Question 1

Which of the following products is most likely to have an inverted C-shaped demand curve?

Accepted Answer

A) Levi jeans 
B) Giorgio perfume 
C) Maxwell House coffee 
D) Pillsbury cake mix 
E) Ford Taurus 
A) Levi jeans 
B) Giorgio perfume 
C) Maxwell House coffee 
D) Pillsbury cake mix 
E) Ford Taurus

Question 2

Tim O'Brien gets the invoice for a load of gravel he purchased last week. The price of the gravel was $55, and the terms are 2/10, n/45. If Tim pays the invoice in five weeks, he will owe

Accepted Answer

A) a penalty. 
B) $53.90. 
C) $56.10. 
D) $58.30. 
E) $55.00. 
A) a penalty. 
B) $53.90. 
C) $56.10. 
D) $58.30. 
E) $55.00.

Question 3

The idea behind prestige demand is that many prestige products seem to sell better at a high price than at a low price.

Accepted Answer

A) True 
 B)False

Question 4

What are the components of total cost? Give specific examples.

Accepted Answer

The components of total cost include bot

Question 5

Nonprice competition does not permit unique product features, higher product quality, and customer service.

Accepted Answer

A) True 
 B)False

Question 6

Nonprice competition allows a company to increase its brand's unit sales through means other than changing the brand's price.

Accepted Answer

A) True 
 B)False

Question 7

Provisions of the Robinson-Patman Act, as well as those of the ____, limit the use of price differentials.

Accepted Answer

A) Simpson-Marshall Act 
B) Federal Trade Commission Act 
C) Wheeler-Lea Act 
D) Clayton Act 
E) Sherman Antitrust Act 
A) Simpson-Marshall Act 
B) Federal Trade Commission Act 
C) Wheeler-Lea Act 
D) Clayton Act 
E) Sherman Antitrust Act

Question 8

Changes in buyers' attitudes, other components of the marketing mix, and uncontrollable environmental factors can influence demand.

Accepted Answer

A) True 
 B)False

Question 9

The types of prices that appear least often in ads are ____ prices.

Accepted Answer

A) reference 
B) discount 
C) premium 
D) comparison 
E) sale 
A) reference 
B) discount 
C) premium 
D) comparison 
E) sale

Question 10

Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's

Accepted Answer

A) average revenue. 
B) marginal revenue. 
C) price elasticity. 
D) average variable revenue. 
E) average total cost. 
A) average revenue. 
B) marginal revenue. 
C) price elasticity. 
D) average variable revenue. 
E) average total cost.

Question 11

Marketing mix variables are highly interrelated.

Accepted Answer

A) True 
 B)False

Question 12

Compare and contrast price and nonprice competition. Give examples of firms that compete on a price basis and on a nonprice basis.

Accepted Answer

The answer of Compare and contrast price and nonprice competition....

Question 13

Roberts Electronics calculates that if it produces 15 radar detectors, its costs are $1,500, and if it produces 16 radar detectors, its costs are $1,590. In this instance, $90 is the firm's ____ cost.

Accepted Answer

A) average 
B) fixed 
C) variable 
D) marginal 
E) average variable 
A) average 
B) fixed 
C) variable 
D) marginal 
E) average variable

Question 14

Generally, customers are most likely to rely on the price-quality association when

Accepted Answer

A) they cannot judge the quality of the product for themselves. 
B) the product is a well-known brand. 
C) customers can judge the product's quality for themselves. 
D) the product is purchased through the use of the Internet. 
E) products are being purchased from well-established retailers that are familiar to customers. 
A) they cannot judge the quality of the product for themselves. 
B) the product is a well-known brand. 
C) customers can judge the product's quality for themselves. 
D) the product is purchased through the use of the Internet. 
E) products are being purchased from well-established retailers that are familiar to customers.

Question 15

Scenario 12.1
Use the following to answer the questions.
Concession Supply sells hotdogs, buns, and nacho ingredients to several major league ballparks across the country. Currently, Concession Supply has the following pricing information for one case of hotdogs sold at Wrigley Field: Total fixed costs = $1,200, Selling price = $16, and Variable costs = $6.
-Refer to Scenario 12.1. To break even, Concession Supply should sell ____ cases of hot dogs per day at Wrigley Field.

Accepted Answer

A) 13 
B) 120 
C) 40 
D) 200 
E) 60 
A) 13 
B) 120 
C) 40 
D) 200 
E) 60

Question 16

Which of the following prohibits price discrimination that lessens competition among wholesalers and retailers?

