Question 1

Which of the following statements about the factors that influence demand is true?

Accepted Answer

A)   As the availability of close substitutes increases, the demand for a product increases.
B)   As real consumer income increases, the demand for a product increases.
C)   As the price of close substitutes increases, the demand for a product declines.
D)   Changing consumer tastes have little impact on the demand for a product.
E)   As real consumer income decreases, the demand for a product increases.F) C) and E)
G) B) and C)

Question 2

A dynamic pricing policy allows marketers to respond to

Accepted Answer

A)   requests for allowances.
B)   threats of discrimination.
C)   success measures for the firm's previous promotions.
D)   changes in demand, cost, and competitive factors.
E)   inquiries by government agencies.F) All of the above
G) A) and D)

Question 3

All of the following are alternate names for price except which?

Accepted Answer

A)   a premium
B)   barter
C)   tuition
D)   a commission
E)   profitF) B) and E)
G) D) and E)

Question 4

To promote their business,some psychics advertise free tarot-card readings and other insights into their customers' futures on television.Unfortunately,this "free reading" has cost some unsuspecting callers as much as $700 in phone charges.This sort of pricing practice would be primarily monitored by the

Accepted Answer

A)   Consumer Protection Agency.
B)   U.S. Department of Justice.
C)   Federal Trade Commission.
D)   Federal Communications Commission.
E)   Consumer Product Safety Commission.F) B) and C)
G) A) and E)

Question 5

Swedish company Asko,which prides itself on manufacturing and marketing some of the best-built and most prestigious appliances in the world,would probably use which competition-oriented pricing approach?

Accepted Answer

A)   customary pricing
B)   above-market pricing
C)   loss-leader pricing
D)   at-market pricing
E)   penetration pricingF) A) and C)
G) B) and C)

Question 6

A new car dealer can reduce the list price of a new Ford F-150 pickup truck by offering you a __________ of $1,000 for your 2006 Nissan Altima.

Accepted Answer

A)   cash discount
B)   functional discount
C)   seasonal discount
D)   trade-in allowance
E)   promotional allowanceF) A) and B)
G) A) and E)

Question 7

All of the following are examples of pricing objectives except which?

Accepted Answer

A)   market share
B)   survival
C)   unit sales
D)   social responsibility
E)   competitors' pricesF) B) and C)
G) A) and E)

Question 8

Fixed cost refers to

Accepted Answer

A)   the sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold.
B)   the total expense incurred by a firm in producing and marketing a product, which equals the sum of overhead cost and variable cost.
C)   the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold.
D)   the average amount of money received for selling one unit of a product or simply the price of that unit.
E)   the change in expenses that results from producing and marketing one additional unit of a product.F) None of the above
G) C) and D)

Question 9

The sum of the firm's expenses that change with the quantity of the product that is produced and sold is referred to as

Accepted Answer

A)   fixed cost.
B)   total cost.
C)   marginal cost.
D)   unit cost.
E)   variable cost.F) A) and E)
G) None of the above

Question 10

99, $869.99,etc.American Furniture Warehouse uses

Accepted Answer

A)   odd-even pricing.
B)   dynamic pricing.
C)   price lining.
D)   bundle pricing.
E)   product-line pricing.F) A) and E)
G) A) and B)

Question 11

Given that a firm's profit is high enough for it to remain in business,an objective may be to __________,which will in turn lead to increases in market share and profit.

Accepted Answer

A)   increase the commitment to social responsibility
B)   increase dollar sales revenue
C)   decrease unit volume while maintaining price
D)   increase research and development funding for new product line extensions
E)   continue with previous policies that seem to be workingF) B) and E)
G) A) and C)

Question 12

Companies use a __________ to assess whether its products and brands are above,at,or below the market.

Accepted Answer

A)   customary price
B)   prestige price
C)   price premium
D)   price lining
E)   cost benchmarkF) A) and B)
G) A) and C)

Question 13

Discounts are 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) C) and D)
G) B) and C)

Question 14

After setting an approximate price level,the marketer proceeds to which step of the price-setting process?

Accepted Answer

A)   defining the scope of the product
B)   seeking regulatory approval for the price point
C)   setting the list or quoted price
D)   evaluating the success of the price strategy
E)   making special adjustments to the list priceF) A) and E)
G) A) and D)

Question 15

When estimating demand,price is not the only factor to be considered.Three other elements emphasized by economists are consumer tastes,price and availability of similar products,and

Accepted Answer

A)   consumer income.
B)   consumer psychographics.
C)   size of the target market.
D)   current political agendas.
E)   green substitutes.F) A) and C)
G) A) and B)

Question 16

A skimming pricing policy is likely to be most effective when

Accepted Answer

A)   consumers perceive the company's product to be similar to other products on the market.
B)   a lower price will significantly lower fixed costs.
C)   the company's product is easily and quickly duplicated.
D)   consumers tend to be price-sensitive.
E)   the high initial price will not attract competitors.F) All of the above
G) D) and E)

Question 17

Using a price that is dictated by tradition,a standardized channel of distribution,or other competitive factors is referred to as

Accepted Answer

A)   cost-plus pricing.
B)   customary pricing.
C)   standard markup pricing.
D)   loss-leader pricing.
E)   target profit pricing.F) All of the above
G) None of the above

Question 18

The first Apple iPhone was introduced in 2007 at an initial price of $600.People waited in line overnight so they could be one of the first to own this unique smartphone.Which pricing strategy did Apple use to help recoup its costs for developing the smartphone?

