Question 1

What is price? What are its determinants?

Accepted Answer

Price is the amount of money paid by a buyer to a seller for a particular product or service.Payment terms are a part of the price.Buyers and sellers know that price can be changed by adjustments in the financial terms or the product characteristics and its bundle of ancillary services.A product can provide value in business markets not only when its invoice price is lower than the competitor's,but when its performance is superior.The fundamental job of the business marketing program is to establish and extend the sphere of benefits or value provided for a "price." Also no item is priced in isolation.Prices for countless items are connected in an exchange economy
Prices are rightly determined by demand factors-price sensitivity,connectedness to other products and customer perceptions-interacting with cost factors and competitive factors in the economic environment.At the same time,we must acknowledge the intersection of market factors with company strategy issues-targeting,positioning,programming and goals-within a marketing environment that is circumscribed by trade factors and legal factors

Question 2

Sellers promise exclusivity in order to:

Accepted Answer

A)  Restrain intrabrand competition 
B)  Restrain interbrand competition 
C)  Prevent competition from new resellers 
D)  Evade the Robinson Patman Act 
E)  Restrict customer choice 
A)  Restrain intrabrand competition 
B)  Restrain interbrand competition 
C)  Prevent competition from new resellers 
D)  Evade the Robinson Patman Act 
E)  Restrict customer choice A

Question 3

The primary motivation in distributive bargaining is:

Accepted Answer

A)  Maximize own outcome 
B)  Maximize joint outcome 
C)  "You win, I lose" 
D)  Maximize others' outcome 
E)  Let others gain 
A)  Maximize own outcome 
B)  Maximize joint outcome 
C)  "You win, I lose" 
D)  Maximize others' outcome 
E)  Let others gain A

Question 4

This is the amount of money paid by a buyer to a seller for a particular product or service.

Accepted Answer

A)  Bonus 
B)  Price 
C)  Profit 
D)  Income 
E)  Dividend 
A)  Bonus 
B)  Price 
C)  Profit 
D)  Income 
E)  Dividend

Question 5

A product can provide value in business markets not only when its invoice price is lower than the competitor's,but also when its performance is superior.

Accepted Answer

A) True 
 B)False

Question 6

According to the Robinson-Patman Act,illegal price discrimination:

Accepted Answer

A)  Results whenever the firm fails to maintain strict per unit prices in all markets 
B)  Occurs when different prices are charged for different products 
C)  Occurs when competition is adversely affected 
D)  Can only occur among firms that distribute products nationwide 
E)  Occurs when there are price differences based on quantity purchased 
A)  Results whenever the firm fails to maintain strict per unit prices in all markets 
B)  Occurs when different prices are charged for different products 
C)  Occurs when competition is adversely affected 
D)  Can only occur among firms that distribute products nationwide 
E)  Occurs when there are price differences based on quantity purchased

Question 7

At break-even quantity,total revenue equals total cost.

Accepted Answer

A) True 
 B)False

Question 8

Explain oligopolies using the economic model?

Accepted Answer

Many business markets are oligopolies,ch

Question 9

In monopolistic competition,firms making substantial profits tend to be emulated,this shrinks the once substantial profits,because when _____,there are no profits.

Accepted Answer

A)  Marginal revenue equals average revenue 
B)  Average total cost equals average fixed cost 
C)  Average revenue equals marginal cost 
D)  Marginal revenue equals average total cost 
E)  Average revenue equals average total cost 
A)  Marginal revenue equals average revenue 
B)  Average total cost equals average fixed cost 
C)  Average revenue equals marginal cost 
D)  Marginal revenue equals average total cost 
E)  Average revenue equals average total cost

Question 10

If products can be differentiated via the media,a firm should follow a _____ strategy and allow reseller margins to erode.

