Question 1

Fixed costs vary with the number of units produced or sold.

Accepted Answer

A) True 
 B)False

Question 2

With prestige products,a firm will always be able to sell more at a higher price.

Accepted Answer

A) True 
 B)False

Question 3

Costs are a major issue when establishing price.

Accepted Answer

A) True 
 B)False

Question 4

Setting prices for business customers is very similar to setting prices for consumers.

Accepted Answer

A) True 
 B)False

Question 5

A company trying to position itself as value oriented should not

Accepted Answer

A)  set prices that are reasonable relative to product quality. 
B)  use premium pricing for its products. 
C)  set prices similar to those of its competitors. 
D)  use any advertising for its products. 
E)  consider costs when determining the price of products. 
A)  set prices that are reasonable relative to product quality. 
B)  use premium pricing for its products. 
C)  set prices similar to those of its competitors. 
D)  use any advertising for its products. 
E)  consider costs when determining the price of products.

Question 6

Knowing the target market's evaluation of price allows the marketer to know how much emphasis to place on price and how to price a product relative to competition.

Accepted Answer

A) True 
 B)False

Question 7

Price is the most easily adjusted ingredient in the marketing mix.

Accepted Answer

A) True 
 B)False

Question 8

In the long run,the J.F.Smucker Company must view ____ as the absolute lowest price for its Jif brand peanut butter.

Accepted Answer

A)  a 10 percent return on investment 
B)  product development costs 
C)  total costs 
D)  advertising expenditures 
E)  Nestlé's prices 
A)  a 10 percent return on investment 
B)  product development costs 
C)  total costs 
D)  advertising expenditures 
E)  Nestlé's prices

Question 9

Buyers who focus on purchasing products that signify prominence and status are

Accepted Answer

A)  value-conscious consumers. 
B)  price-conscious consumers. 
C)  socially elite buyers. 
D)  prestige-sensitive buyers. 
E)  brand aware consumers. 
A)  value-conscious consumers. 
B)  price-conscious consumers. 
C)  socially elite buyers. 
D)  prestige-sensitive buyers. 
E)  brand aware consumers.

Question 10

If demand is elastic,a change in price causes a parallel change in total revenue.

Accepted Answer

A) True 
 B)False

Question 11

Tim O'Brien gets the invoice for a load of gravel he purchased last week.The price of the gravel was $55,and the terms are 2/10,n/45.If Tim pays the invoice in five weeks,he will owe

Accepted Answer

A)  a penalty. 
B)  $53.90. 
C)  $56.10. 
D)  $58.30. 
E)  $55.00. 
A)  a penalty. 
B)  $53.90. 
C)  $56.10. 
D)  $58.30. 
E)  $55.00.

Question 12

The types of prices that appear least often in ads are ____ prices.

Accepted Answer

A)  reference 
B)  discount 
C)  premium 
D)  comparison 
E)  sale 
A)  reference 
B)  discount 
C)  premium 
D)  comparison 
E)  sale

Question 13

Both the Federal Trade Commission Act and the Wheeler-Lea Act prohibit

Accepted Answer

A)  freezing prices. 
B)  independent pricing policies. 
C)  deceptive pricing. 
D)  price fixing. 
E)  price differentials. 
A)  freezing prices. 
B)  independent pricing policies. 
C)  deceptive pricing. 
D)  price fixing. 
E)  price differentials.

Question 14

The point at which marginal revenue equals marginal cost is the breakeven point.

Accepted Answer

A) True 
 B)False

Question 15

Elastic demand is usually a result of the lack of substitute products.

Accepted Answer

A) True 
 B)False

Question 16

Noncumulative discounts are one-time reductions in prices based on the number of units purchased,the dollar value of the order,or the product mix purchased.

Accepted Answer

A) True 
 B)False

Question 17

Which factor is least likely to affect pricing decisions?

Accepted Answer

A)  Competitive prices 
B)  Legal and regulatory issues 
C)  Organizational and marketing objectives 
D)  Customers' interpretation and response 
E)  Shifting stock values 
A)  Competitive prices 
B)  Legal and regulatory issues 
C)  Organizational and marketing objectives 
D)  Customers' interpretation and response 
E)  Shifting stock values

Question 18

The oldest form of exchange-trading of products-is known as

Accepted Answer

A)  credit. 
B)  buying. 
C)  purchasing. 
D)  barter. 
E)  pricing. 
A)  credit. 
B)  buying. 
C)  purchasing. 
D)  barter. 
E)  pricing.

Question 19

Factors affecting pricing decisions can include demand,distribution,and the way in which the product is promoted.

Accepted Answer

A) True 
 B)False

Question 20

Compare and contrast price and nonprice competition.Give examples of firms that compete on a price basis and on a nonprice basis.

Accepted Answer

The answer of Compare and contrast price and nonprice competition.Give...

Exam 19: Strategic Pricing Management

Fixed costs vary with the number of units produced or sold.

With prestige products,a firm will always be able to sell more at a higher price.

Costs are a major issue when establishing price.

Setting prices for business customers is very similar to setting prices for consumers.

A company trying to position itself as value oriented should not

Knowing the target market's evaluation of price allows the marketer to know how much emphasis to place on price and how to price a product relative to competition.

Price is the most easily adjusted ingredient in the marketing mix.

In the long run,the J.F.Smucker Company must view ____ as the absolute lowest price for its Jif brand peanut butter.

Buyers who focus on purchasing products that signify prominence and status are

If demand is elastic,a change in price causes a parallel change in total revenue.

Tim O'Brien gets the invoice for a load of gravel he purchased last week.The price of the gravel was $55,and the terms are 2/10,n/45.If Tim pays the invoice in five weeks,he will owe

The types of prices that appear least often in ads are ____ prices.

Both the Federal Trade Commission Act and the Wheeler-Lea Act prohibit

The point at which marginal revenue equals marginal cost is the breakeven point.

Elastic demand is usually a result of the lack of substitute products.

Noncumulative discounts are one-time reductions in prices based on the number of units purchased,the dollar value of the order,or the product mix purchased.

Which factor is least likely to affect pricing decisions?

The oldest form of exchange-trading of products-is known as

Factors affecting pricing decisions can include demand,distribution,and the way in which the product is promoted.

Compare and contrast price and nonprice competition.Give examples of firms that compete on a price basis and on a nonprice basis.

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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