Question 1

Which of the following statements regarding pricing objectives is most accurate?

Accepted Answer

A) Pricing objectives should never change. 
B) Pricing objectives may change depending on the financial position of the company. 
C) Pricing objectives may change depending upon the relative market share of competitors. 
D) Pricing objectives are established exclusively by the marketing department. 
E) Pricing objectives are extremely sensitive to even the slightest change in the local economy. 
A) Pricing objectives should never change. 
B) Pricing objectives may change depending on the financial position of the company. 
C) Pricing objectives may change depending upon the relative market share of competitors. 
D) Pricing objectives are established exclusively by the marketing department. 
E) Pricing objectives are extremely sensitive to even the slightest change in the local economy.

Question 2

Setting a market price for a product or product class based on a subjective feel for the competitors' price or market price as the benchmark is referred to as

Accepted Answer

A) customary pricing. 
B) above-, at-, or below-market pricing. 
C) standard markup pricing. 
D) competitive margin pricing. 
E) experience curve pricing. 
A) customary pricing. 
B) above-, at-, or below-market pricing. 
C) standard markup pricing. 
D) competitive margin pricing. 
E) experience curve pricing.

Question 3

Which of the following is a profit-oriented approach to pricing?

Accepted Answer

A) skimming pricing 
B) target pricing 
C) loss-leader pricing 
D) target profit pricing 
E) standard markup pricing 
A) skimming pricing 
B) target pricing 
C) loss-leader pricing 
D) target profit pricing 
E) standard markup pricing

Question 4

The practice of exchanging products and services for other products and services rather than for money is referred to as __________.

Accepted Answer

A) barter 
B) reciprocal pricing 
C) virtual pricing 
D) balance of payments 
E) value-pricing 
A) barter 
B) reciprocal pricing 
C) virtual pricing 
D) balance of payments 
E) value-pricing

Question 5

According to Vizio, "The whole goal is to ensure that we have the right product, at the right time and the right price and __________."

Accepted Answer

A) forever rid the world of plugs and wires 
B) create customer value that is unmatched in the industry 
C) deliver it to the right people 
D) at the right place 
E) drive a seamless end-to-end value chain 
A) forever rid the world of plugs and wires 
B) create customer value that is unmatched in the industry 
C) deliver it to the right people 
D) at the right place 
E) drive a seamless end-to-end value chain

Question 6

-In Figure 11-6 above, which is a break-even chart that depicts a graphic presentation of a break-even analysis for a picture frame store, the rectangular area EBCD represents the firm's

Accepted Answer

A) fixed costs. 
B) break-even point. 
C) variable costs. 
D) profit. 
E) total revenue 
A) fixed costs. 
B) break-even point. 
C) variable costs. 
D) profit. 
E) total revenue

Question 7

Yield management is considered to be a __________ approach to pricing.

Accepted Answer

A) demand-oriented 
B) cost-oriented 
C) profit-oriented 
D) competition-oriented 
E) service-oriented 
A) demand-oriented 
B) cost-oriented 
C) profit-oriented 
D) competition-oriented 
E) service-oriented

Question 8

A manufacturing company that introduces a product must know or anticipate what specific price its __________ currently charge or may charge in the future.

Accepted Answer

A) present and potential competitors 
B) financial institutions 
C) suppliers 
D) unions 
E) regulators 
A) present and potential competitors 
B) financial institutions 
C) suppliers 
D) unions 
E) regulators

Question 9

The practice of charging a very low price for a product with the intent of driving competitors out of business is referred to as

Accepted Answer

A) price fixing. 
B) predatory pricing. 
C) price discrimination. 
D) deceptive pricing. 
E) geographical pricing. 
A) price fixing. 
B) predatory pricing. 
C) price discrimination. 
D) deceptive pricing. 
E) geographical pricing.

Question 10

Which of the following statements about the product life cycle as a pricing constraint is most accurate?

