Question 1

When Amazon introduced the Kindle Fire tablet device at $199 while Apple was selling the lowest price iPad for $499, Amazon was using a __________ pricing strategy.

Accepted Answer

A)  skimming
B)  target
C)  bundle
D)  penetration
E)  loss-leaderF) A) and B)
G) B) and E)

Question 2

-Figure 11-2 above represents the four approaches to selecting an appropriate price level. Box B includes standard markup and cost-plus so it represents which approach?

Accepted Answer

A)  demand-oriented approach
B)  profit-oriented approach
C)  competition-oriented approach
D)  results-oriented approach
E)  cost-oriented approachF) B) and E)
G) C) and D)

Question 3

Forever Quilting is a small company that makes quilting kits priced at $120. The costs of the materials that go into each kit total $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising, and $4,500 for the monthly salary of its owner. Forever Quilting's unit variable cost for its kits is

Accepted Answer

A)  $5.
B)  $45.
C)  $50.
D)  $120.
E)  $170.F) A) and B)
G) B) and E)

Question 4

While the demand factors of consumer tastes and price and availability of similar products determine what consumers want to buy, consumer income determines

Accepted Answer

A)  where they buy.
B)  the degree of brand loyalty.
C)  the degree of repeat buys.
D)  what they can buy.
E)  their desire to buy.F) A) and C)
G) C) and E)

Question 5

Calculate a firm's total revenue (TR)  using the following information: the unit price (P)  for a product is $40; the quantity sold (Q)  is 2,000; the fixed cost (FC)  is $50,000; and the variable cost (VC)  is $20,000.

Accepted Answer

A)  $10,000
B)  $50,000
C)  $110,000
D)  $150,000
E)  cannot be determined with the information providedF) C) and D)
G) All of the above

Question 6

Rather than billing clients by the hour, some lawyers and their clients agree on a fixed fee based on expected costs plus an agreed upon level of profit for the law firm. Which pricing approach are they using?

Accepted Answer

A)  target pricing
B)  cost-plus pricing
C)  customary pricing
D)  experience curve pricing
E)  bundle pricingF) A) and B)
G) A) and C)

Question 7

Demand factors refer to

Accepted Answer

A)  the number of consumers who can afford to purchase a product or service.
B)  the price that should be charged for a given product.
C)  consumers' willingness and ability to pay for products and services.
D)  the number of consumers who want to purchase a product.
E)  the number of consumers who can purchase a product.F) A) and E)
G) B) and C)

Question 8

Describe a profit objective used by many Japanese manufacturing firms.

Accepted Answer

Managing for long-run profits is a prici...

Question 9

A penetration pricing policy is most likely to be effective when

Accepted Answer

A)  lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost.
B)  many segments of the market are price sensitive.
C)  the high initial price will not attract competitors.
D)  customers interpret the high price as signifying high quality.
E)  enough prospective customers are willing to buy immediately at the high initial price to make these sales profitableF) All of the above
G) A) and B)

Question 10

Odd-even pricing is considered to be a __________ approach to pricing.

Accepted Answer

A)  cost-oriented
B)  profit-oriented
C)  demand-oriented
D)  competition-oriented
E)  service-orientedF) A) and B)
G) A) and C)

Question 11

If the CEO of the Clorox Company were to say, "We want to control 60 percent of the bleach market within the next five years," he would have set a __________ pricing objective.

Accepted Answer

A)  profit
B)  sales
C)  unit volume
D)  market share
E)  social responsibilityF) All of the above
G) None of the above

Question 12

With a cost-oriented pricing strategy, a price setter stresses the __________ side of the pricing problem and the price is set by looking at __________.

Accepted Answer

A)  demand; revenue
B)  cost; consumer tastes
C)  production and marketing; profit
D)  demand; target sales
E)  cost; production and marketing expensesF) C) and D)
G) B) and D)

Question 13

The key to setting a final price for a product is finding an approximate price level to use as a reasonable starting point. Four common approaches to selecting an approximate price level are: (1)  demand-oriented; (2)  __________; (3)  profit-oriented; and (4)  competition-oriented approaches.

Accepted Answer

A)  cost-oriented
B)  cause-oriented
C)  revenue-oriented
D)  stakeholder-oriented
E)  distribution-orientedF) B) and D)
G) C) and D)

Question 14

The break-even point (BEP)  = [Fixed cost ÷ (__________ - Unit variable cost) ].

