Question 1

The fact that millions of consumers are using online search engines for comparison shopping has:

Accepted Answer

A) reduced demand. 
B) increased price elasticity of demand. 
C) reduced the income effect. 
D) reduced price elasticity of demand. 
E) increased the income effect. 
A) reduced demand. 
B) increased price elasticity of demand. 
C) reduced the income effect. 
D) reduced price elasticity of demand. 
E) increased the income effect.

Question 2

Barry customizes Harley-Davidson motorcycles.No two cycles are alike.He notices that very few customers even ask the price of his motorcycles before they decide to purchase them.Demand for his motorcycles is probably:

Accepted Answer

A) price sensitive. 
B) price elastic. 
C) price inelastic. 
D) income elastic. 
E) cross-price elastic. 
A) price sensitive. 
B) price elastic. 
C) price inelastic. 
D) income elastic. 
E) cross-price elastic.

Question 3

Earl was known for driving 30 miles to save a dollar on the price for his favorite beverage.Earl perceived price as ________________,while most consumers recognize price as the ______________ made to acquire a good or service.

Accepted Answer

A) money paid; overall sacrifice 
B) variable cost; fixed cost 
C) fixed cost; variable payment 
D) overall sacrifice; monetary payment 
E) break-even amount; price elasticity 
A) money paid; overall sacrifice 
B) variable cost; fixed cost 
C) fixed cost; variable payment 
D) overall sacrifice; monetary payment 
E) break-even amount; price elasticity

Question 4

Suppose that a friend asks you to drive him to the airport this weekend so that he can catch a flight.He pays you for the gas used driving to the airport,and for the cost of parking the car at the airport while you help him in with his bags.He then declares that you are now "even," since he has fully compensated you for any costs you incurred in helping him get to his flight.From your perspective,what aspects of the "price" of taking your friend to the airport has he omitted?

Accepted Answer

The full sacrifice of taking t

Question 5

Describe a situation where you,as a consumer,often associate price with quality.

Accepted Answer

Answers will vary but should focus on a

Question 6

The observation that consumers are generally more sensitive to price increases than to price decreases suggests that:

Accepted Answer

A) most consumers cannot remember what price they paid the last time they bought a particular product. 
B) it is easier to lose customers with a price increase than to gain customers with a price decrease. 
C) most consumers would rather skip buying a product than pay a higher price. 
D) most consumers are emotionally attached to their favorite products and are unlikely to change,even if the price changes. 
E) firms gain more customers with price decreases than they lose with price increases. 
A) most consumers cannot remember what price they paid the last time they bought a particular product. 
B) it is easier to lose customers with a price increase than to gain customers with a price decrease. 
C) most consumers would rather skip buying a product than pay a higher price. 
D) most consumers are emotionally attached to their favorite products and are unlikely to change,even if the price changes. 
E) firms gain more customers with price decreases than they lose with price increases.

Question 7

If the fixed costs of manufacturing a new cell phone are $10,000,the sales price is $60,and variable cost per unit is $20,the break-even point is:

Accepted Answer

A) 100 units. 
B) 4,000 units. 
C) 20 units. 
D) 1,000 units. 
E) 250 units. 
A) 100 units. 
B) 4,000 units. 
C) 20 units. 
D) 1,000 units. 
E) 250 units.

Question 8

Unlike product,promotion,or place,price is the only part of the marketing mix:

Accepted Answer

A) that offers the opportunity for an oligopoly. 
B) that is subject to gray market manipulation. 
C) that leads to competition. 
D) that generates revenue. 
E) all of these. 
A) that offers the opportunity for an oligopoly. 
B) that is subject to gray market manipulation. 
C) that leads to competition. 
D) that generates revenue. 
E) all of these.

Question 9

Assume the demand for electricity,a necessity with few substitutes,is -0.2.If the electric company raised its rates by 10 percent,we would expect:

Accepted Answer

A) a 10 percent decrease in quantity demanded. 
B) a 2 percent increase in quantity demanded. 
C) a 10 percent increase in quantity demanded. 
D) a 2 percent decrease in quantity demanded. 
E) a 5 percent decrease in quantity demanded. 
A) a 10 percent decrease in quantity demanded. 
B) a 2 percent increase in quantity demanded. 
C) a 10 percent increase in quantity demanded. 
D) a 2 percent decrease in quantity demanded. 
E) a 5 percent decrease in quantity demanded.

Question 10

Price is the only part of the marketing mix that does not generate costs.

Accepted Answer

A) True 
 B)False

Question 11

If consumers are more sensitive to price increases than price decreases,what does that say about price elasticity of demand?

Accepted Answer

It means that firms will lose

Question 12

In a market with _______________,there are many firms providing differentiated products.

Accepted Answer

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

Question 13

Chet knows the pro shops selling his golf photography will "keystone" his products.He also knows sales will decline significantly if the retail price is greater than $200.The maximum wholesale price Chet can charge is:

Accepted Answer

A) $200. 
B) $100. 
C) $50. 
D) $10. 
E) It cannot be determined from this information. 
A) $200. 
B) $100. 
C) $50. 
D) $10. 
E) It cannot be determined from this information.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Consumers judge the benefits the product delivers against the ______________ necessary to obtain it.

