Question 1

Profit margins for marketing channel members must be considered when determining the price of a product.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is true about price competition? ​

Accepted Answer

A) A major advantage of price competition is flexibility. 
B) Price competition allows the marketer to build brand loyalty. 
C) Price wars do not result from price competition. 
D) In price competition, marketers distinguish their brands with unique product features. 
E) In price competition, marketers distinguish their brands with promotion and packaging. 
A) A major advantage of price competition is flexibility. 
B) Price competition allows the marketer to build brand loyalty. 
C) Price wars do not result from price competition. 
D) In price competition, marketers distinguish their brands with unique product features. 
E) In price competition, marketers distinguish their brands with promotion and packaging.

Question 3

Which of the following products is most likely to have an inverted C-shaped demand curve?

Accepted Answer

A) Visit to the Dentist 
B) Eternity perfume 
C) Starbucks coffee 
D) Pillsbury cake mix 
E) Ford Escape 
A) Visit to the Dentist 
B) Eternity perfume 
C) Starbucks coffee 
D) Pillsbury cake mix 
E) Ford Escape

Question 4

What are the terms of F.O.B. pricing?

Accepted Answer

Geographic pricing involves reductions f

Question 5

The point at which marginal revenue equals marginal cost is the breakeven point.

Accepted Answer

A) True 
 B)False

Question 6

Price is considered to be the variable in the marketing mix that is

Accepted Answer

A) Least flexible. 
B) Most flexible. 
C) Most difficult. 
D) First to be decided. 
E) Last to be decided. 
A) Least flexible. 
B) Most flexible. 
C) Most difficult. 
D) First to be decided. 
E) Last to be decided.

Question 7

If a product has an inelastic demand and the manufacturer raises its price,

Accepted Answer

A) total revenue will increase. 
B) quantity demanded will decrease. 
C) the demand schedule will shift. 
D) the demand will become more inelastic. 
E) total revenue will decrease. 
A) total revenue will increase. 
B) quantity demanded will decrease. 
C) the demand schedule will shift. 
D) the demand will become more inelastic. 
E) total revenue will decrease.

Question 8

Customers always interpret a higher price to mean higher quality.

Accepted Answer

A) True 
 B)False

Question 9

Ideally, pricing decisions have little relation to a firm's marketing objectives.

Accepted Answer

A) True 
 B)False

Question 10

Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of a ____ discount.

Accepted Answer

A) quantity 
B) cash 
C) seasonal 
D) trade 
E) complementary 
A) quantity 
B) cash 
C) seasonal 
D) trade 
E) complementary

Question 11

You and a partner have are planning to open a dollar discount store in your hometown. You plan to sell the majority of the items in the store for one dollar unit price. You have seen this concept work well in other cities and you believe the demographics of your hometown are a good fit for this retail concept.Which of the following types of customers are you expecting to frequent your store? ​

Accepted Answer

A) Price-conscious customers 
B) Wholesalers 
C) Other retailers 
D) Prestige-sensitive customers 
E) Value-conscious customers 
A) Price-conscious customers 
B) Wholesalers 
C) Other retailers 
D) Prestige-sensitive customers 
E) Value-conscious customers

Question 12

What are the differences among value-conscious, price-conscious, and prestige-sensitive customers?

Accepted Answer

Buyers can be characterized according to

Question 13

Which of the following statements is true about the factors that affect pricing decisions?​ ​

Accepted Answer

A) In the long-term, a firm may sell products below cost to match competition. 
B) Marketers should set prices that are consistent with the organization's goals and mission. 
C) Pricing decisions should not influence activities associated with the other marketing mix variables. 
D) Price is not linked to elements of the distribution variable of the marketing mix. 
E) Costs should not be an issue when establishing price. 
A) In the long-term, a firm may sell products below cost to match competition. 
B) Marketers should set prices that are consistent with the organization's goals and mission. 
C) Pricing decisions should not influence activities associated with the other marketing mix variables. 
D) Price is not linked to elements of the distribution variable of the marketing mix. 
E) Costs should not be an issue when establishing price.

Question 14

Suppose that the frozen foods division of Swanson purchases food trays and boxes from the packaging division. The form of pricing used to charge the frozen foods division is called

Accepted Answer

A) zone pricing. 
B) base-point pricing. 
C) business-unit pricing. 
D) transfer pricing. 
E) price discrimination. 
A) zone pricing. 
B) base-point pricing. 
C) business-unit pricing. 
D) transfer pricing. 
E) price discrimination.

Question 15

In conducting an assessment of her accounting firm, Paige discovers the following annual results: average charge per customer = $250; rent = $12,000; total billings = $150,000; employee compensation and benefits = $60,000; and other costs = $110,000. Given these results, Paige's profits would equal

Accepted Answer

A) a loss of $20,000. 
B) a loss of $32,000. 
C) $28,000. 
D) $40,000. 
E) $222,000. 
A) a loss of $20,000. 
B) a loss of $32,000. 
C) $28,000. 
D) $40,000. 
E) $222,000.

