Question 1

Modern accounting procedures provide managers with a clear understanding of cost structures,so managers can readily comprehend the supply side of the pricing equation.

Accepted Answer

A) True 
 B)False

Question 2

Basic so-called fighting brands are intended to capture market share from lower-priced competitors by offering relatively high quality products at comparatively higher prices.

Accepted Answer

A) True 
 B)False

Question 3

Companies that adopt a volume objective continue to expand sales even when their total profits drop below the minimum return acceptable to management.

Accepted Answer

A) True 
 B)False

Question 4

Match each item with the correct statement below.
-A market structure characterized by homogeneous products in which there are so many buyers and sellers that none has a significant influence on price is known as _____.

Accepted Answer

A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition 
A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition

Question 5

When the elasticity of demand or supply is greater than 1.0,that demand or supply is said to be:

Accepted Answer

A) elastic. 
B) stagnant. 
C) marginal. 
D) inelastic. 
A) elastic. 
B) stagnant. 
C) marginal. 
D) inelastic.

Question 6

Match each item with the correct statement below.
-Statutes enacted in most states that once permitted manufacturers to stipulate a minimum retail price for their product are called _____.

Accepted Answer

A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition 
A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition

Question 7

The demand side of the pricing equation focuses on:

Accepted Answer

A) revenue curves. 
B) cost curves. 
C) price curves. 
D) value curves. 
A) revenue curves. 
B) cost curves. 
C) price curves. 
D) value curves.

Question 8

When most of a firm's costs are variable over a wide range of outputs,the primary determinant of profitability will be the revenue generated by sales.

Accepted Answer

A) True 
 B)False

Question 9

Analysis has shown that ingredients account for less than 5 percent of a perfume's cost.So if a perfume costs $135 or more per ounce,it reflects the marketer's adoption of a pricing objective that focuses on:

Accepted Answer

A) expanding market share. 
B) creating image or prestige. 
C) meeting competitors' prices. 
D) maximizing sales. 
A) expanding market share. 
B) creating image or prestige. 
C) meeting competitors' prices. 
D) maximizing sales.

Question 10

Explain market-share objectives.

Accepted Answer

Volume-related pricing objective with th

Question 11

Match each item with the correct statement below.
-Short-run or long-run pricing objectives of achieving a specified return on either sales or investment are called _____.

Accepted Answer

A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition 
A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition

Question 12

Pricing objectives that focus on attaining a target return on investment are examples of _____ objectives.

Accepted Answer

A) profitability 
B) volume 
C) not-for-profit 
D) prestige 
A) profitability 
B) volume 
C) not-for-profit 
D) prestige

Question 13

A shortcoming of the breakeven model is that it assumes that per-unit variable costs change at different levels of operation.

Accepted Answer

A) True 
 B)False

Question 14

Prestige pricing objectives emphasize:

Accepted Answer

A) quality and exclusivity. 
B) revenue maximization. 
C) cost minimization. 
D) sales maximization. 
A) quality and exclusivity. 
B) revenue maximization. 
C) cost minimization. 
D) sales maximization.

Question 15

A cost that changes with the level of production is called a(n)_____ cost.

Accepted Answer

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

Question 16

A major assumption of the economic theory is that,firms will focus on:

Accepted Answer

A) minimizing the inventory turnover ratio. 
B) maximizing gains and minimizing losses. 
C) providing a minimum return on investment. 
D) using selective distribution strategies rather than intensive distribution strategies. 
A) minimizing the inventory turnover ratio. 
B) maximizing gains and minimizing losses. 
C) providing a minimum return on investment. 
D) using selective distribution strategies rather than intensive distribution strategies.

Question 17

One of the advantages of the full-cost pricing approach is that it takes into consideration the competition and demand that exists for a product.

Accepted Answer

A) True 
 B)False

Question 18

As the marketing and sales manager,you are in charge of setting the selling prices of prize-winning music boxes with changeable songs.After you explained two cost-plus approaches to price setting,the CEO chose the straightforward approach of full-cost pricing.The next day,you received an unexpected order for 10,000 units from a Swiss contact with a tight deadline. ​
Required:
​What information do you need immediately to arrive at a selling price that you can justify to the CEO?

Accepted Answer

A) ​value of resources consumed in the production of the music boxes 
B) ​overhead expenses, profit margin, and direct cost per music box 
C) ​fixed costs of production, variable costs, and revenue 
D) ​manufacturing capacity and customer's price point of willingness to pay 
E) ​acceptable loss-leader pricing, prescribed rate of return, and financing 
A) ​value of resources consumed in the production of the music boxes 
B) ​overhead expenses, profit margin, and direct cost per music box 
C) ​fixed costs of production, variable costs, and revenue 
D) ​manufacturing capacity and customer's price point of willingness to pay 
E) ​acceptable loss-leader pricing, prescribed rate of return, and financing

Question 19

What are the major weaknesses of traditional breakeven analysis?

Accepted Answer

The major weaknesses of traditional brea

Question 20

Match each item with the correct statement below.
-The point at which the additional revenue gained by increasing the price of a product equals the increase in total costs is called _____.

Accepted Answer

A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition 
A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition

Modern accounting procedures provide managers with a clear understanding of cost structures,so managers can readily comprehend the supply side of the pricing equation.

