Question 1

Which of the following statements regarding price changes is most accurate?

Accepted Answer

A)  Prices for tangible goods should change monthly,whereas service prices should change quarterly.
B)  Changing a product's price too frequently creates antagonism among consumers,yet changing prices too infrequently makes them feel the company is not improving its product sufficiently.
C)  Supermarkets should change their prices every week since customers are expecting new prices in the weekly flyers they receive in the mail.
D)  Companies selling products over the Internet can instantly change their prices whenever the need arises.
E)  Internet price changes are regulated by the Internet Fair Practices Act to protect consumers against price gouging.F) B) and E)
G) A) and E)

Question 2

The competitive market situation in which one seller sets the price for a unique product is referred to as

Accepted Answer

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

Question 3

Figure 13-3
 
-In Figure 13-3 above,column D represents which type of competitive market?

Accepted Answer

A)  an oligopoly
B)  monopolistic competition
C)  a pure monopoly
D)  pure competition
E)  oligopolistic competitionF) B) and D)
G) All of the above

Question 4

Companies often pursue a market share objective when

Accepted Answer

A)  industry sales are flat or declining.
B)  profits are increasing.
C)  industry sales are beginning to rise.
D)  there is a sudden increase in production costs.
E)  stockholders are seeking higher dividends.F) B) and E)
G) B) and C)

Question 5

If you know the contents and price of a McDonald's Extra Value Meal,it may serve as ________ to you when you visit other fast-food restaurants and consider the purchase of a meal option there.

Accepted Answer

A)  a marginal analysis
B)  a profit equation
C)  a reference value
D)  a break-even analysis
E)  price elasticity of demandF) C) and D)
G) A) and D)

Question 6

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.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) All of the above
G) D) and E)

Question 7

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 success of a company's products.
C)  Pricing objectives may change depending upon the cost of advertising.
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) A) and D)
G) B) and E)

Question 8

Which of the following would be an example of a constraint in Step 1 of the price-setting process?

Accepted Answer

A)  We can rely on our reputation for our other products in the line.
B)  Experts are predicting a surge in global demand.
C)  We need to make allowances for large quantity orders.
D)  We should increase the price during the holiday shopping season.
E)  Remember,we don't know what the demand for this new product will be.F) A) and B)
G) None of the above

Question 9

What is the difference between a movement along a demand curve and a shift of a demand curve?

Accepted Answer

A movement along a demand curve assumes ...

Question 10

Step 1 of 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...

Question 11

All of the following are examples of pricing constraints except which?

Accepted Answer

A)  familiarity of the product
B)  competitors' prices
C)  newness of the product
D)  unit volume
E)  demand for the product class,product,or brandF) C) and D)
G) A) and B)

Question 12

The ratio of perceived benefits to ________ is referred to as value.

Accepted Answer

A)  price
B)  prestige
C)  perceived quality
D)  profits
E)  discountsF) D) and E)
G) A) and D)

Question 13

Three different objectives relate to a firm's profit.One objective,known as ________,is common in many firms because the targets can be set and performance measured quickly.

Accepted Answer

A)  managing for long-run profits
B)  target return
C)  break-even strategy
D)  maximizing current profit
E)  minimizing riskF) A) and C)
G) A) and E)

Question 14

Demand factors are

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)  elements that determine consumers' willingness and ability to pay for products.
D)  the number of consumers who want to purchase a product.
E)  the number of consumers who can purchase a product.F) B) and E)
G) All of the above

Question 15

Market share is the ratio of the ________ to those of the industry,including the firm itself.

Accepted Answer

A)  target return on sales
B)  marginal profit of the firm
C)  firm's sales revenues or unit sales
D)  marketing expenses of the firm
E)  profits of the firmF) C) and D)
G) C) and E)

Question 16

The break-even point (BEP) = [Fixed cost ÷ (Unit price − ________) ].

Accepted Answer

A)  Total cost
B)  Total expense
C)  Marginal revenue
D)  Unit variable cost
E)  Total number of units produced or quantityF) C) and D)
G) None of the above

Question 17

A movement along a demand curve (up or down) for a product occurs ________,assuming that other factors such as consumer tastes,price and availability of substitutes,and consumer incomes remain unchanged.

