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Explain the price equation in the context of a new car purchase.

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The price equation is: Final price = Lis...

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There are a lot of skateboards on the market,but the BMW Streetcarver is the only one with stabilizers and wheel design based on BMW's automobiles.This technology gives the BMW Streetcarver better control at high speeds and around sharp turns than any other brand.The skateboard is priced at $495,which leaves many consumers (especially young males) who might want to buy the Streetcarver unable to afford it.This inability to pay for the high-priced BMW-made skateboard shows the affect of __________ on sales.


A) demand factors
B) macroeconomic environmental factors
C) barter factors
D) supply factors
E) exchange parameters

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

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Describe the pricing constraints a firm is likely to face.

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Pricing constraints are factors that lim...

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


A) Pricing objectives should never change.
B) Pricing objectives may change depending on the financial position of the company.
C) Pricing objectives may change depending upon the relative market share of competitors.
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 E)
G) B) and E)

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Manufacturers of generic brands use which method of competition-oriented pricing?


A) penetration pricing
B) below-market pricing
C) loss-leader pricing
D) prestige pricing
E) skimming pricing

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

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


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) A) and B)
G) B) and D)

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A hardware store advertises a ⅜" Black and Decker Power Drill for $29.95.You enter the store intending to purchase the drill.The salesperson informs you that they are all sold out.She tells you that the "sale" drills were factory seconds and that if you are going to be doing any kind of serious woodworking,you should buy the Model 3309,which sells for $49.99.This scenario has elements of which type of illegal pricing practice?


A) predatory pricing
B) price discrimination
C) price fixing
D) bait and switch
E) conditional bargains

F) A) and E)
G) A) and C)

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Given that a firm's profit is high enough for it to remain in business,an objective may be to __________,which will in turn lead to increases in market share and profit.


A) increase the commitment to social responsibility
B) increase dollar sales revenue
C) decrease unit volume while maintaining price
D) increase research and development funding for new product line extensions
E) continue with previous policies that seem to be working

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

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A penetration pricing policy is MOST LIKELY to be effective when


A) unit production and marketing costs fall dramatically as production volumes increase.
B) customers are willing to buy immediately at the high initial price.
C) lowering the price has only a minor effect on increasing sales volume and reducing unit costs.
D) the high initial prices do not attract competitors.
E) customers interpret high price as signifying high quality.

F) A) and D)
G) A) and B)

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Each month,the owner of a carwash pays $2,500 in rent,$500 in utilities,$750 interest on the business loan,an insurance premium of $200,and $250 on advertising on local bus routes.A full-service carwash is priced at $10.50.Unit variable costs for the carwash are $7.50.At what level of revenue will the carwash break even?


A) $4,200
B) $10,500
C) $14,700
D) $30,000
E) $39,900

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

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Summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price is referred to as __________.


A) standard markup pricing
B) experience curve pricing
C) cost-plus pricing
D) product-line pricing
E) target return-on-investment pricing

F) B) and C)
G) B) and D)

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Which of the following statements about the price-setting process is most accurate?


A) When selecting a strategy for setting an initial price,it doesn't matter which one you use as long as you stick with it.
B) Sometimes pricing strategies overlap,and a seasoned marketer will consider several strategies when choosing an approximate price level.
C) Demand-oriented pricing approaches rely heavily on competitors' prices.
D) Skimming pricing is a competition-oriented pricing strategy.
E) Penetration pricing is the best pricing strategy for companies trying to meet the goals of a profit-oriented pricing approach.

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

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Deceptive pricing practices are outlawed by legislation and enforced by which federal agency?


A) Consumer Protection Agency
B) U.S.Department of Justice
C) Federal Communications Commission
D) U.S.Department of Commerce
E) Federal Trade Commission

F) A) and B)
G) B) and E)

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Unit volume as a pricing objective refers to


A) the quantity of products to be produced or sold.
B) the ratio of price per unit to unit variable cost.
C) the ratio of production costs to the minimum sales price that would still generate profit.
D) the total quantity of product sold by a firm relative to the total quantity of product sold by all firms in the industry.
E) the number of units that need to be sold in order to avoid inventory carrying costs.

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

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Another name for a one-price policy is


A) customary pricing.
B) fixed pricing.
C) flexible pricing.
D) standard markup pricing.
E) uniform pricing.

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

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Which of the following statements regarding a trade-in allowance is most accurate?


A) A trade-in allowance is a noncash exchange of one product for another of equal or lesser value.
B) A trade-in allowance is an effective way to lower the price a buyer has to pay without formally reducing the list price.
C) A trade-in allowance is a cash-back payment when a more expensive item is replaced with a less expensive one.
D) A trade-in allowance is the return of money based on proof of purchase.
E) A trade-in allowance is a cash payment to a retailer for extra in-store support or special featuring of the brand.

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

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According to Vizio,"The whole goal is to ensure that we have the right product,at the right time and the right price and __________."


A) forever rid the world of plugs and wires
B) create customer value that is unmatched in the industry
C) deliver it to the right people
D) at the right place
E) drive a seamless end-to-end value chain

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

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Total cost refers to


A) the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold.
B) the change in expenses that results from producing and marketing one additional unit of a product.
C) the average amount of money received for selling one unit of a product or simply the price of that unit.
D) the sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold.
E) the total expense incurred by a firm in producing and marketing a product,which equals the sum of fixed cost and variable cost.

F) C) and D)
G) None of the above

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General Motors and Chrysler recently experienced financial distress resulting in near bankruptcies fundamentally because


A) the Asian markets such as China,India,and Japan entered the North American market and captured an even larger share.
B) the value pricing strategy used by the "big three" was flawed and North Americans' perceptions of value had changed.
C) they were continually using deceptive pricing when establishing the manufacturer's suggested retail price on their vehicles.
D) their costs got out of control,causing their total costs to exceed their total revenues.
E) their product line was not changing with the times in order to meet changing environmental standards regarding emissions.

F) A) and E)
G) A) and D)

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Predatory pricing is


A) an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor.
B) the practice of charging different prices to different buyers for goods of like grade and quality.
C) the practice of charging a very low price for a product with the intent of driving competitors out of business.
D) a conspiracy among firms to set prices for a product or service.
E) a seller's requirement that the purchaser of one product must also buy another product in the line.

F) None of the above
G) All of the above

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Showing 101 - 120 of 381

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