Question 1

If a company increased its price from $100 to $120 and the quantity demanded fell by 40 percent, the price elasticity of demand for this product is

Accepted Answer

A) 2. 
B) 1/2. 
C) -1/2. 
D) -2. 
E) 4. 
A) 2. 
B) 1/2. 
C) -1/2. 
D) -2. 
E) 4.

Question 2

A marketer sometimes uses temporary price reductions to

Accepted Answer

A) increase the number of competitors. 
B) gain market share. 
C) decrease volume sold. 
D) increase revenue per item. 
E) control demand. 
A) increase the number of competitors. 
B) gain market share. 
C) decrease volume sold. 
D) increase revenue per item. 
E) control demand.

Question 3

Producers commonly provide discounts off list prices to intermediaries.

Accepted Answer

A) True 
 B)False

Question 4

When Cadillac buys headlights from Delco (both of which are divisions of General Motors), ____ pricing occurs.

Accepted Answer

A) base-point 
B) zone 
C) transfer 
D) uniform geographic 
E) matrix 
A) base-point 
B) zone 
C) transfer 
D) uniform geographic 
E) matrix

Question 5

A customer's interpretation and response to a price depends on what the customer receives from a purchase compared to what he or she gives up to make a purchase.

Accepted Answer

A) True 
 B)False

Question 6

If the terms of a business exchange are 2/10 net 30, this means that the transaction

Accepted Answer

A) involves a cumulative discount if paid in 30 days. 
B) involves a noncumulative discount. 
C) offers a discount if the buyer lives within a ten-mile radius. 
D) price does not include the cost of freight. 
E) involves a cash discount if paid within ten days. 
A) involves a cumulative discount if paid in 30 days. 
B) involves a noncumulative discount. 
C) offers a discount if the buyer lives within a ten-mile radius. 
D) price does not include the cost of freight. 
E) involves a cash discount if paid within ten days.

Question 7

A danger associated with engaging in price competition is that competitors can also change prices quickly and aggressively, which can result in a(n) ____ that will be harmful to both companies.

Accepted Answer

A) reduction in cost 
B) price war 
C) competitive draw 
D) industry collapse 
E) advertising battle 
A) reduction in cost 
B) price war 
C) competitive draw 
D) industry collapse 
E) advertising battle

Question 8

Premium-priced products are usually marketed through

Accepted Answer

A) complex marketing channels. 
B) intensive or selective distribution. 
C) exclusive or intensive distribution. 
D) exclusive distribution only. 
E) selective or exclusive distribution. 
A) complex marketing channels. 
B) intensive or selective distribution. 
C) exclusive or intensive distribution. 
D) exclusive distribution only. 
E) selective or exclusive distribution.

Question 9

For most products, the quantity demanded goes up as the price goes down.

Accepted Answer

A) True 
 B)False

Question 10

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. If Concession Supply increased its price by 10 percent and experienced only a 2 percent decrease in the demand for hotdogs, the demand would be

Accepted Answer

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

Question 11

Safe Auto advertises its low-cost automobile insurance as "minimum coverage for minimum budgets." Safe Auto is engaging in

Accepted Answer

A) non-price competition. 
B) demand-based pricing. 
C) prestige pricing. 
D) price differentiation. 
E) price competition. 
A) non-price competition. 
B) demand-based pricing. 
C) prestige pricing. 
D) price differentiation. 
E) price competition.

Question 12

One advantage of nonprice competition is that

Accepted Answer

A) a firm can react quickly to competitive efforts. 
B) market share becomes less important. 
C) a firm can build customer loyalty. 
D) marketing efforts are completely eliminated. 
E) pricing is no longer a factor. 
A) a firm can react quickly to competitive efforts. 
B) market share becomes less important. 
C) a firm can build customer loyalty. 
D) marketing efforts are completely eliminated. 
E) pricing is no longer a factor.

Question 13

Which of the following is the most flexible variable in the marketing mix?

Accepted Answer

A) Product 
B) Price 
C) Advertising 
D) Personal selling 
E) Distribution 
A) Product 
B) Price 
C) Advertising 
D) Personal selling 
E) Distribution

Question 14

In the long run, the J. F. Smucker Company must view ____ as the absolute lowest price for its Jif brand peanut butter.

Accepted Answer

A) a 10 percent return on investment 
B) product development costs 
C) total costs 
D) advertising expenditures 
E) Nestlé's prices 
A) a 10 percent return on investment 
B) product development costs 
C) total costs 
D) advertising expenditures 
E) Nestlé's prices

Question 15

Explain what is meant by price elasticity of demand.

