Question 1

A reference value involves comparing the costs and benefits of

Accepted Answer

A) substitute items. 
B) items of equal or greater value. 
C) products with which a consumer is familiar and items the consumer has not seen or used before. 
D) items from one particular distributor. 
E) intangible items. 
A) substitute items. 
B) items of equal or greater value. 
C) products with which a consumer is familiar and items the consumer has not seen or used before. 
D) items from one particular distributor. 
E) intangible items.

Question 2

The horizontal axis of a demand curve graph represents

Accepted Answer

A) market growth rate. 
B) relative market share. 
C) price per unit. 
D) potential profit in dollars. 
E) quantity demanded. 
A) market growth rate. 
B) relative market share. 
C) price per unit. 
D) potential profit in dollars. 
E) quantity demanded.

Question 3

A firm's profit objective is often measured in terms of ROI. The acronym ROI stands for

Accepted Answer

A) risk opportunity investment. 
B) revised organizational incentives. 
C) return on investment. 
D) regulated organizational investments. 
E) replenishment of organizational inventories. 
A) risk opportunity investment. 
B) revised organizational incentives. 
C) return on investment. 
D) regulated organizational investments. 
E) replenishment of organizational inventories.

Question 4

Which of the following illustrates a shift in the demand curve?

Accepted Answer

A) When prices remain the same, there is a significant decrease in demand. 
B) As the price is raised, the quantity demanded increases, assuming all else stays the same. 
C) When prices remain the same, there is an increase or decrease in demand. 
D) As the price is lowered, the quantity demanded decreases, assuming all else stays the same. 
E) An internal matter has forced a price change of some type, but it does not impact demand. 
A) When prices remain the same, there is a significant decrease in demand. 
B) As the price is raised, the quantity demanded increases, assuming all else stays the same. 
C) When prices remain the same, there is an increase or decrease in demand. 
D) As the price is lowered, the quantity demanded decreases, assuming all else stays the same. 
E) An internal matter has forced a price change of some type, but it does not impact demand.

Question 5

To increase value, marketers may __________, decrease price, or do both.

Accepted Answer

A) decrease benefits 
B) increase benefits 
C) increase price 
D) increase advertising 
E) do nothing and let the perceived value of the item increase as it matures in the life cycle 
A) decrease benefits 
B) increase benefits 
C) increase price 
D) increase advertising 
E) do nothing and let the perceived value of the item increase as it matures in the life cycle

Question 6

Vizio, Inc., is the largest contender in the North American __________ market.

Accepted Answer

A) designer eyewear 
B) virtual media 
C) smart TV 
D) 3-D video game 
E) exotic travel 
A) designer eyewear 
B) virtual media 
C) smart TV 
D) 3-D video game 
E) exotic travel

Question 7

Pure competition is the competitive situation where

Accepted Answer

A) many sellers follow market price for identical, commodity products. 
B) one seller sets the price for a unique product. 
C) few sellers are sensitive to one another's prices. 
D) many sellers compete on nonprice factors. 
E) one or few sellers compete solely on nonprice factors. 
A) many sellers follow market price for identical, commodity products. 
B) one seller sets the price for a unique product. 
C) few sellers are sensitive to one another's prices. 
D) many sellers compete on nonprice factors. 
E) one or few sellers compete solely on nonprice factors.

Question 8

Most public utilities must petition regulatory commissions in order to obtain a rate increase. Which pricing constraint does this statement demonstrate?

Accepted Answer

A) demand for the product, class, or brand 
B) newness of product in the life cycle 
C) costs of production 
D) type of competitive market 
E) single product versus a product line 
A) demand for the product, class, or brand 
B) newness of product in the life cycle 
C) costs of production 
D) type of competitive market 
E) single product versus a product line

Question 9

If a firm finds the demand for one of its products is inelastic, it can increase its total revenues by

Accepted Answer

A) lowering its price. 
B) increasing fixed costs only. 
C) increasing variable costs only. 
D) increasing both fixed and variable costs. 
E) raising its price. 
A) lowering its price. 
B) increasing fixed costs only. 
C) increasing variable costs only. 
D) increasing both fixed and variable costs. 
E) raising its price.

Question 10

A movement along a demand curve (up or down) for a product occurs ___________________, assuming that other factors such as consumer tastes, price and availability of substitutes, and consumer incomes remain unchanged.

Accepted Answer

A) when its price is lowered or increased and the quantity demanded for it correspondingly increases or decreases 
B) when its demand is lowered or increased and the price offered for it correspondingly increases or decreases 
C) when its demand and price are lowered 
D) when its demand and price are increased 
E) at the break-even point 
A) when its price is lowered or increased and the quantity demanded for it correspondingly increases or decreases 
B) when its demand is lowered or increased and the price offered for it correspondingly increases or decreases 
C) when its demand and price are lowered 
D) when its demand and price are increased 
E) at the break-even point

Question 11

Which of the following statements regarding pricing constraints is most accurate?

Accepted Answer

A) When a product is in the introductory stage of the product life cycle, there is very little latitude in setting the initial price since consumers still don't know what the product can really do. 
B) The newer a product and the earlier it is in its life cycle, the higher the price that can usually be charged. 
C) The greater the number of products in a company's product line, the less the product features of similar products can affect price. 
D) The newest addition to a company's product line should always have the highest price in order to maintain the value of existing brands. 
E) To avoid cannibalization, the newest product addition to a company's product line should never have a price lower than the other offerings in the line. 
A) When a product is in the introductory stage of the product life cycle, there is very little latitude in setting the initial price since consumers still don't know what the product can really do. 
B) The newer a product and the earlier it is in its life cycle, the higher the price that can usually be charged. 
C) The greater the number of products in a company's product line, the less the product features of similar products can affect price. 
D) The newest addition to a company's product line should always have the highest price in order to maintain the value of existing brands. 
E) To avoid cannibalization, the newest product addition to a company's product line should never have a price lower than the other offerings in the line.

