Question 1

To increase value, marketers have the option of

Accepted Answer

A)  decreasing benefits.
B)  decreasing benefits and increasing price.
C)  decreasing price and increasing benefits.
D)  decreasing price and decreasing benefits.
E)  do nothing and let the perceived value of the item increase as it matures in the life cycle.F) B) and C)
G) All of the above

Question 2

Gerber supplies a specially formulated product free of charge to children who cannot tolerate foods based on cow's milk.Gerber is most likely exercising a __________ objective.

Accepted Answer

A)  survival of the fittest
B)  social responsibility
C)  public service announcement
D)  product awareness
E)  competitor rivalryF) B) and D)
G) B) and C)

Question 3

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

Accepted Answer

A)  value-added pricing
B)  perceived benefits
C)  perceived revenue
D)  perceived costs
E)  prestige valueF) A) and E)
G) B) and C)

Question 4

Creative Quilts Studio sells hundreds of colors and types of thread and fabric.To price its inventory, the owners of the studio add 50 percent to the cost of each bolt of fabric and every spool of thread.What is this pricing method called?

Accepted Answer

A)  target return-on-sales pricing
B)  flexible pricing
C)  cost-plus fixed-fee pricing
D)  standard markup pricing
E)  customary pricingF) All of the above
G) A) and E)

Question 5

Using _________, many retailers deliberately sell products below their normal prices (and sometimes below cost)  to attract attention and induce additional store traffic.

Accepted Answer

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

Question 6

________

Accepted Answer

A)  consumers perceive your product to be similar to other products on the market.
B)  a lower price will significantly reduce unit costs.
C)  consumers tend to be price sensitive.
D)  it will be easier to set measureable sale unit goals.
E)  when the high initial prices do not attract competitors.F) A) and B)
G) A) and C)

Question 7

Total cost refers to

Accepted Answer

A)  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.
B)  the total expense incurred by a firm in producing and marketing a product; the sum of fixed cost and variable cost.
C)  the expense incurred by a firm in producing and marketing a product is referred to as overhead.
D)  the average amount of money received for selling one unit of a product or simply the price of that unit.
E)  the sum of the expenses of the firm deducted from the revenue generated by the sale of the product.F) A) and B)
G) B) and C)

Question 8

General Motors, Ford, and Chrysler have all recently experienced financial distress because

Accepted Answer

A)  the Asian markets such as China, India, and Japan entered the North American market and captured an even larger share.
B)  the value pricing strategy used by the "big three" was flawed and North American's perceptions of value had changed.
C)  their costs got out of control, causing their total costs to exceed their total revenues.
D)  they were continually using deceptive pricing when establishing the manufactured suggested retail price on their vehicles.
E)  their product line was not changing with the times in order to meet changing environmental standards regarding emissions.F) B) and C)
G) B) and E)

Question 9

The practice of replacing promotional allowances with lower manufacturer list prices is referred to as

Accepted Answer

A)  everyday low pricing.
B)  FOB origin pricing.
C)  trade-in allowances.
D)  single-zone pricing.
E)  basing-point pricing.F) B) and D)
G) None of the above

Question 10

Explain predatory pricing.

Accepted Answer

Predatory pricing is the practice of cha...

Question 11

When you buy a car from CarMax, you are offered the car at a single price.You can buy it or not, but there is no variation in price because of the seller's

Accepted Answer

A)  customary pricing strategy.
B)  odd-even pricing.
C)  one-price policy.
D)  predatory pricing strategy.
E)  price discrimination policy.F) B) and E)
G) A) and B)

Question 12

FIGURE 12-6 
-Figure 12-6 above shows that when the quantity demanded moves from 3.0 to 6 million units, the profit

Accepted Answer

A)  increases from $1.50 to $2.00 per unit.
B)  decreases from $2.00 to $1.50 per unit.
C)  stays the same per unit.
D)  increases from $.50 to $1.50 per unit.
E)  Figure 12-6 does not indicate what happens to profit when the quantity demanded moves.F) A) and E)
G) C) and D)

Question 13

Four cost concepts are important in pricing decisions: total cost, fixed cost, variable cost, and __________ cost.

Accepted Answer

A)  dividends
B)  liquidity
C)  discretionary
D)  unit variable
E)  marginalF) B) and D)
G) A) and B)

Question 14

The sum of the expenses of a firm that is stable and does not change with the quantity of the product that is produced and sold is referred to as

Accepted Answer

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

Question 15

The total expense incurred by a firm in producing and marketing its products or services; the sum of fixed cost and variable cost, is referred to as

Accepted Answer

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

Question 16

At tendollars.com they offer thousands of gifts, all priced at-ten dollars.This is an example of two pricing methods working in tandem.Most likely they are using a __________ and a __________ strategy.

Accepted Answer

A)  customary pricing; skimming
B)  odd-even pricing; loss-leader pricing
C)  one-price policy; below market pricing
D)  predatory pricing strategy; loss-leader pricing
E)  everyday low pricing; skimming pricingF) C) and D)
G) A) and D)

Question 17

Setting prices a few dollars or cents under an even number is referred to as _________.

Accepted Answer

A)  odd-even pricing
B)  prestige pricing
C)  price lining
D)  bakers dozens
E)  price fixingF) B) and C)
G) B) and D)

Question 18

FIGURE 12-8 
-Figure 12-8 above represents the final three generalized steps in the pricing process.Assume pricing objectives and constraints, estimating demand and revenue, determining the cost, volume, and profit relationships have been completed.Accordingly, at this point cell "B" represents the step at which a firm would

Accepted Answer

A)  make special adjustments to the listed or quoted price.
B)  determine the financial viability of the company.
C)  set the list or quoted price.
D)  ensure the legal and regulatory constraints can be meet.
E)  select an appropriate price level.F) D) and E)
G) A) and E)

Question 19

The horizontal axis of a demand curve graph represents _________.

