Question 1

A flexible-price policy allows marketers to respond to

Accepted Answer

A)  requests for allowances.
B)  threats of discrimination.
C)  success measures for the firm's previous promotions.
D)  changes in demand,cost,and competitive factors.
E)  inquiries by government agencies.F) None of the above
G) D) and E)

Question 2

To reward wholesalers and retailers for marketing functions they will perform in the future,a manufacturer often gives __________ discounts.

Accepted Answer

A)  seasonal
B)  cash
C)  trade
D)  quantity
E)  cumulativeF) B) and E)
G) C) and D)

Question 3

At a price of $3.00 each,SHAPE magazine sells 1.25 million copies of its magazine targeted to young women seeking a healthier lifestyle.If the price per issue is increased to $3.25,only 1 million copies would be sold.Fixed costs are $1 million and unit variable costs are $0.50 per magazine.From the information provided here,what is SHAPE magazine's total revenue obtained at the lower price?

Accepted Answer

A)  $3,750,000
B)  $3,250,000
C)  $3,000,000
D)  $2,125,000
E)  $1,750,000F) A) and B)
G) All of the above

Question 4

Several companies produce latex gloves that are used in a variety of different industries.If one of the glove manufacturers decreases its price by just a few percentage points,it will result in a significant increase in quantity demanded.The demand for latex gloves is

Accepted Answer

A)  synergistic.
B)  inelastic.
C)  unitary.
D)  elastic.
E)  entropic.F) A) and C)
G) B) and E)

Question 5

The use of "special fees" and "surcharges" is driven by consumers' zeal for __________ and the ease of making price comparisons on the Internet.

Accepted Answer

A)  high prices
B)  low prices
C)  quality
D)  value
E)  warrantiesF) A) and B)
G) All of the above

Question 6

Figure 11-A
-Frito-Lay is considering whether to buy the Cracker Jack brand of caramel popcorn from Borden,Inc.Frito-Lay research shows that Cracker Jack has a strong brand equity.But,Cracker Jack's dollar sales market share and pound (a surrogate for unit) volume market share have declined recently and trailed the Crunch 'n Munch brand as shown in the Figure 11-A marketing dashboard above.Borden's management used an above-market,premium pricing strategy for Cracker Jack.As a Frito-Lay marketer studying Cracker Jack,calculate Cracker Jack's price premium.What position in Figure 11-A above represents the price premium of Cracker Jack?

Accepted Answer

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

Question 7

To reduce the price sensitivity for some of its products,Washburn

Accepted Answer

A)  uses multiple suppliers for its raw materials.
B)  offers three months of free music lessons with the purchase of each guitar.
C)  uses endorsements by internationally known musicians who play Washburn signature guitars.
D)  offers a lifetime,unconditional warranty on all its instruments regardless of the price of its guitars.
E)  sponsors free music programs and special Washburn guitar camps for children.F) None of the above
G) A) and B)

Question 8

Which of the following statements is most accurate?

Accepted Answer

A)  Nonprofit organizations are exempt from having to cover the costs of producing and/or marketing their products.
B)  Socially responsible corporations should have the pricing constraint of covering all costs of producing and marketing their products,but they should not price their products to earn a profit.
C)  Regardless of a company's objectives,a firm must cover all the costs of producing and marketing a product or the firm will fail.
D)  Price elasticity of demand makes it virtually impossible for companies to cover all their marketing and production costs at all times.
E)  Marketing and production costs are the most difficult and expensive aspect of pricing because they draw so much capital away from other departments in the organization.F) A) and E)
G) A) and C)

Question 9

Prestige pricing refers to

Accepted Answer

A)  charging different prices to different buyers for goods of like grade and quality.
B)  setting a low initial price on a new product to appeal immediately to the mass market odd-even pricing.
C)  setting a market price for a product or product class based on a subjective feel for the competitors' price or market price.
D)  setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.
E)  setting a price that is dictated by tradition,a standardized channel of distribution,or other competitive factors.F) C) and D)
G) B) and E)

Question 10

Yield management pricing refers to

Accepted Answer

A)  controlling the production of products based upon seasonal demand.
B)  deliberately selling a product below its customary price,not to increase sales,but to attract customers' attention in hopes that they will buy other products as well.
C)  charging different prices during different times of the day or days of the week to reflect variations in demand for the service.
D)  offering significant price discounts to wholesalers who agree to purchase products in advance for a period of a year or more at a time.
E)  charging different prices to maximize revenue for a set amount of capacity at any given time.F) A) and E)
G) B) and D)

Question 11

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 dividendsF) A) and B)
G) A) and C)

Question 12

To 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) None of the above
G) A) and B)

Question 13

Which term describes factors that limit the range of prices a firm may set?

Accepted Answer

A)  price fixtures
B)  pricing constraints
C)  price elasticities
D)  pricing demands
E)  pricing marginsF) B) and D)
G) None of the above

Question 14

Which of the following pricing techniques is most sensitive to customers' responses to price?

Accepted Answer

A)  cost-plus percentage-of-cost pricing
B)  target pricing
C)  experience curve pricing
D)  cost-plus fixed-fee pricing
E)  standard markup pricingF) B) and D)
G) B) and E)

Question 15

-Consider the Toro ad above.What type of discount does Toro offer its channel members to carry and sell its riding lawn mowers during the winter months?

