Question 1

While consumer tastes and price and availability of similar products determine what consumers want to buy,consumer income determines

Accepted Answer

A)  where they buy. 
B)  the degree of brand loyalty. 
C)  the degree of repeat buys. 
D)  what they can buy. 
E)  their desire to buy. 
A)  where they buy. 
B)  the degree of brand loyalty. 
C)  the degree of repeat buys. 
D)  what they can buy. 
E)  their desire to buy.

Question 2

a marketing viewpoint,__________ is money or other considerations (including other products and services)exchanged for the ownership or use of a product or service.

Accepted Answer

A)  the value 
B)  price 
C)  barter 
D)  currency 
E)  a tariff 
A)  the value 
B)  price 
C)  barter 
D)  currency 
E)  a tariff

Question 3

Which of the following would be an example of an objective in Step 1 of the price-setting process?

Accepted Answer

A)  "We need to find the least expensive distributor." 
B)  "We need to make allowances for large quantity orders." 
C)  "We need to increase the price during the holiday shopping season." 
D)  "We need to forget profits right now; just make sure we break even." 
E)  "We need to hire a professional accountant." 
A)  "We need to find the least expensive distributor." 
B)  "We need to make allowances for large quantity orders." 
C)  "We need to increase the price during the holiday shopping season." 
D)  "We need to forget profits right now; just make sure we break even." 
E)  "We need to hire a professional accountant."

Question 4

competitive market circumstances are such that there are few sellers who are sensitive to each other's prices,and the purpose of advertising is to inform but avoid price competition,then __________ must exist in the industry.

Accepted Answer

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

Question 5

Barter is the practice of exchanging products and services for other products and services rather than for ___________.

Accepted Answer

A)  value 
B)  ideas 
C)  promises 
D)  tariffs 
E)  money 
A)  value 
B)  ideas 
C)  promises 
D)  tariffs 
E)  money

Question 6

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

Accepted Answer

A)  Price elasticity with unitary demand is less than 1. 
B)  The more substitutes a product has, the less likely it is to be price elastic. 
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 a decrease 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)  Price elasticity with unitary demand is less than 1. 
B)  The more substitutes a product has, the less likely it is to be price elastic. 
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 a decrease 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 7

Shoe Company sells heel replacement kits for men's shoes.It has fixed costs of $6 million and unit variable costs of $5 per pair.Ace would like to earn a profit of $2 million; how many pairs must they sell at a price of $15?

Accepted Answer

A)  100,000 kits 
B)  400,000 kits 
C)  600,000 kits 
D)  800,000 kits 
E)  1,400,000 kits 
A)  100,000 kits 
B)  400,000 kits 
C)  600,000 kits 
D)  800,000 kits 
E)  1,400,000 kits

Question 8

Marketing managers often use break-even analysis to analyze the relationship between total revenue and total cost to determine profitability at various levels of output.What is the break-even formula? Use the formula to calculate how many DVD players a dealer must sell if her fixed costs are $100,000,unit variable costs are $150,and the selling price is $200.

Accepted Answer

The break-even point (BEP)is t

Question 9

Several companies produce latex gloves that are used in a variety of different industries.If one of the glove manufacturers decreases its price by just a few percentage points,it will result in a significant increase in quantity demanded.The demand for latex gloves is

Accepted Answer

A)  synergistic. 
B)  inelastic. 
C)  unitary. 
D)  elastic. 
E)  entropic. 
A)  synergistic. 
B)  inelastic. 
C)  unitary. 
D)  elastic. 
E)  entropic.

Question 10

Which of the following is a special type of price?

Accepted Answer

A)  college tuition 
B)  operating costs 
C)  liquidity 
D)  value 
E)  stockholders' equity 
A)  college tuition 
B)  operating costs 
C)  liquidity 
D)  value 
E)  stockholders' equity

Question 11

book on how to invest in collectibles spends several weeks on The New York Times bestseller list.The paperback book was originally released for $9.99.A reduction of the price to $9.79 had no effect on total revenue,which remained the same.This is due to the book having

Accepted Answer

A)  inelastic demand. 
B)  elastic demand. 
C)  null elasticity. 
D)  unitary demand. 
E)  subsidized elasticity. 
A)  inelastic demand. 
B)  elastic demand. 
C)  null elasticity. 
D)  unitary demand. 
E)  subsidized elasticity.

Question 12

Florida Power & Light,an electric power company,is the only source of electricity for consumers in most parts of the Florida panhandle.As a(n)__________,the company receives approval from the state utility commission for the rates it can charge.

Accepted Answer

A)  free enterprise firm 
B)  oligopoly 
C)  monopolistic competitor 
D)  competitor in a pure competition 
E)  pure monopoly 
A)  free enterprise firm 
B)  oligopoly 
C)  monopolistic competitor 
D)  competitor in a pure competition 
E)  pure monopoly

Question 13

Which of the following would be an example of an objective in Step 1 of the price-setting process?

Accepted Answer

A)  "We need to set an initial price of $259 dollars per unit." 
B)  "We need to find the least expensive distributor." 
C)  "We need to make a profit of at least $1.2 million." 
D)  "We need to make allowances for large quantity orders." 
E)  "We need to increase the price during the holiday shopping season." 
A)  "We need to set an initial price of $259 dollars per unit." 
B)  "We need to find the least expensive distributor." 
C)  "We need to make a profit of at least $1.2 million." 
D)  "We need to make allowances for large quantity orders." 
E)  "We need to increase the price during the holiday shopping season."

