Question 1

The maximum quantity of products consumers will buy at given price is shown by a

Accepted Answer

A) demand curve. 
B) price constraint. 
C) break-even point. 
D) supply curve. 
E) marginal revenue curve. 
A) demand curve. 
B) price constraint. 
C) break-even point. 
D) supply curve. 
E) marginal revenue curve.

Question 2

A demand curve is a graph that relates

Accepted Answer

A) the quantity sold and price,which shows the maximum number of units that will be sold at a given price. 
B) revenues and costs,which shows the minimum number of units that must be sold to break even. 
C) the quantity sold and revenues,which shows the minimum number of units that must be sold in order to make a profit. 
D) total production costs to various price points in order to determine how many units must be sold in order to realize a predetermined profit. 
E) primary demand to selective demand,which shows the growth of the market compared to change in market share. 
A) the quantity sold and price,which shows the maximum number of units that will be sold at a given price. 
B) revenues and costs,which shows the minimum number of units that must be sold to break even. 
C) the quantity sold and revenues,which shows the minimum number of units that must be sold in order to make a profit. 
D) total production costs to various price points in order to determine how many units must be sold in order to realize a predetermined profit. 
E) primary demand to selective demand,which shows the growth of the market compared to change in market share.

Question 3

The executive vice president of Washburn Guitars has set a sales target of 2,000 units for a new line of guitars.This type of objective is a ________ pricing objective.

Accepted Answer

A) profit 
B) target return 
C) unit volume 
D) market share 
E) survival 
A) profit 
B) target return 
C) unit volume 
D) market share 
E) survival

Question 4

All of the following statements about price are true except which?

Accepted Answer

A) Small changes in price can have big effects on both the number of units sold and company profit. 
B) The price for a product or service must earn a profit for the company. 
C) For most products and services,there is an agreed-upon price range set by makers. 
D) The price must be "right"-in the sense that customers must be willing to pay it. 
E) The price must generate enough sales dollars to pay for the cost of developing,producing,and marketing the product. 
A) Small changes in price can have big effects on both the number of units sold and company profit. 
B) The price for a product or service must earn a profit for the company. 
C) For most products and services,there is an agreed-upon price range set by makers. 
D) The price must be "right"-in the sense that customers must be willing to pay it. 
E) The price must generate enough sales dollars to pay for the cost of developing,producing,and marketing the product.

Question 5

________ are factors that limit the range of prices a firm may set.

Accepted Answer

A) Price boundary conditions 
B) Pricing constraints 
C) Price elasticities 
D) Pricing demands 
E) Pricing margins 
A) Price boundary conditions 
B) Pricing constraints 
C) Price elasticities 
D) Pricing demands 
E) Pricing margins

Question 6

In which type of industry would a marketing director be most likely to say,"We have to let the customer know that our product is the only one that comes with its own tracking device"?

Accepted Answer

A) pure monopoly 
B) oligopoly 
C) pure competition 
D) monopolistic oligopoly 
E) monopolistic competition 
A) pure monopoly 
B) oligopoly 
C) pure competition 
D) monopolistic oligopoly 
E) monopolistic competition

Question 7

The total expense incurred by a firm in producing and marketing a product,which equals the sum of fixed cost and variable cost,is referred to as

Accepted Answer

A) overhead cost. 
B) total cost. 
C) unit cost. 
D) average cost. 
E) marginal cost. 
A) overhead cost. 
B) total cost. 
C) unit cost. 
D) average cost. 
E) marginal cost.

Question 8

When Pizza Hut announced it was going to add 25 percent more toppings to its Meat Lover's line of pizzas without increasing prices,consumers benefited from an increase in what?

Accepted Answer

A) cost 
B) appearance 
C) value 
D) price 
E) quality 
A) cost 
B) appearance 
C) value 
D) price 
E) quality

Question 9

The vertical axis of a demand curve graph represents

Accepted Answer

A) market growth rate. 
B) relative market share. 
C) price per unit. 
D) potential profit in dollars. 
E) quantity demanded. 
A) market growth rate. 
B) relative market share. 
C) price per unit. 
D) potential profit in dollars. 
E) quantity demanded.

