Question 1

Dynamic price policy refers to

Accepted Answer

A)   setting the price of a line of products at a number of different specific pricing points.
B)   setting the prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item.
C)   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.
D)   setting different prices for products and services depending on individual buyers and purchase situations in light of demand, cost, and competitive factors.
E)   adding a fixed percentage to the cost of all items in a specific product class.F) B) and E)
G) A) and D)

Question 2

Creative Quilts Studio sells hundreds of colors and types of fabric and thread.To price its inventory,the owners add 50 percent to the cost of each bolt of fabric and every spool of thread.What is this pricing approach called?

Accepted Answer

A)   target return-on-sales pricing
B)   flexible pricing
C)   cost-plus pricing
D)   standard markup pricing
E)   customary pricingF) A) and D)
G) A) and C)

Question 3

A one-price policy refers to

Accepted Answer

A)   setting different prices for products and services in real time in response to supply and demand conditions.
B)   setting the price of an entire line of products at a single specific pricing point.
C)   simultaneously setting prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item.
D)   adding a fixed percentage to the cost of all items in a specific product class.
E)   setting one price for all buyers of a product or service.F) A) and C)
G) None of the above

Question 4

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 price produces a small percentage change in quantity demanded.F) B) and D)
G) A) and B)

Question 5

Which of the following is a cost-oriented approach to pricing?

Accepted Answer

A)   cost-plus pricing
B)   skimming pricing
C)   prestige pricing
D)   loss-leader pricing
E)   bundle pricingF) B) and D)
G) C) and D)

Question 6

Reductions in unit costs for a larger order are referred to as

Accepted Answer

A)   promotional allowances.
B)   economic order discounts.
C)   penetration pricing.
D)   quantity discounts.
E)   case allowances.F) A) and B)
G) A) and C)

Question 7

The unit variable cost (UVC) equals variable cost (VC) divided by

Accepted Answer

A)   quantity (Q) .
B)   fixed costs (F
C)  .
C)   total cost (T
C)  .
D)   total revenue (TR) .
E)   price per unit of the product (P) .F) A) and C)
G) C) and E)

Question 8

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

Accepted Answer

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

Question 9

Creative marketers engage in value-pricing,which is the practice of simultaneously increasing product and service benefits while

Accepted Answer

A)   increasing costs.
B)   increasing price.
C)   increasing advertising.
D)   decreasing costs.
E)   maintaining or decreasing price.F) B) and C)
G) B) and E)

Question 10

A construction company was offered a 3 percent reduction in price off all invoices from a lumberyard for paying within 10 days of issue.The lumberyard was offering a

Accepted Answer

A)   trade discount.
B)   cash discount.
C)   promotional allowance.
D)   rebate.
E)   flexible price.F) C) and D)
G) A) and D)

Question 11

A break-even chart is a graphic presentation

Accepted Answer

A)   that shows the maximum number of units that will be sold at a certain price.
B)   of a break-even analysis that shows where total revenue and total cost intersect to identify profit or loss for a given quantity sold.
C)   that relates variable costs in terms of product or service substitutes in order to determine which items or services would least affect total revenues.
D)   that relates profits and revenues versus total costs in order to determine the time frame in which a company could achieve profitability.
E)   is a form of scatter graph used to identify specific activities or items that are creating the greatest return on investment.F) B) and E)
G) All of the above

Question 12

Describe the pricing constraints a firm is likely to face.

Accepted Answer

Pricing constraints are factors that lim...

Question 13

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 E)
G) C) and D)

Question 14

If the CEO of the Clorox Co.were to say,"We want to control 60 percent of the bleach market within the next five years," he would have set a __________ pricing objective.

Accepted Answer

A)   profit
B)   sales
C)   unit volume
D)   market share
E)   social responsibilityF) A) and E)
G) All of the above

Question 15

Price deals that mislead consumers fall into the category of

Accepted Answer

A)   predatory pricing.
B)   deceptive pricing.
C)   price discrimination.
D)   caveat emptor.
E)   resale price maintenance.F) A) and B)
G) A) and C)

Question 16

A price reduction given when a used product is part of the payment on a new product is referred to as a

Accepted Answer

A)   cash discount.
B)   seasonal discount.
C)   trade-in allowance.
D)   promotional allowance.
E)   subsidy discount.F) None of the above
G) B) and E)

Question 17

According to the textbook,clothing manufacturer Christian Dior and retailer Neiman Marcus use __________ pricing.

Accepted Answer

A)   above-market
B)   at-market
C)   below-market
D)   prestige
E)   everyday lowF) A) and E)
G) A) and B)

Question 18

When Kroger,a national supermarket chain,uses a special promotion to price a six-pack of soda at .09 (which is below its customary price level of
) 29) ,it is attempting to

Accepted Answer

A)   drive its competition out of business.
B)   attract customers in hopes they will buy other products as well.
C)   fill its parking lot so its store will look successful.
D)   work with the local bottler to move products that are close to their expiration dates.
E)   help stimulate the local economy and generate good will with its customers.F) None of the above
G) A) and E)

Question 19

The __________ of a product is what customers are generally willing to pay.

