Question 1

Firms that adopt volume objectives believe that:

Accepted Answer

A) companies should focus on maximizing profits rather than maximizing sales. 
B) companies should continue to expand sales as long as their total profits do not drop below a specified minimum return. 
C) companies should focus on the image and prestige associated with their products. 
D) companies should offer huge discounts even at the cost of running into losses with their products. 
A) companies should focus on maximizing profits rather than maximizing sales. 
B) companies should continue to expand sales as long as their total profits do not drop below a specified minimum return. 
C) companies should focus on the image and prestige associated with their products. 
D) companies should offer huge discounts even at the cost of running into losses with their products.

Question 2

The Anti-A&P Act was inspired by price competition triggered by the rise of grocery store chains.

Accepted Answer

A) True 
 B)False

Question 3

A price is the exchange value of a good or service.

Accepted Answer

A) True 
 B)False

Question 4

You own an enchanting Victorian bed-and-breakfast facility in Ashland,Oregon,home of the annual Oregon Shakespeare Festival.The symbol for your in-season rates is $$$$,when the Bard's plays are being enacted on the stages.In season,you have a two-night minimum-stay requirement.When the festival season has ended,however,you have trouble filling your rooms. ​
​Using the tool of yield management,what action will you take to maximize profits?

Accepted Answer

A) ​close down your facility during the off season to minimize expenses 
B) connect with other hotel/motel owners and set a minimum rental limit​ 
C) ​lower your rates to $$ and remove the minimum-stay requirement 
D) ​keep your rates and minimum stay the same and increase advertising 
E) ​consider the off season as vacation time to renew your energy 
A) ​close down your facility during the off season to minimize expenses 
B) connect with other hotel/motel owners and set a minimum rental limit​ 
C) ​lower your rates to $$ and remove the minimum-stay requirement 
D) ​keep your rates and minimum stay the same and increase advertising 
E) ​consider the off season as vacation time to renew your energy

Question 5

The price elasticity of supply of a product is the percentage change in the quantity of a good or service supplied divided by the percentage change in its price.

Accepted Answer

A) True 
 B)False

Question 6

Disney Cruise Line offers exceptional experiences for their guests and a variety of destinations around the world.They attempt to price their offerings competitively and profitability by varying the listed price of accommodations on a cruise such that different weeks of the year may be less expensive than others.For example,during hurricane season for Atlantic Ocean cruises,prices will be lower than peak times such as Christmas and New Years cruises.Which pricing-related strategy is Disney Cruise Line utilizing?​

Accepted Answer

A) ​yield management 
B) ​demand forecasting 
C) ​supply analysis 
D) ​modified breakeven analysis 
A) ​yield management 
B) ​demand forecasting 
C) ​supply analysis 
D) ​modified breakeven analysis

Question 7

A demand is said to be inelastic when the:

Accepted Answer

A) demand curve and the supply curve do not intersect. 
B) total cost and total revenue are equal at all levels of demand. 
C) elasticity of demand is less than 1. 
D) elasticity of demand is greater than 1. 
A) demand curve and the supply curve do not intersect. 
B) total cost and total revenue are equal at all levels of demand. 
C) elasticity of demand is less than 1. 
D) elasticity of demand is greater than 1.

Question 8

Which of the following is TRUE regarding the concept of elasticity in pricing strategy?​

Accepted Answer

A) ​If the elasticity of demand is greater than 1.0, that demand is said to be elastic 
B) ​If the elasticity of supply is greater than 1.0, that demand is said to be inelastic 
C) ​If the elasticity of demand is less than 1.0, that demand is said to be elastic 
D) ​If the elasticity of supply equals 1.0, that demand is said to be elastic 
A) ​If the elasticity of demand is greater than 1.0, that demand is said to be elastic 
B) ​If the elasticity of supply is greater than 1.0, that demand is said to be inelastic 
C) ​If the elasticity of demand is less than 1.0, that demand is said to be elastic 
D) ​If the elasticity of supply equals 1.0, that demand is said to be elastic

Question 9

The economic theory assumes that firms behave rationally which in turn results in an effort to maximize gains and minimize losses.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following pricing objectives reflects marketers' recognition of the role of price in creating an overall image of the firm and its product offerings?

Accepted Answer

A) A profitability objective 
B) A volume objective 
C) A meeting competition objective 
D) A prestige objective 
A) A profitability objective 
B) A volume objective 
C) A meeting competition objective 
D) A prestige objective

Question 11

The exchange value of a good or service defines its:

Accepted Answer

A) quality. 
B) price. 
C) durability. 
D) production cost. 
A) quality. 
B) price. 
C) durability. 
D) production cost.

Question 12

Explain target-return objectives.

Accepted Answer

Short-run or long-run pricing objectives

Question 13

Which of the following terms represents the measure of responsiveness of purchasers and suppliers to a change in price?

Accepted Answer

A) Selectivity 
B) Captivity 
C) Elasticity 
D) Sensitivity 
A) Selectivity 
B) Captivity 
C) Elasticity 
D) Sensitivity

Question 14

The basic breakeven model addresses the question of whether customers will actually purchase the product at the specified price in the quantity required to break even or make a profit.

