Question 1

For most products,a(n)____ relationship exists between the price of a particular product and the quantity demanded.

Accepted Answer

A)  inelastic 
B)  inverse 
C)  positive 
D)  unknown 
E)  elastic 
A)  inelastic 
B)  inverse 
C)  positive 
D)  unknown 
E)  elastic

Question 2

When marginal cost is equal to marginal revenue,the firm should

Accepted Answer

A)  produce more to increase profits. 
B)  produce less to decrease total costs. 
C)  stop producing additional units to maximize profits. 
D)  provide discounts to encourage purchases. 
E)  intensify distribution to increase sales. 
A)  produce more to increase profits. 
B)  produce less to decrease total costs. 
C)  stop producing additional units to maximize profits. 
D)  provide discounts to encourage purchases. 
E)  intensify distribution to increase sales.

Question 3

Marketers have more difficulty adjusting their prices than they do any other marketing mix variable.

Accepted Answer

A) True 
 B)False

Question 4

Changes in buyers' attitudes,other components of the marketing mix,and uncontrollable environmental factors can influence demand.

Accepted Answer

A) True 
 B)False

Question 5

Costs that do not vary with changes in the number of units produced and sold are called ____ costs.

Accepted Answer

A)  fixed 
B)  total 
C)  invariable 
D)  variable 
E)  set 
A)  fixed 
B)  total 
C)  invariable 
D)  variable 
E)  set

Question 6

Barter is the oldest form of exchange.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not a major factor for firms making price decisions?

Accepted Answer

A)  Costs 
B)  Competition 
C)  Previous sales 
D)  Channel member expectations 
E)  Legal and regulatory issues 
A)  Costs 
B)  Competition 
C)  Previous sales 
D)  Channel member expectations 
E)  Legal and regulatory issues

Question 8

Which of the following prohibits price discrimination that lessens competition among wholesalers and retailers?

Accepted Answer

A)  Sherman Antitrust Act 
B)  Robinson-Patman Act 
C)  Lanham Trademark Act 
D)  Federal Trade Commission Act 
E)  Wheeler-Lea Act 
A)  Sherman Antitrust Act 
B)  Robinson-Patman Act 
C)  Lanham Trademark Act 
D)  Federal Trade Commission Act 
E)  Wheeler-Lea Act

Question 9

Price competition is a very flexible marketing strategy.

Accepted Answer

A) True 
 B)False

Question 10

French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night.This is an indication that suites at this hotel are apparently an example of a(n)____ product.

Accepted Answer

A)  reverse-demand 
B)  inferior 
C)  standard 
D)  secondary-demand 
E)  prestige 
A)  reverse-demand 
B)  inferior 
C)  standard 
D)  secondary-demand 
E)  prestige

Question 11

What are the implications of a downward-sloping demand curve?

Accepted Answer

The answer of What are the implications of a downward-sloping...

Question 12

How can transfer prices be calculated? Give three alternatives.

Accepted Answer

Transfer pricing refers to the pricing o

Question 13

Marginal analysis involves examining

Accepted Answer

A)  what happens to a firm's costs and revenues when production is changed by one unit. 
B)  the extra revenue produced by the sale of one more product. 
C)  the extra cost incurred by the production of one more unit. 
D)  the difference between marginal revenue and total revenue. 
E)  the difference between marginal cost and total cost. 
A)  what happens to a firm's costs and revenues when production is changed by one unit. 
B)  the extra revenue produced by the sale of one more product. 
C)  the extra cost incurred by the production of one more unit. 
D)  the difference between marginal revenue and total revenue. 
E)  the difference between marginal cost and total cost.

Question 14

Which of the following statements about nonprice competition is false?