Accepted Answer

A)  when its price is lowered or increased and the quantity demanded for it correspondingly increases or decreases
B)  when its demand is lowered or increased and the price offered for it correspondingly increases or decreases
C)  when its demand and price are lowered
D)  when its demand and price are increased
E)  at the break-even pointF) B) and E)
G) A) and E)

Question 18

Rent,executive salaries,and insurance are typical examples of

Accepted Answer

A)  variable costs.
B)  fixed costs.
C)  unit costs.
D)  marginal costs.
E)  total costs.F) All of the above
G) None of the above

Question 19

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 20

Figure 13-7
 
-The break-even chart for a picture frame store in Figure 13-7 above shows that by selling 200 pictures,the store 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 D)
G) A) and B)

Exam 13: Building the Price Foundation

Three different objectives relate to a firm's profit.One objective,known as ________,is common in many firms because the targets can be set and performance measured quickly.

Correct Answer
verified

Step 1 of 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

Companies often pursue a market share objective when

Correct Answer
verified

Market share is the ratio of the ________ to those of the industry,including the firm itself.

Correct Answer
verified

Demand factors are

Correct Answer
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What is the difference between a movement along a demand curve and a shift of a demand curve?

Correct Answer
verified
A movement along a demand curve assumes ...
View Answer

Figure 13-7 -The break-even chart for a picture frame store in Figure 13-7 above shows that by selling 200 pictures,the store will

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

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

Correct Answer
verified

The competitive market situation in which one seller sets the price for a unique product is referred to as

Correct Answer
verified

Which of the following would be an example of a constraint in Step 1 of the price-setting process?

Correct Answer
verified

Figure 13-3 -In Figure 13-3 above,column D represents which type of competitive market?

Correct Answer
verified

Rent,executive salaries,and insurance are typical examples of

Correct Answer
verified

A movement along a demand curve (up or down) for a product occurs ________,assuming that other factors such as consumer tastes,price and availability of substitutes,and consumer incomes remain unchanged.

Correct Answer
verified

All of the following are examples of pricing constraints except which?

Correct Answer
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The break-even point (BEP) = [Fixed cost ÷ (Unit price − ________) ].

Correct Answer
verified

Which of the following statements regarding price changes is most accurate?

Correct Answer
verified

If you know the contents and price of a McDonald's Extra Value Meal,it may serve as ________ to you when you visit other fast-food restaurants and consider the purchase of a meal option there.

Correct Answer
verified

The ratio of perceived benefits to ________ is referred to as value.

Correct Answer
verified

Correct Answer
verified

Exam 13: Building the Price Foundation

Three different objectives relate to a firm's profit.One objective,known as ________,is common in many firms because the targets can be set and performance measured quickly.

Correct AnswerverifiedShow Answer

Step 1 of 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

Companies often pursue a market share objective when

Correct AnswerverifiedShow Answer

Market share is the ratio of the ________ to those of the industry,including the firm itself.

Correct AnswerverifiedShow Answer

Demand factors are

Correct AnswerverifiedShow Answer

What is the difference between a movement along a demand curve and a shift of a demand curve?

Correct AnswerverifiedA movement along a demand curve assumes ...View AnswerShow Answer

Figure 13-7 -The break-even chart for a picture frame store in Figure 13-7 above shows that by selling 200 pictures,the store will

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

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

Correct AnswerverifiedShow Answer

The competitive market situation in which one seller sets the price for a unique product is referred to as

Correct AnswerverifiedShow Answer

Which of the following would be an example of a constraint in Step 1 of the price-setting process?

Correct AnswerverifiedShow Answer

Figure 13-3 -In Figure 13-3 above,column D represents which type of competitive market?

Correct AnswerverifiedShow Answer

Rent,executive salaries,and insurance are typical examples of

Correct AnswerverifiedShow Answer

A movement along a demand curve (up or down) for a product occurs ________,assuming that other factors such as consumer tastes,price and availability of substitutes,and consumer incomes remain unchanged.

Correct AnswerverifiedShow Answer

All of the following are examples of pricing constraints except which?

Correct AnswerverifiedShow Answer

The break-even point (BEP) = [Fixed cost ÷ (Unit price − ________) ].

Correct AnswerverifiedShow Answer

Which of the following statements regarding price changes is most accurate?

Correct AnswerverifiedShow Answer

If you know the contents and price of a McDonald's Extra Value Meal,it may serve as ________ to you when you visit other fast-food restaurants and consider the purchase of a meal option there.

Correct AnswerverifiedShow Answer

The ratio of perceived benefits to ________ is referred to as value.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Pricing objectives involve specifying th...
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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A movement along a demand curve assumes ...
View Answer

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