Accepted Answer

A) True 
 B)False

Question 15

A pricing strategy that allows marketers to vary prices based on such factors as demand,even though the cost of providing those goods or services remains the same is called​

Accepted Answer

A) ​yield management 
B) ​break-even point 
C) ​supply analysis 
D) ​cost-plus pricing 
A) ​yield management 
B) ​break-even point 
C) ​supply analysis 
D) ​cost-plus pricing

Question 16

Paul and Amanda have 6 season tickets to the St.Louis Cardinals - a major league baseball team.During the season,they often offer their unused tickets to the highest bidder - especially when the Cardinals play the Chicago Cubs.This practice,known as "scalping" is illegal in all US cities.​

Accepted Answer

A) True 
 B)False

Question 17

​You begin every work day by stopping by the local premium coffee shop for a latte.They recognize you when you come in and just hand you your regular order.Recently,a number of events happened at the same time: you got a promotion with a higher salary; your regular coffee shop increased its prices; and a competitor moved into the same shopping center,offering lower prices. ​
Required:
During your vacation,you have the luxury of time to reflect on your workday pattern of coffee consumption.Looked at from a marketing perspective,which action could you choose to show that your demand is more elastic?

Accepted Answer

A) ​spending some of your higher income after the promotion 
B) ​demonstrating that you are a loyal customer of your current coffee shop 
C) ​asking for a good-customer discount from your regular place 
D) ​discovering that you enjoy the taste of the competitor's coffee 
E) ​returning to the comfort of your established routine 
A) ​spending some of your higher income after the promotion 
B) ​demonstrating that you are a loyal customer of your current coffee shop 
C) ​asking for a good-customer discount from your regular place 
D) ​discovering that you enjoy the taste of the competitor's coffee 
E) ​returning to the comfort of your established routine

Question 18

Most states supplement federal legislation with their own unfair-trade laws,which require sellers to maintain minimum prices for comparable merchandise.

Accepted Answer

A) True 
 B)False

Question 19

Pricing objectives that seek sales maximization or achievement of a stated market share are examples of _____ objectives.

Accepted Answer

A) profitability 
B) volume 
C) meeting competition 
D) prestige 
A) profitability 
B) volume 
C) meeting competition 
D) prestige

Question 20

Which of the following is true of price determination in economic theory?

Accepted Answer

A) It suggests a way of determining prices that assumes a sales-maximization objective. 
B) It attempts to derive correct equilibrium prices in the marketplace by comparing supply and demand. 
C) It attempts to maximize the market share of an organization. 
D) It suggests a way of determining prices that assumes a market-share expansion objective. 
A) It suggests a way of determining prices that assumes a sales-maximization objective. 
B) It attempts to derive correct equilibrium prices in the marketplace by comparing supply and demand. 
C) It attempts to maximize the market share of an organization. 
D) It suggests a way of determining prices that assumes a market-share expansion objective.

Firms that adopt volume objectives believe that:

The Anti-A&P Act was inspired by price competition triggered by the rise of grocery store chains.

A price is the exchange value of a good or service.

The price elasticity of supply of a product is the percentage change in the quantity of a good or service supplied divided by the percentage change in its price.

A demand is said to be inelastic when the:

Which of the following is TRUE regarding the concept of elasticity in pricing strategy?

The economic theory assumes that firms behave rationally which in turn results in an effort to maximize gains and minimize losses.

Which of the following pricing objectives reflects marketers' recognition of the role of price in creating an overall image of the firm and its product offerings?

The exchange value of a good or service defines its:

Explain target-return objectives.

Which of the following terms represents the measure of responsiveness of purchasers and suppliers to a change in price?

The basic breakeven model addresses the question of whether customers will actually purchase the product at the specified price in the quantity required to break even or make a profit.

A pricing strategy that allows marketers to vary prices based on such factors as demand,even though the cost of providing those goods or services remains the same is called

Paul and Amanda have 6 season tickets to the St.Louis Cardinals - a major league baseball team.During the season,they often offer their unused tickets to the highest bidder - especially when the Cardinals play the Chicago Cubs.This practice,known as "scalping" is illegal in all US cities.

Most states supplement federal legislation with their own unfair-trade laws,which require sellers to maintain minimum prices for comparable merchandise.

Pricing objectives that seek sales maximization or achievement of a stated market share are examples of _____ objectives.

Which of the following is true of price determination in economic theory?

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

Firms that adopt volume objectives believe that:

The Anti-A&P Act was inspired by price competition triggered by the rise of grocery store chains.

A price is the exchange value of a good or service.

The price elasticity of supply of a product is the percentage change in the quantity of a good or service supplied divided by the percentage change in its price.

A demand is said to be inelastic when the:

Which of the following is TRUE regarding the concept of elasticity in pricing strategy?​

The economic theory assumes that firms behave rationally which in turn results in an effort to maximize gains and minimize losses.

Which of the following pricing objectives reflects marketers' recognition of the role of price in creating an overall image of the firm and its product offerings?

The exchange value of a good or service defines its:

Explain target-return objectives.

Which of the following terms represents the measure of responsiveness of purchasers and suppliers to a change in price?

The basic breakeven model addresses the question of whether customers will actually purchase the product at the specified price in the quantity required to break even or make a profit.

A pricing strategy that allows marketers to vary prices based on such factors as demand,even though the cost of providing those goods or services remains the same is called​

Paul and Amanda have 6 season tickets to the St.Louis Cardinals - a major league baseball team.During the season,they often offer their unused tickets to the highest bidder - especially when the Cardinals play the Chicago Cubs.This practice,known as "scalping" is illegal in all US cities.​

Most states supplement federal legislation with their own unfair-trade laws,which require sellers to maintain minimum prices for comparable merchandise.

Pricing objectives that seek sales maximization or achievement of a stated market share are examples of _____ objectives.

Which of the following is true of price determination in economic theory?

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

Which of the following is TRUE regarding the concept of elasticity in pricing strategy?

A pricing strategy that allows marketers to vary prices based on such factors as demand,even though the cost of providing those goods or services remains the same is called

Paul and Amanda have 6 season tickets to the St.Louis Cardinals - a major league baseball team.During the season,they often offer their unused tickets to the highest bidder - especially when the Cardinals play the Chicago Cubs.This practice,known as "scalping" is illegal in all US cities.