Question 1

Which of the following statements about the break-even point is true?

Accepted Answer

A)  It is used to determine how many more units need to be sold to increase market share by a specific amount. 
B)  It is a technique used to calculate fixed costs. 
C)  It determines the amount of retained earnings a company will have during an accounting period. 
D)  It is a technique marketers use to examine the relationship between supply and demand. 
E)  It is calculated using contribution per unit costs and total fixed costs. 
A)  It is used to determine how many more units need to be sold to increase market share by a specific amount. 
B)  It is a technique used to calculate fixed costs. 
C)  It determines the amount of retained earnings a company will have during an accounting period. 
D)  It is a technique marketers use to examine the relationship between supply and demand. 
E)  It is calculated using contribution per unit costs and total fixed costs.

Question 2

A break-even analysis helps marketers understand the relationship between price and demand.

Accepted Answer

A) True 
 B)False

Question 3

The Robinson-Patman Act does NOT include regulations that ________.

Accepted Answer

A)  apply to resellers 
B)  protect final consumers 
C)  prohibit selling the same product to different retailers at different prices 
D)  prohibit offering such "extras" as discounts, rebates, premiums, and coupons to some but not all customers 
E)  prohibit price discrimination in interstate commerce 
A)  apply to resellers 
B)  protect final consumers 
C)  prohibit selling the same product to different retailers at different prices 
D)  prohibit offering such "extras" as discounts, rebates, premiums, and coupons to some but not all customers 
E)  prohibit price discrimination in interstate commerce

Question 4

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 5

Which of the following statements about price is true?

Accepted Answer

A)  Pricing is the least important marketing mix element. 
B)  Price is always a monetary value. 
C)  Price can mean exchange of nonmonetary goods or services. 
D)  Most consumers believe price has little influence on their purchase decisions. 
E)  Pricing is unaffected by changes in the business cycle. 
A)  Pricing is the least important marketing mix element. 
B)  Price is always a monetary value. 
C)  Price can mean exchange of nonmonetary goods or services. 
D)  Most consumers believe price has little influence on their purchase decisions. 
E)  Pricing is unaffected by changes in the business cycle.

Question 6

Why are prestige products often 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 7

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

Accepted Answer

Yes. A lower price will produc

Question 8

When Joe's Coffee Nook raised the price of a latte, Joe noticed a substantial change in his daily latte sales. 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)  cross-elastic 
D)  elastic 
E)  inelastic 
A)  static 
B)  supply-driven 
C)  cross-elastic 
D)  elastic 
E)  inelastic

Question 9

How do consumers benefit from price bundling? Give an example of price bundling.

Accepted Answer

The advantage for the consumer is that s

Question 10

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

Accepted Answer

A)  freight absorption pricing 
B)  peak load pricing 
C)  F.O.B. origin pricing 
D)  F.O.B. delivered pricing 
E)  F.O.B. factory pricing 
A)  freight absorption pricing 
B)  peak load pricing 
C)  F.O.B. origin pricing 
D)  F.O.B. delivered pricing 
E)  F.O.B. factory pricing

Question 11

Unlike other currencies, Bitcoin is not controlled by a single government entity, such as the U.S. Treasury.

Accepted Answer

A) True 
 B)False

Question 12

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

Question 13

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 14

Which pricing tactic calls for offering three similar products, one that is lower priced and less attractive and two that are comparable but more expensive?

Accepted Answer

A)  peak load pricing 
B)  decoy pricing 
C)  bottom-of-the-pyramid pricing 
D)  keystoning 
E)  high/low pricing 
A)  peak load pricing 
B)  decoy pricing 
C)  bottom-of-the-pyramid pricing 
D)  keystoning 
E)  high/low pricing

Question 15

________ is a business strategy of offering a basic version of a product free of charge and then charging for upgraded versions of the product.

Accepted Answer

A)  Prestige pricing 
B)  Freemium 
C)  Price segmentation 
D)  Reverse marketing 
E)  Dynamic marketing 
A)  Prestige pricing 
B)  Freemium 
C)  Price segmentation 
D)  Reverse marketing 
E)  Dynamic marketing

Question 16

________ is a pricing tactic a firm uses for two products that work only when used together. The firm sells one item at a very low price and then makes its profit on the second high-margin item.

Accepted Answer

A)  Two-part pricing 
B)  Price bundling 
C)  Captive pricing 
D)  Decoy pricing 
E)  Keystoning 
A)  Two-part pricing 
B)  Price bundling 
C)  Captive pricing 
D)  Decoy pricing 
E)  Keystoning

Question 17

If a product has a close substitute, its demand will likely be ________.

