Question 1

What type of discount is given to a business purchaser for performing activities such as transporting,storing,and selling?

Accepted Answer

A)  Quantity 
B)  Cash 
C)  Geographic 
D)  Service 
E)  Trade 
A)  Quantity 
B)  Cash 
C)  Geographic 
D)  Service 
E)  Trade

Question 2

Seasonal discounts provide price incentives to customers during peak selling seasons.

Accepted Answer

A) True 
 B)False

Question 3

A customer who is ____ is likely to say,"People notice when you buy the most expensive brand of a product."

Accepted Answer

A)  price-conscious 
B)  quality-conscious 
C)  value-conscious 
D)  socially conscious 
E)  prestige-sensitive 
A)  price-conscious 
B)  quality-conscious 
C)  value-conscious 
D)  socially conscious 
E)  prestige-sensitive

Question 4

The idea behind prestige demand is that many prestige products seem to sell better at a high price than at a low price.

Accepted Answer

A) True 
 B)False

Question 5

Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001,total revenue rises $35.The $35 represents the firm's

Accepted Answer

A)  average revenue. 
B)  marginal revenue. 
C)  price elasticity. 
D)  average variable revenue. 
E)  average total cost. 
A)  average revenue. 
B)  marginal revenue. 
C)  price elasticity. 
D)  average variable revenue. 
E)  average total cost.

Question 6

Knowing the number of units necessary to break even is important in setting the price.

Accepted Answer

A) True 
 B)False

Question 7

If a product has an inelastic demand and the manufacturer raises its price,

Accepted Answer

A)  total revenue will increase. 
B)  quantity demanded will decrease. 
C)  the demand schedule will shift. 
D)  the demand will become more inelastic. 
E)  total revenue will decrease. 
A)  total revenue will increase. 
B)  quantity demanded will decrease. 
C)  the demand schedule will shift. 
D)  the demand will become more inelastic. 
E)  total revenue will decrease.

Question 8

Pricing decisions can be based on determining whether the demand for a product is price elastic or price inelastic.

Accepted Answer

A) True 
 B)False

Question 9

If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges,the retailer is paying a(n)____ price.

Accepted Answer

A)  F.O.B.destination 
B)  F.O.B.factory 
C)  transfer 
D)  postage-stamp 
E)  base-point 
A)  F.O.B.destination 
B)  F.O.B.factory 
C)  transfer 
D)  postage-stamp 
E)  base-point

Question 10

A certain location of O'Charley's Restaurant has annual fixed costs of $200,000.If an average tab at the restaurant is $60 and the variable costs per tab is $20,how many groups of customers must O'Charley's serve per year in order to break even?

Accepted Answer

A)  2,000 
B)  5,000 
C)  10,000 
D)  3,333 
E)  2,500 
A)  2,000 
B)  5,000 
C)  10,000 
D)  3,333 
E)  2,500

Question 11

How can the price at which a new product is introduced influence the entrance of competition into a market?

Accepted Answer

The price at which a new product is intr

Question 12

Rent is usually a fixed cost.

Accepted Answer

A) True 
 B)False

Question 13

Nonprice competition does not permit unique product features,higher product quality,and customer service.

Accepted Answer

A) True 
 B)False

Question 14

A firm that competes on a price basis is unable to change prices frequently.

Accepted Answer

A) True 
 B)False

Question 15

Marketers should set prices consistent with marketing goals,not with the corporate mission.

Accepted Answer

A) True 
 B)False

Question 16

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 increased its price by 10 percent and experienced only a 2 percent decrease in the demand for hotdogs,the demand would be

Accepted Answer

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

Question 17

How would pricing decisions differ for a business in an oligopolistic market structure as opposed to a monopolistic market structure?

Accepted Answer

The answer of How would pricing decisions differ for a...

Question 18

To determine the breakeven point in units,divide the fixed costs by

Accepted Answer

A)  total costs. 
B)  variable costs time price. 
C)  price minus variable costs. 
D)  price per unit. 
E)  total revenue minus fixed costs. 
A)  total costs. 
B)  variable costs time price. 
C)  price minus variable costs. 
D)  price per unit. 
E)  total revenue minus fixed costs.

Question 19

What equation shows organizations the relationship between price and profit?

Accepted Answer

A)  Total Variable Costs + Total Fixed Costs = Sales - Profit 
B)  Price = Profit per Item $\times$ Number of Units Sold 
C)  (Price $\times$ Quantity Sold)- Total Costs = Profits 
D)  (Price - Profits)$\times$ Total Costs = Sales 
E)  Total Costs = (Price $\times$Quantity Sold)- Profits 
A)  Total Variable Costs + Total Fixed Costs = Sales - Profit 
B)  Price = Profit per Item $\times$ Number of Units Sold 
C)  (Price $\times$ Quantity Sold)- Total Costs = Profits 
D)  (Price - Profits)$\times$ Total Costs = Sales 
E)  Total Costs = (Price $\times$Quantity Sold)- Profits

Question 20

Because buyers have unlimited purchasing power,they do not have to allocate it to the most desired products.

Accepted Answer

A) True 
 B)False

Exam 19: Strategic Pricing Management

What type of discount is given to a business purchaser for performing activities such as transporting,storing,and selling?

Seasonal discounts provide price incentives to customers during peak selling seasons.

A customer who is ____ is likely to say,"People notice when you buy the most expensive brand of a product."

The idea behind prestige demand is that many prestige products seem to sell better at a high price than at a low price.

Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001,total revenue rises $35.The $35 represents the firm's

Knowing the number of units necessary to break even is important in setting the price.

If a product has an inelastic demand and the manufacturer raises its price,

Pricing decisions can be based on determining whether the demand for a product is price elastic or price inelastic.

If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges,the retailer is paying a(n)____ price.

A certain location of O'Charley's Restaurant has annual fixed costs of $200,000.If an average tab at the restaurant is $60 and the variable costs per tab is $20,how many groups of customers must O'Charley's serve per year in order to break even?

How can the price at which a new product is introduced influence the entrance of competition into a market?

Rent is usually a fixed cost.

Nonprice competition does not permit unique product features,higher product quality,and customer service.

A firm that competes on a price basis is unable to change prices frequently.

Marketers should set prices consistent with marketing goals,not with the corporate mission.

How would pricing decisions differ for a business in an oligopolistic market structure as opposed to a monopolistic market structure?

To determine the breakeven point in units,divide the fixed costs by

What equation shows organizations the relationship between price and profit?

Because buyers have unlimited purchasing power,they do not have to allocate it to the most desired products.

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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