Question 1

a snack vending machine,consumers can choose one of up to of 20 choices.These snacks are

Accepted Answer

A)  an ideal example of unitary demand. 
B)  likely to have a price elasticity equal to 1. 
C)  more likely to be price elastic. 
D)  likely to have a price elasticity less than 1. 
E)  more likely to be price inelastic. 
A)  an ideal example of unitary demand. 
B)  likely to have a price elasticity equal to 1. 
C)  more likely to be price elastic. 
D)  likely to have a price elasticity less than 1. 
E)  more likely to be price inelastic.

Question 2

Market analysts for a large cereal company estimated that the price elasticity of demand for presweetened cereal is 1.97,but that the entire market for ready-to-eat cereals exhibits a price elasticity of demand of 0.36.Marketers collect this type of information in which step of the price-setting process?

Accepted Answer

A)  identifying pricing objectives and constraints 
B)  estimating demand and revenue 
C)  estimating the break-even point 
D)  selecting an approximate price level 
E)  making special adjustments to list or quoted price 
A)  identifying pricing objectives and constraints 
B)  estimating demand and revenue 
C)  estimating the break-even point 
D)  selecting an approximate price level 
E)  making special adjustments to list or quoted price

Question 3

Campbell Soup spent seven years and $55 million on a super secret project to produce a line of Intelligent Quisine (IQ)food products "scientifically proven to lower high levels of cholesterol,blood sugar,and blood pressure." They were responding to the needs and desires expressed by consumers.However,after 15 months in an Ohio test market,Campbell Soup yanked the entire IQ line because

Accepted Answer

A)  Progresso Soups got to the stores first with a similar product and dominated the shelf space. 
B)  the product's claims were exaggerated and not backed up with scientific data. 
C)  the product was priced too high and there was too little product variety. 
D)  the price was too low, leaving the consumer believing that Campbell's sacrificed taste for nutrition. 
E)  a downturn in the economy shifted people's desire from a healthy lifestyle to a desire for home and comfort. The new soups were too different from the product they remembered as children. 
A)  Progresso Soups got to the stores first with a similar product and dominated the shelf space. 
B)  the product's claims were exaggerated and not backed up with scientific data. 
C)  the product was priced too high and there was too little product variety. 
D)  the price was too low, leaving the consumer believing that Campbell's sacrificed taste for nutrition. 
E)  a downturn in the economy shifted people's desire from a healthy lifestyle to a desire for home and comfort. The new soups were too different from the product they remembered as children.

Question 4

Explain the three forms of price elasticity of demand.

Accepted Answer

Price elasticity of demand assumes three

Question 5

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 6

Figure 13-5A
-Figure 13-5A above shows that when the price moves from $2.00 to $1.50 per unit along the demand curve D1,the quantity demanded

Accepted Answer

A)  increases from 3.0 to 4.5 million units per year. 
B)  decreases from 4.5 to 3.0 million units per year. 
C)  stays the same. 
D)  increases from 3.0 to 7.5 million units per year. 
E)  decreases from 7.5 to 3.0 million units per year. 
A)  increases from 3.0 to 4.5 million units per year. 
B)  decreases from 4.5 to 3.0 million units per year. 
C)  stays the same. 
D)  increases from 3.0 to 7.5 million units per year. 
E)  decreases from 7.5 to 3.0 million units per year.

Question 7

Figure 13-2
-Figure 13-2 above represents the six steps in setting price."C" represents the step at which a firm would

Accepted Answer

A)  estimate demand and revenue. 
B)  identify pricing objectives and constraints. 
C)  scan competitors for prices of similar products or services. 
D)  determine cost, volume, and profit relationships. 
E)  establish the price range. 
A)  estimate demand and revenue. 
B)  identify pricing objectives and constraints. 
C)  scan competitors for prices of similar products or services. 
D)  determine cost, volume, and profit relationships. 
E)  establish the price range.

