Question 1

Bundle pricing is considered to be a __________ pricing practice.

Accepted Answer

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

Question 2

What is the difference between a one-price policy and a flexible-price policy?

Accepted Answer

A one-price policy, also called fixed pr

Question 3

Some specialty-toy retailers pursue a __________ pricing objective to generate cash to ward off bankruptcy.

Accepted Answer

A) market share 
B) survival 
C) sales revenue 
D) single product line 
E) profit 
A) market share 
B) survival 
C) sales revenue 
D) single product line 
E) profit

Question 4

The newer a product and the earlier it is in its life cycle,

Accepted Answer

A) the lower the price the firm must charge. 
B) the more competition it has. 
C) the higher is the price that can usually be charged. 
D) the lower its production costs are. 
E) the lower its unit variable cost is. 
A) the lower the price the firm must charge. 
B) the more competition it has. 
C) the higher is the price that can usually be charged. 
D) the lower its production costs are. 
E) the lower its unit variable cost is.

Question 5

Predatory pricing refers to

Accepted Answer

A) the practice of charging a very low price for a product with the intent of driving competitors out of business. 
B) a conspiracy among firms to set prices for a product. 
C) using price differentials when charging different prices on the basis of race, religion, or ethnic affiliation. 
D) using price differentials when charging the original price for refurbished goods that have been damaged or used and returned but repaired according to company specifications. 
E) controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price 
A) the practice of charging a very low price for a product with the intent of driving competitors out of business. 
B) a conspiracy among firms to set prices for a product. 
C) using price differentials when charging different prices on the basis of race, religion, or ethnic affiliation. 
D) using price differentials when charging the original price for refurbished goods that have been damaged or used and returned but repaired according to company specifications. 
E) controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price

Question 6

Companies use a __________ to assess whether its products and brands are above, at, or below the market.

Accepted Answer

A) customary price 
B) prestige price 
C) price premium 
D) price lining 
E) benchmark 
A) customary price 
B) prestige price 
C) price premium 
D) price lining 
E) benchmark

Question 7

Break-even analysis refers to

Accepted Answer

A) a process that investigates the difference between marginal revenue and marginal cost. 
B) a method of determining just how much a consumer is willing to pay for a product or service. 
C) a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output. 
D) the process of determining the quantity of product consumers will buy relative to the quantity produced by the firm. 
E) the graph that shows the maximum number of products consumers will buy at a given price 
A) a process that investigates the difference between marginal revenue and marginal cost. 
B) a method of determining just how much a consumer is willing to pay for a product or service. 
C) a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output. 
D) the process of determining the quantity of product consumers will buy relative to the quantity produced by the firm. 
E) the graph that shows the maximum number of products consumers will buy at a given price

Question 8

Allowances, like discounts, refer to

Accepted Answer

A) rewards given to retailers to encourage early payment. 
B) payment extensions given to cash-strapped consumers during the current recession. 
C) list price deductions based on surges in consumer demand. 
D) list price deductions based on sudden drops in consumer demand. 
E) reductions from list or quoted prices to buyers for performing some activity. 
A) rewards given to retailers to encourage early payment. 
B) payment extensions given to cash-strapped consumers during the current recession. 
C) list price deductions based on surges in consumer demand. 
D) list price deductions based on sudden drops in consumer demand. 
E) reductions from list or quoted prices to buyers for performing some activity.

Question 9

Market share is the ratio of the __________ to those of the industry, including the firm itself.

Accepted Answer

A) target return on sales 
B) marginal profit of the firm 
C) firm's sales revenues or unit sales 
D) marketing expenses of the firm 
E) profits of the firm 
A) target return on sales 
B) marginal profit of the firm 
C) firm's sales revenues or unit sales 
D) marketing expenses of the firm 
E) profits of the firm

Question 10

Which of the following statements regarding a market share pricing objective is most accurate?