Basic so-called fighting brands are intended to capture market share from lower-priced competitors by offering relatively high quality products at comparatively higher prices.

Companies that adopt a volume objective continue to expand sales even when their total profits drop below the minimum return acceptable to management.

Match each item with the correct statement below. -A market structure characterized by homogeneous products in which there are so many buyers and sellers that none has a significant influence on price is known as _____.

When the elasticity of demand or supply is greater than 1.0,that demand or supply is said to be:

Match each item with the correct statement below. -Statutes enacted in most states that once permitted manufacturers to stipulate a minimum retail price for their product are called _____.

The demand side of the pricing equation focuses on:

When most of a firm's costs are variable over a wide range of outputs,the primary determinant of profitability will be the revenue generated by sales.

Analysis has shown that ingredients account for less than 5 percent of a perfume's cost.So if a perfume costs $135 or more per ounce,it reflects the marketer's adoption of a pricing objective that focuses on:

Explain market-share objectives.

Match each item with the correct statement below. -Short-run or long-run pricing objectives of achieving a specified return on either sales or investment are called _____.

Pricing objectives that focus on attaining a target return on investment are examples of _____ objectives.

A shortcoming of the breakeven model is that it assumes that per-unit variable costs change at different levels of operation.

Prestige pricing objectives emphasize:

A cost that changes with the level of production is called a(n)_____ cost.

A major assumption of the economic theory is that,firms will focus on:

One of the advantages of the full-cost pricing approach is that it takes into consideration the competition and demand that exists for a product.

What are the major weaknesses of traditional breakeven analysis?

Match each item with the correct statement below. -The point at which the additional revenue gained by increasing the price of a product equals the increase in total costs is called _____.

Marketing: the Art and Science of Satisfying Customers

Strategic Planning in Contemporary Marketing

The Marketing Environment, ethics, and Social Responsibility

Social Media: Living in the Connected World

E-Business: Managing the Customer Experience

Consumer Behavior

Business-To-Business B2bmarketing

Global Marketing

Market Segmentation, targeting, and Positioning

Marketing Research in the Era of Big Data

Relationship Marketing and Customer Relationship Management Crm

Product and Service Strategies

Developing and Managing Brand and Product Categories

Marketing Channels and Supply Chain Management

Retailers, wholesalers, and Direct Marketers

Integrated Marketing Communications, advertising, and Public Relations

Personal Selling and Sales Promotion

Pricing Strategies

Developing an Effective Marketing Plan

Financial Analysis in Marketing

Filters

Exam 18: Pricing Concepts

Modern accounting procedures provide managers with a clear understanding of cost structures,so managers can readily comprehend the supply side of the pricing equation.

Basic so-called fighting brands are intended to capture market share from lower-priced competitors by offering relatively high quality products at comparatively higher prices.

Companies that adopt a volume objective continue to expand sales even when their total profits drop below the minimum return acceptable to management.

Match each item with the correct statement below. -A market structure characterized by homogeneous products in which there are so many buyers and sellers that none has a significant influence on price is known as _____.

When the elasticity of demand or supply is greater than 1.0,that demand or supply is said to be:

Match each item with the correct statement below. -Statutes enacted in most states that once permitted manufacturers to stipulate a minimum retail price for their product are called _____.

The demand side of the pricing equation focuses on:

When most of a firm's costs are variable over a wide range of outputs,the primary determinant of profitability will be the revenue generated by sales.

Analysis has shown that ingredients account for less than 5 percent of a perfume's cost.So if a perfume costs $135 or more per ounce,it reflects the marketer's adoption of a pricing objective that focuses on:

Explain market-share objectives.

Match each item with the correct statement below. -Short-run or long-run pricing objectives of achieving a specified return on either sales or investment are called _____.

Pricing objectives that focus on attaining a target return on investment are examples of _____ objectives.

A shortcoming of the breakeven model is that it assumes that per-unit variable costs change at different levels of operation.

Prestige pricing objectives emphasize:

A cost that changes with the level of production is called a(n)_____ cost.

A major assumption of the economic theory is that,firms will focus on:

One of the advantages of the full-cost pricing approach is that it takes into consideration the competition and demand that exists for a product.

What are the major weaknesses of traditional breakeven analysis?

Match each item with the correct statement below. -The point at which the additional revenue gained by increasing the price of a product equals the increase in total costs is called _____.

Marketing: the Art and Science of Satisfying Customers

Strategic Planning in Contemporary Marketing

The Marketing Environment, ethics, and Social Responsibility

Social Media: Living in the Connected World

E-Business: Managing the Customer Experience

Consumer Behavior

Business-To-Business B2bmarketing

Global Marketing

Market Segmentation, targeting, and Positioning

Marketing Research in the Era of Big Data

Relationship Marketing and Customer Relationship Management Crm

Product and Service Strategies

Developing and Managing Brand and Product Categories

Marketing Channels and Supply Chain Management

Retailers, wholesalers, and Direct Marketers

Integrated Marketing Communications, advertising, and Public Relations

Personal Selling and Sales Promotion

Pricing Strategies

Developing an Effective Marketing Plan

Financial Analysis in Marketing

Filters