Question 1

Channel member expectations play no part in a firm's pricing decisions.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) The breakeven point can only be stated in terms of sales revenue. 
B) At the breakeven point, the firm's fixed costs are greater than its variable costs. 
C) At the breakeven point, the firm's fixed costs are less than its variable costs. 
D) At the breakeven point, the firm's sales price per unit equals its variable cost per unit. 
E) At the breakeven point, the firm's sales revenue equals the sum of its fixed and variable costs. 
A) The breakeven point can only be stated in terms of sales revenue. 
B) At the breakeven point, the firm's fixed costs are greater than its variable costs. 
C) At the breakeven point, the firm's fixed costs are less than its variable costs. 
D) At the breakeven point, the firm's sales price per unit equals its variable cost per unit. 
E) At the breakeven point, the firm's sales revenue equals the sum of its fixed and variable costs.

Question 3

If Seagram's marketers found that the firm's Crown Royal bourbon was a prestige product and raised its price, which of the following would most likely happen?

Accepted Answer

A) The quantity demanded would immediately fall. 
B) The quantity demanded would always increase. 
C) Above some price level, the quantity demanded would begin to decrease. 
D) The demand curve for the product would always shift to the right. 
E) The demand curve for the product would always shift to the left. 
A) The quantity demanded would immediately fall. 
B) The quantity demanded would always increase. 
C) Above some price level, the quantity demanded would begin to decrease. 
D) The demand curve for the product would always shift to the right. 
E) The demand curve for the product would always shift to the left.

Question 4

You are reading the quarterly financial report of one of your competitors. You expected to see their total sales revenue decline because they had a large price increase during the quarter. You were certain that the price increase would lead to an equivalently large decrease in their total sales revenue. To your surprise, their total sales revenue actually increased in the quarter.Based on this information, which of the following explanations could explain why the competitor's total sales revenue increased? ​

Accepted Answer

A) The demand for the company's products is inelastic, so total revenue declines when prices are raised. 
B) The demand for the company's products is elastic, so total revenue declines when prices are raised. 
C) The demand for the company's products is elastic, so unit sales increase when prices are raised. 
D) The demand for the company's products is inelastic, so total sales revenue increases when prices are raised. 
E) The demand for the company's products is elastic, so fixed costs increase when prices are raised. 
A) The demand for the company's products is inelastic, so total revenue declines when prices are raised. 
B) The demand for the company's products is elastic, so total revenue declines when prices are raised. 
C) The demand for the company's products is elastic, so unit sales increase when prices are raised. 
D) The demand for the company's products is inelastic, so total sales revenue increases when prices are raised. 
E) The demand for the company's products is elastic, so fixed costs increase when prices are raised.

Question 5

If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur

Accepted Answer

A) more fixed costs. 
B) higher average fixed costs. 
C) fewer variable costs. 
D) a marginal cost. 
E) higher average variable costs. 
A) more fixed costs. 
B) higher average fixed costs. 
C) fewer variable costs. 
D) a marginal cost. 
E) higher average variable costs.

Question 6

Factors affecting pricing decisions can include demand, distribution, and the way in which the product is promoted.

Accepted Answer

A) True 
 B)False

Question 7

Price is a major component of the profit equation.

Accepted Answer

A) True 
 B)False

Question 8

The more experience the customer has with a product, the more he or she relies on external reference prices.

Accepted Answer

A) True 
 B)False

Question 9

For most firms in the United States, demand curves are

Accepted Answer

A) upward sloping. 
B) completely horizontal. 
C) completely vertical. 
D) c-shaped. 
E) downward sloping. 
A) upward sloping. 
B) completely horizontal. 
C) completely vertical. 
D) c-shaped. 
E) downward sloping.

Question 10

For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded.

Accepted Answer

A) inelastic 
B) inverse 
C) positive 
D) unknown 
E) elastic 
A) inelastic 
B) inverse 
C) positive 
D) unknown 
E) elastic

Question 11

Knowing the number of units necessary to break even is important in setting the price.

Accepted Answer

A) True 
 B)False

Question 12

Scenario 19.1 Use the following to answer the questions.Concession Supply sells hotdogs, buns, and nacho ingredients to several major league ballparks across the country. Currently, Concession Supply has the following pricing information for one case of hotdogs sold at Wrigley Field: Total fixed costs = $1,200, Selling price = $16, and Variable costs = $6.
-Refer to Scenario 19.1. What is the breakeven point in dollar sales volume?

Accepted Answer

A) $1,200 
B) $1,440 
C) $3,000 
D) $1,920 
E) $1,600 
A) $1,200 
B) $1,440 
C) $3,000 
D) $1,920 
E) $1,600

Question 13

Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing

Accepted Answer

A) product competition. 
B) nonprice competition. 
C) brand differentiation. 
D) price competition. 
E) competitor differentiation. 
A) product competition. 
B) nonprice competition. 
C) brand differentiation. 
D) price competition. 
E) competitor differentiation.