Accepted Answer

A)  inelastic 
B)  elastic 
C)  cross-elastic 
D)  fixed 
E)  break-even 
A)  inelastic 
B)  elastic 
C)  cross-elastic 
D)  fixed 
E)  break-even

Question 18

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

Accepted Answer

A)  captive 
B)  CIF pricing 
C)  F.O.B. origin 
D)  F.O.B. delivered 
E)  freight absorption pricing 
A)  captive 
B)  CIF pricing 
C)  F.O.B. origin 
D)  F.O.B. delivered 
E)  freight absorption pricing

Question 19

The changes in prices of other products affect the demand for an item. This is a phenomenon called ________.

Accepted Answer

A)  cross-elasticity of demand 
B)  complementary elasticity 
C)  interdependent elasticity 
D)  substitute demand 
E)  variable demand 
A)  cross-elasticity of demand 
B)  complementary elasticity 
C)  interdependent elasticity 
D)  substitute demand 
E)  variable demand

Question 20

A quantity discount is a price reduction to buyers who purchase ________.

Accepted Answer

A)  frequently 
B)  large volumes 
C)  close outs 
D)  bundled products 
E)  seasonal products 
A)  frequently 
B)  large volumes 
C)  close outs 
D)  bundled products 
E)  seasonal products

Which of the following statements about the break-even point is true?

A break-even analysis helps marketers understand the relationship between price and demand.

The Robinson-Patman Act does NOT include regulations that ________.

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

Which of the following statements about price is true?

Why are prestige products often an exception to the law of demand?

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

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

How do consumers benefit from price bundling? Give an example of price bundling.

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

Unlike other currencies, Bitcoin is not controlled by a single government entity, such as the U.S. Treasury.

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

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

Which pricing tactic calls for offering three similar products, one that is lower priced and less attractive and two that are comparable but more expensive?

________ is a business strategy of offering a basic version of a product free of charge and then charging for upgraded versions of the product.

________ is a pricing tactic a firm uses for two products that work only when used together. The firm sells one item at a very low price and then makes its profit on the second high-margin item.

If a product has a close substitute, its demand will likely be ________.

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

The changes in prices of other products affect the demand for an item. This is a phenomenon called ________.

A quantity discount is a price reduction to buyers who purchase ________.

Welcome to the World of Marketing: Create and Deliver Value

Global, Ethical, and Sustainable Marketing

Strategic Market Planning

Market Research

Marketing Analytics: Welcome to the Era of Big Data

Understand Consumer and Business Markets

Segmentation, Target Marketing, and Positioning

Product I: Innovation and New Product Development

Product Ii: Product Strategy, Branding, and Product Management

Deliver the Goods: Determine the Distribution Strategy

Deliver the Customer Experience: Goods and Services Via Bricks and Clicks

Promotion I: Advertising: One to Many Marketing Communications

Promotion II: Social Media Marketing and Other Communication Tools

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Exam 10: Price: What Is the Value Proposition Worth

Which of the following statements about the break-even point is true?

A break-even analysis helps marketers understand the relationship between price and demand.

The Robinson-Patman Act does NOT include regulations that ________.

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

Which of the following statements about price is true?

Why are prestige products often an exception to the law of demand?

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

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

How do consumers benefit from price bundling? Give an example of price bundling.

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

Unlike other currencies, Bitcoin is not controlled by a single government entity, such as the U.S. Treasury.

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

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

Which pricing tactic calls for offering three similar products, one that is lower priced and less attractive and two that are comparable but more expensive?

________ is a business strategy of offering a basic version of a product free of charge and then charging for upgraded versions of the product.

________ is a pricing tactic a firm uses for two products that work only when used together. The firm sells one item at a very low price and then makes its profit on the second high-margin item.

If a product has a close substitute, its demand will likely be ________.

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

The changes in prices of other products affect the demand for an item. This is a phenomenon called ________.

A quantity discount is a price reduction to buyers who purchase ________.

Welcome to the World of Marketing: Create and Deliver Value

Global, Ethical, and Sustainable Marketing

Strategic Market Planning

Market Research

Marketing Analytics: Welcome to the Era of Big Data

Understand Consumer and Business Markets

Segmentation, Target Marketing, and Positioning

Product I: Innovation and New Product Development

Product Ii: Product Strategy, Branding, and Product Management

Deliver the Goods: Determine the Distribution Strategy

Deliver the Customer Experience: Goods and Services Via Bricks and Clicks

Promotion I: Advertising: One to Many Marketing Communications

Promotion II: Social Media Marketing and Other Communication Tools

Filters