Question 1

At a price of $2,000 per unit,the demand for Rancho 60 mountain bikes from Cloyd's Inc.is 300 units,which is the number of bikes they manufacture every year.If the marketing managers at Cloyd's Inc.decide to sell each bike at a price lower than $2,000 per unit,_____.

Accepted Answer

A)   a shortage of bikes will be created
B)   the number of bikes produced will increase drastically
C)   an inelastic demand for the bikes will be created
D)   the demand for and the supply of the bikes will attain equilibriumE) A) and B)
F) A) and C)

Question 2

Which of the following statements is true of value-based pricing?

Accepted Answer

A)   It is a modification of uniform delivered pricing.
B)   It is sometimes called postage stamp pricing.
C)   It has grown out of the quality movement.
D)   It presents drawbacks if costs are continually rising.E) B) and C)
F) All of the above

Question 3

An effective distribution network can overcome minor flaws in the marketing mix.

Accepted Answer

A) True 
 B)False

Question 4

The 99-Center is a retail store where all the merchandise is priced at 99 cents.This retailer uses a _____.

Accepted Answer

A)   single-price tactic
B)   flexible pricing tactic
C)   price lining tactic
D)   price bundling tacticE) C) and D)
F) B) and C)

Question 5

A trade discount is a payment to a dealer for promoting the manufacturer's products.

Accepted Answer

A) True 
 B)False

Question 6

Firms that indulge in price fixing

Accepted Answer

A)   decide how much to charge for a product.
B)   undercut the price quoted by a seller to a buyer.
C)   charge different prices to different customers.
D)   do not sell to two or more different buyers.E) All of the above
F) A) and B)

Question 7

A reasonable level of profits consistent with the level of risk an organization faces is called ____________.

Accepted Answer

A)   satisfactory profit
B)   return on investment
C)   highest level of profit
D)   marginal revenueE) A) and B)
F) All of the above

Question 8

Which of the following refers to the practice of marking up prices by 100 percent,or doubling the cost?

Accepted Answer

A)   Keystoning
B)   Markup pricing
C)   Breakeven pricing
D)   Price matchingE) A) and B)
F) All of the above

Question 9

Which of the following statements is true of simple break-even analysis?

Accepted Answer

A)   It does not consider the selling price of a product.
B)   It does not give weightage to the cost of labor.
C)   It is applicable only when the demand for a product is elastic.
D)   It ignores the demand for a product.E) A) and B)
F) A) and D)

Question 10

Which of the following statements best defines dynamic pricing?

Accepted Answer

A)   It is the practice of marking up prices by 100 percent,or doubling the cost.
B)   It is a basic,long-term pricing framework that establishes the initial price for a product.
C)   It is the ability to change prices very quickly.
D)   It is the practice of charging a very low price for a product with the intent of driving competitors out of business.E) None of the above
F) A) and D)

Question 11

Which of the following is a characteristic of niche-oriented type of shopping bot?

Accepted Answer

A)   It searches a wide range of product categories.
B)   The sites it accesses operate using a Yellow Pages type of model.
C)   Consumers can find the list of all retailers.
D)   It searches for prices for only one type of product.E) None of the above
F) All of the above

Question 12

A firm can charge different prices to different customers if the prices represent manufacturing or quantity discount savings.

Accepted Answer

A) True 
 B)False

Question 13

Describe what is meant by "base price," and explain the concept of price lining as a pricing tactic for fine-tuning the base price and offsetting rising costs.

Accepted Answer

Answers will vary.Base price is the gene...

Question 14

Name the method of determining what sales volume must be reached before total revenue equals total costs.

Accepted Answer

A)   Break-even analysis
B)   Markup pricing
C)   Opportunity analysis
D)   Fixed-cost pricingE) A) and B)
F) A) and C)

Question 15

Which of the following refers to a private electronic network that links a company with its suppliers and customers?

Accepted Answer

A)   Intranet
B)   Internet
C)   Extranet
D)   IntercomE) A) and C)
F) C) and D)

Question 16

Univ Airlines and Mirago Airlines are competitors.They mutually agree to charge customers a certain price for airfreight.This leads to the several lawsuits being filed against them by other airlines.In this case,Univ Airlines and Mirago Airlines can be charged under the _____ Act.