Accepted Answer

A) A market share objective is often difficult for product managers since stockholders are looking for immediate dividends (return of profits). 
B) Although increased market share is a primary goal of some firms, others see it as a means to other ends, such as increased sales or profits. 
C) Selecting market share as a pricing objective is particularly effective if industry sales are rising. 
D) An advantage of market share as a pricing objective is that it is particularly insensitive to competitors' actions. 
E) Ironically, a market share objective is realized by raising prices in order to increase consumer confidence during the decline stage of a product's life cycle 
A) A market share objective is often difficult for product managers since stockholders are looking for immediate dividends (return of profits). 
B) Although increased market share is a primary goal of some firms, others see it as a means to other ends, such as increased sales or profits. 
C) Selecting market share as a pricing objective is particularly effective if industry sales are rising. 
D) An advantage of market share as a pricing objective is that it is particularly insensitive to competitors' actions. 
E) Ironically, a market share objective is realized by raising prices in order to increase consumer confidence during the decline stage of a product's life cycle

Question 11

Family Dollar Stores, Dollar Value Stores, and 99′ Only Stores sell everything in their stores for $2 or less, using what type of pricing policy?

Accepted Answer

A) dynamic pricing 
B) customary pricing 
C) flexible pricing 
D) one-price 
E) at-market pricing 
A) dynamic pricing 
B) customary pricing 
C) flexible pricing 
D) one-price 
E) at-market pricing

Question 12

The purpose of a cash discount is to

Accepted Answer

A) reward retailers for making large quantity purchases. 
B) encourage purchasing items during periods of low demand. 
C) prevent competitors from obtaining shelf space. 
D) counteract the introduction of a new product by a competitor. 
E) encourage retailers to pay their bills promptly. 
A) reward retailers for making large quantity purchases. 
B) encourage purchasing items during periods of low demand. 
C) prevent competitors from obtaining shelf space. 
D) counteract the introduction of a new product by a competitor. 
E) encourage retailers to pay their bills promptly.

Question 13

When Hallmark cards introduced a line of 99-cent cards (about half the price of the previously least expensive cards it sold), the greeting card company was trying to appeal to a mass market that was price sensitive. Hallmark was using a __________ pricing strategy.

Accepted Answer

A) prestige 
B) skimming 
C) target ROI 
D) penetration 
E) experience-curve 
A) prestige 
B) skimming 
C) target ROI 
D) penetration 
E) experience-curve

Question 14

For most products, it is difficult to identify a specific market price for a product or product class. Still, marketing managers often have a subjective feel for the competitors' price or market price. Using this benchmark, they then may deliberately choose a strategy of

Accepted Answer

A) above-, at-, or below-market pricing. 
B) loss-leader pricing. 
C) penetration pricing. 
D) standard markup pricing. 
E) experience curve pricing. 
A) above-, at-, or below-market pricing. 
B) loss-leader pricing. 
C) penetration pricing. 
D) standard markup pricing. 
E) experience curve pricing.

Question 15

Assuming there is no change in a product's price or the quantity demanded, if a business owner wants to increase her advertising expenses to a by $500 monthly, this would cause total costs to __________ and the break-even quantity to __________.

Accepted Answer

A) decrease; stay the same 
B) increase; increase 
C) decrease; increase 
D) stay the same; increase 
E) increase; decrease 
A) decrease; stay the same 
B) increase; increase 
C) decrease; increase 
D) stay the same; increase 
E) increase; decrease

Question 16

-Jane Westerlund owns a picture frame store and has generated a spreadsheet of several calculations based on different quantity, price, revenue, cost, and profit scenarios shown in Figure 11-5 above. Of the following options, at what sales level is profit maximized?

Accepted Answer

A) 0 
B) 400 
C) 800 
D) 1,600 
E) 2,000 
A) 0 
B) 400 
C) 800 
D) 1,600 
E) 2,000

Question 17

Unit variable cost refers to variable cost expressed

Accepted Answer

A) as the sum of all units sold. 
B) on a per unit basis for a product. 
C) as a percentage of total sales. 
D) as a percentage of fixed costs. 
E) as a percentage of total costs. 
A) as the sum of all units sold. 
B) on a per unit basis for a product. 
C) as a percentage of total sales. 
D) as a percentage of fixed costs. 
E) as a percentage of total costs.

Question 18

The break-even point (BEP) = [__________ ÷ (Unit price - Unit variable cost)].

Accepted Answer

A) Total cost 
B) Total expense 
C) Fixed cost 
D) Unit variable cost 
E) Total number of units produced or quantity 
A) Total cost 
B) Total expense 
C) Fixed cost 
D) Unit variable cost 
E) Total number of units produced or quantity

Question 19

Deceptive pricing practices are outlawed by legislation and enforced by which federal agency?

