Question 1

Both the Federal Trade Commission Act and the Wheeler-Lea Act prohibit

Accepted Answer

A) freezing prices. 
B) independent pricing policies. 
C) deceptive pricing. 
D) price fixing. 
E) price differentials. 
A) freezing prices. 
B) independent pricing policies. 
C) deceptive pricing. 
D) price fixing. 
E) price differentials.

Question 2

When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on

Accepted Answer

A) internal reference prices. 
B) symbol prices. 
C) high value products. 
D) discounted reference prices. 
E) external reference prices. 
A) internal reference prices. 
B) symbol prices. 
C) high value products. 
D) discounted reference prices. 
E) external reference prices.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Comparison of various prices and various breakeven points will tell the marketer exactly what price to charge.

Accepted Answer

A) True 
 B)False

Question 5

Marketers have more difficulty adjusting their prices than they do any other marketing mix variable.

Accepted Answer

A) True 
 B)False

Question 6

The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line. Its basic promotional tool is the discount. These discounts offered to middlemen for performing certain channel activities are referred to as ____ discounts.

Accepted Answer

A) trade 
B) cumulative 
C) noncumulative 
D) push 
E) intermediary 
A) trade 
B) cumulative 
C) noncumulative 
D) push 
E) intermediary

Question 7

Dividing the percentage change in quantity demanded by the percentage change in price gives the

Accepted Answer

A) prestige demand curve. 
B) breakeven point. 
C) marginal cost curve. 
D) price sensitivity curve. 
E) price elasticity of demand. 
A) prestige demand curve. 
B) breakeven point. 
C) marginal cost curve. 
D) price sensitivity curve. 
E) price elasticity of demand.

Question 8

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 9

Pricing whereby the buyer absorbs all or part of the freight costs is freight absorption pricing.

Accepted Answer

A) True 
 B)False

Question 10

A customer looking for the lowest price on a mattress without concern for the quality of the mattress or the status gained by buying and using a certain brand is a price-conscious customer.

Accepted Answer

A) True 
 B)False

Question 11

Scenario 12.2
Use the following to answer the questions.
The BASF Chemical Company in Germany has developed a new rubberized coating. The product has an application for cell phones and other hand-held electronic devices that gives them protection from falls and scratches. BASF plans to market the product directly to businesses that manufacture the casings for these types of products. BASF currently uses a system of salespeople headquartered in Germany, while its primary business customers are in China.
-Refer to Scenario 12.2. BASF is considering the problem of actual distance in delivering its product from the plant in Germany to some of its customers in China. Which pricing strategy would help overcome this problem?

Accepted Answer

A) Geographic 
B) Transfer 
C) Commercial 
D) Transit 
E) Factory 
A) Geographic 
B) Transfer 
C) Commercial 
D) Transit 
E) Factory

Question 12

What are the differences among value-conscious, price-conscious, and prestige-sensitive customers?

Accepted Answer

The answer of What are the differences among value-conscious, price-conscious,...

Question 13

If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the

Accepted Answer

A) quantity demanded goes down. 
B) demand remains constant. 
C) quantity demanded increases. 
D) demand increases. 
E) breakeven increases. 
A) quantity demanded goes down. 
B) demand remains constant. 
C) quantity demanded increases. 
D) demand increases. 
E) breakeven increases.

Question 14

Suppose that the frozen foods division of Swanson purchases food trays and boxes from the packaging division. The form of pricing used to charge the frozen foods division is called

Accepted Answer

A) zone pricing. 
B) base-point pricing. 
C) business-unit pricing. 
D) transfer pricing. 
E) price discrimination. 
A) zone pricing. 
B) base-point pricing. 
C) business-unit pricing. 
D) transfer pricing. 
E) price discrimination.

Question 15

Below the breakeven point, a firm is operating

Accepted Answer

A) with fixed costs only. 
B) with minimal variable costs. 
C) with no revenue. 
D) profitably. 
E) at a loss. 
A) with fixed costs only. 
B) with minimal variable costs. 
C) with no revenue. 
D) profitably. 
E) at a loss.

