Question 1

Costs are a major issue when establishing price.

Accepted Answer

A) True 
 B)False  True

Question 2

If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage, it is committing

Accepted Answer

A) price discrimination. 
B) price-consciousness. 
C) functional discounting. 
D) price competition. 
E) price fixing. 
A) price discrimination. 
B) price-consciousness. 
C) functional discounting. 
D) price competition. 
E) price fixing. A

Question 3

Jared is developing a business plan for a new type of bicycle helmet. He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product. Jared is interested in finding the

Accepted Answer

A) elasticity of demand. 
B) breakeven point. 
C) variable costs. 
D) price elasticity. 
E) the sum of fixed costs. 
A) elasticity of demand. 
B) breakeven point. 
C) variable costs. 
D) price elasticity. 
E) the sum of fixed costs. B

Question 4

Scenario 19.2 Use the following to answer the questions.The BASF Chemical Company in Germany has developed a new rubberized coating. The product has an application for cell phones and other hand-held electronic devices that gives them protection from falls and scratches. BASF plans to market the product directly to businesses that manufacture the casings for these types of products. BASF currently uses a system of salespeople headquartered in Germany, while its primary business customers are in China.
-Refer to Scenario 19.2. BASF has decided to offer discounts to its businesses customers in the form of the following: For each order of $100,000 or more during the next 90 days, the buyer will receive a rebate of 5 percent. This type of pricing would be an example of ____ discounts.

Accepted Answer

A) allowance 
B) cash 
C) seasonal 
D) noncumulative 
E) cumulative 
A) allowance 
B) cash 
C) seasonal 
D) noncumulative 
E) cumulative

Question 5

When marketers at Consolidated Mustard Company tried to determine demand for their product, they found that at 50 cents, consumers wanted 2,000 jars; at $1.00, they wanted 6,000 jars; and at $1.50, they wanted 4,000 jars. What can Consolidated conclude?

Accepted Answer

A) Consolidated did poor market demand research. 
B) Consolidated has an elastic product. 
C) Consolidated has an inelastic product. 
D) Consolidated mustard is a prestige good. 
E) Consolidated mustard has a normal demand curve. 
A) Consolidated did poor market demand research. 
B) Consolidated has an elastic product. 
C) Consolidated has an inelastic product. 
D) Consolidated mustard is a prestige good. 
E) Consolidated mustard has a normal demand curve.

Question 6

Pricing whereby the buyer absorbs all or part of the freight costs is freight absorption pricing.

Accepted Answer

A) True 
 B)False

Question 7

At the breakeven point,

Accepted Answer

A) the money a company brings in from selling products equals the amount spent producing the products. 
B) the total fixed costs are exactly equal to the total variable costs. 
C) profits are exactly equal to the difference between revenue and total variable costs. 
D) the marginal revenue of a product is exactly equal to the marginal cost of producing one more unit. 
E) the marginal cost curve and the average cost curve will be identical for a particular product. 
A) the money a company brings in from selling products equals the amount spent producing the products. 
B) the total fixed costs are exactly equal to the total variable costs. 
C) profits are exactly equal to the difference between revenue and total variable costs. 
D) the marginal revenue of a product is exactly equal to the marginal cost of producing one more unit. 
E) the marginal cost curve and the average cost curve will be identical for a particular product.

Question 8

Lucy buys a new dress at T.J. Maxx that has a price tag with "Compare at $150.00. Our Price $89.99." This is an example of the use of

Accepted Answer

A) internal referencing. 
B) cumulative discounts. 
C) seasonal discounts. 
D) base-point pricing. 
E) an external reference price. 
A) internal referencing. 
B) cumulative discounts. 
C) seasonal discounts. 
D) base-point pricing. 
E) an external reference price.

Question 9

What type of discount is given to a business purchaser for performing activities such as transporting, storing, and selling?

Accepted Answer

A) Quantity 
B) Cash 
C) Geographic 
D) Service 
E) Trade 
A) Quantity 
B) Cash 
C) Geographic 
D) Service 
E) Trade

Question 10

Total costs are influenced by quantities sold.

