Question 1

Explain the pricing strategy being implemented when a retail store places the store's generic brand items next to the national brand items when the national brand items have a slightly higher price than the generic brand item.Why would a retailer do this?

Accepted Answer

The store is relying on the assimilation...

Question 2

Which of the following statements about price is true?

Accepted Answer

A)  Pricing is the least important marketing mix element.
B)  Price is always a monetary value.
C)  Price can mean exchange of nonmonetary goods or services.
D)  Most consumers believe price has little influence on their purchase decisions.
E)  Pricing is unaffected by changes in the business cycle.F) B) and C)
G) A) and D)

Question 3

Which of the following is a reason that a marketer would choose a penetration pricing strategy?

Accepted Answer

A)  to ensure the company has the ability to increase prices once demand decreases
B)  to focus on the rapid achievement of profit objectives
C)  to appeal to different consumer segments with different levels of price sensitivity
D)  to create markets for highly technical products
E)  to discourage competition from entering the marketF) A) and D)
G) A) and C)

Question 4

What are the two types of price fixing? Briefly define each.

Accepted Answer

Horizontal price fixing occurs when comp...

Question 5

________ do not vary with the number of units produced.

Accepted Answer

A)  Liquidity costs
B)  Fixed costs
C)  Variable costs
D)  Marginal costs
E)  Everyday costsF) A) and B)
G) B) and E)

Question 6

A number of top fashion-modeling agencies were charged with ________ because they were jointly determining what commissions they would charge for models.

Accepted Answer

A)  prestige pricing
B)  horizontal price lining
C)  vertical price lining
D)  vertical price-fixing
E)  horizontal price-fixingF) A) and D)
G) A) and E)

Question 7

Break-even analysis is used to examine the relationship between ________.

Accepted Answer

A)  fixed costs and variable costs
B)  costs and contributions
C)  costs and price
D)  demand and costs
E)  demand and profitsF) A) and C)
G) C) and D)

Question 8

Demand would most likely be inelastic for which of the following?

Accepted Answer

A)  lamb chops and t-bone steaks
B)  gourmet cheese
C)  symphony tickets
D)  luxury watches
E)  basic necessitiesF) A) and D)
G) B) and E)

Question 9

Which of the following is true about the demand curve?

Accepted Answer

A)  It is used to illustrate the effect of price on the quantity supplied.
B)  It is always graphically depicted by a straight line.
C)  It shows the quantity of product customers will buy in a market during a period of time even if other factors change.
D)  It usually slopes upward and to the right.
E)  It shows the relationship between product demand and product price.F) C) and D)
G) A) and B)

Question 10

All 50 U.S.states consider loss leader practices to be wrong and have passed legislation called "unfair sales acts," also called "unfair trade practices acts."

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a set price or price range in consumers' minds that they refer to in evaluating a product's price?

Accepted Answer

A)  dynamic price
B)  internal reference price
C)  suggested retail price
D)  captive price
E)  value priceF) A) and D)
G) C) and D)

Question 12

Surge pricing occurs when a company raises the price of its product when demand for the product goes up and lowers the price of its product when demand goes down.

Accepted Answer

A) True 
 B)False

Question 13

Enforcing laws against ________ is complicated because such practices are similar to the legal practice of "trading up."

Accepted Answer

A)  price bundling
B)  captive pricing
C)  bait-and-switch tactics
D)  prestige pricing
E)  placebo effect pricingF) A) and C)
G) None of the above

Question 14

Many people rely on a prescription drug to control their cholesterol.An increase in the price of the drug would have little effect on the quantity demanded because there are no substitutes for the drug and because people who take it have no choice but to continue taking it if they wish to stay healthy.The demand for the cholesterol drug is ________.

Accepted Answer

A)  elastic
B)  inelastic
C)  cross-elastic
D)  supply-driven
E)  asymmetricalF) B) and E)
G) B) and C)

Question 15

Which of the following is an example of a variable cost for an amusement park?

Accepted Answer

A)  salary of the park manager
B)  food cart supplies
C)  liability insurance
D)  interest on the property's mortgage
E)  property taxesF) B) and E)
G) D) and E)

Question 16

A new product carries a low price for a limited period of time to attract customers in what type of pricing strategy?

Accepted Answer

A)  price skimming
B)  trial pricing
C)  penetration pricing
D)  specialty pricing
E)  price bundlingF) B) and D)
G) None of the above

Question 17

Mark believes he should pay more than $49.95 for a motel room;this price is his internal reference price.

Accepted Answer

A) True 
 B)False

Question 18

________ refers to the sale of two or more goods or services as a single package for one price.

Accepted Answer

A)  Two-part pricing
B)  Captive pricing
C)  Price bundling
D)  List pricing
E)  Everyday low pricingF) A) and B)
G) B) and D)

Question 19

When the seller takes on part or all of the cost of shipping,it is called ________.

