Question 1

Historically,prices were

Accepted Answer

A)  the center of attention in almost all marketing strategies. 
B)  analyzed and changed constantly. 
C)  calculated to minimize contribution per unit. 
D)  allowed to vary seasonally as cross-shopping tendencies fluctuated. 
E)  rarely changed except in response to radical shifts in market conditions. 
A)  the center of attention in almost all marketing strategies. 
B)  analyzed and changed constantly. 
C)  calculated to minimize contribution per unit. 
D)  allowed to vary seasonally as cross-shopping tendencies fluctuated. 
E)  rarely changed except in response to radical shifts in market conditions.

Question 2

David manages a Shoney's restaurant.He is considering staying open later in the evening.For David,the variable costs associated with staying open longer hours will include all of the following except

Accepted Answer

A)  ingredients used in preparing food. 
B)  hours worked by cooks. 
C)  rent on the restaurant building. 
D)  energy costs. 
E)  hours worked by the servers. 
A)  ingredients used in preparing food. 
B)  hours worked by cooks. 
C)  rent on the restaurant building. 
D)  energy costs. 
E)  hours worked by the servers.

Question 3

Karen initially charged $80 for an hour-long massage and averaged 20 clients per week.When she raised her price to $100,the number of massages decreased to 15 per week.What is the price elasticity of demand for her service?

Accepted Answer

Price elasticity of demand is the percen

Question 4

A _______ strategy involves accurately measuring all the factors needed to predict sales and profits at various price levels,so that the price level that produces the highest return can be chosen.

Accepted Answer

A)  sales orientation 
B)  target profit 
C)  target return 
D)  status quo 
E)  maximizing profits 
A)  sales orientation 
B)  target profit 
C)  target return 
D)  status quo 
E)  maximizing profits

Question 5

According to a typical demand curve,the higher the price,

Accepted Answer

A)  the greater the income effect. 
B)  the lower the quantity consumers will buy. 
C)  the lower the output of producers. 
D)  the greater the production costs. 
E)  the lower the cross-price elasticity. 
A)  the greater the income effect. 
B)  the lower the quantity consumers will buy. 
C)  the lower the output of producers. 
D)  the greater the production costs. 
E)  the lower the cross-price elasticity.

Question 6

Suppose that a friend asks you to drive him to the airport this weekend so he can catch a flight.He pays you for the gas used driving to the airport,and for the cost of parking the car at the airport while you help him in with his bags.He then declares that you are now "even," since he has fully compensated you for any costs you incurred in helping him get to his flight.From your perspective,what aspects of the "price" of taking your friend to the airport has he omitted?

Accepted Answer

The full sacrifice of taking t

Question 7

If the price for a product increases,the demand for the complementary product will

Accepted Answer

A)  decrease. 
B)  increase. 
C)  stay the same. 
D)  become more elastic. 
E)  become more inelastic. 
A)  decrease. 
B)  increase. 
C)  stay the same. 
D)  become more elastic. 
E)  become more inelastic.

Question 8

In many high-end resort markets,Westin hotels compete directly with Crown Plaza hotels.When it comes to pricing,Westin tends to charge its guests similar rates to what the Crown Plaza hotels charge.Westin is using a _______ pricing strategy.

Accepted Answer

A)  maximizing profits 
B)  target profit 
C)  target return 
D)  competitive parity 
E)  sales oriented 
A)  maximizing profits 
B)  target profit 
C)  target return 
D)  competitive parity 
E)  sales oriented

Question 9

When a firm has a particular profit goal as its overriding concern,it will use target return pricing to meet the profit objective.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is the most logical example of complementary products?

Accepted Answer

A)  hot dogs and hamburgers 
B)  VCRs and DVD players 
C)  hot dogs and hot dog buns 
D)  Honda cars and Toyota cars 
E)  a university and a corporation 
A)  hot dogs and hamburgers 
B)  VCRs and DVD players 
C)  hot dogs and hot dog buns 
D)  Honda cars and Toyota cars 
E)  a university and a corporation

Question 11

Pure competition occurs when there are many firms competing for customers in a given market but their products are differentiated.

