Question 1

Variable 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 sum of the expenses of the firm that change with the quantity of a product that is produced and sold. 
C) the total expense incurred by a firm in producing and marketing a product, which equals the sum of fixed cost and marginal cost. 
D) the average amount of money received for selling one unit of a product or simply the price of that unit. 
E) the change in total cost that results from producing and marketing one additional unit of a product. 
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 sum of the expenses of the firm that change with the quantity of a product that is produced and sold. 
C) the total expense incurred by a firm in producing and marketing a product, which equals the sum of fixed cost and marginal cost. 
D) the average amount of money received for selling one unit of a product or simply the price of that unit. 
E) the change in total cost that results from producing and marketing one additional unit of a product.

Question 2

$$\begin{array} { | l c c c c | } 
\hline \text { Brand } & { \text { Dollar Sales Market Share } } &&{ \text { Unit Volume Market Share } } \
\hline \text { Red Bull } & \mathbf { 2 0 1 0 } & \mathbf { 2 0 0 9 } & \mathbf { 2 0 1 0 } & \mathbf { 2 0 0 9 } \
\hline \text { Monster } & 18 & 37 \% & 33 \% & 33 \% \
\hline \text { Rockstar } & 7 & 17 & 19 & 18 \
\hline \begin{array} { l } 
\text { Other } \
\text { Brands }
\end{array} & \frac { 37 } { 100 \% } & \frac { 38 } { 100 \% } & \frac { 40 } { 100 \% } & \frac { 40 } { 100 \% } \
\hline
\end{array}$$
-The Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks. What is the price premium for Monster in 2009?

Accepted Answer

A) 12.1% 
B) 0% 
C) -5.0% 
D) -5.6% 
E) -11.1% 
A) 12.1% 
B) 0% 
C) -5.0% 
D) -5.6% 
E) -11.1%

Question 3

There are factors other than price that affect demand. What are they and how do they work?

Accepted Answer

Price is not the complete story in estim

Question 4

The practice of replacing promotional allowances with lower manufacturer list prices is referred to as

Accepted Answer

A) everyday low pricing. 
B) uniform fair pricing. 
C) trade-in allowances. 
D) markdown pricing. 
E) continuous value pricing. 
A) everyday low pricing. 
B) uniform fair pricing. 
C) trade-in allowances. 
D) markdown pricing. 
E) continuous value pricing.

Question 5

When you buy a used car from a CarMax dealership, you are offered the car at a single, no-haggle price. You can buy it or not, but there is no negotiating the published price because of the seller's

Accepted Answer

A) customary pricing strategy. 
B) one-price policy. 
C) uniform pricing policy. 
D) dynamic pricing policy. 
E) habitual pricing strategy. 
A) customary pricing strategy. 
B) one-price policy. 
C) uniform pricing policy. 
D) dynamic pricing policy. 
E) habitual pricing strategy.

Question 6

Susan O'Rourke hired an attorney to represent her in a court case involving an auto accident. The attorney charged O'Rourke a $2,000 retainer fee for his services. Terry Thomas needed a haircut - the local stylist charged him $12 for her services. Aaron Mathison mowed his neighbor's lawn; in exchange, the neighbor roto-tilled Mathison's garden. The attorney fees paid by O'Rourke, the $12 charged by the hair stylist, and the exchange of lawn mowing for garden tilling are all examples of

Accepted Answer

A) premiums. 
B) barter. 
C) the profit motive. 
D) price. 
E) outlays. 
A) premiums. 
B) barter. 
C) the profit motive. 
D) price. 
E) outlays.

Question 7

Predatory pricing is

Accepted Answer

A) most effective in the growth stage of the product life cycle. 
B) a popular technique preferred by online businesses. 
C) illegal but often difficult to prosecute. 
D) most effective in business-to-business marketing. 
E) one of the most widely used pricing practices for professional marketers. 
A) most effective in the growth stage of the product life cycle. 
B) a popular technique preferred by online businesses. 
C) illegal but often difficult to prosecute. 
D) most effective in business-to-business marketing. 
E) one of the most widely used pricing practices for professional marketers.

Question 8

Four pricing practices are closely scrutinized because of potential unethical or illegal actions. They include: (1) price fixing; (2) predatory pricing; (3) deceptive pricing; and (4) __________.

Accepted Answer

A) price discounting 
B) lateral price fixing 
C) regional rollbacks 
D) delayed payment penalties 
E) price discrimination 
A) price discounting 
B) lateral price fixing 
C) regional rollbacks 
D) delayed payment penalties 
E) price discrimination

Question 9

Airlines, hotels, and car rental firms all engage in __________ by varying prices based on time, day, week, or season to match supply and demand.

