Question 1

maximizing current profit objective implies that a company chooses to

Accepted Answer

A)  set targets whose performance can be measured quickly. 
B)  give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets. 
C)  set a profit goal that is often determined by its board of directors. 
D)  reduce investment in any further market or product research. 
E)  set prices based on return on sales. 
A)  set targets whose performance can be measured quickly. 
B)  give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets. 
C)  set a profit goal that is often determined by its board of directors. 
D)  reduce investment in any further market or product research. 
E)  set prices based on return on sales.

Question 2

Which term describes factors that limit the range of prices a firm may set?

Accepted Answer

A)  price fixings 
B)  pricing constraints 
C)  price elasticities 
D)  pricing demands 
E)  pricing margins 
A)  price fixings 
B)  pricing constraints 
C)  price elasticities 
D)  pricing demands 
E)  pricing margins

Question 3

competitive market circumstances are such that there is almost no price competition,no product differentiation,and the only advertising informs prospects that the product is available,then the competitive market in this industry must be __________.

Accepted Answer

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

Question 4

competitive market situation in which many sellers follow the market price for identical,commodity products is referred to as

Accepted Answer

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

Question 5

Figure 13-7
-Figure 13-7 above shows that to maximize revenue,Newsweek should price its magazine at

Accepted Answer

A)  $2.50. 
B)  $2.00. 
C)  $1.50. 
D)  $1.00. 
E)  $0.50. 
A)  $2.50. 
B)  $2.00. 
C)  $1.50. 
D)  $1.00. 
E)  $0.50.

Question 6

Value-pricing refers to

Accepted Answer

A)  the ratio of perceived benefits to price. 
B)  is the money or other considerations exchanged for the ownership or use of a product or service. 
C)  the practice of simultaneously increasing product and service benefits and maintaining or decreasing price. 
D)  the ratio of price to perceived benefits. 
E)  list price minus incentives and allowances plus extra fees. 
A)  the ratio of perceived benefits to price. 
B)  is the money or other considerations exchanged for the ownership or use of a product or service. 
C)  the practice of simultaneously increasing product and service benefits and maintaining or decreasing price. 
D)  the ratio of price to perceived benefits. 
E)  list price minus incentives and allowances plus extra fees.

Question 7

the process of setting price,a marketer must first identify pricing objectives and constraints.Next,in Step 2,three specific estimates are necessary.What are they?

Accepted Answer

The three key items in Step 2

Question 8

Describe the types of competitive markets and give an example of each one.

Accepted Answer

There are four types of competitive mark

Question 9

oligopoly is a competitive market situation where

Accepted Answer

A)  many sellers follow market price for identical, commodity products. 
B)  one seller sets the price for a unique product. 
C)  few sellers are sensitive to one another's prices. 
D)  many sellers compete on nonprice factors. 
E)  one or few sellers compete solely on nonprice factors. 
A)  many sellers follow market price for identical, commodity products. 
B)  one seller sets the price for a unique product. 
C)  few sellers are sensitive to one another's prices. 
D)  many sellers compete on nonprice factors. 
E)  one or few sellers compete solely on nonprice factors.

Question 10

sum of the expenses of the firm that vary directly with the quantity of the product that is produced and sold is referred to as

Accepted Answer

A)  fixed cost. 
B)  total cost. 
C)  marginal cost. 
D)  unit cost. 
E)  variable cost. 
A)  fixed cost. 
B)  total cost. 
C)  marginal cost. 
D)  unit cost. 
E)  variable cost.

Question 11

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

Question 12

analysis of a prospective product shows that it is expected to grow by at least 10 percent each year over the next 5 years,and then enter the maturity phase of its product life cycle.This type of analysis would provide useful information in which step of the price-setting process?

