Question 1

Suppose that a friend asks you to drive him to the airport this weekend so he can catch a flight.He pays you for the gas used driving to the airport,and for the cost of parking the car at the airport while you help him in with his bags.He then declares that you are now "even," since he has fully compensated you for any costs you incurred in helping him get to his flight.From your perspective,what aspects of the "price" of taking your friend to the airport has he omitted?

Accepted Answer

The full sacrifice of taking t...

Question 2

_______ measures consumers' sensitivity to price changes.

Accepted Answer

A)   Cross-price elasticity of demand
B)   Price elasticity of demand
C)   Income elasticity of demand
D)   Competitive profit elasticity of demand
E)   Inelastic demand price parity

Question 3

A customer orientation toward pricing implicitly invokes the concept of

Accepted Answer

A)   knowing the dimensions of the target market.
B)   positioning.
C)   the income effect.
D)   value.
E)   profit.

Question 4

Developing a good pricing strategy is essential to the financial well-being of a firm.Even though a firm has an excellent strategy,what are continuing threats to the strategy?

Accepted Answer

Economic conditions,changes in...

Question 5

A "no haggle" pricing policy is a type of _____ pricing strategy.

Accepted Answer

A)   maximizing profits
B)   sales orientation
C)   target return
D)   status quo
E)   customer-oriented

Question 6

Rarely is the lowest-price product offering the dominant brand in a given market.

Accepted Answer

A) True 
 B)False

Question 7

There are many options available to consumers when it comes to breakfast cereals.So,if Kellogg's significantly increases the price of Rice Krispies,consumers are more apt to buy alternate cereals instead.This illustrates which concept?

Accepted Answer

A)   the income effect
B)   the substitution effect
C)   the break-even point
D)   the target return effect
E)   cross-price elasticity

Question 8

Brad always buys and uses Nike brand golf balls.If he finds a Titleist or Callaway ball in the rough,he gives it away.Brand-loyal golfers like Brad allow Nike to charge a higher price and not lose many sales.By building a strong brand,Nike has effectively

Accepted Answer

A)   increased the income effect for its products.
B)   increased the cross-price elasticity for its products.
C)   focused on the competitive parity point for its products.
D)   shifted the golf ball market from a monopoly to pure competition.
E)   reduced the price elasticity of demand for its products.

Question 9

The more substitutes that exist in a market,

Accepted Answer

A)   the lower the price elasticity for each product.
B)   the greater the income elasticity for each product.
C)   the easier it will be to utilize a target profit pricing strategy.
D)   the more sensitive consumers will be to changes in the price of a particular product.
E)   the more likely the market will be characterized as an oligopoly.

Question 10

Health clubs often use a low,introductory offer price to get people to join their club.These low prices represent a _______ pricing strategy.

Accepted Answer

A)   maximizing profits
B)   target profit
C)   target return
D)   status quo
E)   sales orientation

Question 11

What methods might a firm use when pricing based on a profit orientation and how do they differ?

Accepted Answer

A firm may implement a profit orientatio...

Question 12

In general,prices should not be based on costs because

Accepted Answer

A)   consumers are cost-conscious.
B)   producers rarely know what their costs are.
C)   consumers make their purchase decisions based on perceived value.
D)   producers need to avoid creating a cost competitive parity debate.
E)   customers are always right.

Question 13

Julia's is an upscale women's clothing store.Prices are based on customers' beliefs about the value of the clothing.The store focuses on a limited target market and provides excellent customer service.Julia's is using a _______ pricing strategy.

Accepted Answer

A)   customer-oriented
B)   target profit
C)   target return
D)   status quo
E)   maximizing profits

Question 14

Naomi tells her sales representatives the goal is to generate at least a 20 percent return on investment for all of the industrial building supplies they sell.Naomi is using a _______ pricing strategy.

Accepted Answer

A)   sales orientation
B)   target profit
C)   target return
D)   status quo
E)   competitive parity

Question 15

Dynamic pricing is also referred to as individualized pricing.

Accepted Answer

A) True 
 B)False

Question 16

What five components should be taken into consideration when a company is developing its pricing objectives?

Accepted Answer

The five Cs of pricing that should be ta...

Question 17

A demand curve shows the relationship between _______ in a period of time.

Accepted Answer

A)   income and demand
B)   price and costs
C)   price and elasticity
D)   profit and price
E)   price and demand

Question 18

Dynamic pricing is also referred to as _______ pricing.

Accepted Answer

A)   complementary
B)   substitution
C)   break-even
D)   target return
E)   individualized

Question 19

What situation is occurring if a 1 percent decrease in price results in more than a 1 percent increase in quantity demand?

Accepted Answer

A)   Demand is cross-price elastic.
B)   Demand is price inelastic.
C)   Demand is price elastic.
D)   Demand maintains the status quo.
E)   Demand results in the income effect.

Question 20

Many years ago Honda's Accord and Ford's Taurus were the two top-selling cars in the United States.As the year was coming to an end,Ford cut the price of the Taurus,hoping to outsell the Accord and allow Ford to claim that "Taurus is the best-selling car in America." Ford was using a _______ pricing strategy.

