Question 1

In Figure 13-4 above,column "D" represents which type of competitive market?

Accepted Answer

A)  pure monopoly
B)  oligopoly
C)  monopolistic competition
D)  pure competition
E)  monopolistic oligopolyF) A) and D)
G) C) and E)

Question 2

The break-even point for a large grain farming operation was calculated to be 2 million bushels of corn.Break-even analysis would take place during which step of the price-setting process?

Accepted Answer

A)  identify pricing objectives and constraints
B)  determine cost,volume,and profit relationships
C)  estimate demand and revenue
D)  select an approximate price level
E)  make special adjustments to list or quoted priceF) B) and C)
G) B) and D)

Question 3

A company that manages apartments decides to buy 15 new dishwashers at a list price of $550 each as replacements for old dishwashers in a small apartment complex it owns.Because the company is buying more than 10 dishwashers,it is eligible for a $150-per-unit quantity discount.Financing charges total $20 per unit.The company gets $10 per dishwasher for the 15 dishwashers traded in.What is the final price the company will pay for each dishwasher (not the total cost) ?

Accepted Answer

A)  $390
B)  $400
C)  $410
D)  $430
E)  $730F) C) and D)
G) B) and E)

Question 4

Fixed cost refers to

Accepted Answer

A)  the sum of the expenses of the firm that vary directly 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,which equals the sum of overhead cost and variable cost.
C)  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.
D)  the average amount of money received for selling one unit of a product or simply the price of that unit.
E)  the change in expenses that results from producing and marketing one additional unit of a product.F) A) and D)
G) A) and C)

Question 5

The marketing director for a(n) __________ is most likely to believe the following statement,"The purpose of advertising is to increase demand for the product class."

Accepted Answer

A)  oligopolist competitor
B)  monopolistic competitor
C)  pure competition competitor
D)  pure monopolist competitor
E)  competitive oligopolist competitorF) B) and D)
G) A) and D)

Question 6

In the process of setting price,a marketer must first identify pricing objectives and constraints.Next,in Step 2,three specific estimates are necessary.What are they?

Accepted Answer

The three key items in Step 2 ...

Question 7

Small regional producers selling grocery products have a special problem because they need to set prices at which both they and their channel members can profit while

Accepted Answer

A)  competing with other brands to gain valuable space on supermarket shelves.
B)  still maintaining local customer loyalty.
C)  trying to go head-to-head or steal market share from nationally recognized brands.
D)  keeping other regional businesses from entering the market.
E)  avoiding cannibalization if they sell their product both in stores and online.F) A) and B)
G) A) and C)

Question 8

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would conduct a break-even analysis?

Accepted Answer

A)  "A"
B)  "B"
C)  "C"
D)  "D"
E)  "E"F) B) and C)
G) A) and B)

Question 9

A firm's profit objective is often measured in terms of ROI.The acronym ROI stands for __________.

Accepted Answer

A)  risk opportunity investment
B)  revised organizational incentives
C)  return on investment
D)  regulated organizational investments
E)  replenishment of organizational inventoriesF) A) and B)
G) All of the above

Question 10

Which pricing constraint does the following statement demonstrate: "Most public utilities must petition regulatory commissions in order to obtain a rate increase."?

Accepted Answer

A)  demand for the product,class,or brand
B)  newness of product in the life cycle
C)  costs of production
D)  type of competitive market
E)  single product versus a product lineF) B) and C)
G) None of the above

Question 11

Washburn Guitars markets its guitars to four distinct market segments.The firm's mass-produced instruments are targeted at

Accepted Answer

A)  first-time buyers.
B)  professional musicians.
C)  stars and famous musicians.
D)  guitar collectors and music aficionados.
E)  intermediate-skill players who may become professional musicians.F) A) and E)
G) C) and D)

Question 12

Walmart lies on the border between __________.

