Question 1

Price discrimination is illegal under the

Accepted Answer

A)   Sherman Act.
B)   Consumer Goods Pricing Act.
C)   Robinson-Patman Act.
D)   Federal Trade Commission Act.
E)   Anti-Competitive Act.

Question 2

Target return-on-sales pricing refers to

Accepted Answer

A)   adjusting the price of a product so it is "in line" with that of its largest competitor.
B)   setting the price of a line of products at a number of different price points.
C)   adding a fixed percentage to the cost of all items in a specific product class.
D)   setting prices to achieve a profit that is a specified percentage of the sales volume.
E)   setting a price based on a specific annual dollar target profit volume.

Question 3

Demand factors refer to

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)   consumers' willingness and ability to pay for products and services.
D)   the number of consumers who want to purchase a product.
E)   the number of consumers who can purchase a product.

Question 4

Specifying the role of price in an organization's marketing and strategic plans is referred to as

Accepted Answer

A)   choosing a pricing plan.
B)   defining a profit mission.
C)   developing pricing constraints.
D)   setting pricing objectives.
E)   determining the list or quoted price.

Question 5

Ampro-Mag makes materials for safely controlling hazardous spills of all kinds. It sells these items as a neutralizing kit priced at $100. The costs of the materials that go into each kit are $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 in trade journals, and $3,500 for the monthly salary of its owner. What is Ampro-Mag's monthly break-even point in terms of number of neutralizing kits sold?

Accepted Answer

A)   40 kits
B)   52 kits
C)   104 kits
D)   116 kits
E)   520 kits

Question 6

A Patek Philippe Sky Moon Tourbillion men's wristwatch is among the most expensive in the world, costing more than $1.5 million. This is an example of a ________ strategy.

Accepted Answer

A)   penetration pricing
B)   target pricing
C)   bundle pricing
D)   loss-leader pricing
E)   prestige pricing

Question 7

Trade discounts are offered to resellers in the marketing channel on the basis of where they are in the channel and

Accepted Answer

A)   the marketing activities they are expected to perform in the future.
B)   the frequency of the order.
C)   when orders are placed during the year.
D)   the length of the relationship with the manufacturer.
E)   the size of the order.

Question 8

All of the following are demand-oriented approaches to selecting an approximate price level except which?

Accepted Answer

A)   odd-even
B)   yield management
C)   bundle
D)   customary
E)   prestige

Question 9

A common pricing tactic today is the use of special fees and surcharges that add to a list price, a response to consumers' zeal for ________ combined with the ease of making price comparisons on the Internet.

Accepted Answer

A)   readily accessible information
B)   low prices
C)   quality
D)   value
E)   warranties

Question 10

Which of the four approaches does Carmex use to set prices for its products?

Accepted Answer

Carmex uses each of the four perspective...

Question 11

Odd-even pricing refers to

Accepted Answer

A)   setting prices one way for product lines and another way for individual brands.
B)   setting prices of luxury items at even price points and setting the price of necessities at odd price points.
C)   setting prices a few dollars or cents under an odd number.
D)   adding a fixed percentage to the cost of all items in a specific product class.
E)   setting prices a few dollars or cents under an even number.

Question 12

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.

Question 13

Marketers using a dynamic price policy should take care to avoid

Accepted Answer

A)   requests for allowances.
B)   price discrimination.
C)   contradictory promotions.
D)   changes in market segmentation.
E)   challenges from government agencies.

Question 14

Which of the following type of business is most likely to use cost-plus-percentage-of-cost pricing?

Accepted Answer

A)   real estate agency
B)   insurance company
C)   power company
D)   grocery store
E)   architect

Question 15

All of the following are legal or ethical considerations when setting a final price except which?

Accepted Answer

A)   price discrimination
B)   predatory pricing
C)   price matching
D)   price fixing
E)   deceptive pricing

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.

Question 17

You are selling a new line of t-shirts on the boardwalk. The selling price will be $25 per shirt. The labor cost is $5 per shirt. The administrative costs of operating the company are estimated to be $60,000 annually and the sales and marketing expenses are $20,000 a year. Additionally, the cost of materials will be $10 per shirt. What is the break-even quantity?