Question 8

study of four supermarket chains found the average annual cost of changing prices was $105,887,which represents 0.70 percent of revenues and an astounding __________ percent of net margins.

Accepted Answer

A)  10.0 
B)  23.6 
C)  35.2 
D)  38.9 
E)  43.0 
A)  10.0 
B)  23.6 
C)  35.2 
D)  38.9 
E)  43.0

Question 9

percentage change in quantity demanded relative to the percentage change in price is referred to as

Accepted Answer

A)  price elasticity of demand. 
B)  price elasticity of supply. 
C)  average demand. 
D)  marginal revenue. 
E)  derived demand. 
A)  price elasticity of demand. 
B)  price elasticity of supply. 
C)  average demand. 
D)  marginal revenue. 
E)  derived demand.

Question 10

Which pricing constraint does the following statement demonstrate? "Most public utilities must petition regulatory commissions in order to obtain a rate increase."

Accepted Answer

A)  demand for the product, class, or brand 
B)  newness of product in the life cycle 
C)  costs of production 
D)  type of competitive market 
E)  single product versus a product line 
A)  demand for the product, class, or brand 
B)  newness of product in the life cycle 
C)  costs of production 
D)  type of competitive market 
E)  single product versus a product line

Question 11

Washburn Guitars markets its guitars to four distinct market segments.The firm's mass-produced instruments are targeted at

Accepted Answer

A)  first-time buyers. 
B)  professional musicians. 
C)  stars and famous musicians. 
D)  guitar collectors and music aficionados. 
E)  intermediate-skill players who may become professional musicians. 
A)  first-time buyers. 
B)  professional musicians. 
C)  stars and famous musicians. 
D)  guitar collectors and music aficionados. 
E)  intermediate-skill players who may become professional musicians.

Question 12

Figure 13-2
-Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would identify pricing objectives such as profit,market share,and survival?

Accepted Answer

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

Question 13

things being equal,if a firm finds the demand for one of its products is inelastic,it can increase its total revenues by

Accepted Answer

A)  lowering its price. 
B)  increasing fixed costs only. 
C)  increasing variable costs only. 
D)  increasing both fixed and variable costs. 
E)  raising its price. 
A)  lowering its price. 
B)  increasing fixed costs only. 
C)  increasing variable costs only. 
D)  increasing both fixed and variable costs. 
E)  raising its price.

Question 14

Explain the price equation in the context of a new car purchase.

Accepted Answer

The price equation is: Final price = Lis

Question 15

Figure 13-2
-Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would estimate dollar and unit sales revenues?

Accepted Answer

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

Question 16

cosmetology schools allow their advanced students to style hair for "real world" clients for a reduced fee.The students benefit from the experience,the clients get a less expensive haircut,and the school is able to provide students with additional training without costing it anything; in fact,they even profit from it.This is an example of

Accepted Answer

A)  value-pricing. 
B)  societal pricing. 
C)  revenue sharing. 
D)  barter. 
E)  cost-assist pricing. 
A)  value-pricing. 
B)  societal pricing. 
C)  revenue sharing. 
D)  barter. 
E)  cost-assist pricing.

Question 17

formula,Total revenue − Total cost,or [(Unit price × Quantity sold)− (Fixed cost + Variable cost)] represents __________.

Accepted Answer

A)  the value equation 
B)  the sales ratio 
C)  average revenue 
D)  the break-even point 
E)  the profit equation 
A)  the value equation 
B)  the sales ratio 
C)  average revenue 
D)  the break-even point 
E)  the profit equation

Question 18

Figure 13-7
-According to Figure 13-7 above,when the price of Newsweek is $1.00 per issue,how many magazines will it sell?

Accepted Answer

A)  1,500,000 
B)  3,000,000 
C)  4,500,000 
D)  6,000,000 
E)  7,500,000 
A)  1,500,000 
B)  3,000,000 
C)  4,500,000 
D)  6,000,000 
E)  7,500,000

Question 19

of the following are examples of a price EXCEPT:

Accepted Answer

A)  a premium. 
B)  barter. 
C)  tuition. 
D)  a commission. 
E)  profit. 
A)  a premium. 
B)  barter. 
C)  tuition. 
D)  a commission. 
E)  profit.

