Question 1

Figure 11-6a 
-Suppose you are the owner of a picture frame store.Assume that the average price customers are willing to pay for each picture frame is $120.20.20.20.20.20.20.20.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) .According to Figure 11-6a,how much profit will your picture frame store make if it sells 400 picture frames?

Accepted Answer

A)   $48,000
B)   $32,000
C)   $16,000
D)   $0
E)   $64,000F) C) and E)
G) None of the above

Question 2

Demand factors refer to

Accepted Answer

A)   the number of consumers who can afford to purchase a product or service.
B)   the price that should be charged for a given product.
C)   consumers' willingness and ability to pay for products and services.
D)   the number of consumers who want to purchase a product.
E)   the number of consumers who can purchase a product.F) All of the above
G) D) and E)

Question 3

Rather than emphasize demand,cost,or profit factors,a price setter can stress what __________ doing.

Accepted Answer

A)   the service sector is
B)   the market or competitors are
C)   the global economy is
D)   suppliers are
E)   the financial markets areF) All of the above
G) C) and D)

Question 4

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 success of a company's products.
C)   Pricing objectives may change depending upon the cost of advertising.
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) A) and E)
G) B) and D)

Question 5

Which of the four approaches does Carmex use to set prices for its products?

Accepted Answer

Carmex uses each of the four perspective...

Question 6

Value-pricing refers to

Accepted Answer

A)   the ratio of perceived benefits to price.
B)   the money or other considerations exchanged for the ownership or use of a product or service.
C)   the practice of simultaneously increasing product and service benefits while maintaining or decreasing price.
D)   the ratio of price to perceived benefits.
E)   list price minus incentives and allowances plus extra fees.F) A) and E)
G) All of the above

Question 7

Price discrimination refers to

Accepted Answer

A)   the practice of charging different prices to different buyers for goods of like grade and quality.
B)   an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor.
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 also buy another product in the line.F) D) and E)
G) A) and B)

Question 8

A trade-in allowance is

Accepted Answer

A)   a noncash exchange of one product for another of equal or greater value.
B)   a cash-back payment when a more expensive item is replaced with a less expensive item.
C)   the return of money based on proof of purchase.
D)   a cash payment to a retailer for extra in-store support or special featuring of the brand.
E)   a price reduction given when a used product is part of the payment on a new product.F) A) and B)
G) D) and E)

Question 9

Three different objectives relate to a firm's profit,which is often measured in terms of return on investment.One objective,known as _________,is common in many firms because the targets can be set and performance measured quickly.

Accepted Answer

A)   managing for long-run profits
B)   target return
C)   break-even strategy
D)   maximizing current profit
E)   minimizing riskF) C) and E)
G) A) and C)

Question 10

Family Dollar Stores,like Dollar Value Stores and 99¢ Only Stores,use what type of pricing policy?

Accepted Answer

A)   dynamic pricing
B)   customary pricing
C)   flexible pricing
D)   one-price
E)   at-market pricingF) B) and C)
G) A) and B)

Question 11

All of the following are examples of pricing constraints except which?

Accepted Answer

A)   familiarity of the product
B)   competitors' prices
C)   newness of the product
D)   unit volume
E)   demand for the product class, product, or brandF) B) and D)
G) A) and E)

Question 12

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

Accepted Answer

A)   penetration pricing
B)   target pricing
C)   loss-leader pricing
D)   target return-on-investment pricing
E)   standard markup pricingF) A) and D)
G) C) and D)

Question 13

While consumer tastes and price and availability of similar products determine what consumers want to buy,consumer income determines

Accepted Answer

A)   where they buy.
B)   the degree of brand loyalty.
C)   the degree of repeat buys.
D)   what they can buy.
E)   their desire to buy.F) All of the above
G) A) and E)

Question 14

Vertical price fixing refers to

Accepted Answer

A)   two or more competitors explicitly or implicitly setting prices.
B)   the practice of charging different prices to different buyers for goods of like grade and quality.
C)   controlling agreements between independent buyers and sellers whereby sellers are required not to sell products below a minimum retail price.
D)   a conspiracy among firms to set prices for a product or service.
E)   a seller's requirement that the purchaser of one product also buy another product in the line.F) A) and C)
G) D) and E)

Question 15

Manufacturers of private brands use which method of competition-oriented pricing?

Accepted Answer

A)   penetration pricing
B)   below-market pricing
C)   loss-leader pricing
D)   prestige pricing
E)   skimming pricingF) B) and D)
G) C) and D)

Question 16

Figure 11-3b 1 to D2 in Figure 11-3b indicates 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." class="answers-bank-image d-inline" rel="preload" >
-A shift of the demand curve from D1 to D2 in Figure 11-3b 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) B) and E)
G) B) and D)

Question 17

The latest in appliance technology allows your refrigerator to send messages to your smart phone and even photos of the interior to remind you of what you need to pick up at the store.Taking advantage of strong consumer demand for technology-enabled products,marketers set prices for these refrigerators at thousands above other models.These marketers are using a __________ pricing strategy.