Question 12

SHAPE magazine is targeted at young women seeking healthier lifestyles. At a price of $3 per copy, 1.25 million copies are sold. If the price per issue is increased to $3.25, only 1 million copies would be sold. Fixed costs are $1 million and unit variable costs are $0.50 per magazine. From the information provided here, what is SHAPE magazine's total revenue obtained at the lower $3 price?

Accepted Answer

A) $3,750,000 
B) $3,250,000 
C) $3,000,000 
D) $2,125,000 
E) $1,750,000 
A) $3,750,000 
B) $3,250,000 
C) $3,000,000 
D) $2,125,000 
E) $1,750,000

Question 13

All of the following are examples of pricing objectives except

Accepted Answer

A) market share. 
B) survival. 
C) unit sales. 
D) social responsibility. 
E) competitors' prices. 
A) market share. 
B) survival. 
C) unit sales. 
D) social responsibility. 
E) competitors' prices.

Question 14

Making special adjustments to the list or quoted price would occur during __________ of the price-setting process.

Accepted Answer

A) Step 2 
B) Step 3 
C) Step 4 
D) Step 5 
E) Step 6 
A) Step 2 
B) Step 3 
C) Step 4 
D) Step 5 
E) Step 6

Question 15

Mrs. Renfro's, Inc., sells 25 different relishes in 45 states. Mrs. Renfro's chipotle corn salsa is so popular that the company cannot make enough to keep its resellers stocked. Its price of $4.50 for a jar seems just right to consumers who savor its hot and spicy taste. The popularity of hot and spicy food is an example of a __________ that Mrs. Renfro's has taken advantage of to make its product a success.

Accepted Answer

A) barter factor 
B) demand factor 
C) supply factor 
D) consumer index 
E) macroeconomic environmental factor 
A) barter factor 
B) demand factor 
C) supply factor 
D) consumer index 
E) macroeconomic environmental factor

Question 16

A negative aspect of selecting unit volume as a pricing objective is that

Accepted Answer

A) production often cannot keep up with demand. 
B) there are increased carrying costs with extensive inventories. 
C) if price reductions are used to achieve volume objectives, it can sometimes come at the expense of profits. 
D) it can create competition between divisions within the organization itself, causing conflicts over the allocation of resources. 
E) it always positively correlates with a sales revenue objective. 
A) production often cannot keep up with demand. 
B) there are increased carrying costs with extensive inventories. 
C) if price reductions are used to achieve volume objectives, it can sometimes come at the expense of profits. 
D) it can create competition between divisions within the organization itself, causing conflicts over the allocation of resources. 
E) it always positively correlates with a sales revenue objective.

Question 17

According to the price equation, final price equals __________ minus incentives and allowances plus extra fees.

Accepted Answer

A) salaries 
B) list price 
C) profits 
D) trade-ins 
E) taxes 
A) salaries 
B) list price 
C) profits 
D) trade-ins 
E) taxes

Question 18

A buying situation can involve comparing the costs and benefits of substitute items-such as real sugar to the sugar substitute Splenda, which, although more expensive than sugar, is purchased by many consumers because it contains no calories. This situation involves the consumer considering

Accepted Answer

A) a marginal analysis. 
B) a profit equation. 
C) a break-even analysis. 
D) price elasticity of demand. 
E) a reference value. 
A) a marginal analysis. 
B) a profit equation. 
C) a break-even analysis. 
D) price elasticity of demand. 
E) a reference value.

Question 19

Describe the types of competitive markets and give an example of each one.

Accepted Answer

There are four types of competitive mark

Question 20

From a marketing viewpoint, __________ is the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

Accepted Answer

A) value 
B) price 
C) barter 
D) currency 
E) a tariff 
A) value 
B) price 
C) barter 
D) currency 
E) a tariff

Exam 13: Building the Price Foundation

A reference value involves comparing the costs and benefits of

The horizontal axis of a demand curve graph represents

A firm's profit objective is often measured in terms of ROI. The acronym ROI stands for

Which of the following illustrates a shift in the demand curve?

To increase value, marketers may __________, decrease price, or do both.

Vizio, Inc., is the largest contender in the North American __________ market.

Pure competition is the competitive situation where

Most public utilities must petition regulatory commissions in order to obtain a rate increase. Which pricing constraint does this statement demonstrate?

If a firm finds the demand for one of its products is inelastic, it can increase its total revenues by

A movement along a demand curve (up or down) for a product occurs ___________________, assuming that other factors such as consumer tastes, price and availability of substitutes, and consumer incomes remain unchanged.

Which of the following statements regarding pricing constraints is most accurate?

All of the following are examples of pricing objectives except

Making special adjustments to the list or quoted price would occur during __________ of the price-setting process.

A negative aspect of selecting unit volume as a pricing objective is that

According to the price equation, final price equals __________ minus incentives and allowances plus extra fees.

A buying situation can involve comparing the costs and benefits of substitute items-such as real sugar to the sugar substitute Splenda, which, although more expensive than sugar, is purchased by many consumers because it contains no calories. This situation involves the consumer considering

Describe the types of competitive markets and give an example of each one.

From a marketing viewpoint, __________ is the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

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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