Question 1

Which of the following statements about price elasticity of demand most accurate?

Accepted Answer

A) The more substitutes a product has,the more likely it is to be price elastic. 
B) All products show some price inelasticity. 
C) Nondiscretionary, (necessary)purchases are price elastic. 
D) With inelastic demand,reducing price has a very large impact on revenues. 
E) With inelastic demand,manufacturers change prices frequently to capitalize on consumer behavior. 
A) The more substitutes a product has,the more likely it is to be price elastic. 
B) All products show some price inelasticity. 
C) Nondiscretionary, (necessary)purchases are price elastic. 
D) With inelastic demand,reducing price has a very large impact on revenues. 
E) With inelastic demand,manufacturers change prices frequently to capitalize on consumer behavior.

Question 2

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would estimate costs and perform a marginal analysis to assess profitability?

Accepted Answer

A) "A" 
B) "B" 
C) "C" 
D) "D" 
E) "E" 
A) "A" 
B) "B" 
C) "C" 
D) "D" 
E) "E"

Question 3

To increase value the most,marketers should

Accepted Answer

A) decrease benefits. 
B) decrease benefits and increase price. 
C) decrease price and increase benefits. 
D) decrease price and decrease benefits. 
E) do nothing and let the perceived value of the item increase as it matures in its life cycle. 
A) decrease benefits. 
B) decrease benefits and increase price. 
C) decrease price and increase benefits. 
D) decrease price and decrease benefits. 
E) do nothing and let the perceived value of the item increase as it matures in its life cycle.

Question 4

Which of the following statements about the product life cycle as a pricing constraint is MOST ACCURATE?

Accepted Answer

A) The newer a product is,the higher the price that can usually be charged. 
B) The later in the product life cycle a product is,the higher the price that can usually be charged. 
C) Once a product is considered nostalgic,the price will continue to rise indefinitely. 
D) Fads will generally have only two price points-high and low-but the values of those price points usually be within 10 percent of each other. 
E) Prices should not be changed until a product reaches its maturity stage. 
A) The newer a product is,the higher the price that can usually be charged. 
B) The later in the product life cycle a product is,the higher the price that can usually be charged. 
C) Once a product is considered nostalgic,the price will continue to rise indefinitely. 
D) Fads will generally have only two price points-high and low-but the values of those price points usually be within 10 percent of each other. 
E) Prices should not be changed until a product reaches its maturity stage.

Question 5

Which of the following is a typical example of a fixed cost?

Accepted Answer

A) taxes 
B) raw materials 
C) sales commissions 
D) building rental expense 
E) hourly wages 
A) taxes 
B) raw materials 
C) sales commissions 
D) building rental expense 
E) hourly wages

Question 6

Five cost concepts are important in pricing decisions: total cost,fixed cost,variable cost,unit variable cost,and __________.

Accepted Answer

A) dividend cost 
B) liquidity cost 
C) discretionary cost 
D) marginal cost 
E) elastic cost 
A) dividend cost 
B) liquidity cost 
C) discretionary cost 
D) marginal cost 
E) elastic cost

Question 7

When estimating demand,price is not the only factor to be considered.Three other elements emphasized by economists are consumer tastes,price and availability of similar products,and

Accepted Answer

A) consumer income. 
B) consumer psychographics. 
C) size of the target market. 
D) current political agendas. 
E) green substitutes. 
A) consumer income. 
B) consumer psychographics. 
C) size of the target market. 
D) current political agendas. 
E) green substitutes.

Question 8

George and Alice Renfro decided to start a family business in 1990.Its product-chowchow,a southern regional food.To determine how they would price the chowchow,the Renfros had to: (1)examine the demand for the product and how much it would cost to distribute the product to area grocery stores.For the Renfros,Step 1 of their price-setting process consists of

Accepted Answer

A) identifying pricing constraints. 
B) estimating break-even points and revenue points. 
C) setting the list price. 
D) selecting an approximate price level. 
E) determining cost,volume,and profit relationships. 
A) identifying pricing constraints. 
B) estimating break-even points and revenue points. 
C) setting the list price. 
D) selecting an approximate price level. 
E) determining cost,volume,and profit relationships.

Question 9

Average revenue is

Accepted Answer

A) the typical or average sales generated for all items within an industry. 
B) the average amount of revenue necessary for a business to remain profitable. 
C) total revenue divided by the quantity sold. 
D) the difference between the highest and lowest price charged for a given item within a specific firm. 
E) the difference between the highest and lowest price charged for a given item within a specific industry. 
A) the typical or average sales generated for all items within an industry. 
B) the average amount of revenue necessary for a business to remain profitable. 
C) total revenue divided by the quantity sold. 
D) the difference between the highest and lowest price charged for a given item within a specific firm. 
E) the difference between the highest and lowest price charged for a given item within a specific industry.

Question 10

Pricing constraints are

Accepted Answer

A) the controllable elements in a firm's marketing mix that allow it to charge the highest price possible. 
B) formulas used in establishing break-even points,price elasticity of demand,and marginal analysis of revenues and costs. 
C) factors that limit the range of prices a firm may set. 
D) factors that expand the range of prices a firm may set. 
E) virtual boundaries used when setting the initial price on a new product. 
A) the controllable elements in a firm's marketing mix that allow it to charge the highest price possible. 
B) formulas used in establishing break-even points,price elasticity of demand,and marginal analysis of revenues and costs. 
C) factors that limit the range of prices a firm may set. 
D) factors that expand the range of prices a firm may set. 
E) virtual boundaries used when setting the initial price on a new product.