Question 14

cost concepts are important in pricing decisions: total cost,fixed cost,variable cost,marginal cost,and __________.

Accepted Answer

A)  dividend cost 
B)  liquidity cost 
C)  discretionary cost 
D)  unit variable cost 
E)  elastic cost 
A)  dividend cost 
B)  liquidity cost 
C)  discretionary cost 
D)  unit variable cost 
E)  elastic cost

Question 15

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 16

Apple iTunes has an advantage over Amazon as an online music supplier because

Accepted Answer

A)  it has a larger market share and has tied its iTunes software to products like iPods. 
B)  people aren't aware that Amazon sells music. 
C)  most digital songs play only on iTunes-compatible devices like iPods. 
D)  it reached the market first. 
E)  it has a slicker user interface. 
A)  it has a larger market share and has tied its iTunes software to products like iPods. 
B)  people aren't aware that Amazon sells music. 
C)  most digital songs play only on iTunes-compatible devices like iPods. 
D)  it reached the market first. 
E)  it has a slicker user interface.

Question 17

Calculate a firm's total revenue (TR)using the following information: the unit price (P)for a product is $40; the quantity sold (Q)is 2,000; the fixed cost (FC)is $50,000; and the variable cost (VC)is $20,000.

Accepted Answer

A)  $10,000 
B)  $50,000 
C)  $110,000 
D)  $150,000 
E)  cannot be determined with the information provided 
A)  $10,000 
B)  $50,000 
C)  $110,000 
D)  $150,000 
E)  cannot be determined with the information provided

Question 18

firm's profit objective is often measured in terms of ROA.The acronym ROA stands for __________.

Accepted Answer

A)  return on assets 
B)  risk opportunity assessment 
C)  return of allowances 
D)  return on average equity 
E)  risk opportunity analysis 
A)  return on assets 
B)  risk opportunity assessment 
C)  return of allowances 
D)  return on average equity 
E)  risk opportunity analysis

Question 19

break-even chart refers to a graphic presentation

Accepted Answer

A)  that shows the maximum number of units that will be sold at a certain price. 
B)  of a break-even analysis that shows when total revenue and total cost intersect to identify profit or loss for a given quantity sold. 
C)  that relates variable costs in terms of product or service substitutes in order to determine which items or services would least affect total revenues. 
D)  that relates profits and revenues versus total costs in order to determine the time frame in which a company could achieve profitability. 
E)  in the form of a scatter graph used to identify specific activities or items that are creating the greatest return on investment. 
A)  that shows the maximum number of units that will be sold at a certain price. 
B)  of a break-even analysis that shows when total revenue and total cost intersect to identify profit or loss for a given quantity sold. 
C)  that relates variable costs in terms of product or service substitutes in order to determine which items or services would least affect total revenues. 
D)  that relates profits and revenues versus total costs in order to determine the time frame in which a company could achieve profitability. 
E)  in the form of a scatter graph used to identify specific activities or items that are creating the greatest return on investment.

Question 20

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

Exam 13: Building the Price Foundation

While consumer tastes and price and availability of similar products determine what consumers want to buy,consumer income determines

a marketing viewpoint,__________ is money or other considerations (including other products and services)exchanged for the ownership or use of a product or service.

Which of the following would be an example of an objective in Step 1 of the price-setting process?

competitive market circumstances are such that there are few sellers who are sensitive to each other's prices,and the purpose of advertising is to inform but avoid price competition,then __________ must exist in the industry.

Barter is the practice of exchanging products and services for other products and services rather than for ___________.

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

Shoe Company sells heel replacement kits for men's shoes.It has fixed costs of $6 million and unit variable costs of $5 per pair.Ace would like to earn a profit of $2 million; how many pairs must they sell at a price of $15?

Several companies produce latex gloves that are used in a variety of different industries.If one of the glove manufacturers decreases its price by just a few percentage points,it will result in a significant increase in quantity demanded.The demand for latex gloves is

Which of the following is a special type of price?

book on how to invest in collectibles spends several weeks on The New York Times bestseller list.The paperback book was originally released for $9.99.A reduction of the price to $9.79 had no effect on total revenue,which remained the same.This is due to the book having

Florida Power & Light,an electric power company,is the only source of electricity for consumers in most parts of the Florida panhandle.As a(n)__________,the company receives approval from the state utility commission for the rates it can charge.

Which of the following would be an example of an objective in Step 1 of the price-setting process?

cost concepts are important in pricing decisions: total cost,fixed cost,variable cost,marginal cost,and __________.

variable cost refers to variable cost expressed

Apple iTunes has an advantage over Amazon as an online music supplier because

Calculate a firm's total revenue (TR)using the following information: the unit price (P)for a product is $40; the quantity sold (Q)is 2,000; the fixed cost (FC)is $50,000; and the variable cost (VC)is $20,000.

firm's profit objective is often measured in terms of ROA.The acronym ROA stands for __________.

break-even chart refers to a graphic presentation

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

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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