Question 1

Often,the earlier a product is in its life cycle:

Accepted Answer

A)  the lower the price the firm must charge.
B)  the more competition it has.
C)  the greater the flexibility to charge a higher price.
D)  the lower the production costs.E) C) and D)
F) A) and D)

Question 2

If you computed: (unit price x quantity sold) - total cost.What would you be calculating?

Accepted Answer

A)  total revenue
B)  profit
C)  marginal revenue
D)  average revenueE) A) and C)
F) A) and D)

Question 3

'No-name' products likely use:

Accepted Answer

A)  demand backward pricing
B)  below-market pricing
C)  loss-leader pricing
D)  prestige pricingE) C) and D)
F) B) and C)

Question 4

FOB origin pricing is a method of pricing where:

Accepted Answer

A)  title of goods remains with the manufacturer until sold to the ultimate consumer.
B)  title of goods passes to the buyer upon arrival at the final destination.
C)  title of goods passes to the buyer at the point of loading.
D)  price the seller sets includes all transportation costs.E) C) and D)
F) All of the above

Question 5

Which of the following statements about geographical adjustments to price is correct?

Accepted Answer

A)  In FOB origin pricing, the seller selects the mode of transportation.
B)  In FOB with freight allowed pricing, the seller adds the transportation costs to the list price.
C)  Multiple-zone pricing is sometimes referred to as "postage-stamp" pricing.
D)  Basing point pricing seems to have been used in industries where freight expenses are a significant part of the total cost to the buyer.E) A) and B)
F) All of the above

Question 6

Consumers buy candy bars,snacks,and soda pop from vending machines.Traditionally,the price of each of these products is about 60 cents.If a marketer charges a significantly higher price for such products dispensed by vending machines,sales are likely to decline.In order to avoid such declines in sales,marketers tend to be very consistent in the price charged for vending machine products.This is an example of marketers employing a _____ strategy.

Accepted Answer

A)  below-market pricing
B)  skimming pricing
C)  penetration pricing
D)  customary pricingE) A) and D)
F) B) and C)

Question 7

Pricing constraints are:

Accepted Answer

A)  barriers that must be overcome in order to set pricing objectives.
B)  competitive pricing advantages one firm has over another.
C)  different pricing strategies for each of the firm's products.
D)  factors that limit the latitude of prices a firm may set.E) A) and C)
F) A) and B)

Question 8

TB Figure: 1 
-TB Figure 1 shows there are six distinct steps in the pricing process.Considering the following list of steps in setting price: estimate demand and revenue; estimate cost,volume,and profit relationships; select an approximate price level; set list or quoted price; and make special adjustments to list or quoted price.Which of the following steps is missing from this list?

Accepted Answer

A)  raise initial capital
B)  identify pricing constraints and objectives
C)  scan competitors for price lines for similar products or services
D)  select the appropriate pricing formulaE) A) and B)
F) B) and C)

Question 9

All of the following statements about the Competition Act are true,except:

Accepted Answer

A)  The Competition Act deals with price discrimination.
B)  The Competition Act covers promotional allowances.
C)  The Competition Act allows price differentials to different customers under certain changing market conditions.
D)  It is easy to prove that price discrimination under the Competition Act has taken place.E) B) and C)
F) A) and B)

Question 10

Mark Johnson,the manager of a discount consumer electronics store,has been approached by the manufacturer of a popular and profitable line of compact disk storage racks regarding the retail price charged for the racks at Johnson's store.The manufacturer's representative has implied that if Johnson doesn't raise the retail prices for the storage racks to those charged by the manufacturer's non-discount customers,Johnson's supply of racks may be severely curtailed.The manufacturer is guilty of attempting:

Accepted Answer

A)  horizontal price fixing.
B)  resale price maintenance.
C)  price discrimination.
D)  predatory pricing.E) B) and C)
F) A) and D)

Question 11

TB Figure: 1 
-TB Figure 1 represents the six distinct steps in the pricing process.Cell "A" represents the step at which a firm would

Accepted Answer

A)  raise initial capital.
B)  identify pricing objectives and constraints.
C)  scan competitors for price lines for similar products or services.
D)  select the appropriate pricing formula.E) None of the above
F) All of the above

Question 12

The executive vice president of Washburn Guitars set a sales target of 2,000 units for a new line of guitars.This type of objective is most closely related to a(n) _____ pricing objective.

Accepted Answer

A)  profit
B)  target return
C)  unit volume
D)  market shareE) A) and C)
F) None of the above

Question 13

When Panera Bread opened Panera Cares Cafe,they implemented a pricing model that allowed consumers to pay what they wished for their items.This pricing model is referred to as:

Accepted Answer

A)  self-sustaining
B)  profit maximizing
C)  profit minimizing
D)  name your priceE) A) and C)
F) B) and D)

Question 14

When is skimming pricing an effective strategy?

Accepted Answer

The answer of When is skimming pricing an effective strategy?...

