Question 1

Standard markup pricing is considered to be a __________ approach to pricing.

Accepted Answer

A)   demand-oriented
B)   profit-oriented
C)   cost-oriented
D)   competition-oriented
E)   service-orientedF) C) and E)
G) A) and B)

Question 2

All of the following are competition-oriented approaches to selecting an approximate price level except which?

Accepted Answer

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

Question 3

What are the six broad objectives that an organization may pursue that tie in directly to its pricing policies?

Accepted Answer

The six broad objectives that ...

Question 4

A box of Cascade dishwasher detergent shrink-wrapped with a bottle of Jet Dry for 70 cents more than the regular price of the dishwasher detergent is an example of __________ pricing.

Accepted Answer

A)   penetration
B)   prestige
C)   bundle
D)   odd-even
E)   standard markupF) B) and C)
G) A) and D)

Question 5

Factors other than price affect demand.What are they and how do they work?

Accepted Answer

Price is not the complete story in estim...

Question 6

The money or other considerations (including other products and services) exchanged for the ownership or use of a product or service is referred to as

Accepted Answer

A)   a fee.
B)   value.
C)   remuneration.
D)   a price.
E)   an exchange rate.F) C) and D)
G) A) and B)

Question 7

Which of the following statements regarding cost-oriented approaches is most accurate?

Accepted Answer

A)   These methods focus on the demand side of the pricing problem.
B)   These methods account for production, marketing, and overhead expenses.
C)   Target return on investment is an example of a cost-oriented method.
D)   These methods are simple to use because costs predictably decrease with each doubling of production.
E)   Cost-oriented approaches are a subcategory of competition-oriented methods.F) B) and C)
G) All of the above

Question 8

What is the difference between a one-price policy and a dynamic-price policy?

Accepted Answer

A one-price policy,also called fixed pri...

Question 9

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) All of the above
G) C) and D)

Question 10

Cash payments or an extra amount of free goods awarded sellers in the channel for undertaking certain advertising or selling activities to promote the product is referred to as a

Accepted Answer

A)   promotional allowance.
B)   promotional quantity discount.
C)   seasonal discount.
D)   promotional purchase inducement.
E)   dynamic pricing policy.F) A) and B)
G) A) and C)

Question 11

Target pricing is considered to be a __________ approach to pricing.

Accepted Answer

A)   cost-oriented
B)   profit-oriented
C)   demand-oriented
D)   competition-oriented
E)   service-orientedF) None of the above
G) A) and D)

Question 12

A firm may forgo higher profit on sales and follow which of the following pricing objectives because it wants to recognize its stakeholder obligations?

Accepted Answer

A)   profit
B)   market share
C)   unit volume
D)   survival
E)   social responsibilityF) C) and D)
G) B) and E)

Question 13

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) C) and E)
G) A) and B)

Question 14

Pricing constraints are

Accepted Answer

A)   the controllable elements in a firm's marketing mix that allow it to charge the highest price possible.
B)   formulas used in establishing break-even points, price elasticity of demand, and marginal analysis of revenues and costs.
C)   factors that limit the range of prices a firm may set.
D)   factors that expand the range of prices a firm may set.
E)   virtual boundaries used when setting the initial price on a new product.F) A) and B)
G) D) and E)

Question 15

Figure 11-6a 
-In the break-even chart in Figure 11-6a,the triangular area FBE represents the firm's

Accepted Answer

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

Question 16

Which of the following statements about the price-setting process is most accurate?

Accepted Answer

A)   When selecting a strategy for setting an initial price, it doesn't matter which one you use as long as you stick with it.
B)   Sometimes pricing strategies overlap, and a seasoned marketer will consider several strategies when choosing an approximate price level.
C)   Demand-oriented pricing approaches rely heavily on competitors' prices.
D)   Skimming pricing is a competition-oriented pricing strategy.
E)   Penetration pricing is the best pricing strategy for companies trying to meet the goals of a profit-oriented pricing approach.F) A) and E)
G) C) and D)

Question 17

Each month,the owner of a car wash pays $2,500 in rent,$500 in utilities,$750 interest on the business loan,an insurance premium of $200,and $250 on advertising on local bus routes.A full-service car wash is priced at $10.0.0.0.0.50.Unit variable costs for the car wash are
$7) 50.At what level of revenue will the car wash break even?

Accepted Answer

A)   $4,200
B)   $10,500
C)   $14,700
D)   $30,000
E)   $39,900F) None of the above
G) B) and D)

Question 18

Two or more competitors explicitly or implicitly setting prices is referred to as

Accepted Answer

A)   competitive collusion.
B)   vertical price fixing.
C)   horizontal price fixing.
D)   lateral price fixing.
E)   price cooperation.F) A) and C)
G) None of the above

Question 19

Which of the following type of business is most likely to use cost-plus-percentage-of-cost pricing?

