Question 1

Creative marketers engage in value-pricing,which is the practice of simultaneously increasing product and service benefits and __________.

Accepted Answer

A)  increasing costs 
B)  increasing price 
C)  increasing advertising 
D)  decreasing costs 
E)  maintaining or decreasing price 
A)  increasing costs 
B)  increasing price 
C)  increasing advertising 
D)  decreasing costs 
E)  maintaining or decreasing price

Question 2

Total revenue refers to

Accepted Answer

A)  the profit made from selling a product or service. 
B)  the net gain in sales revenue if the unit price is lowered. 
C)  the least number of units sold needed to cover product, distribution, and promotional costs. 
D)  the amount by which marginal costs exceed fixed costs. 
E)  the total money received from the sale of a product. 
A)  the profit made from selling a product or service. 
B)  the net gain in sales revenue if the unit price is lowered. 
C)  the least number of units sold needed to cover product, distribution, and promotional costs. 
D)  the amount by which marginal costs exceed fixed costs. 
E)  the total money received from the sale of a product.

Question 3

Price refers to

Accepted Answer

A)  the value assigned to the exchange of products and services for other products and services. 
B)  the value judgment made by both the buyer and seller regarding an item's worth. 
C)  the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service. 
D)  the value assessed for the benefits of using a product or service. 
E)  the highest monetary value a customer is willing to pay for a product or service. 
A)  the value assigned to the exchange of products and services for other products and services. 
B)  the value judgment made by both the buyer and seller regarding an item's worth. 
C)  the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service. 
D)  the value assessed for the benefits of using a product or service. 
E)  the highest monetary value a customer is willing to pay for a product or service.

Question 4

Figure 13-10A
-Figure 13-10A above,"Z" represents

Accepted Answer

A)  MR = MC 
B)  fixed cost 
C)  marginal cost 
D)  variable cost 
E)  marginal revenue 
A)  MR = MC 
B)  fixed cost 
C)  marginal cost 
D)  variable cost 
E)  marginal revenue

Question 5

sum of the expenses of a firm that is stable and does not change with the quantity of the product that is produced and sold is referred to as

Accepted Answer

A)  fixed cost. 
B)  total cost. 
C)  variable cost. 
D)  marginal cost. 
E)  overhead cost. 
A)  fixed cost. 
B)  total cost. 
C)  variable cost. 
D)  marginal cost. 
E)  overhead cost.

Question 6

Which of the following statements about the factors that influence demand is true?

Accepted Answer

A)  As the availability of close substitutes increases, the demand for a product increases. 
B)  As real consumer income increases, the demand for a product increases. 
C)  As the price of close substitutes increases, the demand for a product declines. 
D)  Changing consumer tastes have little impact on the demand for a product. 
E)  As real consumer income decreases, the demand for a product increases. 
A)  As the availability of close substitutes increases, the demand for a product increases. 
B)  As real consumer income increases, the demand for a product increases. 
C)  As the price of close substitutes increases, the demand for a product declines. 
D)  Changing consumer tastes have little impact on the demand for a product. 
E)  As real consumer income decreases, the demand for a product increases.

Question 7

Figure 13-2
-Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would assess the constraints on the demand for the product class and brand?

Accepted Answer

A)  "A" 
B)  "B" 
C)  "C" 
D)  "D" 
E)  "E" 
A)  "A" 
B)  "B" 
C)  "C" 
D)  "D" 
E)  "E"

Question 8

Washburn Guitars markets its guitars to four distinct market segments.The firm's one-of-kind custom instruments are targeted at

Accepted Answer

A)  first-time buyers. 
B)  professional musicians. 
C)  stars and famous musicians. 
D)  large institutional buyers such as high school and collegiate band programs. 
E)  intermediate-skill players who may become professional musicians. 
A)  first-time buyers. 
B)  professional musicians. 
C)  stars and famous musicians. 
D)  large institutional buyers such as high school and collegiate band programs. 
E)  intermediate-skill players who may become professional musicians.

Question 9

Economists have identified four types of competitive markets: pure monopoly,pure competition,oligopoly,and __________.

