Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

A gray market employs irregular but not necessarily illegal methods of distributing products.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Tess is the marketing manager for a fast food restaurant chain. She uses a target return pricing strategy because her firm's primary objective is to

Accepted Answer

A)   increase profits.
B)   increase sales.
C)   decrease competition.
D)   build customer satisfaction.
E)   broaden the product line.

Question 5

Brandon is conducting an experiment, charging different prices for the same products at different stores and measuring sales. With this information, he will construct a demand curve. How can Brandon use this information?

Accepted Answer

He can use this information to estimate ...

Question 6

Proving that a company has engaged in the deceptive bait and switch practice is easy.

Accepted Answer

A) True 
 B)False

Question 7

Price is often the most challenging of the four Ps to manage, partly because it is often ______________ in developing marketing strategies.

Accepted Answer

A)   the least important aspect
B)   treated as an afterthought
C)   calculated by senior consultants
D)   difficult to calculate markups
E)   the subject of cross-shopping differentiation

Question 8

If a 1 percent decrease in price results in more than a 1 percent increase in quantity demand, demand is

Accepted Answer

A)   cross-price elastic.
B)   price inelastic.
C)   price elastic.
D)   status quo elasticity.
E)   derived demand inelastic.

Question 9

Fenton has always used standard markups to determine the prices for his clothing products. You are advising him to change his pricing strategy. What advice would you give Fenton?

Accepted Answer

You would likely advise him to...

Question 10

A strategy of setting prices based on how customers develop their perceptions of value can often be the most effective pricing strategy, especially if the strategy

Accepted Answer

A)   leads the marketer to being the low-cost seller.
B)   is supported by consistent advertising and distribution strategies.
C)   challenges consumers to discard their perceptions of value.
D)   is consistent with a competitive target return strategy.
E)   is measured against the competition.

Question 11

Which of the following is most likely to be characterized by pure competition in the United States?

Accepted Answer

A)   soybeans
B)   cereal
C)   soft drinks
D)   computer operating systems
E)   fast food restaurants

Question 12

Because there are many firms in monopolistic competition markets,

Accepted Answer

A)   everyone is a price taker.
B)   producers do not have to consider the reactions of rival firms.
C)   government often encourages consolidation to reduce the number of competitors.
D)   price controls may be implemented.
E)   the many competitors will focus on product differentiation.

Question 13

Which of the following is NOT one of the five Cs of pricing?

Accepted Answer

A)   customers
B)   channel members
C)   cost
D)   collaboration
E)   company objectives

Question 14

Karen initially charged $80 for an hour-long massage and averaged 20 clients per week. When she raised her price to $100, the number of massages decreased to 15 per week. What is the price elasticity of demand for her service?

Accepted Answer

Price elasticity of demand is the percen...

Question 15

If a firm in a purely competitive market can differentiate its product or service, it becomes part of a _______________ market.

Accepted Answer

A)   pure competition
B)   oligopolistic competition
C)   monopolistic competition
D)   monopoly
E)   duopoly

Question 16

Historically, prices were

Accepted Answer

A)   the center of attention in almost all marketing strategies.
B)   analyzed and changed constantly.
C)   calculated to minimize contribution per unit.
D)   allowed to vary seasonally as cross-shopping tendencies fluctuated.
E)   rarely changed except in response to radical shifts in market conditions.

Question 17

When a retail store rarely sells deeply discounted or sale products, it is known as everyday low pricing.

Accepted Answer

A) True 
 B)False

Question 18

Many years ago Honda's Accord and Ford's Taurus were the top two 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

Question 19

Because consumers are generally more sensitive to price increases than to price decreases, it is easier to lose current customers with a price increase than it is to gain new customers with a price decrease.

Accepted Answer

A) True 
 B)False

Question 20

Price skimming focuses on selling products to __________ and __________ in the consumer adoption process model.

Accepted Answer

A)   innovators; early adopters
B)   early adopters; early majority
C)   early majority; late majority
D)   late majority; laggards
E)   laggards; innovators

Exam 14: Pricing Concepts for Establishing Value

When a retail store rarely sells deeply discounted or sale products, it is known as everyday low pricing.

Correct Answer
verified

Fenton has always used standard markups to determine the prices for his clothing products. You are advising him to change his pricing strategy. What advice would you give Fenton?

Correct Answer
verified
You would likely advise him to...
View Answer

Price skimming focuses on selling products to and in the consumer adoption process model.