Accepted Answer

A)  Companies that use nonprice competition do not need to keep track of their competitor's prices. 
B)  A company must be able to distinguish its brand through some unique feature in order to successfully engage in nonprice competition. 
C)  A firm using nonprice competition can build loyalty to both its company and its products. 
D)  When using nonprice competition,a company should promote the distinguishing characteristics of its brand. 
E)  Buyers must view the distinguishing characteristics of a product offered through nonprice competition as being important. 
A)  Companies that use nonprice competition do not need to keep track of their competitor's prices. 
B)  A company must be able to distinguish its brand through some unique feature in order to successfully engage in nonprice competition. 
C)  A firm using nonprice competition can build loyalty to both its company and its products. 
D)  When using nonprice competition,a company should promote the distinguishing characteristics of its brand. 
E)  Buyers must view the distinguishing characteristics of a product offered through nonprice competition as being important.

Question 15

What assumption does breakeven analysis make that limits its overall usefulness?

Accepted Answer

A)  It focuses on how to achieve a price objective. 
B)  It assumes a company wants to gain a certain market share. 
C)  It relies on demand for a product being inelastic. 
D)  It focuses only on competitive factors and not costs. 
E)  It assumes demand is elastic for the product. 
A)  It focuses on how to achieve a price objective. 
B)  It assumes a company wants to gain a certain market share. 
C)  It relies on demand for a product being inelastic. 
D)  It focuses only on competitive factors and not costs. 
E)  It assumes demand is elastic for the product.

Question 16

The Highland Racquet Club found that with annual fixed costs of $60,000,its breakeven point is 2,000 members when the membership charge is $60 per person per year.What is the variable cost per person for Highland?

Accepted Answer

A)  $45 
B)  $50 
C)  $30 
D)  $25 
E)  $40 
A)  $45 
B)  $50 
C)  $30 
D)  $25 
E)  $40

Question 17

Price elasticity of demand measures the sensitivity of demand to changes in price.

Accepted Answer

A) True 
 B)False

Question 18

Demand is best determined by a top management committee.

Accepted Answer

A) True 
 B)False

Question 19

Comparison of various prices and various breakeven points will tell the marketer exactly what price to charge.

Accepted Answer

A) True 
 B)False

Question 20

The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line.Its basic promotional tool is the discount.These discounts offered to middlemen for performing certain channel activities are referred to as ____ discounts.

Accepted Answer

A)  trade 
B)  cumulative 
C)  noncumulative 
D)  push 
E)  intermediary 
A)  trade 
B)  cumulative 
C)  noncumulative 
D)  push 
E)  intermediary

Exam 19: Strategic Pricing Management

For most products,a(n)____ relationship exists between the price of a particular product and the quantity demanded.

When marginal cost is equal to marginal revenue,the firm should

Marketers have more difficulty adjusting their prices than they do any other marketing mix variable.

Changes in buyers' attitudes,other components of the marketing mix,and uncontrollable environmental factors can influence demand.

Costs that do not vary with changes in the number of units produced and sold are called ____ costs.

Barter is the oldest form of exchange.

Which of the following is not a major factor for firms making price decisions?

Which of the following prohibits price discrimination that lessens competition among wholesalers and retailers?

Price competition is a very flexible marketing strategy.

French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night.This is an indication that suites at this hotel are apparently an example of a(n)____ product.

What are the implications of a downward-sloping demand curve?

How can transfer prices be calculated? Give three alternatives.

Marginal analysis involves examining

Which of the following statements about nonprice competition is false?

What assumption does breakeven analysis make that limits its overall usefulness?

The Highland Racquet Club found that with annual fixed costs of $60,000,its breakeven point is 2,000 members when the membership charge is $60 per person per year.What is the variable cost per person for Highland?

Price elasticity of demand measures the sensitivity of demand to changes in price.

Demand is best determined by a top management committee.

Comparison of various prices and various breakeven points will tell the marketer exactly what price to charge.

The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line.Its basic promotional tool is the discount.These discounts offered to middlemen for performing certain channel activities are referred to as ____ discounts.

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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