Question 16

The purpose of the pricing concept is to quantify and express the value of items in a market exchange.

Accepted Answer

A) True 
 B)False

Question 17

Marginal revenue is the change in total revenue that occurs when a firm sells an additional unit of product.

Accepted Answer

A) True 
 B)False

Question 18

To gain market share, when Hyundai first entered the U.S. car market it did so with a comparatively low price strategy. One of the negative side effects of making this pricing decision is

Accepted Answer

A) a negative impact on consumers' perceptions of quality. 
B) competitive matching. 
C) a high return on investment level affecting tax balances owed. 
D) poor survival chances. 
E) higher developmental costs. 
A) a negative impact on consumers' perceptions of quality. 
B) competitive matching. 
C) a high return on investment level affecting tax balances owed. 
D) poor survival chances. 
E) higher developmental costs.

Question 19

Which factor is least likely to affect pricing decisions?

Accepted Answer

A) Competitive prices 
B) Legal and regulatory issues 
C) Organizational and marketing objectives 
D) Customers' interpretation and response 
E) Shifting stock values 
A) Competitive prices 
B) Legal and regulatory issues 
C) Organizational and marketing objectives 
D) Customers' interpretation and response 
E) Shifting stock values

Question 20

Price is the most easily adjusted ingredient in the marketing mix.

Accepted Answer

A) True 
 B)False

Both the Federal Trade Commission Act and the Wheeler-Lea Act prohibit

When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on

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

Comparison of various prices and various breakeven points will tell the marketer exactly what price to charge.

Marketers have more difficulty adjusting their prices than they do any other marketing mix variable.

The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line. Its basic promotional tool is the discount. These discounts offered to middlemen for performing certain channel activities are referred to as ____ discounts.

Dividing the percentage change in quantity demanded by the percentage change in price gives the

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.

Pricing whereby the buyer absorbs all or part of the freight costs is freight absorption pricing.

A customer looking for the lowest price on a mattress without concern for the quality of the mattress or the status gained by buying and using a certain brand is a price-conscious customer.

What are the differences among value-conscious, price-conscious, and prestige-sensitive customers?

If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the

Suppose that the frozen foods division of Swanson purchases food trays and boxes from the packaging division. The form of pricing used to charge the frozen foods division is called

Below the breakeven point, a firm is operating

The purpose of the pricing concept is to quantify and express the value of items in a market exchange.

Marginal revenue is the change in total revenue that occurs when a firm sells an additional unit of product.

To gain market share, when Hyundai first entered the U.S. car market it did so with a comparatively low price strategy. One of the negative side effects of making this pricing decision is

Which factor is least likely to affect pricing decisions?

Price is the most easily adjusted ingredient in the marketing mix.

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

Both the Federal Trade Commission Act and the Wheeler-Lea Act prohibit

When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on

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

Comparison of various prices and various breakeven points will tell the marketer exactly what price to charge.

Marketers have more difficulty adjusting their prices than they do any other marketing mix variable.

The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line. Its basic promotional tool is the discount. These discounts offered to middlemen for performing certain channel activities are referred to as ____ discounts.

Dividing the percentage change in quantity demanded by the percentage change in price gives the

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.

Pricing whereby the buyer absorbs all or part of the freight costs is freight absorption pricing.

A customer looking for the lowest price on a mattress without concern for the quality of the mattress or the status gained by buying and using a certain brand is a price-conscious customer.

What are the differences among value-conscious, price-conscious, and prestige-sensitive customers?

If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the

Suppose that the frozen foods division of Swanson purchases food trays and boxes from the packaging division. The form of pricing used to charge the frozen foods division is called

Below the breakeven point, a firm is operating

The purpose of the pricing concept is to quantify and express the value of items in a market exchange.

Marginal revenue is the change in total revenue that occurs when a firm sells an additional unit of product.

To gain market share, when Hyundai first entered the U.S. car market it did so with a comparatively low price strategy. One of the negative side effects of making this pricing decision is

Which factor is least likely to affect pricing decisions?

Price is the most easily adjusted ingredient in the marketing mix.

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