Accepted Answer

A)  oligopoly and pure monopoly
B)  monopolistic competition and pure monopoly
C)  pure competition and monopolistic competition
D)  monopolistic competition and oligopoly
E)  pure competition and pure monopolyF) A) and C)
G) B) and C)

Question 13

Demand factors refer to

Accepted Answer

A)  the number of consumers who can afford to purchase a product or service.
B)  the price that should be charged for a given product.
C)  consumers' willingness and ability to pay for products and services.
D)  the number of consumers who want to purchase a product.
E)  the number of consumers who can purchase a product.F) A) and B)
G) B) and E)

Question 14

Most consumers realize that the quality of diamonds varies,and most believe the higher the price of a diamond,the higher its quality.This is an example of price influencing the perception of overall quality,and therefore __________ to consumers.

Accepted Answer

A)  acceptable cost
B)  perceptual investment
C)  barter potential
D)  return on investment
E)  valueF) All of the above
G) A) and C)

Question 15

Marketing executives must translate estimates of customer demand into estimates of

Accepted Answer

A)  personnel.
B)  advertising expenditures.
C)  ancillary product support.
D)  revenues the firm expects to receive.
E)  supply.F) B) and C)
G) A) and C)

Question 16

Three different objectives relate to a firm's profit,which have different implications for pricing strategy.The three profit-oriented objectives include __________,managing current profit,and achieving a target return.

Accepted Answer

A)  accumulating profits
B)  managing for long-run profits
C)  reinvesting profits
D)  redistributing profits
E)  maximizing gross marginF) B) and E)
G) A) and E)

Question 17

A graphic presentation of the break-even analysis that shows when total revenue and total cost intersect to identify profit or loss for a given quantity sold is referred to as a __________.

Accepted Answer

A)  Gantt chart
B)  demand curve
C)  ROI analysis
D)  cross-tabulation
E)  break-even chartF) A) and C)
G) B) and D)

Question 18

In Figure 13-10 above,which is a break-even chart that depicts a graphic presentation of a break-even analysis for a picture frame store,the orange/red-shaded area "FBE" represents the firm's

Accepted Answer

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

Question 19

Which of the following statements regarding a market share pricing objective is MOST ACCURATE?

Accepted Answer

A)  A market share objective is often difficult for product managers since stockholders are looking for immediate dividends (return of profits) .
B)  Although increased market share is a primary goal of some firms,others see it as a means to other ends,such as increased sales or profits.
C)  Selecting market share as a pricing objective is particularly effective if industry sales are rising.
D)  An advantage of market share as a pricing objective is that it is particularly insensitive to competitors' actions.
E)  Ironically,a market share objective is realized by raising prices in order to increase consumer confidence during the decline stage of a product's life cycle.F) C) and D)
G) A) and E)

Question 20

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

Accepted Answer

A)  Pricing objectives should never change.
B)  Pricing objectives may change depending on the financial position of the company.
C)  Pricing objectives may change depending upon the relative market share of competitors.
D)  Pricing objectives are established exclusively by the marketing department.
E)  Pricing objectives are extremely sensitive to even the slightest change in the local economy.F) B) and E)
G) B) and D)

Exam 13: Building the Price Foundation

Washburn Guitars markets its guitars to four distinct market segments.The firm's mass-produced instruments are targeted at

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

In Figure 13-4 above,column "D" represents which type of competitive market?

Correct Answer
verified

Fixed cost refers to

Correct Answer
verified

In the process of setting price,a marketer must first identify pricing objectives and constraints.Next,in Step 2,three specific estimates are necessary.What are they?

Correct Answer
verified
The three key items in Step 2 ...
View Answer

A graphic presentation of the break-even analysis that shows when total revenue and total cost intersect to identify profit or loss for a given quantity sold is referred to as a __________.

Correct Answer
verified

The marketing director for a(n) __________ is most likely to believe the following statement,"The purpose of advertising is to increase demand for the product class."

Correct Answer
verified

Demand factors refer to

Correct Answer
verified

Which of the following statements regarding a market share pricing objective is MOST ACCURATE?

