Question 1

Figure 13-5A
-Figure 13-5A above shows that when the quantity demanded moves from 3.0 to 4.5 million units along the demand curve D1,the profit

Accepted Answer

A)  increases from $1.50 to $2.00 per unit. 
B)  decreases from $2.00 to $1.50 per unit. 
C)  stays the same per unit. 
D)  increases from $0.50 to $1.50 per unit. 
E)  Figure 13-5A does not indicate what happens to profit when the quantity demanded changes. 
A)  increases from $1.50 to $2.00 per unit. 
B)  decreases from $2.00 to $1.50 per unit. 
C)  stays the same per unit. 
D)  increases from $0.50 to $1.50 per unit. 
E)  Figure 13-5A does not indicate what happens to profit when the quantity demanded changes.

Question 2

Which of the following statements is most accurate?

Accepted Answer

A)  Nonprofit organizations are exempt from having to cover the costs of producing and/or marketing their products. 
B)  Socially responsible corporations should have the pricing constraint of covering all costs of producing and marketing their products, but they should not price their products to earn a profit. 
C)  Regardless of a company's constraints, a firm must cover all the costs of producing and marketing a product, or the firm will fail. 
D)  Price elasticity of demand makes it virtually impossible for companies to cover all their marketing and production costs at all times. 
E)  Marketing and production costs are the most difficult and expensive aspect of pricing because they draw so much capital away from other departments in the organization. 
A)  Nonprofit organizations are exempt from having to cover the costs of producing and/or marketing their products. 
B)  Socially responsible corporations should have the pricing constraint of covering all costs of producing and marketing their products, but they should not price their products to earn a profit. 
C)  Regardless of a company's constraints, a firm must cover all the costs of producing and marketing a product, or the firm will fail. 
D)  Price elasticity of demand makes it virtually impossible for companies to cover all their marketing and production costs at all times. 
E)  Marketing and production costs are the most difficult and expensive aspect of pricing because they draw so much capital away from other departments in the organization.

Question 3

volume as a pricing objective refers to

Accepted Answer

A)  the quantity of products to be produced or sold. 
B)  the ratio of price per unit to unit variable cost. 
C)  the ratio of production costs to the minimum sales price that would still generate profit. 
D)  the total quantity of product sold by a firm relative to the total quantity of product sold by all firms in the industry. 
E)  the number of units that need to be sold in order to avoid inventory carrying costs. 
A)  the quantity of products to be produced or sold. 
B)  the ratio of price per unit to unit variable cost. 
C)  the ratio of production costs to the minimum sales price that would still generate profit. 
D)  the total quantity of product sold by a firm relative to the total quantity of product sold by all firms in the industry. 
E)  the number of units that need to be sold in order to avoid inventory carrying costs.

Question 4

Which of the following are examples of elements involved in Step 1 of the price-setting process: identify pricing objectives?

Accepted Answer

A)  profit, market share, and survival 
B)  estimation of demand, sales revenue, and price elasticity 
C)  cost estimation, marginal analysis, and break-even analysis 
D)  demand for the product class and brand, newness of the product, and competition 
E)  market segmentation targeting, and positioning 
A)  profit, market share, and survival 
B)  estimation of demand, sales revenue, and price elasticity 
C)  cost estimation, marginal analysis, and break-even analysis 
D)  demand for the product class and brand, newness of the product, and competition 
E)  market segmentation targeting, and positioning

Question 5

While pricing objectives frequently reflect corporate goals,pricing constraints often relate to

Accepted Answer

A)  stockholder demands. 
B)  political ideology. 
C)  conditions existing in the marketplace. 
D)  an organization's code of ethics. 
E)  the financial realities within the organization itself. 
A)  stockholder demands. 
B)  political ideology. 
C)  conditions existing in the marketplace. 
D)  an organization's code of ethics. 
E)  the financial realities within the organization itself.

Question 6

a price of $3.00 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 $3.25,only 1 million copies would be sold.Fixed costs are $1 million and unit variable costs are $0.50 per magazine.From the information provided here,what is SHAPE magazine's total revenue obtained at the lower price?