Accepted Answer

A) True 
 B)False

Question 11

Suppose Tommy Hilfiger is introducing a new line of men's ties. The designer believes that the target market for these ties comprises men who are very status-conscious. In keeping with this assessment, department stores selling the ties should

Accepted Answer

A) charge a price based on their cost. 
B) charge prices consistent with their existing ties. 
C) discount the ties. 
D) negotiate the price with individual tie shoppers. 
E) use price symbolically. 
A) charge a price based on their cost. 
B) charge prices consistent with their existing ties. 
C) discount the ties. 
D) negotiate the price with individual tie shoppers. 
E) use price symbolically.

Question 12

If Pacific Power and Light increased its rates by 10 percent and experienced a 2 percent reduction in the demand for power, the demand would be

Accepted Answer

A) elastic. 
B) minimal. 
C) minor elasticity. 
D) variable. 
E) inelastic. 
A) elastic. 
B) minimal. 
C) minor elasticity. 
D) variable. 
E) inelastic.

Question 13

A company trying to position itself as value oriented should not

Accepted Answer

A) set prices that are reasonable relative to product quality. 
B) use premium pricing for its products. 
C) set prices similar to those of its competitors. 
D) use any advertising for its products. 
E) consider costs when determining the price of products. 
A) set prices that are reasonable relative to product quality. 
B) use premium pricing for its products. 
C) set prices similar to those of its competitors. 
D) use any advertising for its products. 
E) consider costs when determining the price of products.

Question 14

If the terms of a business exchange are 2/10 net 30, this means that the transaction

Accepted Answer

A) involves a cumulative discount if paid in 30 days. 
B) involves a noncumulative discount. 
C) offers a discount if the buyer lives within a ten-mile radius. 
D) price does not include the cost of freight. 
E) involves a cash discount if paid within ten days. 
A) involves a cumulative discount if paid in 30 days. 
B) involves a noncumulative discount. 
C) offers a discount if the buyer lives within a ten-mile radius. 
D) price does not include the cost of freight. 
E) involves a cash discount if paid within ten days.

Question 15

Which of the following is true about non-price competition? ​

Accepted Answer

A) A major advantage of non-price competition is flexibility. 
B) Non-price competition does not allow the marketer to build brand loyalty. 
C) Price wars may result from non-price competition. 
D) In non-price competition, marketers distinguish their brands with unique product features. 
E) In non-price competition, marketers do not use promotion. 
A) A major advantage of non-price competition is flexibility. 
B) Non-price competition does not allow the marketer to build brand loyalty. 
C) Price wars may result from non-price competition. 
D) In non-price competition, marketers distinguish their brands with unique product features. 
E) In non-price competition, marketers do not use promotion.

Question 16

If a company increased its price from $100 to $120 and the quantity demanded fell by 40 percent, the price elasticity of demand for this product is

Accepted Answer

A) 2. 
B) 1/2. 
C) −1/2. 
D) −2. 
E) 4. 
A) 2. 
B) 1/2. 
C) −1/2. 
D) −2. 
E) 4.

Question 17

The amount of profit a channel member expects depends on

Accepted Answer

A) the amount of discounts for large orders provided by the producers. 
B) the number of channel support activities provided by the producers. 
C) what the intermediary could earn if it were handling a competing product instead. 
D) the type of distribution channels involved. 
E) the amount of effort required to carry the product. 
A) the amount of discounts for large orders provided by the producers. 
B) the number of channel support activities provided by the producers. 
C) what the intermediary could earn if it were handling a competing product instead. 
D) the type of distribution channels involved. 
E) the amount of effort required to carry the product.

Question 18

Marketers generally view ____ as the minimum price a product can be sold for.

Accepted Answer

A) fixed costs 
B) variable costs 
C) profits 
D) costs 
E) moderate losses 
A) fixed costs 
B) variable costs 
C) profits 
D) costs 
E) moderate losses

Question 19

If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85, then

Accepted Answer

A) its marginal costs are falling. 
B) average total cost is at its maximum. 
C) average total costs are rising. 
D) demand is elastic. 
E) average total cost is at its lowest level. 
A) its marginal costs are falling. 
B) average total cost is at its maximum. 
C) average total costs are rising. 
D) demand is elastic. 
E) average total cost is at its lowest level.

