Question 1

Taste of the Tropics is a manufacturer of fruit juice products. It recently reduced the amount of its premium juice line from 64-ounce containers to 52-ounce containers but kept the price the same. This is an example of

Accepted Answer

A)  unbundling.
B)  shrinkflation.
C)  dumping.
D)  yield management.
E)  survival pricing.

Question 2

The percentage change in quantity demanded in response to a percentage change in price is referred to as price ________ of demand.

Accepted Answer

The answer of The percentage change in quantity demanded in...

Question 3

Tariffs may raise the price that foreign customers must pay for goods produced in the United States, negatively impacting a U.S. firm's ability to be price competitive in those markets.

Accepted Answer

A) True 
 B)False

Question 4

Priceline.com is a type of "name-your-own-price" ________ site where a consumer submits a bid at the price he or she is willing to pay for a product or service.

Accepted Answer

The answer of Priceline.com is a type of "name-your-own-price" ________...

Question 5

Individuals or groups that buy new or used products for a lower price in a foreign country, import them legally back into the domestic market, and sell them for less than the normal market price are participating in the ________ market.

Accepted Answer

The answer of Individuals or groups that buy new or...

Question 6

The three largest manufacturers of telecommunications wire conspired together so that all three firms would charge the same price for coaxial cables. This is an example of

Accepted Answer

A)  deceptive pricing.
B)  price discrimination.
C)  price fixing.
D)  predatory pricing.
E)  price inflation.

Question 7

A profit maximization strategy is used during the growth and maturity stages of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 8

The international pricing strategy of any U.S. firm must take into account the taxes on imports and exports that foreign countries might place on its goods, otherwise known as ________.

Accepted Answer

The answer of The international pricing strategy of any U.S....

Question 9

The sale of branded products through legal but unauthorized distribution channels is referred to as the

Accepted Answer

A)  gray market.
B)  blue market.
C)  white market.
D)  black market.
E)  red market.

Question 10

Which of the following is not true regarding global pricing?

Accepted Answer

A)  Firms do not encounter any unique challenges when pricing products globally.
B)  Historically, companies have set prices for products sold internationally higher than the same products sold domestically.
C)  Technological advancements have made global pricing more transparent.
D)  Pricing is a critical component of a successful global marketing strategy.
E)  Economic conditions over the past decade have impacted global pricing for products.

Question 11

Consumers will be more price sensitive when

Accepted Answer

A)  the cost of not getting the expected benefits of a purchase is high.
B)  some or all of the purchase price is paid by others.
C)  the price they have to pay is more than they anticipated.
D)  they perceive the price as a gain rather than a forgone loss.
E)  a product's price is within the range that they perceive as fair or reasonable.

Question 12

If a resort wanted to promote visitors to come during its off-peak times, it would most likely choose which pricing tactic?

Accepted Answer

A)  seasonal discounts
B)  prestige pricing
C)  odd pricing
D)  price bundling
E)  price skimming

Question 13

What is marginal revenue?

Accepted Answer

A)  the total change in revenue that results from a small change in product price
B)  a percentage change in price that results from a change in quantity demanded
C)  the change in total revenue that results from producing one additional unit
D)  the change in total revenue that results from selling one additional unit of a product
E)  the total change in revenue that results from a large change in product price

Question 14

________ is/are calculated by multiplying units sold by price, whereas ________ is calculated by subtracting costs from revenue.

Accepted Answer

A)  Costs; profit
B)  Revenue; profit
C)  Profit; revenue
D)  Profit; costs
E)  Revenue; break-even

Question 15

A computer manufacturer that used to sell its computer, monitor, and keyboard for one packaged price now sells each item separately. This is an example of ________.

Accepted Answer

The answer of A computer manufacturer that used to sell...

Question 16

Armando is the owner of a full-service pet grooming business. For the month of October he paid $2,000 in rent, $700 in utilities, $2,950 in salaries, and $50 on advertising. A full service pet grooming costs $25.00. Unit variable costs per grooming are $5.00. How many full-service pet groomings does Armando need to sell to break-even each month?

Accepted Answer

A)  166
B)  200
C)  250
D)  287
E)  191

Question 17

Firms that want to promote an image of superior quality and exclusivity to customers would most likely pursue a _________ pricing strategy.

Accepted Answer

The answer of Firms that want to promote an image...

Question 18

The amount a product sells for above the total cost of the product itself is its ________ ________.

Accepted Answer

The answer of The amount a product sells for above...

Question 19

Which piece of legislation established the Federal Trade Commission, giving it the authority to enforce laws aimed at prohibiting unfair methods of competition?

Accepted Answer

A)  the Federal Trade Commission Act
B)  the Clayton Antitrust Act
C)  the Wheeler-Lea Act
D)  the Sherman Antitrust Act
E)  the Robinson-Patman Act

Question 20

Which statement regarding break-even analysis is true?

Accepted Answer

A)  Break-even analysis does not measure the cost of sales.
B)  Break-even analysis does not measure price sensitivity.
C)  Break-even analysis is an accurate measure of fixed costs.
D)  Break-even analysis reflects how demand may be affected at different price levels.
E)  Break-even analysis is an accurate measure of variable costs.

