Question 1

What are reference prices and how do customers use them? What is the difference between internal and external reference prices?

Accepted Answer

​Reference pricing means pricing a produ

Question 2

If Carnival Cruise Lines increased the price of its seven-day cruise package by 10 percent and, as a result, experienced a 20 percent decline in customer bookings, Carnival's demand would be

Accepted Answer

A) steady. 
B) inelastic. 
C) elastic. 
D) prestige. 
E) marginal. 
A) steady. 
B) inelastic. 
C) elastic. 
D) prestige. 
E) marginal.

Question 3

If demand is elastic, a change in price causes a parallel change in total revenue.

Accepted Answer

A) True 
 B)False

Question 4

The firm should produce the quantity at which marginal revenue and marginal cost are equal.

Accepted Answer

A) True 
 B)False

Question 5

How would pricing decisions differ for a business in an oligopolistic market structure as opposed to a monopolistic market structure?

Accepted Answer

When adjusting prices, a marketer must a

Question 6

Price is the most easily adjusted ingredient in the marketing mix.

Accepted Answer

A) True 
 B)False

Question 7

Marketing mix variables are highly interrelated.

Accepted Answer

A) True 
 B)False

Question 8

The owner of Big Bike Motorcycles is opening a new retail location. Which of the following is most likely to be a fixed cost for Big Bike Motorcycles?

Accepted Answer

A) Retail personnel salaries 
B) Advertising on Facebook 
C) Building Rent 
D) Electricity 
E) Transportation of sold bikes 
A) Retail personnel salaries 
B) Advertising on Facebook 
C) Building Rent 
D) Electricity 
E) Transportation of sold bikes

Question 9

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. If BASF were to employ pricing that includes the price at the factory plus freight charges from a chosen point nearest the buyer, this would be an example of ____ pricing.

Accepted Answer

A) factory plus 
B) dispersion 
C) base-point 
D) freight absorption 
E) uniform geographic 
A) factory plus 
B) dispersion 
C) base-point 
D) freight absorption 
E) uniform geographic

Question 10

Changes in buyers' attitudes, other components of the marketing mix, and uncontrollable environmental factors can influence demand.

Accepted Answer

A) True 
 B)False

Question 11

Abby is marketing consultant who specializes in small businesses. Her current client is very interested in estimating the costs for the coming year, in order to find the breakeven point. Abby knows this is an important financial statistic because below the breakeven point, the firm is operating

Accepted Answer

A) with fixed costs only. 
B) with minimal variable costs. 
C) with no revenue. 
D) with minimal profit. 
E) at a loss. 
A) with fixed costs only. 
B) with minimal variable costs. 
C) with no revenue. 
D) with minimal profit. 
E) at a loss.

Question 12

Organizational goals have little to do with pricing decisions.

Accepted Answer

A) True 
 B)False

Question 13

To maintain market share and revenue in an increasingly price-sensitive market, companies have focused on quality, used labor-saving technologies, and used efficient manufacturing processes. These tactics have provided gains in productivity that have translated into ____ for the consumer.

Accepted Answer

A) higher costs for the company and higher prices 
B) higher costs for the company and lower prices 
C) lower costs for the company and lower prices 
D) lower costs for the company and higher prices 
E) no change in the costs for either the company or 
A) higher costs for the company and higher prices 
B) higher costs for the company and lower prices 
C) lower costs for the company and lower prices 
D) lower costs for the company and higher prices 
E) no change in the costs for either the company or

Question 14

Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Caterpillar is producing at the ____ point.

Accepted Answer

A) breakeven 
B) marginal revenue less than marginal cost 
C) profit margin 
D) competitive price 
E) profit maximizing 
A) breakeven 
B) marginal revenue less than marginal cost 
C) profit margin 
D) competitive price 
E) profit maximizing

Question 15

To gain market share, when Hyundai first entered the U.S. car market it did so with a comparatively low pricing strategy. One of the negative side effects of making this pricing decision is

Accepted Answer

A) a negative impact on consumers' perceptions of quality. 
B) difficulty raising the prices later. 
C) a high return on investment level affecting tax balances owed. 
D) poor survival chances. 
E) higher developmental costs. 
A) a negative impact on consumers' perceptions of quality. 
B) difficulty raising the prices later. 
C) a high return on investment level affecting tax balances owed. 
D) poor survival chances. 
E) higher developmental costs.

Question 16

To determine the breakeven point in units, divide the fixed costs by

Accepted Answer

A) total costs. 
B) variable costs time price. 
C) price minus variable costs. 
D) price per unit. 
E) total revenue minus fixed costs. 
A) total costs. 
B) variable costs time price. 
C) price minus variable costs. 
D) price per unit. 
E) total revenue minus fixed costs.

