Question 1

The products with low prices are often on the front page of store ads and _____ the promotion.

Accepted Answer

The answer of The products with low prices are often...

Question 2

Durable goods such as TVs and refrigerators are _____.

Accepted Answer

A)  loss leaders 
B)  variable costs 
C)  price elastic 
D)  reverse auctioned 
E)  price inelastic

Question 3

Price elasticity is impacted by all of the following EXCEPT:

Accepted Answer

A)  the number of competing products available. 
B)  the percentage of a person's budget allocated to different products and services. 
C)  the number of substitute products available. 
D)  the amount of fixed versus variable costs involved in producing the product or service. 
E)  whether a person considers product a necessity or a luxury.

Question 4

A firm that sets out to maintain its current prices and/or its competitors' prices is utilizing which type of pricing objective?

Accepted Answer

A)  Maximizing profits 
B)  Maintaining the status quo 
C)  Targeted return on investment 
D)  Maximizing market share 
E)  Maximizing sales

Question 5

Demand for essential products is affected more by price changes than the demand for nonessential goods.

Accepted Answer

A) True 
 B)False

Question 6

Tim's book company sets an expected profit of 15% in the first two years on all newly published books in relation to the money invested in the author and publication.This is an example of what type of pricing objective?

Accepted Answer

A)  Maximizing profits 
B)  Maintaining the status quo 
C)  Targeted return on investment 
D)  Maximizing market share 
E)  Maximizing sales

Question 7

If consumers do not perceive that a product has a high degree of _____,they probably will not pay a(n)_____ for it.

Accepted Answer

The answer of If consumers do not perceive that a...

Exam 15: Price,the Only Revenue Generator