Accepted Answer

A) Consumer Protection Agency 
B) U.S. Department of Justice 
C) Federal Communications Commission 
D) U.S. Department of Commerce 
E) Federal Trade Commission 
A) Consumer Protection Agency 
B) U.S. Department of Justice 
C) Federal Communications Commission 
D) U.S. Department of Commerce 
E) Federal Trade Commission

Question 20

According to the price equation, a product's or service's final price equals its list price minus incentives and allowances plus

Accepted Answer

A) profits. 
B) commissions. 
C) trade-ins. 
D) extra fees. 
E) taxes. 
A) profits. 
B) commissions. 
C) trade-ins. 
D) extra fees. 
E) taxes.

Bundle pricing is considered to be a __________ pricing practice.

What is the difference between a one-price policy and a flexible-price policy?

Some specialty-toy retailers pursue a __________ pricing objective to generate cash to ward off bankruptcy.

The newer a product and the earlier it is in its life cycle,

Predatory pricing refers to

Companies use a __________ to assess whether its products and brands are above, at, or below the market.

Break-even analysis refers to

Allowances, like discounts, refer to

Market share is the ratio of the __________ to those of the industry, including the firm itself.

Which of the following statements regarding a market share pricing objective is most accurate?

Family Dollar Stores, Dollar Value Stores, and 99′ Only Stores sell everything in their stores for $2 or less, using what type of pricing policy?

The purpose of a cash discount is to

When Hallmark cards introduced a line of 99-cent cards (about half the price of the previously least expensive cards it sold), the greeting card company was trying to appeal to a mass market that was price sensitive. Hallmark was using a __________ pricing strategy.

For most products, it is difficult to identify a specific market price for a product or product class. Still, marketing managers often have a subjective feel for the competitors' price or market price. Using this benchmark, they then may deliberately choose a strategy of

Assuming there is no change in a product's price or the quantity demanded, if a business owner wants to increase her advertising expenses to a by $500 monthly, this would cause total costs to and the break-even quantity to .

-Jane Westerlund owns a picture frame store and has generated a spreadsheet of several calculations based on different quantity, price, revenue, cost, and profit scenarios shown in Figure 11-5 above. Of the following options, at what sales level is profit maximized?

Unit variable cost refers to variable cost expressed

The break-even point (BEP) = [__________ ÷ (Unit price - Unit variable cost)].

Deceptive pricing practices are outlawed by legislation and enforced by which federal agency?

According to the price equation, a product's or service's final price equals its list price minus incentives and allowances plus

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

Bundle pricing is considered to be a __________ pricing practice.

What is the difference between a one-price policy and a flexible-price policy?

Some specialty-toy retailers pursue a __________ pricing objective to generate cash to ward off bankruptcy.

The newer a product and the earlier it is in its life cycle,

Predatory pricing refers to

Companies use a __________ to assess whether its products and brands are above, at, or below the market.

Break-even analysis refers to

Allowances, like discounts, refer to

Market share is the ratio of the __________ to those of the industry, including the firm itself.

Which of the following statements regarding a market share pricing objective is most accurate?

Family Dollar Stores, Dollar Value Stores, and 99′ Only Stores sell everything in their stores for $2 or less, using what type of pricing policy?

The purpose of a cash discount is to

When Hallmark cards introduced a line of 99-cent cards (about half the price of the previously least expensive cards it sold), the greeting card company was trying to appeal to a mass market that was price sensitive. Hallmark was using a __________ pricing strategy.

For most products, it is difficult to identify a specific market price for a product or product class. Still, marketing managers often have a subjective feel for the competitors' price or market price. Using this benchmark, they then may deliberately choose a strategy of

Assuming there is no change in a product's price or the quantity demanded, if a business owner wants to increase her advertising expenses to a by $500 monthly, this would cause total costs to __________ and the break-even quantity to __________.

-Jane Westerlund owns a picture frame store and has generated a spreadsheet of several calculations based on different quantity, price, revenue, cost, and profit scenarios shown in Figure 11-5 above. Of the following options, at what sales level is profit maximized?

Unit variable cost refers to variable cost expressed

The break-even point (BEP) = [__________ ÷ (Unit price - Unit variable cost)].

Deceptive pricing practices are outlawed by legislation and enforced by which federal agency?

According to the price equation, a product's or service's final price equals its list price minus incentives and allowances plus

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

Assuming there is no change in a product's price or the quantity demanded, if a business owner wants to increase her advertising expenses to a by $500 monthly, this would cause total costs to and the break-even quantity to .