Question 1

Average revenue is

Accepted Answer

A)  the typical or average sales generated for all items within an industry. 
B)  the average amount of revenue necessary for a business to remain profitable. 
C)  total revenue divided by the quantity sold. 
D)  the difference between the highest and lowest price charged for a given item within a specific firm. 
E)  the difference between the highest and lowest price charged for a given item within a specific industry. 
A)  the typical or average sales generated for all items within an industry. 
B)  the average amount of revenue necessary for a business to remain profitable. 
C)  total revenue divided by the quantity sold. 
D)  the difference between the highest and lowest price charged for a given item within a specific firm. 
E)  the difference between the highest and lowest price charged for a given item within a specific industry.

Question 2

What is StubHub's pricing formula?

Accepted Answer

The StubHub pricing formula is very stra

Question 3

Pricing constraints are

Accepted Answer

A)  the controllable elements in a firm's marketing mix that allow it to charge the highest price possible. 
B)  formulas used in establishing break-even points, price elasticity of demand, and marginal analysis of revenues and costs. 
C)  factors that limit the range of prices a firm may set. 
D)  factors that expand the range of prices a firm may set. 
E)  virtual boundaries used when setting the initial price on a new product. 
A)  the controllable elements in a firm's marketing mix that allow it to charge the highest price possible. 
B)  formulas used in establishing break-even points, price elasticity of demand, and marginal analysis of revenues and costs. 
C)  factors that limit the range of prices a firm may set. 
D)  factors that expand the range of prices a firm may set. 
E)  virtual boundaries used when setting the initial price on a new product.

Question 4

Figure 13-2
-Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would estimate demand?

Accepted Answer

A)  "A" 
B)  "B" 
C)  "C" 
D)  "D" 
E)  "E" 
A)  "A" 
B)  "B" 
C)  "C" 
D)  "D" 
E)  "E"

Question 5

Which of the following statements about price elasticity of demand most accurate?

Accepted Answer

A)  The more substitutes a product has, the more likely it is to be price elastic. 
B)  Price elasticity with inelastic demand must always be greater than 1. 
C)  Unitary demand represents the relationship between the cash outlay necessary to purchase a product relative to a person's disposable income. 
D)  With inelastic demand, reducing price will result in an increase of total revenue. 
E)  With inelastic demand, reducing price will result in an increase in total revenue, although not necessarily an increase in profit. 
A)  The more substitutes a product has, the more likely it is to be price elastic. 
B)  Price elasticity with inelastic demand must always be greater than 1. 
C)  Unitary demand represents the relationship between the cash outlay necessary to purchase a product relative to a person's disposable income. 
D)  With inelastic demand, reducing price will result in an increase of total revenue. 
E)  With inelastic demand, reducing price will result in an increase in total revenue, although not necessarily an increase in profit.

Question 6

Objectives like profit,market share,and survival as well as constraints such demand for product class and brand,newness,costs,and competition are issues that would be addressed during __________ of the price-setting process.

Accepted Answer

A)  Step 1 
B)  Step 2 
C)  Step 3 
D)  Step 4 
E)  Step 5 
A)  Step 1 
B)  Step 2 
C)  Step 3 
D)  Step 4 
E)  Step 5

Question 7

Figure 13-2
-Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would conduct a break-even analysis?

Accepted Answer

A)  "A" 
B)  "B" 
C)  "C" 
D)  "D" 
E)  "E" 
A)  "A" 
B)  "B" 
C)  "C" 
D)  "D" 
E)  "E"

Question 8

month,the owner of a carwash pays $2,500 in rent,$500 in utilities,$750 interest on the business loan,an insurance premium of $200,and $250 on advertising on local bus routes.A full-service carwash is priced at $10.50.Unit variable costs for the carwash are $7.50.At what level of revenue will the carwash break even?

Accepted Answer

A)  $4,200 
B)  $10,500 
C)  $14,700 
D)  $30,000 
E)  $39,900 
A)  $4,200 
B)  $10,500 
C)  $14,700 
D)  $30,000 
E)  $39,900

Question 9

Three different objectives relate to a firm's profit,which is often measured in terms of return on investment.One objective,known as _________,is when a company gives up immediate profit in exchange for achieving a higher market share in the hopes of penetrating competitive markets.

