Question 1

For most products,the quantity demanded goes up as the price goes down.

Accepted Answer

A) True 
 B)False  True

Question 2

If the terms of a business exchange are 2/10 net 30,this means that the transaction

Accepted Answer

A)  involves a cumulative discount if paid in 30 days. 
B)  involves a noncumulative discount. 
C)  offers a discount if the buyer lives within a ten-mile radius. 
D)  price does not include the cost of freight. 
E)  involves a cash discount if paid within ten days. 
A)  involves a cumulative discount if paid in 30 days. 
B)  involves a noncumulative discount. 
C)  offers a discount if the buyer lives within a ten-mile radius. 
D)  price does not include the cost of freight. 
E)  involves a cash discount if paid within ten days. E

Question 3

If Seagram's marketers found that the firm's Crown Royal bourbon was a prestige product and raised its price,which of the following would most likely happen?

Accepted Answer

A)  The quantity demanded would immediately fall. 
B)  The quantity demanded would always increase. 
C)  Above some price level,the quantity demanded would begin to decrease. 
D)  The demand curve for the product would always shift to the right. 
E)  The demand curve for the product would always shift to the left. 
A)  The quantity demanded would immediately fall. 
B)  The quantity demanded would always increase. 
C)  Above some price level,the quantity demanded would begin to decrease. 
D)  The demand curve for the product would always shift to the right. 
E)  The demand curve for the product would always shift to the left. C

Question 4

Brand uniqueness is not important in nonprice competition.

Accepted Answer

A) True 
 B)False

Question 5

Monopolies usually keep their prices at a level that generate a reasonable,but not excessive,return primarily because

Accepted Answer

A)  they want to avoid new competitors entering their market. 
B)  they want to avoid government regulations on their pricing. 
C)  they try to satisfy the demands of value-conscious consumers. 
D)  firms can increase market share more rapidly this way. 
E)  customers will discontinue use of these products if prices rise. 
A)  they want to avoid new competitors entering their market. 
B)  they want to avoid government regulations on their pricing. 
C)  they try to satisfy the demands of value-conscious consumers. 
D)  firms can increase market share more rapidly this way. 
E)  customers will discontinue use of these products if prices rise.

Question 6

Temporary price reductions through sales,rebates,and special discounts are often used to

Accepted Answer

A)  raise cash quickly. 
B)  decrease costs. 
C)  increase profitability. 
D)  run off the competition. 
E)  create a value image. 
A)  raise cash quickly. 
B)  decrease costs. 
C)  increase profitability. 
D)  run off the competition. 
E)  create a value image.

Question 7

Reductions for transportation and other costs related to the physical distance between buyer and seller are known as

Accepted Answer

A)  base-point pricing. 
B)  freight absorption pricing. 
C)  price zoning. 
D)  location pricing. 
E)  geographic pricing. 
A)  base-point pricing. 
B)  freight absorption pricing. 
C)  price zoning. 
D)  location pricing. 
E)  geographic pricing.

Question 8

To gain market share,when Hyundai first entered the U.S.car market it did so with a comparatively low price strategy.One of the negative side effects of making this pricing decision is

Accepted Answer

A)  a negative impact on consumers' perceptions of quality. 
B)  competitive matching. 
C)  a high return on investment level affecting tax balances owed. 
D)  poor survival chances. 
E)  higher developmental costs. 
A)  a negative impact on consumers' perceptions of quality. 
B)  competitive matching. 
C)  a high return on investment level affecting tax balances owed. 
D)  poor survival chances. 
E)  higher developmental costs.

Question 9

Which of the following is not a discount provided to business customers?

Accepted Answer

A)  Trade 
B)  Cumulative 
C)  Cash 
D)  Seasonal 
E)  Differentiated 
A)  Trade 
B)  Cumulative 
C)  Cash 
D)  Seasonal 
E)  Differentiated

Question 10

Use the following to answer the questions.
Concession Supply sells hotdogs,buns,and nacho ingredients to several major league ballparks across the country.Currently,Concession Supply has the following pricing information for one case of hotdogs sold at Wrigley Field: Total fixed costs = $1,200,Selling price = $16,and Variable costs = $6.
-Refer to Scenario 19.1.If Concession Supply wanted to make a profit of $800 on each case,it would need to sell ____ cases.

Accepted Answer

A)  150 
B)  300 
C)  100 
D)  75 
E)  200 
A)  150 
B)  300 
C)  100 
D)  75 
E)  200

Question 11

Product demand usually becomes more elastic over time because more substitutes are found.

Accepted Answer

A) True 
 B)False

Question 12

Advertisements for Suave shampoos emphasize that other shampoos may cost more but don't work any better than Suave.In this example,Suave is competing on the basis of

Accepted Answer

A)  service. 
B)  market share. 
C)  price. 
D)  selection. 
E)  packaging. 
A)  service. 
B)  market share. 
C)  price. 
D)  selection. 
E)  packaging.

Question 13

What do all of the following have in common: tuition,fee,premium,retainer,dues?

