Question 1

How do consumers use price in their assessments of value?

Accepted Answer

From a consumer's standpoint, price is o

Question 2

Which of the following would be an example of a fixed cost for a company that makes carbon monoxide monitoring systems for workers to wear in hazardous areas?

Accepted Answer

A) the lithium batteries that are used in each monitor 
B) the chest harness used to wear the monitor 
C) the insurance for the company's factory 
D) the free training videos that are sent to each new customer 
E) the stainless-steel, water-resistant cases in which the monitors are contained 
A) the lithium batteries that are used in each monitor 
B) the chest harness used to wear the monitor 
C) the insurance for the company's factory 
D) the free training videos that are sent to each new customer 
E) the stainless-steel, water-resistant cases in which the monitors are contained

Question 3

Occasionally, prices may rise later in the product's life cycle. This is often due to

Accepted Answer

A) new competitors entering the market. 
B) production economies of scale. 
C) a decrease in the price of raw materials. 
D) nostalgia and fad factors. 
E) the type of competitive market shifts from pure monopoly to pure competition. 
A) new competitors entering the market. 
B) production economies of scale. 
C) a decrease in the price of raw materials. 
D) nostalgia and fad factors. 
E) the type of competitive market shifts from pure monopoly to pure competition.

Question 4

Which of the following statements about consumer demand as a pricing constraint is most accurate?

Accepted Answer

A) The number of potential buyers for the product class has little effect on the price a seller can charge. 
B) The number of potential buyers for the product affects the price a seller can charge, but only if the product is a luxury item. 
C) The number of potential buyers for the product affects the price a seller can charge, but only if the product is a necessity item. 
D) The number of potential buyers for the brand affects the price a seller can charge in the growth stage of a product life cycle, but not in the introductory stage. 
E) Whether the item is a luxury or a necessity affects the price a seller can charge. 
A) The number of potential buyers for the product class has little effect on the price a seller can charge. 
B) The number of potential buyers for the product affects the price a seller can charge, but only if the product is a luxury item. 
C) The number of potential buyers for the product affects the price a seller can charge, but only if the product is a necessity item. 
D) The number of potential buyers for the brand affects the price a seller can charge in the growth stage of a product life cycle, but not in the introductory stage. 
E) Whether the item is a luxury or a necessity affects the price a seller can charge.

Question 5

Price refers to

Accepted Answer

A) the value assigned to the exchange of products and services for other products and services. 
B) the value judgment made by both the buyer and seller regarding an item's worth. 
C) the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service. 
D) the value assessed for the benefits of using a product or service. 
E) the highest monetary value a customer is willing to pay for a product or service. 
A) the value assigned to the exchange of products and services for other products and services. 
B) the value judgment made by both the buyer and seller regarding an item's worth. 
C) the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service. 
D) the value assessed for the benefits of using a product or service. 
E) the highest monetary value a customer is willing to pay for a product or service.

Question 6

Forever Quilting is a small company that makes quilting kits priced at $120. The costs of the materials that go into each kit total $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising, and $4,500 for the monthly salary of its owner. Forever Quilting's unit variable cost for its kits is

Accepted Answer

A) $5. 
B) $45. 
C) $50. 
D) $120. 
E) $170. 
A) $5. 
B) $45. 
C) $50. 
D) $120. 
E) $170.

Question 7

Which of the following statements regarding sales goals is most accurate?

Accepted Answer

A) For marketing managers, sales revenue or unit sales can be easily translated into meaningful targets for a product line or brand. 
B) Cutting prices for a single product in a product line to raise unit sales often results in an increase in sales for related products in the line. 
C) Very often, cutting prices results in a decrease in market share. 
D) Setting unit volume sales as a pricing objective results in price wars with competitors, so the practice is limited to industries with few competitors. 
E) An advantage of increasing unit volume sales is that it always results in an increase in profits. 
A) For marketing managers, sales revenue or unit sales can be easily translated into meaningful targets for a product line or brand. 
B) Cutting prices for a single product in a product line to raise unit sales often results in an increase in sales for related products in the line. 
C) Very often, cutting prices results in a decrease in market share. 
D) Setting unit volume sales as a pricing objective results in price wars with competitors, so the practice is limited to industries with few competitors. 
E) An advantage of increasing unit volume sales is that it always results in an increase in profits.

Question 8

Three different objectives relate to a firm's profit, which is often measured in terms of return on investment. One objective, known as _________, occurs when a firm sets a profit goal, usually determined by its board of directors.

Accepted Answer

A) maximizing current profit 
B) managing for long-run profits 
C) target return 
D) break-even strategy 
E) minimizing risk 
A) maximizing current profit 
B) managing for long-run profits 
C) target return 
D) break-even strategy 
E) minimizing risk

Question 9

In the process of setting price, a marketer must first identify pricing objectives and constraints. Next, in Step 2, three specific estimates are necessary. What are they?

Accepted Answer

The three key items in Step 2

Question 10

While pricing objectives frequently reflect corporate goals, pricing constraints often relate to

Accepted Answer

A) stockholder demands. 
B) political ideology. 
C) conditions existing in the marketplace. 
D) an organization's code of ethics. 
E) the financial realities within the organization itself. 
A) stockholder demands. 
B) political ideology. 
C) conditions existing in the marketplace. 
D) an organization's code of ethics. 
E) the financial realities within the organization itself.

Question 11

What are the six major steps involved in setting prices?

