Question 1

What do all of the following have in common: tuition, fee, premium, retainer, dues?

Accepted Answer

A) They are all usually paid in cash. 
B) They are forms of exchange similar to, but not identical with, money. 
C) They are forms of exchange similar to, but not identical with, barter. 
D) They are different terms for the concept of price. 
E) They have nothing in common. 
A) They are all usually paid in cash. 
B) They are forms of exchange similar to, but not identical with, money. 
C) They are forms of exchange similar to, but not identical with, barter. 
D) They are different terms for the concept of price. 
E) They have nothing in common.

Question 2

Barter is the oldest form of exchange.

Accepted Answer

A) True 
 B)False

Question 3

Nonprice competition allows a company to increase its brand's unit sales through means other than changing the brand's price.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements about nonprice competition is false?

Accepted Answer

A) Companies that use nonprice competition do not need to keep track of their competitor's prices. 
B) A company must be able to distinguish its brand through some unique feature in order to successfully engage in nonprice competition. 
C) A firm using nonprice competition can build loyalty to both its company and its products. 
D) When using nonprice competition, a company should promote the distinguishing characteristics of its brand. 
E) Buyers must view the distinguishing characteristics of a product offered through nonprice competition as being important. 
A) Companies that use nonprice competition do not need to keep track of their competitor's prices. 
B) A company must be able to distinguish its brand through some unique feature in order to successfully engage in nonprice competition. 
C) A firm using nonprice competition can build loyalty to both its company and its products. 
D) When using nonprice competition, a company should promote the distinguishing characteristics of its brand. 
E) Buyers must view the distinguishing characteristics of a product offered through nonprice competition as being important.

Question 5

Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's

Accepted Answer

A) average revenue. 
B) marginal revenue. 
C) price elasticity. 
D) average variable revenue. 
E) average total cost. 
A) average revenue. 
B) marginal revenue. 
C) price elasticity. 
D) average variable revenue. 
E) average total cost.

Question 6

Which of the following is not a discount provided to business customers?

Accepted Answer

A) Trade 
B) Cumulative 
C) Cash 
D) Seasonal 
E) Differentiated 
A) Trade 
B) Cumulative 
C) Cash 
D) Seasonal 
E) Differentiated

Question 7

When Cadillac buys headlights from Delco (both of which are divisions of General Motors), ____ pricing occurs.

Accepted Answer

A) base-point 
B) zone 
C) transfer 
D) uniform geographic 
E) matrix 
A) base-point 
B) zone 
C) transfer 
D) uniform geographic 
E) matrix

Question 8

Buyers who focus on purchasing products that signify prominence and status are

Accepted Answer

A) value-conscious consumers. 
B) price-conscious consumers. 
C) socially elite buyers. 
D) prestige-sensitive buyers. 
E) brand aware consumers. 
A) value-conscious consumers. 
B) price-conscious consumers. 
C) socially elite buyers. 
D) prestige-sensitive buyers. 
E) brand aware consumers.

Question 9

A firm that competes on a price basis is unable to change prices frequently.

Accepted Answer

A) True 
 B)False

Question 10

Pricing decisions can be based on determining whether the demand for a product is price elastic or price inelastic.

Accepted Answer

A) True 
 B)False

Question 11

Electricity is an example of a product that is price elastic.

Accepted Answer

A) True 
 B)False

Question 12

Identify and describe the major types of discounts used for business markets. Then explain the reasons for using each type.

Accepted Answer

​The major types of discounts include: t

Question 13

What a price means or what it communicates to customers is called

Accepted Answer

A) reference. 
B) response. 
C) interpretation. 
D) internalization. 
E) signaling. 
A) reference. 
B) response. 
C) interpretation. 
D) internalization. 
E) signaling.

Question 14

Price is

Accepted Answer

A) money paid in a transaction. 
B) not important to buyers. 
C) of limited interest to sellers. 
D) the most inflexible marketing mix decision variable. 
E) the value that is exchanged for products in a marketing transaction. 
A) money paid in a transaction. 
B) not important to buyers. 
C) of limited interest to sellers. 
D) the most inflexible marketing mix decision variable. 
E) the value that is exchanged for products in a marketing transaction.

Question 15

For most consumers, there is an assumed relationship between

Accepted Answer

A) price and quality. 
B) value and cost. 
C) internal and external reference prices. 
D) value and price consciousness. 
E) prestige prices and value. 
A) price and quality. 
B) value and cost. 
C) internal and external reference prices. 
D) value and price consciousness. 
E) prestige prices and value.

