Question 1

The practice of exchanging products and services for other products and services rather than for money is referred to as __________.

Accepted Answer

A) barter 
B) reciprocal pricing 
C) virtual pricing 
D) balance of payments 
E) value-pricing 
A) barter 
B) reciprocal pricing 
C) virtual pricing 
D) balance of payments 
E) value-pricing A

Question 2

A shift of the demand curve from D2 to D3 in Figure 13-5B above indicates

Accepted Answer

A) fewer units are demanded at the given price. 
B) more units are demanded at the given price. 
C) the price has decreased. 
D) the price has increased. 
E) there is not enough information given to indicate what happened. 
A) fewer units are demanded at the given price. 
B) more units are demanded at the given price. 
C) the price has decreased. 
D) the price has increased. 
E) there is not enough information given to indicate what happened. B

Question 3

The Gap in-store signage photo above shows that customers can save 60 percent off a second item if they purchase one at the full price.This is an example of a __________ deal to entice shoppers to buy additional items.

Accepted Answer

A) Big Clearance 
B) Extra Value 
C) BOGO 
D) Inventory Reduction Sale 
E) Barter 
A) Big Clearance 
B) Extra Value 
C) BOGO 
D) Inventory Reduction Sale 
E) Barter C

Question 4

Ampro-Mag is a small company that makes materials for safely controlling hazardous spills of all kinds.It sells these items as a neutralizing kit priced at $100 each.The costs of the materials that go into each kit are $25.It costs $5 in labor to assemble a kit.The company has monthly expenses of $1,000 for rent and insurance,$200 for heat and electricity,$300 for advertising in trade journals,and $3,000 for the monthly salary of its owner.Ampro-Mag's average revenue per unit is

Accepted Answer

A) $30. 
B) $70. 
C) $100. 
D) $130. 
E) $4,500. 
A) $30. 
B) $70. 
C) $100. 
D) $130. 
E) $4,500.

Question 5

In Figure 13-4 above,column "A" represents which type of competitive market?

Accepted Answer

A) pure monopoly 
B) oligopoly 
C) monopolistic competition 
D) pure competition 
E) monopolistic oligopoly 
A) pure monopoly 
B) oligopoly 
C) monopolistic competition 
D) pure competition 
E) monopolistic oligopoly

Question 6

Which of the following would be an example of an objective in Step 1 of the price-setting process?

Accepted Answer

A) "We need to find the least expensive distributor." 
B) "We need to make allowances for large quantity orders." 
C) "We need to increase the price during the holiday shopping season." 
D) "We need to forget profits right now;just make sure we break even." 
E) "We need to hire a professional accountant." 
A) "We need to find the least expensive distributor." 
B) "We need to make allowances for large quantity orders." 
C) "We need to increase the price during the holiday shopping season." 
D) "We need to forget profits right now;just make sure we break even." 
E) "We need to hire a professional accountant."

Question 7

Which of the following statements about StubHub is most accurate?

Accepted Answer

A) StubHub recently purchased Amazon.com for $253 million dollars. 
B) StubHub was recently purchased by eBay. 
C) Stub Hub had plans to enter the European market,but EU regulations made the plan unfeasible. 
D) StubHub and Ticketmaster have a nonbinding agreement to cater to separate market segments (sports vs.concert)to avoid undue competition. 
E) StubHub has had difficulty selling tickets in some states because they view the brokering of tickets as ticket scalping,which is illegal. 
A) StubHub recently purchased Amazon.com for $253 million dollars. 
B) StubHub was recently purchased by eBay. 
C) Stub Hub had plans to enter the European market,but EU regulations made the plan unfeasible. 
D) StubHub and Ticketmaster have a nonbinding agreement to cater to separate market segments (sports vs.concert)to avoid undue competition. 
E) StubHub has had difficulty selling tickets in some states because they view the brokering of tickets as ticket scalping,which is illegal.

Question 8

According to Figure 13-7 above,if Red Baron raises its price frozen cheese pizzas from $6 per pizza to $7 per pizza,what happens to total revenue?

