Question 1

________ is the assignment of value,or the amount a consumer must give to receive a product.

Accepted Answer

A) Profit 
B) Exchange 
C) Price 
D) Demand 
E) Yield 
A) Profit 
B) Exchange 
C) Price 
D) Demand 
E) Yield

Question 2

Exchanges of nonmonetary value do not involve a price.

Accepted Answer

A) True 
 B)False

Question 3

The method of setting prices in which marketers total all the costs for the product and then add an amount to arrive at the selling price is called ________.

Accepted Answer

A) supply-based pricing 
B) target costing 
C) cost-plus pricing 
D) yield management pricing 
E) demand-based pricing 
A) supply-based pricing 
B) target costing 
C) cost-plus pricing 
D) yield management pricing 
E) demand-based pricing

Question 4

Joe Bergerson makes and sells maple racks for cooling cakes and cookies.Joe knows that it costs $15 to make one rack,and he wants to earn a 25 percent profit on each rack.Which approach to pricing is Joe most likely to use?

Accepted Answer

A) demand-based pricing 
B) target costing 
C) cost-plus pricing 
D) yield management pricing 
E) value pricing 
A) demand-based pricing 
B) target costing 
C) cost-plus pricing 
D) yield management pricing 
E) value pricing

Question 5

In price planning,a firm would be most likely to set a profit objective for which of the following products?

Accepted Answer

A) a commodity such as coal 
B) toothpaste 
C) a fad such as Beanie Babies 
D) lightbulbs 
E) construction materials 
A) a commodity such as coal 
B) toothpaste 
C) a fad such as Beanie Babies 
D) lightbulbs 
E) construction materials

Question 6

Which of the following is an external influence that affects pricing decisions?

Accepted Answer

A) the salaries of production management 
B) competition 
C) the salaries of finance management 
D) overall pricing objectives 
E) the company's overall marketing strategy 
A) the salaries of production management 
B) competition 
C) the salaries of finance management 
D) overall pricing objectives 
E) the company's overall marketing strategy

Question 7

A business using price lining is doing which of the following?

Accepted Answer

A) trying to avoid the use of psychological pricing,which may be negatively received by customers 
B) trying to recoup its research and development costs for a new product 
C) attempting to attain a large market share before any competitors can enter the marketplace 
D) using price points to determine its pricing strategy 
E) engaging in potentially unethical pricing 
A) trying to avoid the use of psychological pricing,which may be negatively received by customers 
B) trying to recoup its research and development costs for a new product 
C) attempting to attain a large market share before any competitors can enter the marketplace 
D) using price points to determine its pricing strategy 
E) engaging in potentially unethical pricing

Question 8

When setting prices,the company must consider its external pricing environment.Describe three components of the pricing environment and how they affect businesses.

Accepted Answer

Economic conditions affect both the cost

Question 9

As a manufacturer increases price,the ________ drops.

Accepted Answer

A) target 
B) break-even point 
C) marginal revenue 
D) total cost 
E) variable cost 
A) target 
B) break-even point 
C) marginal revenue 
D) total cost 
E) variable cost

Question 10

Another name for F.O.B.factory pricing is ________ pricing.

Accepted Answer

A) captive 
B) F)O.B destination 
C) F)O.B.origin 
D) F)O.B.delivered 
E) basing-point 
A) captive 
B) F)O.B destination 
C) F)O.B.origin 
D) F)O.B.delivered 
E) basing-point

Question 11

What are the advantages and disadvantages of using demand-based pricing?

Accepted Answer

Demand-based pricing assures a firm that

Question 12

What are some of the potential consumer benefits to purchasing items online?

Accepted Answer

Consumers can potentially save on the ac

Question 13

________ refers to the sale of two or more goods or services as a single package for one price.

Accepted Answer

A) Two-part pricing 
B) Captive pricing 
C) Price bundling 
D) List pricing 
E) Everyday low pricing 
A) Two-part pricing 
B) Captive pricing 
C) Price bundling 
D) List pricing 
E) Everyday low pricing

Question 14

Which of the following occurs when price is inelastic?

Accepted Answer

A) Price and revenue change in the same direction. 
B) Revenues decrease when price increases. 
C) Revenue is unaffected by price changes. 
D) Quantity demanded increases when price increases. 
E) The demand curve is more horizontal. 
A) Price and revenue change in the same direction. 
B) Revenues decrease when price increases. 
C) Revenue is unaffected by price changes. 
D) Quantity demanded increases when price increases. 
E) The demand curve is more horizontal.

Question 15

With ________,the seller pays both the cost of loading and transporting the product to the customer.