Accepted Answer

Step 1: Identify pricing objectives and

Question 12

If competitive market circumstances are such that there is almost no price competition, no product differentiation, and the only advertising informs prospects that the product is available, then the competitive market in this industry must be

Accepted Answer

A) a pure monopoly. 
B) pure competition. 
C) an oligopoly. 
D) monopolistic competition. 
E) monopolistic oligopoly. 
A) a pure monopoly. 
B) pure competition. 
C) an oligopoly. 
D) monopolistic competition. 
E) monopolistic oligopoly.

Question 13

While consumer tastes and price and availability of similar products determine what consumers want to buy, consumer income determines

Accepted Answer

A) where they buy. 
B) the degree of brand loyalty. 
C) the degree of repeat buys. 
D) what they can buy. 
E) their desire to buy. 
A) where they buy. 
B) the degree of brand loyalty. 
C) the degree of repeat buys. 
D) what they can buy. 
E) their desire to buy.

Question 14

The ratio of perceived benefits to __________ is referred to as value.

Accepted Answer

A) price 
B) prestige 
C) perceived quality 
D) profits 
E) perceived costs 
A) price 
B) prestige 
C) perceived quality 
D) profits 
E) perceived costs

Question 15

North America's No. 1 smart TV company is

Accepted Answer

A) Samsung. 
B) Panasonic. 
C) LG. 
D) Sony. 
E) Vizio. 
A) Samsung. 
B) Panasonic. 
C) LG. 
D) Sony. 
E) Vizio.

Question 16

The practice of exchanging products and services for other products and services rather than for money is referred to as

Accepted Answer

A) barter. 
B) reciprocal pricing. 
C) virtual pricing. 
D) balance of payments. 
E) value-pricing. 
A) barter. 
B) reciprocal pricing. 
C) virtual pricing. 
D) balance of payments. 
E) value-pricing.

Question 17

The __________ equation = (Unit price × Quantity sold) - Total cost.

Accepted Answer

A) total revenue 
B) variable cost 
C) net present value 
D) profit 
E) break-even point 
A) total revenue 
B) variable cost 
C) net present value 
D) profit 
E) break-even point

Question 18

Washburn Guitars markets its guitars to four distinct market segments. The firm's mass customization instruments are targeted at

Accepted Answer

A) first-time buyers. 
B) professional musicians. 
C) stars and famous musicians. 
D) large institutional buyers such as band programs. 
E) intermediate-skill players who may become professional musicians. 
A) first-time buyers. 
B) professional musicians. 
C) stars and famous musicians. 
D) large institutional buyers such as band programs. 
E) intermediate-skill players who may become professional musicians.

Question 19

Dozens of regional, private brands of peanut butter compete with national brands like Skippy and Jif. In this type of market,

Accepted Answer

A) both price competition and nonprice competition exist. 
B) these firms must maintain local customer loyalty. 
C) these private brands must go head-to-head or steal market share from nationally recognized brands. 
D) these private brands must keep other regional businesses from entering the market. 
E) these private brands could avoid cannibalization if they sell their product both in stores and online. 
A) both price competition and nonprice competition exist. 
B) these firms must maintain local customer loyalty. 
C) these private brands must go head-to-head or steal market share from nationally recognized brands. 
D) these private brands must keep other regional businesses from entering the market. 
E) these private brands could avoid cannibalization if they sell their product both in stores and online.

Question 20

All of the following are demand factors except

Accepted Answer

A) the price of similar products. 
B) consumer tastes. 
C) consumer income. 
D) the availability of similar products. 
E) the number of distribution outlets carrying the product. 
A) the price of similar products. 
B) consumer tastes. 
C) consumer income. 
D) the availability of similar products. 
E) the number of distribution outlets carrying the product.

Exam 13: Building the Price Foundation

How do consumers use price in their assessments of value?

Which of the following would be an example of a fixed cost for a company that makes carbon monoxide monitoring systems for workers to wear in hazardous areas?

Occasionally, prices may rise later in the product's life cycle. This is often due to

Which of the following statements about consumer demand as a pricing constraint is most accurate?

Price refers to

Which of the following statements regarding sales goals is most accurate?

Three different objectives relate to a firm's profit, which is often measured in terms of return on investment. One objective, known as _________, occurs when a firm sets a profit goal, usually determined by its board of directors.

In the process of setting price, a marketer must first identify pricing objectives and constraints. Next, in Step 2, three specific estimates are necessary. What are they?

While pricing objectives frequently reflect corporate goals, pricing constraints often relate to

What are the six major steps involved in setting prices?

If competitive market circumstances are such that there is almost no price competition, no product differentiation, and the only advertising informs prospects that the product is available, then the competitive market in this industry must be

While consumer tastes and price and availability of similar products determine what consumers want to buy, consumer income determines

The ratio of perceived benefits to __________ is referred to as value.

North America's No. 1 smart TV company is

The practice of exchanging products and services for other products and services rather than for money is referred to as

The __________ equation = (Unit price × Quantity sold) - Total cost.

Washburn Guitars markets its guitars to four distinct market segments. The firm's mass customization instruments are targeted at

Dozens of regional, private brands of peanut butter compete with national brands like Skippy and Jif. In this type of market,

All of the following are demand factors except

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation Targeting and Positioning

Developing New Products and Services

Managing Successful Products Services and Brands

Services Marketing

Arriving at the Final Price

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising Sales Promotion and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multichannel Marketing

Pulling It All Together: the Strategic Marketing Process

Financial Aspects of Marketing

Building an Effective Marketing Plan

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