Question 1

When a customer is considering the purchase of a product in a less-familiar product category,that individual is likely to rely more heavily on

Accepted Answer

A)  internal reference prices. 
B)  symbol prices. 
C)  high value products. 
D)  discounted reference prices. 
E)  external reference prices. 
A)  internal reference prices. 
B)  symbol prices. 
C)  high value products. 
D)  discounted reference prices. 
E)  external reference prices.

Question 2

Profit margins for marketing channel members must be considered when determining the price of a product.

Accepted Answer

A) True 
 B)False

Question 3

The firm should produce the quantity at which marginal revenue and marginal cost are equal.

Accepted Answer

A) True 
 B)False

Question 4

Nonprice competition emphasizes distinctive product features,service,and product quality.

Accepted Answer

A) True 
 B)False

Question 5

If Carnival Cruise Lines increased the price of its seven-day cruise package by 10 percent and,as a result,experienced a 20 percent decline in customer bookings,Carnival's demand would be

Accepted Answer

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

Question 6

A concession in price in business markets to achieve a desired goal is called a(n)

Accepted Answer

A)  allowance. 
B)  objective-oriented discount. 
C)  cash discount. 
D)  trade discount. 
E)  cumulative discount. 
A)  allowance. 
B)  objective-oriented discount. 
C)  cash discount. 
D)  trade discount. 
E)  cumulative discount.

Question 7

Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers.This indicates that Caterpillar is producing at the ____ point.

Accepted Answer

A)  breakeven 
B)  marginal revenue less than marginal cost 
C)  profit margin 
D)  competitive price 
E)  profit maximizing 
A)  breakeven 
B)  marginal revenue less than marginal cost 
C)  profit margin 
D)  competitive price 
E)  profit maximizing

Question 8

What does the demand curve for a prestige product look like?

Accepted Answer

A)  It is a straight line where the quantity sold continues to increase as the price of each product increases. 
B)  It is a curve where the highest and the lowest prices yield the greatest quantity sold and mid-range prices produce the fewest sales. 
C)  It forms a curve where the greatest quantity sold comes at a medium price and the quantities fall as the price increases or decreases. 
D)  It forms a straight vertical line because of the prestige of the product,and quantity sold will remain stable regardless of the price. 
E)  It slopes from left to right at a very mild slope; that is,as quantity increases,price decreases slowly. 
A)  It is a straight line where the quantity sold continues to increase as the price of each product increases. 
B)  It is a curve where the highest and the lowest prices yield the greatest quantity sold and mid-range prices produce the fewest sales. 
C)  It forms a curve where the greatest quantity sold comes at a medium price and the quantities fall as the price increases or decreases. 
D)  It forms a straight vertical line because of the prestige of the product,and quantity sold will remain stable regardless of the price. 
E)  It slopes from left to right at a very mild slope; that is,as quantity increases,price decreases slowly.

Question 9

Roberts Electronics calculates that if it produces 15 radar detectors,its costs are $1,500,and if it produces 16 radar detectors,its costs are $1,590.In this instance,$90 is the firm's ____ cost.

Accepted Answer

A)  average 
B)  fixed 
C)  variable 
D)  marginal 
E)  average variable 
A)  average 
B)  fixed 
C)  variable 
D)  marginal 
E)  average variable

Question 10

Electricity is an example of a product that is price elastic.

Accepted Answer

A) True 
 B)False

Question 11

Justin Caprese phones Ben Kirkland of Southside Furniture to inform him that if he will increase his recent order of 15 mattress sets to 20,he will receive a 14 percent price reduction.This offer is due to a recent overstock condition at the factory and will not be available in the future.The discount offered here is

Accepted Answer

A)  cash. 
B)  noncumulative. 
C)  seasonal. 
D)  trade. 
E)  cumulative. 
A)  cash. 
B)  noncumulative. 
C)  seasonal. 
D)  trade. 
E)  cumulative.

Question 12

If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85,then

Accepted Answer

A)  its marginal costs are falling. 
B)  average total cost is at its maximum. 
C)  average total costs are rising. 
D)  demand is elastic. 
E)  average total cost is at its lowest level. 
A)  its marginal costs are falling. 
B)  average total cost is at its maximum. 
C)  average total costs are rising. 
D)  demand is elastic. 
E)  average total cost is at its lowest level.

Question 13

When marketers at Consolidated Mustard Company tried to determine demand for their product,they found that at 50 cents,consumers wanted 2,000 jars; at $1.00,they wanted 6,000 jars; and at $1.50,they wanted 4,000 jars.What can Consolidated conclude?

Accepted Answer

A)  Consolidated did poor market demand research. 
B)  Consolidated has an elastic product. 
C)  Consolidated has an inelastic product. 
D)  Consolidated mustard is a prestige good. 
E)  Consolidated mustard has a normal demand curve. 
A)  Consolidated did poor market demand research. 
B)  Consolidated has an elastic product. 
C)  Consolidated has an inelastic product. 
D)  Consolidated mustard is a prestige good. 
E)  Consolidated mustard has a normal demand curve.

Question 14

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.To break even,Concession Supply should sell ____ cases of hot dogs per day at Wrigley Field.