Question 20

____________ are reductions off the list price given by a producer to an intermediary for performing certain functions.

Accepted Answer

A) Trade discounts 
B) Quantity discounts 
C) Cumulative discounts 
D) Non-cumulative discounts 
E) Cash discounts 
A) Trade discounts 
B) Quantity discounts 
C) Cumulative discounts 
D) Non-cumulative discounts 
E) Cash discounts

Costs are a major issue when establishing price.

If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage, it is committing

Jared is developing a business plan for a new type of bicycle helmet. He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product. Jared is interested in finding the

When marketers at Consolidated Mustard Company tried to determine demand for their product, they found that at 50 cents, consumers wanted 2,000 jars; at $1.00, they wanted 6,000 jars; and at $1.50, they wanted 4,000 jars. What can Consolidated conclude?

Pricing whereby the buyer absorbs all or part of the freight costs is freight absorption pricing.

At the breakeven point,

Lucy buys a new dress at T.J. Maxx that has a price tag with "Compare at $150.00. Our Price $89.99." This is an example of the use of

What type of discount is given to a business purchaser for performing activities such as transporting, storing, and selling?

Total costs are influenced by quantities sold.

Suppose Tommy Hilfiger is introducing a new line of men's ties. The designer believes that the target market for these ties comprises men who are very status-conscious. In keeping with this assessment, department stores selling the ties should

If Pacific Power and Light increased its rates by 10 percent and experienced a 2 percent reduction in the demand for power, the demand would be

A company trying to position itself as value oriented should not

If the terms of a business exchange are 2/10 net 30, this means that the transaction

Which of the following is true about non-price competition?

If a company increased its price from $100 to $120 and the quantity demanded fell by 40 percent, the price elasticity of demand for this product is

The amount of profit a channel member expects depends on

Marketers generally view ____ as the minimum price a product can be sold for.

If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85, then

____________ are reductions off the list price given by a producer to an intermediary for performing certain functions.

An Overview of Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

Marketing Research and Information Systems

Target Markets Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product Concepts, Branding and Packaging

Developing and Managing Products

Services Marketing

Marketing Channels and Supply-Chain Management

Retailing, Direct Marketing and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Setting Prices

Filters

Exam 19: Pricing Concepts

Costs are a major issue when establishing price.

If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage, it is committing

Jared is developing a business plan for a new type of bicycle helmet. He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product. Jared is interested in finding the

When marketers at Consolidated Mustard Company tried to determine demand for their product, they found that at 50 cents, consumers wanted 2,000 jars; at $1.00, they wanted 6,000 jars; and at $1.50, they wanted 4,000 jars. What can Consolidated conclude?

Pricing whereby the buyer absorbs all or part of the freight costs is freight absorption pricing.

At the breakeven point,

Lucy buys a new dress at T.J. Maxx that has a price tag with "Compare at $150.00. Our Price $89.99." This is an example of the use of

What type of discount is given to a business purchaser for performing activities such as transporting, storing, and selling?

Total costs are influenced by quantities sold.

Suppose Tommy Hilfiger is introducing a new line of men's ties. The designer believes that the target market for these ties comprises men who are very status-conscious. In keeping with this assessment, department stores selling the ties should

If Pacific Power and Light increased its rates by 10 percent and experienced a 2 percent reduction in the demand for power, the demand would be

A company trying to position itself as value oriented should not

If the terms of a business exchange are 2/10 net 30, this means that the transaction

Which of the following is true about non-price competition? ​

If a company increased its price from $100 to $120 and the quantity demanded fell by 40 percent, the price elasticity of demand for this product is

The amount of profit a channel member expects depends on

Marketers generally view ____ as the minimum price a product can be sold for.

If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85, then

____________ are reductions off the list price given by a producer to an intermediary for performing certain functions.

An Overview of Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

Marketing Research and Information Systems

Target Markets Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product Concepts, Branding and Packaging

Developing and Managing Products

Services Marketing

Marketing Channels and Supply-Chain Management

Retailing, Direct Marketing and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Setting Prices

Filters

Which of the following is true about non-price competition?