Question 1

Identify and describe the major types of discounts used for business markets. Then explain the reasons for using each type.

Accepted Answer

The answer of Identify and describe the major types of...

Question 2

A concession in price in business markets to achieve a desired goal is called a(n)

Accepted Answer

A) allowance. 
B) objective-oriented discount. 
C) cash discount. 
D) trade discount. 
E) cumulative discount. 
A) allowance. 
B) objective-oriented discount. 
C) cash discount. 
D) trade discount. 
E) cumulative discount.

Question 3

The more experience the customer has with a product, the more he or she relies on external reference prices.

Accepted Answer

A) True 
 B)False

Question 4

Demand is best determined by a top management committee.

Accepted Answer

A) True 
 B)False

Question 5

Discuss the role of product costs in setting prices.

Accepted Answer

Product costs play a crucial role in set

Question 6

Costs that do not vary with changes in the number of units produced and sold are called ____ costs.

Accepted Answer

A) fixed 
B) total 
C) invariable 
D) variable 
E) set 
A) fixed 
B) total 
C) invariable 
D) variable 
E) set

Question 7

Rob Johnson orders 16 dozen fishing lures from Strike Right for $375. When he gets the invoice, he is furious that $25 in freight charges has been tacked onto his bill because he thought the price included freight costs. Rob should have been certain that the order terms were

Accepted Answer

A) F.O.B. origin. 
B) F.O.B. factory. 
C) C.O.D. 
D) 2/10, n/30. 
E) F.O.B. destination. 
A) F.O.B. origin. 
B) F.O.B. factory. 
C) C.O.D. 
D) 2/10, n/30. 
E) F.O.B. destination.

Question 8

Channel member expectations play no part in a firm's pricing decisions.

Accepted Answer

A) True 
 B)False

Question 9

The type of prices most likely to appear in advertising is

Accepted Answer

A) prestige. 
B) future. 
C) bargain. 
D) internal reference. 
E) cost-plus. 
A) prestige. 
B) future. 
C) bargain. 
D) internal reference. 
E) cost-plus.

Question 10

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 has decided to offer discounts to its businesses customers in the form of the following: For each order of $100,000 or more during the next 90 days, the buyer will receive a rebate of 5 percent. This type of pricing would be an example of ____ discounts.

Accepted Answer

A) allowance 
B) cash 
C) seasonal 
D) noncumulative 
E) cumulative 
A) allowance 
B) cash 
C) seasonal 
D) noncumulative 
E) cumulative

Question 11

Price is a key element in the marketing mix because it relates directly to

Accepted Answer

A) the size of the sales force. 
B) the speed of an exchange. 
C) quality controls. 
D) the generation of total revenue. 
E) brand image. 
A) the size of the sales force. 
B) the speed of an exchange. 
C) quality controls. 
D) the generation of total revenue. 
E) brand image.

Question 12

Product demand usually becomes more elastic over time because more substitutes are found.

Accepted Answer

A) True 
 B)False

Question 13

Nonprice competition emphasizes distinctive product features, service, and product quality.

Accepted Answer

A) True 
 B)False

Question 14

If a product has an inelastic demand and the manufacturer raises its price,

Accepted Answer

A) total revenue will increase. 
B) quantity demanded will decrease. 
C) the demand schedule will shift. 
D) the demand will become more inelastic. 
E) total revenue will decrease. 
A) total revenue will increase. 
B) quantity demanded will decrease. 
C) the demand schedule will shift. 
D) the demand will become more inelastic. 
E) total revenue will decrease.

Question 15

The point at which marginal revenue equals marginal cost is the breakeven point.

Accepted Answer

A) True 
 B)False

Question 16

French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night. This is an indication that suites at this hotel are apparently an example of a(n) ____ product.