Accepted Answer

A)  $3,750,000 
B)  $3,250,000 
C)  $3,000,000 
D)  $2,125,000 
E)  $1,750,000 
A)  $3,750,000 
B)  $3,250,000 
C)  $3,000,000 
D)  $2,125,000 
E)  $1,750,000

Question 7

of the following are demand factors EXCEPT:

Accepted Answer

A)  the price of similar products. 
B)  consumer tastes. 
C)  consumer income. 
D)  the availability of similar products. 
E)  the number of distribution outlets carrying the product. 
A)  the price of similar products. 
B)  consumer tastes. 
C)  consumer income. 
D)  the availability of similar products. 
E)  the number of distribution outlets carrying the product.

Question 8

Explain why price elasticity is important to marketing managers.

Accepted Answer

Price elasticity of demand is important

Question 9

use of "special fees" and "surcharges" is driven by consumers' zeal for __________ and the ease of making price comparisons on the Internet.

Accepted Answer

A)  high prices 
B)  low prices 
C)  quality 
D)  value 
E)  warranties 
A)  high prices 
B)  low prices 
C)  quality 
D)  value 
E)  warranties

Question 10

According to the price equation,a product's or service's final price equals its list price minus incentives and allowances plus

Accepted Answer

A)  profits. 
B)  commissions. 
C)  trade-ins. 
D)  extra fees. 
E)  taxes. 
A)  profits. 
B)  commissions. 
C)  trade-ins. 
D)  extra fees. 
E)  taxes.

Question 11

practice of simultaneously increasing product and service benefits and maintaining or decreasing price is referred to as __________.

Accepted Answer

A)  value-pricing 
B)  customer-value pricing 
C)  competitive pricing 
D)  cost pricing 
E)  demand pricing 
A)  value-pricing 
B)  customer-value pricing 
C)  competitive pricing 
D)  cost pricing 
E)  demand pricing

Question 12

Figure 13-5B
-Figure 13-5B above shows that when the quantity demanded moves from 3.0 to 6.0 million units along the demand curve D1,the profit

Accepted Answer

A)  increases from $1.50 to $2.00 per unit. 
B)  decreases from $2.00 to $1.50 per unit. 
C)  stays the same per unit. 
D)  increases from $0.50 to $1.50 per unit. 
E)  Figure 13-5B does not indicate what happens to profit when the quantity demanded moves. 
A)  increases from $1.50 to $2.00 per unit. 
B)  decreases from $2.00 to $1.50 per unit. 
C)  stays the same per unit. 
D)  increases from $0.50 to $1.50 per unit. 
E)  Figure 13-5B does not indicate what happens to profit when the quantity demanded moves.

Question 13

of the following statements about price are true EXCEPT:

Accepted Answer

A)  Research on 1,000 large U.S. companies shows that a 1 percent price increase translates to a 12 percent increase in profitability, other factors remaining the same. 
B)  The price for a product or service must earn a profit for the company. 
C)  For most products and services, their prices are always the same. 
D)  The price must be "right"-in the sense that customers must be willing to pay it. 
E)  The price must generate enough sales dollars to pay for the cost of developing, producing, and marketing the product. 
A)  Research on 1,000 large U.S. companies shows that a 1 percent price increase translates to a 12 percent increase in profitability, other factors remaining the same. 
B)  The price for a product or service must earn a profit for the company. 
C)  For most products and services, their prices are always the same. 
D)  The price must be "right"-in the sense that customers must be willing to pay it. 
E)  The price must generate enough sales dollars to pay for the cost of developing, producing, and marketing the product.

Question 14

Economists have identified four types of competitive markets: pure monopoly,monopolistic competition,oligopoly,and __________.