Accepted Answer

A) skimming pricing 
B) yield management pricing 
C) bundle pricing 
D) target pricing 
E) prestige pricing 
A) skimming pricing 
B) yield management pricing 
C) bundle pricing 
D) target pricing 
E) prestige pricing

Question 10

Wrigley recently introduced a new flavor of Orbit brand sugar free chewing gum - mint mojito. The introductory price was low so that it quickly created loyal customers for the flavor. In this example, Wrigley used

Accepted Answer

A) skimming pricing. 
B) penetration pricing. 
C) price lining. 
D) odd-even pricing. 
E) loss-leader pricing. 
A) skimming pricing. 
B) penetration pricing. 
C) price lining. 
D) odd-even pricing. 
E) loss-leader pricing.

Question 11

Which of these statements about consumer demand as a pricing constraint is most accurate?

Accepted Answer

A) The number of potential buyers for the product class has little effect on the price a seller can charge. 
B) The number of potential buyers for the product affects the price a seller can charge, but only if the product is a luxury item. 
C) The number of potential buyers for the product affects the price a seller can charge, but only if the product is a necessity item. 
D) The number of potential buyers for the brand affects the price a seller can charge in the growth stage of a product life cycle, but not in the introductory stage. 
E) The number of potential buyers generally affects the price a seller can charge 
A) The number of potential buyers for the product class has little effect on the price a seller can charge. 
B) The number of potential buyers for the product affects the price a seller can charge, but only if the product is a luxury item. 
C) The number of potential buyers for the product affects the price a seller can charge, but only if the product is a necessity item. 
D) The number of potential buyers for the brand affects the price a seller can charge in the growth stage of a product life cycle, but not in the introductory stage. 
E) The number of potential buyers generally affects the price a seller can charge

Question 12

Factors that determine consumers' willingness and ability to pay for products and services are referred to as

Accepted Answer

A) supply factors. 
B) demand factors. 
C) affordability factors. 
D) elasticity factors. 
E) macro environmental factors. 
A) supply factors. 
B) demand factors. 
C) affordability factors. 
D) elasticity factors. 
E) macro environmental factors.

Question 13

A demand curve refers to a graph that relates

Accepted Answer

A) the quantity sold and price, which shows the maximum number of units that will be sold at a given price. 
B) the quantity sold and price, which shows the minimum number of units that must be sold to break even. 
C) the quantity sold and price, which shows the minimum number of units that must be sold in order to make a profit. 
D) total production costs to various price points in order to determine how many units must be sold in order to realize a predetermined profit. 
E) primary demand to selective demand. 
A) the quantity sold and price, which shows the maximum number of units that will be sold at a given price. 
B) the quantity sold and price, which shows the minimum number of units that must be sold to break even. 
C) the quantity sold and price, which shows the minimum number of units that must be sold in order to make a profit. 
D) total production costs to various price points in order to determine how many units must be sold in order to realize a predetermined profit. 
E) primary demand to selective demand.

Question 14

Adding a fixed percentage to the cost of all items in a specific product class is referred to as

Accepted Answer

A) target profit pricing. 
B) standard markup pricing. 
C) target return-on-investment pricing. 
D) customary pricing. 
E) everyday low pricing. 
A) target profit pricing. 
B) standard markup pricing. 
C) target return-on-investment pricing. 
D) customary pricing. 
E) everyday low pricing.

Question 15

A reference value __________.

Accepted Answer

A) is relative to the amount of time and energy a consumer puts into the purchase process 
B) is based upon the value assigned to similar items used by the consumer's peers 
C) results from performing a careful break-even analysis 
D) involves comparing the costs and benefits of substitute items 
E) is based upon the differential between customers' needs and wants 
A) is relative to the amount of time and energy a consumer puts into the purchase process 
B) is based upon the value assigned to similar items used by the consumer's peers 
C) results from performing a careful break-even analysis 
D) involves comparing the costs and benefits of substitute items 
E) is based upon the differential between customers' needs and wants

Question 16

A single jar of original formula Carmex has different prices for the product depending upon where it is sold, but each price will end in a 9 ($0.99 at mass merchandisers like Walmart or Target; between $1.59 and $1.79 in drug and food retailers). This pricing strategy is called __________.

Accepted Answer

A) standard pricing 
B) odd-even pricing 
C) customary pricing 
D) everyday lower pricing 
E) at-market pricing 
A) standard pricing 
B) odd-even pricing 
C) customary pricing 
D) everyday lower pricing 
E) at-market pricing

Question 17

Odd-even pricing refers to

Accepted Answer

A) setting prices one way for product lines and another way for individual brands. 
B) setting prices of luxury items at even price points and setting the price of necessities at odd price points. 
C) setting prices a few dollars or cents under an odd number. 
D) adding a fixed percentage to the cost of all items in a specific product class. 
E) setting prices a few dollars or cents under an even number. 
A) setting prices one way for product lines and another way for individual brands. 
B) setting prices of luxury items at even price points and setting the price of necessities at odd price points. 
C) setting prices a few dollars or cents under an odd number. 
D) adding a fixed percentage to the cost of all items in a specific product class. 
E) setting prices a few dollars or cents under an even number.

