Question 1

With a cost-oriented pricing strategy,a price setter stresses the __________ side of the pricing problem and the price is set by looking at _________.

Accepted Answer

A)  demand; revenue
B)  production and marketing; profit
C)  demand; target sales
D)  cost; production and marketing costs
E)  cost; consumer tastesF) B) and D)
G) None of the above

Question 2

The ratio of __________ to price is referred to as value.

Accepted Answer

A)  prestige value
B)  perceived benefits
C)  costs
D)  perceived quality
E)  profitsF) A) and E)
G) A) and B)

Question 3

When Amazon introduced the Kindle Fire tablet device at $199 while Apple was selling the lowest price iPad for $499,Amazon was using a __________ pricing strategy.

Accepted Answer

A)  skimming
B)  price lining
C)  odd-even
D)  penetration
E)  loss-leaderF) None of the above
G) D) and E)

Question 4

A maximizing current profit objective implies that a company chooses to

Accepted Answer

A)  set targets whose performance can be measured quickly.
B)  give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets.
C)  set a profit goal that is often determined by its board of directors.
D)  reduce investment in any further market or product research.
E)  set prices based on return on sales.F) None of the above
G) D) and E)

Question 5

The executive vice president of Washburn Guitars has set a sales target of 2,000 units for a new line of guitars.This type of objective is a(n) ________ pricing objective.

Accepted Answer

A)  profit
B)  target return
C)  unit volume
D)  market share
E)  survivalF) A) and B)
G) A) and C)

Question 6

The quantity at which total revenue and total cost are equal is referred to as

Accepted Answer

A)  tipping point.
B)  profitability point.
C)  incremental return on investment.
D)  break-even point.
E)  sustainability.F) A) and E)
G) B) and C)

Question 7

Discounts refer to reductions from the __________ that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller.

Accepted Answer

A)  final price
B)  list price
C)  wholesaler's cost
D)  manufacturer's cost
E)  retailer's costF) A) and E)
G) B) and D)

Question 8

Which of the following statements about price elasticity of demand most accurate?

Accepted Answer

A)  The more substitutes a product has,the more likely it is to be price elastic.
B)  Almost all products show price inelasticity.
C)  Nondiscretionary,(necessary) purchases are price elastic.
D)  With inelastic demand,reducing price has a very large impact on revenues.
E)  With inelastic demand,manufacturers change prices frequently to capitalize on consumer behavior.F) A) and E)
G) D) and E)

Question 9

Forever Quilting is a small company that makes quilting kits priced at $120.The costs of the materials that go into each kit are $45.It costs $5 in labor to assemble a kit.The company has monthly expenses of $1,000 for rent and insurance,$200 for heat and electricity,$500 for advertising,and $4,500 for the monthly salary of its owner.Forever Quilting's unit variable cost for its kits is

Accepted Answer

A)  $5.
B)  $45.
C)  $50.
D)  $120.
E)  $170.F) A) and D)
G) A) and C)

Question 10

Barter is the practice of exchanging products and services for other products and services rather than for ___________.

Accepted Answer

A)  value
B)  ideas
C)  promises
D)  tariffs
E)  moneyF) B) and D)
G) B) and C)

Question 11

Large department store chains such as JC Penney generally use _________ pricing.

Accepted Answer

A)  above-market
B)  at-market
C)  below-market
D)  prestige pricing
E)  everyday low pricingF) B) and E)
G) A) and C)

Question 12

Target return-on-investment (ROI) is frequently used by

Accepted Answer

A)  contractors.
B)  public utilities.
C)  business-to-business markets.
D)  supermarkets.
E)  small privately owned firms.F) C) and D)
G) All of the above

Question 13

Which of the following is a cost-oriented pricing method?

Accepted Answer

A)  loss leader pricing
B)  standard markup pricing
C)  at-,above-,or below-market pricing
D)  price lining
E)  penetration pricingF) B) and D)
G) B) and C)

Question 14

Predatory pricing refers to

Accepted Answer

A)  the practice of charging a very low price for a product with the intent of driving competitors out of business.
B)  a conspiracy among firms to set prices for a product.
C)  using price differentials when charging different prices on the basis of race,religion,or ethnic affiliation.
D)  using price differentials when charging the original price for refurbished goods that have been damaged or used and returned but repaired according to company specifications.
E)  controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price.F) A) and E)
G) B) and E)

Question 15

-Consider the flexible pricing chart above,which shows the results of a National Bureau of Economic Research study of 750,000 car purchases.The data indicate that some groups of car buyers,on average,paid roughly $105,$423,and $483 respectively,for a new car in the $21,000 range than the typical purchaser.Who are the car buyers in "B?"

Accepted Answer

A)  women
B)  the elderly
C)  Hispanics
D)  African Americans
E)  Asian AmericansF) A) and C)
G) B) and D)

Question 16

UMD11: Price Premium Marketing Dashboard
-The UMD11: Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks.What is the price premium for Red Bull in 2010?

Accepted Answer

A)  -12.5%
B)  -7.5%
C)  -5.3%
D)  0%
E)  15.2%F) B) and D)
G) C) and E)

Question 17

Rather than emphasize demand,cost,or profit factors,a price setter can stress what __________ is (are) doing.