Accepted Answer

A) True 
 B)False

Question 12

The observation that consumers are generally more sensitive to price increases than to price decreases suggests that

Accepted Answer

A)  most consumers cannot remember what price they paid the last time they bought a particular product. 
B)  it is easier to lose customers with a price increase than to gain customers with a price decrease. 
C)  most consumers would rather skip buying a product than pay a higher price. 
D)  most consumers are emotionally attached to their favorite products and are unlikely to change, even if the price changes. 
E)  firms gain more customers with price decreases than they lose with price increases. 
A)  most consumers cannot remember what price they paid the last time they bought a particular product. 
B)  it is easier to lose customers with a price increase than to gain customers with a price decrease. 
C)  most consumers would rather skip buying a product than pay a higher price. 
D)  most consumers are emotionally attached to their favorite products and are unlikely to change, even if the price changes. 
E)  firms gain more customers with price decreases than they lose with price increases.

Question 13

When CarMax promises a "no-haggle" pricing structure,it exhibits _________ because it provides additional value to potential used car buyers by making the process simple and easy.

Accepted Answer

A)  a customer orientation 
B)  a status-quo pricing structure 
C)  competitive parity 
D)  a competitor orientation 
E)  consumer parity 
A)  a customer orientation 
B)  a status-quo pricing structure 
C)  competitive parity 
D)  a competitor orientation 
E)  consumer parity

Question 14

There is an old saying "If you have to ask the price of a yacht,you cannot afford it." Products like yachts are most likely to be associated with

Accepted Answer

A)  cross-shopping. 
B)  competitive parity pricing. 
C)  target return value. 
D)  prestige pricing. 
E)  break-even point pricing. 
A)  cross-shopping. 
B)  competitive parity pricing. 
C)  target return value. 
D)  prestige pricing. 
E)  break-even point pricing.

Question 15

In general,prices should not be based on costs because

Accepted Answer

A)  consumers are cost-conscious. 
B)  producers rarely know what their costs are. 
C)  consumers make their purchase decisions based on perceived value. 
D)  producers need to avoid creating a cost competitive parity debate. 
E)  customers are always right. 
A)  consumers are cost-conscious. 
B)  producers rarely know what their costs are. 
C)  consumers make their purchase decisions based on perceived value. 
D)  producers need to avoid creating a cost competitive parity debate. 
E)  customers are always right.

Question 16

The key to successful pricing is to match the product with the consumer's perception of value.

Accepted Answer

A) True 
 B)False

Question 17

There is often only one provider of cable television services in each region of the country: Time Warner is in New York,Comcast is in most of New England,and so forth.When Comcast recently proposed a plan to buy Time Warner,the purchase ultimately could not be completed,mostly due to concerns that it would have caused Comcast to become an overly large ________with too much power.

Accepted Answer

A)  monopolist 
B)  oliogopolist 
C)  pure competitor 
D)  predator 
E)  icon 
A)  monopolist 
B)  oliogopolist 
C)  pure competitor 
D)  predator 
E)  icon

Question 18

The break-even point is estimated by

Accepted Answer

A)  multiplying revenue per unit times the quantity sold. 
B)  dividing fixed contribution per unit by variable costs. 
C)  multiplying fixed costs by contribution per unit. 
D)  dividing fixed costs by contribution per unit. 
E)  dividing variable costs by fixed costs. 
A)  multiplying revenue per unit times the quantity sold. 
B)  dividing fixed contribution per unit by variable costs. 
C)  multiplying fixed costs by contribution per unit. 
D)  dividing fixed costs by contribution per unit. 
E)  dividing variable costs by fixed costs.

Question 19

Marketers spend millions of dollars annually trying to create or reinforce brand loyalty.Brand loyalty changes the demand curve for the firm's products by

Accepted Answer

A)  reducing the price elasticity of demand. 
B)  making demand more oligopolistic and less monopolistic. 
C)  increasing the income effect. 
D)  reducing fixed costs and increasing the gray marketing effect. 
E)  shifting the market from a monopoly to pure competition. 
A)  reducing the price elasticity of demand. 
B)  making demand more oligopolistic and less monopolistic. 
C)  increasing the income effect. 
D)  reducing fixed costs and increasing the gray marketing effect. 
E)  shifting the market from a monopoly to pure competition.

Question 20

Unlike product,promotion,or place,price is the only part of the marketing mix

Accepted Answer

A)  that offers the opportunity for an oligopoly. 
B)  that is subject to gray market manipulation. 
C)  that leads to competition. 
D)  that generates revenue. 
E)  that is determined by the consumer. 
A)  that offers the opportunity for an oligopoly. 
B)  that is subject to gray market manipulation. 
C)  that leads to competition. 
D)  that generates revenue. 
E)  that is determined by the consumer.