Accepted Answer

A) total revenue goes up 
B) total revenue goes down 
C) total revenue stays the same 
D) total revenue is not related to the price charged 
E) it is impossible to tell from the information given in the figure 
A) total revenue goes up 
B) total revenue goes down 
C) total revenue stays the same 
D) total revenue is not related to the price charged 
E) it is impossible to tell from the information given in the figure

Question 9

Unit volume as a pricing objective refers to

Accepted Answer

A) the quantity of products to be produced or sold. 
B) the ratio of price per unit to unit variable cost. 
C) the ratio of production costs to the minimum sales price that would still generate profit. 
D) the total quantity of product sold by a firm relative to the total quantity of product sold by all firms in the industry. 
E) variable cost expressed on a per unit basis for a product. 
A) the quantity of products to be produced or sold. 
B) the ratio of price per unit to unit variable cost. 
C) the ratio of production costs to the minimum sales price that would still generate profit. 
D) the total quantity of product sold by a firm relative to the total quantity of product sold by all firms in the industry. 
E) variable cost expressed on a per unit basis for a product.

Question 10

A manufacturing company that introduces a product must know or anticipate what specific price its __________ currently charge or may charge in the future.

Accepted Answer

A) present and potential competitors 
B) financial institutions 
C) suppliers 
D) unions 
E) regulators 
A) present and potential competitors 
B) financial institutions 
C) suppliers 
D) unions 
E) regulators

Question 11

A buying situation can involve comparing the costs and benefits of substitute items-such as real sugar to the sugar substitute Splenda,which,although more expensive than sugar,is purchased by many consumers because it contains no calories.This situation involves the consumer considering

Accepted Answer

A) a marginal analysis. 
B) a profit equation. 
C) a break-even analysis. 
D) price elasticity of demand. 
E) a reference value. 
A) a marginal analysis. 
B) a profit equation. 
C) a break-even analysis. 
D) price elasticity of demand. 
E) a reference value.

Question 12

The ratio of the firm's sales revenues or unit sales to those of the industry (competitors plus the firm itself)is referred to as

Accepted Answer

A) target return on sales. 
B) industry profit. 
C) unit volume. 
D) market share. 
E) profit. 
A) target return on sales. 
B) industry profit. 
C) unit volume. 
D) market share. 
E) profit.

Question 13

Go to any Kroger supermarket and walk to the cereal aisle.You will notice that four major brands-Kellogg's,Quaker,General Mills,and Post-seem to occupy most of the shelf space.These cereals are all priced about the same.There is a good deal of product differentiation as the result of licensing agreements with movie studios (Disney,DreamWorks,etc. )and through the use of different health claims.The cereal industry is an example of what type of competitive market?

Accepted Answer

A) a pure monopoly 
B) monopolistic competition 
C) pure competition 
D) monopolistic oligopoly 
E) an oligopoly 
A) a pure monopoly 
B) monopolistic competition 
C) pure competition 
D) monopolistic oligopoly 
E) an oligopoly

Question 14

Demand for a product is likely to be more price elastic if it

Accepted Answer

A) is considered a necessity. 
B) has many substitutes. 
C) has few substitutes. 
D) requires a small cash outlay. 
E) is nondiscretionary. 
A) is considered a necessity. 
B) has many substitutes. 
C) has few substitutes. 
D) requires a small cash outlay. 
E) is nondiscretionary.

Question 15

Factors that limit the range of prices a firm may set are referred to as __________.

Accepted Answer

A) pricing restraints 
B) pricing constraints 
C) demand factors 
D) pricing barriers 
E) pricing restrictions 
A) pricing restraints 
B) pricing constraints 
C) demand factors 
D) pricing barriers 
E) pricing restrictions

Question 16

All of the following are legal and/or ethical considerations when setting a final price EXCEPT:

Accepted Answer

A) geographical pricing. 
B) predatory pricing. 
C) showrooming. 
D) price fixing. 
E) deceptive pricing. 
A) geographical pricing. 
B) predatory pricing. 
C) showrooming. 
D) price fixing. 
E) deceptive pricing.