Accepted Answer

A) The newer a product is, the higher the price that can usually be charged. 
B) The later in the product life cycle a product is, the higher the price that can usually be charged. 
C) Once a product is considered nostalgic, the price will continue to rise indefinitely. 
D) Fads will generally have only two price points - high and low - but the values of those price points usually be within 10 percent of each other. 
E) Prices should not be changed until a product reaches its maturity stage 
A) The newer a product is, the higher the price that can usually be charged. 
B) The later in the product life cycle a product is, the higher the price that can usually be charged. 
C) Once a product is considered nostalgic, the price will continue to rise indefinitely. 
D) Fads will generally have only two price points - high and low - but the values of those price points usually be within 10 percent of each other. 
E) Prices should not be changed until a product reaches its maturity stage

Question 11

Setting a price to achieve an annual target return-on-investment (ROI) is referred to as

Accepted Answer

A) target return-on-investment pricing. 
B) target return-on-profit pricing. 
C) target return-on-sales pricing. 
D) target profit pricing. 
E) customary pricing. 
A) target return-on-investment pricing. 
B) target return-on-profit pricing. 
C) target return-on-sales pricing. 
D) target profit pricing. 
E) customary pricing.

Question 12

For the sake of simplicity and by convention, price elasticity figures are shown as __________.

Accepted Answer

A) positive numbers (0.64, 1.25, etc.) 
B) negative numbers (-0.64, -1.25, etc.) 
C) Greek letters (∑, ∏, etc.) 
D) Roman numerals (I, V, X, etc.) 
E) English consonants (P, Q, TR, etc.) 
A) positive numbers (0.64, 1.25, etc.) 
B) negative numbers (-0.64, -1.25, etc.) 
C) Greek letters (∑, ∏, etc.) 
D) Roman numerals (I, V, X, etc.) 
E) English consonants (P, Q, TR, etc.)

Question 13

All of the following statements about price are true EXCEPT:

Accepted Answer

A) Small changes in price can have big effects on both the number of units sold and company profit. 
B) The price for a product or service must earn a profit for the company. 
C) For most products and services, their prices are always the same. 
D) The price must be right - in the sense that customers must be willing to pay it. 
E) The price must generate enough sales dollars to pay for the cost of developing, producing, and marketing the product. 
A) Small changes in price can have big effects on both the number of units sold and company profit. 
B) The price for a product or service must earn a profit for the company. 
C) For most products and services, their prices are always the same. 
D) The price must be right - in the sense that customers must be willing to pay it. 
E) The price must generate enough sales dollars to pay for the cost of developing, producing, and marketing the product.

Question 14

Total cost refers to

Accepted Answer

A) the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold. 
B) the change in expenses that results from producing and marketing one additional unit of a product. 
C) the average amount of money received for selling one unit of a product or simply the price of that unit. 
D) the sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold. 
E) the total expense incurred by a firm in producing and marketing a product, which equals the sum of fixed cost and variable cost. 
A) the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold. 
B) the change in expenses that results from producing and marketing one additional unit of a product. 
C) the average amount of money received for selling one unit of a product or simply the price of that unit. 
D) the sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold. 
E) the total expense incurred by a firm in producing and marketing a product, which equals the sum of fixed cost and variable cost.

Question 15

North America's largest Smart TV company is

Accepted Answer

A) Samsung. 
B) Panasonic. 
C) LG. 
D) Sony. 
E) Vizio. 
A) Samsung. 
B) Panasonic. 
C) LG. 
D) Sony. 
E) Vizio.

Question 16

Ampro-Mag is a small company that makes materials for safely controlling hazardous spills of all kinds. It sells these items as a neutralizing kit priced at $100. The costs of the materials that go into each kit are $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising in trade journals, and $3,500 for the monthly salary of its owner. What is Ampro-Mag's monthly break-even point in terms of number of neutralizing kits sold?

Accepted Answer

A) 40 kits 
B) 52 kits 
C) 104 kits 
D) 116 kits 
E) 520 kits 
A) 40 kits 
B) 52 kits 
C) 104 kits 
D) 116 kits 
E) 520 kits

Question 17

Controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price is called

Accepted Answer

A) competitive collusion. 
B) price cooperation. 
C) horizontal price fixing. 
D) lateral price fixing. 
E) vertical price fixing. 
A) competitive collusion. 
B) price cooperation. 
C) horizontal price fixing. 
D) lateral price fixing. 
E) vertical price fixing.