Accepted Answer

A) reverse-demand 
B) inferior 
C) standard 
D) secondary-demand 
E) prestige 
A) reverse-demand 
B) inferior 
C) standard 
D) secondary-demand 
E) prestige

Question 17

What type of discount is given to a business purchaser for performing activities such as transporting, storing, and selling?

Accepted Answer

A) Quantity 
B) Cash 
C) Geographic 
D) Service 
E) Trade 
A) Quantity 
B) Cash 
C) Geographic 
D) Service 
E) Trade

Question 18

The degree to which the price of a product enhances a customer's satisfaction with the purchase experience and with the product after the purchase is part of their

Accepted Answer

A) response. 
B) reference. 
C) interpretation. 
D) price satisfaction. 
E) price-consciousness. 
A) response. 
B) reference. 
C) interpretation. 
D) price satisfaction. 
E) price-consciousness.

Question 19

If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage, it is committing

Accepted Answer

A) price discrimination. 
B) price-consciousness. 
C) functional discounting. 
D) price competition. 
E) price fixing. 
A) price discrimination. 
B) price-consciousness. 
C) functional discounting. 
D) price competition. 
E) price fixing.

Question 20

Why is the marginal revenue of a product important to the marketer?

Accepted Answer

The answer of Why is the marginal revenue of a...

Identify and describe the major types of discounts used for business markets. Then explain the reasons for using each type.

A concession in price in business markets to achieve a desired goal is called a(n)

The more experience the customer has with a product, the more he or she relies on external reference prices.

Demand is best determined by a top management committee.

Discuss the role of product costs in setting prices.

Costs that do not vary with changes in the number of units produced and sold are called ____ costs.

Rob Johnson orders 16 dozen fishing lures from Strike Right for $375. When he gets the invoice, he is furious that $25 in freight charges has been tacked onto his bill because he thought the price included freight costs. Rob should have been certain that the order terms were

Channel member expectations play no part in a firm's pricing decisions.

The type of prices most likely to appear in advertising is

Price is a key element in the marketing mix because it relates directly to

Product demand usually becomes more elastic over time because more substitutes are found.

Nonprice competition emphasizes distinctive product features, service, and product quality.

If a product has an inelastic demand and the manufacturer raises its price,

The point at which marginal revenue equals marginal cost is the breakeven point.

French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night. This is an indication that suites at this hotel are apparently an example of a(n) ____ product.

What type of discount is given to a business purchaser for performing activities such as transporting, storing, and selling?

The degree to which the price of a product enhances a customer's satisfaction with the purchase experience and with the product after the purchase is part of their

If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage, it is committing

Why is the marginal revenue of a product important to the marketer?

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

Identify and describe the major types of discounts used for business markets. Then explain the reasons for using each type.

A concession in price in business markets to achieve a desired goal is called a(n)

The more experience the customer has with a product, the more he or she relies on external reference prices.

Demand is best determined by a top management committee.

Discuss the role of product costs in setting prices.

Costs that do not vary with changes in the number of units produced and sold are called ____ costs.

Rob Johnson orders 16 dozen fishing lures from Strike Right for $375. When he gets the invoice, he is furious that $25 in freight charges has been tacked onto his bill because he thought the price included freight costs. Rob should have been certain that the order terms were

Channel member expectations play no part in a firm's pricing decisions.

The type of prices most likely to appear in advertising is

Price is a key element in the marketing mix because it relates directly to

Product demand usually becomes more elastic over time because more substitutes are found.

Nonprice competition emphasizes distinctive product features, service, and product quality.

If a product has an inelastic demand and the manufacturer raises its price,

The point at which marginal revenue equals marginal cost is the breakeven point.

French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night. This is an indication that suites at this hotel are apparently an example of a(n) ____ product.

What type of discount is given to a business purchaser for performing activities such as transporting, storing, and selling?

The degree to which the price of a product enhances a customer's satisfaction with the purchase experience and with the product after the purchase is part of their

If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage, it is committing

Why is the marginal revenue of a product important to the marketer?

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