Question 1

Figure 13-2 above represents the six steps in setting price."E" represents the step at which a firm would

Accepted Answer

A)  set list or quoted price.
B)  select an approximate price level.
C)  scan competitors for prices of similar products or services.
D)  determine cost,volume,and profit relationships.
E)  establish the price range.F) C) and E)
G) A) and D)

Question 2

From a marketing viewpoint,__________ is the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

Accepted Answer

A)  value
B)  price
C)  barter
D)  currency
E)  a tariffF) C) and E)
G) A) and B)

Question 3

The use of "special fees" and "surcharges" is driven by consumers' zeal for __________ combined with the ease of making price comparisons on the Internet.

Accepted Answer

A)  high prices
B)  low prices
C)  quality
D)  value
E)  warrantiesF) D) and E)
G) A) and B)

Question 4

Products such as disposable diapers usually have

Accepted Answer

A)  elastic demand.
B)  null elasticity.
C)  unitary demand.
D)  inelastic supply.
E)  inelastic demand.F) A) and D)
G) B) and E)

Question 5

A firm's profit equation demonstrates that profit equals __________.

Accepted Answer

A)  Total cost + Total revenue
B)  Total revenue − Total cost
C)  Marginal revenue − Marginal cost
D)  Price × Quantity
E)  Total revenue + Marginal costF) C) and E)
G) C) and D)

Question 6

Economists have identified four types of competitive markets: pure monopoly,monopolistic competition,pure competition,and __________.

Accepted Answer

A)  capitalism
B)  socialism
C)  consumer-dominated
D)  oligopoly
E)  government-dominatedF) C) and E)
G) C) and D)

Question 7

Which of the following statements is MOST ACCURATE?

Accepted Answer

A)  Nonprofit organizations are exempt from having to cover the costs of producing and/or marketing their products.
B)  Socially responsible corporations should have the pricing constraint of covering all costs of producing and marketing their products,but they should not price their products to earn a profit.
C)  Marketers must ensure that firms in their channels of distribution must make an adequate profit or they will be cut off from their customers.
D)  Price elasticity of demand makes it virtually impossible for companies to cover all their marketing and production costs at all times.
E)  Marketing and production costs are the most difficult and expensive aspect of pricing because they draw so much capital away from other departments in the organization.F) All of the above
G) B) and D)

Question 8

Which of the following would be an example of a constraint in Step 1 of the price-setting process?

Accepted Answer

A)  "We can rely on our reputation for our other products in the line."
B)  "Experts are predicting a surge in global demand."
C)  "We need to make allowances for large quantity orders."
D)  "We should increase the price during the holiday shopping season."
E)  "We're going to face some stiff competition."F) C) and D)
G) A) and C)

Question 9

SHAPE magazine is targeted at young women seeking healthier lifestyles.At a price of $3.00 per copy,1.25 million copies are sold.If the price per issue is increased to $3.25,only 1 million copies would be sold.Fixed costs are $1 million and unit variable costs are $0.50 per magazine.From the information provided here,what is SHAPE magazine's total revenue obtained at the lower $3.00 price?

Accepted Answer

A)  $3,750,000
B)  $3,250,000
C)  $3,000,000
D)  $2,125,000
E)  $1,750,000F) All of the above
G) B) and C)

Question 10

What pricing strategy is used when a seller changes prices in response to its existing inventory and the prices of its competitors?

Accepted Answer

A)  price matching
B)  competitive parity pricing
C)  every day low pricing
D)  dynamic pricing
E)  showroomingF) A) and D)
G) C) and E)

Question 11

Inelastic demand exists when

Accepted Answer

A)  a small percentage decrease in price produces a smaller percentage increase in quantity demanded.
B)  a small percentage increase in price produces a larger percentage increase in quantity demanded.
C)  an increase in price is impossible due to government restrictions.
D)  the quantity demanded remains the same regardless of any changes in marketing strategies.
E)  a small percentage decrease in price produces a smaller percentage increase in quantity supplied.F) B) and C)
G) C) and D)

Question 12

Figure 13-7 above shows that to maximize revenue,Red Baron should price its frozen cheese pizzas at __________ per unit.

Accepted Answer

A)  $4
B)  $5
C)  $6
D)  $8
E)  $10F) B) and D)
G) A) and D)

Question 13

In which type of industry would a marketing director be MOST LIKELY to say,"We have to let the customer know that our product is the only one that comes with its own tracking device?"

Accepted Answer

A)  pure monopoly
B)  oligopoly
C)  pure competition
D)  monopolistic oligopoly
E)  monopolistic competitionF) D) and E)
G) C) and D)

Question 14

The marketplace sets the price for wheat,so farmers who are trying to sell their wheat crops don't have to create a pricing strategy.The wheat is sold in a(n) __________ type of competitive market.

Accepted Answer

A)  oligopoly
B)  pure monopoly
C)  pure competition
D)  monopolistic competition
E)  monopolistic oligopolyF) A) and D)
G) A) and C)

Question 15

Three different objectives relate to a firm's profit,which is often measured in terms of return on investment.One objective,known as __________,is where a company gives up immediate profit in exchange for achieving a higher market share in the hopes of penetrating competitive markets.

Accepted Answer

A)  maximizing current profit
B)  target return
C)  break-even strategy
D)  minimizing risk
E)  managing for long-run profitsF) C) and D)
G) B) and D)

Question 16

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would identify pricing objectives such as profit,market share,and survival?

Accepted Answer

A)  "A"
B)  "B"
C)  "C"
D)  "D"
E)  "E"F) All of the above
G) A) and B)

Question 17

Distinguish between elastic demand and inelastic demand.

Accepted Answer

Elastic demand exists when a small perce...