Accepted Answer

A)   2,000 shirts
B)   3,200 shirts
C)   5,334 shirts
D)   8,000 shirts
E)   16,000 shirts

Question 18

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 19

Figure 11-6a
-In Figure 11-7a above, which is a break-even chart that depicts a graphic presentation of a break-even analysis for a picture frame store, the area CGD represents the firm's

Accepted Answer

A)   fixed costs.
B)   break-even point.
C)   variable costs.
D)   profit.
E)   total revenue.

Question 20

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)   break even point
E)   demand for the product class, product, or brand

Exam 11: Pricing Products and Services

All of the following are demand-oriented approaches to selecting an approximate price level except which?

Correct Answer
verified

Which of the following type of business is most likely to use cost-plus-percentage-of-cost pricing?

Correct Answer
verified

A common pricing tactic today is the use of special fees and surcharges that add to a list price, a response to consumers' zeal for ________ combined with the ease of making price comparisons on the Internet.

Correct Answer
verified

All of the following are legal or ethical considerations when setting a final price except which?

Correct Answer
verified

Figure 11-6a -In Figure 11-7a above, which is a break-even chart that depicts a graphic presentation of a break-even analysis for a picture frame store, the area CGD represents the firm's

Correct Answer
verified

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

Correct Answer
verified

Specifying the role of price in an organization's marketing and strategic plans is referred to as

Correct Answer
verified

Marketers using a dynamic price policy should take care to avoid

Correct Answer
verified

A Patek Philippe Sky Moon Tourbillion men's wristwatch is among the most expensive in the world, costing more than $1.5 million. This is an example of a ________ strategy.

Correct Answer
verified

Odd-even pricing refers to

Correct Answer
verified

Trade discounts are offered to resellers in the marketing channel on the basis of where they are in the channel and

Correct Answer
verified

Correct Answer
verified

Target return-on-sales pricing refers to

Correct Answer
verified

Demand factors refer to

Correct Answer
verified

Which of the four approaches does Carmex use to set prices for its products?

Correct Answer
verified
Carmex uses each of the four perspective...
View Answer

Price discrimination is illegal under the

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Vertical price fixing refers to

Correct Answer
verified

Exam 11: Pricing Products and Services

All of the following are demand-oriented approaches to selecting an approximate price level except which?

Correct AnswerverifiedShow Answer

Which of the following type of business is most likely to use cost-plus-percentage-of-cost pricing?

Correct AnswerverifiedShow Answer

A common pricing tactic today is the use of special fees and surcharges that add to a list price, a response to consumers' zeal for ________ combined with the ease of making price comparisons on the Internet.

Correct AnswerverifiedShow Answer

All of the following are legal or ethical considerations when setting a final price except which?

Correct AnswerverifiedShow Answer

Figure 11-6a -In Figure 11-7a above, which is a break-even chart that depicts a graphic presentation of a break-even analysis for a picture frame store, the area CGD represents the firm's

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Specifying the role of price in an organization's marketing and strategic plans is referred to as

Correct AnswerverifiedShow Answer

Marketers using a dynamic price policy should take care to avoid

Correct AnswerverifiedShow Answer

A Patek Philippe Sky Moon Tourbillion men's wristwatch is among the most expensive in the world, costing more than $1.5 million. This is an example of a ________ strategy.

Correct AnswerverifiedShow Answer

Odd-even pricing refers to

Correct AnswerverifiedShow Answer

Trade discounts are offered to resellers in the marketing channel on the basis of where they are in the channel and

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Target return-on-sales pricing refers to

Correct AnswerverifiedShow Answer

Demand factors refer to

Correct AnswerverifiedShow Answer

Which of the four approaches does Carmex use to set prices for its products?

Correct AnswerverifiedCarmex uses each of the four perspective...View AnswerShow Answer

Price discrimination is illegal under the

Correct AnswerverifiedShow Answer

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

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

Correct AnswerverifiedShow Answer

Vertical price fixing refers to

Correct AnswerverifiedShow Answer

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Carmex uses each of the four perspective...
View Answer

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

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