Question 1

Price should be defined in terms of money only.

Accepted Answer

A) True 
 B)False

Question 2

Marginal revenue is the change in total revenue that occurs when a firm sells an additional unit of product.

Accepted Answer

A) True 
 B)False

Question 3

When Cadillac buys headlights from Delco (both of which are divisions of General Motors),____ pricing occurs.

Accepted Answer

A)  base-point 
B)  zone 
C)  transfer 
D)  uniform geographic 
E)  matrix 
A)  base-point 
B)  zone 
C)  transfer 
D)  uniform geographic 
E)  matrix

Question 4

The more experience the customer has with a product,the more he or she relies on external reference prices.

Accepted Answer

A) True 
 B)False

Question 5

Ideally,pricing decisions have little relation to a firm's marketing objectives.

Accepted Answer

A) True 
 B)False

Question 6

The type of prices most likely to appear in advertising is

Accepted Answer

A)  prestige. 
B)  future. 
C)  bargain. 
D)  internal reference. 
E)  cost-plus. 
A)  prestige. 
B)  future. 
C)  bargain. 
D)  internal reference. 
E)  cost-plus.

Question 7

Which of the following is not a method used to determine transfer prices?

Accepted Answer

A)  Discounted standard cost 
B)  Actual full cost 
C)  Standard full cost 
D)  Cost plus investment 
E)  Market-based cost 
A)  Discounted standard cost 
B)  Actual full cost 
C)  Standard full cost 
D)  Cost plus investment 
E)  Market-based cost

Question 8

If Wilson Sporting Goods faces a standard demand curve that exists for most products,as it raises the price of its tennis rackets,the

Accepted Answer

A)  quantity demanded goes down. 
B)  demand remains constant. 
C)  quantity demanded increases. 
D)  demand increases. 
E)  breakeven increases. 
A)  quantity demanded goes down. 
B)  demand remains constant. 
C)  quantity demanded increases. 
D)  demand increases. 
E)  breakeven increases.

Question 9

Costs that vary directly with changes in the number of units produced or sold are called

Accepted Answer

A)  changeables. 
B)  variable costs. 
C)  direct costs. 
D)  fixed costs. 
E)  marginal costs. 
A)  changeables. 
B)  variable costs. 
C)  direct costs. 
D)  fixed costs. 
E)  marginal costs.

Question 10

A customer looking for the lowest price on a mattress without concern for the quality of the mattress or the status gained by buying and using a certain brand is a price-conscious customer.

Accepted Answer

A) True 
 B)False

Question 11

What are the components of total cost? Give specific examples.

Accepted Answer

The components of total cost include bot

Question 12

The tuition and fees each student paid for this semester of college are both terms for

Accepted Answer

A)  expenses. 
B)  charges. 
C)  bills. 
D)  price. 
E)  exchange valuations. 
A)  expenses. 
B)  charges. 
C)  bills. 
D)  price. 
E)  exchange valuations.

Question 13

If Pacific Power and Light increased its rates 10 percent and experienced only a 2 percent reduction in the demand for power,the demand would be

Accepted Answer

A)  elastic. 
B)  prestige. 
C)  common. 
D)  horizontal. 
E)  inelastic. 
A)  elastic. 
B)  prestige. 
C)  common. 
D)  horizontal. 
E)  inelastic.

Question 14

The value of an idea cannot be assessed by price.

Accepted Answer

A) True 
 B)False

Question 15

Price is the value that is exchanged for products in a marketing transaction.

Accepted Answer

A) True 
 B)False

Question 16

The point at which the costs of producing a product equal the revenue earned from selling the product is

Accepted Answer

A)  elasticity of demand. 
B)  the breakeven point. 
C)  variable costs. 
D)  price elasticity. 
E)  the sum of fixed and variable costs. 
A)  elasticity of demand. 
B)  the breakeven point. 
C)  variable costs. 
D)  price elasticity. 
E)  the sum of fixed and variable costs.

Question 17

Which of the following is most likely to be a fixed cost?

Accepted Answer

A)  Component parts 
B)  Raw materials 
C)  Rent 
D)  Electricity 
E)  Transportation 
A)  Component parts 
B)  Raw materials 
C)  Rent 
D)  Electricity 
E)  Transportation

Question 18

The major disadvantage of using price competition is that it takes a long time to implement the changes in price.

Accepted Answer

A) True 
 B)False

Question 19

One advantage of nonprice competition is that

Accepted Answer

A)  a firm can react quickly to competitive efforts. 
B)  market share becomes less important. 
C)  a firm can build customer loyalty. 
D)  marketing efforts are completely eliminated. 
E)  pricing is no longer a factor. 
A)  a firm can react quickly to competitive efforts. 
B)  market share becomes less important. 
C)  a firm can build customer loyalty. 
D)  marketing efforts are completely eliminated. 
E)  pricing is no longer a factor.

Question 20

ACE Electronics introduces a new voice-activated personal computer that no longer requires a keyboard.ACE charges the high price of $11,000 per unit,thus generating large profits because it has a 20 percent market share.ACE's major problem in the future will most likely be

Accepted Answer

A)  survival. 
B)  cash flow. 
C)  competition. 
D)  return on investment. 
E)  profit. 
A)  survival. 
B)  cash flow. 
C)  competition. 
D)  return on investment. 
E)  profit.

Exam 19: Strategic Pricing Management

Price should be defined in terms of money only.

Marginal revenue is the change in total revenue that occurs when a firm sells an additional unit of product.

When Cadillac buys headlights from Delco (both of which are divisions of General Motors),____ pricing occurs.

The more experience the customer has with a product,the more he or she relies on external reference prices.

Ideally,pricing decisions have little relation to a firm's marketing objectives.

The type of prices most likely to appear in advertising is

Which of the following is not a method used to determine transfer prices?

If Wilson Sporting Goods faces a standard demand curve that exists for most products,as it raises the price of its tennis rackets,the

Costs that vary directly with changes in the number of units produced or sold are called

A customer looking for the lowest price on a mattress without concern for the quality of the mattress or the status gained by buying and using a certain brand is a price-conscious customer.

What are the components of total cost? Give specific examples.

The tuition and fees each student paid for this semester of college are both terms for

If Pacific Power and Light increased its rates 10 percent and experienced only a 2 percent reduction in the demand for power,the demand would be

The value of an idea cannot be assessed by price.

Price is the value that is exchanged for products in a marketing transaction.

The point at which the costs of producing a product equal the revenue earned from selling the product is

Which of the following is most likely to be a fixed cost?

The major disadvantage of using price competition is that it takes a long time to implement the changes in price.

One advantage of nonprice competition is that

ACE Electronics introduces a new voice-activated personal computer that no longer requires a keyboard.ACE charges the high price of $11,000 per unit,thus generating large profits because it has a 20 percent market share.ACE's major problem in the future will most likely be

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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