Accepted Answer

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

Question 10

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 11

a price of $4.00 each,SHAPE magazine sells 1.25 million copies of its magazine targeted to young women seeking a healthier lifestyle.If the price per issue is increased to $4.50 each,only 1 million copies will be sold.Fixed costs are $1 million and unit variable costs are $0.50 per magazine.Calculate the average revenue for SHAPE magazine at the higher price.

Accepted Answer

A)  $0.50 
B)  $1.25 
C)  $4.00 
D)  $4.50 
E)  $8.50 
A)  $0.50 
B)  $1.25 
C)  $4.00 
D)  $4.50 
E)  $8.50

Question 12

Define marginal analysis.

Accepted Answer

Marginal analysis means that people will

Question 13

Demand for a product is likely to be more price elastic if

Accepted Answer

A)  it is considered a necessity. 
B)  it has many substitutes. 
C)  it has few substitutes. 
D)  it requires a small cash outlay. 
E)  none of the above is true. 
A)  it is considered a necessity. 
B)  it has many substitutes. 
C)  it has few substitutes. 
D)  it requires a small cash outlay. 
E)  none of the above is true.

Question 14

which type of industry would a marketing director be most likely to say,"We have to let the customer know that our product is the only one that comes with its own tracking device"?

Accepted Answer

A)  pure monopoly 
B)  oligopoly 
C)  pure competition 
D)  monopolistic oligopoly 
E)  monopolistic competition 
A)  pure monopoly 
B)  oligopoly 
C)  pure competition 
D)  monopolistic oligopoly 
E)  monopolistic competition

Question 15

break-even point for a large grain farming operation was calculated to be 2 million bushels of corn.Break-even analysis would take place during which step of the price-setting process?

Accepted Answer

A)  identify pricing objectives and constraints 
B)  determine cost, volume, and profit relationships 
C)  estimate demand and revenue 
D)  select an approximate price level 
E)  make special adjustments to list or quoted price 
A)  identify pricing objectives and constraints 
B)  determine cost, volume, and profit relationships 
C)  estimate demand and revenue 
D)  select an approximate price level 
E)  make special adjustments to list or quoted price

Question 16

There are a lot of skateboards on the market,but the BMW Streetcarver is the only one with stabilizers and wheel design based on BMW's automobiles.This technology gives the BMW Streetcarver better control at high speeds and around sharp turns than any other brand.The skateboard is priced at $495,which leaves many consumers (especially young males)who might want to buy the Streetcarver unable to afford it.This inability to pay for the high-priced BMW-made skateboard shows the affect of __________ on sales.

Accepted Answer

A)  demand factors 
B)  macroeconomic environmental factors 
C)  barter factors 
D)  supply factors 
E)  exchange parameters 
A)  demand factors 
B)  macroeconomic environmental factors 
C)  barter factors 
D)  supply factors 
E)  exchange parameters

Question 17

Elastic demand exists when

Accepted Answer

A)  a small percentage decrease in price produces a smaller percentage increase in quantity demanded and total revenue falls. 
B)  a small percentage decrease in price produces a larger percentage increase in quantity demanded and total revenue increases. 
C)  an increase in price causes a larger increase in quantity demanded and total revenue falls to zero. 
D)  the quantity demanded remains the same regardless of level of price and total revenue is unchanged. 
E)  a small percentage decrease in price produces a smaller percentage decrease in quantity demanded and total revenue increases. 
A)  a small percentage decrease in price produces a smaller percentage increase in quantity demanded and total revenue falls. 
B)  a small percentage decrease in price produces a larger percentage increase in quantity demanded and total revenue increases. 
C)  an increase in price causes a larger increase in quantity demanded and total revenue falls to zero. 
D)  the quantity demanded remains the same regardless of level of price and total revenue is unchanged. 
E)  a small percentage decrease in price produces a smaller percentage decrease in quantity demanded and total revenue increases.

