Question 1

The commercial airline industry is considered what type of market?

Accepted Answer

A)  duopoly 
B)  monopoly 
C)  monopolistic competition 
D)  pure competition 
E)  oligopolistic competition 
A)  duopoly 
B)  monopoly 
C)  monopolistic competition 
D)  pure competition 
E)  oligopolistic competition

Question 2

When Apple Computer company introduced the iPhone-a combination phone, MP3 player, and Internet access device-in 2007, it was priced at $499, considerably higher than either the iPod or competing cell phones. Apple was probably pursuing a __________ pricing strategy.

Accepted Answer

A)  market penetration 
B)  slotting allowance 
C)  price fixing 
D)  reference price 
E)  skimming 
A)  market penetration 
B)  slotting allowance 
C)  price fixing 
D)  reference price 
E)  skimming

Question 3

If upscale manufacturers of prestige products like BMW autos, Tiffany glass, or Rolex watches offered lower-priced products, what might happen to the demand for their products? Why?

Accepted Answer

For prestige products, lower prices migh

Question 4

A reference price is

Accepted Answer

A)  the actual price. 
B)  the price against which buyers compare the actual selling price. 
C)  the manufacturer's cost. 
D)  a cumulative quantity discount price. 
E)  the external horizontal fixed price. 
A)  the actual price. 
B)  the price against which buyers compare the actual selling price. 
C)  the manufacturer's cost. 
D)  a cumulative quantity discount price. 
E)  the external horizontal fixed price.

Question 5

What does an everyday low prices strategy say to consumers?

Accepted Answer

It suggests that prices will b

Question 6

Raymond estimates that the fixed costs associated with opening a new bank branch are $500,000. He expects the branch to attract 1,000 new customer accounts in the first year, each of which will cost $50 per year to service. He also expects to generate $100,000 per year in revenue. For Raymond, the total cost of opening the new branch and remaining open for one year will be:

Accepted Answer

A)  $500,000. 
B)  $550,000. 
C)  $650,000. 
D)  $450,000. 
E)  $605,000. 
A)  $500,000. 
B)  $550,000. 
C)  $650,000. 
D)  $450,000. 
E)  $605,000.

Question 7

Marketers spend millions of dollars annually trying to create or reinforce brand loyalty. Brand loyalty changes the demand curve for the firm's products by

Accepted Answer

A)  reducing the price elasticity of demand. 
B)  making demand more oligopolistic and less monopolistic. 
C)  increasing the income effect. 
D)  reducing fixed costs and increasing the gray marketing effect. 
E)  shifting the market from a monopoly to pure competition. 
A)  reducing the price elasticity of demand. 
B)  making demand more oligopolistic and less monopolistic. 
C)  increasing the income effect. 
D)  reducing fixed costs and increasing the gray marketing effect. 
E)  shifting the market from a monopoly to pure competition.

Question 8

Gray markets can be a challenge to marketers because

Accepted Answer

A)  they are just as illegal as black markets. 
B)  they may tarnish the manufacturer's image. 
C)  they are legal in some states and illegal in others. 
D)  consumers are against them, but retailers support them. 
E)  they may result in price increases across the board. 
A)  they are just as illegal as black markets. 
B)  they may tarnish the manufacturer's image. 
C)  they are legal in some states and illegal in others. 
D)  consumers are against them, but retailers support them. 
E)  they may result in price increases across the board.

Question 9

What is the experience curve effect? What pricing strategy is it associated with?

Accepted Answer

The experience curve effect re

Question 10

In determining the price for his company's new pocket digital camera, Matt determines what consumers consider the regular or original price for similar cameras available in the market. Matt is assessing the influence of __________ on pricing strategy.

Accepted Answer

A)  improvement value 
B)  odd-even prices 
C)  everyday low pricing 
D)  reference prices 
E)  cost of ownership 
A)  improvement value 
B)  odd-even prices 
C)  everyday low pricing 
D)  reference prices 
E)  cost of ownership

The commercial airline industry is considered what type of market?

When Apple Computer company introduced the iPhone-a combination phone, MP3 player, and Internet access device-in 2007, it was priced at $499, considerably higher than either the iPod or competing cell phones. Apple was probably pursuing a __________ pricing strategy.

If upscale manufacturers of prestige products like BMW autos, Tiffany glass, or Rolex watches offered lower-priced products, what might happen to the demand for their products? Why?

A reference price is

What does an everyday low prices strategy say to consumers?

Marketers spend millions of dollars annually trying to create or reinforce brand loyalty. Brand loyalty changes the demand curve for the firm's products by

Gray markets can be a challenge to marketers because

What is the experience curve effect? What pricing strategy is it associated with?

In determining the price for his company's new pocket digital camera, Matt determines what consumers consider the regular or original price for similar cameras available in the market. Matt is assessing the influence of __________ on pricing strategy.

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Social and Mobile Marketing

Marketing Ethics

Analyzing the Marketing Environment

Consumer Behavior

Business-To-Business Marketing

Global Marketing

Segmentation, Targeting, and Positioning

Marketing Research

Product, Branding, and Packaging Decisions

Developing New Products

Services: the Intangible Product

Supply Chain and Channel Management

Retailing and Multichannel Marketing

Integrated Marketing Communications

Advertising, Public Relations, and Sales Promotions

Personal Selling and Sales Management

Filters

Exam 14: Pricing Concepts for Establishing Value

The commercial airline industry is considered what type of market?

When Apple Computer company introduced the iPhone-a combination phone, MP3 player, and Internet access device-in 2007, it was priced at $499, considerably higher than either the iPod or competing cell phones. Apple was probably pursuing a __________ pricing strategy.

If upscale manufacturers of prestige products like BMW autos, Tiffany glass, or Rolex watches offered lower-priced products, what might happen to the demand for their products? Why?

A reference price is

What does an everyday low prices strategy say to consumers?

Marketers spend millions of dollars annually trying to create or reinforce brand loyalty. Brand loyalty changes the demand curve for the firm's products by

Gray markets can be a challenge to marketers because

What is the experience curve effect? What pricing strategy is it associated with?

In determining the price for his company's new pocket digital camera, Matt determines what consumers consider the regular or original price for similar cameras available in the market. Matt is assessing the influence of __________ on pricing strategy.

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Social and Mobile Marketing

Marketing Ethics

Analyzing the Marketing Environment

Consumer Behavior

Business-To-Business Marketing

Global Marketing

Segmentation, Targeting, and Positioning

Marketing Research

Product, Branding, and Packaging Decisions

Developing New Products

Services: the Intangible Product

Supply Chain and Channel Management

Retailing and Multichannel Marketing

Integrated Marketing Communications

Advertising, Public Relations, and Sales Promotions

Personal Selling and Sales Management

Filters