Historically,prices were

David manages a Shoney's restaurant.He is considering staying open later in the evening.For David,the variable costs associated with staying open longer hours will include all of the following except

Karen initially charged $80 for an hour-long massage and averaged 20 clients per week.When she raised her price to $100,the number of massages decreased to 15 per week.What is the price elasticity of demand for her service?

A _______ strategy involves accurately measuring all the factors needed to predict sales and profits at various price levels,so that the price level that produces the highest return can be chosen.

According to a typical demand curve,the higher the price,

If the price for a product increases,the demand for the complementary product will

In many high-end resort markets,Westin hotels compete directly with Crown Plaza hotels.When it comes to pricing,Westin tends to charge its guests similar rates to what the Crown Plaza hotels charge.Westin is using a _______ pricing strategy.

When a firm has a particular profit goal as its overriding concern,it will use target return pricing to meet the profit objective.

Which of the following is the most logical example of complementary products?

Pure competition occurs when there are many firms competing for customers in a given market but their products are differentiated.

The observation that consumers are generally more sensitive to price increases than to price decreases suggests that

When CarMax promises a "no-haggle" pricing structure,it exhibits _________ because it provides additional value to potential used car buyers by making the process simple and easy.

There is an old saying "If you have to ask the price of a yacht,you cannot afford it." Products like yachts are most likely to be associated with

In general,prices should not be based on costs because

The key to successful pricing is to match the product with the consumer's perception of value.

The break-even point is estimated by

Marketers spend millions of dollars annually trying to create or reinforce brand loyalty.Brand loyalty changes the demand curve for the firm's products by

Unlike product,promotion,or place,price is the only part of the marketing mix

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Conscious Marketing,corporate Social Responsibility,and Ethics

Analyzing the Marketing Environment

Consumer Behavior

Business-To-Business Marketing

Global Marketing

Segmentation,targeting,and Positioning

Marketing Research

Product,branding,and Packaging Decisions

Developing New Products

Services: the Intangible Product

Supply Chain and Channel Management

Supply Chain and Channel Management

Retailing and Omnichannel Marketing

Integrated Marketing Communications

Advertising,public Relations,and Sales Promotions

Personal Selling and Sales Management

Filters

Exam 14: Pricing Concepts for Establishing Value

Historically,prices were

David manages a Shoney's restaurant.He is considering staying open later in the evening.For David,the variable costs associated with staying open longer hours will include all of the following except

Karen initially charged $80 for an hour-long massage and averaged 20 clients per week.When she raised her price to $100,the number of massages decreased to 15 per week.What is the price elasticity of demand for her service?

A _______ strategy involves accurately measuring all the factors needed to predict sales and profits at various price levels,so that the price level that produces the highest return can be chosen.

According to a typical demand curve,the higher the price,

If the price for a product increases,the demand for the complementary product will

In many high-end resort markets,Westin hotels compete directly with Crown Plaza hotels.When it comes to pricing,Westin tends to charge its guests similar rates to what the Crown Plaza hotels charge.Westin is using a _______ pricing strategy.

When a firm has a particular profit goal as its overriding concern,it will use target return pricing to meet the profit objective.

Which of the following is the most logical example of complementary products?

Pure competition occurs when there are many firms competing for customers in a given market but their products are differentiated.

The observation that consumers are generally more sensitive to price increases than to price decreases suggests that

When CarMax promises a "no-haggle" pricing structure,it exhibits _________ because it provides additional value to potential used car buyers by making the process simple and easy.

There is an old saying "If you have to ask the price of a yacht,you cannot afford it." Products like yachts are most likely to be associated with

In general,prices should not be based on costs because

The key to successful pricing is to match the product with the consumer's perception of value.

The break-even point is estimated by

Marketers spend millions of dollars annually trying to create or reinforce brand loyalty.Brand loyalty changes the demand curve for the firm's products by

Unlike product,promotion,or place,price is the only part of the marketing mix

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Conscious Marketing,corporate Social Responsibility,and Ethics

Analyzing the Marketing Environment

Consumer Behavior

Business-To-Business Marketing

Global Marketing

Segmentation,targeting,and Positioning

Marketing Research

Product,branding,and Packaging Decisions

Developing New Products

Services: the Intangible Product

Supply Chain and Channel Management

Supply Chain and Channel Management

Retailing and Omnichannel Marketing

Integrated Marketing Communications

Advertising,public Relations,and Sales Promotions

Personal Selling and Sales Management

Filters