Question 1

To discourage consumers from buying in gray markets,some manufacturers have:

Accepted Answer

A)  warned consumers that their warranty is null and void if purchased through a gray market supplier. 
B)  shifted advertising resources from gray markets to red markets. 
C)  increased the price to gray markets while maintaining existing prices to blue markets. 
D)  petitioned government regulators to impose price controls. 
E)  lowered the quality of their products to reduce gray market demand. 
A)  warned consumers that their warranty is null and void if purchased through a gray market supplier. 
B)  shifted advertising resources from gray markets to red markets. 
C)  increased the price to gray markets while maintaining existing prices to blue markets. 
D)  petitioned government regulators to impose price controls. 
E)  lowered the quality of their products to reduce gray market demand.

Question 2

A customer orientation toward pricing explicitly invokes the concept of:

Accepted Answer

A)  knowing the dimensions of the target market. 
B)  positioning. 
C)  the income effect. 
D)  value. 
E)  None of these. 
A)  knowing the dimensions of the target market. 
B)  positioning. 
C)  the income effect. 
D)  value. 
E)  None of these.

Question 3

Dan is especially price sensitive.He has been known to line up on "Black Friday" (the day after Thanksgiving)at 4 a.m.in order to be among the first to buy sale items.Dan would likely respond to a __________ pricing strategy.

Accepted Answer

A)  high / low 
B)  premium 
C)  slotting allowance 
D)  horizontal flattening 
E)  vertical triangulation 
A)  high / low 
B)  premium 
C)  slotting allowance 
D)  horizontal flattening 
E)  vertical triangulation

Question 4

According to a typical demand curve,the higher the price:

Accepted Answer

A)  the greater the income effect. 
B)  the lower the quantity consumers will buy. 
C)  the lower the output of producers. 
D)  the greater the production costs. 
E)  the lower the cross-price elasticity. 
A)  the greater the income effect. 
B)  the lower the quantity consumers will buy. 
C)  the lower the output of producers. 
D)  the greater the production costs. 
E)  the lower the cross-price elasticity.

Question 5

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 6

Fenton has always used standard markups to determine the prices for his clothing products.You are advising him to change his pricing strategy.What advice would you give Fenton?

Accepted Answer

You would advise him to price

Question 7

It is the responsibility of __________ to determine the ethical approach to setting prices so consumers find value and the firm can make a profit.

Accepted Answer

A)  the Better Business Bureau 
B)  federal regulators 
C)  the American Marketing Association 
D)  marketers themselves 
E)  industry standards boards 
A)  the Better Business Bureau 
B)  federal regulators 
C)  the American Marketing Association 
D)  marketers themselves 
E)  industry standards boards

Question 8

A study found that,among addicted smokers,a 10 percent increase in the price of cigarettes resulted in a 2 percent decrease in quantity demanded.For these consumers,cigarettes have a(n)__________ price elasticity demand.

Accepted Answer

A)  elastic 
B)  inelastic 
C)  cross-price 
D)  income effect 
E)  substitution effect 
A)  elastic 
B)  inelastic 
C)  cross-price 
D)  income effect 
E)  substitution effect

Question 9

A demand curve is built assuming that:

Accepted Answer

A)  income is derived from demand. 
B)  price remains the same,and fixed costs change. 
C)  everything but price and demand remains the same. 
D)  a change in quantity demanded causes a change in price. 
E)  the firm does not advertise. 
A)  income is derived from demand. 
B)  price remains the same,and fixed costs change. 
C)  everything but price and demand remains the same. 
D)  a change in quantity demanded causes a change in price. 
E)  the firm does not advertise.

Question 10

Ryan gave the manager of his convenience store a set of binoculars so she could see the gasoline prices charged by the other convenience store at that intersection.Ryan told the manager to always match the gasoline prices of the other store.Ryan is using a __________ pricing strategy.

Accepted Answer

A)  maximizing profits 
B)  target profit 
C)  target return 
D)  status quo 
E)  sales 
A)  maximizing profits 
B)  target profit 
C)  target return 
D)  status quo 
E)  sales

Question 11

The key to successful pricing is to match the product with the consumer's perception of value.

Accepted Answer

A) True 
 B)False

Question 12

Sales of national brands of orange juice tend to increase when the economy is doing well,while sales of generic orange juice increase when the economy is not doing well.Among industry members this is called the "orange juice indicator." This is an example of how ___________ impacts demand for products.

Accepted Answer

A)  the substitution effect 
B)  the price inelasticity coefficient 
C)  the income effect 
D)  the target return effect 
E)  cross-price elasticity 
A)  the substitution effect 
B)  the price inelasticity coefficient 
C)  the income effect 
D)  the target return effect 
E)  cross-price elasticity

Question 13

The contribution per unit is:

Accepted Answer

A)  price minus total costs. 
B)  price minus total variable cost. 
C)  price minus variable cost per unit. 
D)  total revenue minus total cost. 
E)  break-even quantity divided by total fixed costs. 
A)  price minus total costs. 
B)  price minus total variable cost. 
C)  price minus variable cost per unit. 
D)  total revenue minus total cost. 
E)  break-even quantity divided by total fixed costs.

Question 14

At the break-even point,profits are maximized.

Accepted Answer

A) True 
 B)False

Question 15

When Ursula decides how to price new products in her gift store,she measures the value of her product offerings against those of the other stores in her area.Ursula uses a __________ pricing strategy.

