Question 1

What a price means or what it communicates to customers is called

Accepted Answer

A) reference. 
B) response. 
C) interpretation. 
D) internalization. 
E) signaling. 
A) reference. 
B) response. 
C) interpretation. 
D) internalization. 
E) signaling.

Question 2

When marketers emphasize price as an issue and match or beat the prices of other companies, they are using

Accepted Answer

A) price competition. 
B) nonprice competition. 
C) comparative pricing strategies. 
D) demand-based pricing. 
E) supply-based pricing. 
A) price competition. 
B) nonprice competition. 
C) comparative pricing strategies. 
D) demand-based pricing. 
E) supply-based pricing.

Question 3

The amount of profit a channel member expects depends on

Accepted Answer

A) the amount of discounts for large orders provided by the producers. 
B) the number of channel support activities provided by the producers. 
C) what the intermediary could earn if it were handling a competing product instead. 
D) the type of distribution channels involved. 
E) the amount of effort required to carry the product. 
A) the amount of discounts for large orders provided by the producers. 
B) the number of channel support activities provided by the producers. 
C) what the intermediary could earn if it were handling a competing product instead. 
D) the type of distribution channels involved. 
E) the amount of effort required to carry the product.

Question 4

Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing

Accepted Answer

A) product competition. 
B) nonprice competition. 
C) brand differentiation. 
D) price competition. 
E) competitor differentiation. 
A) product competition. 
B) nonprice competition. 
C) brand differentiation. 
D) price competition. 
E) competitor differentiation.

Question 5

If Pacific Power and Light increased its rates 10 percent and experienced only a 2 percent reduction in the demand for power, the demand would be

Accepted Answer

A) elastic. 
B) prestige. 
C) common. 
D) horizontal. 
E) inelastic. 
A) elastic. 
B) prestige. 
C) common. 
D) horizontal. 
E) inelastic.

Question 6

Barter is the oldest form of exchange.

Accepted Answer

A) True 
 B)False

Question 7

Pricing decisions can be based on determining whether the demand for a product is price elastic or price inelastic.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) They all must be 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 all must be 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 9

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

Accepted Answer

A) True 
 B)False

Question 10

Customers always interpret a higher price to mean higher quality.

Accepted Answer

A) True 
 B)False

Question 11

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 12

Which of the following statements about nonprice competition is false?

Accepted Answer

A) Companies that use nonprice competition do not need to keep track of their competitor's prices. 
B) A company must be able to distinguish its brand through some unique feature in order to successfully engage in nonprice competition. 
C) A firm using nonprice competition can build loyalty to both its company and its products. 
D) When using nonprice competition, a company should promote the distinguishing characteristics of its brand. 
E) Buyers must view the distinguishing characteristics of a product offered through nonprice competition as being important. 
A) Companies that use nonprice competition do not need to keep track of their competitor's prices. 
B) A company must be able to distinguish its brand through some unique feature in order to successfully engage in nonprice competition. 
C) A firm using nonprice competition can build loyalty to both its company and its products. 
D) When using nonprice competition, a company should promote the distinguishing characteristics of its brand. 
E) Buyers must view the distinguishing characteristics of a product offered through nonprice competition as being important.

Question 13

Which of the following is most likely to be a fixed cost?

Accepted Answer

A) Component parts 
B) Raw materials 
C) Rent 
D) Electricity 
E) Transportation 
A) Component parts 
B) Raw materials 
C) Rent 
D) Electricity 
E) Transportation

Question 14

Which of the following is not a major factor for firms making price decisions?

Accepted Answer

A) Costs 
B) Competition 
C) Previous sales 
D) Channel member expectations 
E) Legal and regulatory issues 
A) Costs 
B) Competition 
C) Previous sales 
D) Channel member expectations 
E) Legal and regulatory issues

What a price means or what it communicates to customers is called

When marketers emphasize price as an issue and match or beat the prices of other companies, they are using

The amount of profit a channel member expects depends on

Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing

If Pacific Power and Light increased its rates 10 percent and experienced only a 2 percent reduction in the demand for power, the demand would be

Barter is the oldest form of exchange.

Pricing decisions can be based on determining whether the demand for a product is price elastic or price inelastic.

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

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

Customers always interpret a higher price to mean higher quality.

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.

Which of the following statements about nonprice competition is false?

Which of the following is most likely to be a fixed cost?

Which of the following is not a major factor for firms making price decisions?

Customer-Driven Strategic Marketing

Planning Marketing Strategies

The Marketing Environment, Social Responsibility, and Ethics

Marketing Research and Information Systems

Target Market Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

E-Marketing, Digital Media, and Social Networking

Product, Branding, and Packaging Concepts

Developing and Managing Goods and Services

Pricing Management

A:marketing Channels and Supply-Chain Management

B:marketing Channels and Supply-Chain Management

A:retailing, Direct Marketing, and Wholesaling

B:retailing, Direct Marketing, and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Filters

Exam 12: Pricing Concepts

What a price means or what it communicates to customers is called

When marketers emphasize price as an issue and match or beat the prices of other companies, they are using

The amount of profit a channel member expects depends on

Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing

If Pacific Power and Light increased its rates 10 percent and experienced only a 2 percent reduction in the demand for power, the demand would be

Barter is the oldest form of exchange.

Pricing decisions can be based on determining whether the demand for a product is price elastic or price inelastic.

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

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

Customers always interpret a higher price to mean higher quality.

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.

Which of the following statements about nonprice competition is false?

Which of the following is most likely to be a fixed cost?

Which of the following is not a major factor for firms making price decisions?

Customer-Driven Strategic Marketing

Planning Marketing Strategies

The Marketing Environment, Social Responsibility, and Ethics

Marketing Research and Information Systems

Target Market Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

E-Marketing, Digital Media, and Social Networking

Product, Branding, and Packaging Concepts

Developing and Managing Goods and Services

Pricing Management

A:marketing Channels and Supply-Chain Management

B:marketing Channels and Supply-Chain Management

A:retailing, Direct Marketing, and Wholesaling

B:retailing, Direct Marketing, and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Filters