Question 14

Which factor is least likely to affect pricing decisions?

Accepted Answer

A) Competitive prices 
B) Legal and regulatory issues 
C) Organizational and marketing objectives 
D) Customers' interpretation and response 
E) Shifting stock values 
A) Competitive prices 
B) Legal and regulatory issues 
C) Organizational and marketing objectives 
D) Customers' interpretation and response 
E) Shifting stock values

Question 15

If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering 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 16

Which of the following is true about price? ​

Accepted Answer

A) Price has no psychological impact on customers. 
B) Price always takes the form of money paid. 
C) Price relates directly to variable costs. 
D) Marketers do not use price symbolically. 
E) It is the only marketing mix variable that can be changed quickly to respond to shifts in demand. 
A) Price has no psychological impact on customers. 
B) Price always takes the form of money paid. 
C) Price relates directly to variable costs. 
D) Marketers do not use price symbolically. 
E) It is the only marketing mix variable that can be changed quickly to respond to shifts in demand.

Question 17

Vanessa is shopping for a new pair of athletic shoes. Since she is concerned about both the price and the quality aspects of a product, Vanessa is most likely a ___ consumer.

Accepted Answer

A) Price-conscious 
B) Prestige-sensitive 
C) Value-conscious 
D) Price-conscious and prestige-sensitive 
E) Quality-conscious 
A) Price-conscious 
B) Prestige-sensitive 
C) Value-conscious 
D) Price-conscious and prestige-sensitive 
E) Quality-conscious

Question 18

ACE Electronics introduces a new voice-activated personal computer that no longer requires a keyboard. ACE charges the high price of $11,000 per unit, thus generating large profits because it has a 20 percent market share. ACE's major problem in the future will most likely be

Accepted Answer

A) survival. 
B) cash flow. 
C) competition. 
D) return on investment. 
E) profit. 
A) survival. 
B) cash flow. 
C) competition. 
D) return on investment. 
E) profit.

Question 19

Dividing the percentage change in quantity demanded by the percentage change in price gives the

Accepted Answer

A) prestige demand curve. 
B) breakeven point. 
C) marginal cost curve. 
D) price sensitivity curve. 
E) price elasticity of demand. 
A) prestige demand curve. 
B) breakeven point. 
C) marginal cost curve. 
D) price sensitivity curve. 
E) price elasticity of demand.

Question 20

Pricing decisions should be based on the marketer's previous marketing strategies for other successful products and on intuition.

Accepted Answer

A) True 
 B)False

Channel member expectations play no part in a firm's pricing decisions.

Which of the following statements is true about breakeven analysis?

If Seagram's marketers found that the firm's Crown Royal bourbon was a prestige product and raised its price, which of the following would most likely happen?

If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur

Factors affecting pricing decisions can include demand, distribution, and the way in which the product is promoted.

Price is a major component of the profit equation.

The more experience the customer has with a product, the more he or she relies on external reference prices.

For most firms in the United States, demand curves are

For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded.

Knowing the number of units necessary to break even is important in setting the price.

Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing

Which factor is least likely to affect pricing decisions?

If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ____ discount.

Which of the following is true about price?

Vanessa is shopping for a new pair of athletic shoes. Since she is concerned about both the price and the quality aspects of a product, Vanessa is most likely a ___ consumer.

ACE Electronics introduces a new voice-activated personal computer that no longer requires a keyboard. ACE charges the high price of $11,000 per unit, thus generating large profits because it has a 20 percent market share. ACE's major problem in the future will most likely be

Dividing the percentage change in quantity demanded by the percentage change in price gives the

Pricing decisions should be based on the marketer's previous marketing strategies for other successful products and on intuition.

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

Channel member expectations play no part in a firm's pricing decisions.

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

If Seagram's marketers found that the firm's Crown Royal bourbon was a prestige product and raised its price, which of the following would most likely happen?

If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur

Factors affecting pricing decisions can include demand, distribution, and the way in which the product is promoted.

Price is a major component of the profit equation.

The more experience the customer has with a product, the more he or she relies on external reference prices.

For most firms in the United States, demand curves are

For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded.

Knowing the number of units necessary to break even is important in setting the price.

Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing

Which factor is least likely to affect pricing decisions?

If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ____ discount.

Which of the following is true about price? ​

Vanessa is shopping for a new pair of athletic shoes. Since she is concerned about both the price and the quality aspects of a product, Vanessa is most likely a ___ consumer.

ACE Electronics introduces a new voice-activated personal computer that no longer requires a keyboard. ACE charges the high price of $11,000 per unit, thus generating large profits because it has a 20 percent market share. ACE's major problem in the future will most likely be

Dividing the percentage change in quantity demanded by the percentage change in price gives the

Pricing decisions should be based on the marketer's previous marketing strategies for other successful products and on intuition.

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 statements is true about breakeven analysis?

Which of the following is true about price?