Accepted Answer

A)  noncumulative discounts
B)  cumulative discounts
C)  functional discounts
D)  seasonal discounts
E)  trade discountsF) A) and D)
G) C) and E)

Question 16

Elastic demand exists when

Accepted Answer

A)  a small percentage decrease in price produces a smaller percentage increase in quantity demanded.
B)  a small percentage decrease in price produces a larger percentage increase in quantity demanded.
C)  an increase in price causes a larger increase in quantity demanded.
D)  the quantity demanded remains the same regardless of level of price.
E)  no change in in price produces a small percentage change in quantity demanded.F) C) and D)
G) B) and E)

Question 17

The maximum quantity of products consumers will buy at given price is shown by

Accepted Answer

A)  a demand curve.
B)  a price constraint.
C)  a break-even point.
D)  a supply curve.
E)  a marginal revenue curve.F) A) and E)
G) C) and D)

Question 18

Allowances,like discounts,refer to

Accepted Answer

A)  rewards given to retailers to encourage early payment.
B)  payment extensions given to cash-strapped consumers during the current recession.
C)  list price deductions based on surges in consumer demand.
D)  list price deductions based on sudden drops in consumer demand.
E)  reductions from list or quoted prices to buyers for performing some activity.F) D) and E)
G) None of the above

Question 19

Vertical price fixing refers to

Accepted Answer

A)  two or more competitors explicitly or implicitly setting prices.
B)  the practice of charging different prices to different buyers for goods of like grade and quality.
C)  controlling agreements between independent buyers and sellers whereby sellers are required not to sell products below a minimum retail price.
D)  a conspiracy among firms to set prices for a product or service.
E)  a seller's requirement that the purchaser of one product also buy another product in the line.F) B) and E)
G) A) and B)

Question 20

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

Accepted Answer

A)  For marketing managers,sales revenue or unit sales are more easily translated into meaningful targets than profit goals.
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 as well.
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 as few competitors as possible.
E)  An advantage of increasing unit volume sales is that it always results in an increase in profits.F) A) and E)
G) B) and E)

Exam 11: Pricing Products and Services

Yield management pricing refers to

Correct Answer
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Correct Answer
verified

To reward wholesalers and retailers for marketing functions they will perform in the future,a manufacturer often gives __________ discounts.

Correct Answer
verified

Companies often pursue a market share objective when __________.

Correct Answer
verified

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

Correct Answer
verified

-Consider the Toro ad above.What type of discount does Toro offer its channel members to carry and sell its riding lawn mowers during the winter months?

Correct Answer
verified

Elastic demand exists when

Correct Answer
verified

Prestige pricing refers to

Correct Answer
verified

The use of "special fees" and "surcharges" is driven by consumers' zeal for __________ and the ease of making price comparisons on the Internet.

Correct Answer
verified

Which of the following pricing techniques is most sensitive to customers' responses to price?

Correct Answer
verified

Allowances,like discounts,refer to

Correct Answer
verified

A flexible-price policy allows marketers to respond to

Correct Answer
verified

To reduce the price sensitivity for some of its products,Washburn

Correct Answer
verified

Several companies produce latex gloves that are used in a variety of different industries.If one of the glove manufacturers decreases its price by just a few percentage points,it will result in a significant increase in quantity demanded.The demand for latex gloves is

Correct Answer
verified

Which term describes factors that limit the range of prices a firm may set?

Correct Answer
verified

Which of the following statements is most accurate?

Correct Answer
verified

The maximum quantity of products consumers will buy at given price is shown by

Correct Answer
verified

Vertical price fixing refers to

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Exam 11: Pricing Products and Services

Yield management pricing refers to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

To reward wholesalers and retailers for marketing functions they will perform in the future,a manufacturer often gives __________ discounts.

Correct AnswerverifiedShow Answer

Companies often pursue a market share objective when __________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

-Consider the Toro ad above.What type of discount does Toro offer its channel members to carry and sell its riding lawn mowers during the winter months?

Correct AnswerverifiedShow Answer

Elastic demand exists when

Correct AnswerverifiedShow Answer

Prestige pricing refers to

Correct AnswerverifiedShow Answer

The use of "special fees" and "surcharges" is driven by consumers' zeal for __________ and the ease of making price comparisons on the Internet.

Correct AnswerverifiedShow Answer

Which of the following pricing techniques is most sensitive to customers' responses to price?

Correct AnswerverifiedShow Answer

Allowances,like discounts,refer to

Correct AnswerverifiedShow Answer

A flexible-price policy allows marketers to respond to

Correct AnswerverifiedShow Answer

To reduce the price sensitivity for some of its products,Washburn

Correct AnswerverifiedShow Answer

Several companies produce latex gloves that are used in a variety of different industries.If one of the glove manufacturers decreases its price by just a few percentage points,it will result in a significant increase in quantity demanded.The demand for latex gloves is

Correct AnswerverifiedShow Answer

Which term describes factors that limit the range of prices a firm may set?

Correct AnswerverifiedShow Answer

Which of the following statements is most accurate?

Correct AnswerverifiedShow Answer

The maximum quantity of products consumers will buy at given price is shown by

Correct AnswerverifiedShow Answer

Vertical price fixing refers to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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