Question 1

________ describes how responsive demand will be to a change in price.

Accepted Answer

A) Price elasticity 
B) Break-even pricing 
C) The break-even chart 
D) Target costing 
E) Supply 
A) Price elasticity 
B) Break-even pricing 
C) The break-even chart 
D) Target costing 
E) Supply A

Question 2

Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

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 B

Question 3

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products, the manufacturer is able to reduce the main product's price to make it more competitive.

Accepted Answer

A) True 
 B)False  True

Question 4

Give two examples of by-product pricing.

Accepted Answer

By-product pricing is setting a price fo

Question 5

With product bundle pricing, sellers can combine several products and offer the bundle ________.

Accepted Answer

A) as a working unit 
B) at a reduced price 
C) as a complete self-service package 
D) as a reward to loyal customers 
E) as segmented pricing 
A) as a working unit 
B) at a reduced price 
C) as a complete self-service package 
D) as a reward to loyal customers 
E) as segmented pricing

Question 6

Functional discounts (offering a larger discount to wholesalers than to retailers)are legal Canada.

Accepted Answer

A) True 
 B)False

Question 7

The practice of a manufacturer requiring a dealer to charge a set retail price for its product, also known as retail price maintenance, is illegal.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following economic factors does not have a strong impact on a firm's pricing strategy?

Accepted Answer

A) an economic boom 
B) the reseller's reaction to price changes 
C) an economic recession 
D) inflation 
E) interest rates 
A) an economic boom 
B) the reseller's reaction to price changes 
C) an economic recession 
D) inflation 
E) interest rates

Question 9

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

Question 10

Product costs set a floor to a product's price; consumer perceptions of the product's value set the ceiling.

Accepted Answer

A) True 
 B)False

Question 11

Compare pure competition with monopolistic competition conditions.

Accepted Answer

Under pure competition, the market consi

Question 12

To offset the pricing of its main product, the Toronto Zoo has partnered with a waste management company to turn animal waste into methane gas to be used to produce power. This is an example of ________.

Accepted Answer

A) product line pricing 
B) optional-product pricing 
C) captive-product pricing 
D) by-product pricing 
E) allowance pricing 
A) product line pricing 
B) optional-product pricing 
C) captive-product pricing 
D) by-product pricing 
E) allowance pricing

Question 13

When Johnny On the Spot, a house mover, sells boxes and pads that must be used in moving a household's furniture, the company is practicing by-product pricing.

Accepted Answer

A) True 
 B)False

Question 14

Quills, Inc., is a manufacturer of ball-point pens, pencils, and stationery. The firm's primary distribution strategy is to sell in large volumes to office supply stores and large discount chains. Charles Powell, CEO of Quills, had hoped to manufacture and sell in large enough quantities that prices could be held low. However, in the first several months, the firm experimented with the price portion of its marketing mix in an effort to cater to a number of markets.
-How could product bundle pricing work for Quills?

Accepted Answer

Certain styles of stationery and matchin

Question 15

Market-skimming pricing would likely be most effective in selling ________.

Accepted Answer

A) any convenience item 
B) an electronic device for which research and development must be recouped 
C) shampoo and bath soap 
D) anything easily copied by competitors 
E) most items at EDLP retailers such as Walmart 
A) any convenience item 
B) an electronic device for which research and development must be recouped 
C) shampoo and bath soap 
D) anything easily copied by competitors 
E) most items at EDLP retailers such as Walmart

Question 16

Compare the practices of price-fixing and predatory pricing, explaining why each is prohibited by law.

Accepted Answer

Many federal, provincial/territorial, an

Question 17

Consumers use price less to judge the quality of a product when they ________.

Accepted Answer

A) lack information 
B) lack skills to use the product 
C) have experience with the product 
D) are shopping for a specialty item 
E) cannot physically examine the product 
A) lack information 
B) lack skills to use the product 
C) have experience with the product 
D) are shopping for a specialty item 
E) cannot physically examine the product

Question 18

Why is price considered to be one of the most flexible elements of the marketing mix?

