Question 1

Demand factors refer to

Accepted Answer

A) the number of consumers who can afford to purchase a product or service. 
B) the price that should be charged for a given product. 
C) consumers' willingness and ability to pay for products and services. 
D) the number of consumers who want to purchase a product. 
E) the number of consumers who can purchase a product. 
A) the number of consumers who can afford to purchase a product or service. 
B) the price that should be charged for a given product. 
C) consumers' willingness and ability to pay for products and services. 
D) the number of consumers who want to purchase a product. 
E) the number of consumers who can purchase a product.

Question 2

Which of the following statements regarding pricing objectives is most accurate?

Accepted Answer

A) Pricing objectives should never change. 
B) Pricing objectives may change depending on the financial position of the company. 
C) Pricing objectives may change depending upon the relative market share of competitors. 
D) Pricing objectives are established exclusively by the marketing department. 
E) Pricing objectives are extremely sensitive to even the slightest change in the local economy. 
A) Pricing objectives should never change. 
B) Pricing objectives may change depending on the financial position of the company. 
C) Pricing objectives may change depending upon the relative market share of competitors. 
D) Pricing objectives are established exclusively by the marketing department. 
E) Pricing objectives are extremely sensitive to even the slightest change in the local economy.

Question 3

In Figure 13-4 above,column "D" 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 4

Which pricing constraint does the following statement demonstrate: "Most public utilities must petition regulatory commissions in order to obtain a rate increase."?

Accepted Answer

A) demand for the product,class,or brand 
B) newness of product in the life cycle 
C) costs of production 
D) type of competitive market 
E) single product versus a product line 
A) demand for the product,class,or brand 
B) newness of product in the life cycle 
C) costs of production 
D) type of competitive market 
E) single product versus a product line

Question 5

The break-even point for a large grain farming operation was calculated to be 2 million bushels of corn.Break-even analysis would take place during which step of the price-setting process?

Accepted Answer

A) identify pricing objectives and constraints 
B) determine cost,volume,and profit relationships 
C) estimate demand and revenue 
D) select an approximate price level 
E) make special adjustments to list or quoted price 
A) identify pricing objectives and constraints 
B) determine cost,volume,and profit relationships 
C) estimate demand and revenue 
D) select an approximate price level 
E) make special adjustments to list or quoted price

Question 6

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would conduct a break-even analysis?

Accepted Answer

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

Question 7

A company that manages apartments decides to buy 15 new dishwashers at a list price of $550 each as replacements for old dishwashers in a small apartment complex it owns.Because the company is buying more than 10 dishwashers,it is eligible for a $150-per-unit quantity discount.Financing charges total $20 per unit.The company gets $10 per dishwasher for the 15 dishwashers traded in.What is the final price the company will pay for each dishwasher (not the total cost)?

Accepted Answer

A) $390 
B) $400 
C) $410 
D) $430 
E) $730 
A) $390 
B) $400 
C) $410 
D) $430 
E) $730

Question 8

Which of the following statements regarding a market share pricing objective is MOST ACCURATE?

Accepted Answer

A) A market share objective is often difficult for product managers since stockholders are looking for immediate dividends (return of profits). 
B) Although increased market share is a primary goal of some firms,others see it as a means to other ends,such as increased sales or profits. 
C) Selecting market share as a pricing objective is particularly effective if industry sales are rising. 
D) An advantage of market share as a pricing objective is that it is particularly insensitive to competitors' actions. 
E) Ironically,a market share objective is realized by raising prices in order to increase consumer confidence during the decline stage of a product's life cycle. 
A) A market share objective is often difficult for product managers since stockholders are looking for immediate dividends (return of profits). 
B) Although increased market share is a primary goal of some firms,others see it as a means to other ends,such as increased sales or profits. 
C) Selecting market share as a pricing objective is particularly effective if industry sales are rising. 
D) An advantage of market share as a pricing objective is that it is particularly insensitive to competitors' actions. 
E) Ironically,a market share objective is realized by raising prices in order to increase consumer confidence during the decline stage of a product's life cycle.

Question 9

Marketing executives must translate estimates of customer demand into estimates of

Accepted Answer

A) personnel. 
B) advertising expenditures. 
C) ancillary product support. 
D) revenues the firm expects to receive. 
E) supply. 
A) personnel. 
B) advertising expenditures. 
C) ancillary product support. 
D) revenues the firm expects to receive. 
E) supply.

Question 10

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

Accepted Answer

A) risk opportunity investment 
B) revised organizational incentives 
C) return on investment 
D) regulated organizational investments 
E) replenishment of organizational inventories 
A) risk opportunity investment 
B) revised organizational incentives 
C) return on investment 
D) regulated organizational investments 
E) replenishment of organizational inventories

Question 11

Fixed cost refers to

Accepted Answer

A) the sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold. 
B) the total expense incurred by a firm in producing and marketing a product,which equals the sum of overhead cost and variable cost. 
C) the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold. 
D) the average amount of money received for selling one unit of a product or simply the price of that unit. 
E) the change in expenses that results from producing and marketing one additional unit of a product. 
A) the sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold. 
B) the total expense incurred by a firm in producing and marketing a product,which equals the sum of overhead cost and variable cost. 
C) the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold. 
D) the average amount of money received for selling one unit of a product or simply the price of that unit. 
E) the change in expenses that results from producing and marketing one additional unit of a product.

