Question 1

________ 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 2

The Credit Card Responsibility and Disclosure Act and the Affordable Care Act are both examples of government regulations that directly affect prices.

Accepted Answer

A) True 
 B)False

Question 3

Johnson Boats wants to introduce a new model of boat into mature markets in highly developed countries with the goal of quickly gaining mass-market share. As a consultant, you should recommend a ________ pricing strategy.

Accepted Answer

A)  skimming 
B)  penetration 
C)  price leadership 
D)  cost-plus 
E)  value 
A)  skimming 
B)  penetration 
C)  price leadership 
D)  cost-plus 
E)  value

Question 4

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 price 
B)  trial pricing 
C)  intensive pricing 
D)  penetration pricing 
E)  high/low 
A)  skimming price 
B)  trial pricing 
C)  intensive pricing 
D)  penetration pricing 
E)  high/low

Question 5

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 6

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 7

What are the advantages of digital currencies such as Bitcoin?

Accepted Answer

Digital currencies such as Bitcoin have

Question 8

Price leadership strategies provide a legal way for firms to agree on prices without ever explicitly coordinating rates.

Accepted Answer

A) True 
 B)False

Question 9

The value of something we give up in order to obtain something else is referred to as a(n) ________.

Accepted Answer

A)  transformation cost 
B)  opportunity cost 
C)  exchange 
D)  variable cost 
E)  marginal cost 
A)  transformation cost 
B)  opportunity cost 
C)  exchange 
D)  variable cost 
E)  marginal cost

Question 10

Many people rely on a prescription drug to control their cholesterol. An increase in the price of the drug would have little effect on the quantity demanded because there are no substitutes for the drug and because people who take it have no choice but to continue taking it if they wish to stay healthy. The demand for the cholesterol drug is ________.

Accepted Answer

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

Question 11

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 20 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 12

Using ________, a company raises the price of its product as demand goes up and lowers it as demand declines.

Accepted Answer

A)  price skimming 
B)  decoy pricing 
C)  surge pricing 
D)  keystoning 
E)  high/low pricing 
A)  price skimming 
B)  decoy pricing 
C)  surge pricing 
D)  keystoning 
E)  high/low pricing

Question 13

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

Accepted Answer

Consumers can potentially save on the ac

Question 14

Sellers should know that the less elastic the demand for their product, the more advantageous it is for them to ________.

Accepted Answer

A)  drop the price 
B)  raise the price 
C)  maintain the price 
D)  discontinue the item 
E)  bundle the item with another product 
A)  drop the price 
B)  raise the price 
C)  maintain the price 
D)  discontinue the item 
E)  bundle the item with another product

Question 15

What is payment pricing and why is it effective?

Accepted Answer

Payment pricing refers to the practice o

Question 16

According to the law of demand, which of the following is true?

Accepted Answer

A)  If prices decrease, customers will buy more. 
B)  Customers are not aware of small price changes. 
C)  The effect on demand from changes in price cannot be accurately predicted. 
D)  Demand equals supply. 
E)  If prices increase, customers will buy more. 
A)  If prices decrease, customers will buy more. 
B)  Customers are not aware of small price changes. 
C)  The effect on demand from changes in price cannot be accurately predicted. 
D)  Demand equals supply. 
E)  If prices increase, customers will buy more.

Question 17

Often consumers base their perception of price on what they perceive to be the customary or ________.

Accepted Answer

A)  dynamic price 
B)  fair price 
C)  target price 
D)  list price 
E)  assimilated price 
A)  dynamic price 
B)  fair price 
C)  target price 
D)  list price 
E)  assimilated price

Question 18

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 19

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

Question 20

Which of the following occurs when manufacturers or wholesalers attempt to force retailers to charge a certain price for their products?

Accepted Answer

A)  horizontal price-fixing 
B)  vertical price-fixing 
C)  predatory pricing 
D)  internal reference pricing 
E)  assimilation pricing 
A)  horizontal price-fixing 
B)  vertical price-fixing 
C)  predatory pricing 
D)  internal reference pricing 
E)  assimilation pricing

________ do not vary with the number of units produced.

The Credit Card Responsibility and Disclosure Act and the Affordable Care Act are both examples of government regulations that directly affect prices.

Johnson Boats wants to introduce a new model of boat into mature markets in highly developed countries with the goal of quickly gaining mass-market share. As a consultant, you should recommend a ________ pricing strategy.

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

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

As a manufacturer increases price, the ________ drops.

What are the advantages of digital currencies such as Bitcoin?

Price leadership strategies provide a legal way for firms to agree on prices without ever explicitly coordinating rates.

The value of something we give up in order to obtain something else is referred to as a(n) ________.

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 20 percent profit on each rack. Which approach to pricing is Joe most likely to use?

Using ________, a company raises the price of its product as demand goes up and lowers it as demand declines.

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

Sellers should know that the less elastic the demand for their product, the more advantageous it is for them to ________.

What is payment pricing and why is it effective?

According to the law of demand, which of the following is true?

Often consumers base their perception of price on what they perceive to be the customary or ________.

Which of the following is true about the demand curve?

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

Which of the following occurs when manufacturers or wholesalers attempt to force retailers to charge a certain price for their products?

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

________ do not vary with the number of units produced.

The Credit Card Responsibility and Disclosure Act and the Affordable Care Act are both examples of government regulations that directly affect prices.

Johnson Boats wants to introduce a new model of boat into mature markets in highly developed countries with the goal of quickly gaining mass-market share. As a consultant, you should recommend a ________ pricing strategy.

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

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

As a manufacturer increases price, the ________ drops.

What are the advantages of digital currencies such as Bitcoin?

Price leadership strategies provide a legal way for firms to agree on prices without ever explicitly coordinating rates.

The value of something we give up in order to obtain something else is referred to as a(n) ________.

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 20 percent profit on each rack. Which approach to pricing is Joe most likely to use?

Using ________, a company raises the price of its product as demand goes up and lowers it as demand declines.

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

Sellers should know that the less elastic the demand for their product, the more advantageous it is for them to ________.

What is payment pricing and why is it effective?

According to the law of demand, which of the following is true?

Often consumers base their perception of price on what they perceive to be the customary or ________.

Which of the following is true about the demand curve?

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

Which of the following occurs when manufacturers or wholesalers attempt to force retailers to charge a certain price for their products?

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