Question 1

Attorneys' fees, entrance fees, train fares, and organization dues are all examples of

Accepted Answer

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

Question 2

To be successful, odd-even pricing depends on

Accepted Answer

A) a retailers' ranges of prices. 
B) the wholesalers' markups. 
C) a manufacturer's costs. 
D) competitors' price assumptions. 
E) customers' perceptions of price 
A) a retailers' ranges of prices. 
B) the wholesalers' markups. 
C) a manufacturer's costs. 
D) competitors' price assumptions. 
E) customers' perceptions of price

Question 3

Three different objectives relate to a firm's profit, which is often measured in terms of return on investment. One objective, known as _________, is common in many firms because the targets can be set and performance measured quickly.

Accepted Answer

A) managing for long-run profits 
B) target return 
C) breakeven strategy 
D) maximizing current profit 
E) minimizing risk 
A) managing for long-run profits 
B) target return 
C) breakeven strategy 
D) maximizing current profit 
E) minimizing risk

Question 4

Price elasticity of demand measures how sensitive consumer demand and the firm's revenues are to changes in the product's price. Explain the difference between a product with elastic demand and a product with inelastic demand.

Accepted Answer

Elastic demand exists when a small perce

Question 5

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

Accepted Answer

A) Generally, the greater the demand for a product, the higher the price that can be set. 
B) At the corporate level, when setting pricing constraints, a firm must disregard current conditions in the marketplace because they are too temporal for long-term planning. 
C) Pricing constraints must always be set, but they are rarely enforced. 
D) It is possible to create pricing constraints with the greatest range possible in order to anticipate any and all changes in the marketing environment. 
E) Even if a firm is trying to satisfy its obligations to its customers and society in general, it should ignore setting pricing constraints. 
A) Generally, the greater the demand for a product, the higher the price that can be set. 
B) At the corporate level, when setting pricing constraints, a firm must disregard current conditions in the marketplace because they are too temporal for long-term planning. 
C) Pricing constraints must always be set, but they are rarely enforced. 
D) It is possible to create pricing constraints with the greatest range possible in order to anticipate any and all changes in the marketing environment. 
E) Even if a firm is trying to satisfy its obligations to its customers and society in general, it should ignore setting pricing constraints.

Question 6

Estimating a break-even point would occur during which stage of the price-setting process?

Accepted Answer

A) Defining the scope of the product 
B) Selecting an approximate price level 
C) Setting the list or quoted price 
D) Evaluating the success of the price strategy 
E) Making special adjustments to the list price 
A) Defining the scope of the product 
B) Selecting an approximate price level 
C) Setting the list or quoted price 
D) Evaluating the success of the price strategy 
E) Making special adjustments to the list price

Question 7

Three different objectives relate to a firm's profit, which is often measured in terms of return on investment. One objective, known as _________, occurs when a firm sets a profit goal, usually determined by its board of directors.

Accepted Answer

A) maximizing current profit 
B) managing for long-run profits 
C) target return 
D) breakeven strategy 
E) minimizing risk 
A) maximizing current profit 
B) managing for long-run profits 
C) target return 
D) breakeven strategy 
E) minimizing risk

Question 8

Given that a firm's profit is high enough for it to remain in business, an objective may be to __________, which will in turn lead to increases in market share and profit.

Accepted Answer

A) increase the commitment to social responsibility 
B) increase dollar sales revenue 
C) decrease unit volume while maintaining price 
D) increase research and development funding for new product line extensions 
E) continue with previous policies that seem to be working 
A) increase the commitment to social responsibility 
B) increase dollar sales revenue 
C) decrease unit volume while maintaining price 
D) increase research and development funding for new product line extensions 
E) continue with previous policies that seem to be working

Question 9

Price deals that mislead consumers fall into the category of

Accepted Answer

A) predatory pricing. 
B) deceptive pricing. 
C) price discrimination. 
D) caveat emptor. 
E) resale price maintenance 
A) predatory pricing. 
B) deceptive pricing. 
C) price discrimination. 
D) caveat emptor. 
E) resale price maintenance