Correct Answer
verified

Which pricing constraint does the following statement demonstrate: "Most public utilities must petition regulatory commissions in order to obtain a rate increase."?

Correct Answer
verified

Small regional producers selling grocery products have a special problem because they need to set prices at which both they and their channel members can profit while

Correct Answer
verified

Walmart lies on the border between __________.

Correct Answer
verified

Three different objectives relate to a firm's profit,which have different implications for pricing strategy.The three profit-oriented objectives include __________,managing current profit,and achieving a target return.

Correct Answer
verified

A firm's profit objective is often measured in terms of ROI.The acronym ROI stands for __________.

Correct Answer
verified

The break-even point for a large grain farming operation was calculated to be 2 million bushels of corn.Break-even analysis would take place during which step of the price-setting process?

Correct Answer
verified

In Figure 13-10 above,which is a break-even chart that depicts a graphic presentation of a break-even analysis for a picture frame store,the orange/red-shaded area "FBE" represents the firm's

Correct Answer
verified

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would conduct a break-even analysis?

Correct Answer
verified

Marketing executives must translate estimates of customer demand into estimates of

Correct Answer
verified

Most consumers realize that the quality of diamonds varies,and most believe the higher the price of a diamond,the higher its quality.This is an example of price influencing the perception of overall quality,and therefore __________ to consumers.

Correct Answer
verified

Exam 13: Building the Price Foundation

Washburn Guitars markets its guitars to four distinct market segments.The firm's mass-produced instruments are targeted at

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In Figure 13-4 above,column "D" represents which type of competitive market?

Correct AnswerverifiedShow Answer

Fixed cost refers to

Correct AnswerverifiedShow Answer

In the process of setting price,a marketer must first identify pricing objectives and constraints.Next,in Step 2,three specific estimates are necessary.What are they?

Correct AnswerverifiedThe three key items in Step 2 ...View AnswerShow Answer

A graphic presentation of the break-even analysis that shows when total revenue and total cost intersect to identify profit or loss for a given quantity sold is referred to as a __________.

Correct AnswerverifiedShow Answer

The marketing director for a(n) __________ is most likely to believe the following statement,"The purpose of advertising is to increase demand for the product class."

Correct AnswerverifiedShow Answer

Demand factors refer to

Correct AnswerverifiedShow Answer

Which of the following statements regarding a market share pricing objective is MOST ACCURATE?

Correct AnswerverifiedShow Answer

Which pricing constraint does the following statement demonstrate: "Most public utilities must petition regulatory commissions in order to obtain a rate increase."?

Correct AnswerverifiedShow Answer

Small regional producers selling grocery products have a special problem because they need to set prices at which both they and their channel members can profit while

Correct AnswerverifiedShow Answer

Walmart lies on the border between __________.

Correct AnswerverifiedShow Answer

Three different objectives relate to a firm's profit,which have different implications for pricing strategy.The three profit-oriented objectives include __________,managing current profit,and achieving a target return.

Correct AnswerverifiedShow Answer

A firm's profit objective is often measured in terms of ROI.The acronym ROI stands for __________.

Correct AnswerverifiedShow Answer

The break-even point for a large grain farming operation was calculated to be 2 million bushels of corn.Break-even analysis would take place during which step of the price-setting process?

Correct AnswerverifiedShow Answer

In Figure 13-10 above,which is a break-even chart that depicts a graphic presentation of a break-even analysis for a picture frame store,the orange/red-shaded area "FBE" represents the firm's

Correct AnswerverifiedShow Answer

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would conduct a break-even analysis?

Correct AnswerverifiedShow Answer

Marketing executives must translate estimates of customer demand into estimates of

Correct AnswerverifiedShow Answer

Most consumers realize that the quality of diamonds varies,and most believe the higher the price of a diamond,the higher its quality.This is an example of price influencing the perception of overall quality,and therefore __________ to consumers.

Correct AnswerverifiedShow Answer

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verified
The three key items in Step 2 ...
View Answer

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Correct Answer
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Correct Answer
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