Question 16

What equation shows organizations the relationship between price and profit?

Accepted Answer

A) Total Variable Costs + Total Fixed Costs = Sales − Profit 
B) Price = Profit per Item × Number of Units Sold 
C) (Price × Quantity Sold) − Total Costs = Profits 
D) (Price − Profits) × Total Costs = Sales 
E) Total Costs = (Price × Quantity Sold) − Profits 
A) Total Variable Costs + Total Fixed Costs = Sales − Profit 
B) Price = Profit per Item × Number of Units Sold 
C) (Price × Quantity Sold) − Total Costs = Profits 
D) (Price − Profits) × Total Costs = Sales 
E) Total Costs = (Price × Quantity Sold) − Profits

Question 17

Price should be defined in terms of money only.

Accepted Answer

A) True 
 B)False

Question 18

The ____ prohibits price fixing among firms in an industry.

Accepted Answer

A) Sherman Antitrust Act 
B) Federal Trade Commission Act 
C) Wheeler-Lea Act 
D) Robinson-Patman Act 
E) Clayton Act 
A) Sherman Antitrust Act 
B) Federal Trade Commission Act 
C) Wheeler-Lea Act 
D) Robinson-Patman Act 
E) Clayton Act

Question 19

Isabella is a product manager for The Container Store, a retailer of plastic bins and other storage containers. Sales have been declining in the past nine months and her management team is pressuring her to compete based on price discounts. However, Isabella is aware of the dangers associated with engaging in price competition. She knows that competitors can also change prices quickly and aggressively, which can result in a(n) ____ that will be harmful to both companies.

Accepted Answer

A) reduction in cost 
B) price war 
C) competitive game 
D) industry collapse 
E) advertising battle 
A) reduction in cost 
B) price war 
C) competitive game 
D) industry collapse 
E) advertising battle

Question 20

Reductions for transportation and other costs related to the physical distance between buyer and seller are known as

Accepted Answer

A) base-point pricing. 
B) freight absorption pricing. 
C) price zoning. 
D) location pricing. 
E) geographic pricing. 
A) base-point pricing. 
B) freight absorption pricing. 
C) price zoning. 
D) location pricing. 
E) geographic pricing.

What do all of the following have in common: tuition, fee, premium, retainer, dues?

Barter is the oldest form of exchange.

Nonprice competition allows a company to increase its brand's unit sales through means other than changing the brand's price.

Which of the following statements about nonprice competition is false?

Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's

Which of the following is not a discount provided to business customers?

When Cadillac buys headlights from Delco (both of which are divisions of General Motors), ____ pricing occurs.

Buyers who focus on purchasing products that signify prominence and status are

A firm that competes on a price basis is unable to change prices frequently.

Pricing decisions can be based on determining whether the demand for a product is price elastic or price inelastic.

Electricity is an example of a product that is price elastic.

Identify and describe the major types of discounts used for business markets. Then explain the reasons for using each type.

What a price means or what it communicates to customers is called

Price is

For most consumers, there is an assumed relationship between

What equation shows organizations the relationship between price and profit?

Price should be defined in terms of money only.

The ____ prohibits price fixing among firms in an industry.

Reductions for transportation and other costs related to the physical distance between buyer and seller are known as

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

What do all of the following have in common: tuition, fee, premium, retainer, dues?

Barter is the oldest form of exchange.

Nonprice competition allows a company to increase its brand's unit sales through means other than changing the brand's price.

Which of the following statements about nonprice competition is false?

Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's

Which of the following is not a discount provided to business customers?

When Cadillac buys headlights from Delco (both of which are divisions of General Motors), ____ pricing occurs.

Buyers who focus on purchasing products that signify prominence and status are

A firm that competes on a price basis is unable to change prices frequently.

Pricing decisions can be based on determining whether the demand for a product is price elastic or price inelastic.

Electricity is an example of a product that is price elastic.

Identify and describe the major types of discounts used for business markets. Then explain the reasons for using each type.

What a price means or what it communicates to customers is called

Price is

For most consumers, there is an assumed relationship between

What equation shows organizations the relationship between price and profit?

Price should be defined in terms of money only.

The ____ prohibits price fixing among firms in an industry.

Reductions for transportation and other costs related to the physical distance between buyer and seller are known as

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