Question 1

Marketing executives must translate estimates of customer demand into estimates of

Accepted Answer

A)  human and other resources required.
B)  advertising expenditures that will be required.
C)  ancillary product support.
D)  revenues the firm expects to receive.
E)  supply with a demand curve.F) B) and C)
G) A) and E)

Question 2

Microsoft,Sony,and Nintendo are the three principal firms in the video game console market.How much price competition is most likely for video game makers?

Accepted Answer

A)  There is almost none;the market sets the price.
B)  There is vigorous competition and common price wars to drive small competitors out.
C)  There is generally a price leader that sets the price.
D)  Each firm is aware of each other's prices and may adjust prices accordingly.
E)  Price is set by the seller but regulated by the government.F) B) and C)
G) C) and D)

Question 3

Figure 13-4A
 
-Figure 13-4A above shows that when the price for Red Baron frozen cheese pizzas moves from $8 to $6 per unit along the demand curve D₁,the quantity demanded

Accepted Answer

A)  increases from 2 to 3 million units per year.
B)  decreases from 3 to 2 million units per year.
C)  stays the same.
D)  increases from 6 to 8 million units per year.
E)  decreases from 8 to 6 million units per year.F) A) and E)
G) D) and E)

Question 4

Figure 13-4B
 
-A shift of the demand curve from D₂ to D₃ in Figure 13-4B above indicates

Accepted Answer

A)  fewer units are demanded at the given price.
B)  more units are demanded at the given price.
C)  the price has decreased.
D)  the price has increased.
E)  there is not enough information given to indicate what happened.F) All of the above
G) A) and B)

Question 5

The percentage change in quantity demanded relative to the percentage change in price is referred to as

Accepted Answer

A)  price elasticity of demand.
B)  demand derivative of price.
C)  average demand.
D)  marginal revenue.
E)  derived demand.F) D) and E)
G) C) and D)

Question 6

The particular type of competition dramatically influences the range of price competition and,in turn,

Accepted Answer

A)  the nature of product differentiation and extent of advertising.
B)  the nature of product differentiation and requirements for on-hand inventory.
C)  the degree of involvement with each of the organization's stakeholders.
D)  the degree of involvement with both retailers and wholesalers.
E)  the relationship between product lines and product classes.F) D) and E)
G) C) and E)

Question 7

Calculate a firm's profit using the following information: the unit price (P) for a product is $40;the quantity sold (Q) is 2,000;the fixed cost (FC) is $50,000;and the variable cost (VC) is $20,000.

Accepted Answer

A)  $10,000
B)  $50,000
C)  $110,000
D)  $150,000
E)  cannot be determined with the information providedF) B) and D)
G) A) and C)

Question 8

The horizontal axis of a demand curve graph represents

Accepted Answer

A)  market growth rate.
B)  relative market share.
C)  price per unit.
D)  potential profit in dollars.
E)  quantity demanded.F) A) and D)
G) A) and E)

Question 9

Recently,much of the Western United States experienced drought conditions and water usage was restricted in Denver.Yet,even though most people used less water,the price of water did not drop.When the drought was declared over,the water company raised water prices.However,the residents of Denver did not use less water.Here,water is

Accepted Answer

A)  price elastic.
B)  price sensitive.
C)  price inelastic.
D)  price insensitive.
E)  unitary elastic.F) D) and E)
G) A) and B)

Question 10

To increase value,marketers may ________,decrease price,or do both.

Accepted Answer

A)  decrease promotion
B)  increase benefits
C)  decrease distribution
D)  increase advertising
E)  allow the perceived value of the item to increase as it matures in the life cycleF) None of the above
G) B) and C)

Question 11

A firm may forgo a 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) All of the above
G) D) and E)

Question 12

The ratio of ________ to price is referred to as value.

Accepted Answer

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

Question 13

Basic to setting a product's price is the extent of ________.This information is used in estimating the revenues the firm expects to receive.

Accepted Answer

A)  management's commitment to the product relative to other products in the line
B)  the product line into which it will be introduced
C)  customer demand for it
D)  the firm's promotional budget
E)  distribution requirementsF) B) and C)
G) None of the above

Question 14

All of the following are legal or ethical considerations when setting a final price except which?

Accepted Answer

A)  geographical pricing
B)  predatory pricing
C)  price matching
D)  price fixing
E)  deceptive pricingF) None of the above
G) A) and B)

Question 15

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 16

Managing for long-run profits as a pricing objective implies that a company will

Accepted Answer

A)  give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets.
B)  maintain a given price range to ensure there is no loss of customers over time,even if the profit margin declines.
C)  invest excess cash in bonds and certificates of deposit in order to counteract any inflationary economic changes in the future.
D)  reinvest all profits into market research or product research rather than returned to shareholders.
E)  drop all products,product lines,or divisions that cannot maintain their pricing goals.F) A) and D)
G) B) and C)

Question 17

The largest U.S.-based TV maker is

Accepted Answer

A)  Sharp.
B)  Panasonic.
C)  LG.
D)  Sony.
E)  VIZIO.F) A) and D)
G) A) and B)

Question 18

Figure 13-4B
 
-Which of the following would most likely account for the shift in the demand curve from D₂ to D₃ shown in Figure 13-4B above?