Accepted Answer

A)  Pull 
B)  Advertising 
C)  Channel 
D)  Distributor 
E)  Push 
A)  Pull 
B)  Advertising 
C)  Channel 
D)  Distributor 
E)  Push

Question 11

When substitute products differ in size,the pricing task tends to be driven largely by:

Accepted Answer

A)  Demand factors 
B)  Legal factors 
C)  Trade factors 
D)  Competitive factors 
E)  Cost factors 
A)  Demand factors 
B)  Legal factors 
C)  Trade factors 
D)  Competitive factors 
E)  Cost factors

Question 12

This is the name frequently given to this task of evaluating the incremental volume needed to cover incremental costs or the incremental loss of average revenue in the instance of price cuts.

Accepted Answer

A)  Profit analysis 
B)  Production analysis 
C)  Unit sales measure 
D)  Marginal analysis 
E)  Revenue analysis 
A)  Profit analysis 
B)  Production analysis 
C)  Unit sales measure 
D)  Marginal analysis 
E)  Revenue analysis

Question 13

The key attitude of integrative negotiation is:

Accepted Answer

A)  "What's the best way that I can profit from this deal?" 
B)  "Gain or loss does not really matter" 
C)  "You win, I lose" 
D)  "I win, you lose" 
E)  "What's the best way to address the needs of all parties?" 
A)  "What's the best way that I can profit from this deal?" 
B)  "Gain or loss does not really matter" 
C)  "You win, I lose" 
D)  "I win, you lose" 
E)  "What's the best way to address the needs of all parties?"

Question 14

In order to protect the image of its product and its right to make a profit,sellers are allowed to manage reseller prices directly.

Accepted Answer

A) True 
 B)False

Question 15

_____ format reflects the buyer's ability to identify capable suppliers and also recognizes the significant costs of bid preparation.

Accepted Answer

A)  Open bidding 
B)  Closed bidding 
C)  Negotiation 
D)  Collusive bidding 
E)  Job bidding 
A)  Open bidding 
B)  Closed bidding 
C)  Negotiation 
D)  Collusive bidding 
E)  Job bidding

Question 16

Under a pull strategy,advertising is focused on end users in hopes that their requests to outlets would cause them to,in turn,order the product from the chain member "above" them in the channel.

Accepted Answer

A) True 
 B)False

Question 17

Firms in an oligopolistic market may strive for a differential advantage; however any advantage tends to net only narrow latitude for:

Accepted Answer

A)  Superior customer service 
B)  Brand image 
C)  Price premium 
D)  Logistical excellence 
E)  Brand name 
A)  Superior customer service 
B)  Brand image 
C)  Price premium 
D)  Logistical excellence 
E)  Brand name

Question 18

Customer restrictions:

Accepted Answer

A)  Are prohibited by the Robinson-Patman Act 
B)  Are implemented through exclusivity 
C)  Allow distributors to sell to other distributors 
D)  Specify the type of business the reseller may or may not serve 
E)  Limits distributors to only the firm's largest accounts 
A)  Are prohibited by the Robinson-Patman Act 
B)  Are implemented through exclusivity 
C)  Allow distributors to sell to other distributors 
D)  Specify the type of business the reseller may or may not serve 
E)  Limits distributors to only the firm's largest accounts

Question 19

Which of the following market models is least likely to be encountered in the real world?

Accepted Answer

A)  Monopolistic competition 
B)  Oligopoly 
C)  Pure competition 
D)  Oligopsony 
E)  Monopsony 
A)  Monopolistic competition 
B)  Oligopoly 
C)  Pure competition 
D)  Oligopsony 
E)  Monopsony

Question 20

Traditionally,the "driver" product of a group of complementary products is priced low to penetrate the market and "set the table" for high margins on the follow-up business of parts,consumables or service.

Accepted Answer

A) True 
 B)False

What is price? What are its determinants?

Sellers promise exclusivity in order to:

The primary motivation in distributive bargaining is:

This is the amount of money paid by a buyer to a seller for a particular product or service.

A product can provide value in business markets not only when its invoice price is lower than the competitor's,but also when its performance is superior.

