Question 1

Price fixing occurs when two or more companies conspire to ________.

Accepted Answer

A) keep prices at a certain level 
B) use predatory pricing 
C) use loss-leader pricing 
D) use bait-and-switch tactics 
E) prohibit competitors from entering a market 
A) keep prices at a certain level 
B) use predatory pricing 
C) use loss-leader pricing 
D) use bait-and-switch tactics 
E) prohibit competitors from entering a market A

Question 2

When setting prices,a company must consider factors in its pricing environment.________ such as the business cycle,economic growth,and consumer confidence can have a significant impact on the firm's pricing strategies.

Accepted Answer

A) Consumer trends 
B) Economic trends 
C) Competitors' responses 
D) Regulations 
E) Market structures 
A) Consumer trends 
B) Economic trends 
C) Competitors' responses 
D) Regulations 
E) Market structures B

Question 3

When Joe's Coffee Nook raised the price of a latte,Joe noticed a substantial change in how many lattes he sold daily.A price reduction caused his sales to increase.From this information,you can assume the demand for lattes is ________.

Accepted Answer

A) static 
B) supply-driven 
C) asymmetrical 
D) elastic 
E) inelastic 
A) static 
B) supply-driven 
C) asymmetrical 
D) elastic 
E) inelastic D

Question 4

Explain the concept of opportunity cost,giving at least one example.

Accepted Answer

Opportunity costs are the value of somet

Question 5

A local appliance store is advertising the sale of a 27-inch color TV for only $199.The ad states that this price will apply only to TVs that are in stock and no rain checks will be given.Fifteen minutes after the store opens on the day of the sale of the TV,a customer is told by a sales clerk that all of the TVs selling for $199 have been sold.However,the sales clerk is very happy to show the customer a similar TV for only $399.What pricing strategy is the store implementing and why?

Accepted Answer

The store is using the bait-and-switch t

Question 6

Pricing based on supply and demand is not a part of dynamic pricing.

Accepted Answer

A) True 
 B)False

Question 7

Variable costs for producing textbooks include the price of paper.

Accepted Answer

A) True 
 B)False

Question 8

A local restaurant sells lunch entrees for $7.95,$9.95,and $11.95.From this information,you can infer the restaurant uses which of the following?

Accepted Answer

A) price discrimination 
B) odd pricing and price lining 
C) dynamic pricing and price lining 
D) reference pricing and value pricing 
E) dynamic pricing and loss leader pricing 
A) price discrimination 
B) odd pricing and price lining 
C) dynamic pricing and price lining 
D) reference pricing and value pricing 
E) dynamic pricing and loss leader pricing

Question 9

Application fees,tuition,and fines are all examples of prices.

Accepted Answer

A) True 
 B)False

Question 10

Bayer AG agreed to pay $46 million as part of a law settlement for conspiring with Archer-Daniels-Midland (ADM)to keep prices of citric acid at a certain level.These two international companies were guilty of ________.

Accepted Answer

A) price lining 
B) skimming pricing 
C) predatory pricing 
D) price-fixing 
E) placebo pricing 
A) price lining 
B) skimming pricing 
C) predatory pricing 
D) price-fixing 
E) placebo pricing

Question 11

Swatch surveyed the market and identified an unserved segment of watch buyers.Using these results,they created a watch at a price consumers were willing to pay.The unorthodox order of this marketing mix decision is an example of ________.

Accepted Answer

A) competition-based pricing 
B) cost-plus pricing 
C) target costing 
D) value pricing 
E) penetration pricing 
A) competition-based pricing 
B) cost-plus pricing 
C) target costing 
D) value pricing 
E) penetration pricing

Question 12

A new product carries a low price for a limited period of time to attract customers in what type of pricing strategy?

Accepted Answer

A) price skimming 
B) trial pricing 
C) penetration pricing 
D) specialty pricing 
E) price bundling 
A) price skimming 
B) trial pricing 
C) penetration pricing 
D) specialty pricing 
E) price bundling

Question 13

As a result of the ________,Rick decided the candy priced at $2.50 per pound could not be nearly as good as the candy priced at $9.50 per pound.