Question 18

George and Alice Renfro decided to start a family business in 1990.Its product: chowchow,a southern regional food.To determine how they would price the chowchow,the Renfros had to: (1)examine the demand for the product and how much it would cost to distribute the product to area grocery stores.For the Renfros,Step 1 of their price-setting process consists of

Accepted Answer

A)  identifying pricing constraints. 
B)  estimating break-even points and revenue points. 
C)  setting the list price. 
D)  selecting an approximate price level. 
E)  determining cost, volume, and profit relationships. 
A)  identifying pricing constraints. 
B)  estimating break-even points and revenue points. 
C)  setting the list price. 
D)  selecting an approximate price level. 
E)  determining cost, volume, and profit relationships.

Question 19

Figure 13-4
-Figure 13-4 above,column "A" represents which type of competitive market?

Accepted Answer

A)  pure monopoly 
B)  oligopoly 
C)  monopolistic competition 
D)  pure competition 
E)  monopolistic oligopoly 
A)  pure monopoly 
B)  oligopoly 
C)  monopolistic competition 
D)  pure competition 
E)  monopolistic oligopoly

Question 20

to any Kroger supermarket and walk to the cereal aisle.You will notice that four major brands-Kellogg's,Quaker,General Mills,and Post-seem to occupy most of the shelf space.These cereals are all priced about the same.There is a good deal of product differentiation as the result of licensing agreements with movie studios (Disney,DreamWorks,etc.)and through the use of different health claims.The cereal industry is an example of what type of competitive market?

Accepted Answer

A)  a pure monopoly 
B)  monopolistic competition 
C)  pure competition 
D)  monopolistic oligopoly 
E)  an oligopoly 
A)  a pure monopoly 
B)  monopolistic competition 
C)  pure competition 
D)  monopolistic oligopoly 
E)  an oligopoly

Average revenue is

What is StubHub's pricing formula?

Pricing constraints are

Figure 13-2 -Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would estimate demand?

Which of the following statements about price elasticity of demand most accurate?

Objectives like profit,market share,and survival as well as constraints such demand for product class and brand,newness,costs,and competition are issues that would be addressed during __________ of the price-setting process.

Figure 13-2 -Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would conduct a break-even analysis?

Three different objectives relate to a firm's profit,which is often measured in terms of return on investment.One objective,known as _________,is when a company gives up immediate profit in exchange for achieving a higher market share in the hopes of penetrating competitive markets.

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

Define marginal analysis.

Demand for a product is likely to be more price elastic if

which type of industry would a marketing director be most likely to say,"We have to let the customer know that our product is the only one that comes with its own tracking device"?

break-even point for a large grain farming operation was calculated to be 2 million bushels of corn.Break-even analysis would take place during which step of the price-setting process?

Elastic demand exists when

Figure 13-4 -Figure 13-4 above,column "A" represents which type of competitive market?

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

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

Services Marketing

Arriving at the Final Price

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multi-Channel Marketing

Pulling It All Together: The Strategic Marketing Process

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Exam 13: Building the Price Foundation

Average revenue is

What is StubHub's pricing formula?

Pricing constraints are

Figure 13-2 -Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would estimate demand?

Which of the following statements about price elasticity of demand most accurate?

Objectives like profit,market share,and survival as well as constraints such demand for product class and brand,newness,costs,and competition are issues that would be addressed during __________ of the price-setting process.

Figure 13-2 -Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would conduct a break-even analysis?

Three different objectives relate to a firm's profit,which is often measured in terms of return on investment.One objective,known as _________,is when a company gives up immediate profit in exchange for achieving a higher market share in the hopes of penetrating competitive markets.

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

Define marginal analysis.

Demand for a product is likely to be more price elastic if

which type of industry would a marketing director be most likely to say,"We have to let the customer know that our product is the only one that comes with its own tracking device"?

break-even point for a large grain farming operation was calculated to be 2 million bushels of corn.Break-even analysis would take place during which step of the price-setting process?

Elastic demand exists when

Figure 13-4 -Figure 13-4 above,column "A" represents which type of competitive market?

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

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

Services Marketing

Arriving at the Final Price

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multi-Channel Marketing

Pulling It All Together: The Strategic Marketing Process

Filters