Question 1

Which of the following products is most likely to involve personal selling?

Accepted Answer

A) Blenders at a department store 
B) Riding lawn mowers 
C) Kindle Fire 
D) Picture frames at a hobby supply store 
E) Footballs at a sporting goods store 
A) Blenders at a department store 
B) Riding lawn mowers 
C) Kindle Fire 
D) Picture frames at a hobby supply store 
E) Footballs at a sporting goods store

Question 2

Profits for a firm are computed as follows: Profits = Total Revenue - Fixed Costs.

Accepted Answer

A) True 
 B)False

Question 3

Safe Auto advertises its automobile insurance as "minimum coverage for minimum budgets." Safe Auto is engaging in

Accepted Answer

A) non-price competition. 
B) demand-based pricing. 
C) competitive pricing. 
D) price differentiation. 
E) price competition. 
A) non-price competition. 
B) demand-based pricing. 
C) competitive pricing. 
D) price differentiation. 
E) price competition.

Question 4

Compare and contrast price and nonprice competition. Give examples of firms that compete on a price basis and on a nonprice basis.

Accepted Answer

When engaging in price competition, a ma

Question 5

Transfer pricing involves the sale of a product to another unit within the same organization.

Accepted Answer

A) True 
 B)False

Question 6

Identify and describe the major factors that affect pricing decisions.

Accepted Answer

Establishing prices involves selecting a

Question 7

If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges, the retailer is paying a(n) ____ price.

Accepted Answer

A) F.O.B. destination 
B) F.O.B. factory 
C) transfer 
D) postage-stamp 
E) base-point 
A) F.O.B. destination 
B) F.O.B. factory 
C) transfer 
D) postage-stamp 
E) base-point

Question 8

A firm can survive in the long run only if its products are sold below cost.

Accepted Answer

A) True 
 B)False

Question 9

​Marginal analysis involves examining

Accepted Answer

A) what happens to a firm's costs and revenues when production is changed by one unit. 
B) what happens to a firm's revenues when one more product is sold. 
C) what happens to a firm's costs when one more unit is produced. 
D) the difference between marginal revenue and total revenue. 
E) the difference between marginal cost and total cost. 
A) what happens to a firm's costs and revenues when production is changed by one unit. 
B) what happens to a firm's revenues when one more product is sold. 
C) what happens to a firm's costs when one more unit is produced. 
D) the difference between marginal revenue and total revenue. 
E) the difference between marginal cost and total cost.

Question 10

When marginal cost is equal to marginal revenue, the firm should

Accepted Answer

A) produce more to increase profits. 
B) produce less to decrease total costs. 
C) stop producing additional units to maximize profits. 
D) provide discounts to encourage purchases. 
E) intensify distribution to increase sales. 
A) produce more to increase profits. 
B) produce less to decrease total costs. 
C) stop producing additional units to maximize profits. 
D) provide discounts to encourage purchases. 
E) intensify distribution to increase sales.

Question 11

The legality of uniform geographic pricing has been challenged, and so its use has been abandoned.

Accepted Answer

A) True 
 B)False

Question 12

Provisions of the Robinson-Patman Act, as well as those of the ____, limit the use of price differentials.

Accepted Answer

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

Question 13

Logan is reading the online report of the tuition and fees he owes for this semester of college. Since he has signed up for online banking, he pays the amount immediately. The amount Logan just paid is considered to be

Accepted Answer

A) his expenses. 
B) his charges. 
C) his bill. 
D) the price. 
E) the exchange valuations. 
A) his expenses. 
B) his charges. 
C) his bill. 
D) the price. 
E) the exchange valuations.

Question 14

With prestige products, a firm will always be able to sell more at a higher price.

Accepted Answer

A) True 
 B)False

Question 15

Roberts Electronics calculates that if it produces 15 radar detectors, its costs are $1,500, and if it produces 16 radar detectors, its costs are $1,590. In this instance, $90 is the firm's ____ cost.

Accepted Answer

A) average 
B) fixed 
C) variable 
D) marginal 
E) average variable 
A) average 
B) fixed 
C) variable 
D) marginal 
E) average variable

Question 16

A product under nonprice competition would most likely not succeed in the market if

Accepted Answer

A) a new advertising campaign is established for it. 
B) it is easy to duplicate. 
C) it is packaged differently from similar products. 
D) it is priced near the competitors' price. 
E) its quality has been upgraded. 
A) a new advertising campaign is established for it. 
B) it is easy to duplicate. 
C) it is packaged differently from similar products. 
D) it is priced near the competitors' price. 
E) its quality has been upgraded.

