Question 1

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) B) and E)
G) D) and E)

Question 2

The practice of exchanging products and services for other products and services rather than for money is referred to as

Accepted Answer

A)  barter.
B)  reciprocal pricing.
C)  virtual pricing.
D)  balance of payments.
E)  value-pricing.F) A) and B)
G) A) and C)

Question 3

North America's No. 1 smart TV company is

Accepted Answer

A)  Samsung.
B)  Panasonic.
C)  LG.
D)  Sony.
E)  Vizio.F) A) and D)
G) A) and E)

Question 4

Forever Quilting is a small company that makes quilting kits priced at $120. The costs of the materials that go into each kit total $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising, and $4,500 for the monthly salary of its owner. Forever Quilting's unit variable cost for its kits is

Accepted Answer

A)  $5.
B)  $45.
C)  $50.
D)  $120.
E)  $170.F) A) and B)
G) A) and E)

Question 5

If competitive market circumstances are such that there is almost no price competition, no product differentiation, and the only advertising informs prospects that the product is available, then the competitive market in this industry must be

Accepted Answer

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

Question 6

Which of the following would be an example of a fixed cost for a company that makes carbon monoxide monitoring systems for workers to wear in hazardous areas?

Accepted Answer

A)  the lithium batteries that are used in each monitor
B)  the chest harness used to wear the monitor
C)  the insurance for the company's factory
D)  the free training videos that are sent to each new customer
E)  the stainless-steel, water-resistant cases in which the monitors are containedF) A) and B)
G) B) and E)

Question 7

How do consumers use price in their assessments of value?

Accepted Answer

From a consumer's standpoint, price is o...

Question 8

The __________ equation = (Unit price × Quantity sold)  - Total cost.

Accepted Answer

A)  total revenue
B)  variable cost
C)  net present value
D)  profit
E)  break-even pointF) None of the above
G) B) and E)

Question 9

Occasionally, prices may rise later in the product's life cycle. This is often due to

Accepted Answer

A)  new competitors entering the market.
B)  production economies of scale.
C)  a decrease in the price of raw materials.
D)  nostalgia and fad factors.
E)  the type of competitive market shifts from pure monopoly to pure competition.F) A) and B)
G) A) and C)

Question 10

While pricing objectives frequently reflect corporate goals, pricing constraints often relate to

Accepted Answer

A)  stockholder demands.
B)  political ideology.
C)  conditions existing in the marketplace.
D)  an organization's code of ethics.
E)  the financial realities within the organization itself.F) A) and B)
G) A) and C)

Question 11

All of the following are demand factors except

Accepted Answer

A)  the price of similar products.
B)  consumer tastes.
C)  consumer income.
D)  the availability of similar products.
E)  the number of distribution outlets carrying the product.F) A) and D)
G) All of the above

Question 12

Which of the following statements about consumer demand as a pricing constraint is most accurate?

Accepted Answer

A)  The number of potential buyers for the product class has little effect on the price a seller can charge.
B)  The number of potential buyers for the product affects the price a seller can charge, but only if the product is a luxury item.
C)  The number of potential buyers for the product affects the price a seller can charge, but only if the product is a necessity item.
D)  The number of potential buyers for the brand affects the price a seller can charge in the growth stage of a product life cycle, but not in the introductory stage.
E)  Whether the item is a luxury or a necessity affects the price a seller can charge.F) B) and D)
G) A) and B)

Question 13

While consumer tastes and price and availability of similar products determine what consumers want to buy, consumer income determines

Accepted Answer

A)  where they buy.
B)  the degree of brand loyalty.
C)  the degree of repeat buys.
D)  what they can buy.
E)  their desire to buy.F) B) and C)
G) B) and E)

Question 14

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

Accepted Answer

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

Question 15

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 16

Which of the following statements regarding sales goals is most accurate?

Accepted Answer

A)  For marketing managers, sales revenue or unit sales can be easily translated into meaningful targets for a product line or brand.
B)  Cutting prices for a single product in a product line to raise unit sales often results in an increase in sales for related products in the line.
C)  Very often, cutting prices results in a decrease in market share.
D)  Setting unit volume sales as a pricing objective results in price wars with competitors, so the practice is limited to industries with few competitors.
E)  An advantage of increasing unit volume sales is that it always results in an increase in profits.F) B) and D)
G) A) and C)

Question 17

Dozens of regional, private brands of peanut butter compete with national brands like Skippy and Jif. In this type of market,

Accepted Answer

A)  both price competition and nonprice competition exist.
B)  these firms must maintain local customer loyalty.
C)  these private brands must go head-to-head or steal market share from nationally recognized brands.
D)  these private brands must keep other regional businesses from entering the market.
E)  these private brands could avoid cannibalization if they sell their product both in stores and online.F) D) and E)
G) A) and B)

Question 18

Three different objectives relate to a firm's profit, which is often measured in terms of return on investment. One objective, known as _________, occurs when a firm sets a profit goal, usually determined by its board of directors.