According to the Robinson-Patman Act,illegal price discrimination:

At break-even quantity,total revenue equals total cost.

Explain oligopolies using the economic model?

In monopolistic competition,firms making substantial profits tend to be emulated,this shrinks the once substantial profits,because when _____,there are no profits.

If products can be differentiated via the media,a firm should follow a _____ strategy and allow reseller margins to erode.

When substitute products differ in size,the pricing task tends to be driven largely by:

This is the name frequently given to this task of evaluating the incremental volume needed to cover incremental costs or the incremental loss of average revenue in the instance of price cuts.

The key attitude of integrative negotiation is:

In order to protect the image of its product and its right to make a profit,sellers are allowed to manage reseller prices directly.

_____ format reflects the buyer's ability to identify capable suppliers and also recognizes the significant costs of bid preparation.

Under a pull strategy,advertising is focused on end users in hopes that their requests to outlets would cause them to,in turn,order the product from the chain member "above" them in the channel.

Firms in an oligopolistic market may strive for a differential advantage; however any advantage tends to net only narrow latitude for:

Customer restrictions:

Which of the following market models is least likely to be encountered in the real world?

Traditionally,the "driver" product of a group of complementary products is priced low to penetrate the market and "set the table" for high margins on the follow-up business of parts,consumables or service.

Introduction to Business Marketing

The Character of Business Marketing

The Purchasing Function

Organizational Buyer Behavior

Market Opportunities: Current and Potential

Marketing Strategy

Weaving Marketing Into the Fabric of the Firm

Developing and Managing Offerings: What Do Customers

Business Marketing Channels: Partnerships for...

Creating Customer Dialogue

Communicating Via Advertising, trade Shows and PR

The One to One Media

Sales and Sales Management

Evaluating Marketing Efforts

Customer Retention and Maximization

Filters

Exam 14: Pricing and Negotiating for Value

What is price? What are its determinants?

Sellers promise exclusivity in order to:

The primary motivation in distributive bargaining is:

This is the amount of money paid by a buyer to a seller for a particular product or service.

A product can provide value in business markets not only when its invoice price is lower than the competitor's,but also when its performance is superior.

According to the Robinson-Patman Act,illegal price discrimination:

At break-even quantity,total revenue equals total cost.

Explain oligopolies using the economic model?

In monopolistic competition,firms making substantial profits tend to be emulated,this shrinks the once substantial profits,because when _____,there are no profits.

If products can be differentiated via the media,a firm should follow a _____ strategy and allow reseller margins to erode.

When substitute products differ in size,the pricing task tends to be driven largely by:

This is the name frequently given to this task of evaluating the incremental volume needed to cover incremental costs or the incremental loss of average revenue in the instance of price cuts.

The key attitude of integrative negotiation is:

In order to protect the image of its product and its right to make a profit,sellers are allowed to manage reseller prices directly.

_____ format reflects the buyer's ability to identify capable suppliers and also recognizes the significant costs of bid preparation.

Under a pull strategy,advertising is focused on end users in hopes that their requests to outlets would cause them to,in turn,order the product from the chain member "above" them in the channel.

Firms in an oligopolistic market may strive for a differential advantage; however any advantage tends to net only narrow latitude for:

Customer restrictions:

Which of the following market models is least likely to be encountered in the real world?

Traditionally,the "driver" product of a group of complementary products is priced low to penetrate the market and "set the table" for high margins on the follow-up business of parts,consumables or service.

Introduction to Business Marketing

The Character of Business Marketing

The Purchasing Function

Organizational Buyer Behavior

Market Opportunities: Current and Potential

Marketing Strategy

Weaving Marketing Into the Fabric of the Firm

Developing and Managing Offerings: What Do Customers

Business Marketing Channels: Partnerships for...

Creating Customer Dialogue

Communicating Via Advertising, trade Shows and PR

The One to One Media

Sales and Sales Management

Evaluating Marketing Efforts

Customer Retention and Maximization

Filters