Question 1

The total money received from the sale of a product is referred to as

Accepted Answer

A)   profit.
B)   total revenue.
C)   average revenue.
D)   marginal revenue.
E)   derived demand.F) A) and E)
G) A) and D)

Question 2

Figure 11-2
-Figure 11-2 above represents the four approaches to selecting an appropriate price level. Box A represents which approach?

Accepted Answer

A)   cost-oriented approach
B)   profit-oriented approach
C)   competition-oriented approach
D)   demand-oriented approach
E)   results-oriented approachF) A) and D)
G) All of the above

Question 3

Marketing two or more products in a single package price is referred to as

Accepted Answer

A)   package pricing.
B)   loss-leader pricing.
C)   bundle pricing.
D)   tie-in pricing.
E)   multiproduct pricing.F) D) and E)
G) A) and E)

Question 4

A target return profit pricing 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) A) and C)
G) C) and D)

Question 5

Consumers buy water and soda from vending machines. Usually the price of each of these products is about $1.50. If a marketer charges a significantly higher price for such products dispensed by vending machines, such as $2.50 per item, sales are likely to decline. In order to avoid declines in sales, marketers tend to be very consistent in the prices they charge for vending machine products. This is an example of marketers employing a ________ strategy.

Accepted Answer

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

Question 6

Rent, executive salaries, and insurance are typical examples of

Accepted Answer

A)   variable costs.
B)   fixed costs.
C)   unit costs.
D)   marginal costs.
E)   total costs.F) A) and E)
G) B) and E)

Question 7

A conspiracy among firms to set prices for a product is referred to as

Accepted Answer

A)   price discrimination.
B)   price fixing.
C)   predatory pricing.
D)   tying arrangements.
E)   exclusive dealing.F) A) and D)
G) A) and E)

Question 8

What are the three major steps involved in setting prices?

Accepted Answer

Step 1: Select an approximate price leve...

Question 9

Three pricing objectives relate to a firm's profit. In one known as ________, 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) B) and D)
G) A) and D)

Question 10

Describe a profit objective used by many Japanese manufacturing firms.

Accepted Answer

Managing for long-run profits is a prici...

Question 11

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

Accepted Answer

A)   the tipping point.
B)   the profitability point.
C)   incremental return on investment.
D)   the break-even point.
E)   sustainability.F) A) and D)
G) None of the above

Question 12

Why do manufacturers offer seasonal discounts to channel members? Provide an example of how one would work.

Accepted Answer

To encourage buyers to stock inventory e...

Question 13

What type of discount to resellers is based in part on where they are in the channel?

Accepted Answer

A)   seasonal discounts
B)   trade discounts
C)   cash discounts
D)   promotional allowances
E)   trade-in allowancesF) A) and C)
G) C) and E)

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 D)
G) C) and D)

Question 15

Figure 11-6a
-In the break-even chart in Figure 11-7a above, the wedge ABC represents the firm's

Accepted Answer

A)   fixed costs.
B)   break-even point.
C)   loss.
D)   profit.
E)   total revenue.F) D) and E)
G) B) and D)

Question 16

The ________ paid for products and services goes by many names, like tuition for your education, rent for an apartment, interest on a bank credit card, and a premium for car insurance.

Accepted Answer

A)   fee
B)   value
C)   cost
D)   price
E)   exchange rateF) A) and D)
G) C) and D)

Question 17

The latest in appliance technology allows your refrigerator to send messages to your smart phone and even photos of the interior to remind you of what you need to pick up at the store. Taking advantage of strong consumer demand for technology-enabled products, marketers set prices for these refrigerators at thousands above other models. These marketers are using a ________ pricing strategy.

Accepted Answer

A)   skimming
B)   penetration
C)   loss leader
D)   price lining
E)   bundleF) B) and D)
G) B) and E)

Question 18

Which of the following statements regarding pricing constraints is most accurate?

Accepted Answer

A)   When a product is in the introductory stage of the product life cycle, the initial price must be low since consumers don't know what the product can do.
B)   Patents and limited competition earlier in the life cycle mean that higher prices can usually be charged for new products.
C)   The greater the number of products in a company's product line, the less the product features of similar products can affect price.
D)   The newest addition to a company's product line should always have the highest price in order to maintain the value of existing brands.
E)   To avoid cannibalization, the newest product addition to a company's product line should never have a price lower than the other offerings in the line.F) C) and E)
G) B) and E)

Question 19

Which of the following illustrates movement along the demand curve?