Accepted Answer

A)  freight absorption
B)  F) O.B.factory
C)  F) O.B.origin
D)  uniform delivered
E)  basing-pointF) C) and D)
G) A) and D)

Question 20

Which of the following is an advantage of using cost-based pricing methods?

Accepted Answer

A)  They consider external factors such as competition.
B)  They include consideration of the effects of demand.
C)  They are relatively simple to calculate.
D)  They make accurate cost estimating a simple process.
E)  They take the product life cycle into consideration.F) A) and B)
G) A) and C)

Exam 10: Price: What Is the Value Proposition Worth

Enforcing laws against ________ is complicated because such practices are similar to the legal practice of "trading up."

Correct Answer
verified

Demand would most likely be inelastic for which of the following?

Correct Answer
verified

All 50 U.S.states consider loss leader practices to be wrong and have passed legislation called "unfair sales acts," also called "unfair trade practices acts."

Correct Answer
verified

A number of top fashion-modeling agencies were charged with ________ because they were jointly determining what commissions they would charge for models.

Correct Answer
verified

Surge pricing occurs when a company raises the price of its product when demand for the product goes up and lowers the price of its product when demand goes down.

Correct Answer
verified

Which of the following is a reason that a marketer would choose a penetration pricing strategy?

Correct Answer
verified

A new product carries a low price for a limited period of time to attract customers in what type of pricing strategy?

Correct Answer
verified

Which of the following is an advantage of using cost-based pricing methods?

Correct Answer
verified

________ refers to the sale of two or more goods or services as a single package for one price.

Correct Answer
verified

Which of the following statements about price is true?

Correct Answer
verified

Which of the following is an example of a variable cost for an amusement park?

Correct Answer
verified

Explain the pricing strategy being implemented when a retail store places the store's generic brand items next to the national brand items when the national brand items have a slightly higher price than the generic brand item.Why would a retailer do this?

Correct Answer
verified
The store is relying on the assimilation...
View Answer

Mark believes he should pay more than $49.95 for a motel room;this price is his internal reference price.

Correct Answer
verified

When the seller takes on part or all of the cost of shipping,it is called ________.

Correct Answer
verified

Which of the following is a set price or price range in consumers' minds that they refer to in evaluating a product's price?

Correct Answer
verified

Which of the following is true about the demand curve?

Correct Answer
verified

What are the two types of price fixing? Briefly define each.

Correct Answer
verified
Horizontal price fixing occurs when comp...
View Answer

Break-even analysis is used to examine the relationship between ________.

Correct Answer
verified

________ do not vary with the number of units produced.

Correct Answer
verified

Correct Answer
verified

Exam 10: Price: What Is the Value Proposition Worth

Enforcing laws against ________ is complicated because such practices are similar to the legal practice of "trading up."

Correct AnswerverifiedShow Answer

Demand would most likely be inelastic for which of the following?

Correct AnswerverifiedShow Answer

All 50 U.S.states consider loss leader practices to be wrong and have passed legislation called "unfair sales acts," also called "unfair trade practices acts."

Correct AnswerverifiedShow Answer

A number of top fashion-modeling agencies were charged with ________ because they were jointly determining what commissions they would charge for models.

Correct AnswerverifiedShow Answer

Surge pricing occurs when a company raises the price of its product when demand for the product goes up and lowers the price of its product when demand goes down.

Correct AnswerverifiedShow Answer

Which of the following is a reason that a marketer would choose a penetration pricing strategy?

Correct AnswerverifiedShow Answer

A new product carries a low price for a limited period of time to attract customers in what type of pricing strategy?

Correct AnswerverifiedShow Answer

Which of the following is an advantage of using cost-based pricing methods?

Correct AnswerverifiedShow Answer

________ refers to the sale of two or more goods or services as a single package for one price.

Correct AnswerverifiedShow Answer

Which of the following statements about price is true?

Correct AnswerverifiedShow Answer

Which of the following is an example of a variable cost for an amusement park?

Correct AnswerverifiedShow Answer

Explain the pricing strategy being implemented when a retail store places the store's generic brand items next to the national brand items when the national brand items have a slightly higher price than the generic brand item.Why would a retailer do this?

Correct AnswerverifiedThe store is relying on the assimilation...View AnswerShow Answer

Mark believes he should pay more than $49.95 for a motel room;this price is his internal reference price.

Correct AnswerverifiedShow Answer

When the seller takes on part or all of the cost of shipping,it is called ________.

Correct AnswerverifiedShow Answer

Which of the following is a set price or price range in consumers' minds that they refer to in evaluating a product's price?

Correct AnswerverifiedShow Answer

Which of the following is true about the demand curve?

Correct AnswerverifiedShow Answer

What are the two types of price fixing? Briefly define each.

Correct AnswerverifiedHorizontal price fixing occurs when comp...View AnswerShow Answer

Break-even analysis is used to examine the relationship between ________.

Correct AnswerverifiedShow Answer

________ do not vary with the number of units produced.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow 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
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Correct Answer
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The store is relying on the assimilation...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Horizontal price fixing occurs when comp...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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