Question 10

Everyday low pricing refers to

Accepted Answer

A) the pricing strategy of extreme value stores to maintain high price-quality images for the products they sell. 
B) the pricing strategy of starting a product at standard list price and then lowering the price by a certain percentage until it is sold. 
C) short-term price reductions when consumer demand takes a significant and unexpected dip. 
D) the practice of replacing promotional allowances with lower manufacturer list prices. 
E) a form of predatory pricing used solely for the purpose of undercutting competitors' prices. 
A) the pricing strategy of extreme value stores to maintain high price-quality images for the products they sell. 
B) the pricing strategy of starting a product at standard list price and then lowering the price by a certain percentage until it is sold. 
C) short-term price reductions when consumer demand takes a significant and unexpected dip. 
D) the practice of replacing promotional allowances with lower manufacturer list prices. 
E) a form of predatory pricing used solely for the purpose of undercutting competitors' prices.

Question 11

What is loss-leader pricing and why do retailers use it?

Accepted Answer

For a special promotion, many retail sto

Question 12

Setting a price to achieve a profit that is a specified percentage of the sales volume is referred to as __________.

Accepted Answer

A) target return-on-investment pricing 
B) target return-on-sales pricing 
C) loss-leader pricing 
D) target pricing 
E) standard markup pricing 
A) target return-on-investment pricing 
B) target return-on-sales pricing 
C) loss-leader pricing 
D) target pricing 
E) standard markup pricing

Question 13

Target pricing is considered to be a __________ approach to pricing.

Accepted Answer

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

Question 14

When Kroger, a national supermarket chain, uses a special promotion to price a six-pack of soda at $2.09 (which is below its customary price level of $4.29), it is attempting to

Accepted Answer

A) drive its competition out of business. 
B) attract customers in hopes they will buy other products as well. 
C) fill its parking lot so its store will look successful. 
D) work with the local bottler to move products that are close to their expiration dates. 
E) help stimulate the local economy and generate good will with its customers. 
A) drive its competition out of business. 
B) attract customers in hopes they will buy other products as well. 
C) fill its parking lot so its store will look successful. 
D) work with the local bottler to move products that are close to their expiration dates. 
E) help stimulate the local economy and generate good will with its customers.

Question 15

Which of the following is a typical example of a variable cost?

Accepted Answer

A) shipping costs 
B) rent on a building 
C) executive salaries 
D) insurance premiums 
E) leases on delivery trucks 
A) shipping costs 
B) rent on a building 
C) executive salaries 
D) insurance premiums 
E) leases on delivery trucks

Question 16

Forever Quilting is a small company that makes quilting kits priced at $120 each. There is no quantity discount. The costs of the materials that go into each kit total $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, and $4,500 for the monthly salary of its owner. Last month the company sold 150 kits. Forever Quilting's total revenue for the month was

Accepted Answer

A) $4,300. 
B) $6,200. 
C) $7,500. 
D) $10,500. 
E) $18,000. 
A) $4,300. 
B) $6,200. 
C) $7,500. 
D) $10,500. 
E) $18,000.

Question 17

Penetration pricing refers to

Accepted Answer

A) charging different prices to different buyers for goods of like grade and quality. 
B) setting the highest initial price that customers really desiring the product are willing to pay. 
C) setting a low initial price on a new product to appeal immediately to the mass market. 
D) setting a market price for a product or product class based on a subjective feel for the competitors' prices or market price. 
E) setting prices a few dollars or cents under an even number. 
A) charging different prices to different buyers for goods of like grade and quality. 
B) setting the highest initial price that customers really desiring the product are willing to pay. 
C) setting a low initial price on a new product to appeal immediately to the mass market. 
D) setting a market price for a product or product class based on a subjective feel for the competitors' prices or market price. 
E) setting prices a few dollars or cents under an even number.

Question 18

Yield management pricing is a form of

Accepted Answer

A) target pricing. 
B) loss-leader pricing. 
C) flexible pricing. 
D) customary pricing. 
E) price lining. 
A) target pricing. 
B) loss-leader pricing. 
C) flexible pricing. 
D) customary pricing. 
E) price lining.

