Question 1

A firm can survive in the long run only if its products are sold below cost.

Accepted Answer

A) True 
 B)False

Question 2

Tim O'Brien gets the invoice for a load of gravel he purchased last week. The price of the gravel was $55, and the terms are 2/10, n/45. If Tim pays the invoice in five weeks, he will owe

Accepted Answer

A) a penalty. 
B) $53.90. 
C) $56.10. 
D) $58.30. 
E) $55.00. 
A) a penalty. 
B) $53.90. 
C) $56.10. 
D) $58.30. 
E) $55.00.

Question 3

Price is considered to be the variable in the marketing mix that is

Accepted Answer

A) Least flexible. 
B) Most flexible. 
C) Most difficult. 
D) First to be decided. 
E) Last to be decided. 
A) Least flexible. 
B) Most flexible. 
C) Most difficult. 
D) First to be decided. 
E) Last to be decided.

Question 4

If a product has an inelastic demand and the manufacturer raises its price,

Accepted Answer

A) total revenue will increase. 
B) quantity demanded will decrease. 
C) the demand schedule will shift. 
D) the demand will become more inelastic. 
E) total revenue will decrease. 
A) total revenue will increase. 
B) quantity demanded will decrease. 
C) the demand schedule will shift. 
D) the demand will become more inelastic. 
E) total revenue will decrease.

Question 5

If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85, then

Accepted Answer

A) its marginal costs are falling. 
B) average total cost is at its maximum. 
C) average total costs are rising. 
D) demand is elastic. 
E) average total cost is at its lowest level. 
A) its marginal costs are falling. 
B) average total cost is at its maximum. 
C) average total costs are rising. 
D) demand is elastic. 
E) average total cost is at its lowest level.

Question 6

A certain location of O'Charley's Restaurant has annual fixed costs of $200,000. If an average tab at the restaurant is $60 and the variable costs per tab is $20, how many groups of customers must O'Charley's serve per year in order to break even?

Accepted Answer

A) 2,000 
B) 5,000 
C) 10,000 
D) 3,333 
E) 2,500 
A) 2,000 
B) 5,000 
C) 10,000 
D) 3,333 
E) 2,500

Question 7

A company trying to position itself as value oriented should not

Accepted Answer

A) set prices that are reasonable relative to product quality. 
B) use premium pricing for its products. 
C) set prices similar to those of its competitors. 
D) use any advertising for its products. 
E) consider costs when determining the price of products. 
A) set prices that are reasonable relative to product quality. 
B) use premium pricing for its products. 
C) set prices similar to those of its competitors. 
D) use any advertising for its products. 
E) consider costs when determining the price of products.

Question 8

Advertisements for Suave shampoos emphasize that other shampoos may cost more but don't work any better than Suave. In this example, Suave is competing on the basis of

Accepted Answer

A) product attributes. 
B) product performance. 
C) product price. 
D) available selection. 
E) product packaging. 
A) product attributes. 
B) product performance. 
C) product price. 
D) available selection. 
E) product packaging.

Question 9

Price elasticity of demand measures the sensitivity of demand to changes in price.

Accepted Answer

A) True 
 B)False

Question 10

Fixed costs vary with the number of units produced or sold.

Accepted Answer

A) True 
 B)False

Question 11

If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges, the retailer is paying a(n) ____ price.

Accepted Answer

A) F.O.B.destination 
B) F.O.B.factory 
C) transfer 
D) postage-stamp 
E) base-point 
A) F.O.B.destination 
B) F.O.B.factory 
C) transfer 
D) postage-stamp 
E) base-point

Question 12

Mars Petcare is one of the world's largest petfood manufacturers. If the strategic goal for Mars Petcare in the coming year was to ___________ in North America, it should use temporary price reductions.

Accepted Answer

A) increase the number of competitors. 
B) gain market share. 
C) decrease volume sold. 
D) increase revenue per item. 
E) decrease the number of competitors. 
A) increase the number of competitors. 
B) gain market share. 
C) decrease volume sold. 
D) increase revenue per item. 
E) decrease the number of competitors.

Question 13

How would pricing decisions differ for a business in an oligopolistic market structure as opposed to a monopolistic market structure?

Accepted Answer

The answer of How would pricing decisions differ for a...

Question 14

To determine the breakeven point in units, divide the fixed costs by

Accepted Answer

A) total costs. 
B) variable costs time price. 
C) price minus variable costs. 
D) price per unit. 
E) total revenue minus fixed costs. 
A) total costs. 
B) variable costs time price. 
C) price minus variable costs. 
D) price per unit. 
E) total revenue minus fixed costs.

Question 15

What do all of the following have in common: tuition, fee, premium, retainer, dues?