Accepted Answer

A)  They all must be paid in cash. 
B)  They are forms of exchange similar to,but not identical with,money. 
C)  They are forms of exchange similar to,but not identical with,barter. 
D)  They are different terms for the concept of price. 
E)  They have nothing in common. 
A)  They all must be paid in cash. 
B)  They are forms of exchange similar to,but not identical with,money. 
C)  They are forms of exchange similar to,but not identical with,barter. 
D)  They are different terms for the concept of price. 
E)  They have nothing in common.

Question 14

If the product price is $100,average variable cost $40 per unit,and the total fixed costs are $120,000,what is the breakeven point?

Accepted Answer

A)  500 units 
B)  2,000 units 
C)  1,200 units 
D)  300 units 
E)  3,000 units 
A)  500 units 
B)  2,000 units 
C)  1,200 units 
D)  300 units 
E)  3,000 units

Question 15

If a firm currently produces 2,500 products per month and decides to produce 2,501,it will incur

Accepted Answer

A)  more fixed costs. 
B)  higher average fixed costs. 
C)  fewer variable costs. 
D)  a marginal cost. 
E)  higher average variable costs. 
A)  more fixed costs. 
B)  higher average fixed costs. 
C)  fewer variable costs. 
D)  a marginal cost. 
E)  higher average variable costs.

Question 16

A price developed in the consumer's mind through experience with the product is called a(n)

Accepted Answer

A)  external reference price. 
B)  value-price guideline. 
C)  frame of reference. 
D)  internalized price. 
E)  internal reference price. 
A)  external reference price. 
B)  value-price guideline. 
C)  frame of reference. 
D)  internalized price. 
E)  internal reference price.

Question 17

If fixed costs = $6,000,selling price = $10,and variable costs per unit = $5,what is the breakeven point in units and in dollar sales volume?

Accepted Answer

The answer of If fixed costs = $6,000,selling price =...

Question 18

When marketers emphasize price as an issue and match or beat the prices of other companies,they are using

Accepted Answer

A)  price competition. 
B)  nonprice competition. 
C)  comparative pricing strategies. 
D)  demand-based pricing. 
E)  supply-based pricing. 
A)  price competition. 
B)  nonprice competition. 
C)  comparative pricing strategies. 
D)  demand-based pricing. 
E)  supply-based pricing.

Question 19

Dividing the percentage change in quantity demanded by the percentage change in price gives the

Accepted Answer

A)  prestige demand curve. 
B)  breakeven point. 
C)  marginal cost curve. 
D)  price sensitivity curve. 
E)  price elasticity of demand. 
A)  prestige demand curve. 
B)  breakeven point. 
C)  marginal cost curve. 
D)  price sensitivity curve. 
E)  price elasticity of demand.

Question 20

Which of the following products is most likely to involve personal selling?

Accepted Answer

A)  Blenders 
B)  Riding lawn mowers 
C)  Fresh peaches 
D)  Picture frames 
E)  Footballs 
A)  Blenders 
B)  Riding lawn mowers 
C)  Fresh peaches 
D)  Picture frames 
E)  Footballs

Exam 19: Strategic Pricing Management

For most products,the quantity demanded goes up as the price goes down.

If the terms of a business exchange are 2/10 net 30,this means that the transaction

If Seagram's marketers found that the firm's Crown Royal bourbon was a prestige product and raised its price,which of the following would most likely happen?

Brand uniqueness is not important in nonprice competition.

Monopolies usually keep their prices at a level that generate a reasonable,but not excessive,return primarily because

Temporary price reductions through sales,rebates,and special discounts are often used to

Reductions for transportation and other costs related to the physical distance between buyer and seller are known as

To gain market share,when Hyundai first entered the U.S.car market it did so with a comparatively low price strategy.One of the negative side effects of making this pricing decision is

Which of the following is not a discount provided to business customers?

Product demand usually becomes more elastic over time because more substitutes are found.

Advertisements for Suave shampoos emphasize that other shampoos may cost more but don't work any better than Suave.In this example,Suave is competing on the basis of

What do all of the following have in common: tuition,fee,premium,retainer,dues?

If the product price is $100,average variable cost $40 per unit,and the total fixed costs are $120,000,what is the breakeven point?

If a firm currently produces 2,500 products per month and decides to produce 2,501,it will incur

A price developed in the consumer's mind through experience with the product is called a(n)

If fixed costs = $6,000,selling price = $10,and variable costs per unit = $5,what is the breakeven point in units and in dollar sales volume?

When marketers emphasize price as an issue and match or beat the prices of other companies,they are using

Dividing the percentage change in quantity demanded by the percentage change in price gives the

Which of the following products is most likely to involve personal selling?

Strategic Marketing Management

Developing and Implementing Marketing Strategies

The Global Marketing Environment

Information for Marketing Decisions

Selecting Target Markets

Consumer Behavior

Business Buying Behavior

International Marketing

Digital Marketing and Social Media

Product Decisions

Strategic Product Management

Services Marketing

Strategic Management of Branding and Packaging

A Supply Chain Management and Marketing Channels

B Supply Chain Management and Marketing Channels

A Retailing,wholesaling and Direct Marketing

B Retailing,wholesaling and Direct Marketing

Integrated Marketing Communications

Advertising and Publicrelations

Personal Selling and Sales Promotion

Pricingdecisions

Global Issues,social Responsibility and Marketing

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