Question 16

When marketers emphasize price as an issue and match or beat the prices of other companies, they are using

Accepted Answer

A) price competition. 
B) nonprice competition. 
C) comparative pricing strategies. 
D) demand-based pricing. 
E) supply-based pricing. 
A) price competition. 
B) nonprice competition. 
C) comparative pricing strategies. 
D) demand-based pricing. 
E) supply-based pricing.

Question 17

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 is considering the problem of actual distance in delivering its product from the plant in Germany to some of its customers in China. Which pricing strategy would help overcome this problem?

Accepted Answer

A) Geographic 
B) Transfer 
C) Commercial 
D) Transit 
E) Factory 
A) Geographic 
B) Transfer 
C) Commercial 
D) Transit 
E) Factory

Question 18

A deduction from list price for purchasing large quantities aggregated over a stated period of time is a

Accepted Answer

A) noncumulative quantity discount. 
B) additive cash discount. 
C) cumulative quantity discount. 
D) cumulative discount allowance. 
E) additive quantity reduction. 
A) noncumulative quantity discount. 
B) additive cash discount. 
C) cumulative quantity discount. 
D) cumulative discount allowance. 
E) additive quantity reduction.

Question 19

Marketers have no flexibility in setting prices under conditions of

Accepted Answer

A) a monopoly. 
B) an oligopoly. 
C) perfect competition. 
D) monopolistic competition. 
E) no competition. 
A) a monopoly. 
B) an oligopoly. 
C) perfect competition. 
D) monopolistic competition. 
E) no competition.

Question 20

​Which of the following statements is true about marginal analysis? ​

Accepted Answer

A) Fixed costs vary with changes in the number of units sold. 
B) Total cost is the sum of average fixed costs and average variable costs times the quantity produced. 
C) Average variable cost equals variable cost times number of units sold. 
D) Average fixed cost increases as the number of units produced increases. 
E) Marginal cost equals fixed costs minus variable costs. 
A) Fixed costs vary with changes in the number of units sold. 
B) Total cost is the sum of average fixed costs and average variable costs times the quantity produced. 
C) Average variable cost equals variable cost times number of units sold. 
D) Average fixed cost increases as the number of units produced increases. 
E) Marginal cost equals fixed costs minus variable costs.

Profit margins for marketing channel members must be considered when determining the price of a product.

Which of the following is true about price competition?

Which of the following products is most likely to have an inverted C-shaped demand curve?

What are the terms of F.O.B. pricing?

The point at which marginal revenue equals marginal cost is the breakeven point.

Price is considered to be the variable in the marketing mix that is

If a product has an inelastic demand and the manufacturer raises its price,

Customers always interpret a higher price to mean higher quality.

Ideally, pricing decisions have little relation to a firm's marketing objectives.

Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of a ____ discount.

What are the differences among value-conscious, price-conscious, and prestige-sensitive customers?

Which of the following statements is true about the factors that affect pricing decisions?

Suppose that the frozen foods division of Swanson purchases food trays and boxes from the packaging division. The form of pricing used to charge the frozen foods division is called

In conducting an assessment of her accounting firm, Paige discovers the following annual results: average charge per customer = $250; rent = $12,000; total billings = $150,000; employee compensation and benefits = $60,000; and other costs = $110,000. Given these results, Paige's profits would equal

When marketers emphasize price as an issue and match or beat the prices of other companies, they are using

A deduction from list price for purchasing large quantities aggregated over a stated period of time is a

Marketers have no flexibility in setting prices under conditions of

Which of the following statements is true about marginal analysis?

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

Profit margins for marketing channel members must be considered when determining the price of a product.

Which of the following is true about price competition? ​

Which of the following products is most likely to have an inverted C-shaped demand curve?

What are the terms of F.O.B. pricing?

The point at which marginal revenue equals marginal cost is the breakeven point.

Price is considered to be the variable in the marketing mix that is

If a product has an inelastic demand and the manufacturer raises its price,

Customers always interpret a higher price to mean higher quality.

Ideally, pricing decisions have little relation to a firm's marketing objectives.

Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of a ____ discount.

What are the differences among value-conscious, price-conscious, and prestige-sensitive customers?

Which of the following statements is true about the factors that affect pricing decisions?​ ​

Suppose that the frozen foods division of Swanson purchases food trays and boxes from the packaging division. The form of pricing used to charge the frozen foods division is called

In conducting an assessment of her accounting firm, Paige discovers the following annual results: average charge per customer = $250; rent = $12,000; total billings = $150,000; employee compensation and benefits = $60,000; and other costs = $110,000. Given these results, Paige's profits would equal

When marketers emphasize price as an issue and match or beat the prices of other companies, they are using

A deduction from list price for purchasing large quantities aggregated over a stated period of time is a

Marketers have no flexibility in setting prices under conditions of

​Which of the following statements is true about marginal analysis? ​

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 price competition?

Which of the following statements is true about the factors that affect pricing decisions?

Which of the following statements is true about marginal analysis?