Question 1

Which of the following statements about marginal analysis is true?

Accepted Answer

A) Marginal analysis is typically a straightforward procedure to apply in real-life situations. 
B) An important factor in marginal analysis is predicting demand,which is an exact science. 
C) Marginal revenue is also the demand curve,so it represents the amount customers will buy at different prices. 
D) Profit is maximized at the point at which marginal cost is exactly equal to marginal revenue. 
E) The cost of producing a unit beyond the point when marginal cost equals marginal revenue is much less than the revenue from the sale of that unit. 
A) Marginal analysis is typically a straightforward procedure to apply in real-life situations. 
B) An important factor in marginal analysis is predicting demand,which is an exact science. 
C) Marginal revenue is also the demand curve,so it represents the amount customers will buy at different prices. 
D) Profit is maximized at the point at which marginal cost is exactly equal to marginal revenue. 
E) The cost of producing a unit beyond the point when marginal cost equals marginal revenue is much less than the revenue from the sale of that unit.

Question 2

Compare F.O.B.origin pricing and F.O.B.delivered pricing.

Accepted Answer

F.O.B.origin pricing means that the cost

Question 3

A demand curve never appears on a graph as a straight line.

Accepted Answer

A) True 
 B)False

Question 4

If demand is elastic,will sellers consider lowering their prices? Explain your answer.

Accepted Answer

Yes.A lower price will produce

Question 5

Explain the concept of trial pricing.Why would a retailer implement this pricing strategy?

Accepted Answer

Trial pricing is used when a n

Question 6

Which of the following is true about the demand curve?

Accepted Answer

A) It is used to illustrate the effect of price on the quantity supplied. 
B) It is always graphically depicted by a straight line. 
C) It shows the quantity of product customers will buy in a market during a period of time even if other factors change. 
D) It usually slopes upward and to the right. 
E) It shows the relationship between product demand and product price. 
A) It is used to illustrate the effect of price on the quantity supplied. 
B) It is always graphically depicted by a straight line. 
C) It shows the quantity of product customers will buy in a market during a period of time even if other factors change. 
D) It usually slopes upward and to the right. 
E) It shows the relationship between product demand and product price.

Question 7

A firm is using ________ when it charges a high,premium price for a new product with the intention of reducing the price in the future.

Accepted Answer

A) a skimming price 
B) trial pricing 
C) value pricing 
D) penetration pricing 
E) prestige pricing 
A) a skimming price 
B) trial pricing 
C) value pricing 
D) penetration pricing 
E) prestige pricing

Question 8

When a company charges the same rate to ship a product anywhere in the United States,it is using which form of pricing?

Accepted Answer

A) freight absorption 
B) F)O.B.factory 
C) F)O.B.origin 
D) uniform delivered 
E) basing-point 
A) freight absorption 
B) F)O.B.factory 
C) F)O.B.origin 
D) uniform delivered 
E) basing-point

Question 9

After looking at the ads in her Sunday paper,Ruby decided to visit a local nursery and buy potting soil at $1.99 a bag.The regular price is $4.99 a bag.While Ruby was there she also purchased three bushes,six flowering plants,and a bird bath.You can infer from this information that the nursery used the bags of potting soil as a(n)________.

Accepted Answer

A) loss leader 
B) assimilator 
C) bait-and-switch 
D) price line 
E) reference price 
A) loss leader 
B) assimilator 
C) bait-and-switch 
D) price line 
E) reference price

Question 10

Mach 3 razor blades must be used in the Mach 3 razor.Which type of pricing is most likely used for the razor blades?

Accepted Answer

A) penetration 
B) value 
C) captive 
D) two-part 
E) basing-point 
A) penetration 
B) value 
C) captive 
D) two-part 
E) basing-point

Question 11

Why do marketers consider prestige products to be an exception to the law of demand?

Accepted Answer

A) The demand curve for prestige products slopes downward and to the right. 
B) Increasing the price of prestige products can make them seem more desirable. 
C) Demand for prestige products often is greater than supply. 
D) Prestige products such as diamonds,sapphires,and emeralds are nonrenewable resources. 
E) Customers are more aware of any price changes to prestige products. 
A) The demand curve for prestige products slopes downward and to the right. 
B) Increasing the price of prestige products can make them seem more desirable. 
C) Demand for prestige products often is greater than supply. 
D) Prestige products such as diamonds,sapphires,and emeralds are nonrenewable resources. 
E) Customers are more aware of any price changes to prestige products.

Question 12

Explain how prestige products may relate to some customers' feelings of self-worth.What is an example of a prestige product?

Accepted Answer

The image enhancement function of pricin

Question 13

In response to inflation,marketers may decide to either raise or decrease their prices.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is an example of a variable cost for an amusement park?

Accepted Answer

A) salary of the park manager 
B) food cart supplies 
C) liability insurance 
D) interest on the property's mortgage 
E) property taxes 
A) salary of the park manager 
B) food cart supplies 
C) liability insurance 
D) interest on the property's mortgage 
E) property taxes

Question 15

Two forms of demand-based pricing are ________.

