Question 1

Which of the following illustrates a shift in the demand curve?

Accepted Answer

A)   When prices remain the same, there is a significant decrease in demand.
B)   As the price is raised, the quantity demanded increases, assuming all else stays the same.
C)   When prices remain the same, there is an increase or decrease in demand.
D)   As the price is lowered, the quantity demanded decreases, assuming all else stays the same.
E)   An internal matter has forced a price change of some type, but it does not impact demand.F) C) and E)
G) B) and D)

Question 2

In some cases,penetration pricing may follow which pricing strategy?

Accepted Answer

A)   experience curve
B)   target ROI
C)   odd-even
D)   above market
E)   skimmingF) All of the above
G) A) and E)

Question 3

Figure 11-3b 1 to D2 shown in Figure 11-3b? A)  The firm increased its prices and consumers perceived the value of the product to be greater. B)  There were fewer product substitutes available in the marketplace. C)  Competitors in the market raised their prices. D)  A recession occurred that raised consumers' incomes. E)  The firm's price remained the same but changes occurred in consumer tastes." class="answers-bank-image d-inline" rel="preload" >
-Which of the following statements most likely would account for the shift in the demand curve from D1 to D2 shown in Figure 11-3b?

Accepted Answer

A)   The firm increased its prices and consumers perceived the value of the product to be greater.
B)   There were fewer product substitutes available in the marketplace.
C)   Competitors in the market raised their prices.
D)   A recession occurred that raised consumers' incomes.
E)   The firm's price remained the same but changes occurred in consumer tastes.F) B) and C)
G) B) and E)

Question 4

Figure 11-6a 
-Suppose you are the owner of a picture frame store.Let's assume that the average price customers are willing to pay for each picture frame is $120.20.20.20.20.20.20.20.Also,suppose your fixed costs (FC) total $32,000 (real estate taxes,interest on a bank loan,etc.) and unit variable cost (UVC) for a picture frame is $40 (labor,glass,frame,and matting) .Figure 11-6a shows that by selling 800 picture frames,you will

Accepted Answer

A)   break even.
B)   earn a profit.
C)   incur a loss.
D)   have no fixed costs.
E)   have no variable costs.F) B) and E)
G) A) and B)

Question 5

Four cost concepts are important in pricing decisions: total cost,variable cost,unit variable cost,and

Accepted Answer

A)   dividend cost.
B)   liquidity cost.
C)   discretionary cost.
D)   fixed cost.
E)   elastic cost.F) A) and B)
G) D) and E)

Question 6

Another name for a one-price policy is

Accepted Answer

A)   customary pricing.
B)   fixed pricing.
C)   dynamic pricing.
D)   standard markup pricing.
E)   uniform pricing.F) None of the above
G) B) and E)

Question 7

A technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output is referred to as

Accepted Answer

A)   break-even analysis.
B)   marginal analysis.
C)   sensitivity analysis.
D)   market analysis.
E)   tipping point analysis.F) A) and B)
G) C) and E)

Question 8

Deliberately selling a product below its customary price,not to increase sales,but to attract customers' attention in hopes that they will buy other products as well,is referred to as

Accepted Answer

A)   loss-leader pricing.
B)   bundle pricing.
C)   magnet pricing.
D)   predatory pricing.
E)   below-market pricing.F) B) and D)
G) C) and E)

Question 9

An ad campaign by Suave shampoo asked television viewers to identify the heads of hair of women who used Suave shampoo and conditioner and those that used the much more expensive salon hair-care products.The idea of the ad was that no one could tell which woman used the much cheaper Suave brand.By making price its selling point,Suave is most likely using

Accepted Answer

A)   customary pricing.
B)   loss-leader pricing.
C)   prestige pricing.
D)   skimming pricing.
E)   below-market pricing.F) All of the above
G) B) and C)

Question 10

The two forms of cost-plus pricing are

Accepted Answer

A)   cost-plus-fixed-fee pricing and cost-plus-variable-fee pricing.
B)   cost-plus-ROI pricing and cost-minus-ROI pricing.
C)   target return on sales pricing and target return on investment pricing.
D)   cost-plus-percentage-of-cost pricing and cost-plus-fixed-fee pricing.
E)   dynamic pricing and flexible pricing.F) C) and D)
G) A) and C)

Question 11

From a marketing viewpoint,__________ is the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

Accepted Answer

A)   value
B)   price
C)   barter
D)   currency
E)   a tariffF) A) and C)
G) B) and D)

Question 12

Specifying the role of price in an organization's marketing and strategic plans is referred to as

Accepted Answer

A)   choosing a pricing plan.
B)   defining a profit mission.
C)   developing pricing constraints.
D)   setting pricing objectives.
E)   determining the list or quoted price.F) A) and B)
G) A) and E)

Question 13

You are selling a new line of t-shirts on the boardwalk.The selling price will be $25 per shirt.The labor cost is $5 per shirt.The administrative costs of operating the company are estimated to be $60,000 annually and the sales and marketing expenses are $20,000 a year.Additionally,the cost of materials will be $10 per shirt.What is the break-even quantity?