Accepted Answer

A)  capitalism 
B)  socialism 
C)  monopolistic competition 
D)  consumer-dominated 
E)  government-dominated 
A)  capitalism 
B)  socialism 
C)  monopolistic competition 
D)  consumer-dominated 
E)  government-dominated

Question 10

Which of the following represent elements of Step 2 of the price-setting process?

Accepted Answer

A)  profit, market share, and survival 
B)  estimation of demand, sales revenue, and price elasticity 
C)  cost estimation, marginal analysis, and break-even analysis 
D)  demand for the product class and brand, newness of the product, and competition 
E)  market segmentation targeting, and positioning 
A)  profit, market share, and survival 
B)  estimation of demand, sales revenue, and price elasticity 
C)  cost estimation, marginal analysis, and break-even analysis 
D)  demand for the product class and brand, newness of the product, and competition 
E)  market segmentation targeting, and positioning

Question 11

increase value,marketers may __________,decrease price,or do both.

Accepted Answer

A)  decrease benefits 
B)  increase benefits 
C)  increase price 
D)  increase advertising 
E)  do nothing and let the perceived value of the item increase as it matures in the life cycle 
A)  decrease benefits 
B)  increase benefits 
C)  increase price 
D)  increase advertising 
E)  do nothing and let the perceived value of the item increase as it matures in the life cycle

Question 12

Break-even analysis refers to

Accepted Answer

A)  a process that investigates the difference between marginal revenue and marginal cost. 
B)  a method of determining just how much a consumer is willing to pay for a product or service. 
C)  a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output. 
D)  the process of determining the quantity of product consumers will buy relative to the quantity produced by the firm. 
E)  the graph that shows the maximum number of products consumers will buy at a given price. 
A)  a process that investigates the difference between marginal revenue and marginal cost. 
B)  a method of determining just how much a consumer is willing to pay for a product or service. 
C)  a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output. 
D)  the process of determining the quantity of product consumers will buy relative to the quantity produced by the firm. 
E)  the graph that shows the maximum number of products consumers will buy at a given price.

Question 13

total money received from the sale of a product is referred to as __________.

Accepted Answer

A)  profit 
B)  total revenue 
C)  average revenue 
D)  marginal revenue 
E)  derived demand 
A)  profit 
B)  total revenue 
C)  average revenue 
D)  marginal revenue 
E)  derived demand

Question 14

General Motors,Ford,and Chrysler have all recently experienced financial distress because

Accepted Answer

A)  the Asian markets such as China, India, and Japan entered the North American market and captured an even larger share. 
B)  the value pricing strategy used by the "big three" was flawed and North Americans' perceptions of value had changed. 
C)  they were continually using deceptive pricing when establishing the manufacturer's suggested retail price on their vehicles. 
D)  their costs got out of control, causing their total costs to exceed their total revenues. 
E)  their product line was not changing with the times in order to meet changing environmental standards regarding emissions. 
A)  the Asian markets such as China, India, and Japan entered the North American market and captured an even larger share. 
B)  the value pricing strategy used by the "big three" was flawed and North Americans' perceptions of value had changed. 
C)  they were continually using deceptive pricing when establishing the manufacturer's suggested retail price on their vehicles. 
D)  their costs got out of control, causing their total costs to exceed their total revenues. 
E)  their product line was not changing with the times in order to meet changing environmental standards regarding emissions.

Question 15

price of tickets to a Los Angeles Lakers game can be attributed to

Accepted Answer

A)  the scalping of tickets on StubHub. 
B)  sales taxes charged by online ticket sellers like Ticketmaster. 
C)  the popularity of players like Candace Parker of the Los Angeles Sparks. 
D)  the rise of online pricing in resold tickets and the supply-demand interaction for high-interest sporting events. 
E)  losses due to declines in sales of television rights. 
A)  the scalping of tickets on StubHub. 
B)  sales taxes charged by online ticket sellers like Ticketmaster. 
C)  the popularity of players like Candace Parker of the Los Angeles Sparks. 
D)  the rise of online pricing in resold tickets and the supply-demand interaction for high-interest sporting events. 
E)  losses due to declines in sales of television rights.

Question 16

Estimating cost,conducting a marginal analysis,and performing a break-even analysis are issues that would be addressed during __________ of the price-setting process.