Accepted Answer

A)  quantity sold
B)  production cost per unit
C)  price per unit
D)  potential profit in dollars
E)  quantity demandedF) A) and B)
G) C) and E)

Question 20

In order to deliver a product that the average consumer could afford, Vizio used the strategy of

Accepted Answer

A)  having the product design and marketing done in the United States and having contract manufacturers in Taiwan, build the product.
B)  using mass customization in Taiwan and making individual product changes in the United States.
C)  purchasing a small company in China and distributing their product under the Vizio name.
D)  purchasing a small company in Japan and distributing their product under the Vizio name.
E)  relying solely on local talent and recycled materials to build high quality but no frills.F) D) and E)
G) None of the above

Exam 12: Pricing Products and Services

Total cost refers to

Correct Answer
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Correct Answer
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________

Correct Answer
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General Motors, Ford, and Chrysler have all recently experienced financial distress because

Correct Answer
verified

At tendollars.com they offer thousands of gifts, all priced at-ten dollars.This is an example of two pricing methods working in tandem.Most likely they are using a and a strategy.

Correct Answer
verified

In order to deliver a product that the average consumer could afford, Vizio used the strategy of

Correct Answer
verified

Explain predatory pricing.

Correct Answer
verified
Predatory pricing is the practice of cha...
View Answer

Gerber supplies a specially formulated product free of charge to children who cannot tolerate foods based on cow's milk.Gerber is most likely exercising a __________ objective.

Correct Answer
verified

The sum of the expenses of a firm that is stable and does not change with the quantity of the product that is produced and sold is referred to as

Correct Answer
verified

The horizontal axis of a demand curve graph represents _________.

Correct Answer
verified

Using _________, many retailers deliberately sell products below their normal prices (and sometimes below cost) to attract attention and induce additional store traffic.

Correct Answer
verified

The practice of replacing promotional allowances with lower manufacturer list prices is referred to as

Correct Answer
verified

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

Correct Answer
verified

Setting prices a few dollars or cents under an even number is referred to as _________.

Correct Answer
verified

To increase value, marketers have the option of

Correct Answer
verified

FIGURE 12-6 -Figure 12-6 above shows that when the quantity demanded moves from 3.0 to 6 million units, the profit

Correct Answer
verified

The total expense incurred by a firm in producing and marketing its products or services; the sum of fixed cost and variable cost, is referred to as

Correct Answer
verified

Four cost concepts are important in pricing decisions: total cost, fixed cost, variable cost, and __________ cost.

Correct Answer
verified

Creative Quilts Studio sells hundreds of colors and types of thread and fabric.To price its inventory, the owners of the studio add 50 percent to the cost of each bolt of fabric and every spool of thread.What is this pricing method called?

Correct Answer
verified

When you buy a car from CarMax, you are offered the car at a single price.You can buy it or not, but there is no variation in price because of the seller's

Correct Answer
verified

Exam 12: Pricing Products and Services

Total cost refers to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

________

Correct AnswerverifiedShow Answer

General Motors, Ford, and Chrysler have all recently experienced financial distress because

Correct AnswerverifiedShow Answer

At tendollars.com they offer thousands of gifts, all priced at-ten dollars.This is an example of two pricing methods working in tandem.Most likely they are using a __________ and a __________ strategy.

Correct AnswerverifiedShow Answer

In order to deliver a product that the average consumer could afford, Vizio used the strategy of

Correct AnswerverifiedShow Answer

Explain predatory pricing.

Correct AnswerverifiedPredatory pricing is the practice of cha...View AnswerShow Answer

Gerber supplies a specially formulated product free of charge to children who cannot tolerate foods based on cow's milk.Gerber is most likely exercising a __________ objective.

Correct AnswerverifiedShow Answer

The sum of the expenses of a firm that is stable and does not change with the quantity of the product that is produced and sold is referred to as

Correct AnswerverifiedShow Answer

The horizontal axis of a demand curve graph represents _________.

Correct AnswerverifiedShow Answer

Using _________, many retailers deliberately sell products below their normal prices (and sometimes below cost) to attract attention and induce additional store traffic.

Correct AnswerverifiedShow Answer

The practice of replacing promotional allowances with lower manufacturer list prices is referred to as

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Setting prices a few dollars or cents under an even number is referred to as _________.

Correct AnswerverifiedShow Answer

To increase value, marketers have the option of

Correct AnswerverifiedShow Answer

FIGURE 12-6 -Figure 12-6 above shows that when the quantity demanded moves from 3.0 to 6 million units, the profit

Correct AnswerverifiedShow Answer

The total expense incurred by a firm in producing and marketing its products or services; the sum of fixed cost and variable cost, is referred to as

Correct AnswerverifiedShow Answer

Four cost concepts are important in pricing decisions: total cost, fixed cost, variable cost, and __________ cost.

Correct AnswerverifiedShow Answer

Creative Quilts Studio sells hundreds of colors and types of thread and fabric.To price its inventory, the owners of the studio add 50 percent to the cost of each bolt of fabric and every spool of thread.What is this pricing method called?

Correct AnswerverifiedShow Answer

When you buy a car from CarMax, you are offered the car at a single price.You can buy it or not, but there is no variation in price because of the seller's

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

At tendollars.com they offer thousands of gifts, all priced at-ten dollars.This is an example of two pricing methods working in tandem.Most likely they are using a and a strategy.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Predatory pricing is the practice of cha...
View Answer

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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