Question 12

Walmart lies on the border between __________.

Accepted Answer

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

Question 13

In the process of setting price,a marketer must first identify pricing objectives and constraints.Next,in Step 2,three specific estimates are necessary.What are they?

Accepted Answer

The three key items in Step 2

Question 14

Washburn Guitars markets its guitars to four distinct market segments.The firm's mass-produced instruments are targeted at

Accepted Answer

A) first-time buyers. 
B) professional musicians. 
C) stars and famous musicians. 
D) guitar collectors and music aficionados. 
E) intermediate-skill players who may become professional musicians. 
A) first-time buyers. 
B) professional musicians. 
C) stars and famous musicians. 
D) guitar collectors and music aficionados. 
E) intermediate-skill players who may become professional musicians.

Question 15

In Figure 13-10 above,which is a break-even chart that depicts a graphic presentation of a break-even analysis for a picture frame store,the orange/red-shaded area "FBE" represents the firm's

Accepted Answer

A) fixed costs. 
B) break-even point. 
C) variable costs. 
D) profit. 
E) total revenue. 
A) fixed costs. 
B) break-even point. 
C) variable costs. 
D) profit. 
E) total revenue.

Question 16

Small regional producers selling grocery products have a special problem because they need to set prices at which both they and their channel members can profit while

Accepted Answer

A) competing with other brands to gain valuable space on supermarket shelves. 
B) still maintaining local customer loyalty. 
C) trying to go head-to-head or steal market share from nationally recognized brands. 
D) keeping other regional businesses from entering the market. 
E) avoiding cannibalization if they sell their product both in stores and online. 
A) competing with other brands to gain valuable space on supermarket shelves. 
B) still maintaining local customer loyalty. 
C) trying to go head-to-head or steal market share from nationally recognized brands. 
D) keeping other regional businesses from entering the market. 
E) avoiding cannibalization if they sell their product both in stores and online.

Question 17

Three different objectives relate to a firm's profit,which have different implications for pricing strategy.The three profit-oriented objectives include __________,managing current profit,and achieving a target return.

Accepted Answer

A) accumulating profits 
B) managing for long-run profits 
C) reinvesting profits 
D) redistributing profits 
E) maximizing gross margin 
A) accumulating profits 
B) managing for long-run profits 
C) reinvesting profits 
D) redistributing profits 
E) maximizing gross margin

Question 18

The marketing director for a(n)__________ is most likely to believe the following statement,"The purpose of advertising is to increase demand for the product class."

Accepted Answer

A) oligopolist competitor 
B) monopolistic competitor 
C) pure competition competitor 
D) pure monopolist competitor 
E) competitive oligopolist competitor 
A) oligopolist competitor 
B) monopolistic competitor 
C) pure competition competitor 
D) pure monopolist competitor 
E) competitive oligopolist competitor

Question 19

A graphic presentation of the break-even analysis that shows when total revenue and total cost intersect to identify profit or loss for a given quantity sold is referred to as a __________.

Accepted Answer

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

Question 20

Most consumers realize that the quality of diamonds varies,and most believe the higher the price of a diamond,the higher its quality.This is an example of price influencing the perception of overall quality,and therefore __________ to consumers.

Accepted Answer

A) acceptable cost 
B) perceptual investment 
C) barter potential 
D) return on investment 
E) value 
A) acceptable cost 
B) perceptual investment 
C) barter potential 
D) return on investment 
E) value

Exam 13: Building the Price Foundation

Demand factors refer to

Which of the following statements regarding pricing objectives is most accurate?

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

Which pricing constraint does the following statement demonstrate: "Most public utilities must petition regulatory commissions in order to obtain a rate increase."?

The break-even point for a large grain farming operation was calculated to be 2 million bushels of corn.Break-even analysis would take place during which step of the price-setting process?

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would conduct a break-even analysis?

Which of the following statements regarding a market share pricing objective is MOST ACCURATE?

Marketing executives must translate estimates of customer demand into estimates of

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

Fixed cost refers to

Walmart lies on the border between __________.

In the process of setting price,a marketer must first identify pricing objectives and constraints.Next,in Step 2,three specific estimates are necessary.What are they?

Washburn Guitars markets its guitars to four distinct market segments.The firm's mass-produced instruments are targeted at

In Figure 13-10 above,which is a break-even chart that depicts a graphic presentation of a break-even analysis for a picture frame store,the orange/red-shaded area "FBE" represents the firm's

Small regional producers selling grocery products have a special problem because they need to set prices at which both they and their channel members can profit while

Three different objectives relate to a firm's profit,which have different implications for pricing strategy.The three profit-oriented objectives include __________,managing current profit,and achieving a target return.

The marketing director for a(n)__________ is most likely to believe the following statement,"The purpose of advertising is to increase demand for the product class."

A graphic presentation of the break-even analysis that shows when total revenue and total cost intersect to identify profit or loss for a given quantity sold is referred to as a __________.

Most consumers realize that the quality of diamonds varies,and most believe the higher the price of a diamond,the higher its quality.This is an example of price influencing the perception of overall quality,and therefore __________ to consumers.

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

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