Accepted Answer

A)   maximizing profits
B)   target profit
C)   sales orientation
D)   status quo
E)   target return

Exam 14: Pricing Concepts for Establishing Value

Brad always buys and uses Nike brand golf balls.If he finds a Titleist or Callaway ball in the rough,he gives it away.Brand-loyal golfers like Brad allow Nike to charge a higher price and not lose many sales.By building a strong brand,Nike has effectively

Correct Answer
verified

Developing a good pricing strategy is essential to the financial well-being of a firm.Even though a firm has an excellent strategy,what are continuing threats to the strategy?

Correct Answer
verified
Economic conditions,changes in...
View Answer

A "no haggle" pricing policy is a type of _____ pricing strategy.

Correct Answer
verified

_______ measures consumers' sensitivity to price changes.

Correct Answer
verified

Dynamic pricing is also referred to as individualized pricing.

Correct Answer
verified

What five components should be taken into consideration when a company is developing its pricing objectives?

Correct Answer
verified
The five Cs of pricing that should be ta...
View Answer

Rarely is the lowest-price product offering the dominant brand in a given market.

Correct Answer
verified

What methods might a firm use when pricing based on a profit orientation and how do they differ?

Correct Answer
verified
A firm may implement a profit orientatio...
View Answer

Julia's is an upscale women's clothing store.Prices are based on customers' beliefs about the value of the clothing.The store focuses on a limited target market and provides excellent customer service.Julia's is using a _______ pricing strategy.

Correct Answer
verified

What situation is occurring if a 1 percent decrease in price results in more than a 1 percent increase in quantity demand?

Correct Answer
verified

A demand curve shows the relationship between _______ in a period of time.

Correct Answer
verified

Correct Answer
verified

There are many options available to consumers when it comes to breakfast cereals.So,if Kellogg's significantly increases the price of Rice Krispies,consumers are more apt to buy alternate cereals instead.This illustrates which concept?

Correct Answer
verified

Correct Answer
verified
The full sacrifice of taking t...
View Answer

Dynamic pricing is also referred to as _______ pricing.

Correct Answer
verified

In general,prices should not be based on costs because

Correct Answer
verified

The more substitutes that exist in a market,

Correct Answer
verified

A customer orientation toward pricing implicitly invokes the concept of

Correct Answer
verified

Naomi tells her sales representatives the goal is to generate at least a 20 percent return on investment for all of the industrial building supplies they sell.Naomi is using a _______ pricing strategy.

Correct Answer
verified

Health clubs often use a low,introductory offer price to get people to join their club.These low prices represent a _______ pricing strategy.

Correct Answer
verified

Exam 14: Pricing Concepts for Establishing Value

Brad always buys and uses Nike brand golf balls.If he finds a Titleist or Callaway ball in the rough,he gives it away.Brand-loyal golfers like Brad allow Nike to charge a higher price and not lose many sales.By building a strong brand,Nike has effectively

Correct AnswerverifiedShow Answer

Developing a good pricing strategy is essential to the financial well-being of a firm.Even though a firm has an excellent strategy,what are continuing threats to the strategy?

Correct AnswerverifiedEconomic conditions,changes in...View AnswerShow Answer

A "no haggle" pricing policy is a type of _____ pricing strategy.

Correct AnswerverifiedShow Answer

_______ measures consumers' sensitivity to price changes.

Correct AnswerverifiedShow Answer

Dynamic pricing is also referred to as individualized pricing.

Correct AnswerverifiedShow Answer

What five components should be taken into consideration when a company is developing its pricing objectives?

Correct AnswerverifiedThe five Cs of pricing that should be ta...View AnswerShow Answer

Rarely is the lowest-price product offering the dominant brand in a given market.

Correct AnswerverifiedShow Answer

What methods might a firm use when pricing based on a profit orientation and how do they differ?

Correct AnswerverifiedA firm may implement a profit orientatio...View AnswerShow Answer

Julia's is an upscale women's clothing store.Prices are based on customers' beliefs about the value of the clothing.The store focuses on a limited target market and provides excellent customer service.Julia's is using a _______ pricing strategy.

Correct AnswerverifiedShow Answer

What situation is occurring if a 1 percent decrease in price results in more than a 1 percent increase in quantity demand?

Correct AnswerverifiedShow Answer

A demand curve shows the relationship between _______ in a period of time.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

There are many options available to consumers when it comes to breakfast cereals.So,if Kellogg's significantly increases the price of Rice Krispies,consumers are more apt to buy alternate cereals instead.This illustrates which concept?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe full sacrifice of taking t...View AnswerShow Answer

Dynamic pricing is also referred to as _______ pricing.

Correct AnswerverifiedShow Answer

In general,prices should not be based on costs because

Correct AnswerverifiedShow Answer

The more substitutes that exist in a market,

Correct AnswerverifiedShow Answer

A customer orientation toward pricing implicitly invokes the concept of

Correct AnswerverifiedShow Answer

Naomi tells her sales representatives the goal is to generate at least a 20 percent return on investment for all of the industrial building supplies they sell.Naomi is using a _______ pricing strategy.

Correct AnswerverifiedShow Answer

Health clubs often use a low,introductory offer price to get people to join their club.These low prices represent a _______ pricing strategy.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Economic conditions,changes in...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The five Cs of pricing that should be ta...
View Answer

Correct Answer
verified

Correct Answer
verified
A firm may implement a profit orientatio...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The full sacrifice of taking t...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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