Question 18

Individuals can choose to purchase Microsoft stand-alone software packages, such as the Microsoft Office 2013 Home and Student versions of Word, Excel, and PowerPoint for $109.99 each. Alternately, they may choose to purchase the Microsoft Office 2013 Home and Student Suite, which has these three applications plus OneNote in the same package for a price of $139.99. Microsoft is using a __________ pricing strategy.

Accepted Answer

A) penetration 
B) prestige 
C) bundle 
D) odd-even 
E) standard mark-up 
A) penetration 
B) prestige 
C) bundle 
D) odd-even 
E) standard mark-up

Question 19

The use of special fees and surcharges is driven by consumers' zeal for low prices and __________.

Accepted Answer

A) the ease of making price comparisons on the Internet 
B) value, the idea of getting "more" for their money 
C) the need for extra accessories 
D) avoiding state sales taxes from Internet purchases 
E) a dislike of price haggling or negotiating 
A) the ease of making price comparisons on the Internet 
B) value, the idea of getting "more" for their money 
C) the need for extra accessories 
D) avoiding state sales taxes from Internet purchases 
E) a dislike of price haggling or negotiating

Question 20

Reductions in unit costs for a larger order are referred to as

Accepted Answer

A) promotional allowances. 
B) economic order discounts. 
C) penetration pricing. 
D) quantity discounts. 
E) case allowances. 
A) promotional allowances. 
B) economic order discounts. 
C) penetration pricing. 
D) quantity discounts. 
E) case allowances.

Variable cost refers to

Brand Dollar Sales Market Share Unit Volume Market Share Red Bull Monster 18 37\% 33\% 33\% Rockstar 7 17 19 18 Other Brands -The Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks. What is the price premium for Monster in 2009?

There are factors other than price that affect demand. What are they and how do they work?

The practice of replacing promotional allowances with lower manufacturer list prices is referred to as

When you buy a used car from a CarMax dealership, you are offered the car at a single, no-haggle price. You can buy it or not, but there is no negotiating the published price because of the seller's

Predatory pricing is

Four pricing practices are closely scrutinized because of potential unethical or illegal actions. They include: (1) price fixing; (2) predatory pricing; (3) deceptive pricing; and (4) __________.

Airlines, hotels, and car rental firms all engage in __________ by varying prices based on time, day, week, or season to match supply and demand.

Wrigley recently introduced a new flavor of Orbit brand sugar free chewing gum - mint mojito. The introductory price was low so that it quickly created loyal customers for the flavor. In this example, Wrigley used

Which of these statements about consumer demand as a pricing constraint is most accurate?

Factors that determine consumers' willingness and ability to pay for products and services are referred to as

A demand curve refers to a graph that relates

Adding a fixed percentage to the cost of all items in a specific product class is referred to as

A reference value __________.

A single jar of original formula Carmex has different prices for the product depending upon where it is sold, but each price will end in a 9 ($0.99 at mass merchandisers like Walmart or Target; between $1.59 and $1.79 in drug and food retailers). This pricing strategy is called __________.

Odd-even pricing refers to

The use of special fees and surcharges is driven by consumers' zeal for low prices and __________.

Reductions in unit costs for a larger order are referred to as

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

Variable cost refers to

Brand Dollar Sales Market Share Unit Volume Market Share Red Bull Monster 18 37\% 33\% 33\% Rockstar 7 17 19 18 Other Brands -The Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks. What is the price premium for Monster in 2009?

There are factors other than price that affect demand. What are they and how do they work?

The practice of replacing promotional allowances with lower manufacturer list prices is referred to as

When you buy a used car from a CarMax dealership, you are offered the car at a single, no-haggle price. You can buy it or not, but there is no negotiating the published price because of the seller's

Predatory pricing is

Four pricing practices are closely scrutinized because of potential unethical or illegal actions. They include: (1) price fixing; (2) predatory pricing; (3) deceptive pricing; and (4) __________.

Airlines, hotels, and car rental firms all engage in __________ by varying prices based on time, day, week, or season to match supply and demand.

Wrigley recently introduced a new flavor of Orbit brand sugar free chewing gum - mint mojito. The introductory price was low so that it quickly created loyal customers for the flavor. In this example, Wrigley used

Which of these statements about consumer demand as a pricing constraint is most accurate?

Factors that determine consumers' willingness and ability to pay for products and services are referred to as

A demand curve refers to a graph that relates

Adding a fixed percentage to the cost of all items in a specific product class is referred to as

A reference value __________.

A single jar of original formula Carmex has different prices for the product depending upon where it is sold, but each price will end in a 9 ($0.99 at mass merchandisers like Walmart or Target; between $1.59 and $1.79 in drug and food retailers). This pricing strategy is called __________.

Odd-even pricing refers to

The use of special fees and surcharges is driven by consumers' zeal for low prices and __________.

Reductions in unit costs for a larger order are referred to as

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