Question 20

are president of a manufacturer of small electric appliances.You want to reduce your break-even quantity.All things being equal,you can do this by

Accepted Answer

A)  increasing the quantity sold, while keeping price unchanged. 
B)  reducing marginal revenue. 
C)  reducing unit variable cost. 
D)  increasing fixed cost. 
E)  increasing total cost. 
A)  increasing the quantity sold, while keeping price unchanged. 
B)  reducing marginal revenue. 
C)  reducing unit variable cost. 
D)  increasing fixed cost. 
E)  increasing total cost.

a snack vending machine,consumers can choose one of up to of 20 choices.These snacks are

Explain the three forms of price elasticity of demand.

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.

Figure 13-5A -Figure 13-5A above shows that when the price moves from $2.00 to $1.50 per unit along the demand curve D₁,the quantity demanded

Figure 13-2 -Figure 13-2 above represents the six steps in setting price."C" represents the step at which a firm would

study of four supermarket chains found the average annual cost of changing prices was $105,887,which represents 0.70 percent of revenues and an astounding __________ percent of net margins.

percentage change in quantity demanded relative to the percentage change in price is referred to as

Which pricing constraint does the following statement demonstrate? "Most public utilities must petition regulatory commissions in order to obtain a rate increase."

Washburn Guitars markets its guitars to four distinct market segments.The firm's mass-produced instruments are targeted at

Figure 13-2 -Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would identify pricing objectives such as profit,market share,and survival?

things being equal,if a firm finds the demand for one of its products is inelastic,it can increase its total revenues by

Explain the price equation in the context of a new car purchase.

Figure 13-2 -Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would estimate dollar and unit sales revenues?

formula,Total revenue − Total cost,or [(Unit price × Quantity sold)− (Fixed cost + Variable cost)] represents __________.

Figure 13-7 -According to Figure 13-7 above,when the price of Newsweek is $1.00 per issue,how many magazines will it sell?

of the following are examples of a price EXCEPT:

are president of a manufacturer of small electric appliances.You want to reduce your break-even quantity.All things being equal,you can do this by

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

Exam 13: Building the Price Foundation

a snack vending machine,consumers can choose one of up to of 20 choices.These snacks are

Explain the three forms of price elasticity of demand.

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.

Figure 13-5A -Figure 13-5A above shows that when the price moves from $2.00 to $1.50 per unit along the demand curve D1,the quantity demanded

Figure 13-2 -Figure 13-2 above represents the six steps in setting price."C" represents the step at which a firm would

study of four supermarket chains found the average annual cost of changing prices was $105,887,which represents 0.70 percent of revenues and an astounding __________ percent of net margins.

percentage change in quantity demanded relative to the percentage change in price is referred to as

Which pricing constraint does the following statement demonstrate? "Most public utilities must petition regulatory commissions in order to obtain a rate increase."

Washburn Guitars markets its guitars to four distinct market segments.The firm's mass-produced instruments are targeted at

Figure 13-2 -Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would identify pricing objectives such as profit,market share,and survival?

things being equal,if a firm finds the demand for one of its products is inelastic,it can increase its total revenues by

Explain the price equation in the context of a new car purchase.

Figure 13-2 -Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would estimate dollar and unit sales revenues?

formula,Total revenue − Total cost,or [(Unit price × Quantity sold)− (Fixed cost + Variable cost)] represents __________.

Figure 13-7 -According to Figure 13-7 above,when the price of Newsweek is $1.00 per issue,how many magazines will it sell?

of the following are examples of a price EXCEPT:

are president of a manufacturer of small electric appliances.You want to reduce your break-even quantity.All things being equal,you can do this by

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

Figure 13-5A -Figure 13-5A above shows that when the price moves from $2.00 to $1.50 per unit along the demand curve D₁,the quantity demanded