Question 1

Companies using target costing ________.

Accepted Answer

A)  first design a new product and then determine its cost 
B)  tailor their products to be in line with the marketing mix 
C)  routinely neglect customer value considerations 
D)  avoid determining an ideal selling price until analyzing test market results 
E)  start with an ideal selling price and then target costs that will ensure that the price is met 
A)  first design a new product and then determine its cost 
B)  tailor their products to be in line with the marketing mix 
C)  routinely neglect customer value considerations 
D)  avoid determining an ideal selling price until analyzing test market results 
E)  start with an ideal selling price and then target costs that will ensure that the price is met E

Question 2

Which of the following is most likely a fixed cost?

Accepted Answer

A)  sales representative commissions 
B)  product distribution costs 
C)  manufacturing input costs 
D)  temporary worker salaries 
E)  facility rental payments 
A)  sales representative commissions 
B)  product distribution costs 
C)  manufacturing input costs 
D)  temporary worker salaries 
E)  facility rental payments E

Question 3

The fixed cost in manufacturing a single LED monitor is $40 and the variable cost is $12. If the company expects to manufacture 5,000 monitors, the total costs would be ________.

Accepted Answer

A)  $60,000 
B)  $200,000 
C)  $260,000 
D)  $420,000 
E)  $500,000 
A)  $60,000 
B)  $200,000 
C)  $260,000 
D)  $420,000 
E)  $500,000 C

Question 4

Why is markup pricing most likely impractical?

Accepted Answer

A)  Calculating costs is complicated due to fluctuations. 
B)  By tying the price to cost, sellers oversimplify pricing. 
C)  When all firms in the industry use this pricing method, prices tend to be similar. 
D)  The method ignores demand and competitor prices. 
E)  With a standard markup, consumers know when they are being overcharged. 
A)  Calculating costs is complicated due to fluctuations. 
B)  By tying the price to cost, sellers oversimplify pricing. 
C)  When all firms in the industry use this pricing method, prices tend to be similar. 
D)  The method ignores demand and competitor prices. 
E)  With a standard markup, consumers know when they are being overcharged.

Question 5

Which of the following is true about the demand curve?

Accepted Answer

A)  A demand curve indicates the drop in the average per-unit production cost that comes with accumulated production experience. 
B)  A demand curve indicates the cost per unit of output in the long run. 
C)  A demand curve indicates the cost per unit of output in the short run. 
D)  In a monopoly, the demand curve does not indicate the total market demand resulting from different prices. 
E)  A demand curve shows the number of units the market will buy in a given time period at different prices that might be charged. 
A)  A demand curve indicates the drop in the average per-unit production cost that comes with accumulated production experience. 
B)  A demand curve indicates the cost per unit of output in the long run. 
C)  A demand curve indicates the cost per unit of output in the short run. 
D)  In a monopoly, the demand curve does not indicate the total market demand resulting from different prices. 
E)  A demand curve shows the number of units the market will buy in a given time period at different prices that might be charged.

Question 6

The Great Recession of 2008 to 2009 triggered a shift in consumer attitudes toward ________.

Accepted Answer

A)  variety and price 
B)  perceptions of value 
C)  locations of stores 
D)  price and quality 
E)  economic data 
A)  variety and price 
B)  perceptions of value 
C)  locations of stores 
D)  price and quality 
E)  economic data

Question 7

________ is the only element in the marketing mix that produces revenue.

Accepted Answer

A)  Price 
B)  Product 
C)  Place 
D)  Fixed costs 
E)  Variable costs 
A)  Price 
B)  Product 
C)  Place 
D)  Fixed costs 
E)  Variable costs

Question 8

With accumulated production experience and a higher volume of production, companies not only become more efficient but also ________.

Accepted Answer

A)  gain economies of scale 
B)  incur higher overhead costs 
C)  create derived demand in the market 
D)  spend more per unit of produced output 
E)  tend to routinely spend less on inputs 
A)  gain economies of scale 
B)  incur higher overhead costs 
C)  create derived demand in the market 
D)  spend more per unit of produced output 
E)  tend to routinely spend less on inputs

Question 9

Samsung Mobile plans to launch a new phone with a unit cost of $270 and wants to earn a 10 percent markup on its sales. Samsung's markup price is ________.

Accepted Answer

A)  $275 
B)  $280 
C)  $295 
D)  $300 
E)  $335 
A)  $275 
B)  $280 
C)  $295 
D)  $300 
E)  $335

Question 10

Who typically sets prices in large and small companies?

Accepted Answer

In small companies, prices are

Question 11

________ pricing refers to offering just the right combination of quality and gratifying service at a fair price.

Accepted Answer

A)  Markup 
B)  Good-value 
C)  Cost-plus 
D)  Target profit 
E)  Break-even 
A)  Markup 
B)  Good-value 
C)  Cost-plus 
D)  Target profit 
E)  Break-even

Question 12

Which of the following is true with regard to price?

Accepted Answer

A)  Historically, price has had the least perceptible impact on buyer choice. 
B)  Price is the least flexible element in the marketing mix. 
C)  Unlike product features and channel commitments, prices cannot be changed quickly. 
D)  Price is the sum of all the values that customers give up to gain the benefits of having a product. 
E)  Prices only have an indirect impact on a firm's bottom line. 
A)  Historically, price has had the least perceptible impact on buyer choice. 
B)  Price is the least flexible element in the marketing mix. 
C)  Unlike product features and channel commitments, prices cannot be changed quickly. 
D)  Price is the sum of all the values that customers give up to gain the benefits of having a product. 
E)  Prices only have an indirect impact on a firm's bottom line.