Accepted Answer

A) price bundling and captive pricing 
B) price skimming and penetration pricing 
C) fixed pricing and variable pricing 
D) target costing and yield management pricing 
E) price leadership and everyday low pricing 
A) price bundling and captive pricing 
B) price skimming and penetration pricing 
C) fixed pricing and variable pricing 
D) target costing and yield management pricing 
E) price leadership and everyday low pricing

Question 16

Cellular phone service providers typically offer customers a set number of minutes for a monthly fee plus a per-minute rate for extra phone usage.What is the pricing strategy being implemented by these cellular phone service providers?

Accepted Answer

Cellular phone service providers are imp

Question 17

Some retailers advertise items at very low prices or even below cost just to get customers into the store.The rationale for implementing this ________ strategy is the belief that once a customer is in the store she will buy the advertised item as well as other items at regular prices.

Accepted Answer

A) bait-and-switch 
B) price lining 
C) predatory pricing 
D) loss leader pricing 
E) dynamic pricing 
A) bait-and-switch 
B) price lining 
C) predatory pricing 
D) loss leader pricing 
E) dynamic pricing

Question 18

________ do not vary with the number of units produced.

Accepted Answer

A) Liquidity costs 
B) Fixed costs 
C) Variable costs 
D) Marginal costs 
E) Everyday costs 
A) Liquidity costs 
B) Fixed costs 
C) Variable costs 
D) Marginal costs 
E) Everyday costs

Question 19

The most common cost-based approach to pricing is ________.

Accepted Answer

A) demand-based pricing 
B) psychological pricing 
C) yield management pricing 
D) cost-plus pricing 
E) cost-minus pricing 
A) demand-based pricing 
B) psychological pricing 
C) yield management pricing 
D) cost-plus pricing 
E) cost-minus pricing

Question 20

Manufacturers of which of the following would be most likely to use freight absorption pricing?

Accepted Answer

A) chocolate candy 
B) laptop computers 
C) furniture polish 
D) feline flea collars 
E) repair parts for vacuum cleaners 
A) chocolate candy 
B) laptop computers 
C) furniture polish 
D) feline flea collars 
E) repair parts for vacuum cleaners

Which of the following statements about marginal analysis is true?

Compare F.O.B.origin pricing and F.O.B.delivered pricing.

A demand curve never appears on a graph as a straight line.

If demand is elastic,will sellers consider lowering their prices? Explain your answer.

Explain the concept of trial pricing.Why would a retailer implement this pricing strategy?

Which of the following is true about the demand curve?

A firm is using ________ when it charges a high,premium price for a new product with the intention of reducing the price in the future.

When a company charges the same rate to ship a product anywhere in the United States,it is using which form of pricing?

Mach 3 razor blades must be used in the Mach 3 razor.Which type of pricing is most likely used for the razor blades?

Why do marketers consider prestige products to be an exception to the law of demand?

Explain how prestige products may relate to some customers' feelings of self-worth.What is an example of a prestige product?

In response to inflation,marketers may decide to either raise or decrease their prices.

Which of the following is an example of a variable cost for an amusement park?

Two forms of demand-based pricing are ________.

Cellular phone service providers typically offer customers a set number of minutes for a monthly fee plus a per-minute rate for extra phone usage.What is the pricing strategy being implemented by these cellular phone service providers?

Some retailers advertise items at very low prices or even below cost just to get customers into the store.The rationale for implementing this ________ strategy is the belief that once a customer is in the store she will buy the advertised item as well as other items at regular prices.

________ do not vary with the number of units produced.

The most common cost-based approach to pricing is ________.

Manufacturers of which of the following would be most likely to use freight absorption pricing?

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

Which of the following statements about marginal analysis is true?

Compare F.O.B.origin pricing and F.O.B.delivered pricing.

A demand curve never appears on a graph as a straight line.

If demand is elastic,will sellers consider lowering their prices? Explain your answer.

Explain the concept of trial pricing.Why would a retailer implement this pricing strategy?

Which of the following is true about the demand curve?

A firm is using ________ when it charges a high,premium price for a new product with the intention of reducing the price in the future.

When a company charges the same rate to ship a product anywhere in the United States,it is using which form of pricing?

Mach 3 razor blades must be used in the Mach 3 razor.Which type of pricing is most likely used for the razor blades?

Why do marketers consider prestige products to be an exception to the law of demand?

Explain how prestige products may relate to some customers' feelings of self-worth.What is an example of a prestige product?

In response to inflation,marketers may decide to either raise or decrease their prices.

Which of the following is an example of a variable cost for an amusement park?

Two forms of demand-based pricing are ________.

Cellular phone service providers typically offer customers a set number of minutes for a monthly fee plus a per-minute rate for extra phone usage.What is the pricing strategy being implemented by these cellular phone service providers?

Some retailers advertise items at very low prices or even below cost just to get customers into the store.The rationale for implementing this ________ strategy is the belief that once a customer is in the store she will buy the advertised item as well as other items at regular prices.

________ do not vary with the number of units produced.

The most common cost-based approach to pricing is ________.

Manufacturers of which of the following would be most likely to use freight absorption pricing?

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