Accepted Answer

A)   Clayton
B)   Sarbanes-Oxley
C)   Sherman
D)   Robinson-PatmanE) A) and C)
F) A) and B)

Question 17

Which of the following represents approaches to create a price strategy?

Accepted Answer

A)   Price skimming and penetration pricing,but not status quo pricing
B)   Penetration pricing and status quo pricing,but not price skimming
C)   Status quo pricing and price skimming,but not penetration pricing
D)   Price skimming,penetration pricing,and status quo pricingE) All of the above
F) B) and C)

Question 18

At a local supermarket,Linda saw a box of plant fertilizer that retails at $25 but was marked down to $20.99.Given this information,$20.99 is the _____.

Accepted Answer

A)   dividend
B)   price
C)   margin
D)   profitE) B) and C)
F) A) and B)

Question 19

A situation in which an increase or a decrease in price will not significantly affect demand for the product is called __________ demand.

Accepted Answer

A)   elastic
B)   inelastic
C)   stagnant
D)   fluctuatingE) None of the above
F) A) and B)

Question 20

The marketing manager of Raven Golf Club finds that the club can increase its market share if it slashes membership prices during the first quarter of the year.However,it would mean that the club will not achieve its target return on investment.This conflict illustrates

Accepted Answer

A)   the need to eliminate low-profit products.
B)   a lack of competition in the marketplace.
C)   how pricing operates in an ideal marketplace.
D)   the need for trade-offs in pricing objectives.E) None of the above
F) A) and B)

Exam 19: Pricing Concepts

At a local supermarket,Linda saw a box of plant fertilizer that retails at $25 but was marked down to $20.99.Given this information,$20.99 is the _____.

Correct AnswerverifiedShow Answer

Which of the following statements best defines dynamic pricing?

Correct AnswerverifiedShow Answer

At a price of $2,000 per unit,the demand for Rancho 60 mountain bikes from Cloyd's Inc.is 300 units,which is the number of bikes they manufacture every year.If the marketing managers at Cloyd's Inc.decide to sell each bike at a price lower than $2,000 per unit,_____.

Correct AnswerverifiedShow Answer

Name the method of determining what sales volume must be reached before total revenue equals total costs.

Correct AnswerverifiedShow Answer

A situation in which an increase or a decrease in price will not significantly affect demand for the product is called __________ demand.

Correct AnswerverifiedShow Answer

Firms that indulge in price fixing

Correct AnswerverifiedShow Answer

The 99-Center is a retail store where all the merchandise is priced at 99 cents.This retailer uses a _____.

Correct AnswerverifiedShow Answer

Which of the following refers to the practice of marking up prices by 100 percent,or doubling the cost?

Correct AnswerverifiedShow Answer

Which of the following refers to a private electronic network that links a company with its suppliers and customers?

Correct AnswerverifiedShow Answer

The marketing manager of Raven Golf Club finds that the club can increase its market share if it slashes membership prices during the first quarter of the year.However,it would mean that the club will not achieve its target return on investment.This conflict illustrates

Correct AnswerverifiedShow Answer

A trade discount is a payment to a dealer for promoting the manufacturer's products.

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of niche-oriented type of shopping bot?

Correct AnswerverifiedShow Answer

Which of the following statements is true of simple break-even analysis?

Correct AnswerverifiedShow Answer

Which of the following statements is true of value-based pricing?

Correct AnswerverifiedShow Answer

A reasonable level of profits consistent with the level of risk an organization faces is called ____________.

Correct AnswerverifiedShow Answer

An effective distribution network can overcome minor flaws in the marketing mix.

Correct AnswerverifiedShow Answer

Describe what is meant by "base price," and explain the concept of price lining as a pricing tactic for fine-tuning the base price and offsetting rising costs.

Correct AnswerverifiedAnswers will vary.Base price is the gene...View AnswerShow Answer

Univ Airlines and Mirago Airlines are competitors.They mutually agree to charge customers a certain price for airfreight.This leads to the several lawsuits being filed against them by other airlines.In this case,Univ Airlines and Mirago Airlines can be charged under the _____ Act.

Correct AnswerverifiedShow Answer

A firm can charge different prices to different customers if the prices represent manufacturing or quantity discount savings.

Correct AnswerverifiedShow Answer

Which of the following represents approaches to create a price strategy?

Correct AnswerverifiedShow Answer

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Answers will vary.Base price is the gene...
View Answer

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