Accepted Answer

A) They are all usually paid in cash. 
B) They are forms of exchange similar to, but not identical with, money. 
C) They are forms of exchange similar to, but not identical with, barter. 
D) They are different terms for the concept of price. 
E) They have nothing in common. 
A) They are all usually paid in cash. 
B) They are forms of exchange similar to, but not identical with, money. 
C) They are forms of exchange similar to, but not identical with, barter. 
D) They are different terms for the concept of price. 
E) They have nothing in common.

Question 16

Marketers have no flexibility in setting prices under conditions of

Accepted Answer

A) a monopoly. 
B) an oligopoly. 
C) perfect competition. 
D) monopolistic competition. 
E) no competition. 
A) a monopoly. 
B) an oligopoly. 
C) perfect competition. 
D) monopolistic competition. 
E) no competition.

Question 17

F.O.B. factory denotes the price of the products at the factory. If the price is quoted as F.O.B. shipping, then shipping costs are paid by the seller.

Accepted Answer

A) True 
 B)False

Question 18

How can the price at which a new product is introduced influence the entrance of competition into a market?

Accepted Answer

The price at which a new product is intr

Question 19

The value of an idea cannot be assessed by price.

Accepted Answer

A) True 
 B)False

Question 20

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. If Concession Supply wanted to make a profit of $800 on each case, it would need to sell ____ cases.

Accepted Answer

A) 150 
B) 300 
C) 100 
D) 75 
E) 200 
A) 150 
B) 300 
C) 100 
D) 75 
E) 200

A firm can survive in the long run only if its products are sold below cost.

Tim O'Brien gets the invoice for a load of gravel he purchased last week. The price of the gravel was $55, and the terms are 2/10, n/45. If Tim pays the invoice in five weeks, he will owe

Price is considered to be the variable in the marketing mix that is

If a product has an inelastic demand and the manufacturer raises its price,

If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85, then

A certain location of O'Charley's Restaurant has annual fixed costs of $200,000. If an average tab at the restaurant is $60 and the variable costs per tab is $20, how many groups of customers must O'Charley's serve per year in order to break even?

A company trying to position itself as value oriented should not

Advertisements for Suave shampoos emphasize that other shampoos may cost more but don't work any better than Suave. In this example, Suave is competing on the basis of

Price elasticity of demand measures the sensitivity of demand to changes in price.

Fixed costs vary with the number of units produced or sold.

If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges, the retailer is paying a(n) ____ price.

Mars Petcare is one of the world's largest petfood manufacturers. If the strategic goal for Mars Petcare in the coming year was to ___________ in North America, it should use temporary price reductions.

How would pricing decisions differ for a business in an oligopolistic market structure as opposed to a monopolistic market structure?

To determine the breakeven point in units, divide the fixed costs by

What do all of the following have in common: tuition, fee, premium, retainer, dues?

Marketers have no flexibility in setting prices under conditions of

F.O.B. factory denotes the price of the products at the factory. If the price is quoted as F.O.B. shipping, then shipping costs are paid by the seller.

How can the price at which a new product is introduced influence the entrance of competition into a market?

The value of an idea cannot be assessed by price.

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

A firm can survive in the long run only if its products are sold below cost.

Tim O'Brien gets the invoice for a load of gravel he purchased last week. The price of the gravel was $55, and the terms are 2/10, n/45. If Tim pays the invoice in five weeks, he will owe

Price is considered to be the variable in the marketing mix that is

If a product has an inelastic demand and the manufacturer raises its price,

If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85, then

A certain location of O'Charley's Restaurant has annual fixed costs of $200,000. If an average tab at the restaurant is $60 and the variable costs per tab is $20, how many groups of customers must O'Charley's serve per year in order to break even?

A company trying to position itself as value oriented should not

Advertisements for Suave shampoos emphasize that other shampoos may cost more but don't work any better than Suave. In this example, Suave is competing on the basis of

Price elasticity of demand measures the sensitivity of demand to changes in price.

Fixed costs vary with the number of units produced or sold.

If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges, the retailer is paying a(n) ____ price.

Mars Petcare is one of the world's largest petfood manufacturers. If the strategic goal for Mars Petcare in the coming year was to ___________ in North America, it should use temporary price reductions.

How would pricing decisions differ for a business in an oligopolistic market structure as opposed to a monopolistic market structure?

To determine the breakeven point in units, divide the fixed costs by

What do all of the following have in common: tuition, fee, premium, retainer, dues?

Marketers have no flexibility in setting prices under conditions of

F.O.B. factory denotes the price of the products at the factory. If the price is quoted as F.O.B. shipping, then shipping costs are paid by the seller.

How can the price at which a new product is introduced influence the entrance of competition into a market?

The value of an idea cannot be assessed by price.

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