Question 1

Brand  Dollar Sales Market Share  Unit Volume Market Share  Red Bull 2010200920102009 Monster 1837%33%33% Rockstar 7171918 Other  Brands 37100%38100%40100%40100%\begin{array} { | l c c c c | } \hline 	ext { Brand } & { 	ext { Dollar Sales Market Share } } &&{ 	ext { Unit Volume Market Share } } \\hline 	ext { Red Bull } & \mathbf { 2 0 1 0 } & \mathbf { 2 0 0 9 } & \mathbf { 2 0 1 0 } & \mathbf { 2 0 0 9 } \\hline 	ext { Monster } & 18 & 37 \% & 33 \% & 33 \% \\hline 	ext { Rockstar } & 7 & 17 & 19 & 18 \\hline \begin{array} { l } 	ext { Other } \	ext { Brands }\end{array} & \frac { 37 } { 100 \% } & \frac { 38 } { 100 \% } & \frac { 40 } { 100 \% } & \frac { 40 } { 100 \% } \\hline\end{array} Brand  Red Bull  Monster  Rockstar  Other  Brands ​​ Dollar Sales Market Share 2010187100%37​​200937%17100%38​​ Unit Volume Market Share 201033%19100%40​​200933%18100%40​​​ 
-The Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks. What is the price premium for Red Bull in 2009?

Accepted Answer

A)  12.1%
B)  0%
C)  -5.0%
D)  -5.6%
E)  -11.1% F) C) and D)
G) A) and D)

Question 2

To encourage retailers to pay their bills quickly, manufacturers offer them

Accepted Answer

A)  quantity discounts.
B)  cash discounts.
C)  flexible pricing policies.
D)  promotional allowances.
E)  manufacturer's inducements.F) B) and E)
G) C) and E)

Question 3

Setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors is referred to as __________.

Accepted Answer

A)  cost-plus pricing
B)  customary pricing
C)  standard markup pricing
D)  loss leader pricing
E)  target profit pricingF) All of the above
G) B) and E)

Question 4

When microwave ovens were in the introduction stage of their product life cycle, some consumers were willing to pay exorbitant prices for these innovative ovens. Taking advantage of this strong consumer desire, marketers set the price for microwave ovens at the highest initial price possible. Marketers of microwave ovens used a __________ pricing strategy.

Accepted Answer

A)  skimming
B)  penetration
C)  prestige
D)  price lining
E)  bundleF) B) and C)
G) A) and D)

Question 5

What are the six broad objectives that an organization may pursue that tie in directly to its pricing policies?

Accepted Answer

The six broad objectives that ...

Question 6

All of the following are profit-oriented approaches to select an approximate price level EXCEPT:

Accepted Answer

A)  target ROI pricing.
B)  target profit pricing.
C)  target return-on-sales pricing.
D)  target return-on-investment pricing.
E)  cost-plus percentage-of-cost pricing.F) A) and B)
G) C) and D)

Question 7

Predatory pricing is

Accepted Answer

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 lineF) A) and B)
G) All of the above

Question 8

A custom tailor wishes to use target profit pricing to establish a price for a custom-designed business suit. Assume variable cost is $200 per suit, fixed cost is $44,000, and the target profit is $50,000 based on a volume of 50 suits. What price should be charged for a typical custom suit?

Accepted Answer

A)  $520
B)  $1,040
C)  $1,880
D)  $2,080
E)  $10,000F) A) and E)
G) B) and C)

Question 9

The pricing strategy that is almost the exact opposite of skimming pricing is

Accepted Answer

A)  target pricing.
B)  penetration pricing.
C)  price lining.
D)  odd-even pricing.
E)  prestige pricing.F) A) and B)
G) A) and C)

Question 10

There are four common approaches to selecting an approximate price level. List and provide a brief description for each one.

Accepted Answer

Four common approaches to helping find t...

Question 11

Vizio, Inc. is the largest contender in the North American __________ market.

Accepted Answer

A)  designer eyewear
B)  virtual media
C)  Smart TV
D)  3D video game
E)  exotic travelF) B) and E)
G) C) and D)

Question 12

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 B)
G) All of the above

Question 13

All of the following are examples of pricing objectives EXCEPT:

Accepted Answer

A)  market share.
B)  survival.
C)  unit sales.
D)  social responsibility.
E)  competitors' prices.F) C) and D)
G) A) and E)

Question 14

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

Question 15

A negative aspect of selecting unit volume as a pricing objective is that

Accepted Answer

A)  production often can not keep up with demand.
B)  there are increased carrying costs with extensive inventories.
C)  if price reductions are used to achieve volume objectives, it can sometimes come at the expense of profits.
D)  it can create competition between divisions within the organization itself causing conflicts over the allocation of resources.
E)  it always positively correlates with a sales revenue objectiveF) A) and D)
G) B) and D)

Question 16

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

Question 17

-Suppose you are the owner of a picture frame store. Let's assume that the average price customers are willing to pay for each picture frame is $120. Also, suppose your fixed costs (FC)  total $32,000 (real estate taxes, interest on a bank loan, etc.)  and unit variable cost (UVC)  for a picture frame is $40 (labor, glass, frame, and matting) . Figure 11-6 above shows that by selling 800 picture frames, you will

Accepted Answer

A)  break even.
B)  earn a profit.
C)  incur a loss.
D)  have no fixed costs.
E)  have no variable costs.F) A) and E)
G) A) and D)

Question 18

A firm may forgo higher profit on sales and follow which of the following pricing objectives because it wants to recognize its stakeholder obligations?