Question 10

To reduce the price sensitivity for some of its products,Washburn Guitars

Accepted Answer

A) uses multiple suppliers for its raw materials. 
B) offers three months of free music lessons with the purchase of each guitar. 
C) uses endorsements by internationally known musicians who play Washburn signature guitars. 
D) offers a lifetime,unconditional warranty on all its instruments regardless of the price of its guitars. 
E) sponsors free music programs and special Washburn guitar camps for children. 
A) uses multiple suppliers for its raw materials. 
B) offers three months of free music lessons with the purchase of each guitar. 
C) uses endorsements by internationally known musicians who play Washburn signature guitars. 
D) offers a lifetime,unconditional warranty on all its instruments regardless of the price of its guitars. 
E) sponsors free music programs and special Washburn guitar camps for children.

Question 11

Mrs.Renfro's,Inc. ,sells 25 different relishes in 45 states.Mrs.Renfro's chipotle corn salsa is so popular that the company cannot make enough to keep its resellers stocked.Its price of $4.50 for a jar seems just right to consumers who savor its hot and spicy taste.The popularity of hot and spicy food is an example of a ________ that Mrs.Renfro's has taken advantage of to make its product a success.

Accepted Answer

A) barter factor 
B) demand factor 
C) supply factor 
D) consumer index 
E) macroeconomic environmental factor 
A) barter factor 
B) demand factor 
C) supply factor 
D) consumer index 
E) macroeconomic environmental factor

Question 12

Some firms pursue a ________ pricing objective to generate cash to ward off bankruptcy.

Accepted Answer

A) market share 
B) survival 
C) sales revenue 
D) single product line 
E) profit 
A) market share 
B) survival 
C) sales revenue 
D) single product line 
E) profit

Question 13

The marketplace sets the price for wheat,so farmers who are trying to sell their wheat crops do not need a pricing strategy and do just a little advertising when a crop comes in.The wheat is sold in a(n)________ type of competitive market.

Accepted Answer

A) oligopoly 
B) pure monopoly 
C) pure competition 
D) monopolistic competition 
E) monopolistic oligopoly 
A) oligopoly 
B) pure monopoly 
C) pure competition 
D) monopolistic competition 
E) monopolistic oligopoly

Question 14

A primary reason for Washburn Guitars' success is

Accepted Answer

A) underselling competitors by mass-producing fine-quality guitars. 
B) developing product lines at different price points for different market segments. 
C) offering significant price breaks to well-known performers in exchange for product endorsements. 
D) selling traditional American "rock 'n roll" guitars in global markets. 
E) setting up free music programs and donating low-price-point guitars to students in schools that have lost their music programs due to budget constraints. 
A) underselling competitors by mass-producing fine-quality guitars. 
B) developing product lines at different price points for different market segments. 
C) offering significant price breaks to well-known performers in exchange for product endorsements. 
D) selling traditional American "rock 'n roll" guitars in global markets. 
E) setting up free music programs and donating low-price-point guitars to students in schools that have lost their music programs due to budget constraints.

Question 15

Which of the following statements would most likely be spoken by someone in the midst of estimating demand and revenue in the price-setting process?

Accepted Answer

A) "It's important to offer discounts to seniors." 
B) "We have to try to achieve an 8 percent profit share." 
C) "The starting price should be $4.99 and we can raise the price again in six months." 
D) "But,if we increase the price even by $1,how many customers will we lose?" 
E) "We should probably price the extra-large version somewhere between $600 and $650." 
A) "It's important to offer discounts to seniors." 
B) "We have to try to achieve an 8 percent profit share." 
C) "The starting price should be $4.99 and we can raise the price again in six months." 
D) "But,if we increase the price even by $1,how many customers will we lose?" 
E) "We should probably price the extra-large version somewhere between $600 and $650."