Question 18

A technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output is referred to as __________.

Accepted Answer

A)  break-even analysis
B)  marginal analysis
C)  sensitivity analysis
D)  market analysis
E)  tipping point analysisF) A) and C)
G) C) and D)

Question 19

Which of the following would be an example of an objective in Step 1 of the price-setting process?

Accepted Answer

A)  "We need to set an initial price of $259 dollars per unit."
B)  "We need to obtain a ten percent market share."
C)  "We need to find the least expensive distributor."
D)  "We need to make allowances for large quantity orders."
E)  "We need to increase the price during the holiday shopping season."F) B) and C)
G) A) and B)

Question 20

Economists have identified four types of competitive markets: pure monopoly,monopolistic competition,oligopoly,and __________.

Accepted Answer

A)  pure competition
B)  government-dominated
C)  capitalist
D)  socialist
E)  communistF) All of the above
G) A) and D)

Exam 13: Building the Price Foundation

The use of "special fees" and "surcharges" is driven by consumers' zeal for __________ combined with the ease of making price comparisons on the Internet.

Correct Answer
verified

In which type of industry would a marketing director be MOST LIKELY to say,"We have to let the customer know that our product is the only one that comes with its own tracking device?"

Correct Answer
verified

The marketplace sets the price for wheat,so farmers who are trying to sell their wheat crops don't have to create a pricing strategy.The wheat is sold in a(n) __________ type of competitive market.

Correct Answer
verified

Which of the following would be an example of a constraint in Step 1 of the price-setting process?

Correct Answer
verified

Figure 13-2 above represents the six steps in setting price."E" represents the step at which a firm would

Correct Answer
verified

Inelastic demand exists when

Correct Answer
verified

Distinguish between elastic demand and inelastic demand.

Correct Answer
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Elastic demand exists when a small perce...
View Answer

Correct Answer
verified

Economists have identified four types of competitive markets: pure monopoly,monopolistic competition,oligopoly,and __________.

Correct Answer
verified

A firm's profit equation demonstrates that profit equals __________.

Correct Answer
verified

Which of the following would be an example of an objective in Step 1 of the price-setting process?

Correct Answer
verified

A technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output is referred to as __________.

Correct Answer
verified

Which of the following statements is MOST ACCURATE?

Correct Answer
verified

Economists have identified four types of competitive markets: pure monopoly,monopolistic competition,pure competition,and __________.

Correct Answer
verified

Three different objectives relate to a firm's profit,which is often measured in terms of return on investment.One objective,known as __________,is where a company gives up immediate profit in exchange for achieving a higher market share in the hopes of penetrating competitive markets.

Correct Answer
verified

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would identify pricing objectives such as profit,market share,and survival?

Correct Answer
verified

Figure 13-7 above shows that to maximize revenue,Red Baron should price its frozen cheese pizzas at __________ per unit.

Correct Answer
verified

Products such as disposable diapers usually have

Correct Answer
verified

What pricing strategy is used when a seller changes prices in response to its existing inventory and the prices of its competitors?

Correct Answer
verified

From a marketing viewpoint,__________ is the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

Correct Answer
verified

Exam 13: Building the Price Foundation

The use of "special fees" and "surcharges" is driven by consumers' zeal for __________ combined with the ease of making price comparisons on the Internet.

Correct AnswerverifiedShow Answer

In which type of industry would a marketing director be MOST LIKELY to say,"We have to let the customer know that our product is the only one that comes with its own tracking device?"

Correct AnswerverifiedShow Answer

The marketplace sets the price for wheat,so farmers who are trying to sell their wheat crops don't have to create a pricing strategy.The wheat is sold in a(n) __________ type of competitive market.

Correct AnswerverifiedShow Answer

Which of the following would be an example of a constraint in Step 1 of the price-setting process?

Correct AnswerverifiedShow Answer

Figure 13-2 above represents the six steps in setting price."E" represents the step at which a firm would

Correct AnswerverifiedShow Answer

Inelastic demand exists when

Correct AnswerverifiedShow Answer

Distinguish between elastic demand and inelastic demand.

Correct AnswerverifiedElastic demand exists when a small perce...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Economists have identified four types of competitive markets: pure monopoly,monopolistic competition,oligopoly,and __________.

Correct AnswerverifiedShow Answer

A firm's profit equation demonstrates that profit equals __________.

Correct AnswerverifiedShow Answer

Which of the following would be an example of an objective in Step 1 of the price-setting process?

Correct AnswerverifiedShow Answer

A technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output is referred to as __________.

Correct AnswerverifiedShow Answer

Which of the following statements is MOST ACCURATE?

Correct AnswerverifiedShow Answer

Economists have identified four types of competitive markets: pure monopoly,monopolistic competition,pure competition,and __________.

Correct AnswerverifiedShow Answer

Three different objectives relate to a firm's profit,which is often measured in terms of return on investment.One objective,known as __________,is where a company gives up immediate profit in exchange for achieving a higher market share in the hopes of penetrating competitive markets.

Correct AnswerverifiedShow Answer

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would identify pricing objectives such as profit,market share,and survival?

Correct AnswerverifiedShow Answer

Figure 13-7 above shows that to maximize revenue,Red Baron should price its frozen cheese pizzas at __________ per unit.

Correct AnswerverifiedShow Answer

Products such as disposable diapers usually have

Correct AnswerverifiedShow Answer

What pricing strategy is used when a seller changes prices in response to its existing inventory and the prices of its competitors?

Correct AnswerverifiedShow Answer

From a marketing viewpoint,__________ is the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

Correct AnswerverifiedShow Answer

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Elastic demand exists when a small perce...
View Answer

Correct Answer
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