Question 11

The competitive market situation in which many sellers follow the market price for identical,commodity products is referred to as a(n)

Accepted Answer

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

Question 12

Price elasticity of demand is determined by a number of factors such as the availability of substitutes,the cash outlay of the purchase relative to a person's disposable income,and

Accepted Answer

A) the stage of the product or service in its product life cycle. 
B) the degree of carrying costs for the manufacturer or distributor. 
C) the financial resources of the organization itself. 
D) the ability of the organization to meet sudden increases in demand. 
E) the necessity of the product or service. 
A) the stage of the product or service in its product life cycle. 
B) the degree of carrying costs for the manufacturer or distributor. 
C) the financial resources of the organization itself. 
D) the ability of the organization to meet sudden increases in demand. 
E) the necessity of the product or service.

Question 13

Economists have identified four types of competitive markets,which are

Accepted Answer

A) capitalistic,monopolistic,socialist,and communist. 
B) pure monopoly,monopolistic competition,oligopoly,and pure competition. 
C) free market,restrained market,government-regulated,and command economy. 
D) market economy,command economy,traditional economy,and controlled economy. 
E) open market,consumer-dominated market,service market,and product market. 
A) capitalistic,monopolistic,socialist,and communist. 
B) pure monopoly,monopolistic competition,oligopoly,and pure competition. 
C) free market,restrained market,government-regulated,and command economy. 
D) market economy,command economy,traditional economy,and controlled economy. 
E) open market,consumer-dominated market,service market,and product market.

Question 14

Describe the pricing constraints a firm is likely to face.

Accepted Answer

Pricing constraints are factors that lim

Question 15

Figure 13-5A above shows that when the price for Red Baron frozen cheese pizzas moves from $8 to $6 per unit along the demand curve D1,the quantity demanded

Accepted Answer

A) increases from 2 to 3 million units per year. 
B) decreases from 3 to 2 million units per year. 
C) stays the same. 
D) increases from 6 to 8 million units per year. 
E) decreases from 8 to 6 million units per year. 
A) increases from 2 to 3 million units per year. 
B) decreases from 3 to 2 million units per year. 
C) stays the same. 
D) increases from 6 to 8 million units per year. 
E) decreases from 8 to 6 million units per year.

Question 16

Figure 13-10 above depicts a __________.

Accepted Answer

A) Gantt chart 
B) demand curve 
C) break-even chart 
D) ROI analysis 
E) cross-tabulation 
A) Gantt chart 
B) demand curve 
C) break-even chart 
D) ROI analysis 
E) cross-tabulation

Question 17

A firm's profit objective is often measured in terms of ROA.The acronym ROA stands for __________.

Accepted Answer

A) return on assets 
B) risk opportunity assessment 
C) return of allowances 
D) return on average equity 
E) risk opportunity analysis 
A) return on assets 
B) risk opportunity assessment 
C) return of allowances 
D) return on average equity 
E) risk opportunity analysis

Which of the following statements about price elasticity of demand most accurate?

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would estimate costs and perform a marginal analysis to assess profitability?

To increase value the most,marketers should

Which of the following statements about the product life cycle as a pricing constraint is MOST ACCURATE?

Which of the following is a typical example of a fixed cost?

Five cost concepts are important in pricing decisions: total cost,fixed cost,variable cost,unit variable cost,and __________.

When estimating demand,price is not the only factor to be considered.Three other elements emphasized by economists are consumer tastes,price and availability of similar products,and

Average revenue is

Pricing constraints are

The competitive market situation in which many sellers follow the market price for identical,commodity products is referred to as a(n)

Price elasticity of demand is determined by a number of factors such as the availability of substitutes,the cash outlay of the purchase relative to a person's disposable income,and

Economists have identified four types of competitive markets,which are

Describe the pricing constraints a firm is likely to face.

Figure 13-5A above shows that when the price for Red Baron frozen cheese pizzas moves from $8 to $6 per unit along the demand curve D₁,the quantity demanded

Figure 13-10 above depicts a __________.

A firm's profit objective is often measured in terms of ROA.The acronym ROA stands for __________.

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

Exam 13: Building the Price Foundation

Which of the following statements about price elasticity of demand most accurate?

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would estimate costs and perform a marginal analysis to assess profitability?

To increase value the most,marketers should

Which of the following statements about the product life cycle as a pricing constraint is MOST ACCURATE?

Which of the following is a typical example of a fixed cost?

Five cost concepts are important in pricing decisions: total cost,fixed cost,variable cost,unit variable cost,and __________.

When estimating demand,price is not the only factor to be considered.Three other elements emphasized by economists are consumer tastes,price and availability of similar products,and

Average revenue is

Pricing constraints are

The competitive market situation in which many sellers follow the market price for identical,commodity products is referred to as a(n)

Price elasticity of demand is determined by a number of factors such as the availability of substitutes,the cash outlay of the purchase relative to a person's disposable income,and

Economists have identified four types of competitive markets,which are

Describe the pricing constraints a firm is likely to face.

Figure 13-5A above shows that when the price for Red Baron frozen cheese pizzas moves from $8 to $6 per unit along the demand curve D1,the quantity demanded

Figure 13-10 above depicts a __________.

A firm's profit objective is often measured in terms of ROA.The acronym ROA stands for __________.

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

Figure 13-5A above shows that when the price for Red Baron frozen cheese pizzas moves from $8 to $6 per unit along the demand curve D₁,the quantity demanded