Accepted Answer

The answer of Explain what is meant by price elasticity...

Question 16

What are reference prices and how do customers use them? What is the difference between internal and external reference prices?

Accepted Answer

The answer of What are reference prices and how do...

Question 17

Marketers generally view ____ as the minimum price a product can be sold for.

Accepted Answer

A) fixed costs 
B) variable costs 
C) profits 
D) costs 
E) moderate losses 
A) fixed costs 
B) variable costs 
C) profits 
D) costs 
E) moderate losses

Question 18

If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85, then

Accepted Answer

A) its marginal costs are falling. 
B) average total cost is at its maximum. 
C) average total costs are rising. 
D) demand is elastic. 
E) average total cost is at its lowest level. 
A) its marginal costs are falling. 
B) average total cost is at its maximum. 
C) average total costs are rising. 
D) demand is elastic. 
E) average total cost is at its lowest level.

Question 19

A price developed in the consumer's mind through experience with the product is called a(n)

Accepted Answer

A) external reference price. 
B) value-price guideline. 
C) frame of reference. 
D) internalized price. 
E) internal reference price. 
A) external reference price. 
B) value-price guideline. 
C) frame of reference. 
D) internalized price. 
E) internal reference price.

Question 20

Costs that vary directly with changes in the number of units produced or sold are called

Accepted Answer

A) changeables. 
B) variable costs. 
C) direct costs. 
D) fixed costs. 
E) marginal costs. 
A) changeables. 
B) variable costs. 
C) direct costs. 
D) fixed costs. 
E) marginal costs.

If a company increased its price from $100 to $120 and the quantity demanded fell by 40 percent, the price elasticity of demand for this product is

A marketer sometimes uses temporary price reductions to

Producers commonly provide discounts off list prices to intermediaries.

When Cadillac buys headlights from Delco (both of which are divisions of General Motors), ____ pricing occurs.

A customer's interpretation and response to a price depends on what the customer receives from a purchase compared to what he or she gives up to make a purchase.

If the terms of a business exchange are 2/10 net 30, this means that the transaction

A danger associated with engaging in price competition is that competitors can also change prices quickly and aggressively, which can result in a(n) ____ that will be harmful to both companies.

Premium-priced products are usually marketed through

For most products, the quantity demanded goes up as the price goes down.

Safe Auto advertises its low-cost automobile insurance as "minimum coverage for minimum budgets." Safe Auto is engaging in

One advantage of nonprice competition is that

Which of the following is the most flexible variable in the marketing mix?

In the long run, the J. F. Smucker Company must view ____ as the absolute lowest price for its Jif brand peanut butter.

Explain what is meant by price elasticity of demand.

What are reference prices and how do customers use them? What is the difference between internal and external reference prices?

Marketers generally view ____ as the minimum price a product can be sold for.

If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85, then

A price developed in the consumer's mind through experience with the product is called a(n)

Costs that vary directly with changes in the number of units produced or sold are called

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

If a company increased its price from $100 to $120 and the quantity demanded fell by 40 percent, the price elasticity of demand for this product is

A marketer sometimes uses temporary price reductions to

Producers commonly provide discounts off list prices to intermediaries.

When Cadillac buys headlights from Delco (both of which are divisions of General Motors), ____ pricing occurs.

A customer's interpretation and response to a price depends on what the customer receives from a purchase compared to what he or she gives up to make a purchase.

If the terms of a business exchange are 2/10 net 30, this means that the transaction

A danger associated with engaging in price competition is that competitors can also change prices quickly and aggressively, which can result in a(n) ____ that will be harmful to both companies.

Premium-priced products are usually marketed through

For most products, the quantity demanded goes up as the price goes down.

Safe Auto advertises its low-cost automobile insurance as "minimum coverage for minimum budgets." Safe Auto is engaging in

One advantage of nonprice competition is that

Which of the following is the most flexible variable in the marketing mix?

In the long run, the J. F. Smucker Company must view ____ as the absolute lowest price for its Jif brand peanut butter.

Explain what is meant by price elasticity of demand.

What are reference prices and how do customers use them? What is the difference between internal and external reference prices?

Marketers generally view ____ as the minimum price a product can be sold for.

If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85, then

A price developed in the consumer's mind through experience with the product is called a(n)

Costs that vary directly with changes in the number of units produced or sold are called

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