Accepted Answer

A) monetary cost 
B) profit 
C) variable cost 
D) total return 
E) sacrifice 
A) monetary cost 
B) profit 
C) variable cost 
D) total return 
E) sacrifice

Question 16

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 17

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 18

Many years ago Honda's Accord and Ford's Taurus were the top two selling cars in the United States.As the year was coming to an end,Ford cut the price of the Taurus,hoping to outsell the Accord and allow Ford to claim that "Taurus is the best-selling car in America." Ford was using a ___________________ pricing strategy.

Accepted Answer

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

Question 19

Cindy went shopping for a new outfit.She bought a low-priced shirt at a discount store,and combined it with an expensive designer skirt.Which of the following terms best describes Cindy's actions?

Accepted Answer

A) Cross-shopping 
B) The income effect 
C) Cross-price elasticity 
D) The substitution effect 
E) Specialty shopping 
A) Cross-shopping 
B) The income effect 
C) Cross-price elasticity 
D) The substitution effect 
E) Specialty shopping

Question 20

Marketers can use eBay as a part of the marketing strategy.It is important to consider how to achieve profitable prices by observing all the following EXCEPT:

Accepted Answer

A) Set the starting price relatively high so that your prices won't suffer. 
B) Charge for shipping but not too much. 
C) Use reserve prices with caution. 
D) Hold longer auctions. 
E) Don't flood the market. 
A) Set the starting price relatively high so that your prices won't suffer. 
B) Charge for shipping but not too much. 
C) Use reserve prices with caution. 
D) Hold longer auctions. 
E) Don't flood the market.

The fact that millions of consumers are using online search engines for comparison shopping has:

Barry customizes Harley-Davidson motorcycles.No two cycles are alike.He notices that very few customers even ask the price of his motorcycles before they decide to purchase them.Demand for his motorcycles is probably:

Earl was known for driving 30 miles to save a dollar on the price for his favorite beverage.Earl perceived price as __,while most consumers recognize price as the made to acquire a good or service.

Describe a situation where you,as a consumer,often associate price with quality.

The observation that consumers are generally more sensitive to price increases than to price decreases suggests that:

If the fixed costs of manufacturing a new cell phone are $10,000,the sales price is $60,and variable cost per unit is $20,the break-even point is:

Unlike product,promotion,or place,price is the only part of the marketing mix:

Assume the demand for electricity,a necessity with few substitutes,is -0.2.If the electric company raised its rates by 10 percent,we would expect:

Price is the only part of the marketing mix that does not generate costs.

If consumers are more sensitive to price increases than price decreases,what does that say about price elasticity of demand?

In a market with _______________,there are many firms providing differentiated products.

Chet knows the pro shops selling his golf photography will "keystone" his products.He also knows sales will decline significantly if the retail price is greater than $200.The maximum wholesale price Chet can charge is:

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

Consumers judge the benefits the product delivers against the ______________ necessary to obtain it.

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?

The contribution per unit is:

Cindy went shopping for a new outfit.She bought a low-priced shirt at a discount store,and combined it with an expensive designer skirt.Which of the following terms best describes Cindy's actions?

Marketers can use eBay as a part of the marketing strategy.It is important to consider how to achieve profitable prices by observing all the following EXCEPT:

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

The fact that millions of consumers are using online search engines for comparison shopping has:

Barry customizes Harley-Davidson motorcycles.No two cycles are alike.He notices that very few customers even ask the price of his motorcycles before they decide to purchase them.Demand for his motorcycles is probably:

Earl was known for driving 30 miles to save a dollar on the price for his favorite beverage.Earl perceived price as ________________,while most consumers recognize price as the ______________ made to acquire a good or service.

Describe a situation where you,as a consumer,often associate price with quality.

The observation that consumers are generally more sensitive to price increases than to price decreases suggests that:

If the fixed costs of manufacturing a new cell phone are $10,000,the sales price is $60,and variable cost per unit is $20,the break-even point is:

Unlike product,promotion,or place,price is the only part of the marketing mix:

Assume the demand for electricity,a necessity with few substitutes,is -0.2.If the electric company raised its rates by 10 percent,we would expect:

Price is the only part of the marketing mix that does not generate costs.

If consumers are more sensitive to price increases than price decreases,what does that say about price elasticity of demand?

In a market with _______________,there are many firms providing differentiated products.

Chet knows the pro shops selling his golf photography will "keystone" his products.He also knows sales will decline significantly if the retail price is greater than $200.The maximum wholesale price Chet can charge is:

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

Consumers judge the benefits the product delivers against the ______________ necessary to obtain it.

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?

The contribution per unit is:

Cindy went shopping for a new outfit.She bought a low-priced shirt at a discount store,and combined it with an expensive designer skirt.Which of the following terms best describes Cindy's actions?

Marketers can use eBay as a part of the marketing strategy.It is important to consider how to achieve profitable prices by observing all the following EXCEPT:

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

Earl was known for driving 30 miles to save a dollar on the price for his favorite beverage.Earl perceived price as __,while most consumers recognize price as the made to acquire a good or service.