Question 15

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

Question 16

A firm's profit equation demonstrates that its profit equals:

Accepted Answer

A)  total cost + total revenue.
B)  total revenue - total cost.
C)  total cost - marginal cost.
D)  total cost - variable cost.E) A) and D)
F) B) and D)

Question 17

Gerber supplies a specially formulated product free of charge to children who cannot tolerate foods based on cow's milk.This is a _____ pricing objective.

Accepted Answer

A)  target return
B)  marginal profit
C)  unit volume
D)  social responsibilityE) A) and B)
F) C) and D)

Question 18

Many retailers deliberately sell products below their normal prices (and sometimes below cost) to attract attention and induce additional store traffic.This strategy is referred to as:

Accepted Answer

A)  customary pricing
B)  above-market pricing
C)  loss-leader pricing
D)  prestige pricingE) C) and D)
F) A) and B)

Question 19

Which company will likely benefit the greatest by offering social media discounts?

Accepted Answer

A)  A new startup that is using a penetration pricing strategy.
B)  Prada that is using a prestige pricing strategy.
C)  Apple, who just launched the new iPhone 7.
D)  A new startup that provides high-end electronic repair services.E) B) and C)
F) A) and D)

Question 20

When it comes to low prices in the eyes of consumers,which of the following statements is TRUE?

Accepted Answer

A)  Consumers will pay more for low quality products.
B)  Consumers may not always perceive lower prices as connoting poorer quality.
C)  Consumers perceive lower prices as poor quality.
D)  Costs will always dictate the price.E) All of the above
F) A) and B)

Exam 13: Pricing Products and Services

If you computed: (unit price x quantity sold) - total cost.What would you be calculating?

Correct Answer
verified

Which company will likely benefit the greatest by offering social media discounts?

Correct Answer
verified

A firm's profit equation demonstrates that its profit equals:

Correct Answer
verified

When it comes to low prices in the eyes of consumers,which of the following statements is TRUE?

Correct Answer
verified

Often,the earlier a product is in its life cycle:

Correct Answer
verified

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

Correct Answer
verified

TB Figure: 1 -TB Figure 1 represents the six distinct steps in the pricing process.Cell "A" represents the step at which a firm would

Correct Answer
verified

The executive vice president of Washburn Guitars set a sales target of 2,000 units for a new line of guitars.This type of objective is most closely related to a(n) _____ pricing objective.

Correct Answer
verified

All of the following statements about the Competition Act are true,except:

Correct Answer
verified

Correct Answer
verified

Gerber supplies a specially formulated product free of charge to children who cannot tolerate foods based on cow's milk.This is a _____ pricing objective.

Correct Answer
verified

When Panera Bread opened Panera Cares Cafe,they implemented a pricing model that allowed consumers to pay what they wished for their items.This pricing model is referred to as:

Correct Answer
verified

FOB origin pricing is a method of pricing where:

Correct Answer
verified

Correct Answer
verified

Pricing constraints are:

Correct Answer
verified

Many retailers deliberately sell products below their normal prices (and sometimes below cost) to attract attention and induce additional store traffic.This strategy is referred to as:

Correct Answer
verified

Correct Answer
verified

When is skimming pricing an effective strategy?

Correct Answer
verified

Which of the following statements about geographical adjustments to price is correct?

Correct Answer
verified

'No-name' products likely use:

Correct Answer
verified

Exam 13: Pricing Products and Services

If you computed: (unit price x quantity sold) - total cost.What would you be calculating?

Correct AnswerverifiedShow Answer

Which company will likely benefit the greatest by offering social media discounts?

Correct AnswerverifiedShow Answer

A firm's profit equation demonstrates that its profit equals:

Correct AnswerverifiedShow Answer

When it comes to low prices in the eyes of consumers,which of the following statements is TRUE?

Correct AnswerverifiedShow Answer

Often,the earlier a product is in its life cycle:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

TB Figure: 1 -TB Figure 1 represents the six distinct steps in the pricing process.Cell "A" represents the step at which a firm would

Correct AnswerverifiedShow Answer

The executive vice president of Washburn Guitars set a sales target of 2,000 units for a new line of guitars.This type of objective is most closely related to a(n) _____ pricing objective.

Correct AnswerverifiedShow Answer

All of the following statements about the Competition Act are true,except:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Gerber supplies a specially formulated product free of charge to children who cannot tolerate foods based on cow's milk.This is a _____ pricing objective.

Correct AnswerverifiedShow Answer

When Panera Bread opened Panera Cares Cafe,they implemented a pricing model that allowed consumers to pay what they wished for their items.This pricing model is referred to as:

Correct AnswerverifiedShow Answer

FOB origin pricing is a method of pricing where:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Pricing constraints are:

Correct AnswerverifiedShow Answer

Many retailers deliberately sell products below their normal prices (and sometimes below cost) to attract attention and induce additional store traffic.This strategy is referred to as:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When is skimming pricing an effective strategy?

Correct AnswerverifiedShow Answer

Which of the following statements about geographical adjustments to price is correct?

Correct AnswerverifiedShow Answer

'No-name' products likely use:

Correct AnswerverifiedShow Answer

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