Question 1

Labor,materials,and energy are typically __________ costs.

Accepted Answer

A) fixed 
B) incidental 
C) prestige 
D) inelastic 
E) variable 
A) fixed 
B) incidental 
C) prestige 
D) inelastic 
E) variable

Question 2

Naomi tells her sales representatives the goal is to generate at least a 20 percent return on investment for all of the industrial building supplies they sell.Naomi is using a _______________ pricing strategy.

Accepted Answer

A) sales orientation 
B) target profit 
C) target return 
D) status quo 
E) competitive parity 
A) sales orientation 
B) target profit 
C) target return 
D) status quo 
E) competitive parity

Question 3

At the break-even point,profits are maximized.

Accepted Answer

A) True 
 B)False

Question 4

Winston's Ice Cream Shop has been in the same location for two decades.Last week,a new ice cream shop opened up just one block down the street.Winston's decides to sell ice cream below cost in order to drive the new shop out of business.What kind of pricing is Winston's using?

Accepted Answer

A) Predatory pricing 
B) Competitive pricing 
C) Ceiling pricing 
D) Inelastic pricing 
E) Keystoning 
A) Predatory pricing 
B) Competitive pricing 
C) Ceiling pricing 
D) Inelastic pricing 
E) Keystoning

Question 5

What does "price is the overall sacrifice a consumer makes to acquire a product" mean?

Accepted Answer

It means price is more than ju

Question 6

What is cross-price elasticity? Create an example to explain complementary products.

Accepted Answer

Cross-price elasticity is the percentage

Question 7

Traditional demand curve economic theory is used by marketers to understand _______________ in the five Cs of pricing.

Accepted Answer

A) competitors 
B) channel members 
C) cost 
D) customers 
E) company objectives 
A) competitors 
B) channel members 
C) cost 
D) customers 
E) company objectives

Question 8

Thanh owns a shoe store.In this market,there are many firms competing for the same customers,but the products offered differ by quality and price.Out of the four levels of competition,which one does this market represent?

Accepted Answer

A) Monopolistic competition 
B) Pure competition 
C) Oligopolistic competition 
D) Monopoly 
E) Dominant competition 
A) Monopolistic competition 
B) Pure competition 
C) Oligopolistic competition 
D) Monopoly 
E) Dominant competition

Question 9

Most public colleges charge less than half the price of similar private colleges.How can each type of college be delivering value?

Accepted Answer

Consumers want high value.High value can

Question 10

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 11

Because there are many firms with similar products in purely competitive markets:

Accepted Answer

A) price is determined by the laws of supply and demand. 
B) consumers develop personal preferences. 
C) firms find it easy to build strong,distinct brands. 
D) advertising is heavily used. 
E) the many competitors will focus on variable cost pricing. 
A) price is determined by the laws of supply and demand. 
B) consumers develop personal preferences. 
C) firms find it easy to build strong,distinct brands. 
D) advertising is heavily used. 
E) the many competitors will focus on variable cost pricing.

Question 12

A "no haggle" pricing policy is a type of _______________ pricing strategy.

Accepted Answer

A) maximizing profits 
B) sales orientation 
C) target return 
D) status quo 
E) customer-oriented 
A) maximizing profits 
B) sales orientation 
C) target return 
D) status quo 
E) customer-oriented

Question 13

If the price for a product increases,the demand for the complementary product will:

Accepted Answer

A) decrease. 
B) increase. 
C) stay the same. 
D) become more elastic. 
E) become more inelastic. 
A) decrease. 
B) increase. 
C) stay the same. 
D) become more elastic. 
E) become more inelastic.

Question 14

Customers must see value in a product or service before they are willing to exchange time or money to obtain it,but not all customers see the same value in a product.To analyze how many units will be sold at any given price point,marketers draw on:

Accepted Answer

A) a demand curve. 
B) the law of averages. 
C) multiple regression analyses. 
D) target return strategies. 
E) a sales orientation. 
A) a demand curve. 
B) the law of averages. 
C) multiple regression analyses. 
D) target return strategies. 
E) a sales orientation.

Question 15

When you place an item up for bid on eBay,you have the option to stipulate the lowest bid you will accept for the item.This is known as the:

Accepted Answer

A) reserve price. 
B) business price. 
C) commercial price. 
D) value price. 
E) predatory price. 
A) reserve price. 
B) business price. 
C) commercial price. 
D) value price. 
E) predatory price.

Question 16

_________________ measures consumers' sensitivity to price changes.

Accepted Answer

A) Cross-price elasticity of demand 
B) Price elasticity of demand 
C) Income elasticity of demand 
D) Competitive profit elasticity of demand 
E) Inelastic demand price parity 
A) Cross-price elasticity of demand 
B) Price elasticity of demand 
C) Income elasticity of demand 
D) Competitive profit elasticity of demand 
E) Inelastic demand price parity

Question 17

Which of the following is most likely to be characterized by pure competition in the United States?

Accepted Answer

A) Soybeans. 
B) Cereal. 
C) Soft drinks. 
D) Computer operating systems. 
E) Fast food restaurants. 
A) Soybeans. 
B) Cereal. 
C) Soft drinks. 
D) Computer operating systems. 
E) Fast food restaurants.