Accepted Answer

A)  the service sector
B)  "the market" or competitors
C)  the global economy
D)  suppliers
E)  the financial marketsF) A) and B)
G) All of the above

Question 18

Which of the following is a profit-oriented pricing method?

Accepted Answer

A)  target return-on-sales pricing
B)  loss leader pricing
C)  above-,at-,or below-market pricing
D)  price lining
E)  penetration pricingF) B) and E)
G) D) and E)

Question 19

When a firm offers a very low price on a product to attract customers to a store,and once in the store,the customer is persuaded to purchase a higher-priced item,the practice is referred to as

Accepted Answer

A)  predatory pricing.
B)  deceptive pricing.
C)  price discrimination.
D)  caveat emptor.
E)  bait and switch.F) A) and E)
G) B) and C)

Question 20

The ratio of the firm's sales revenues or unit sales to those of the industry (competitors plus the firm itself) is referred to as

Accepted Answer

A)  target return on sales.
B)  industry profit.
C)  unit volume.
D)  market share.
E)  profit.F) None of the above
G) A) and E)

Exam 11: Pricing Products and Services

Large department store chains such as JC Penney generally use _________ pricing.

Correct Answer
verified

The ratio of the firm's sales revenues or unit sales to those of the industry (competitors plus the firm itself) is referred to as

Correct Answer
verified

With a cost-oriented pricing strategy,a price setter stresses the __ side of the pricing problem and the price is set by looking at _.

Correct Answer
verified

The executive vice president of Washburn Guitars has set a sales target of 2,000 units for a new line of guitars.This type of objective is a(n) ________ pricing objective.

Correct Answer
verified

A maximizing current profit objective implies that a company chooses to

Correct Answer
verified

Which of the following is a cost-oriented pricing method?

Correct Answer
verified

When a firm offers a very low price on a product to attract customers to a store,and once in the store,the customer is persuaded to purchase a higher-priced item,the practice is referred to as

Correct Answer
verified

Which of the following statements about price elasticity of demand most accurate?

Correct Answer
verified

The ratio of __________ to price is referred to as value.

Correct Answer
verified

Discounts refer to reductions from the __________ that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller.

Correct Answer
verified

When Amazon introduced the Kindle Fire tablet device at $199 while Apple was selling the lowest price iPad for $499,Amazon was using a __________ pricing strategy.

Correct Answer
verified

Predatory pricing refers to

Correct Answer
verified

Barter is the practice of exchanging products and services for other products and services rather than for ___________.

Correct Answer
verified

Which of the following is a profit-oriented pricing method?

Correct Answer
verified

Rather than emphasize demand,cost,or profit factors,a price setter can stress what __________ is (are) doing.

Correct Answer
verified

The quantity at which total revenue and total cost are equal is referred to as

Correct Answer
verified

Target return-on-investment (ROI) is frequently used by

Correct Answer
verified

Correct Answer
verified

UMD11: Price Premium Marketing Dashboard -The UMD11: Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks.What is the price premium for Red Bull in 2010?

Correct Answer
verified

Correct Answer
verified

Exam 11: Pricing Products and Services

Large department store chains such as JC Penney generally use _________ pricing.

Correct AnswerverifiedShow Answer

The ratio of the firm's sales revenues or unit sales to those of the industry (competitors plus the firm itself) is referred to as

Correct AnswerverifiedShow Answer

With a cost-oriented pricing strategy,a price setter stresses the __________ side of the pricing problem and the price is set by looking at _________.

Correct AnswerverifiedShow Answer

The executive vice president of Washburn Guitars has set a sales target of 2,000 units for a new line of guitars.This type of objective is a(n) ________ pricing objective.

Correct AnswerverifiedShow Answer

A maximizing current profit objective implies that a company chooses to

Correct AnswerverifiedShow Answer

Which of the following is a cost-oriented pricing method?

Correct AnswerverifiedShow Answer

When a firm offers a very low price on a product to attract customers to a store,and once in the store,the customer is persuaded to purchase a higher-priced item,the practice is referred to as

Correct AnswerverifiedShow Answer

Which of the following statements about price elasticity of demand most accurate?

Correct AnswerverifiedShow Answer

The ratio of __________ to price is referred to as value.

Correct AnswerverifiedShow Answer

Discounts refer to reductions from the __________ that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller.

Correct AnswerverifiedShow Answer

When Amazon introduced the Kindle Fire tablet device at $199 while Apple was selling the lowest price iPad for $499,Amazon was using a __________ pricing strategy.

Correct AnswerverifiedShow Answer

Predatory pricing refers to

Correct AnswerverifiedShow Answer

Barter is the practice of exchanging products and services for other products and services rather than for ___________.

Correct AnswerverifiedShow Answer

Which of the following is a profit-oriented pricing method?

Correct AnswerverifiedShow Answer

Rather than emphasize demand,cost,or profit factors,a price setter can stress what __________ is (are) doing.

Correct AnswerverifiedShow Answer

The quantity at which total revenue and total cost are equal is referred to as

Correct AnswerverifiedShow Answer

Target return-on-investment (ROI) is frequently used by

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

UMD11: Price Premium Marketing Dashboard -The UMD11: Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks.What is the price premium for Red Bull in 2010?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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With a cost-oriented pricing strategy,a price setter stresses the __ side of the pricing problem and the price is set by looking at _.

Correct Answer
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