Accepted Answer

A)   2,000 shirts
B)   3,200 shirts
C)   5,334 shirts
D)   8,000 shirts
E)   16,000 shirtsF) A) and D)
G) All of the above

Question 14

Mrs.Renfro's,Inc.,sells 25 different relishes in 45 different states.Its Chipotle Corn Salsa is so popular that the company struggles to keep its resellers stocked.At .50 a jar,its price seems just right to consumers who savor its hot and spicy taste.The popularity of spicy food is an example of a __________ on which Mrs.Renfro's has capitalized.

Accepted Answer

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

Question 15

Suppose you are the owner of a picture frame store and you wish to calculate how many frames you must sell to cover your fixed and variable costs at a given price.Let's assume that the demand for your frames is strong,so the average price customers are willing to pay for each picture frame is $120.20.20.20.20.20.20.20.Also,suppose your fixed costs (FC) total $32,000 (real estate taxes,interest on a bank loan,etc.) and unit variable cost (UVC) for a picture frame is $40 (labor,glass,frame,and matting) .If your picture frame store sold 2,000 picture frames,what would your profit (or loss) be?

Accepted Answer

A)   a loss of $32,000
B)   $0
C)   $32,000 profit
D)   $112,000 profit
E)   $128,000 profitF) C) and D)
G) A) and B)

Question 16

A reference value involves comparing the costs and benefits of

Accepted Answer

A)   substitute items.
B)   items of equal or greater value.
C)   products with which a consumer is familiar and items the consumer has not seen or used before.
D)   items from one particular manufacturer or distributor.
E)   intangible items.F) B) and E)
G) None of the above

Question 17

To encourage retailers to pay their bills quickly,manufacturers offer them

Accepted Answer

A)   quantity discounts.
B)   cash discounts.
C)   flexible pricing policies.
D)   promotional allowances.
E)   manufacturer's inducements.F) A) and B)
G) A) and C)

Question 18

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 B)
G) B) and D)

Question 19

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

Accepted Answer

A)   prestige rating
B)   perceived benefits
C)   costs
D)   perceived quality
E)   profitsF) B) and E)
G) All of the above

Question 20

The price-setting process identifies pricing objectives and constraints.Describe the reasons these objectives may change and give examples of objectives a firm may set.

Accepted Answer

Pricing objectives involve specifying th...

Exam 11: Pricing Products and Services

Correct Answer
verified

Specifying the role of price in an organization's marketing and strategic plans is referred to as

Correct Answer
verified

Correct Answer
verified

Which of the following illustrates a shift in the demand curve?

Correct Answer
verified

To encourage retailers to pay their bills quickly,manufacturers offer them

Correct Answer
verified

Four cost concepts are important in pricing decisions: total cost,variable cost,unit variable cost,and

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
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A reference value involves comparing the costs and benefits of

Correct Answer
verified

The two forms of cost-plus pricing are

Correct Answer
verified

From a marketing viewpoint,__________ is the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

Correct Answer
verified

A technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output is referred to as

Correct Answer
verified

Another name for a one-price policy is

Correct Answer
verified

Deliberately selling a product below its customary price,not to increase sales,but to attract customers' attention in hopes that they will buy other products as well,is referred to as

Correct Answer
verified

In some cases,penetration pricing may follow which pricing strategy?

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

The price-setting process identifies pricing objectives and constraints.Describe the reasons these objectives may change and give examples of objectives a firm may set.

Correct Answer
verified
Pricing objectives involve specifying th...
View Answer

Figure 11-3b -Which of the following statements most likely would account for the shift in the demand curve from D₁ to D₂ shown in Figure 11-3b?

Correct Answer
verified

Exam 11: Pricing Products and Services

Correct AnswerverifiedShow Answer

Specifying the role of price in an organization's marketing and strategic plans is referred to as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following illustrates a shift in the demand curve?

Correct AnswerverifiedShow Answer

To encourage retailers to pay their bills quickly,manufacturers offer them

Correct AnswerverifiedShow Answer

Four cost concepts are important in pricing decisions: total cost,variable cost,unit variable cost,and

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A reference value involves comparing the costs and benefits of

Correct AnswerverifiedShow Answer

The two forms of cost-plus pricing are

Correct AnswerverifiedShow Answer

From a marketing viewpoint,__________ is the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

Correct AnswerverifiedShow Answer

A technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output is referred to as

Correct AnswerverifiedShow Answer

Another name for a one-price policy is

Correct AnswerverifiedShow Answer

Deliberately selling a product below its customary price,not to increase sales,but to attract customers' attention in hopes that they will buy other products as well,is referred to as

Correct AnswerverifiedShow Answer

In some cases,penetration pricing may follow which pricing strategy?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The price-setting process identifies pricing objectives and constraints.Describe the reasons these objectives may change and give examples of objectives a firm may set.

Correct AnswerverifiedPricing objectives involve specifying th...View AnswerShow Answer

Figure 11-3b -Which of the following statements most likely would account for the shift in the demand curve from D1 to D2 shown in Figure 11-3b?

Correct AnswerverifiedShow Answer

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Correct Answer
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Pricing objectives involve specifying th...
View Answer

Figure 11-3b -Which of the following statements most likely would account for the shift in the demand curve from D₁ to D₂ shown in Figure 11-3b?

Correct Answer
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