Accepted Answer

A)   real estate agency
B)   insurance company
C)   power company
D)   grocery store
E)   architectF) A) and E)
G) A) and B)

Question 20

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; profit
C)   demand; target sales
D)   cost; production and marketing costs
E)   cost; consumer tastesF) A) and B)
G) A) and E)

Exam 11: Pricing Products and Services

Correct Answer
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What are the six broad objectives that an organization may pursue that tie in directly to its pricing policies?

Correct Answer
verified
The six broad objectives that ...
View Answer

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

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
verified

A box of Cascade dishwasher detergent shrink-wrapped with a bottle of Jet Dry for 70 cents more than the regular price of the dishwasher detergent is an example of __________ pricing.

Correct Answer
verified

Standard markup pricing is considered to be a __________ approach to pricing.

Correct Answer
verified

All of the following are competition-oriented approaches to selecting an approximate price level except which?

Correct Answer
verified

Target pricing is considered to be a __________ approach to pricing.

Correct Answer
verified

Which of the following statements regarding cost-oriented approaches is most accurate?

Correct Answer
verified

Two or more competitors explicitly or implicitly setting prices is referred to as

Correct Answer
verified

Which of the following type of business is most likely to use cost-plus-percentage-of-cost pricing?

Correct Answer
verified

Pricing constraints are

Correct Answer
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Figure 11-6a -In the break-even chart in Figure 11-6a,the triangular area FBE represents the firm's

Correct Answer
verified

Cash payments or an extra amount of free goods awarded sellers in the channel for undertaking certain advertising or selling activities to promote the product is referred to as a

Correct Answer
verified

Factors other than price affect demand.What are they and how do they work?

Correct Answer
verified
Price is not the complete story in estim...
View Answer

A firm may forgo higher profit on sales and follow which of the following pricing objectives because it wants to recognize its stakeholder obligations?

Correct Answer
verified

Which of the following statements about the price-setting process is most accurate?

Correct Answer
verified

The money or other considerations (including other products and services) exchanged for the ownership or use of a product or service is referred to as

Correct Answer
verified

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

Correct Answer
verified

What is the difference between a one-price policy and a dynamic-price policy?

Correct Answer
verified
A one-price policy,also called fixed pri...
View Answer

Exam 11: Pricing Products and Services

Correct AnswerverifiedShow Answer

What are the six broad objectives that an organization may pursue that tie in directly to its pricing policies?

Correct AnswerverifiedThe six broad objectives that ...View AnswerShow Answer

Marketing two or more products in a single package price 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

A box of Cascade dishwasher detergent shrink-wrapped with a bottle of Jet Dry for 70 cents more than the regular price of the dishwasher detergent is an example of __________ pricing.

Correct AnswerverifiedShow Answer

Standard markup pricing is considered to be a __________ approach to pricing.

Correct AnswerverifiedShow Answer

All of the following are competition-oriented approaches to selecting an approximate price level except which?

Correct AnswerverifiedShow Answer

Target pricing is considered to be a __________ approach to pricing.

Correct AnswerverifiedShow Answer

Which of the following statements regarding cost-oriented approaches is most accurate?

Correct AnswerverifiedShow Answer

Two or more competitors explicitly or implicitly setting prices is referred to as

Correct AnswerverifiedShow Answer

Which of the following type of business is most likely to use cost-plus-percentage-of-cost pricing?

Correct AnswerverifiedShow Answer

Pricing constraints are

Correct AnswerverifiedShow Answer

Figure 11-6a -In the break-even chart in Figure 11-6a,the triangular area FBE represents the firm's

Correct AnswerverifiedShow Answer

Cash payments or an extra amount of free goods awarded sellers in the channel for undertaking certain advertising or selling activities to promote the product is referred to as a

Correct AnswerverifiedShow Answer

Factors other than price affect demand.What are they and how do they work?

Correct AnswerverifiedPrice is not the complete story in estim...View AnswerShow Answer

A firm may forgo higher profit on sales and follow which of the following pricing objectives because it wants to recognize its stakeholder obligations?

Correct AnswerverifiedShow Answer

Which of the following statements about the price-setting process is most accurate?

Correct AnswerverifiedShow Answer

The money or other considerations (including other products and services) exchanged for the ownership or use of a product or service is referred to as

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What is the difference between a one-price policy and a dynamic-price policy?

Correct AnswerverifiedA one-price policy,also called fixed pri...View AnswerShow Answer

Correct Answer
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Correct Answer
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The six broad objectives that ...
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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 .

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Price is not the complete story in estim...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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A one-price policy,also called fixed pri...
View Answer