Correct Answer
verified

Historically, prices were

Correct Answer
verified

Proving that a company has engaged in the deceptive bait and switch practice is easy.

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Because there are many firms in monopolistic competition markets,

Correct Answer
verified

Which of the following is most likely to be characterized by pure competition in the United States?

Correct Answer
verified

Because consumers are generally more sensitive to price increases than to price decreases, it is easier to lose current customers with a price increase than it is to gain new customers with a price decrease.

Correct Answer
verified

Tess is the marketing manager for a fast food restaurant chain. She uses a target return pricing strategy because her firm's primary objective is to

Correct Answer
verified

A gray market employs irregular but not necessarily illegal methods of distributing products.

Correct Answer
verified

If a firm in a purely competitive market can differentiate its product or service, it becomes part of a _______________ market.

Correct Answer
verified

Karen initially charged $80 for an hour-long massage and averaged 20 clients per week. When she raised her price to $100, the number of massages decreased to 15 per week. What is the price elasticity of demand for her service?

Correct Answer
verified
Price elasticity of demand is the percen...
View Answer

Brandon is conducting an experiment, charging different prices for the same products at different stores and measuring sales. With this information, he will construct a demand curve. How can Brandon use this information?

Correct Answer
verified
He can use this information to estimate ...
View Answer

Price is often the most challenging of the four Ps to manage, partly because it is often ______________ in developing marketing strategies.

Correct Answer
verified

A strategy of setting prices based on how customers develop their perceptions of value can often be the most effective pricing strategy, especially if the strategy

Correct Answer
verified

Which of the following is NOT one of the five Cs of pricing?

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

If a 1 percent decrease in price results in more than a 1 percent increase in quantity demand, demand is

Correct Answer
verified

Exam 14: Pricing Concepts for Establishing Value

When a retail store rarely sells deeply discounted or sale products, it is known as everyday low pricing.

Correct AnswerverifiedShow Answer

Fenton has always used standard markups to determine the prices for his clothing products. You are advising him to change his pricing strategy. What advice would you give Fenton?

Correct AnswerverifiedYou would likely advise him to...View AnswerShow Answer

Price skimming focuses on selling products to __________ and __________ in the consumer adoption process model.

Correct AnswerverifiedShow Answer

Historically, prices were

Correct AnswerverifiedShow Answer

Proving that a company has engaged in the deceptive bait and switch practice is easy.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Because there are many firms in monopolistic competition markets,

Correct AnswerverifiedShow Answer

Which of the following is most likely to be characterized by pure competition in the United States?

Correct AnswerverifiedShow Answer

Because consumers are generally more sensitive to price increases than to price decreases, it is easier to lose current customers with a price increase than it is to gain new customers with a price decrease.

Correct AnswerverifiedShow Answer

Tess is the marketing manager for a fast food restaurant chain. She uses a target return pricing strategy because her firm's primary objective is to

Correct AnswerverifiedShow Answer

A gray market employs irregular but not necessarily illegal methods of distributing products.

Correct AnswerverifiedShow Answer

If a firm in a purely competitive market can differentiate its product or service, it becomes part of a _______________ market.

Correct AnswerverifiedShow Answer

Karen initially charged $80 for an hour-long massage and averaged 20 clients per week. When she raised her price to $100, the number of massages decreased to 15 per week. What is the price elasticity of demand for her service?

Correct AnswerverifiedPrice elasticity of demand is the percen...View AnswerShow Answer

Brandon is conducting an experiment, charging different prices for the same products at different stores and measuring sales. With this information, he will construct a demand curve. How can Brandon use this information?

Correct AnswerverifiedHe can use this information to estimate ...View AnswerShow Answer

Price is often the most challenging of the four Ps to manage, partly because it is often ______________ in developing marketing strategies.

Correct AnswerverifiedShow Answer

A strategy of setting prices based on how customers develop their perceptions of value can often be the most effective pricing strategy, especially if the strategy

Correct AnswerverifiedShow Answer

Which of the following is NOT one of the five Cs of pricing?

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

If a 1 percent decrease in price results in more than a 1 percent increase in quantity demand, demand is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
You would likely advise him to...
View Answer

Price skimming focuses on selling products to and in the consumer adoption process model.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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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Correct Answer
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Correct Answer
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Price elasticity of demand is the percen...
View Answer

Correct Answer
verified
He can use this information to estimate ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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