Accepted Answer

A)  identifying pricing objectives and constraints 
B)  determining cost, volume, and profit relationships 
C)  estimating demand and revenue 
D)  selecting an appropriate (approximate) price lining strategy 
E)  making special adjustments to list or quoted price 
A)  identifying pricing objectives and constraints 
B)  determining cost, volume, and profit relationships 
C)  estimating demand and revenue 
D)  selecting an appropriate (approximate) price lining strategy 
E)  making special adjustments to list or quoted price

Question 13

Marlow,the owner of The Clock Works,wanted to know how many clocks he must sell in order to cover his fixed cost at a given price.Tim knew that he had a fixed cost of $20,000 for equipment,taxes,and a bank loan.He also had a unit variable cost of $20 per clock for labor and materials.If the price Tim charges for each of his clocks is $40,what is his break-even point quantity?

Accepted Answer

A)  100 clocks 
B)  334 clocks 
C)  500 clocks 
D)  1,000 clocks 
E)  10,000 clocks 
A)  100 clocks 
B)  334 clocks 
C)  500 clocks 
D)  1,000 clocks 
E)  10,000 clocks

Question 14

owner of a small restaurant that sells take-out fried chicken and biscuits pays each month $2,500 in rent,$500 in utilities,$750 interest on his loan,insurance premium of $200,and $250 on advertising on local buses.A bucket of take-out chicken is priced at $9.50.Unit variable costs for the bucket of chicken are $5.50.How many small buckets of chicken does the restaurant need to sell to break-even each month?

Accepted Answer

A)  442 buckets 
B)  764 buckets 
C)  1,050 buckets 
D)  3,150 buckets 
E)  4,200 buckets 
A)  442 buckets 
B)  764 buckets 
C)  1,050 buckets 
D)  3,150 buckets 
E)  4,200 buckets

Question 15

years,a local "greasy spoon" diner had customers lining up around the building for breakfast.When the city announced that it was building an off ramp from the highway that would conceivably double his customer traffic,the proprietor was delighted.Having saved enough in previous years,he was certain it could hold him over through the three-month construction.Unfortunately,construction delays continued for an additional six months and the work is still in progress.The best pricing objective at this point for the diner's owner would most likely be __________.

Accepted Answer

A)  profit 
B)  market share 
C)  unit volume 
D)  survival 
E)  social responsibility 
A)  profit 
B)  market share 
C)  unit volume 
D)  survival 
E)  social responsibility

Question 16

marketing director for a(n)__________ is most likely to believe the following statement,"The purpose of advertising is to increase demand for the product class."

Accepted Answer

A)  oligopolist competitor 
B)  monopolistic competitor 
C)  pure competition competitor 
D)  pure monopolist competitor 
E)  competitive oligopolist competitor 
A)  oligopolist competitor 
B)  monopolistic competitor 
C)  pure competition competitor 
D)  pure monopolist competitor 
E)  competitive oligopolist competitor

Question 17

is the difference between a movement along a demand curve and a shift of a demand curve?

Accepted Answer

A movement along a demand curve assumes

Question 18

Figure 13-5B
-Figure 13-5B above,the demand curve shifts from D1 to D2.This most likely represents

Accepted Answer

A)  an increase in demand that did not require a decrease in price. 
B)  an increase in demand that required an increase in price. 
C)  no change in price and no change in demand. 
D)  no change in demand or price but a greater profit due to economies of scale. 
E)  an increase in price from $0.50 to $1.50 per unit. 
A)  an increase in demand that did not require a decrease in price. 
B)  an increase in demand that required an increase in price. 
C)  no change in price and no change in demand. 
D)  no change in demand or price but a greater profit due to economies of scale. 
E)  an increase in price from $0.50 to $1.50 per unit.

Question 19

Price elasticity of demand is determined by a number of factors such as whether the item is a luxury product or service,the availability of substitutes,the cash outlay of purchase relative to a person's disposable income,and

Accepted Answer

A)  the stage of the product or service in its product life cycle. 
B)  the degree of carrying costs for the manufacturer or distributor. 
C)  the financial resources of the organization itself. 
D)  the ability of the organization to meet sudden increases in demand. 
E)  the necessity of the product or service. 
A)  the stage of the product or service in its product life cycle. 
B)  the degree of carrying costs for the manufacturer or distributor. 
C)  the financial resources of the organization itself. 
D)  the ability of the organization to meet sudden increases in demand. 
E)  the necessity of the product or service.

