Question 1

All of the following statements about price are true except which?

Accepted Answer

A)  Small changes in price can have big effects on both the number of units sold and company profit.
B)  The price for a product or service must earn a profit for the company.
C)  For most products and services,there is an agreed-upon price range set by makers.
D)  The price must be "right"-in the sense that customers must be willing to pay it.
E)  The price must generate enough sales dollars to pay for the cost of developing,producing,and marketing the product.F) A) and E)
G) C) and E)

Question 2

RadioShack,an electronics retail chain,couldn't compete with the prices offered by other retailers.The company enacted price matching programs and promoted large discounts on its merchandise to raise cash and hopefully stave off bankruptcy.The best pricing objective at this point for RadioShack most likely was

Accepted Answer

A)  profit.
B)  market share.
C)  unit volume.
D)  survival.
E)  social responsibility.F) B) and D)
G) A) and D)

Question 3

Some firms pursue a ________ pricing objective to generate cash to ward off bankruptcy.

Accepted Answer

A)  market share
B)  survival
C)  sales revenue
D)  single product line
E)  profitF) A) and C)
G) A) and D)

Question 4

In order to deliver a product that the average consumer can afford,VIZIO

Accepted Answer

A)  handles product design and marketing in the United States and relies on contract manufacturers in other countries to build the product.
B)  uses mass customization in other countries and then ships the HDTVs to the United States.
C)  purchased a small company in China to distribute its products under the VIZIO name.
D)  purchased a small company in Japan to distribute its products under the VIZIO name.
E)  relies solely on recycled materials to build high-quality,no-frills products.F) C) and D)
G) A) and D)

Question 5

Mrs.Renfro's,Inc. ,sells 25 different relishes in 45 states.Mrs.Renfro's chipotle corn salsa is so popular that the company cannot make enough to keep its resellers stocked.Its price of $4.50 for a jar seems just right to consumers who savor its hot and spicy taste.The popularity of hot and spicy food is an example of a ________ that Mrs.Renfro's has taken advantage of to make its product a success.

Accepted Answer

A)  barter factor
B)  demand factor
C)  supply factor
D)  consumer index
E)  macroeconomic environmental factorF) B) and E)
G) C) and E)

Question 6

When Pizza Hut announced it was going to add 25 percent more toppings to its Meat Lover's line of pizzas without increasing prices,consumers benefited from an increase in what?

Accepted Answer

A)  cost
B)  appearance
C)  value
D)  price
E)  qualityF) B) and E)
G) None of the above

Question 7

________ are factors that limit the range of prices a firm may set.

Accepted Answer

A)  Price boundary conditions
B)  Pricing constraints
C)  Price elasticities
D)  Pricing demands
E)  Pricing marginsF) A) and B)
G) A) and E)

Question 8

The total expense incurred by a firm in producing and marketing a product,which equals the sum of fixed cost and variable cost,is referred to as

Accepted Answer

A)  overhead cost.
B)  total cost.
C)  unit cost.
D)  average cost.
E)  marginal cost.F) A) and C)
G) C) and D)

Question 9

The vertical axis of a demand curve graph represents

Accepted Answer

A)  market growth rate.
B)  relative market share.
C)  price per unit.
D)  potential profit in dollars.
E)  quantity demanded.F) B) and E)
G) All of the above

Question 10

The marketplace sets the price for wheat,so farmers who are trying to sell their wheat crops do not need a pricing strategy and do just a little advertising when a crop comes in.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 B)
G) D) and E)

Question 11

The maximum quantity of products consumers will buy at given price is shown by a

Accepted Answer

A)  demand curve.
B)  price constraint.
C)  break-even point.
D)  supply curve.
E)  marginal revenue curve.F) B) and E)
G) A) and B)

Question 12

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 ________ pricing objective.

Accepted Answer

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

Question 13

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)  readily accessible information
B)  low prices
C)  quality
D)  value
E)  warrantiesF) All of the above
G) B) and E)

Question 14

To reduce the price sensitivity for some of its products,Washburn Guitars

Accepted Answer

A)  uses multiple suppliers for its raw materials.
B)  offers three months of free music lessons with the purchase of each guitar.
C)  uses endorsements by internationally known musicians who play Washburn signature guitars.
D)  offers a lifetime,unconditional warranty on all its instruments regardless of the price of its guitars.
E)  sponsors free music programs and special Washburn guitar camps for children.F) B) and D)
G) All of the above

Question 15

Pricing constraints refers to

Accepted Answer

A)  barriers that must be overcome in order to set pricing objectives.
B)  competitive pricing advantages one firm has over another.
C)  different pricing strategies for each of the firm's products.
D)  factors that limit the range of prices a firm may set.
E)  barriers to entry a firm faces when launching a new product.F) B) and C)
G) C) and D)

Question 16

According to the price equation,final price equals list price minus ________ plus extra fees.