Accepted Answer

A) assimilation effect 
B) contrast effect 
C) fair price effect 
D) reference effect 
E) clouding effect 
A) assimilation effect 
B) contrast effect 
C) fair price effect 
D) reference effect 
E) clouding effect

Question 14

From a marketer's point of view,price lining is a way to do which of the following?

Accepted Answer

A) control supply 
B) maximize profits 
C) make the business more socially responsible 
D) pass shipping costs on to consumers 
E) eliminate price elasticity concerns 
A) control supply 
B) maximize profits 
C) make the business more socially responsible 
D) pass shipping costs on to consumers 
E) eliminate price elasticity concerns

Question 15

To determine the break-even point,a firm first needs to calculate the contribution per unit.What does this mean?

Accepted Answer

The contribution per unit is t

Question 16

Break-even analysis is used to examine the relationship between ________.

Accepted Answer

A) fixed costs and variable costs 
B) costs and contributions 
C) costs and price 
D) demand and costs 
E) demand and profits 
A) fixed costs and variable costs 
B) costs and contributions 
C) costs and price 
D) demand and costs 
E) demand and profits

Question 17

A firm is using a(n)________ strategy when it introduces a product at a very low price to gain market share early on.

Accepted Answer

A) skimming pricing 
B) trial pricing 
C) intensive pricing 
D) penetration pricing 
E) price bundling 
A) skimming pricing 
B) trial pricing 
C) intensive pricing 
D) penetration pricing 
E) price bundling

Question 18

In some states,unfair trade practices acts ________.

Accepted Answer

A) regulate the markups used by various industries 
B) control the sale of agricultural products and raw materials 
C) regulate all forms of psychological pricing 
D) prohibit the selling of products below cost 
E) ban the use of price lining 
A) regulate the markups used by various industries 
B) control the sale of agricultural products and raw materials 
C) regulate all forms of psychological pricing 
D) prohibit the selling of products below cost 
E) ban the use of price lining

Question 19

Explain the difference between elastic demand and inelastic demand.

Accepted Answer

Elastic demand occurs when a change in p

Question 20

How is the price elasticity of demand calculated?

Accepted Answer

A) averaging previous demand levels with new demand levels 
B) dividing percentage change in quantity demanded by percentage change in price 
C) dividing the new quantity demanded by the percentage change in price times 100 
D) multiplying the percentage change in quantity demanded by the percentage change in price 
E) dividing the percentage change in price by the percentage change in quantity demanded 
A) averaging previous demand levels with new demand levels 
B) dividing percentage change in quantity demanded by percentage change in price 
C) dividing the new quantity demanded by the percentage change in price times 100 
D) multiplying the percentage change in quantity demanded by the percentage change in price 
E) dividing the percentage change in price by the percentage change in quantity demanded

Price fixing occurs when two or more companies conspire to ________.

When setting prices,a company must consider factors in its pricing environment.________ such as the business cycle,economic growth,and consumer confidence can have a significant impact on the firm's pricing strategies.

When Joe's Coffee Nook raised the price of a latte,Joe noticed a substantial change in how many lattes he sold daily.A price reduction caused his sales to increase.From this information,you can assume the demand for lattes is ________.

Explain the concept of opportunity cost,giving at least one example.

Pricing based on supply and demand is not a part of dynamic pricing.

Variable costs for producing textbooks include the price of paper.

A local restaurant sells lunch entrees for $7.95,$9.95,and $11.95.From this information,you can infer the restaurant uses which of the following?

Application fees,tuition,and fines are all examples of prices.

Bayer AG agreed to pay $46 million as part of a law settlement for conspiring with Archer-Daniels-Midland (ADM)to keep prices of citric acid at a certain level.These two international companies were guilty of ________.

Swatch surveyed the market and identified an unserved segment of watch buyers.Using these results,they created a watch at a price consumers were willing to pay.The unorthodox order of this marketing mix decision is an example of ________.

A new product carries a low price for a limited period of time to attract customers in what type of pricing strategy?

