Question 1

Identify and describe the major factors that affect pricing decisions.

Accepted Answer

The answer of Identify and describe the major factors that...

Question 2

At what point does a firm maximize profit?

Accepted Answer

A)  The point at which marginal cost equals marginal revenue
B)  The point at which the firm sells its product at the highest price
C)  The breakeven point plus the adjusted marginal cost
D)  The point at which marginal profits equal marginal revenue
E)  The point at which marginal cost equals marginal profitsF) D) and E)
G) A) and D)

Question 3

Safe Auto advertises its automobile insurance as "minimum coverage for minimum budgets." Safe Auto is engaging in

Accepted Answer

A)  non-price competition.
B)  demand-based pricing.
C)  competitive pricing.
D)  price differentiation.
E)  price competition.F) All of the above
G) B) and E)

Question 4

A concession in price in business markets to achieve a desired goal is called a(n)

Accepted Answer

A)  allowance.
B)  objective-oriented discount.
C)  cash discount.
D)  trade discount.
E)  cumulative discount.F) C) and E)
G) A) and B)

Question 5

What are the components of total cost? Give specific examples.

Accepted Answer

The components of total cost include bot...

Question 6

Price is the most easily adjusted ingredient in the marketing mix.

Accepted Answer

A) True 
 B)False

Question 7

Provisions of the Robinson-Patman Act, as well as those of the ____, limit the use of price differentials.

Accepted Answer

A)  Simpson-Marshall Act
B)  Federal Trade Commission Act
C)  Wheeler-Lea Act
D)  Clayton Act
E)  Sherman Antitrust ActF) B) and D)
G) C) and D)

Question 8

A customer's interpretation and response to a price depends on what the customer receives from a purchase compared to what he or she gives up to make a purchase.

Accepted Answer

A) True 
 B)False

Question 9

The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line. Its basic promotional tool is the discount. These discounts offered to middlemen for performing certain channel activities are referred to as ____ discounts.

Accepted Answer

A)  trade
B)  cumulative
C)  noncumulative
D)  push
E)  intermediaryF) None of the above
G) B) and D)

Question 10

Price is the value that is exchanged for products in a marketing transaction.

Accepted Answer

A) True 
 B)False

Question 11

What does the demand curve for a prestige product look like?

Accepted Answer

A)  It is a straight line where the quantity sold continues to increase as the price of each product increases.
B)  It is a curve where the highest and the lowest prices yield the greatest quantity sold and mid-range prices produce the fewest sales.
C)  It forms a curve where the greatest quantity sold comes at a medium price and the quantities fall as the price increases or decreases.
D)  It forms a straight vertical line because of the prestige of the product, and quantity sold will remain stable regardless of the price.
E)  It slopes from left to right at a very mild slope; that is, as quantity increases, price decreases slowly.F) C) and D)
G) A) and D)

Question 12

One advantage of nonprice competition is that

Accepted Answer

A)  a firm can react quickly to competitive efforts.
B)  market share becomes less important.
C)  a firm can build customer loyalty.
D)  marketing efforts are completely eliminated.
E)  pricing is no longer a factor.F) D) and E)
G) C) and E)

Question 13

Isabella is a product manager for The Container Store, a retailer of plastic bins and other storage containers. Sales have been declining in the past nine months and her management team is pressuring her to compete based on price discounts. However, Isabella is aware of the dangers associated with engaging in price competition. She knows that competitors can also change prices quickly and aggressively, which can result in a(n)  ____ that will be harmful to both companies.

Accepted Answer

A)  reduction in cost
B)  price war
C)  competitive game
D)  industry collapse
E)  advertising battleF) A) and D)
G) C) and D)

Question 14

The ____ prohibits price fixing among firms in an industry.

Accepted Answer

A)  Sherman Antitrust Act
B)  Federal Trade Commission Act
C)  Wheeler-Lea Act
D)  Robinson-Patman Act
E)  Clayton ActF) None of the above
G) B) and D)

Question 15

Profit margins for marketing channel members must be considered when determining the price of a product.

Accepted Answer

A) True 
 B)False

Question 16

Noncumulative discounts are one-time reductions in prices based on the number of units purchased, the dollar value of the order, or the product mix purchased.

Accepted Answer

A) True 
 B)False

Question 17

Reductions for transportation and other costs related to the physical distance between buyer and seller are known as

Accepted Answer

A)  base-point pricing.
B)  freight absorption pricing.
C)  price zoning.
D)  location pricing.
E)  geographic pricing.F) C) and D)
G) C) and E)

Question 18

Marginal analysis involves examining

Accepted Answer

A)  what happens to a firm's costs and revenues when production is changed by one unit.
B)  the extra revenue produced by the sale of one more product.
C)  the extra cost incurred by the production of one more unit.
D)  the difference between marginal revenue and total revenue.
E)  the difference between marginal cost and total cost.F) D) and E)
G) B) and E)

Question 19

The legality of uniform geographic pricing has been challenged, and so its use has been abandoned.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following acts does not directly affect pricing decisions?

