Question 1

Economists have identified four types of competitive markets: oligopoly,monopolistic competition,pure competition,and __________.

Accepted Answer

A)   capitalism
B)   socialism
C)   consumer-dominated
D)   government-dominated
E)   pure monopolyF) B) and E)
G) C) and E)

Question 2

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

Accepted Answer

A)   When a product is in the introductory stage of the product life cycle, there is very little latitude in setting the initial price since consumers still don't know what the product can really do.
B)   A company has more latitude in setting an initial price if the product is in the introductory stage of its life cycle and is the only product in the line.
C)   The greater the number of products in a company's product line, the less the product features of similar products can affect price.
D)   The newest addition to a company's product line should always have the highest price in order to maintain the value of existing brands.
E)   To avoid cannibalization, the newest product addition to a company's product line should never have a price lower than the other offerings in the line.F) B) and C)
G) A) and E)

Question 3

major grocery chain pays its baggers a regular hourly wage.The baggers not only pack the groceries,they will take customers' groceries to their car,regardless of the weather.The baggers are not permitted to accept tips,even if they are offered.This carryout service is an example of

Accepted Answer

A)   pricing enhancement.
B)   societal pricing.
C)   revenue sharing.
D)   value-pricing.
E)   cost-pricing.F) A) and B)
G) A) and C)

Question 4

Shoe Company sells heel replacement kits for men's shoes.It has fixed costs of $9 million and unit variable costs of $5 per pair.Ace is considering a switch from manual labor to an automated process.New equipment would cost an additional $4 million per year while lowering variable costs by $3 per shoe repair kit.How many kits would Ace have to sell at $17 per pair to make $2 million in profits in the next year with the automated process?

Accepted Answer

A)   117,648 kits
B)   428,572 kits
C)   705,883 kits
D)   916,667 kits
E)   1,000,000 kitsF) None of the above
G) B) and E)

Question 5

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

Accepted Answer

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) B) and C)
G) All of the above

Question 6

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 7

ratio of __________to price is referred to as value.

Accepted Answer

A)   prestige value
B)   perceived benefits
C)   costs
D)   perceived quality
E)   profitsF) B) and D)
G) B) and C)

Question 8

any downward-sloping,straight-line demand curve,the marginal revenue curve always

Accepted Answer

A)   is the additional money required to make one additional unit.
B)   falls at a rate twice as fast as the demand curve.
C)   falls at a rate half as fast as the demand curve.
D)   remains the same since there is a one-to-one relationship.
E)   reacts as the direct inverse of the original line.F) B) and E)
G) C) and D)

Question 9

Factors that determine consumers' willingness and ability to pay for products and services are referred to as

Accepted Answer

A)   supply factors.
B)   demand factors.
C)   affordability factors.
D)   elasticity factors.
E)   macro environmental factors.F) A) and B)
G) A) and C)

Question 10

Which of the following are examples of elements of Step 3 in the price-setting process?

Accepted Answer

A)   profit, market share, and survival
B)   estimation of demand, sales revenue, and price elasticity
C)   cost estimation, marginal analysis, and break-even analysis
D)   demand for the product class and brand, newness of the product, and competition
E)   market segmentation, targeting, and positioningF) A) and B)
G) A) and C)

Question 11

one point,people were willing to pay hundreds of dollars on eBay for a Beanie Baby toy that originally cost a fraction of that amount.Today,those same Beanie Babies can be found at garage sales all over the country for a less than a dollar apiece.This is most likely due to

Accepted Answer

A)   faulty craftsmanship in later production batches.
B)   a sharp downturn in the economy.
C)   the new, more nostalgic fad of bobble-head dolls.
D)   too many counterfeit Beanie Babies entering the country.
E)   a product becoming a fad and then losing its fad appeal.F) C) and E)
G) A) and B)

Question 12

increase value,marketers have the option of

Accepted Answer

A)   decreasing benefits.
B)   decreasing benefits and increasing price.
C)   decreasing price and increasing benefits.
D)   decreasing price and decreasing benefits.
E)   do nothing and let the perceived value of the item increase as it matures in its life cycle.F) B) and D)
G) A) and E)

Exam 13: Building the Price Foundation

increase value,marketers have the option of

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

Correct Answer
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major grocery chain pays its baggers a regular hourly wage.The baggers not only pack the groceries,they will take customers' groceries to their car,regardless of the weather.The baggers are not permitted to accept tips,even if they are offered.This carryout service is an example of

Correct Answer
verified

one point,people were willing to pay hundreds of dollars on eBay for a Beanie Baby toy that originally cost a fraction of that amount.Today,those same Beanie Babies can be found at garage sales all over the country for a less than a dollar apiece.This is most likely due to

Correct Answer
verified

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

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

Correct Answer
verified

Factors that determine consumers' willingness and ability to pay for products and services are referred to as

Correct Answer
verified

ratio of __________to price is referred to as value.

Correct Answer
verified

Economists have identified four types of competitive markets: oligopoly,monopolistic competition,pure competition,and __________.

Correct Answer
verified

Which of the following are examples of elements of Step 3 in the price-setting process?

Correct Answer
verified

any downward-sloping,straight-line demand curve,the marginal revenue curve always

Correct Answer
verified

Exam 13: Building the Price Foundation

increase value,marketers have the option of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

major grocery chain pays its baggers a regular hourly wage.The baggers not only pack the groceries,they will take customers' groceries to their car,regardless of the weather.The baggers are not permitted to accept tips,even if they are offered.This carryout service is an example of

Correct AnswerverifiedShow Answer

one point,people were willing to pay hundreds of dollars on eBay for a Beanie Baby toy that originally cost a fraction of that amount.Today,those same Beanie Babies can be found at garage sales all over the country for a less than a dollar apiece.This is most likely due to

Correct AnswerverifiedShow Answer

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

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

Correct AnswerverifiedShow Answer

Factors that determine consumers' willingness and ability to pay for products and services are referred to as

Correct AnswerverifiedShow Answer

ratio of __________to price is referred to as value.

Correct AnswerverifiedShow Answer

Economists have identified four types of competitive markets: oligopoly,monopolistic competition,pure competition,and __________.

Correct AnswerverifiedShow Answer

Which of the following are examples of elements of Step 3 in the price-setting process?

Correct AnswerverifiedShow Answer

any downward-sloping,straight-line demand curve,the marginal revenue curve always

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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