Accepted Answer

A)  Step 1 
B)  Step 2 
C)  Step 3 
D)  Step 4 
E)  Step 5 
A)  Step 1 
B)  Step 2 
C)  Step 3 
D)  Step 4 
E)  Step 5

Question 17

Washburn sells their guitars through a number of channels such as chains and online dealers,but they feel it is their independent dealers who sell the guitar for them.In recognition of their hard work,Washburn takes a smaller profit margin from them because they have to do more work.In essence,this special adjustment to the list price or quoted price is an example of a(n)

Accepted Answer

A)  quantity discount. 
B)  seasonal discount. 
C)  trade discount. 
D)  cash discount. 
E)  promotional allowance. 
A)  quantity discount. 
B)  seasonal discount. 
C)  trade discount. 
D)  cash discount. 
E)  promotional allowance.

Question 18

the CEO of the Clorox Company were to say,"We want to control 60 percent of the bleach market within the next five years," he would have set a __________ pricing objective.

Accepted Answer

A)  profit 
B)  sales 
C)  unit volume 
D)  market share 
E)  social responsibility 
A)  profit 
B)  sales 
C)  unit volume 
D)  market share 
E)  social responsibility

Question 19

According to the price equation,final price equals __________ minus incentives and allowances plus extra fees.

Accepted Answer

A)  salaries 
B)  list price 
C)  profits 
D)  trade-ins 
E)  taxes 
A)  salaries 
B)  list price 
C)  profits 
D)  trade-ins 
E)  taxes

Question 20

demand curve graph typically appears as

Accepted Answer

A)  a parabola with the apex representing the highest price that can be charged without losing customers. 
B)  a diagonal line going from upper left to lower right demonstrating that as price goes down, demand goes up. 
C)  an inverted parabola with the lowest point representing the lowest price that can be charged and still meet the company's profit objectives. 
D)  a diagonal line going from lower left to upper right demonstrating that as prices go up, demand goes up proportionately. 
E)  two intersecting lines that identify the point at which supply and demand are exactly the same. 
A)  a parabola with the apex representing the highest price that can be charged without losing customers. 
B)  a diagonal line going from upper left to lower right demonstrating that as price goes down, demand goes up. 
C)  an inverted parabola with the lowest point representing the lowest price that can be charged and still meet the company's profit objectives. 
D)  a diagonal line going from lower left to upper right demonstrating that as prices go up, demand goes up proportionately. 
E)  two intersecting lines that identify the point at which supply and demand are exactly the same.

Exam 13: Building the Price Foundation

Creative marketers engage in value-pricing,which is the practice of simultaneously increasing product and service benefits and __________.

Total revenue refers to

Price refers to

Figure 13-10A -Figure 13-10A above,"Z" represents

sum of the expenses of a firm that is stable and does not change with the quantity of the product that is produced and sold is referred to as

Which of the following statements about the factors that influence demand is true?

Figure 13-2 -Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would assess the constraints on the demand for the product class and brand?

Washburn Guitars markets its guitars to four distinct market segments.The firm's one-of-kind custom instruments are targeted at

Economists have identified four types of competitive markets: pure monopoly,pure competition,oligopoly,and __________.

Which of the following represent elements of Step 2 of the price-setting process?

increase value,marketers may __________,decrease price,or do both.

Break-even analysis refers to

total money received from the sale of a product is referred to as __________.

General Motors,Ford,and Chrysler have all recently experienced financial distress because

price of tickets to a Los Angeles Lakers game can be attributed to

Estimating cost,conducting a marginal analysis,and performing a break-even analysis are issues that would be addressed during __________ of the price-setting process.

the CEO of the Clorox Company were to say,"We want to control 60 percent of the bleach market within the next five years," he would have set a __________ pricing objective.

According to the price equation,final price equals __________ minus incentives and allowances plus extra fees.

demand curve graph typically appears as

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation,Targeting,and Positioning

Developing New Products and Services

Managing Successful Products,Services,and Brands

Services Marketing

Arriving at the Final Price

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multi-Channel Marketing

Pulling It All Together: The Strategic Marketing Process

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