Accepted Answer

A)  pure competition 
B)  government-dominated 
C)  capitalist 
D)  socialist 
E)  communist 
A)  pure competition 
B)  government-dominated 
C)  capitalist 
D)  socialist 
E)  communist

Question 15

ratio of perceived benefits to price is referred to as

Accepted Answer

A)  the price-quality relationship. 
B)  customer value pricing. 
C)  value-added pricing. 
D)  value analysis. 
E)  value. 
A)  the price-quality relationship. 
B)  customer value pricing. 
C)  value-added pricing. 
D)  value analysis. 
E)  value.

Question 16

Making special adjustments to the list or quoted price would occur during __________ of the price-setting process.

Accepted Answer

A)  Step 2 
B)  Step 3 
C)  Step 4 
D)  Step 5 
E)  Step 6 
A)  Step 2 
B)  Step 3 
C)  Step 4 
D)  Step 5 
E)  Step 6

Question 17

over half of tickets to major events sold online,StubHub's website can help generate extra ticket sales for the original sponsors.This is why

Accepted Answer

A)  Ticketmaster recently purchased StubHub for $213 million dollars. 
B)  StubHub has to pay licensing fees to all major sports teams whose tickets are sold on their website. 
C)  StubHub now has formal relationships not only with professional sports leagues, but also with many sports programs at major universities. 
D)  Stub Hub has expanded their mission from being "a sports ticket marketplace" to the "hub of all entertainment experiences." 
E)  StubHub pays a surtax on any ticket it sells if the games are not already sold out at local stadiums. 
A)  Ticketmaster recently purchased StubHub for $213 million dollars. 
B)  StubHub has to pay licensing fees to all major sports teams whose tickets are sold on their website. 
C)  StubHub now has formal relationships not only with professional sports leagues, but also with many sports programs at major universities. 
D)  Stub Hub has expanded their mission from being "a sports ticket marketplace" to the "hub of all entertainment experiences." 
E)  StubHub pays a surtax on any ticket it sells if the games are not already sold out at local stadiums.

Question 18

technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output is referred to as __________.

Accepted Answer

A)  break-even analysis 
B)  marginal analysis 
C)  sensitivity analysis 
D)  market analysis 
E)  tipping point analysis 
A)  break-even analysis 
B)  marginal analysis 
C)  sensitivity analysis 
D)  market analysis 
E)  tipping point analysis

Question 19

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

Question 20

Describe a profit objective used by many Japanese firms.

Accepted Answer

Managing for long-run profits is a prici

Exam 13: Building the Price Foundation

Figure 13-5A -Figure 13-5A above shows that when the quantity demanded moves from 3.0 to 4.5 million units along the demand curve D1,the profit

Which of the following statements is most accurate?

volume as a pricing objective refers to

Which of the following are examples of elements involved in Step 1 of the price-setting process: identify pricing objectives?

While pricing objectives frequently reflect corporate goals,pricing constraints often relate to

of the following are demand factors EXCEPT:

Explain why price elasticity is important to marketing managers.

use of "special fees" and "surcharges" is driven by consumers' zeal for __________ and the ease of making price comparisons on the Internet.

According to the price equation,a product's or service's final price equals its list price minus incentives and allowances plus

practice of simultaneously increasing product and service benefits and maintaining or decreasing price is referred to as __________.

Figure 13-5B -Figure 13-5B above shows that when the quantity demanded moves from 3.0 to 6.0 million units along the demand curve D1,the profit

of the following statements about price are true EXCEPT:

Economists have identified four types of competitive markets: pure monopoly,monopolistic competition,oligopoly,and __________.

ratio of perceived benefits to price is referred to as

Making special adjustments to the list or quoted price would occur during __________ of the price-setting process.

over half of tickets to major events sold online,StubHub's website can help generate extra ticket sales for the original sponsors.This is why

technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output is referred to as __________.

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.

Describe a profit objective used by many Japanese firms.

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 quantity demanded moves from 3.0 to 4.5 million units along the demand curve D₁,the profit

Figure 13-5B -Figure 13-5B above shows that when the quantity demanded moves from 3.0 to 6.0 million units along the demand curve D₁,the profit