Question 20

Occasionally,prices may rise later in the product's life cycle.This is often due to

Accepted Answer

A)  new competitors entering the market. 
B)  production economies of scale. 
C)  a decrease in the price of raw materials. 
D)  nostalgia and fad factors. 
E)  the type of competitive market shifts from pure monopoly to pure competition. 
A)  new competitors entering the market. 
B)  production economies of scale. 
C)  a decrease in the price of raw materials. 
D)  nostalgia and fad factors. 
E)  the type of competitive market shifts from pure monopoly to pure competition.

maximizing current profit objective implies that a company chooses to

Which term describes factors that limit the range of prices a firm may set?

competitive market circumstances are such that there is almost no price competition,no product differentiation,and the only advertising informs prospects that the product is available,then the competitive market in this industry must be __________.

competitive market situation in which many sellers follow the market price for identical,commodity products is referred to as

Figure 13-7 -Figure 13-7 above shows that to maximize revenue,Newsweek should price its magazine at

Value-pricing refers to

the process of setting price,a marketer must first identify pricing objectives and constraints.Next,in Step 2,three specific estimates are necessary.What are they?

Describe the types of competitive markets and give an example of each one.

oligopoly is a competitive market situation where

sum of the expenses of the firm that vary directly with the quantity of the product that is produced and sold 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 _________,occurs when a firm sets a profit goal,usually determined by its board of directors.

analysis of a prospective product shows that it is expected to grow by at least 10 percent each year over the next 5 years,and then enter the maturity phase of its product life cycle.This type of analysis would provide useful information in which step of the price-setting process?

marketing director for a(n)__________ is most likely to believe the following statement,"The purpose of advertising is to increase demand for the product class."

is the difference between a movement along a demand curve and a shift of a demand curve?

Figure 13-5B -Figure 13-5B above,the demand curve shifts from D₁ to D₂.This most likely represents

Price elasticity of demand is determined by a number of factors such as whether the item is a luxury product or service,the availability of substitutes,the cash outlay of purchase relative to a person's disposable income,and

Occasionally,prices may rise later in the product's life cycle.This is often due to

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

maximizing current profit objective implies that a company chooses to

Which term describes factors that limit the range of prices a firm may set?

competitive market circumstances are such that there is almost no price competition,no product differentiation,and the only advertising informs prospects that the product is available,then the competitive market in this industry must be __________.

competitive market situation in which many sellers follow the market price for identical,commodity products is referred to as

Figure 13-7 -Figure 13-7 above shows that to maximize revenue,Newsweek should price its magazine at

Value-pricing refers to

the process of setting price,a marketer must first identify pricing objectives and constraints.Next,in Step 2,three specific estimates are necessary.What are they?

Describe the types of competitive markets and give an example of each one.

oligopoly is a competitive market situation where

sum of the expenses of the firm that vary directly with the quantity of the product that is produced and sold 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 _________,occurs when a firm sets a profit goal,usually determined by its board of directors.

analysis of a prospective product shows that it is expected to grow by at least 10 percent each year over the next 5 years,and then enter the maturity phase of its product life cycle.This type of analysis would provide useful information in which step of the price-setting process?

marketing director for a(n)__________ is most likely to believe the following statement,"The purpose of advertising is to increase demand for the product class."

is the difference between a movement along a demand curve and a shift of a demand curve?

Figure 13-5B -Figure 13-5B above,the demand curve shifts from D1 to D2.This most likely represents

Price elasticity of demand is determined by a number of factors such as whether the item is a luxury product or service,the availability of substitutes,the cash outlay of purchase relative to a person's disposable income,and

Occasionally,prices may rise later in the product's life cycle.This is often due to

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 13-5B -Figure 13-5B above,the demand curve shifts from D₁ to D₂.This most likely represents