Exam 11: Pricing

Priceline.com is a type of "name-your-own-price" ________ site where a consumer submits a bid at the price he or she is willing to pay for a product or service.

Correct Answer
verified

Firms that want to promote an image of superior quality and exclusivity to customers would most likely pursue a _________ pricing strategy.

Correct Answer
verified

A computer manufacturer that used to sell its computer, monitor, and keyboard for one packaged price now sells each item separately. This is an example of ________.

Correct Answer
verified

The three largest manufacturers of telecommunications wire conspired together so that all three firms would charge the same price for coaxial cables. This is an example of

Correct Answer
verified

Which of the following is not true regarding global pricing?

Correct Answer
verified

Correct Answer
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The amount a product sells for above the total cost of the product itself is its .

Correct Answer
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Taste of the Tropics is a manufacturer of fruit juice products. It recently reduced the amount of its premium juice line from 64-ounce containers to 52-ounce containers but kept the price the same. This is an example of

Correct Answer
verified

Individuals or groups that buy new or used products for a lower price in a foreign country, import them legally back into the domestic market, and sell them for less than the normal market price are participating in the ________ market.

Correct Answer
verified

What is marginal revenue?

Correct Answer
verified

The sale of branded products through legal but unauthorized distribution channels is referred to as the

Correct Answer
verified

Tariffs may raise the price that foreign customers must pay for goods produced in the United States, negatively impacting a U.S. firm's ability to be price competitive in those markets.

Correct Answer
verified

Which piece of legislation established the Federal Trade Commission, giving it the authority to enforce laws aimed at prohibiting unfair methods of competition?

Correct Answer
verified

Consumers will be more price sensitive when

Correct Answer
verified

is/are calculated by multiplying units sold by price, whereas is calculated by subtracting costs from revenue.

Correct Answer
verified

The international pricing strategy of any U.S. firm must take into account the taxes on imports and exports that foreign countries might place on its goods, otherwise known as ________.

Correct Answer
verified

A profit maximization strategy is used during the growth and maturity stages of the product life cycle.

Correct Answer
verified

The percentage change in quantity demanded in response to a percentage change in price is referred to as price ________ of demand.

Correct Answer
verified

Which statement regarding break-even analysis is true?

Correct Answer
verified

If a resort wanted to promote visitors to come during its off-peak times, it would most likely choose which pricing tactic?

Correct Answer
verified

Exam 11: Pricing

Priceline.com is a type of "name-your-own-price" ________ site where a consumer submits a bid at the price he or she is willing to pay for a product or service.

Correct AnswerverifiedShow Answer

Firms that want to promote an image of superior quality and exclusivity to customers would most likely pursue a _________ pricing strategy.

Correct AnswerverifiedShow Answer

A computer manufacturer that used to sell its computer, monitor, and keyboard for one packaged price now sells each item separately. This is an example of ________.

Correct AnswerverifiedShow Answer

The three largest manufacturers of telecommunications wire conspired together so that all three firms would charge the same price for coaxial cables. This is an example of

Correct AnswerverifiedShow Answer

Which of the following is not true regarding global pricing?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The amount a product sells for above the total cost of the product itself is its ________ ________.

Correct AnswerverifiedShow Answer

Taste of the Tropics is a manufacturer of fruit juice products. It recently reduced the amount of its premium juice line from 64-ounce containers to 52-ounce containers but kept the price the same. This is an example of

Correct AnswerverifiedShow Answer

Individuals or groups that buy new or used products for a lower price in a foreign country, import them legally back into the domestic market, and sell them for less than the normal market price are participating in the ________ market.

Correct AnswerverifiedShow Answer

What is marginal revenue?

Correct AnswerverifiedShow Answer

The sale of branded products through legal but unauthorized distribution channels is referred to as the

Correct AnswerverifiedShow Answer

Tariffs may raise the price that foreign customers must pay for goods produced in the United States, negatively impacting a U.S. firm's ability to be price competitive in those markets.

Correct AnswerverifiedShow Answer

Which piece of legislation established the Federal Trade Commission, giving it the authority to enforce laws aimed at prohibiting unfair methods of competition?

Correct AnswerverifiedShow Answer

Consumers will be more price sensitive when

Correct AnswerverifiedShow Answer

________ is/are calculated by multiplying units sold by price, whereas ________ is calculated by subtracting costs from revenue.

Correct AnswerverifiedShow Answer

The international pricing strategy of any U.S. firm must take into account the taxes on imports and exports that foreign countries might place on its goods, otherwise known as ________.

Correct AnswerverifiedShow Answer

A profit maximization strategy is used during the growth and maturity stages of the product life cycle.

Correct AnswerverifiedShow Answer

The percentage change in quantity demanded in response to a percentage change in price is referred to as price ________ of demand.

Correct AnswerverifiedShow Answer

Which statement regarding break-even analysis is true?

Correct AnswerverifiedShow Answer

If a resort wanted to promote visitors to come during its off-peak times, it would most likely choose which pricing tactic?

Correct AnswerverifiedShow Answer

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The amount a product sells for above the total cost of the product itself is its .

Correct Answer
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is/are calculated by multiplying units sold by price, whereas is calculated by subtracting costs from revenue.

Correct Answer
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