Accepted Answer

A)  profit
B)  market share
C)  unit volume
D)  survival
E)  social responsibilityF) C) and D)
G) B) and C)

Question 19

Marketers using a flexible-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)  support from government agencies.F) C) and E)
G) A) and D)

Question 20

A skimming pricing policy is likely to be most effective when

Accepted Answer

A)  lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost.
B)  consumers tend to be price sensitive.
C)  it will be easier to set measurable sales unit goals.
D)  a lower price will significantly lower fixed costs.
E)  consumers perceive your product to be similar to other products on the market.F) A) and B)
G) B) and C)

Exam 11: Pricing Products and Services

Correct Answer
verified

Correct Answer
verified

All of the following are demand factors EXCEPT:

Correct Answer
verified

The pricing strategy that is almost the exact opposite of skimming pricing is

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

There are four common approaches to selecting an approximate price level. List and provide a brief description for each one.

Correct Answer
verified
Four common approaches to helping find t...
View Answer

A skimming pricing policy is likely to be most effective when

Correct Answer
verified

Setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors is referred to as __________.

Correct Answer
verified

To encourage retailers to pay their bills quickly, manufacturers offer them

Correct Answer
verified

A custom tailor wishes to use target profit pricing to establish a price for a custom-designed business suit. Assume variable cost is $200 per suit, fixed cost is $44,000, and the target profit is $50,000 based on a volume of 50 suits. What price should be charged for a typical custom suit?

Correct Answer
verified

All of the following are examples of pricing objectives EXCEPT:

Correct Answer
verified

A firm may forgo higher profit on sales and follow which of the following pricing objectives because it wants to recognize its stakeholder obligations?

Correct Answer
verified

Vizio, Inc. is the largest contender in the North American __________ market.

Correct Answer
verified

Marketers using a flexible-price policy should take care to avoid

Correct Answer
verified

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

A negative aspect of selecting unit volume as a pricing objective is that

Correct Answer
verified

Predatory pricing is

Correct Answer
verified

What are the six broad objectives that an organization may pursue that tie in directly to its pricing policies?

Correct Answer
verified
The six broad objectives that ...
View Answer

All of the following are profit-oriented approaches to select an approximate price level EXCEPT:

Correct Answer
verified

Exam 11: Pricing Products and Services

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

All of the following are demand factors EXCEPT:

Correct AnswerverifiedShow Answer

The pricing strategy that is almost the exact opposite of skimming pricing is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

There are four common approaches to selecting an approximate price level. List and provide a brief description for each one.

Correct AnswerverifiedFour common approaches to helping find t...View AnswerShow Answer

A skimming pricing policy is likely to be most effective when

Correct AnswerverifiedShow Answer

Setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors is referred to as __________.

Correct AnswerverifiedShow Answer

To encourage retailers to pay their bills quickly, manufacturers offer them

Correct AnswerverifiedShow Answer

A custom tailor wishes to use target profit pricing to establish a price for a custom-designed business suit. Assume variable cost is $200 per suit, fixed cost is $44,000, and the target profit is $50,000 based on a volume of 50 suits. What price should be charged for a typical custom suit?

Correct AnswerverifiedShow Answer

All of the following are examples of pricing objectives EXCEPT:

Correct AnswerverifiedShow Answer

A firm may forgo higher profit on sales and follow which of the following pricing objectives because it wants to recognize its stakeholder obligations?

Correct AnswerverifiedShow Answer

Vizio, Inc. is the largest contender in the North American __________ market.

Correct AnswerverifiedShow Answer

Marketers using a flexible-price policy should take care to avoid

Correct AnswerverifiedShow Answer

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

A negative aspect of selecting unit volume as a pricing objective is that

Correct AnswerverifiedShow Answer

Predatory pricing is

Correct AnswerverifiedShow Answer

What are the six broad objectives that an organization may pursue that tie in directly to its pricing policies?

Correct AnswerverifiedThe six broad objectives that ...View AnswerShow Answer

All of the following are profit-oriented approaches to select an approximate price level EXCEPT:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Four common approaches to helping find t...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The six broad objectives that ...
View Answer

Correct Answer
verified