Question 18

Gerald has a number of customers for his lawn care service who never question his bill but expect their lawns to be perfect.These customers do not want low prices,they want:

Accepted Answer

A) a sales orientation. 
B) fixed costs. 
C) cross-price discounts. 
D) a target return. 
E) high value. 
A) a sales orientation. 
B) fixed costs. 
C) cross-price discounts. 
D) a target return. 
E) high value.

Question 19

If you were assigned the responsibility for selling your firm's products on eBay,how would you achieve the highest price? Give five specific ideas.

Accepted Answer

Student answers might include: setting t

Question 20

When working on pricing,the marketer must carefully consider the objectives of other channel members to ensure:

Accepted Answer

A) everyone makes as much profit as possible. 
B) the manufacturer remains in control of the marketing channel. 
C) pricing is consistently handled by all participants in the channel. 
D) "image" does not get in the way of effective pricing. 
E) All of these. 
A) everyone makes as much profit as possible. 
B) the manufacturer remains in control of the marketing channel. 
C) pricing is consistently handled by all participants in the channel. 
D) "image" does not get in the way of effective pricing. 
E) All of these.

Labor,materials,and energy are typically __________ costs.

Naomi tells her sales representatives the goal is to generate at least a 20 percent return on investment for all of the industrial building supplies they sell.Naomi is using a _______________ pricing strategy.

At the break-even point,profits are maximized.

Winston's Ice Cream Shop has been in the same location for two decades.Last week,a new ice cream shop opened up just one block down the street.Winston's decides to sell ice cream below cost in order to drive the new shop out of business.What kind of pricing is Winston's using?

What does "price is the overall sacrifice a consumer makes to acquire a product" mean?

What is cross-price elasticity? Create an example to explain complementary products.

Traditional demand curve economic theory is used by marketers to understand _______________ in the five Cs of pricing.

Thanh owns a shoe store.In this market,there are many firms competing for the same customers,but the products offered differ by quality and price.Out of the four levels of competition,which one does this market represent?

Most public colleges charge less than half the price of similar private colleges.How can each type of college be delivering value?

The commercial airline industry is considered what type of market?

Because there are many firms with similar products in purely competitive markets:

A "no haggle" pricing policy is a type of _______________ pricing strategy.

If the price for a product increases,the demand for the complementary product will:

Customers must see value in a product or service before they are willing to exchange time or money to obtain it,but not all customers see the same value in a product.To analyze how many units will be sold at any given price point,marketers draw on:

When you place an item up for bid on eBay,you have the option to stipulate the lowest bid you will accept for the item.This is known as the:

_________________ measures consumers' sensitivity to price changes.

Which of the following is most likely to be characterized by pure competition in the United States?

Gerald has a number of customers for his lawn care service who never question his bill but expect their lawns to be perfect.These customers do not want low prices,they want:

If you were assigned the responsibility for selling your firm's products on eBay,how would you achieve the highest price? Give five specific ideas.

When working on pricing,the marketer must carefully consider the objectives of other channel members to ensure:

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

Strategic Pricing Methods

Value Delivery: Designing the Channel and Supply Chain

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

Labor,materials,and energy are typically __________ costs.

Naomi tells her sales representatives the goal is to generate at least a 20 percent return on investment for all of the industrial building supplies they sell.Naomi is using a _______________ pricing strategy.

At the break-even point,profits are maximized.

Winston's Ice Cream Shop has been in the same location for two decades.Last week,a new ice cream shop opened up just one block down the street.Winston's decides to sell ice cream below cost in order to drive the new shop out of business.What kind of pricing is Winston's using?

What does "price is the overall sacrifice a consumer makes to acquire a product" mean?

What is cross-price elasticity? Create an example to explain complementary products.

Traditional demand curve economic theory is used by marketers to understand _______________ in the five Cs of pricing.

Thanh owns a shoe store.In this market,there are many firms competing for the same customers,but the products offered differ by quality and price.Out of the four levels of competition,which one does this market represent?

Most public colleges charge less than half the price of similar private colleges.How can each type of college be delivering value?

The commercial airline industry is considered what type of market?

Because there are many firms with similar products in purely competitive markets:

A "no haggle" pricing policy is a type of _______________ pricing strategy.

If the price for a product increases,the demand for the complementary product will:

Customers must see value in a product or service before they are willing to exchange time or money to obtain it,but not all customers see the same value in a product.To analyze how many units will be sold at any given price point,marketers draw on:

When you place an item up for bid on eBay,you have the option to stipulate the lowest bid you will accept for the item.This is known as the:

_________________ measures consumers' sensitivity to price changes.

Which of the following is most likely to be characterized by pure competition in the United States?

Gerald has a number of customers for his lawn care service who never question his bill but expect their lawns to be perfect.These customers do not want low prices,they want:

If you were assigned the responsibility for selling your firm's products on eBay,how would you achieve the highest price? Give five specific ideas.

When working on pricing,the marketer must carefully consider the objectives of other channel members to ensure:

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

Strategic Pricing Methods

Value Delivery: Designing the Channel and Supply Chain

Retailing and Multichannel Marketing

Integrated Marketing Communications

Advertising,public Relations,and Sales Promotions

Personal Selling and Sales Management

Filters