Accepted Answer

A)  The firm increased its prices and consumers perceived the value of the product to be greater.
B)  There were more product substitutes available in the marketplace.
C)  Competitors in the market lowered their prices.
D)  A recession occurred that lowered consumers' incomes.
E)  The product became trendy among members of its target market.F) A) and C)
G) B) and D)

Question 19

Which of the following would be an example of a fixed cost for a company that makes carbon monoxide monitoring systems for workers to wear in hazardous areas?

Accepted Answer

A)  the lithium batteries that are used in each monitor
B)  the chest harness used to wear the monitor
C)  the insurance for the company's factory
D)  the free training videos that are sent to each new customer
E)  the stainless-steel,water-resistant cases in which the monitors are storedF) B) and C)
G) A) and E)

Question 20

Companies must know or anticipate what specific prices its present and potential competitors currently charge

Accepted Answer

A)  or may charge in the near future.
B)  only when these are considered permanent prices.
C)  primarily if they intend to compete on price rather than a form of differentiation like customer service.
D)  primarily if they intend to target price sensitive target markets.
E)  if there are legal requirements for pricing in their industry.F) C) and D)
G) B) and C)

Exam 13: Building the Price Foundation

Correct Answer
verified

Figure 13-4A -Figure 13-4A above shows that when the price for Red Baron frozen cheese pizzas moves from $8 to $6 per unit along the demand curve D₁,the quantity demanded

Correct Answer
verified

Marketing executives must translate estimates of customer demand into estimates of

Correct Answer
verified

Companies must know or anticipate what specific prices its present and potential competitors currently charge

Correct Answer
verified

Managing for long-run profits as a pricing objective implies that a company will

Correct Answer
verified

Calculate a firm's profit using the following information: the unit price (P) for a product is $40;the quantity sold (Q) is 2,000;the fixed cost (FC) is $50,000;and the variable cost (VC) is $20,000.

Correct Answer
verified

The horizontal axis of a demand curve graph represents

Correct Answer
verified

The particular type of competition dramatically influences the range of price competition and,in turn,

Correct Answer
verified

To increase value,marketers may ________,decrease price,or do both.

Correct Answer
verified

All of the following are legal or ethical considerations when setting a final price except which?

Correct Answer
verified

The largest U.S.-based TV maker 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

Basic to setting a product's price is the extent of ________.This information is used in estimating the revenues the firm expects to receive.

Correct Answer
verified

Figure 13-4B -A shift of the demand curve from D₂ to D₃ in Figure 13-4B above indicates

Correct Answer
verified

Microsoft,Sony,and Nintendo are the three principal firms in the video game console market.How much price competition is most likely for video game makers?

Correct Answer
verified

The ratio of ________ to price is referred to as value.

Correct Answer
verified

Figure 13-4B -Which of the following would most likely account for the shift in the demand curve from D₂ to D₃ shown in Figure 13-4B above?

Correct Answer
verified

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

Correct Answer
verified

The percentage change in quantity demanded relative to the percentage change in price is referred to as

Correct Answer
verified

Which of the following would be an example of a fixed cost for a company that makes carbon monoxide monitoring systems for workers to wear in hazardous areas?

Correct Answer
verified

Exam 13: Building the Price Foundation

Correct AnswerverifiedShow Answer

Figure 13-4A -Figure 13-4A above shows that when the price for Red Baron frozen cheese pizzas moves from $8 to $6 per unit along the demand curve D₁,the quantity demanded

Correct AnswerverifiedShow Answer

Marketing executives must translate estimates of customer demand into estimates of

Correct AnswerverifiedShow Answer

Companies must know or anticipate what specific prices its present and potential competitors currently charge

Correct AnswerverifiedShow Answer

Managing for long-run profits as a pricing objective implies that a company will

Correct AnswerverifiedShow Answer

Calculate a firm's profit using the following information: the unit price (P) for a product is $40;the quantity sold (Q) is 2,000;the fixed cost (FC) is $50,000;and the variable cost (VC) is $20,000.

Correct AnswerverifiedShow Answer

The horizontal axis of a demand curve graph represents

Correct AnswerverifiedShow Answer

The particular type of competition dramatically influences the range of price competition and,in turn,

Correct AnswerverifiedShow Answer

To increase value,marketers may ________,decrease price,or do both.

Correct AnswerverifiedShow Answer

All of the following are legal or ethical considerations when setting a final price except which?

Correct AnswerverifiedShow Answer

The largest U.S.-based TV maker 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

Basic to setting a product's price is the extent of ________.This information is used in estimating the revenues the firm expects to receive.

Correct AnswerverifiedShow Answer

Figure 13-4B -A shift of the demand curve from D₂ to D₃ in Figure 13-4B above indicates

Correct AnswerverifiedShow Answer

Microsoft,Sony,and Nintendo are the three principal firms in the video game console market.How much price competition is most likely for video game makers?

Correct AnswerverifiedShow Answer

The ratio of ________ to price is referred to as value.

Correct AnswerverifiedShow Answer

Figure 13-4B -Which of the following would most likely account for the shift in the demand curve from D₂ to D₃ shown in Figure 13-4B above?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The percentage change in quantity demanded relative to the percentage change in price is referred to as

Correct AnswerverifiedShow Answer

Which of the following would be an example of a fixed cost for a company that makes carbon monoxide monitoring systems for workers to wear in hazardous areas?

Correct AnswerverifiedShow Answer

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The six broad objectives that ...
View Answer

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