Accepted Answer

A) Sherman Antitrust Act 
B) Robinson-Patman Act 
C) Lanham Trademark Act 
D) Federal Trade Commission Act 
E) Wheeler-Lea Act 
A) Sherman Antitrust Act 
B) Robinson-Patman Act 
C) Lanham Trademark Act 
D) Federal Trade Commission Act 
E) Wheeler-Lea Act

Question 17

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 employ pricing that includes the price at the factory plus freight charges from a chosen point nearest the buyer, this would be an example of ____ pricing.

Accepted Answer

A) factory plus 
B) dispersion 
C) base-point 
D) freight absorption 
E) uniform geographic 
A) factory plus 
B) dispersion 
C) base-point 
D) freight absorption 
E) uniform geographic

Question 18

Noncumulative discounts are one-time reductions in prices based on the number of units purchased, the dollar value of the order, or the product mix purchased.

Accepted Answer

A) True 
 B)False

Question 19

How would pricing decisions differ for a business in an oligopolistic market structure as opposed to a monopolistic market structure?

Accepted Answer

The answer of How would pricing decisions differ for a...

Question 20

Seasonal discounts provide price incentives to customers during peak selling seasons.

Accepted Answer

A) True 
 B)False

Which of the following products is most likely to have an inverted C-shaped demand curve?

Tim O'Brien gets the invoice for a load of gravel he purchased last week. The price of the gravel was $55, and the terms are 2/10, n/45. If Tim pays the invoice in five weeks, he will owe

The idea behind prestige demand is that many prestige products seem to sell better at a high price than at a low price.

What are the components of total cost? Give specific examples.

Nonprice competition does not permit unique product features, higher product quality, and customer service.

Nonprice competition allows a company to increase its brand's unit sales through means other than changing the brand's price.

Provisions of the Robinson-Patman Act, as well as those of the ____, limit the use of price differentials.

Changes in buyers' attitudes, other components of the marketing mix, and uncontrollable environmental factors can influence demand.

The types of prices that appear least often in ads are ____ prices.

Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's

Marketing mix variables are highly interrelated.

Compare and contrast price and nonprice competition. Give examples of firms that compete on a price basis and on a nonprice basis.

Roberts Electronics calculates that if it produces 15 radar detectors, its costs are $1,500, and if it produces 16 radar detectors, its costs are $1,590. In this instance, $90 is the firm's ____ cost.

Generally, customers are most likely to rely on the price-quality association when

Which of the following prohibits price discrimination that lessens competition among wholesalers and retailers?

Noncumulative discounts are one-time reductions in prices based on the number of units purchased, the dollar value of the order, or the product mix purchased.

How would pricing decisions differ for a business in an oligopolistic market structure as opposed to a monopolistic market structure?

Seasonal discounts provide price incentives to customers during peak selling seasons.

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

Which of the following products is most likely to have an inverted C-shaped demand curve?

Tim O'Brien gets the invoice for a load of gravel he purchased last week. The price of the gravel was $55, and the terms are 2/10, n/45. If Tim pays the invoice in five weeks, he will owe

The idea behind prestige demand is that many prestige products seem to sell better at a high price than at a low price.

What are the components of total cost? Give specific examples.

Nonprice competition does not permit unique product features, higher product quality, and customer service.

Nonprice competition allows a company to increase its brand's unit sales through means other than changing the brand's price.

Provisions of the Robinson-Patman Act, as well as those of the ____, limit the use of price differentials.

Changes in buyers' attitudes, other components of the marketing mix, and uncontrollable environmental factors can influence demand.

The types of prices that appear least often in ads are ____ prices.

Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's

Marketing mix variables are highly interrelated.

Compare and contrast price and nonprice competition. Give examples of firms that compete on a price basis and on a nonprice basis.

Roberts Electronics calculates that if it produces 15 radar detectors, its costs are $1,500, and if it produces 16 radar detectors, its costs are $1,590. In this instance, $90 is the firm's ____ cost.

Generally, customers are most likely to rely on the price-quality association when

Which of the following prohibits price discrimination that lessens competition among wholesalers and retailers?

Noncumulative discounts are one-time reductions in prices based on the number of units purchased, the dollar value of the order, or the product mix purchased.

How would pricing decisions differ for a business in an oligopolistic market structure as opposed to a monopolistic market structure?

Seasonal discounts provide price incentives to customers during peak selling seasons.

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