Question 1

When setting the toll charge for the Confederation Bridge,the pricing strategy included:

Accepted Answer

A) capital costs, operating costs, and long-range profits 
B) the length of the bridge 
C) length of the bridge and capital costs 
D) time of day 
A) capital costs, operating costs, and long-range profits 
B) the length of the bridge 
C) length of the bridge and capital costs 
D) time of day

Question 2

Washburn Guitars broke their guitars into four distinct market segments.Each segment would be priced accordingly.Their mass customization instruments were intended to appeal to

Accepted Answer

A) first-time buyers. 
B) professional musicians. 
C) stars and famous musicians. 
D) intermediate skill players who might (or might not) become professional musicians. 
A) first-time buyers. 
B) professional musicians. 
C) stars and famous musicians. 
D) intermediate skill players who might (or might not) become professional musicians.

Question 3

Demand for a product is likely to be more price elastic if:

Accepted Answer

A) it is considered a necessity. 
B) it has many substitutes. 
C) it has few substitutes. 
D) its price is low relative to a product with which it must be use 
A) it is considered a necessity. 
B) it has many substitutes. 
C) it has few substitutes. 
D) its price is low relative to a product with which it must be use

Question 4

Marketing executives must translate estimates of customer demand into estimates of:

Accepted Answer

A) personnel requirements. 
B) advertising expenditures. 
C) public relations efforts. 
D) revenues. 
A) personnel requirements. 
B) advertising expenditures. 
C) public relations efforts. 
D) revenues.

Question 5

Loss-leader pricing is:

Accepted Answer

A) a pricing method where the price the seller quotes includes all transportation costs. 
B) setting the same price for similar customers who buy the same product and quantities under the same conditions. 
C) deliberately selling a product below its customary price to attract attention to it. 
D) a method of pricing based on a product's tradition, standardized channels of distribution, or other competitive factors. 
A) a pricing method where the price the seller quotes includes all transportation costs. 
B) setting the same price for similar customers who buy the same product and quantities under the same conditions. 
C) deliberately selling a product below its customary price to attract attention to it. 
D) a method of pricing based on a product's tradition, standardized channels of distribution, or other competitive factors.

Question 6

The Precision Writing Instruments Company makes two pen designs - the Cordova design and the Savannah design.These data apply,regardless of which of two pen designs is being implemented.Materials cost per pen is $6.Labour cost per pen is $5.Production overhead is $1,000,000.Advertising and promotion is $1,000,000.Marketing research has estimated the following demand functions for the next year of sales for the two pen designs where Q represents demand in thousands and P represents price.For the Cordova design,Q = 150 - 2.5P.For the Savannah design,Q = 175 - 2.1P.What are the total costs for sales of 500,000 units of the Cordova design?

Accepted Answer

A) $2,000,000 
B) $3,650,000 
C) $5,500,000 
D) $7,500,000 
A) $2,000,000 
B) $3,650,000 
C) $5,500,000 
D) $7,500,000

Question 7

While many daily users of the SCBL complain about the high costs,many tourists have no qualms about paying to use the bridge because of the:

Accepted Answer

A) experience in driving across. 
B) currency conversion rate. 
C) time compared to the ferry. 
D) 24/7 availability. 
A) experience in driving across. 
B) currency conversion rate. 
C) time compared to the ferry. 
D) 24/7 availability.

Question 8

Marketing managers often use break-even analysis to analyze the relationship between total revenue and total cost to determine profitability at various levels of output.What is the break-even formula? Use the formula to calculate how many compact disc players a dealer must sell if her fixed costs are $6,000,unit variable costs are $140,and the selling price is $200.

Accepted Answer

The answer of Marketing managers often use break-even analysis to...

Question 9

Penetration pricing is intended to appeal to which market?

Accepted Answer

A) highly selective quality-seeking consumers 
B) price-insensitive markets 
C) the mass market 
D) specialty goods markets 
A) highly selective quality-seeking consumers 
B) price-insensitive markets 
C) the mass market 
D) specialty goods markets

Question 10

A specific product in a snack vending machine is:

Accepted Answer

A) more likely to be price elastic than price inelastic. 
B) an ideal example of unitary demand. 
C) likely to have a price elasticity equal to 1. 
D) likely to have a price elasticity less than 1. 
A) more likely to be price elastic than price inelastic. 
B) an ideal example of unitary demand. 
C) likely to have a price elasticity equal to 1. 
D) likely to have a price elasticity less than 1.

Question 11

Four types of price discounts are:

Accepted Answer

A) quantity, trade-in, promotional, and cash. 
B) seasonal, functional, cash, and quantity. 
C) quantity, seasonal, promotional, and cash. 
D) cash, trade-in, seasonal, and promotional. 
A) quantity, trade-in, promotional, and cash. 
B) seasonal, functional, cash, and quantity. 
C) quantity, seasonal, promotional, and cash. 
D) cash, trade-in, seasonal, and promotional.