Accepted Answer

A)  Total cost
B)  Total expense
C)  Fixed cost
D)  Unit variable cost
E)  Unit priceF) A) and D)
G) A) and E)

Question 15

A company that manages apartments decides to buy 15 new dishwashers at a list price of $550 each as replacements for a small apartment complex it owns. Because the company is buying more than 10 dishwashers, it is eligible for a $150-per-unit quantity discount. Financing charges total $20 per unit. The company gets $10 per dishwasher for 15 used trade-ins. What is the final price the company will pay for EACH dishwasher?

Accepted Answer

A)  $390
B)  $400
C)  $410
D)  $430
E)  $730F) B) and E)
G) A) and B)

Question 16

1, the quantity demanded A) increases from 2 to 3 million units per year. B) decreases from 3 to 2 million units per year. C) stays the same. D) increases from 6 to 8 million units per year. E) decreases from 8 to 6 million units per year." class="answers-bank-image d-inline" rel="preload" >
-Figure 11-3A above shows that when the price for Red Baron frozen cheese pizzas moves from $8 to $6 per unit along the demand curve D1, the quantity demanded

Accepted Answer

A)  increases from 2 to 3 million units per year.
B)  decreases from 3 to 2 million units per year.
C)  stays the same.
D)  increases from 6 to 8 million units per year.
E)  decreases from 8 to 6 million units per year.F) All of the above
G) A) and E)

Question 17

1 to D2 shown in Figure 11-3B above? A) The firm increased its prices and consumers perceived the value of the product to be greater. B) There were fewer product substitutes available in the marketplace. C) Competitors in the market raised their prices. D) A recession occurred that raised consumers' incomes. E) The firm's price remained the same but changes occurred in consumer tastes." class="answers-bank-image d-inline" rel="preload" >
-Which of the following statements most likely would account for the shift in the demand curve from D1 to D2 shown in Figure 11-3B above?

Accepted Answer

A)  The firm increased its prices and consumers perceived the value of the product to be greater.
B)  There were fewer product substitutes available in the marketplace.
C)  Competitors in the market raised their prices.
D)  A recession occurred that raised consumers' incomes.
E)  The firm's price remained the same but changes occurred in consumer tastes.F) A) and E)
G) B) and E)

Question 18

With a __________ pricing strategy, a price setter stresses the __________ side of the pricing problem.

Accepted Answer

A)  demand-oriented; cost
B)  supply-oriented; target ROI
C)  competition-oriented; marketing channel
D)  cost-oriented; cost
E)  profit-oriented; customer preferencesF) B) and E)
G) A) and C)

Question 19

Four pricing practices are closely scrutinized because of potential unethical or illegal actions. They include: (1)  price fixing; (2)  price discrimination; (3)  deceptive pricing; and (4)  __________.

Accepted Answer

A)  predatory pricing
B)  price discounting
C)  lateral price fixing
D)  regional rollbacks
E)  delayed payment penaltiesF) A) and C)
G) A) and E)

Question 20

Which of the following is a demand-oriented approach to pricing?

Accepted Answer

A)  customary pricing
B)  target profit pricing
C)  standard markup pricing
D)  bundle pricing
E)  service-oriented pricingF) A) and B)
G) A) and C)

Exam 11: Pricing Products and Services

-Figure 11-3A above shows that when the price for Red Baron frozen cheese pizzas moves from $8 to $6 per unit along the demand curve D₁, the quantity demanded

Correct Answer
verified

If the CEO of the Clorox Company were to say, "We want to control 60 percent of the bleach market within the next five years," he would have set a __________ pricing objective.

Correct Answer
verified

The break-even point (BEP) = [Fixed cost ÷ (__________ - Unit variable cost) ].

Correct Answer
verified

Calculate a firm's total revenue (TR) using the following information: the unit price (P) for a product is $40; the quantity sold (Q) is 2,000; the fixed cost (FC) is $50,000; and the variable cost (VC) is $20,000.

Correct Answer
verified

Odd-even pricing is considered to be a __________ approach to pricing.

Correct Answer
verified

Correct Answer
verified

Four pricing practices are closely scrutinized because of potential unethical or illegal actions. They include: (1) price fixing; (2) price discrimination; (3) deceptive pricing; and (4) __________.

Correct Answer
verified

-Figure 11-2 above represents the four approaches to selecting an appropriate price level. Box B includes standard markup and cost-plus so it represents which approach?

Correct Answer
verified

While the demand factors of consumer tastes and price and availability of similar products determine what consumers want to buy, consumer income determines

Correct Answer
verified

Which of the following is a demand-oriented approach to pricing?

Correct Answer
verified

With a pricing strategy, a price setter stresses the side of the pricing problem.

Correct Answer
verified

Rather than billing clients by the hour, some lawyers and their clients agree on a fixed fee based on expected costs plus an agreed upon level of profit for the law firm. Which pricing approach are they using?