Accepted Answer

A)  penetration pricing
B)  experience curve pricing
C)  customary pricing
D)  skimming pricing
E)  target pricingF) All of the above
G) D) and E)

Question 19

Rather than billing clients by the hour,some lawyers and their clients agree on a fixed fee based on expected costs plus an agreed upon level of profit for the law firm.Which pricing approach are they using?

Accepted Answer

A)   target pricing
B)   cost-plus pricing
C)   customary pricing
D)   experience curve pricing
E)   bundle pricingF) A) and D)
G) B) and D)

Question 20

The break-even point (BEP) = [Fixed cost / (__________ - Unit variable cost) ].

Accepted Answer

A)   Total cost
B)   Total expense
C)   Fixed cost
D)   Unit variable cost
E)   Unit priceF) C) and E)
G) A) and B)

Exam 11: Pricing Products and Services

All of the following are examples of pricing objectives except which?

Correct Answer
verified

Discounts are 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

A new car dealer can reduce the list price of a new Ford F-150 pickup truck by offering you a __________ of $1,000 for your 2006 Nissan Altima.

Correct Answer
verified

All of the following are alternate names for price except which?

Correct Answer
verified

A skimming pricing policy is likely to be most effective when

Correct Answer
verified

When estimating demand,price is not the only factor to be considered.Three other elements emphasized by economists are consumer tastes,price and availability of similar products,and

Correct Answer
verified

Rather than billing clients by the hour,some lawyers and their clients agree on a fixed fee based on expected costs plus an agreed upon level of profit for the law firm.Which pricing approach are they using?

Correct Answer
verified

Which of the following statements about the factors that influence demand is true?

Correct Answer
verified

Swedish company Asko,which prides itself on manufacturing and marketing some of the best-built and most prestigious appliances in the world,would probably use which competition-oriented pricing approach?

Correct Answer
verified

The sum of the firm's expenses that change with the quantity of the product that is produced and sold is referred to as

Correct Answer
verified

The first Apple iPhone was introduced in 2007 at an initial price of $600.People waited in line overnight so they could be one of the first to own this unique smartphone.Which pricing strategy did Apple use to help recoup its costs for developing the smartphone?

Correct Answer
verified

Using a price that is dictated by tradition,a standardized channel of distribution,or other competitive factors is referred to as

Correct Answer
verified

Correct Answer
verified

After setting an approximate price level,the marketer proceeds to which step of the price-setting process?

Correct Answer
verified

Fixed cost refers to

Correct Answer
verified

Companies use a __________ to assess whether its products and brands are above,at,or below the market.

Correct Answer
verified

99, $869.99,etc.American Furniture Warehouse uses

Correct Answer
verified

The break-even point (BEP) = [Fixed cost / (__________ - Unit variable cost) ].

Correct Answer
verified

A dynamic pricing policy allows marketers to respond to

Correct Answer
verified

Given that a firm's profit is high enough for it to remain in business,an objective may be to __________,which will in turn lead to increases in market share and profit.

Correct Answer
verified

Exam 11: Pricing Products and Services

All of the following are examples of pricing objectives except which?

Correct AnswerverifiedShow Answer

Discounts are 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

A new car dealer can reduce the list price of a new Ford F-150 pickup truck by offering you a __________ of $1,000 for your 2006 Nissan Altima.

Correct AnswerverifiedShow Answer

All of the following are alternate names for price except which?

Correct AnswerverifiedShow Answer

A skimming pricing policy is likely to be most effective when

Correct AnswerverifiedShow Answer

When estimating demand,price is not the only factor to be considered.Three other elements emphasized by economists are consumer tastes,price and availability of similar products,and

Correct AnswerverifiedShow Answer

Rather than billing clients by the hour,some lawyers and their clients agree on a fixed fee based on expected costs plus an agreed upon level of profit for the law firm.Which pricing approach are they using?

Correct AnswerverifiedShow Answer

Which of the following statements about the factors that influence demand is true?

Correct AnswerverifiedShow Answer

Swedish company Asko,which prides itself on manufacturing and marketing some of the best-built and most prestigious appliances in the world,would probably use which competition-oriented pricing approach?

Correct AnswerverifiedShow Answer

The sum of the firm's expenses that change with the quantity of the product that is produced and sold is referred to as

Correct AnswerverifiedShow Answer

The first Apple iPhone was introduced in 2007 at an initial price of $600.People waited in line overnight so they could be one of the first to own this unique smartphone.Which pricing strategy did Apple use to help recoup its costs for developing the smartphone?

Correct AnswerverifiedShow Answer

Using a price that is dictated by tradition,a standardized channel of distribution,or other competitive factors is referred to as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

After setting an approximate price level,the marketer proceeds to which step of the price-setting process?

Correct AnswerverifiedShow Answer

Fixed cost refers to

Correct AnswerverifiedShow Answer

Companies use a __________ to assess whether its products and brands are above,at,or below the market.

Correct AnswerverifiedShow Answer

99, $869.99,etc.American Furniture Warehouse uses

Correct AnswerverifiedShow Answer

The break-even point (BEP) = [Fixed cost / (__________ - Unit variable cost) ].

Correct AnswerverifiedShow Answer

A dynamic pricing policy allows marketers to respond to

Correct AnswerverifiedShow Answer

Given that a firm's profit is high enough for it to remain in business,an objective may be to __________,which will in turn lead to increases in market share and profit.

Correct AnswerverifiedShow Answer

Correct Answer
verified

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