Question 1

Which of the following represent elements of Step 2 of the price-setting process?

Accepted Answer

A)   profit, market share, and survival
B)   estimation of demand, sales revenue, and price elasticity
C)   cost estimation, marginal analysis, and break-even analysis
D)   demand for the product class and brand, newness of the product, and competition
E)   market segmentation targeting, and positioningF) A) and C)
G) C) and E)

Question 2

the CEO of the Clorox Company were to say,"We want to control 60 percent of the bleach market within the next five years," he would have set a __________ pricing objective.

Accepted Answer

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

Question 3

price of tickets to a Los Angeles Lakers game can be attributed to

Accepted Answer

A)   the scalping of tickets on StubHub.
B)   sales taxes charged by online ticket sellers like Ticketmaster.
C)   the popularity of players like Candace Parker of the Los Angeles Sparks.
D)   the rise of online pricing in resold tickets and the supply-demand interaction for high-interest sporting events.
E)   losses due to declines in sales of television rights.F) A) and E)
G) B) and E)

Question 4

increase value,marketers may __________,decrease price,or do both.

Accepted Answer

A)   decrease benefits
B)   increase benefits
C)   increase price
D)   increase advertising
E)   do nothing and let the perceived value of the item increase as it matures in the life cycleF) B) and C)
G) None of the above

Question 5

Break-even analysis refers to

Accepted Answer

A)   a process that investigates the difference between marginal revenue and marginal cost.
B)   a method of determining just how much a consumer is willing to pay for a product or service.
C)   a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output.
D)   the process of determining the quantity of product consumers will buy relative to the quantity produced by the firm.
E)   the graph that shows the maximum number of products consumers will buy at a given price.F) C) and E)
G) B) and C)

Question 6

Washburn Guitars markets its guitars to four distinct market segments.The firm's one-of-kind custom instruments are targeted at

Accepted Answer

A)   first-time buyers.
B)   professional musicians.
C)   stars and famous musicians.
D)   large institutional buyers such as high school and collegiate band programs.
E)   intermediate-skill players who may become professional musicians.F) A) and B)
G) A) and E)

Question 7

Washburn sells their guitars through a number of channels such as chains and online dealers,but they feel it is their independent dealers who sell the guitar for them.In recognition of their hard work,Washburn takes a smaller profit margin from them because they have to do more work.In essence,this special adjustment to the list price or quoted price is an example of a(n)

Accepted Answer

A)   quantity discount.
B)   seasonal discount.
C)   trade discount.
D)   cash discount.
E)   promotional allowance.F) B) and E)
G) A) and E)

Question 8

demand curve graph typically appears as

Accepted Answer

A)   a parabola with the apex representing the highest price that can be charged without losing customers.
B)   a diagonal line going from upper left to lower right demonstrating that as price goes down, demand goes up.
C)   an inverted parabola with the lowest point representing the lowest price that can be charged and still meet the company's profit objectives.
D)   a diagonal line going from lower left to upper right demonstrating that as prices go up, demand goes up proportionately.
E)   two intersecting lines that identify the point at which supply and demand are exactly the same.F) B) and E)
G) D) and E)

Question 9

Price refers to

Accepted Answer

A)   the value assigned to the exchange of products and services for other products and services.
B)   the value judgment made by both the buyer and seller regarding an item's worth.
C)   the money or other considerations (including other products and services)  exchanged for the ownership or use of a product or service.
D)   the value assessed for the benefits of using a product or service.
E)   the highest monetary value a customer is willing to pay for a product or service.F) C) and E)
G) C) and D)

Question 10

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

Question 11

Total revenue refers to

Accepted Answer

A)   the profit made from selling a product or service.
B)   the net gain in sales revenue if the unit price is lowered.
C)   the least number of units sold needed to cover product, distribution, and promotional costs.
D)   the amount by which marginal costs exceed fixed costs.
E)   the total money received from the sale of a product.F) None of the above
G) B) and E)

Question 12

According to the price equation,final price equals __________ minus incentives and allowances plus extra fees.

Accepted Answer

A)   salaries
B)   list price
C)   profits
D)   trade-ins
E)   taxesF) B) and C)
G) A) and C)

Question 13

Which of the following statements about the factors that influence demand is true?

Accepted Answer

A)   As the availability of close substitutes increases, the demand for a product increases.
B)   As real consumer income increases, the demand for a product increases.
C)   As the price of close substitutes increases, the demand for a product declines.
D)   Changing consumer tastes have little impact on the demand for a product.
E)   As real consumer income decreases, the demand for a product increases.F) A) and B)
G) A) and C)

Question 14

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 demandF) A) and D)
G) B) and D)

Question 15

Figure 13-10A
-Figure 13-10A above,"Z" represents

Accepted Answer

A)   MR = MC
B)   fixed cost
C)   marginal cost
D)   variable cost
E)   marginal revenueF) B) and C)
G) C) and E)

Question 16

Creative marketers engage in value-pricing,which is the practice of simultaneously increasing product and service benefits and __________.