Correct Answer
verified

Describe a profit objective used by many Japanese manufacturing firms.

Correct Answer
verified
Managing for long-run profits is a prici...
View Answer

Correct Answer
verified

A penetration pricing policy is most likely to be effective when

Correct Answer
verified

When Amazon introduced the Kindle Fire tablet device at $199 while Apple was selling the lowest price iPad for $499, Amazon was using a __________ pricing strategy.

Correct Answer
verified

Demand factors refer to

Correct Answer
verified

-Which of the following statements most likely would account for the shift in the demand curve from D₁ to D₂ shown in Figure 11-3B above?

Correct Answer
verified

With a cost-oriented pricing strategy, a price setter stresses the side of the pricing problem and the price is set by looking at .

Correct Answer
verified

The key to setting a final price for a product is finding an approximate price level to use as a reasonable starting point. Four common approaches to selecting an approximate price level are: (1) demand-oriented; (2) __________; (3) profit-oriented; and (4) competition-oriented approaches.

Correct Answer
verified

Exam 11: Pricing Products and Services

-Figure 11-3A above shows that when the price for Red Baron frozen cheese pizzas moves from $8 to $6 per unit along the demand curve D1, the quantity demanded

Correct AnswerverifiedShow Answer

If the CEO of the Clorox Company were to say, "We want to control 60 percent of the bleach market within the next five years," he would have set a __________ pricing objective.

Correct AnswerverifiedShow Answer

The break-even point (BEP) = [Fixed cost ÷ (__________ - Unit variable cost) ].

Correct AnswerverifiedShow Answer

Calculate a firm's total revenue (TR) using the following information: the unit price (P) for a product is $40; the quantity sold (Q) is 2,000; the fixed cost (FC) is $50,000; and the variable cost (VC) is $20,000.

Correct AnswerverifiedShow Answer

Odd-even pricing is considered to be a __________ approach to pricing.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Four pricing practices are closely scrutinized because of potential unethical or illegal actions. They include: (1) price fixing; (2) price discrimination; (3) deceptive pricing; and (4) __________.

Correct AnswerverifiedShow Answer

-Figure 11-2 above represents the four approaches to selecting an appropriate price level. Box B includes standard markup and cost-plus so it represents which approach?

Correct AnswerverifiedShow Answer

While the demand factors of consumer tastes and price and availability of similar products determine what consumers want to buy, consumer income determines

Correct AnswerverifiedShow Answer

Which of the following is a demand-oriented approach to pricing?

Correct AnswerverifiedShow Answer

With a __________ pricing strategy, a price setter stresses the __________ side of the pricing problem.

Correct AnswerverifiedShow Answer

Rather than billing clients by the hour, some lawyers and their clients agree on a fixed fee based on expected costs plus an agreed upon level of profit for the law firm. Which pricing approach are they using?

Correct AnswerverifiedShow Answer

Describe a profit objective used by many Japanese manufacturing firms.

Correct AnswerverifiedManaging for long-run profits is a prici...View AnswerShow Answer

Correct AnswerverifiedShow Answer

A penetration pricing policy is most likely to be effective when

Correct AnswerverifiedShow Answer

When Amazon introduced the Kindle Fire tablet device at $199 while Apple was selling the lowest price iPad for $499, Amazon was using a __________ pricing strategy.

Correct AnswerverifiedShow Answer

Demand factors refer to

Correct AnswerverifiedShow Answer

-Which of the following statements most likely would account for the shift in the demand curve from D1 to D2 shown in Figure 11-3B above?

Correct AnswerverifiedShow Answer

With a cost-oriented pricing strategy, a price setter stresses the __________ side of the pricing problem and the price is set by looking at __________.

Correct AnswerverifiedShow Answer

The key to setting a final price for a product is finding an approximate price level to use as a reasonable starting point. Four common approaches to selecting an approximate price level are: (1) demand-oriented; (2) __________; (3) profit-oriented; and (4) competition-oriented approaches.

Correct AnswerverifiedShow Answer

-Figure 11-3A above shows that when the price for Red Baron frozen cheese pizzas moves from $8 to $6 per unit along the demand curve D₁, the quantity demanded

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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Correct Answer
verified

Correct Answer
verified

With a pricing strategy, a price setter stresses the side of the pricing problem.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Managing for long-run profits is a prici...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

-Which of the following statements most likely would account for the shift in the demand curve from D₁ to D₂ shown in Figure 11-3B above?

Correct Answer
verified

With a cost-oriented pricing strategy, a price setter stresses the side of the pricing problem and the price is set by looking at .

Correct Answer
verified

Correct Answer
verified