Question 17

Markum Industries determines that for its air compressors the following results are achieved at a price of $250: total costs = $250,000; variable costs per unit = $100; fixed costs = $175,000. Given these figures, Markum would break even at ____ units.

Accepted Answer

A) 1,167 
B) 1,000 
C) 1,750 
D) 2,500 
E) 700 
A) 1,167 
B) 1,000 
C) 1,750 
D) 2,500 
E) 700

Question 18

Fixed costs vary with the number of units produced or sold.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is most likely to have an inelastic demand curve?

Accepted Answer

A) Automobile 
B) Vacation 
C) Nonelective surgery 
D) Recreational vehicle 
E) Computer 
A) Automobile 
B) Vacation 
C) Nonelective surgery 
D) Recreational vehicle 
E) Computer

Question 20

A graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a

Accepted Answer

A) price graph. 
B) supply curve. 
C) price/quantity graph. 
D) marginal revenue curve. 
E) demand curve. 
A) price graph. 
B) supply curve. 
C) price/quantity graph. 
D) marginal revenue curve. 
E) demand curve.

What are reference prices and how do customers use them? What is the difference between internal and external reference prices?

If Carnival Cruise Lines increased the price of its seven-day cruise package by 10 percent and, as a result, experienced a 20 percent decline in customer bookings, Carnival's demand would be

If demand is elastic, a change in price causes a parallel change in total revenue.

The firm should produce the quantity at which marginal revenue and marginal cost are equal.

How would pricing decisions differ for a business in an oligopolistic market structure as opposed to a monopolistic market structure?

Price is the most easily adjusted ingredient in the marketing mix.

Marketing mix variables are highly interrelated.

The owner of Big Bike Motorcycles is opening a new retail location. Which of the following is most likely to be a fixed cost for Big Bike Motorcycles?

Changes in buyers' attitudes, other components of the marketing mix, and uncontrollable environmental factors can influence demand.

Abby is marketing consultant who specializes in small businesses. Her current client is very interested in estimating the costs for the coming year, in order to find the breakeven point. Abby knows this is an important financial statistic because below the breakeven point, the firm is operating

Organizational goals have little to do with pricing decisions.

To maintain market share and revenue in an increasingly price-sensitive market, companies have focused on quality, used labor-saving technologies, and used efficient manufacturing processes. These tactics have provided gains in productivity that have translated into ____ for the consumer.

Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Caterpillar is producing at the ____ point.

To gain market share, when Hyundai first entered the U.S. car market it did so with a comparatively low pricing strategy. One of the negative side effects of making this pricing decision is

To determine the breakeven point in units, divide the fixed costs by

Markum Industries determines that for its air compressors the following results are achieved at a price of $250: total costs = $250,000; variable costs per unit = $100; fixed costs = $175,000. Given these figures, Markum would break even at ____ units.

Fixed costs vary with the number of units produced or sold.

Which of the following is most likely to have an inelastic demand curve?

A graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a

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 are reference prices and how do customers use them? What is the difference between internal and external reference prices?

If Carnival Cruise Lines increased the price of its seven-day cruise package by 10 percent and, as a result, experienced a 20 percent decline in customer bookings, Carnival's demand would be

If demand is elastic, a change in price causes a parallel change in total revenue.

The firm should produce the quantity at which marginal revenue and marginal cost are equal.

How would pricing decisions differ for a business in an oligopolistic market structure as opposed to a monopolistic market structure?

Price is the most easily adjusted ingredient in the marketing mix.

Marketing mix variables are highly interrelated.

The owner of Big Bike Motorcycles is opening a new retail location. Which of the following is most likely to be a fixed cost for Big Bike Motorcycles?

Changes in buyers' attitudes, other components of the marketing mix, and uncontrollable environmental factors can influence demand.

Abby is marketing consultant who specializes in small businesses. Her current client is very interested in estimating the costs for the coming year, in order to find the breakeven point. Abby knows this is an important financial statistic because below the breakeven point, the firm is operating

Organizational goals have little to do with pricing decisions.

To maintain market share and revenue in an increasingly price-sensitive market, companies have focused on quality, used labor-saving technologies, and used efficient manufacturing processes. These tactics have provided gains in productivity that have translated into ____ for the consumer.

Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Caterpillar is producing at the ____ point.

To gain market share, when Hyundai first entered the U.S. car market it did so with a comparatively low pricing strategy. One of the negative side effects of making this pricing decision is

To determine the breakeven point in units, divide the fixed costs by

Markum Industries determines that for its air compressors the following results are achieved at a price of $250: total costs = $250,000; variable costs per unit = $100; fixed costs = $175,000. Given these figures, Markum would break even at ____ units.

Fixed costs vary with the number of units produced or sold.

Which of the following is most likely to have an inelastic demand curve?

A graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a

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