Accepted Answer

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

Question 16

Value Meal Deals at a fast food restaurant in which you get a sandwich,fries,and a drink for one price are an example of price bundling.

Accepted Answer

A) True 
 B)False

Question 17

The break-even point is the point at which ________.

Accepted Answer

A) the total revenue and total costs lines intersect 
B) demand equals supply 
C) the production of one more unit will not increase profit 
D) the company can pay all of its long-term debt 
E) a firm's profit goal is reached 
A) the total revenue and total costs lines intersect 
B) demand equals supply 
C) the production of one more unit will not increase profit 
D) the company can pay all of its long-term debt 
E) a firm's profit goal is reached

Question 18

A list price is also referred to as a(n)________.

Accepted Answer

A) captive price 
B) bundled price 
C) channel price 
D) suggested retail price 
E) basing-point price 
A) captive price 
B) bundled price 
C) channel price 
D) suggested retail price 
E) basing-point price

Question 19

When a beverage maker came out with a new drink and priced it at half price for a month to attract buyers,the company was using a(n)________ strategy.

Accepted Answer

A) penetration pricing 
B) skim pricing 
C) everyday low price 
D) trial pricing 
E) price leadership 
A) penetration pricing 
B) skim pricing 
C) everyday low price 
D) trial pricing 
E) price leadership

Question 20

In a market with ________,the market consists of many buyers and a few sellers who are likely to have similar pricing.

Accepted Answer

A) pure competition 
B) monopolistic competition 
C) oligopolistic competition 
D) a pure monopoly 
E) socialism 
A) pure competition 
B) monopolistic competition 
C) oligopolistic competition 
D) a pure monopoly 
E) socialism

________ is the assignment of value,or the amount a consumer must give to receive a product.

Exchanges of nonmonetary value do not involve a price.

The method of setting prices in which marketers total all the costs for the product and then add an amount to arrive at the selling price is called ________.

Joe Bergerson makes and sells maple racks for cooling cakes and cookies.Joe knows that it costs $15 to make one rack,and he wants to earn a 25 percent profit on each rack.Which approach to pricing is Joe most likely to use?

In price planning,a firm would be most likely to set a profit objective for which of the following products?

Which of the following is an external influence that affects pricing decisions?

A business using price lining is doing which of the following?

When setting prices,the company must consider its external pricing environment.Describe three components of the pricing environment and how they affect businesses.

As a manufacturer increases price,the ________ drops.

Another name for F.O.B.factory pricing is ________ pricing.

What are the advantages and disadvantages of using demand-based pricing?

What are some of the potential consumer benefits to purchasing items online?

________ refers to the sale of two or more goods or services as a single package for one price.

Which of the following occurs when price is inelastic?

With ________,the seller pays both the cost of loading and transporting the product to the customer.

Value Meal Deals at a fast food restaurant in which you get a sandwich,fries,and a drink for one price are an example of price bundling.

The break-even point is the point at which ________.

A list price is also referred to as a(n)________.

When a beverage maker came out with a new drink and priced it at half price for a month to attract buyers,the company was using a(n)________ strategy.

In a market with ________,the market consists of many buyers and a few sellers who are likely to have similar 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

________ is the assignment of value,or the amount a consumer must give to receive a product.

Exchanges of nonmonetary value do not involve a price.

The method of setting prices in which marketers total all the costs for the product and then add an amount to arrive at the selling price is called ________.

Joe Bergerson makes and sells maple racks for cooling cakes and cookies.Joe knows that it costs $15 to make one rack,and he wants to earn a 25 percent profit on each rack.Which approach to pricing is Joe most likely to use?

In price planning,a firm would be most likely to set a profit objective for which of the following products?

Which of the following is an external influence that affects pricing decisions?

A business using price lining is doing which of the following?

When setting prices,the company must consider its external pricing environment.Describe three components of the pricing environment and how they affect businesses.

As a manufacturer increases price,the ________ drops.

Another name for F.O.B.factory pricing is ________ pricing.

What are the advantages and disadvantages of using demand-based pricing?

What are some of the potential consumer benefits to purchasing items online?

________ refers to the sale of two or more goods or services as a single package for one price.

Which of the following occurs when price is inelastic?

With ________,the seller pays both the cost of loading and transporting the product to the customer.

Value Meal Deals at a fast food restaurant in which you get a sandwich,fries,and a drink for one price are an example of price bundling.

The break-even point is the point at which ________.

A list price is also referred to as a(n)________.

When a beverage maker came out with a new drink and priced it at half price for a month to attract buyers,the company was using a(n)________ strategy.

In a market with ________,the market consists of many buyers and a few sellers who are likely to have similar 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