Accepted Answer

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

Question 18

With profit-oriented approaches to pricing,a price setter may choose to balance both __________ and __________ to set price.

Accepted Answer

A)   revenues; profit
B)   tangible goods; services
C)   costs; revenues
D)   demand; supply
E)   cost; demandF) B) and C)
G) All of the above

Question 19

Market share is the ratio of the __________ to those of the industry,including the firm itself.

Accepted Answer

A)   target return on sales
B)   marginal profit of the firm
C)   firm's sales revenues or unit sales
D)   marketing expenses of the firm
E)   profits of the firmF) A) and D)
G) A) and C)

Question 20

Target profit pricing refers to

Accepted Answer

A)   adjusting the price of a product so it is "in line" with that of its largest competitor.
B)   setting an annual target of a specific dollar volume of profit.
C)   setting the price of a line of products at a number of different price points.
D)   adding a fixed percentage to the cost of all items in a specific product class.
E)   setting prices to achieve a profit that is a specified percentage of production costs.F) C) and E)
G) None of the above

Exam 11: Pricing Products and Services

Family Dollar Stores,like Dollar Value Stores and 99¢ Only Stores,use what type of pricing policy?

Correct Answer
verified

Price discrimination refers to

Correct Answer
verified

Demand factors refer to

Correct Answer
verified

Value-pricing refers to

Correct Answer
verified

Market share is the ratio of the __________ to those of the industry,including the firm itself.

Correct Answer
verified

Figure 11-3b -A shift of the demand curve from D₁ to D₂ in Figure 11-3b indicates

Correct Answer
verified

Vertical price fixing refers to

Correct Answer
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Target profit pricing refers to

Correct Answer
verified

Correct Answer
verified

Manufacturers of private brands use which method of competition-oriented pricing?

Correct Answer
verified

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

Correct Answer
verified

A trade-in allowance is

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Three different objectives relate to a firm's profit,which is often measured in terms of return on investment.One objective,known as _________,is common in many firms because the targets can be set and performance measured quickly.

Correct Answer
verified

All of the following are examples of pricing constraints except which?

Correct Answer
verified

Rather than emphasize demand,cost,or profit factors,a price setter can stress what __________ doing.

Correct Answer
verified

While consumer tastes and price and availability of similar products determine what consumers want to buy,consumer income determines

Correct Answer
verified

With profit-oriented approaches to pricing,a price setter may choose to balance both and to set price.

Correct Answer
verified

Which of the four approaches does Carmex use to set prices for its products?

Correct Answer
verified
Carmex uses each of the four perspective...
View Answer

Exam 11: Pricing Products and Services

Family Dollar Stores,like Dollar Value Stores and 99¢ Only Stores,use what type of pricing policy?

Correct AnswerverifiedShow Answer

Price discrimination refers to

Correct AnswerverifiedShow Answer

Demand factors refer to

Correct AnswerverifiedShow Answer

Value-pricing refers to

Correct AnswerverifiedShow Answer

Market share is the ratio of the __________ to those of the industry,including the firm itself.

Correct AnswerverifiedShow Answer

Figure 11-3b -A shift of the demand curve from D1 to D2 in Figure 11-3b indicates

Correct AnswerverifiedShow Answer

Vertical price fixing refers to

Correct AnswerverifiedShow Answer

Target profit pricing refers to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Manufacturers of private brands use which method of competition-oriented pricing?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A trade-in allowance is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Three different objectives relate to a firm's profit,which is often measured in terms of return on investment.One objective,known as _________,is common in many firms because the targets can be set and performance measured quickly.

Correct AnswerverifiedShow Answer

All of the following are examples of pricing constraints except which?

Correct AnswerverifiedShow Answer

Rather than emphasize demand,cost,or profit factors,a price setter can stress what __________ doing.

Correct AnswerverifiedShow Answer

While consumer tastes and price and availability of similar products determine what consumers want to buy,consumer income determines

Correct AnswerverifiedShow Answer

With profit-oriented approaches to pricing,a price setter may choose to balance both __________ and __________ to set price.

Correct AnswerverifiedShow Answer

Which of the four approaches does Carmex use to set prices for its products?

Correct AnswerverifiedCarmex uses each of the four perspective...View AnswerShow 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
verified

Figure 11-3b -A shift of the demand curve from D₁ to D₂ in Figure 11-3b indicates

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

With profit-oriented approaches to pricing,a price setter may choose to balance both and to set price.

Correct Answer
verified

Correct Answer
verified
Carmex uses each of the four perspective...
View Answer