Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of 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 3

Price competition is a very flexible marketing strategy.

Accepted Answer

A) True 
 B)False

Question 4

Electricity is an example of a product that is price elastic.

Accepted Answer

A) True 
 B)False

Question 5

The legality of uniform geographic pricing has been challenged, and so its use has been abandoned.

Accepted Answer

A) True 
 B)False

Question 6

A deduction from list price for purchasing large quantities aggregated over a stated period of time is a

Accepted Answer

A) noncumulative quantity discount. 
B) additive cash discount. 
C) cumulative quantity discount. 
D) cumulative discount allowance. 
E) additive quantity reduction. 
A) noncumulative quantity discount. 
B) additive cash discount. 
C) cumulative quantity discount. 
D) cumulative discount allowance. 
E) additive quantity reduction.

Question 7

Profit margins for marketing channel members must be considered when determining the price of a product.

Accepted Answer

A) True 
 B)False

Question 8

Costs are a major issue when establishing price.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

If Colgate-Palmolive wants to maximize profit on its toothpaste, it should operate at the point where

Accepted Answer

A) total costs and total revenues are equal. 
B) marginal revenue is at its highest level. 
C) marginal revenue exceeds marginal cost. 
D) marginal revenue equals marginal cost. 
E) demand is most elastic. 
A) total costs and total revenues are equal. 
B) marginal revenue is at its highest level. 
C) marginal revenue exceeds marginal cost. 
D) marginal revenue equals marginal cost. 
E) demand is most elastic.

Question 12

Price is

Accepted Answer

A) money paid in a transaction. 
B) not important to buyers. 
C) of limited interest to sellers. 
D) the most inflexible marketing mix decision variable. 
E) the value that is exchanged for products in a marketing transaction. 
A) money paid in a transaction. 
B) not important to buyers. 
C) of limited interest to sellers. 
D) the most inflexible marketing mix decision variable. 
E) the value that is exchanged for products in a marketing transaction.

Question 13

What assumption does breakeven analysis make that limits its overall usefulness?

Accepted Answer

A) It focuses on how to achieve a price objective. 
B) It assumes a company wants to gain a certain market share. 
C) It relies on demand for a product being inelastic. 
D) It focuses only on competitive factors and not costs. 
E) It assumes demand is elastic for the product. 
A) It focuses on how to achieve a price objective. 
B) It assumes a company wants to gain a certain market share. 
C) It relies on demand for a product being inelastic. 
D) It focuses only on competitive factors and not costs. 
E) It assumes demand is elastic for the product.

Question 14

To maintain market share and revenue in an increasingly price-sensitive market, companies have focused on quality, used labor-saving technologies, and used efficient manufacturing processes. These tactics have provided gains in productivity that have translated into ____ for the consumer.

Accepted Answer

A) higher costs for the company and higher prices 
B) higher costs for the company and lower prices 
C) lower costs for the company and lower prices 
D) lower costs for the company and higher prices 
E) no change in the costs for either the company or 
A) higher costs for the company and higher prices 
B) higher costs for the company and lower prices 
C) lower costs for the company and lower prices 
D) lower costs for the company and higher prices 
E) no change in the costs for either the company or

Question 15

Buyers who focus on purchasing products that signify prominence and status are

Accepted Answer

A) value-conscious consumers. 
B) price-conscious consumers. 
C) socially elite buyers. 
D) prestige-sensitive buyers. 
E) brand aware consumers. 
A) value-conscious consumers. 
B) price-conscious consumers. 
C) socially elite buyers. 
D) prestige-sensitive buyers. 
E) brand aware consumers.

Question 16

The perception of price depends on a

Accepted Answer

A) product's actual price and consumers' expectations regarding price. 
B) consumer's analysis of competitive prices. 
C) consumer's reference price. 
D) consumer's expectation of price. 
E) product's actual price in comparison with the manufacturer's suggested price. 
A) product's actual price and consumers' expectations regarding price. 
B) consumer's analysis of competitive prices. 
C) consumer's reference price. 
D) consumer's expectation of price. 
E) product's actual price in comparison with the manufacturer's suggested price.

Question 17

A seller can change prices quickly in a price-competition situation.

Accepted Answer

A) True 
 B)False

Question 18

Sellers using nonprice competition are not concerned with prices charged by competitors.

Accepted Answer

A) True 
 B)False

Question 19

For most consumers, there is an assumed relationship between

Accepted Answer

A) price and quality. 
B) value and cost. 
C) internal and external reference prices. 
D) value and price consciousness. 
E) prestige prices and value. 
A) price and quality. 
B) value and cost. 
C) internal and external reference prices. 
D) value and price consciousness. 
E) prestige prices and value.

Question 20

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. If BASF were to price its product in barrels from the factory, before it is loaded on the carrier, this would be an example of ____ pricing.

Accepted Answer

A) buy-back allowance 
B) geographic 
C) F.O.B destination 
D) F.O.B. factory 
E) base-point 
A) buy-back allowance 
B) geographic 
C) F.O.B destination 
D) F.O.B. factory 
E) base-point

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

Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of a ____ discount.

Price competition is a very flexible marketing strategy.

Electricity is an example of a product that is price elastic.

The legality of uniform geographic pricing has been challenged, and so its use has been abandoned.

A deduction from list price for purchasing large quantities aggregated over a stated period of time is a

Profit margins for marketing channel members must be considered when determining the price of a product.

Costs are a major issue when establishing price.

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

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

If Colgate-Palmolive wants to maximize profit on its toothpaste, it should operate at the point where

Price is

What assumption does breakeven analysis make that limits its overall usefulness?

To maintain market share and revenue in an increasingly price-sensitive market, companies have focused on quality, used labor-saving technologies, and used efficient manufacturing processes. These tactics have provided gains in productivity that have translated into ____ for the consumer.

Buyers who focus on purchasing products that signify prominence and status are

The perception of price depends on a

A seller can change prices quickly in a price-competition situation.

Sellers using nonprice competition are not concerned with prices charged by competitors.

For most consumers, there is an assumed relationship between

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

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

Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of a ____ discount.

Price competition is a very flexible marketing strategy.

Electricity is an example of a product that is price elastic.

The legality of uniform geographic pricing has been challenged, and so its use has been abandoned.

A deduction from list price for purchasing large quantities aggregated over a stated period of time is a

Profit margins for marketing channel members must be considered when determining the price of a product.

Costs are a major issue when establishing price.

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

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

If Colgate-Palmolive wants to maximize profit on its toothpaste, it should operate at the point where

Price is

What assumption does breakeven analysis make that limits its overall usefulness?

To maintain market share and revenue in an increasingly price-sensitive market, companies have focused on quality, used labor-saving technologies, and used efficient manufacturing processes. These tactics have provided gains in productivity that have translated into ____ for the consumer.

Buyers who focus on purchasing products that signify prominence and status are

The perception of price depends on a

A seller can change prices quickly in a price-competition situation.

Sellers using nonprice competition are not concerned with prices charged by competitors.

For most consumers, there is an assumed relationship between

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