Question 17

Estimating cost,conducting a marginal analysis,and performing a break-even analysis are issues that would be addressed during __________ of the price-setting process.

Accepted Answer

A) Step 1 
B) Step 2 
C) Step 3 
D) Step 4 
E) Step 5 
A) Step 1 
B) Step 2 
C) Step 3 
D) Step 4 
E) Step 5

Question 18

When a firm introduces a new product into an existing product line,its marketing team MOST LIKELY will be concerned with __________.

Accepted Answer

A) the ability to change prices quickly 
B) speeding up the diffusion of innovation process 
C) brand extension confusion 
D) charging a lower price to gain a foothold in the market 
E) cannibalizing sales from the higher-priced products in the line,reducing overall sales revenues 
A) the ability to change prices quickly 
B) speeding up the diffusion of innovation process 
C) brand extension confusion 
D) charging a lower price to gain a foothold in the market 
E) cannibalizing sales from the higher-priced products in the line,reducing overall sales revenues

Question 19

The total money received from the sale of a product is referred to as __________.

Accepted Answer

A) profit 
B) total revenue 
C) average revenue 
D) marginal revenue 
E) derived demand 
A) profit 
B) total revenue 
C) average revenue 
D) marginal revenue 
E) derived demand

Question 20

List the following competitive markets from MOST competitive to LEAST competitive.

Accepted Answer

A) monopolistic competition,pure monopoly,pure competition,and oligopoly 
B) pure competition ,monopolistic competition,oligopoly,and pure monopoly 
C) pure competition,monopolistic competition,pure monopoly,and oligopoly. 
D) monopolistic competition,pure monopoly,pure competition,and oligopoly. 
E) pure monopoly,oligopoly,monopolistic competition,and pure competition 
A) monopolistic competition,pure monopoly,pure competition,and oligopoly 
B) pure competition ,monopolistic competition,oligopoly,and pure monopoly 
C) pure competition,monopolistic competition,pure monopoly,and oligopoly. 
D) monopolistic competition,pure monopoly,pure competition,and oligopoly. 
E) pure monopoly,oligopoly,monopolistic competition,and pure competition

Exam 13: Building the Price Foundation

The practice of exchanging products and services for other products and services rather than for money is referred to as __________.

A shift of the demand curve from D2 to D3 in Figure 13-5B above indicates

The Gap in-store signage photo above shows that customers can save 60 percent off a second item if they purchase one at the full price.This is an example of a __________ deal to entice shoppers to buy additional items.

In Figure 13-4 above,column "A" represents which type of competitive market?

Which of the following would be an example of an objective in Step 1 of the price-setting process?

Which of the following statements about StubHub is most accurate?

According to Figure 13-7 above,if Red Baron raises its price frozen cheese pizzas from $6 per pizza to $7 per pizza,what happens to total revenue?

Unit volume as a pricing objective refers to

A manufacturing company that introduces a product must know or anticipate what specific price its __________ currently charge or may charge in the future.

A buying situation can involve comparing the costs and benefits of substitute items-such as real sugar to the sugar substitute Splenda,which,although more expensive than sugar,is purchased by many consumers because it contains no calories.This situation involves the consumer considering

The ratio of the firm's sales revenues or unit sales to those of the industry (competitors plus the firm itself)is referred to as

Demand for a product is likely to be more price elastic if it

Factors that limit the range of prices a firm may set are referred to as __________.

All of the following are legal and/or ethical considerations when setting a final price EXCEPT:

Estimating cost,conducting a marginal analysis,and performing a break-even analysis are issues that would be addressed during __________ of the price-setting process.

When a firm introduces a new product into an existing product line,its marketing team MOST LIKELY will be concerned with __________.

The total money received from the sale of a product is referred to as __________.

List the following competitive markets from MOST competitive to LEAST competitive.

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility in Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Managing Successful Products, Services, and Brands

Services Marketing

Arriving at the Final Price

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multichannel Marketing

Pulling It All Together: the Strategic Marketing Process

Building an Effective Marketing Plan

Financial Aspects of Marketing

Filters

A shift of the demand curve from D₂ to D₃in Figure 13-5B above indicates