Question 1

A demand curve is built on the assumption 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)  fixed costs change with quantity demanded. 
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)  fixed costs change with quantity demanded. 
E)  the firm does not advertise.

Question 2

In a(n)_______ pricing strategy,marketers rely on the promotion of sales,during which prices are temporarily reduced to encourage purchases.

Accepted Answer

A)  high / low 
B)  EDLP 
C)  price skimming 
D)  uniform delivered 
E)  bait-and-switch 
A)  high / low 
B)  EDLP 
C)  price skimming 
D)  uniform delivered 
E)  bait-and-switch

Question 3

_______ occurs when members of the marketing channel collude to control the prices passed on to consumers.

Accepted Answer

A)  Loss leader price fixing 
B)  Bait-and-switch price fixing 
C)  Horizontal price fixing 
D)  Vertical price fixing 
E)  Predatory pricing 
A)  Loss leader price fixing 
B)  Bait-and-switch price fixing 
C)  Horizontal price fixing 
D)  Vertical price fixing 
E)  Predatory pricing

Question 4

Reese and Janelle own a boutique in the United States.Recently they took a trip to China and while there,the couple purchased a large quantity of name-brand handbags for a cost significantly lower than what the manufacturer charges for the same product in the United States.Upon their return,the couple sold the handbags in their store for less than any other store in the area.This is an example of what takes place in a(n)_______ market.

Accepted Answer

A)  black 
B)  gray 
C)  unsupervised 
D)  oligopolistic 
E)  unauthorized 
A)  black 
B)  gray 
C)  unsupervised 
D)  oligopolistic 
E)  unauthorized

Question 5

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 6

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

Accepted Answer

A)  soybeans 
B)  pens and pencils 
C)  smartphone service providers 
D)  men's clothing 
E)  electrical service to the home 
A)  soybeans 
B)  pens and pencils 
C)  smartphone service providers 
D)  men's clothing 
E)  electrical service to the home

Question 7

There is an old saying "If you have to ask the price of a yacht,you cannot afford it." Products like yachts are most likely to be associated with

Accepted Answer

A)  cross-shopping. 
B)  competitive parity pricing. 
C)  target return value. 
D)  prestige pricing. 
E)  break-even point pricing. 
A)  cross-shopping. 
B)  competitive parity pricing. 
C)  target return value. 
D)  prestige pricing. 
E)  break-even point pricing.

Question 8

The __________ occurs when unit cost drops as the quantity sold increases.

Accepted Answer

A)  slotting allowance benefit 
B)  price fixing return 
C)  improvement value effect 
D)  experience curve effect 
E)  cumulative bundling benefit 
A)  slotting allowance benefit 
B)  price fixing return 
C)  improvement value effect 
D)  experience curve effect 
E)  cumulative bundling benefit

Question 9

The major objectives associated with a market penetration pricing strategy are to

Accepted Answer

A)  capture the high end of the market demand curve and lower introduction costs. 
B)  quickly build sales and market share. 
C)  minimize customer dissatisfaction and maximize reference price value. 
D)  provide an incentive to purchase a less desirable product to obtain a more desirable product. 
E)  match competitors' prices and communicate high quality. 
A)  capture the high end of the market demand curve and lower introduction costs. 
B)  quickly build sales and market share. 
C)  minimize customer dissatisfaction and maximize reference price value. 
D)  provide an incentive to purchase a less desirable product to obtain a more desirable product. 
E)  match competitors' prices and communicate high quality.

Question 10

Pricing strategies should be aligned with a firm's overall goals and objectives.

Accepted Answer

A) True 
 B)False

Question 11

__________ pricing tactics lower the price of a product below the store's cost.

Accepted Answer

A)  Fixed 
B)  Zone 
C)  Regular 
D)  Loss leader 
E)  Cost-based 
A)  Fixed 
B)  Zone 
C)  Regular 
D)  Loss leader 
E)  Cost-based

Question 12

Pure competition occurs when there are many firms competing for customers in a given market but their products are differentiated.

Accepted Answer

A) True 
 B)False

Question 13

Differentiate between the four levels of competition and offer examples of each type.

Accepted Answer

The four levels of competition are monop

Question 14

Rodi owns Hallman's auto repair service.He has observed over the years that customers keep their high-mileage cars longer when the economy is doing poorly,creating demand for his maintenance and repair service.Rodi has observed the impact of _______ on demand for his service.