Question 13

Define price. Discuss its importance.

Accepted Answer

In the narrowest sense, price is the amo

Question 14

Explain price elasticity. What determines the elasticity of demand?

Accepted Answer

Price elasticity refers to a measure of

Question 15

Explain break-even pricing.

Accepted Answer

Break-even pricing (target return pricin

Question 16

Costs that change with the level of production are referred to as ________.

Accepted Answer

A)  fixed costs 
B)  variable costs 
C)  target costs 
D)  total costs 
E)  overhead costs 
A)  fixed costs 
B)  variable costs 
C)  target costs 
D)  total costs 
E)  overhead costs

Question 17

A demand curve shows the number of units the market will buy in a given time period at different prices that could be charged.

Accepted Answer

A) True 
 B)False

Question 18

A pharmaceutical company in Utah recently released a new and expensive anti-ulcer drug in the market. The company justifies the high price of the drug by claiming that it is highly effective for treating all kinds of ulcers. The company also claims that the new drug will help bring down the need for invasive surgeries, an additional benefit for patients. Which of the following pricing strategies is the pharmaceutical company most likely using in this instance?

Accepted Answer

A)  target pricing 
B)  markup pricing 
C)  cost-based pricing 
D)  value-based pricing 
E)  break-even pricing 
A)  target pricing 
B)  markup pricing 
C)  cost-based pricing 
D)  value-based pricing 
E)  break-even pricing

Question 19

Which of the following is true with regard to monopolistic competition?

Accepted Answer

A)  Under monopolistic competition, the market consists of many buyers and sellers who trade at a single market price. 
B)  Under monopolistic competition, the market consists of only a few large sellers. 
C)  In a monopolistic market, little time is spent on marketing strategy. 
D)  Sellers can differentiate their products to buyers. 
E)  In a monopolistic market, price becomes a major competitive tool. 
A)  Under monopolistic competition, the market consists of many buyers and sellers who trade at a single market price. 
B)  Under monopolistic competition, the market consists of only a few large sellers. 
C)  In a monopolistic market, little time is spent on marketing strategy. 
D)  Sellers can differentiate their products to buyers. 
E)  In a monopolistic market, price becomes a major competitive tool.

Question 20

Experience-curve pricing assumes that ________.

Accepted Answer

A)  competitors are weak and not willing to match price cuts 
B)  competitors are strong and invincible 
C)  aggressive pricing adversely affects product image 
D)  volume-based production slows down organizational learning 
E)  lower-cost technologies are almost always inferior 
A)  competitors are weak and not willing to match price cuts 
B)  competitors are strong and invincible 
C)  aggressive pricing adversely affects product image 
D)  volume-based production slows down organizational learning 
E)  lower-cost technologies are almost always inferior

Companies using target costing ________.

Which of the following is most likely a fixed cost?

The fixed cost in manufacturing a single LED monitor is $40 and the variable cost is $12. If the company expects to manufacture 5,000 monitors, the total costs would be ________.

Why is markup pricing most likely impractical?

Which of the following is true about the demand curve?

The Great Recession of 2008 to 2009 triggered a shift in consumer attitudes toward ________.

________ is the only element in the marketing mix that produces revenue.

With accumulated production experience and a higher volume of production, companies not only become more efficient but also ________.

Samsung Mobile plans to launch a new phone with a unit cost of $270 and wants to earn a 10 percent markup on its sales. Samsung's markup price is ________.

Who typically sets prices in large and small companies?

________ pricing refers to offering just the right combination of quality and gratifying service at a fair price.

Which of the following is true with regard to price?

Define price. Discuss its importance.

Explain price elasticity. What determines the elasticity of demand?

Explain break-even pricing.

Costs that change with the level of production are referred to as ________.

A demand curve shows the number of units the market will buy in a given time period at different prices that could be charged.

Which of the following is true with regard to monopolistic competition?

Experience-curve pricing assumes that ________.

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Buyer Behavior

Business Markets and Business Buyer Behavior

Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Pricing Strategies: Additional Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

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Exam 10: Pricing: Understanding and Capturing Customer Value

Companies using target costing ________.

Which of the following is most likely a fixed cost?

The fixed cost in manufacturing a single LED monitor is $40 and the variable cost is $12. If the company expects to manufacture 5,000 monitors, the total costs would be ________.

Why is markup pricing most likely impractical?

Which of the following is true about the demand curve?

The Great Recession of 2008 to 2009 triggered a shift in consumer attitudes toward ________.

________ is the only element in the marketing mix that produces revenue.

With accumulated production experience and a higher volume of production, companies not only become more efficient but also ________.

Samsung Mobile plans to launch a new phone with a unit cost of $270 and wants to earn a 10 percent markup on its sales. Samsung's markup price is ________.

Who typically sets prices in large and small companies?

________ pricing refers to offering just the right combination of quality and gratifying service at a fair price.

Which of the following is true with regard to price?

Define price. Discuss its importance.

Explain price elasticity. What determines the elasticity of demand?

Explain break-even pricing.

Costs that change with the level of production are referred to as ________.

A demand curve shows the number of units the market will buy in a given time period at different prices that could be charged.

Which of the following is true with regard to monopolistic competition?

Experience-curve pricing assumes that ________.

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Buyer Behavior

Business Markets and Business Buyer Behavior

Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Pricing Strategies: Additional Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters