Filters
Question type
Study Flashcards

-In Figure 11-3B above, the demand curve shifts from D<sub>1</sub> to D<sub>2</sub>. This most likely represents A) an increase in demand that did not require a change in price but was the result of a change in one or more demand factors. B) an increase in demand that required a decrease in price. C) no change in price and a decrease in demand that results from internal business practice changes. D) no change in demand or price but a greater profit due to economies of scale. E) an decrease in price from $8 to $6 per unit. -In Figure 11-3B above, the demand curve shifts from D1 to D2. This most likely represents


A) an increase in demand that did not require a change in price but was the result of a change in one or more demand factors.
B) an increase in demand that required a decrease in price.
C) no change in price and a decrease in demand that results from internal business practice changes.
D) no change in demand or price but a greater profit due to economies of scale.
E) an decrease in price from $8 to $6 per unit.

F) C) and D)
G) D) and E)

Correct Answer

verifed

verified

In response to Duracell's introduction of the Duracell Ultra battery, Energizer introduced an Advanced Formula battery. But unlike Duracell, Energizer priced its batteries at a low initial price to attract the mass market. In this case, Energizer used


A) penetration pricing.
B) prestige pricing.
C) skimming pricing.
D) price lining.
E) cost-plus fixed-fee pricing.

F) C) and D)
G) A) and E)

Correct Answer

verifed

verified

What are two special adjustments to the list or quoted price?

Correct Answer

verifed

verified

Two special adjustments to the...

View Answer

Which of the following is a typical example of a fixed cost?


A) taxes
B) raw materials
C) sales commissions
D) building rental expense
E) hourly wages

F) A) and D)
G) A) and B)

Correct Answer

verifed

verified

What are the three major steps involved in setting prices?

Correct Answer

verifed

verified

Step 1: Select an approximate price leve...

View Answer

 Brand  Dollar Sales Market Share  Unit Volume Market Share  Red Bull 2010200920102009 Monster 1837%33%33% Rockstar 7171918 Other  Brands 37100%38100%40100%40100%\begin{array} { | l c c c c | } \hline \text { Brand } & { \text { Dollar Sales Market Share } } &&{ \text { Unit Volume Market Share } } \\\hline \text { Red Bull } & \mathbf { 2 0 1 0 } & \mathbf { 2 0 0 9 } & \mathbf { 2 0 1 0 } & \mathbf { 2 0 0 9 } \\\hline \text { Monster } & 18 & 37 \% & 33 \% & 33 \% \\\hline \text { Rockstar } & 7 & 17 & 19 & 18 \\\hline \begin{array} { l } \text { Other } \\\text { Brands }\end{array} & \frac { 37 } { 100 \% } & \frac { 38 } { 100 \% } & \frac { 40 } { 100 \% } & \frac { 40 } { 100 \% } \\\hline\end{array} -As the brand manager for Red Bull, what would you conclude from the information provided in the Price Premium Marketing Dashboard above?


A) Red Bull has a price premium relative to Monster.
B) Rockstar has a price premium relative to Monster.
C) Red Bull engaged in price discounting relative to Monster and Rockstar from 2009 to 2010.
D) Rockstar sold more product than Monster in 2010.
E) In terms of dollar market share, Red Bull has a lower share than the "Other Brands" category.

F) B) and E)
G) C) and D)

Correct Answer

verifed

verified

Price fixing refers to


A) an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor.
B) the practice of charging a very low price for a product with the intent of driving competitors out of business.
C) the practice of charging different prices to different buyers for goods of like grade and quality.
D) a conspiracy among firms to set prices for a product.
E) a seller's requirement that the purchaser of one product also buy another product in the line

F) A) and E)
G) A) and D)

Correct Answer

verifed

verified

When Jeremy bought gas, he noticed the convenience store offered him a 2 percent reduction in price if he paid cash rather than if he used his credit card to pay for his purchase. The convenience store was offering him a


A) trade discount.
B) cash discount.
C) promotional allowance.
D) rebate.
E) functional discount.

F) A) and E)
G) C) and E)

Correct Answer

verifed

verified

Which of the following is an example of a price?


A) college tuition
B) operating costs
C) liquidity
D) value
E) stockholders' equity

F) A) and B)
G) C) and D)

Correct Answer

verifed

verified

Which one of the following statements regarding bundle pricing is most accurate?


A) Bundle pricing is intended to benefit the consumer, not the seller.
B) Bundle pricing is really "bundle packaging" since the price charged is for two or more of the same products that are shrink-wrapped together.
C) Bundle pricing is often associated with a skimming strategy.
D) Bundle pricing often provides a lower total cost to buyers and lower marketing costs to sellers.
E) Bundle pricing is based on the idea that consumers value the individual items more than they value the group contained in the package

F) A) and B)
G) C) and E)

Correct Answer

verifed

verified

When a firm offers a very low price on a product to attract customers to a store, and once in the store, the customer is persuaded to purchase a higher-priced item, the practice is referred to as


A) predatory pricing.
B) deceptive pricing.
C) price discrimination.
D) caveat emptor.
E) bait and switch.

F) B) and D)
G) C) and D)

Correct Answer

verifed

verified

Each month, the owner of a carwash pays $2,500 in rent, $500 in utilities, $750 interest on the business loan, an insurance premium of $200, and $250 on advertising on local bus routes. A full-service carwash is priced at $10.50. Unit variable costs for the carwash are $7.50. At what level of revenue will the carwash break-even?


A) $4,200
B) $10,500
C) $14,700
D) $30,000
E) $39,900

F) B) and E)
G) A) and B)

Correct Answer

verifed

verified

-A shift of the demand curve from D<sub>1</sub> to D<sub>2</sub> in Figure 11-3B above 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. -A shift of the demand curve from D1 to D2 in Figure 11-3B above 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.

F) None of the above
G) B) and E)

Correct Answer

verifed

verified

All of the following are examples of pricing constraints EXCEPT:


A) newness of the product.
B) competitors' prices.
C) newness of the product (stage in its life cycle) .
D) social responsibility.
E) demand for the product class, product, or brand.

F) A) and D)
G) A) and C)

Correct Answer

verifed

verified

-Figure 11-6 above depicts a __________. A) Gantt chart B) demand curve C) break-even chart D) ROI analysis E) cross-tabulation -Figure 11-6 above depicts a __________.


A) Gantt chart
B) demand curve
C) break-even chart
D) ROI analysis
E) cross-tabulation

F) A) and E)
G) A) and B)

Correct Answer

verifed

verified

Distinguish between elastic demand and inelastic demand.

Correct Answer

verifed

verified

Elastic demand exists when a small perce...

View Answer

Target return-on-sales pricing refers to


A) adjusting the price of a product so it is within 10% of its largest competitor.
B) setting the price of a line of products at a number of different price points.
C) adding a fixed percentage to the cost of all items in a specific product class.
D) setting prices to achieve a profit that is a specified percentage of the sales volume.
E) setting a price based on a specific annual dollar target profit volume

F) All of the above
G) B) and D)

Correct Answer

verifed

verified

Marketing managers often use break-even analysis to analyze the relationship between total revenue and total cost to determine profitability at various levels of output. What is the break-even formula? Use the formula to calculate how many DVD players a dealer must sell if her fixed costs are $100,000, unit variable costs are $150, and the selling price is $200.

Correct Answer

verifed

verified

The break-even point (BEP) is the quanti...

View Answer

Companies use a price premium to assess whether their products and brands are priced above, at, or below the market. The price premium is the percentage by which the actual price charged for a specific brand exceeds or falls short of a benchmark established for a similar product or basket of products. This price premium equals:


A) unit volume market share for a brand divided by dollar sales market share for a brand, minus 1.
B) dollar sales market share for a brand divided by unit volume market share for a brand, plus 1.
C) dollar sales market share for a brand divided by unit volume market share for a brand, minus 1.
D) dollar sales market share for a brand, divided by unit volume market share for a brand, plus 1.
E) dollar sales market share for a brand, divided by unit volume market share for a brand, minus the number of competitors against which a brand is being measured.

F) D) and E)
G) A) and C)

Correct Answer

verifed

verified

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


A) management's commitment to the product relative to other products in the line
B) curiosity or interest potential consumers expressed during market testing
C) customer demand for it
D) the firm's promotional budget
E) distribution requirements

F) B) and C)
G) D) and E)

Correct Answer

verifed

verified

Showing 381 - 400 of 407

Related Exams

Exam 1

Creating Customer Relationships and Value Through Marketing

244 Questions

Exam 2

Developing Successful Organizational and Marketing Strategies

341 Questions

Exam 3

Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

379 Questions

Exam 4

Understanding Consumer Behavior

380 Questions

Exam 5

Understanding Organizations As Customers

249 Questions

Exam 6

Understanding and Reaching Global Consumers and Markets

239 Questions

Exam 7

Marketing Research: From Customer Insights to Actions

287 Questions

Exam 8

Market Segmentation, Targeting, and Positioning

232 Questions

Exam 9

Developing New Products and Services

388 Questions

Exam 10

Managing Successful Products, Services, and Brands

408 Questions

Exam 12

Managing Marketing Channels and Supply Chains

324 Questions

Exam 13

Retailing and Wholesaling

347 Questions

Exam 14

Integrated Marketing Communications and Direct Marketing

302 Questions

Exam 15

Advertising, Sales Promotion, and Public Relations

369 Questions

Exam 16

Using Social Media to Connect With Consumers

180 Questions

Exam 17

Personal Selling and Sales Management

302 Questions

Exam 18

Implementing Interactive and Multichannel Marketing

262 Questions

Show Answer