Accepted Answer

A)  13 
B)  120 
C)  40 
D)  200 
E)  60 
A)  13 
B)  120 
C)  40 
D)  200 
E)  60

Question 15

In conducting an assessment of her accounting firm,Pauline Santana discovers the following annual results: average charge per customer = $250; rent = $12,000; total billings = $150,000; employee compensation and benefits = $60,000; and other costs = $110,000.Given these results,Mary's profits would equal

Accepted Answer

A)  a loss of $20,000. 
B)  a loss of $32,000. 
C)  $28,000. 
D)  $40,000. 
E)  $222,000. 
A)  a loss of $20,000. 
B)  a loss of $32,000. 
C)  $28,000. 
D)  $40,000. 
E)  $222,000.

Question 16

____ consumers are concerned about both the price and the quality aspects of a product.

Accepted Answer

A)  Price-conscious 
B)  Prestige-sensitive 
C)  Value-conscious 
D)  Price-conscious and prestige-sensitive 
E)  Quality-conscious 
A)  Price-conscious 
B)  Prestige-sensitive 
C)  Value-conscious 
D)  Price-conscious and prestige-sensitive 
E)  Quality-conscious

Question 17

Nonprice competition can be used to establish brand loyalty.

Accepted Answer

A) True 
 B)False

Question 18

What are the terms of F.O.B.pricing?

Accepted Answer

The answer of What are the terms of F.O.B.pricing?...

Question 19

Suppose that the watchband department of Timex sells completed watchbands to the finished watch department.The finished watch department is charged the price it would have to pay an outside watchband manufacturer less a discount to reflect low sales and transportation costs.This method of pricing is called ____ pricing.

Accepted Answer

A)  zone 
B)  actual full cost 
C)  standard full cost 
D)  cost plus investment 
E)  market-based cost 
A)  zone 
B)  actual full cost 
C)  standard full cost 
D)  cost plus investment 
E)  market-based cost

Question 20

Price is a key element in the marketing mix because it relates directly to

Accepted Answer

A)  the size of the sales force. 
B)  the speed of an exchange. 
C)  quality controls. 
D)  the generation of total revenue. 
E)  brand image. 
A)  the size of the sales force. 
B)  the speed of an exchange. 
C)  quality controls. 
D)  the generation of total revenue. 
E)  brand image.

When a customer is considering the purchase of a product in a less-familiar product category,that individual is likely to rely more heavily on

Profit margins for marketing channel members must be considered when determining the price of a product.

The firm should produce the quantity at which marginal revenue and marginal cost are equal.

Nonprice competition emphasizes distinctive product features,service,and product quality.

If Carnival Cruise Lines increased the price of its seven-day cruise package by 10 percent and,as a result,experienced a 20 percent decline in customer bookings,Carnival's demand would be

A concession in price in business markets to achieve a desired goal is called a(n)

Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers.This indicates that Caterpillar is producing at the ____ point.

What does the demand curve for a prestige product look like?

Roberts Electronics calculates that if it produces 15 radar detectors,its costs are $1,500,and if it produces 16 radar detectors,its costs are $1,590.In this instance,$90 is the firm's ____ cost.

Electricity is an example of a product that is price elastic.

If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85,then

When marketers at Consolidated Mustard Company tried to determine demand for their product,they found that at 50 cents,consumers wanted 2,000 jars; at $1.00,they wanted 6,000 jars; and at $1.50,they wanted 4,000 jars.What can Consolidated conclude?

____ consumers are concerned about both the price and the quality aspects of a product.

Nonprice competition can be used to establish brand loyalty.

What are the terms of F.O.B.pricing?

Price is a key element in the marketing mix because it relates directly to

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

Filters

Exam 19: Strategic Pricing Management

When a customer is considering the purchase of a product in a less-familiar product category,that individual is likely to rely more heavily on

Profit margins for marketing channel members must be considered when determining the price of a product.

The firm should produce the quantity at which marginal revenue and marginal cost are equal.

Nonprice competition emphasizes distinctive product features,service,and product quality.

If Carnival Cruise Lines increased the price of its seven-day cruise package by 10 percent and,as a result,experienced a 20 percent decline in customer bookings,Carnival's demand would be

A concession in price in business markets to achieve a desired goal is called a(n)

Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers.This indicates that Caterpillar is producing at the ____ point.

What does the demand curve for a prestige product look like?

Roberts Electronics calculates that if it produces 15 radar detectors,its costs are $1,500,and if it produces 16 radar detectors,its costs are $1,590.In this instance,$90 is the firm's ____ cost.

Electricity is an example of a product that is price elastic.

If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85,then

When marketers at Consolidated Mustard Company tried to determine demand for their product,they found that at 50 cents,consumers wanted 2,000 jars; at $1.00,they wanted 6,000 jars; and at $1.50,they wanted 4,000 jars.What can Consolidated conclude?

____ consumers are concerned about both the price and the quality aspects of a product.

Nonprice competition can be used to establish brand loyalty.

What are the terms of F.O.B.pricing?

Price is a key element in the marketing mix because it relates directly to

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

Filters