Question 12

The three special adjustments to list or quoted price are:

Accepted Answer

A) discounts; seasonal; geographical adjustments 
B) discounts; allowances; geographical adjustments 
C) seasonal; allowances; geographical adjustments 
D) discounts; allowances; seasonal 
A) discounts; seasonal; geographical adjustments 
B) discounts; allowances; geographical adjustments 
C) seasonal; allowances; geographical adjustments 
D) discounts; allowances; seasonal

Question 13

If you were to buy five dwarf peach trees from the Stark Bro's fruit trees and landscaping catalogue in five separate orders,you will pay $108.99,but if you order its assortment (1 each of five different dwarf peach trees),you pay $89.99.Stark Bro's uses:

Accepted Answer

A) standard markup pricing. 
B) bundle pricing. 
C) prestige pricing. 
D) price lining. 
A) standard markup pricing. 
B) bundle pricing. 
C) prestige pricing. 
D) price lining.

Question 14

If competitive market circumstances are such that there is almost no price competition,no product differentiation,and the only advertising that informs prospects that the product is available,then ____ must exist in this industry.

Accepted Answer

A) a pure monopoly 
B) an oligopoly 
C) monopolistic competition 
D) pure competition 
A) a pure monopoly 
B) an oligopoly 
C) monopolistic competition 
D) pure competition

Question 15

Richard Anderson,an entrepreneur residing in Arizona,noticed that many of his friends and neighbours complained of the intense heat during the summer months.In order to make the heat more bearable,Anderson developed and marketed a simple cooling system that sprayed a fine mist of water into the air.The system attached easily to patio roofs,backyard fences,and even golf carts.Since introducing the product on the market,Anderson has discovered that relatively small changes in the price of the system lead to relatively large changes in demand for his product.The demand for Anderson's product is:

Accepted Answer

A) price inelastic. 
B) price elastic. 
C) price sensitive. 
D) price insensitive. 
A) price inelastic. 
B) price elastic. 
C) price sensitive. 
D) price insensitive.

Question 16

Which of the following statements about cost-oriented approaches is true?

Accepted Answer

A) These methods focus on the demand side of the pricing problem and involve stimulating demand and decreasing revenue. 
B) These methods focus on the supply side of the pricing problem and involve considerations of production and marketing expenses. 
C) Target return on investment is an example of a cost-based method. 
D) Experience curve pricing is simple to use because costs predictably decrease by 25 percent with each doubling of production. 
A) These methods focus on the demand side of the pricing problem and involve stimulating demand and decreasing revenue. 
B) These methods focus on the supply side of the pricing problem and involve considerations of production and marketing expenses. 
C) Target return on investment is an example of a cost-based method. 
D) Experience curve pricing is simple to use because costs predictably decrease by 25 percent with each doubling of production.

Question 17

Brake-O is a franchise company that repairs brakes in cars and trucks.A radio ad for the company warned potential customers to "not fall prey to bait-and-switch schemes." The ad was telling potential customers to:

Accepted Answer

A) report services that violate the Competition Act. 
B) be wary of brake repair services that are priced low because the services may try to sell customers a much higher priced service once the customer enters the store. 
C) avoid doing businesses with services that have initiated a conspiracy among firms in its industry to set prices for a product or service. 
D) not do business at services that have arranged with a particular manufacturer that they will only buy from this manufacturer and from no other. 
A) report services that violate the Competition Act. 
B) be wary of brake repair services that are priced low because the services may try to sell customers a much higher priced service once the customer enters the store. 
C) avoid doing businesses with services that have initiated a conspiracy among firms in its industry to set prices for a product or service. 
D) not do business at services that have arranged with a particular manufacturer that they will only buy from this manufacturer and from no other.

Question 18

From a marketing viewpoint,price is _____ exchanged for the ownership or use of a good or service.

Accepted Answer

A) money or other considerations (including goods but not intangibles and services) 
B) money or other considerations (including other goods and services) 
C) money exclusively earmarked for the transaction 
D) what is recognized as barter within a particular culture 
A) money or other considerations (including goods but not intangibles and services) 
B) money or other considerations (including other goods and services) 
C) money exclusively earmarked for the transaction 
D) what is recognized as barter within a particular culture

Question 19

Rather than billing clients by the hour,some lawyers and their clients agree on a fixed fee based on expected costs plus a profit for the law firm.Which pricing method are they using?