Question 18

The maximum quantity of products consumers will buy at given price is shown by

Accepted Answer

A) a demand curve. 
B) a price constraint. 
C) a break-even point. 
D) a supply curve. 
E) a marginal revenue curve 
A) a demand curve. 
B) a price constraint. 
C) a break-even point. 
D) a supply curve. 
E) a marginal revenue curve

Question 19

-Suppose you are the owner of a picture frame store. Let's assume that the average price customers are willing to pay for each picture frame is $120. Also, suppose your fixed costs (FC) total $32,000 (real estate taxes, interest on a bank loan, etc.) and unit variable cost (UVC) for a picture frame is $40 (labor, glass, frame, and matting). According to Figure 11-6 above, how much profit will your picture frame store make if it sells 400 picture frames?

Accepted Answer

A) $48,000 
B) $32,000 
C) $16,000 
D) $0 
E) ($32,000) 
A) $48,000 
B) $32,000 
C) $16,000 
D) $0 
E) ($32,000)

Question 20

Price refers to

Accepted Answer

A) the value assigned to the exchange of products and services for other products and services. 
B) the value judgment made by both the buyer and seller regarding an item's worth. 
C) the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service. 
D) the value assessed for the benefits of using a product or service. 
E) the highest monetary value a customer is willing to pay for a product or service 
A) the value assigned to the exchange of products and services for other products and services. 
B) the value judgment made by both the buyer and seller regarding an item's worth. 
C) the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service. 
D) the value assessed for the benefits of using a product or service. 
E) the highest monetary value a customer is willing to pay for a product or service

Which of the following statements regarding pricing objectives is most accurate?

Setting a market price for a product or product class based on a subjective feel for the competitors' price or market price as the benchmark is referred to as

Which of the following is a profit-oriented approach to pricing?

The practice of exchanging products and services for other products and services rather than for money is referred to as __________.

According to Vizio, "The whole goal is to ensure that we have the right product, at the right time and the right price and __________."

-In Figure 11-6 above, which is a break-even chart that depicts a graphic presentation of a break-even analysis for a picture frame store, the rectangular area EBCD represents the firm's

Yield management is considered to be a __________ approach to pricing.

A manufacturing company that introduces a product must know or anticipate what specific price its __________ currently charge or may charge in the future.

The practice of charging a very low price for a product with the intent of driving competitors out of business is referred to as

Which of the following statements about the product life cycle as a pricing constraint is most accurate?

Setting a price to achieve an annual target return-on-investment (ROI) is referred to as

For the sake of simplicity and by convention, price elasticity figures are shown as __________.

All of the following statements about price are true EXCEPT:

Total cost refers to

North America's largest Smart TV company is

Controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price is called

The maximum quantity of products consumers will buy at given price is shown by

Price refers to

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Managing Successful Products, Services, and Brands

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multichannel Marketing

Filters

Exam 11: Pricing Products and Services

Which of the following statements regarding pricing objectives is most accurate?

Setting a market price for a product or product class based on a subjective feel for the competitors' price or market price as the benchmark is referred to as

Which of the following is a profit-oriented approach to pricing?

The practice of exchanging products and services for other products and services rather than for money is referred to as __________.

According to Vizio, "The whole goal is to ensure that we have the right product, at the right time and the right price and __________."

-In Figure 11-6 above, which is a break-even chart that depicts a graphic presentation of a break-even analysis for a picture frame store, the rectangular area EBCD represents the firm's

Yield management is considered to be a __________ approach to pricing.

A manufacturing company that introduces a product must know or anticipate what specific price its __________ currently charge or may charge in the future.

The practice of charging a very low price for a product with the intent of driving competitors out of business is referred to as

Which of the following statements about the product life cycle as a pricing constraint is most accurate?

Setting a price to achieve an annual target return-on-investment (ROI) is referred to as

For the sake of simplicity and by convention, price elasticity figures are shown as __________.

All of the following statements about price are true EXCEPT:

Total cost refers to

North America's largest Smart TV company is

Controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price is called

The maximum quantity of products consumers will buy at given price is shown by

Price refers to

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Managing Successful Products, Services, and Brands

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multichannel Marketing

Filters