Question 1

Pricing decisions are influenced by a variety of legal constraints imposed by federal,state,and local governments.

Accepted Answer

A) True 
 B)False

Question 2

Microeconomics suggests a way of determining prices that assumes a profit-maximization objective.

Accepted Answer

A) True 
 B)False

Question 3

Pricing objectives that focus on attaining a target return on investment are examples of _____ objectives.

Accepted Answer

A)  profitability 
B)  volume 
C)  not-for-profit 
D)  prestige 
A)  profitability 
B)  volume 
C)  not-for-profit 
D)  prestige

Question 4

Price setting is based on the marketer's ability to strike a balance between desired profits,and the customer's perception of a product's value.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a pricing technique that is used to evaluate consumer demand by comparing the number of products that must be sold at a variety of prices to cover total cost with estimates of expected sales at the various prices?

Accepted Answer

A)  Modified breakeven analysis 
B)  Cost-plus analysis 
C)  Incremental-cost analysis 
D)  Segmentation analysis 
A)  Modified breakeven analysis 
B)  Cost-plus analysis 
C)  Incremental-cost analysis 
D)  Segmentation analysis

Question 6

In the global marketplace,prices are directly affected by special types of taxes called tariffs.

Accepted Answer

A) True 
 B)False

Question 7

In which of the following market structures individual firms have the highest control over product prices?

Accepted Answer

A)  Pure competition 
B)  Monopolistic competition 
C)  Oligopoly 
D)  Monopoly 
A)  Pure competition 
B)  Monopolistic competition 
C)  Oligopoly 
D)  Monopoly

Question 8

The increased options available to shoppers combine to create a market characterized by demand elasticity.

Accepted Answer

A) True 
 B)False

Question 9

State fair-trade laws were made invalid by the enactment of the Consumer Goods Pricing Act of 1975.

Accepted Answer

A) True 
 B)False

Question 10

Antitrust legislation has eliminated all monopolies including the temporary monopolies,such as those created through patent protection.

Accepted Answer

A) True 
 B)False

Question 11

Describe the significance of tariffs in the global market place.

Accepted Answer

In the global marketplace,prices are dir

Question 12

Discuss cost-plus pricing.

Accepted Answer

Cost-plus pricing is the practice of add

Question 13

A customary price represents an upper limit on the price of a product imposed by the government in order to control the prices of essential products such as food items.

Accepted Answer

A) True 
 B)False

Question 14

Explain the concept of elasticity of demand.

Accepted Answer

Elasticity is generally defined as the m

Question 15

A price is the exchange value of a good or service.

Accepted Answer

A) True 
 B)False

Question 16

State laws requiring sellers to maintain minimum prices for comparable merchandise are called _____ laws.

Accepted Answer

A)  tax-exemption 
B)  unfair-trade 
C)  price-discrimination 
D)  loss-leader 
A)  tax-exemption 
B)  unfair-trade 
C)  price-discrimination 
D)  loss-leader

Question 17

A pricing technique that is used to determine the number of products that must be sold at a specified price to generate enough revenue to cover total cost is known as _____.

Accepted Answer

A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition 
A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition

Question 18

Explain target-return objectives.

Accepted Answer

Short-run or long-run pricing objectives

Question 19

_____ is a pricing strategy that allows marketers to vary prices based on such factors as demand,even though the cost of providing those goods or services remains the same.

Accepted Answer

A)  Yield management 
B)  Modified breakeven technique 
C)  Marginal cost pricing 
D)  Incremental revenue pricing 
A)  Yield management 
B)  Modified breakeven technique 
C)  Marginal cost pricing 
D)  Incremental revenue pricing

Question 20

Tariffs make it possible for firms to protect their local markets while still setting prices on domestically produced goods well above world market levels.

Accepted Answer

A) True 
 B)False

Exam 18: Pricing Concepts

Pricing decisions are influenced by a variety of legal constraints imposed by federal,state,and local governments.

Microeconomics suggests a way of determining prices that assumes a profit-maximization objective.

Pricing objectives that focus on attaining a target return on investment are examples of _____ objectives.

Price setting is based on the marketer's ability to strike a balance between desired profits,and the customer's perception of a product's value.

Which of the following is a pricing technique that is used to evaluate consumer demand by comparing the number of products that must be sold at a variety of prices to cover total cost with estimates of expected sales at the various prices?

In the global marketplace,prices are directly affected by special types of taxes called tariffs.

In which of the following market structures individual firms have the highest control over product prices?

The increased options available to shoppers combine to create a market characterized by demand elasticity.

State fair-trade laws were made invalid by the enactment of the Consumer Goods Pricing Act of 1975.

Antitrust legislation has eliminated all monopolies including the temporary monopolies,such as those created through patent protection.

Describe the significance of tariffs in the global market place.

Discuss cost-plus pricing.

A customary price represents an upper limit on the price of a product imposed by the government in order to control the prices of essential products such as food items.

Explain the concept of elasticity of demand.

A price is the exchange value of a good or service.

State laws requiring sellers to maintain minimum prices for comparable merchandise are called _____ laws.

A pricing technique that is used to determine the number of products that must be sold at a specified price to generate enough revenue to cover total cost is known as _____.

Explain target-return objectives.

_____ is a pricing strategy that allows marketers to vary prices based on such factors as demand,even though the cost of providing those goods or services remains the same.

Tariffs make it possible for firms to protect their local markets while still setting prices on domestically produced goods well above world market levels.

Marketing: The Art and Science of Satisfying Customers

Strategic Planning in Contemporary Marketing

The Marketing Environment, Ethics, and Social Responsibility

Social Media: Living in the Connected World

E-Business: Managing the Customer Experience

Consumer Behavior

Business-to-Business (B2B)Marketing

Global Marketing

Market Segmentation, Targeting, and Positioning

Marketing Research and Sales Forecasting

Relationship Marketing and Customer Relationship Management (CRM)

Product and Service Strategies

Developing and Managing Brand and Product Categories

Marketing Channels and Supply Chain Management

Retailers, Wholesalers, and Direct Marketers

Integrated Marketing Communications, Advertising, and Public Relations

Personal Selling and Sales Promotion

Pricing Strategies

Your Career in Marketing

Developing an Effective Marketing Plan

Financial Analysis in Marketing

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