Question 17

Price is a crucial marketing mix component.

Accepted Answer

A) True 
 B)False

Question 18

A measure of sensitivity of demand in relation to changes in price is

Accepted Answer

A) a demand curve. 
B) a prestige graph. 
C) marginal analysis. 
D) price elasticity of demand. 
E) quantity elasticity. 
A) a demand curve. 
B) a prestige graph. 
C) marginal analysis. 
D) price elasticity of demand. 
E) quantity elasticity.

Question 19

If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the

Accepted Answer

A) quantity demanded goes down. 
B) demand remains constant. 
C) quantity demanded increases. 
D) demand increases. 
E) breakeven increases. 
A) quantity demanded goes down. 
B) demand remains constant. 
C) quantity demanded increases. 
D) demand increases. 
E) breakeven increases.

Question 20

When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on

Accepted Answer

A) internal reference prices. 
B) symbol prices. 
C) high value products. 
D) discounted reference prices. 
E) external reference prices. 
A) internal reference prices. 
B) symbol prices. 
C) high value products. 
D) discounted reference prices. 
E) external reference prices.

Which of the following products is most likely to involve personal selling?

Profits for a firm are computed as follows: Profits = Total Revenue - Fixed Costs.

Safe Auto advertises its automobile insurance as "minimum coverage for minimum budgets." Safe Auto is engaging in

Compare and contrast price and nonprice competition. Give examples of firms that compete on a price basis and on a nonprice basis.

Transfer pricing involves the sale of a product to another unit within the same organization.

Identify and describe the major factors that affect pricing decisions.

If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges, the retailer is paying a(n) ____ price.

A firm can survive in the long run only if its products are sold below cost.

Marginal analysis involves examining

When marginal cost is equal to marginal revenue, the firm should

The legality of uniform geographic pricing has been challenged, and so its use has been abandoned.

Provisions of the Robinson-Patman Act, as well as those of the ____, limit the use of price differentials.

Logan is reading the online report of the tuition and fees he owes for this semester of college. Since he has signed up for online banking, he pays the amount immediately. The amount Logan just paid is considered to be

With prestige products, a firm will always be able to sell more at a higher price.

Roberts Electronics calculates that if it produces 15 radar detectors, its costs are $1,500, and if it produces 16 radar detectors, its costs are $1,590. In this instance, $90 is the firm's ____ cost.

A product under nonprice competition would most likely not succeed in the market if

Price is a crucial marketing mix component.

A measure of sensitivity of demand in relation to changes in price is

If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the

When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on

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

Which of the following products is most likely to involve personal selling?

Profits for a firm are computed as follows: Profits = Total Revenue - Fixed Costs.

Safe Auto advertises its automobile insurance as "minimum coverage for minimum budgets." Safe Auto is engaging in

Compare and contrast price and nonprice competition. Give examples of firms that compete on a price basis and on a nonprice basis.

Transfer pricing involves the sale of a product to another unit within the same organization.

Identify and describe the major factors that affect pricing decisions.

If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges, the retailer is paying a(n) ____ price.

A firm can survive in the long run only if its products are sold below cost.

​Marginal analysis involves examining

When marginal cost is equal to marginal revenue, the firm should

The legality of uniform geographic pricing has been challenged, and so its use has been abandoned.

Provisions of the Robinson-Patman Act, as well as those of the ____, limit the use of price differentials.

Logan is reading the online report of the tuition and fees he owes for this semester of college. Since he has signed up for online banking, he pays the amount immediately. The amount Logan just paid is considered to be

With prestige products, a firm will always be able to sell more at a higher price.

Roberts Electronics calculates that if it produces 15 radar detectors, its costs are $1,500, and if it produces 16 radar detectors, its costs are $1,590. In this instance, $90 is the firm's ____ cost.

A product under nonprice competition would most likely not succeed in the market if

Price is a crucial marketing mix component.

A measure of sensitivity of demand in relation to changes in price is

If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the

When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on

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

Marginal analysis involves examining