Accepted Answer

A)   Prices remain the same, but there is a significant increase in demand.
B)   Prices remain the same, but there is a significant decrease in demand.
C)   As the price is raised, the quantity demanded increases, assuming all demand factors stay the same.
D)   As the price is lowered, the quantity demanded increases, assuming all demand factors stay the same.
E)   Movement along the curve indicates that some significant event has taken place outside the organization that has affected demand.F) A) and C)
G) A) and B)

Question 20

For most products, it is difficult to identify a specific market price for a product or product class. Still, marketing managers often have a subjective feel for the competitors' price or market price. Using this benchmark, they then may deliberately choose a strategy of

Accepted Answer

A)   above-, at-, or below-market pricing.
B)   loss-leader pricing.
C)   penetration pricing.
D)   standard markup pricing.
E)   experience curve pricing.F) D) and E)
G) A) and B)

Exam 11: Pricing Products and Services

The total money received from the sale of a product is referred to as

Correct Answer
verified

Which of the following statements regarding pricing constraints is most accurate?

Correct Answer
verified

Marketing two or more products in a single package price is referred to as

Correct Answer
verified

What are the three major steps involved in setting prices?

Correct Answer
verified
Step 1: Select an approximate price leve...
View Answer

Rent, executive salaries, and insurance are typical examples of

Correct Answer
verified

For most products, it is difficult to identify a specific market price for a product or product class. Still, marketing managers often have a subjective feel for the competitors' price or market price. Using this benchmark, they then may deliberately choose a strategy of

Correct Answer
verified

Three pricing objectives relate to a firm's profit. In one known as ________, a company gives up immediate profit in exchange for achieving a higher market share in the hopes of penetrating competitive markets.

Correct Answer
verified

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

Correct Answer
verified

Figure 11-6a -In the break-even chart in Figure 11-7a above, the wedge ABC represents the firm's

Correct Answer
verified

A conspiracy among firms to set prices for a product is referred to as

Correct Answer
verified

Why do manufacturers offer seasonal discounts to channel members? Provide an example of how one would work.

Correct Answer
verified
To encourage buyers to stock inventory e...
View Answer

Correct Answer
verified

What type of discount to resellers is based in part on where they are in the channel?

Correct Answer
verified

Correct Answer
verified

Figure 11-2 -Figure 11-2 above represents the four approaches to selecting an appropriate price level. Box A represents which approach?

Correct Answer
verified

A target return profit pricing objective implies that a company chooses to

Correct Answer
verified

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

Correct Answer
verified

The ________ paid for products and services goes by many names, like tuition for your education, rent for an apartment, interest on a bank credit card, and a premium for car insurance.

Correct Answer
verified

Which of the following illustrates movement along the demand curve?

Correct Answer
verified

Describe a profit objective used by many Japanese manufacturing firms.

Correct Answer
verified
Managing for long-run profits is a prici...
View Answer

Exam 11: Pricing Products and Services

The total money received from the sale of a product is referred to as

Correct AnswerverifiedShow Answer

Which of the following statements regarding pricing constraints is most accurate?

Correct AnswerverifiedShow Answer

Marketing two or more products in a single package price is referred to as

Correct AnswerverifiedShow Answer

What are the three major steps involved in setting prices?

Correct AnswerverifiedStep 1: Select an approximate price leve...View AnswerShow Answer

Rent, executive salaries, and insurance are typical examples of

Correct AnswerverifiedShow Answer

For most products, it is difficult to identify a specific market price for a product or product class. Still, marketing managers often have a subjective feel for the competitors' price or market price. Using this benchmark, they then may deliberately choose a strategy of

Correct AnswerverifiedShow Answer

Three pricing objectives relate to a firm's profit. In one known as ________, a company gives up immediate profit in exchange for achieving a higher market share in the hopes of penetrating competitive markets.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 11-6a -In the break-even chart in Figure 11-7a above, the wedge ABC represents the firm's

Correct AnswerverifiedShow Answer

A conspiracy among firms to set prices for a product is referred to as

Correct AnswerverifiedShow Answer

Why do manufacturers offer seasonal discounts to channel members? Provide an example of how one would work.

Correct AnswerverifiedTo encourage buyers to stock inventory e...View AnswerShow Answer

Correct AnswerverifiedShow Answer

What type of discount to resellers is based in part on where they are in the channel?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 11-2 -Figure 11-2 above represents the four approaches to selecting an appropriate price level. Box A represents which approach?

Correct AnswerverifiedShow Answer

A target return profit pricing objective implies that a company chooses to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The ________ paid for products and services goes by many names, like tuition for your education, rent for an apartment, interest on a bank credit card, and a premium for car insurance.

Correct AnswerverifiedShow Answer

Which of the following illustrates movement along the demand curve?

Correct AnswerverifiedShow Answer

Describe a profit objective used by many Japanese manufacturing firms.

Correct AnswerverifiedManaging for long-run profits is a prici...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified
Step 1: Select an approximate price leve...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
To encourage buyers to stock inventory e...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Managing for long-run profits is a prici...
View Answer