As a result of the ________,Rick decided the candy priced at $2.50 per pound could not be nearly as good as the candy priced at $9.50 per pound.

From a marketer's point of view,price lining is a way to do which of the following?

To determine the break-even point,a firm first needs to calculate the contribution per unit.What does this mean?

Break-even analysis is used to examine the relationship between ________.

A firm is using a(n)________ strategy when it introduces a product at a very low price to gain market share early on.

In some states,unfair trade practices acts ________.

Explain the difference between elastic demand and inelastic demand.

How is the price elasticity of demand calculated?

Welcome to the World of Marketing: Create and Deliver Value

Strategic Market Planning: Take the Big Picture

Thrive in the Marketing Environment: the World Is Flat

Marketing Research: Gather, analyze, and Use Information

Consumer Behavior: How and Why We Buy

Business-To-Business Markets: How and Why Organizations Buy

Sharpen the Focus: Target Marketing Strategies and Customer Relationship Management

Create the Product

Manage the Product

Services and Other Intangibles: Marketing the Product That Isnt There

Old and New Media: From One-To-Many to Many-To-Many

One to Many: Advertising, public Relations, and Consumer Sales Promotions

Many to Many: Trade Promotion, direct Marketing, and Personal Selling

Deliver Value Through Supply Chain Management, channels of Distribution, and Logistics

Retailing: Bricks and Clicks

Filters

Exam 11: Price the Product

Price fixing occurs when two or more companies conspire to ________.

When setting prices,a company must consider factors in its pricing environment.________ such as the business cycle,economic growth,and consumer confidence can have a significant impact on the firm's pricing strategies.

When Joe's Coffee Nook raised the price of a latte,Joe noticed a substantial change in how many lattes he sold daily.A price reduction caused his sales to increase.From this information,you can assume the demand for lattes is ________.

Explain the concept of opportunity cost,giving at least one example.

Pricing based on supply and demand is not a part of dynamic pricing.

Variable costs for producing textbooks include the price of paper.

A local restaurant sells lunch entrees for $7.95,$9.95,and $11.95.From this information,you can infer the restaurant uses which of the following?

Application fees,tuition,and fines are all examples of prices.

Bayer AG agreed to pay $46 million as part of a law settlement for conspiring with Archer-Daniels-Midland (ADM)to keep prices of citric acid at a certain level.These two international companies were guilty of ________.

Swatch surveyed the market and identified an unserved segment of watch buyers.Using these results,they created a watch at a price consumers were willing to pay.The unorthodox order of this marketing mix decision is an example of ________.

A new product carries a low price for a limited period of time to attract customers in what type of pricing strategy?

As a result of the ________,Rick decided the candy priced at $2.50 per pound could not be nearly as good as the candy priced at $9.50 per pound.

From a marketer's point of view,price lining is a way to do which of the following?

To determine the break-even point,a firm first needs to calculate the contribution per unit.What does this mean?

Break-even analysis is used to examine the relationship between ________.

A firm is using a(n)________ strategy when it introduces a product at a very low price to gain market share early on.

In some states,unfair trade practices acts ________.

Explain the difference between elastic demand and inelastic demand.

How is the price elasticity of demand calculated?

Welcome to the World of Marketing: Create and Deliver Value

Strategic Market Planning: Take the Big Picture

Thrive in the Marketing Environment: the World Is Flat

Marketing Research: Gather, analyze, and Use Information

Consumer Behavior: How and Why We Buy

Business-To-Business Markets: How and Why Organizations Buy

Sharpen the Focus: Target Marketing Strategies and Customer Relationship Management

Create the Product

Manage the Product

Services and Other Intangibles: Marketing the Product That Isnt There

Old and New Media: From One-To-Many to Many-To-Many

One to Many: Advertising, public Relations, and Consumer Sales Promotions

Many to Many: Trade Promotion, direct Marketing, and Personal Selling

Deliver Value Through Supply Chain Management, channels of Distribution, and Logistics

Retailing: Bricks and Clicks

Filters