Accepted Answer

Price is the sum of all the values that

Question 19

The New Age Gallery has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________.

Accepted Answer

A) time-based pricing 
B) location pricing 
C) customer-segment pricing 
D) revenue management pricing 
E) generational pricing 
A) time-based pricing 
B) location pricing 
C) customer-segment pricing 
D) revenue management pricing 
E) generational pricing

Question 20

Which pricing mix strategy should be used in relation to saleable scrap materials, and how does this strategy function?

Accepted Answer

When using by-product pricing, a manufac

________ describes how responsive demand will be to a change in price.

Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products, the manufacturer is able to reduce the main product's price to make it more competitive.

Give two examples of by-product pricing.

With product bundle pricing, sellers can combine several products and offer the bundle ________.

Functional discounts (offering a larger discount to wholesalers than to retailers)are legal Canada.

The practice of a manufacturer requiring a dealer to charge a set retail price for its product, also known as retail price maintenance, is illegal.

Which of the following economic factors does not have a strong impact on a firm's pricing strategy?

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 ________.

Product costs set a floor to a product's price; consumer perceptions of the product's value set the ceiling.

Compare pure competition with monopolistic competition conditions.

To offset the pricing of its main product, the Toronto Zoo has partnered with a waste management company to turn animal waste into methane gas to be used to produce power. This is an example of ________.

When Johnny On the Spot, a house mover, sells boxes and pads that must be used in moving a household's furniture, the company is practicing by-product pricing.

Market-skimming pricing would likely be most effective in selling ________.

Compare the practices of price-fixing and predatory pricing, explaining why each is prohibited by law.

Consumers use price less to judge the quality of a product when they ________.

Why is price considered to be one of the most flexible elements of the marketing mix?

The New Age Gallery has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________.

Which pricing mix strategy should be used in relation to saleable scrap materials, and how does this strategy function?

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Sustainable Marketing, Social Responsibility and Ethics

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Understanding Consumer and Business Buyer Behaviour

Segmentation, Targeting, and Positioning

Developing and Managing Products and Services

Brand Strategy and Management

Marketing Channels

Retailing and Wholesaling

Communicating Customer Value: Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

The Global Marketplace

Filters

Exam 10: Pricing: Understanding and Capturing Customer Value

________ describes how responsive demand will be to a change in price.

Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products, the manufacturer is able to reduce the main product's price to make it more competitive.

Give two examples of by-product pricing.

With product bundle pricing, sellers can combine several products and offer the bundle ________.

Functional discounts (offering a larger discount to wholesalers than to retailers)are legal Canada.

The practice of a manufacturer requiring a dealer to charge a set retail price for its product, also known as retail price maintenance, is illegal.

Which of the following economic factors does not have a strong impact on a firm's pricing strategy?

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 ________.

Product costs set a floor to a product's price; consumer perceptions of the product's value set the ceiling.

Compare pure competition with monopolistic competition conditions.

To offset the pricing of its main product, the Toronto Zoo has partnered with a waste management company to turn animal waste into methane gas to be used to produce power. This is an example of ________.

When Johnny On the Spot, a house mover, sells boxes and pads that must be used in moving a household's furniture, the company is practicing by-product pricing.

Market-skimming pricing would likely be most effective in selling ________.

Compare the practices of price-fixing and predatory pricing, explaining why each is prohibited by law.

Consumers use price less to judge the quality of a product when they ________.

Why is price considered to be one of the most flexible elements of the marketing mix?

The New Age Gallery has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________.

Which pricing mix strategy should be used in relation to saleable scrap materials, and how does this strategy function?

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Sustainable Marketing, Social Responsibility and Ethics

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Understanding Consumer and Business Buyer Behaviour

Segmentation, Targeting, and Positioning

Developing and Managing Products and Services

Brand Strategy and Management

Marketing Channels

Retailing and Wholesaling

Communicating Customer Value: Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

The Global Marketplace

Filters