Accepted Answer

A)  profits
B)  commissions
C)  trade-ins
D)  taxes
E)  incentives and allowancesF) None of the above
G) B) and E)

Question 17

A demand curve is a graph that relates

Accepted Answer

A)  the quantity sold and price,which shows the maximum number of units that will be sold at a given price.
B)  revenues and costs,which shows the minimum number of units that must be sold to break even.
C)  the quantity sold and revenues,which shows the minimum number of units that must be sold in order to make a profit.
D)  total production costs to various price points in order to determine how many units must be sold in order to realize a predetermined profit.
E)  primary demand to selective demand,which shows the growth of the market compared to change in market share.F) B) and C)
G) C) and D)

Question 18

A primary reason for Washburn Guitars' success is

Accepted Answer

A)  underselling competitors by mass-producing fine-quality guitars.
B)  developing product lines at different price points for different market segments.
C)  offering significant price breaks to well-known performers in exchange for product endorsements.
D)  selling traditional American "rock 'n roll" guitars in global markets.
E)  setting up free music programs and donating low-price-point guitars to students in schools that have lost their music programs due to budget constraints.F) B) and D)
G) None of the above

Question 19

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) None of the above
G) C) and E)

Question 20

Which of the following statements would most likely be spoken by someone in the midst of estimating demand and revenue in the price-setting process?

Accepted Answer

A)  "It's important to offer discounts to seniors."
B)  "We have to try to achieve an 8 percent profit share."
C)  "The starting price should be $4.99 and we can raise the price again in six months."
D)  "But,if we increase the price even by $1,how many customers will we lose?"
E)  "We should probably price the extra-large version somewhere between $600 and $650."F) D) and E)
G) A) and E)

Exam 13: Building the Price Foundation

To reduce the price sensitivity for some of its products,Washburn Guitars

Correct Answer
verified

Some firms pursue a ________ pricing objective to generate cash to ward off bankruptcy.

Correct Answer
verified

When Pizza Hut announced it was going to add 25 percent more toppings to its Meat Lover's line of pizzas without increasing prices,consumers benefited from an increase in what?

Correct Answer
verified

All of the following statements about price are true except which?

Correct Answer
verified

In order to deliver a product that the average consumer can afford,VIZIO

Correct Answer
verified

Which of the following statements would most likely be spoken by someone in the midst of estimating demand and revenue in the price-setting process?

Correct Answer
verified

A demand curve is a graph that relates

Correct Answer
verified

The total expense incurred by a firm in producing and marketing a product,which equals the sum of fixed cost and variable cost,is referred to as

Correct Answer
verified

________ are factors that limit the range of prices a firm may set.

Correct Answer
verified

Correct Answer
verified

The maximum quantity of products consumers will buy at given price is shown by a

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 ________ pricing objective.

Correct Answer
verified

The vertical axis of a demand curve graph represents

Correct Answer
verified

Correct Answer
verified

The marketplace sets the price for wheat,so farmers who are trying to sell their wheat crops do not need a pricing strategy and do just a little advertising when a crop comes in.The wheat is sold in a(n) ________ type of competitive market.

Correct Answer
verified

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

According to the price equation,final price equals list price minus ________ plus extra fees.

Correct Answer
verified

Pricing constraints refers to

Correct Answer
verified

A primary reason for Washburn Guitars' success is

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

Exam 13: Building the Price Foundation

To reduce the price sensitivity for some of its products,Washburn Guitars

Correct AnswerverifiedShow Answer

Some firms pursue a ________ pricing objective to generate cash to ward off bankruptcy.

Correct AnswerverifiedShow Answer

When Pizza Hut announced it was going to add 25 percent more toppings to its Meat Lover's line of pizzas without increasing prices,consumers benefited from an increase in what?

Correct AnswerverifiedShow Answer

All of the following statements about price are true except which?

Correct AnswerverifiedShow Answer

In order to deliver a product that the average consumer can afford,VIZIO

Correct AnswerverifiedShow Answer

Which of the following statements would most likely be spoken by someone in the midst of estimating demand and revenue in the price-setting process?

Correct AnswerverifiedShow Answer

A demand curve is a graph that relates

Correct AnswerverifiedShow Answer

The total expense incurred by a firm in producing and marketing a product,which equals the sum of fixed cost and variable cost,is referred to as

Correct AnswerverifiedShow Answer

________ are factors that limit the range of prices a firm may set.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The maximum quantity of products consumers will buy at given price is shown by a

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 ________ pricing objective.

Correct AnswerverifiedShow Answer

The vertical axis of a demand curve graph represents

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The marketplace sets the price for wheat,so farmers who are trying to sell their wheat crops do not need a pricing strategy and do just a little advertising when a crop comes in.The wheat is sold in a(n) ________ type of competitive market.

Correct AnswerverifiedShow Answer

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

According to the price equation,final price equals list price minus ________ plus extra fees.

Correct AnswerverifiedShow Answer

Pricing constraints refers to

Correct AnswerverifiedShow Answer

A primary reason for Washburn Guitars' success is

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

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