Accepted Answer

A)   customary price
B)   asking price
C)   target price
D)   discount price
E)   market priceF) A) and B)
G) A) and C)

Question 20

Susan O'Rourke hired an attorney to represent her in a court case involving an auto accident.The attorney charged O'Rourke a $2,000 retainer fee for her services.Terry Thomas needed a haircut; the local stylist charged him $12 for his services.Aaron Mathison mowed his neighbor's lawn; in exchange,the neighbor repaired Mathison's gutters.The attorney fees paid by O'Rourke,the $12 charged by the hair stylist,and the exchange of lawn mowing for gutter repair are all examples of

Accepted Answer

A)   premiums.
B)   barter.
C)   the profit motive.
D)   price.
E)   outlays.F) A) and B)
G) A) and C)

Exam 11: Pricing Products and Services

A price reduction given when a used product is part of the payment on a new product is referred to as a

Correct Answer
verified

Elastic demand exists when

Correct Answer
verified

A construction company was offered a 3 percent reduction in price off all invoices from a lumberyard for paying within 10 days of issue.The lumberyard was offering a

Correct Answer
verified

A one-price policy refers to

Correct Answer
verified

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

Correct Answer
verified

The unit variable cost (UVC) equals variable cost (VC) divided by

Correct Answer
verified

Describe the pricing constraints a firm is likely to face.

Correct Answer
verified
Pricing constraints are factors that lim...
View Answer

If the CEO of the Clorox Co.were to say,"We want to control 60 percent of the bleach market within the next five years," he would have set a __________ pricing objective.

Correct Answer
verified

Which of the following is a cost-oriented approach to pricing?

Correct Answer
verified

Creative marketers engage in value-pricing,which is the practice of simultaneously increasing product and service benefits while

Correct Answer
verified

According to the textbook,clothing manufacturer Christian Dior and retailer Neiman Marcus use __________ pricing.

Correct Answer
verified

Price deals that mislead consumers fall into the category of

Correct Answer
verified

A break-even chart is a graphic presentation

Correct Answer
verified

Creative Quilts Studio sells hundreds of colors and types of fabric and thread.To price its inventory,the owners add 50 percent to the cost of each bolt of fabric and every spool of thread.What is this pricing approach called?

Correct Answer
verified

Correct Answer
verified

Reductions in unit costs for a larger order are referred to as

Correct Answer
verified

When Kroger,a national supermarket chain,uses a special promotion to price a six-pack of soda at .09 (which is below its customary price level of ) 29) ,it is attempting to

Correct Answer
verified

The __________ of a product is what customers are generally willing to pay.

Correct Answer
verified

Dynamic price policy refers to

Correct Answer
verified

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

Correct Answer
verified

Exam 11: Pricing Products and Services

A price reduction given when a used product is part of the payment on a new product is referred to as a

Correct AnswerverifiedShow Answer

Elastic demand exists when

Correct AnswerverifiedShow Answer

A construction company was offered a 3 percent reduction in price off all invoices from a lumberyard for paying within 10 days of issue.The lumberyard was offering a

Correct AnswerverifiedShow Answer

A one-price policy refers to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The unit variable cost (UVC) equals variable cost (VC) divided by

Correct AnswerverifiedShow Answer

Describe the pricing constraints a firm is likely to face.

Correct AnswerverifiedPricing constraints are factors that lim...View AnswerShow Answer

If the CEO of the Clorox Co.were to say,"We want to control 60 percent of the bleach market within the next five years," he would have set a __________ pricing objective.

Correct AnswerverifiedShow Answer

Which of the following is a cost-oriented approach to pricing?

Correct AnswerverifiedShow Answer

Creative marketers engage in value-pricing,which is the practice of simultaneously increasing product and service benefits while

Correct AnswerverifiedShow Answer

According to the textbook,clothing manufacturer Christian Dior and retailer Neiman Marcus use __________ pricing.

Correct AnswerverifiedShow Answer

Price deals that mislead consumers fall into the category of

Correct AnswerverifiedShow Answer

A break-even chart is a graphic presentation

Correct AnswerverifiedShow Answer

Creative Quilts Studio sells hundreds of colors and types of fabric and thread.To price its inventory,the owners add 50 percent to the cost of each bolt of fabric and every spool of thread.What is this pricing approach called?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Reductions in unit costs for a larger order are referred to as

Correct AnswerverifiedShow Answer

When Kroger,a national supermarket chain,uses a special promotion to price a six-pack of soda at .09 (which is below its customary price level of ) 29) ,it is attempting to

Correct AnswerverifiedShow Answer

The __________ of a product is what customers are generally willing to pay.

Correct AnswerverifiedShow Answer

Dynamic price policy refers to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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Pricing constraints are factors that lim...
View Answer

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