Accepted Answer

A)  maximizing profits 
B)  target profit 
C)  target return 
D)  competitor-oriented 
E)  sales oriented 
A)  maximizing profits 
B)  target profit 
C)  target return 
D)  competitor-oriented 
E)  sales oriented

Question 16

Karen initially charged $80 for an hour-long massage and averaged 20 clients per week.When she raised her price to $100,the number of massages decreased to 15 per week.What is the price elasticity of demand for her service?

Accepted Answer

Price elasticity of demand is the percen

Question 17

The commercial airline industry is considered what type of market?

Accepted Answer

A)  Oligopoly 
B)  Monopoly 
C)  Monopolistic competition 
D)  Pure competition 
E)  Duopoly 
A)  Oligopoly 
B)  Monopoly 
C)  Monopolistic competition 
D)  Pure competition 
E)  Duopoly

Question 18

Historically,prices were:

Accepted Answer

A)  the center of attention in almost all marketing strategies. 
B)  analyzed and changed constantly. 
C)  calculated to minimize contribution per unit. 
D)  allowed to vary seasonally as cross-shopping tendencies fluctuated. 
E)  rarely changed except in response to radical shifts in market conditions. 
A)  the center of attention in almost all marketing strategies. 
B)  analyzed and changed constantly. 
C)  calculated to minimize contribution per unit. 
D)  allowed to vary seasonally as cross-shopping tendencies fluctuated. 
E)  rarely changed except in response to radical shifts in market conditions.

Question 19

Bernard's firm has set corporate direction to become one of the leaders in each of its significant market segments.It was Bernard's job to examine the pricing to determine how to maximize market share,even at the expense of profits in the short run.What kind of company objective would guide Bernard's effort?

Accepted Answer

A)  Industry-oriented 
B)  Sales-oriented 
C)  Competitor-oriented 
D)  Innovation-oriented 
E)  Customer-oriented 
A)  Industry-oriented 
B)  Sales-oriented 
C)  Competitor-oriented 
D)  Innovation-oriented 
E)  Customer-oriented

Question 20

Near the end of the summer season,Sergio still has a large inventory of bathing suits.He needs to sell them rather than holding them over till next season,because colors and styles often change.He plans to offer them at 30 percent off the retail price.Sergio hopes that demand for bathing suits at the end of the season is:

Accepted Answer

A)  cross-price elastic. 
B)  price inelastic. 
C)  price elastic. 
D)  status quo elastic. 
E)  derived demand inelastic. 
A)  cross-price elastic. 
B)  price inelastic. 
C)  price elastic. 
D)  status quo elastic. 
E)  derived demand inelastic.

To discourage consumers from buying in gray markets,some manufacturers have:

A customer orientation toward pricing explicitly invokes the concept of:

Dan is especially price sensitive.He has been known to line up on "Black Friday" (the day after Thanksgiving)at 4 a.m.in order to be among the first to buy sale items.Dan would likely respond to a __________ pricing strategy.

According to a typical demand curve,the higher the price:

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.

Fenton has always used standard markups to determine the prices for his clothing products.You are advising him to change his pricing strategy.What advice would you give Fenton?

It is the responsibility of __________ to determine the ethical approach to setting prices so consumers find value and the firm can make a profit.

A study found that,among addicted smokers,a 10 percent increase in the price of cigarettes resulted in a 2 percent decrease in quantity demanded.For these consumers,cigarettes have a(n)__________ price elasticity demand.

A demand curve is built assuming that:

Ryan gave the manager of his convenience store a set of binoculars so she could see the gasoline prices charged by the other convenience store at that intersection.Ryan told the manager to always match the gasoline prices of the other store.Ryan is using a __________ pricing strategy.

The key to successful pricing is to match the product with the consumer's perception of value.

The contribution per unit is:

At the break-even point,profits are maximized.

When Ursula decides how to price new products in her gift store,she measures the value of her product offerings against those of the other stores in her area.Ursula uses a __________ pricing strategy.

Karen initially charged $80 for an hour-long massage and averaged 20 clients per week.When she raised her price to $100,the number of massages decreased to 15 per week.What is the price elasticity of demand for her service?

The commercial airline industry is considered what type of market?

Historically,prices were:

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

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 13: Pricing Concepts for Establishing Value

To discourage consumers from buying in gray markets,some manufacturers have:

A customer orientation toward pricing explicitly invokes the concept of:

Dan is especially price sensitive.He has been known to line up on "Black Friday" (the day after Thanksgiving)at 4 a.m.in order to be among the first to buy sale items.Dan would likely respond to a __________ pricing strategy.

According to a typical demand curve,the higher the price:

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.

Fenton has always used standard markups to determine the prices for his clothing products.You are advising him to change his pricing strategy.What advice would you give Fenton?

It is the responsibility of __________ to determine the ethical approach to setting prices so consumers find value and the firm can make a profit.

A study found that,among addicted smokers,a 10 percent increase in the price of cigarettes resulted in a 2 percent decrease in quantity demanded.For these consumers,cigarettes have a(n)__________ price elasticity demand.

A demand curve is built assuming that:

Ryan gave the manager of his convenience store a set of binoculars so she could see the gasoline prices charged by the other convenience store at that intersection.Ryan told the manager to always match the gasoline prices of the other store.Ryan is using a __________ pricing strategy.

The key to successful pricing is to match the product with the consumer's perception of value.

The contribution per unit is:

At the break-even point,profits are maximized.

When Ursula decides how to price new products in her gift store,she measures the value of her product offerings against those of the other stores in her area.Ursula uses a __________ pricing strategy.

Karen initially charged $80 for an hour-long massage and averaged 20 clients per week.When she raised her price to $100,the number of massages decreased to 15 per week.What is the price elasticity of demand for her service?

The commercial airline industry is considered what type of market?

Historically,prices were:

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

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