Question 16

In order to deliver a product that the average consumer can afford,VIZIO

Accepted Answer

A) handles product design and marketing in the United States and relies on contract manufacturers in other countries to build the product. 
B) uses mass customization in other countries and then ships the HDTVs to the United States. 
C) purchased a small company in China to distribute its products under the VIZIO name. 
D) purchased a small company in Japan to distribute its products under the VIZIO name. 
E) relies solely on recycled materials to build high-quality,no-frills products. 
A) handles product design and marketing in the United States and relies on contract manufacturers in other countries to build the product. 
B) uses mass customization in other countries and then ships the HDTVs to the United States. 
C) purchased a small company in China to distribute its products under the VIZIO name. 
D) purchased a small company in Japan to distribute its products under the VIZIO name. 
E) relies solely on recycled materials to build high-quality,no-frills products.

Question 17

The use of "special fees" and "surcharges" is driven by consumers' zeal for ________ combined with the ease of making price comparisons on the Internet.

Accepted Answer

A) readily accessible information 
B) low prices 
C) quality 
D) value 
E) warranties 
A) readily accessible information 
B) low prices 
C) quality 
D) value 
E) warranties

Question 18

According to the price equation,final price equals list price minus ________ plus extra fees.

Accepted Answer

A) profits 
B) commissions 
C) trade-ins 
D) taxes 
E) incentives and allowances 
A) profits 
B) commissions 
C) trade-ins 
D) taxes 
E) incentives and allowances

Question 19

Pricing constraints refers to

Accepted Answer

A) barriers that must be overcome in order to set pricing objectives. 
B) competitive pricing advantages one firm has over another. 
C) different pricing strategies for each of the firm's products. 
D) factors that limit the range of prices a firm may set. 
E) barriers to entry a firm faces when launching a new product. 
A) barriers that must be overcome in order to set pricing objectives. 
B) competitive pricing advantages one firm has over another. 
C) different pricing strategies for each of the firm's products. 
D) factors that limit the range of prices a firm may set. 
E) barriers to entry a firm faces when launching a new product.

Question 20

RadioShack,an electronics retail chain,couldn't compete with the prices offered by other retailers.The company enacted price matching programs and promoted large discounts on its merchandise to raise cash and hopefully stave off bankruptcy.The best pricing objective at this point for RadioShack most likely was

Accepted Answer

A) profit. 
B) market share. 
C) unit volume. 
D) survival. 
E) social responsibility. 
A) profit. 
B) market share. 
C) unit volume. 
D) survival. 
E) social responsibility.

Exam 13: Building the Price Foundation

The maximum quantity of products consumers will buy at given price is shown by a

A demand curve is a graph that relates

The executive vice president of Washburn Guitars has set a sales target of 2,000 units for a new line of guitars.This type of objective is a ________ pricing objective.

All of the following statements about price are true except which?

________ are factors that limit the range of prices a firm may set.

In which type of industry would a marketing director be most likely to say,"We have to let the customer know that our product is the only one that comes with its own tracking device"?

The total expense incurred by a firm in producing and marketing a product,which equals the sum of fixed cost and variable cost,is referred to as

When Pizza Hut announced it was going to add 25 percent more toppings to its Meat Lover's line of pizzas without increasing prices,consumers benefited from an increase in what?

The vertical axis of a demand curve graph represents

To reduce the price sensitivity for some of its products,Washburn Guitars

Some firms pursue a ________ pricing objective to generate cash to ward off bankruptcy.

The marketplace sets the price for wheat,so farmers who are trying to sell their wheat crops do not need a pricing strategy and do just a little advertising when a crop comes in.The wheat is sold in a(n)________ type of competitive market.

A primary reason for Washburn Guitars' success is

Which of the following statements would most likely be spoken by someone in the midst of estimating demand and revenue in the price-setting process?

In order to deliver a product that the average consumer can afford,VIZIO

The use of "special fees" and "surcharges" is driven by consumers' zeal for ________ combined with the ease of making price comparisons on the Internet.

According to the price equation,final price equals list price minus ________ plus extra fees.

Pricing constraints refers to

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation, targeting, and Positioning

Developing New Products and Services

Managing Successful Products, services, and Brands

Services Marketing

Arriving at the Final Price

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising,sales Promotion,and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multichannel Marketing

Pulling It All Together: the Strategic Marketing Process

Writing Successful Marketing and Business Plans: Tips and Guidelines

Financial Statements and Ratios

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