer 
A) Automobile 
B) Vacation 
C) Nonelective surgery 
D) Recreational vehicle 
E) Computer

Question 6

Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Caterpillar is producing at the ____ point.

Accepted Answer

A) breakeven 
B) marginal revenue less than marginal cost 
C) profit margin 
D) competitive price 
E) profit maximizing 
A) breakeven 
B) marginal revenue less than marginal cost 
C) profit margin 
D) competitive price 
E) profit maximizing

Question 7

What are the implications of a downward-sloping demand curve?

Accepted Answer

The answer of What are the implications of a downward-sloping...

Question 8

Ethan is an operations unit manager for Morningstar Foods. So far in developing his monthly budget, he has identified the following costs: Overhead at $120,000; Packaging at $70,000; Advertising at $60,000; Salaries at $400,000; Food production at $90,000, and Distribution at $22,000. The fixed costs in this situation would be

Accepted Answer

A) overhead, packaging, advertising, salaries, food production, and distribution 
B) overhead, packaging, advertising, salaries, and distribution 
C) overhead, advertising, distribution, and salaries 
D) overhead, advertising, and salaries 
E) overhead 
A) overhead, packaging, advertising, salaries, food production, and distribution 
B) overhead, packaging, advertising, salaries, and distribution 
C) overhead, advertising, distribution, and salaries 
D) overhead, advertising, and salaries 
E) overhead

Question 9

Scenario 20.1
Use the following to answer the questions.
Concession Supply sells hotdogs, buns, and nacho ingredients to several major league ballparks across the country. Currently, Concession Supply has the following pricing information for one case of hotdogs sold at Wrigley Field: Total fixed costs = $1,200, Selling price = $16, and Variable costs = $6.
-Refer to Scenario 20.1. What is the breakeven point in dollar sales volume?

Accepted Answer

A) $1,200 
B) $1,440 
C) $3,000 
D) $1,920 
E) $1,600 
A) $1,200 
B) $1,440 
C) $3,000 
D) $1,920 
E) $1,600

Question 10

Scenario 20.1
Use the following to answer the questions.
Concession Supply sells hotdogs, buns, and nacho ingredients to several major league ballparks across the country. Currently, Concession Supply has the following pricing information for one case of hotdogs sold at Wrigley Field: Total fixed costs = $1,200, Selling price = $16, and Variable costs = $6.
-Refer to Scenario 20.1. To break even, Concession Supply should sell ____ cases of hot dogs per day at Wrigley Field.

Accepted Answer

A) 13 
B) 120 
C) 40 
D) 200 
E) 60 
A) 13 
B) 120 
C) 40 
D) 200 
E) 60

Question 11

If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering 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

Nonprice competition can be used to establish brand loyalty.

Accepted Answer

A) True 
 B)False

Question 13

Demand depends only on the price of the product.

Accepted Answer

A) True 
 B)False

Question 14

Costs are a major issue when establishing price.

Accepted Answer

A) True 
 B)False

Question 15

With prestige products, a firm will always be able to sell more at a higher price.

Accepted Answer

A) True 
 B)False

Question 16

In the long run, the J. F. Smucker Company must view ____ as the absolute lowest price for its Jif brand peanut butter.

Accepted Answer

A) a 10 percent return on investment 
B) product development costs 
C) total costs 
D) advertising expenditures 
E) Nestlé's prices 
A) a 10 percent return on investment 
B) product development costs 
C) total costs 
D) advertising expenditures 
E) Nestlé's prices

Question 17

If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage, it is committing

Accepted Answer

A) price discrimination. 
B) price-consciousness. 
C) functional discounting. 
D) price competition. 
E) price fixing. 
A) price discrimination. 
B) price-consciousness. 
C) functional discounting. 
D) price competition. 
E) price fixing.

Question 18

A firm that competes on a price basis is unable to change prices frequently.

Accepted Answer

A) True 
 B)False

Question 19

If a company increased its price from $100 to $120 and the quantity demanded fell by 40 percent, the price elasticity of demand for this product is

Accepted Answer

A) 2. 
B) 1/2. 
C) -1/2. 
D) -2. 
E) 4. 
A) 2. 
B) 1/2. 
C) -1/2. 
D) -2. 
E) 4.

Question 20

How can transfer prices be calculated? Give three alternatives.

Accepted Answer

Transfer pricing refers to the pricing o

Knowing the target market's evaluation of price allows the marketer to know how much emphasis to place on price and how to price a product relative to competition.

For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded.

Why is the marginal revenue of a product important to the marketer?

Pricing decisions should be based on the marketer's previous marketing strategies for other successful products and on intuition.

Which of the following is most likely to have an inelastic demand curve?

Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Caterpillar is producing at the ____ point.

What are the implications of a downward-sloping demand curve?

If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ____ discount.

Nonprice competition can be used to establish brand loyalty.

Demand depends only on the price of the product.

Costs are a major issue when establishing price.

With prestige products, a firm will always be able to sell more at a higher price.

In the long run, the J. F. Smucker Company must view ____ as the absolute lowest price for its Jif brand peanut butter.

If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage, it is committing

A firm that competes on a price basis is unable to change prices frequently.

If a company increased its price from $100 to $120 and the quantity demanded fell by 40 percent, the price elasticity of demand for this product is

How can transfer prices be calculated? Give three alternatives.

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

Knowing the target market's evaluation of price allows the marketer to know how much emphasis to place on price and how to price a product relative to competition.

For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded.

Why is the marginal revenue of a product important to the marketer?

Pricing decisions should be based on the marketer's previous marketing strategies for other successful products and on intuition.

Which of the following is most likely to have an inelastic demand curve?

Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Caterpillar is producing at the ____ point.

What are the implications of a downward-sloping demand curve?

If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ____ discount.

Nonprice competition can be used to establish brand loyalty.

Demand depends only on the price of the product.

Costs are a major issue when establishing price.

With prestige products, a firm will always be able to sell more at a higher price.

In the long run, the J. F. Smucker Company must view ____ as the absolute lowest price for its Jif brand peanut butter.

If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage, it is committing

A firm that competes on a price basis is unable to change prices frequently.

If a company increased its price from $100 to $120 and the quantity demanded fell by 40 percent, the price elasticity of demand for this product is

How can transfer prices be calculated? Give three alternatives.

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