Accepted Answer

A) target pricing 
B) cost-plus pricing 
C) customary pricing 
D) experience curve pricing 
A) target pricing 
B) cost-plus pricing 
C) customary pricing 
D) experience curve pricing

Question 20

In one of its least favourite actions,Amazon.com was caught fiddling with its price tags.Avid Blu-Ray shoppers found that the online store was offering different customers different prices for the same Blu-Ray,and complained vociferously.Amazon was caught red-handed.It was,company officials admitted,trying to see how much it could charge for an item before shoppers balked.No matter what the reasoning behind it,Amazon.com was using:

Accepted Answer

A) horizontal price fixing. 
B) resale price maintenance. 
C) price discrimination. 
D) predatory pricing. 
A) horizontal price fixing. 
B) resale price maintenance. 
C) price discrimination. 
D) predatory pricing.

When setting the toll charge for the Confederation Bridge,the pricing strategy included:

Washburn Guitars broke their guitars into four distinct market segments.Each segment would be priced accordingly.Their mass customization instruments were intended to appeal to

Demand for a product is likely to be more price elastic if:

Marketing executives must translate estimates of customer demand into estimates of:

Loss-leader pricing is:

While many daily users of the SCBL complain about the high costs,many tourists have no qualms about paying to use the bridge because of the:

Penetration pricing is intended to appeal to which market?

A specific product in a snack vending machine is:

Four types of price discounts are:

The three special adjustments to list or quoted price are:

If you were to buy five dwarf peach trees from the Stark Bro's fruit trees and landscaping catalogue in five separate orders,you will pay $108.99,but if you order its assortment (1 each of five different dwarf peach trees),you pay $89.99.Stark Bro's uses:

If competitive market circumstances are such that there is almost no price competition,no product differentiation,and the only advertising that informs prospects that the product is available,then ____ must exist in this industry.

Which of the following statements about cost-oriented approaches is true?

Brake-O is a franchise company that repairs brakes in cars and trucks.A radio ad for the company warned potential customers to "not fall prey to bait-and-switch schemes." The ad was telling potential customers to:

From a marketing viewpoint,price is _____ exchanged for the ownership or use of a good or service.

Rather than billing clients by the hour,some lawyers and their clients agree on a fixed fee based on expected costs plus a profit for the law firm.Which pricing method are they using?

Marketing: Customer Value, satisfaction, relationships, and Experiences

Developing Successful Marketing Strategies

Scanning the Marketing Environment

Ethics and Social Responsibility in Marketing

Consumer Behaviour

Organizational Markets and Buyer Behaviour

Reaching Global Markets

Marketing Research: From Information to Action

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Managing Products and Brands

Managing Services

Managing Marketing Channels and Supply Chains

Retailing

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Personal Selling and Sales Management

Pulling It All Together: The Strategic Marketing Process

Using Social Media to Connect With Consumers

Filters

Exam 13: Pricing Products and Services

When setting the toll charge for the Confederation Bridge,the pricing strategy included:

Washburn Guitars broke their guitars into four distinct market segments.Each segment would be priced accordingly.Their mass customization instruments were intended to appeal to

Demand for a product is likely to be more price elastic if:

Marketing executives must translate estimates of customer demand into estimates of:

Loss-leader pricing is:

While many daily users of the SCBL complain about the high costs,many tourists have no qualms about paying to use the bridge because of the:

Penetration pricing is intended to appeal to which market?

A specific product in a snack vending machine is:

Four types of price discounts are:

The three special adjustments to list or quoted price are:

If you were to buy five dwarf peach trees from the Stark Bro's fruit trees and landscaping catalogue in five separate orders,you will pay $108.99,but if you order its assortment (1 each of five different dwarf peach trees),you pay $89.99.Stark Bro's uses:

If competitive market circumstances are such that there is almost no price competition,no product differentiation,and the only advertising that informs prospects that the product is available,then ____ must exist in this industry.

Which of the following statements about cost-oriented approaches is true?

Brake-O is a franchise company that repairs brakes in cars and trucks.A radio ad for the company warned potential customers to "not fall prey to bait-and-switch schemes." The ad was telling potential customers to:

From a marketing viewpoint,price is _____ exchanged for the ownership or use of a good or service.

Rather than billing clients by the hour,some lawyers and their clients agree on a fixed fee based on expected costs plus a profit for the law firm.Which pricing method are they using?

Marketing: Customer Value, satisfaction, relationships, and Experiences

Developing Successful Marketing Strategies

Scanning the Marketing Environment

Ethics and Social Responsibility in Marketing

Consumer Behaviour

Organizational Markets and Buyer Behaviour

Reaching Global Markets

Marketing Research: From Information to Action

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Managing Products and Brands

Managing Services

Managing Marketing Channels and Supply Chains

Retailing

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Personal Selling and Sales Management

Pulling It All Together: The Strategic Marketing Process

Using Social Media to Connect With Consumers

Filters