Accepted Answer

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

Question 19

What are the six major steps involved in setting prices?

Accepted Answer

Step 1: Identify pricing objectives and ...

Question 20

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

Accepted Answer

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

Exam 13: Building the Price Foundation

The __________ equation = (Unit price × Quantity sold) - Total cost.

Correct Answer
verified

North America's No. 1 smart TV company is

Correct Answer
verified

While consumer tastes and price and availability of similar products determine what consumers want to buy, consumer income determines

Correct Answer
verified

How do consumers use price in their assessments of value?

Correct Answer
verified
From a consumer's standpoint, price is o...
View Answer

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

Correct Answer
verified

What are the six major steps involved in setting prices?

Correct Answer
verified
Step 1: Identify pricing objectives and ...
View Answer

Dozens of regional, private brands of peanut butter compete with national brands like Skippy and Jif. In this type of market,

Correct Answer
verified

Which of the following statements regarding sales goals is most accurate?

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

While pricing objectives frequently reflect corporate goals, pricing constraints often relate to

Correct Answer
verified

Which of the following statements about consumer demand as a pricing constraint is most accurate?

Correct Answer
verified

Which of the following would be an example of a fixed cost for a company that makes carbon monoxide monitoring systems for workers to wear in hazardous areas?

Correct Answer
verified

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

Correct Answer
verified

All of the following are demand factors except

Correct Answer
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Price refers to

Correct Answer
verified

Occasionally, prices may rise later in the product's life cycle. This is often due to

Correct Answer
verified

Three different objectives relate to a firm's profit, which is often measured in terms of return on investment. One objective, known as _________, occurs when a firm sets a profit goal, usually determined by its board of directors.

Correct Answer
verified

If competitive market circumstances are such that there is almost no price competition, no product differentiation, and the only advertising informs prospects that the product is available, then the competitive market in this industry must be

Correct Answer
verified

The practice of exchanging products and services for other products and services rather than for money is referred to as

Correct Answer
verified

Correct Answer
verified

Exam 13: Building the Price Foundation

The __________ equation = (Unit price × Quantity sold) - Total cost.

Correct AnswerverifiedShow Answer

North America's No. 1 smart TV company is

Correct AnswerverifiedShow Answer

While consumer tastes and price and availability of similar products determine what consumers want to buy, consumer income determines

Correct AnswerverifiedShow Answer

How do consumers use price in their assessments of value?

Correct AnswerverifiedFrom a consumer's standpoint, price is o...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

What are the six major steps involved in setting prices?

Correct AnswerverifiedStep 1: Identify pricing objectives and ...View AnswerShow Answer

Dozens of regional, private brands of peanut butter compete with national brands like Skippy and Jif. In this type of market,

Correct AnswerverifiedShow Answer

Which of the following statements regarding sales goals is most accurate?

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

While pricing objectives frequently reflect corporate goals, pricing constraints often relate to

Correct AnswerverifiedShow Answer

Which of the following statements about consumer demand as a pricing constraint is most accurate?

Correct AnswerverifiedShow Answer

Which of the following would be an example of a fixed cost for a company that makes carbon monoxide monitoring systems for workers to wear in hazardous areas?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

All of the following are demand factors except

Correct AnswerverifiedShow Answer

Price refers to

Correct AnswerverifiedShow Answer

Occasionally, prices may rise later in the product's life cycle. This is often due to

Correct AnswerverifiedShow Answer

Three different objectives relate to a firm's profit, which is often measured in terms of return on investment. One objective, known as _________, occurs when a firm sets a profit goal, usually determined by its board of directors.

Correct AnswerverifiedShow Answer

If competitive market circumstances are such that there is almost no price competition, no product differentiation, and the only advertising informs prospects that the product is available, then the competitive market in this industry must be

Correct AnswerverifiedShow Answer

The practice of exchanging products and services for other products and services rather than for money is referred to as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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From a consumer's standpoint, price is o...
View Answer

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Correct Answer
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Step 1: Identify pricing objectives and ...
View Answer

Correct Answer
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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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