Accepted Answer

A)   increasing costs
B)   increasing price
C)   increasing advertising
D)   decreasing costs
E)   maintaining or decreasing priceF) A) and B)
G) A) and E)

Question 17

Figure 13-2
-Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would assess the constraints on the demand for the product class and brand?

Accepted Answer

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

Question 18

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 Americans' perceptions of value had changed.
C)   they were continually using deceptive pricing when establishing the manufacturer's suggested retail price on their vehicles.
D)   their costs got out of control, causing their total costs to exceed their total revenues.
E)   their product line was not changing with the times in order to meet changing environmental standards regarding emissions.F) A) and B)
G) A) and C)

Question 19

Estimating cost,conducting a marginal analysis,and performing a break-even analysis are issues that would be addressed during __________ of the price-setting process.

Accepted Answer

A)   Step 1
B)   Step 2
C)   Step 3
D)   Step 4
E)   Step 5F) C) and E)
G) A) and B)

Question 20

Economists have identified four types of competitive markets: pure monopoly,pure competition,oligopoly,and __________.

Accepted Answer

A)   capitalism
B)   socialism
C)   monopolistic competition
D)   consumer-dominated
E)   government-dominatedF) All of the above
G) A) and D)

Exam 13: Building the Price Foundation

Total revenue refers to

Correct Answer
verified

price of tickets to a Los Angeles Lakers game can be attributed to

Correct Answer
verified

Economists have identified four types of competitive markets: pure monopoly,pure competition,oligopoly,and __________.

Correct Answer
verified

Which of the following represent elements of Step 2 of the price-setting process?

Correct Answer
verified

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

Correct Answer
verified

increase value,marketers may __________,decrease price,or do both.

Correct Answer
verified

Figure 13-10A -Figure 13-10A above,"Z" represents

Correct Answer
verified

Washburn Guitars markets its guitars to four distinct market segments.The firm's one-of-kind custom instruments are targeted at

Correct Answer
verified

Break-even analysis refers to

Correct Answer
verified

Price refers to

Correct Answer
verified

Figure 13-2 -Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would assess the constraints on the demand for the product class and brand?

Correct Answer
verified

Correct Answer
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demand curve graph typically appears as

Correct Answer
verified

Creative marketers engage in value-pricing,which is the practice of simultaneously increasing product and service benefits and __________.

Correct Answer
verified

Which of the following statements about the factors that influence demand is true?

Correct Answer
verified

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 CEO of the Clorox Company were to say,"We want to control 60 percent of the bleach market within the next five years," he would have set a __________ pricing objective.

Correct Answer
verified

According to the price equation,final price equals __________ minus incentives and allowances plus extra fees.

Correct Answer
verified

Estimating cost,conducting a marginal analysis,and performing a break-even analysis are issues that would be addressed during __________ of the price-setting process.

Correct Answer
verified

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

Correct Answer
verified

Exam 13: Building the Price Foundation

Total revenue refers to

Correct AnswerverifiedShow Answer

price of tickets to a Los Angeles Lakers game can be attributed to

Correct AnswerverifiedShow Answer

Economists have identified four types of competitive markets: pure monopoly,pure competition,oligopoly,and __________.

Correct AnswerverifiedShow Answer

Which of the following represent elements of Step 2 of the price-setting process?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

increase value,marketers may __________,decrease price,or do both.

Correct AnswerverifiedShow Answer

Figure 13-10A -Figure 13-10A above,"Z" represents

Correct AnswerverifiedShow Answer

Washburn Guitars markets its guitars to four distinct market segments.The firm's one-of-kind custom instruments are targeted at

Correct AnswerverifiedShow Answer

Break-even analysis refers to

Correct AnswerverifiedShow Answer

Price refers to

Correct AnswerverifiedShow Answer

Figure 13-2 -Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would assess the constraints on the demand for the product class and brand?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

demand curve graph typically appears as

Correct AnswerverifiedShow Answer

Creative marketers engage in value-pricing,which is the practice of simultaneously increasing product and service benefits and __________.

Correct AnswerverifiedShow Answer

Which of the following statements about the factors that influence demand is true?

Correct AnswerverifiedShow Answer

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 CEO of the Clorox Company were to say,"We want to control 60 percent of the bleach market within the next five years," he would have set a __________ pricing objective.

Correct AnswerverifiedShow Answer

According to the price equation,final price equals __________ minus incentives and allowances plus extra fees.

Correct AnswerverifiedShow Answer

Estimating cost,conducting a marginal analysis,and performing a break-even analysis are issues that would be addressed during __________ of the price-setting process.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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