Accepted Answer

A)  Sherman Antitrust Act
B)  Federal Trade Commission Act
C)  Wheeler-Lea Act
D)  Clayton Act
E)  Simpson-Marshall ActF) D) and E)
G) A) and E)

Exam 20: Pricing Concepts

Profit margins for marketing channel members must be considered when determining the price of a product.

Correct Answer
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What are the components of total cost? Give specific examples.

Correct Answer
Answered by ExamLex AI
The components of total cost include bot...
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What does the demand curve for a prestige product look like?

Correct Answer
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Identify and describe the major factors that affect pricing decisions.

Correct Answer
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Correct Answer
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Price is the value that is exchanged for products in a marketing transaction.

Correct Answer
verified

Provisions of the Robinson-Patman Act, as well as those of the ____, limit the use of price differentials.

Correct Answer
verified

At what point does a firm maximize profit?

Correct Answer
verified

Reductions for transportation and other costs related to the physical distance between buyer and seller are known as

Correct Answer
verified

A customer's interpretation and response to a price depends on what the customer receives from a purchase compared to what he or she gives up to make a purchase.

Correct Answer
verified

Marginal analysis involves examining

Correct Answer
verified

Price is the most easily adjusted ingredient in the marketing mix.

Correct Answer
verified

A concession in price in business markets to achieve a desired goal is called a(n)

Correct Answer
verified

The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line. Its basic promotional tool is the discount. These discounts offered to middlemen for performing certain channel activities are referred to as ____ discounts.

Correct Answer
verified

Safe Auto advertises its automobile insurance as "minimum coverage for minimum budgets." Safe Auto is engaging in

Correct Answer
verified

Noncumulative discounts are one-time reductions in prices based on the number of units purchased, the dollar value of the order, or the product mix purchased.

Correct Answer
verified

One advantage of nonprice competition is that

Correct Answer
verified

The ____ prohibits price fixing among firms in an industry.

Correct Answer
verified

The legality of uniform geographic pricing has been challenged, and so its use has been abandoned.

Correct Answer
verified

Which of the following acts does not directly affect pricing decisions?

Correct Answer
verified

Exam 20: Pricing Concepts

Profit margins for marketing channel members must be considered when determining the price of a product.

Correct AnswerverifiedShow Answer

What are the components of total cost? Give specific examples.

Correct AnswerAnswered by ExamLex AIThe components of total cost include bot...View AnswerShow Answer

What does the demand curve for a prestige product look like?

Correct AnswerverifiedShow Answer

Identify and describe the major factors that affect pricing decisions.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Price is the value that is exchanged for products in a marketing transaction.

Correct AnswerverifiedShow Answer

Provisions of the Robinson-Patman Act, as well as those of the ____, limit the use of price differentials.

Correct AnswerverifiedShow Answer

At what point does a firm maximize profit?

Correct AnswerverifiedShow Answer

Reductions for transportation and other costs related to the physical distance between buyer and seller are known as

Correct AnswerverifiedShow Answer

A customer's interpretation and response to a price depends on what the customer receives from a purchase compared to what he or she gives up to make a purchase.

Correct AnswerverifiedShow Answer

Marginal analysis involves examining

Correct AnswerverifiedShow Answer

Price is the most easily adjusted ingredient in the marketing mix.

Correct AnswerverifiedShow Answer

A concession in price in business markets to achieve a desired goal is called a(n)

Correct AnswerverifiedShow Answer

The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line. Its basic promotional tool is the discount. These discounts offered to middlemen for performing certain channel activities are referred to as ____ discounts.

Correct AnswerverifiedShow Answer

Safe Auto advertises its automobile insurance as "minimum coverage for minimum budgets." Safe Auto is engaging in

Correct AnswerverifiedShow Answer

Noncumulative discounts are one-time reductions in prices based on the number of units purchased, the dollar value of the order, or the product mix purchased.

Correct AnswerverifiedShow Answer

One advantage of nonprice competition is that

Correct AnswerverifiedShow Answer

The ____ prohibits price fixing among firms in an industry.

Correct AnswerverifiedShow Answer

The legality of uniform geographic pricing has been challenged, and so its use has been abandoned.

Correct AnswerverifiedShow Answer

Which of the following acts does not directly affect pricing decisions?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
Answered by ExamLex AI
The components of total cost include bot...
View Answer

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