Accepted Answer

A)  break-even points 
B)  the price inelasticity ratio 
C)  the income effect 
D)  the target return effect 
E)  cross-price elasticity 
A)  break-even points 
B)  the price inelasticity ratio 
C)  the income effect 
D)  the target return effect 
E)  cross-price elasticity

Question 15

Why is it more fun and challenging for a marketer to be part of a market characterized by monopolistic competition than to be part of one characterized by pure competition?

Accepted Answer

In pure competition,all products are sim

Question 16

With a __________ pricing strategy,marketers set a low initial price for the introduction of a new product or service.

Accepted Answer

A)  market penetration 
B)  bundling 
C)  price fixing 
D)  reference 
E)  skimming 
A)  market penetration 
B)  bundling 
C)  price fixing 
D)  reference 
E)  skimming

Question 17

Many years ago Honda's Accord and Ford's Taurus were the two top-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 18

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 19

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.This is an example of how _______ impacts demand for products.

Accepted Answer

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

Question 20

Julia's is an upscale women's clothing store.Prices are based on customers' beliefs about the value of the clothing.The store focuses on a limited target market and provides excellent customer service.Julia's is using a _______ pricing strategy.

Accepted Answer

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

A demand curve is built on the assumption that

In a(n)_______ pricing strategy,marketers rely on the promotion of sales,during which prices are temporarily reduced to encourage purchases.

_______ occurs when members of the marketing channel collude to control the prices passed on to consumers.

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

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

There is an old saying "If you have to ask the price of a yacht,you cannot afford it." Products like yachts are most likely to be associated with

The __________ occurs when unit cost drops as the quantity sold increases.

The major objectives associated with a market penetration pricing strategy are to

Pricing strategies should be aligned with a firm's overall goals and objectives.

__________ pricing tactics lower the price of a product below the store's cost.

Pure competition occurs when there are many firms competing for customers in a given market but their products are differentiated.

Differentiate between the four levels of competition and offer examples of each type.

Rodi owns Hallman's auto repair service.He has observed over the years that customers keep their high-mileage cars longer when the economy is doing poorly,creating demand for his maintenance and repair service.Rodi has observed the impact of _______ on demand for his service.

Why is it more fun and challenging for a marketer to be part of a market characterized by monopolistic competition than to be part of one characterized by pure competition?

With a __________ pricing strategy,marketers set a low initial price for the introduction of a new product or service.

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.

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.This is an example of how _______ impacts demand for products.

Julia's is an upscale women's clothing store.Prices are based on customers' beliefs about the value of the clothing.The store focuses on a limited target market and provides excellent customer service.Julia's is using a _______ pricing strategy.

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Social and Mobile Marketing

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 Omnichannel Marketing

Integrated Marketing Communications

Advertising, Public Relations, and Sales Promotions

Personal Selling and Sales Management

Filters

Exam 14: Pricing Concepts for Establishing Value

A demand curve is built on the assumption that

In a(n)_______ pricing strategy,marketers rely on the promotion of sales,during which prices are temporarily reduced to encourage purchases.

_______ occurs when members of the marketing channel collude to control the prices passed on to consumers.

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

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

There is an old saying "If you have to ask the price of a yacht,you cannot afford it." Products like yachts are most likely to be associated with

The __________ occurs when unit cost drops as the quantity sold increases.

The major objectives associated with a market penetration pricing strategy are to

Pricing strategies should be aligned with a firm's overall goals and objectives.

__________ pricing tactics lower the price of a product below the store's cost.

Pure competition occurs when there are many firms competing for customers in a given market but their products are differentiated.

Differentiate between the four levels of competition and offer examples of each type.

Rodi owns Hallman's auto repair service.He has observed over the years that customers keep their high-mileage cars longer when the economy is doing poorly,creating demand for his maintenance and repair service.Rodi has observed the impact of _______ on demand for his service.

Why is it more fun and challenging for a marketer to be part of a market characterized by monopolistic competition than to be part of one characterized by pure competition?

With a __________ pricing strategy,marketers set a low initial price for the introduction of a new product or service.

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.

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.This is an example of how _______ impacts demand for products.

Julia's is an upscale women's clothing store.Prices are based on customers' beliefs about the value of the clothing.The store focuses on a limited target market and provides excellent customer service.Julia's is using a _______ pricing strategy.

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Social and Mobile Marketing

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 Omnichannel Marketing

Integrated Marketing Communications

Advertising, Public Relations, and Sales Promotions

Personal Selling and Sales Management

Filters