Question 19

Marketing two or more products in a single package price is referred to as

Accepted Answer

A) package pricing. 
B) loss-leader pricing. 
C) bundle pricing. 
D) tie-in pricing. 
E) multi-product pricing. 
A) package pricing. 
B) loss-leader pricing. 
C) bundle pricing. 
D) tie-in pricing. 
E) multi-product pricing.

Question 20

Target return-on-investment pricing refers to

Accepted Answer

A) setting a price that allows the firm to invest in research and development for next year. 
B) adding a fixed percentage to the cost of all items in a specific product class. 
C) setting prices to achieve a profit that is a specified percentage of the sales volume. 
D) setting a price to achieve an annual target ROI. 
E) setting a price based on an annual specific dollar target volume of profit. 
A) setting a price that allows the firm to invest in research and development for next year. 
B) adding a fixed percentage to the cost of all items in a specific product class. 
C) setting prices to achieve a profit that is a specified percentage of the sales volume. 
D) setting a price to achieve an annual target ROI. 
E) setting a price based on an annual specific dollar target volume of profit.

Attorneys' fees, entrance fees, train fares, and organization dues are all examples of

To be successful, odd-even pricing depends on

Three different objectives relate to a firm's profit, which is often measured in terms of return on investment. One objective, known as _________, is common in many firms because the targets can be set and performance measured quickly.

Price elasticity of demand measures how sensitive consumer demand and the firm's revenues are to changes in the product's price. Explain the difference between a product with elastic demand and a product with inelastic demand.

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

Estimating a break-even point would occur during which stage of the price-setting process?

Three different objectives relate to a firm's profit, which is often measured in terms of return on investment. One objective, known as _________, occurs when a firm sets a profit goal, usually determined by its board of directors.

Given that a firm's profit is high enough for it to remain in business, an objective may be to __________, which will in turn lead to increases in market share and profit.

Price deals that mislead consumers fall into the category of

Everyday low pricing refers to

What is loss-leader pricing and why do retailers use it?

Setting a price to achieve a profit that is a specified percentage of the sales volume is referred to as __________.

Target pricing is considered to be a __________ approach to pricing.

When Kroger, a national supermarket chain, uses a special promotion to price a six-pack of soda at $2.09 (which is below its customary price level of $4.29), it is attempting to

Which of the following is a typical example of a variable cost?

Penetration pricing refers to

Yield management pricing is a form of

Marketing two or more products in a single package price is referred to as

Target return-on-investment pricing 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

Attorneys' fees, entrance fees, train fares, and organization dues are all examples of

To be successful, odd-even pricing depends on

Three different objectives relate to a firm's profit, which is often measured in terms of return on investment. One objective, known as _________, is common in many firms because the targets can be set and performance measured quickly.

Price elasticity of demand measures how sensitive consumer demand and the firm's revenues are to changes in the product's price. Explain the difference between a product with elastic demand and a product with inelastic demand.

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

Estimating a break-even point would occur during which stage of the price-setting process?

Three different objectives relate to a firm's profit, which is often measured in terms of return on investment. One objective, known as _________, occurs when a firm sets a profit goal, usually determined by its board of directors.

Given that a firm's profit is high enough for it to remain in business, an objective may be to __________, which will in turn lead to increases in market share and profit.

Price deals that mislead consumers fall into the category of

Everyday low pricing refers to

What is loss-leader pricing and why do retailers use it?

Setting a price to achieve a profit that is a specified percentage of the sales volume is referred to as __________.

Target pricing is considered to be a __________ approach to pricing.

When Kroger, a national supermarket chain, uses a special promotion to price a six-pack of soda at $2.09 (which is below its customary price level of $4.29), it is attempting to

Which of the following is a typical example of a variable cost?

Penetration pricing refers to

Yield management pricing is a form of

Marketing two or more products in a single package price is referred to as

Target return-on-investment pricing 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