Question 1

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.

Question 2

Nonprice competition allows a company to increase its brand's unit sales through means other than changing the brand's price.

Accepted Answer

A) True 
 B)False

Question 3

What a price means or what it communicates to customers is called

Accepted Answer

A)  reference.
B)  response.
C)  interpretation.
D)  internalization.
E)  signaling.

Question 4

Price is

Accepted Answer

A)  money paid in a transaction.
B)  not important to buyers.
C)  of limited interest to sellers.
D)  the most inflexible marketing mix decision variable.
E)  the value that is exchanged for products in a marketing transaction.

Question 5

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 Act

Question 6

A firm that competes on a price basis is unable to change prices frequently.

Accepted Answer

A) True 
 B)False

Question 7

Electricity is an example of a product that is price elastic.

Accepted Answer

A) True 
 B)False

Question 8

For most consumers, there is an assumed relationship between

Accepted Answer

A)  price and quality.
B)  value and cost.
C)  internal and external reference prices.
D)  value and price consciousness.
E)  prestige prices and value.

Question 9

Pricing decisions can be based on determining whether the demand for a product is price elastic or price inelastic.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements about nonprice competition is false?

Accepted Answer

A)  Companies that use nonprice competition do not need to keep track of their competitor's prices.
B)  A company must be able to distinguish its brand through some unique feature in order to successfully engage in nonprice competition.
C)  A firm using nonprice competition can build loyalty to both its company and its products.
D)  When using nonprice competition, a company should promote the distinguishing characteristics of its brand.
E)  Buyers must view the distinguishing characteristics of a product offered through nonprice competition as being important.

Question 11

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 battle

Question 12

Buyers who focus on purchasing products that signify prominence and status are

Accepted Answer

A)  value-conscious consumers.
B)  price-conscious consumers.
C)  socially elite buyers.
D)  prestige-sensitive buyers.
E)  brand aware consumers.

Question 13

Barter is the oldest form of exchange.

Accepted Answer

A) True 
 B)False

Question 14

What equation shows organizations the relationship between price and profit?

Accepted Answer

A)  Total Variable Costs + Total Fixed Costs = Sales − Profit
B)  Price = Profit per Item × Number of Units Sold
C)  (Price × Quantity Sold)  − Total Costs = Profits
D)  (Price − Profits)  × Total Costs = Sales
E)  Total Costs = (Price × Quantity Sold)  − Profits

Question 15

Price should be defined in terms of money only.

Accepted Answer

A) True 
 B)False

Question 16

When Cadillac buys headlights from Delco (both of which are divisions of General Motors) , ____ pricing occurs.

Accepted Answer

A)  base-point
B)  zone
C)  transfer
D)  uniform geographic
E)  matrix

Question 17

What do all of the following have in common: tuition, fee, premium, retainer, dues?

Accepted Answer

A)  They are all usually paid in cash.
B)  They are forms of exchange similar to, but not identical with, money.
C)  They are forms of exchange similar to, but not identical with, barter.
D)  They are different terms for the concept of price.
E)  They have nothing in common.

Question 18

Identify and describe the major types of discounts used for business markets. Then explain the reasons for using each type.

Accepted Answer

​The major types of discounts include: t...

Question 19

Which of the following is not a discount provided to business customers?

Accepted Answer

A)  Trade
B)  Cumulative
C)  Cash
D)  Seasonal
E)  Differentiated

Question 20

Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's

Accepted Answer

A)  average revenue.
B)  marginal revenue.
C)  price elasticity.
D)  average variable revenue.
E)  average total cost.

Exam 19: Pricing Concepts

Which of the following is not a discount provided to business customers?

Correct Answer
verified

Barter is the oldest form of exchange.

Correct Answer
verified

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

Correct Answer
verified

For most consumers, there is an assumed relationship between

Correct Answer
verified

Price should be defined in terms of money only.

Correct Answer
verified

What do all of the following have in common: tuition, fee, premium, retainer, dues?

Correct Answer
verified

Pricing decisions can be based on determining whether the demand for a product is price elastic or price inelastic.

Correct Answer
verified

What equation shows organizations the relationship between price and profit?

Correct Answer
verified

When Cadillac buys headlights from Delco (both of which are divisions of General Motors) , ____ pricing occurs.

Correct Answer
verified

What a price means or what it communicates to customers is called

Correct Answer
verified

The ____ prohibits price fixing among firms in an industry.

Correct Answer
verified

A firm that competes on a price basis is unable to change prices frequently.

Correct Answer
verified

Nonprice competition allows a company to increase its brand's unit sales through means other than changing the brand's price.

Correct Answer
verified

Buyers who focus on purchasing products that signify prominence and status are

Correct Answer
verified

Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's

Correct Answer
verified

Price is

Correct Answer
verified

Electricity is an example of a product that is price elastic.

Correct Answer
verified

Identify and describe the major types of discounts used for business markets. Then explain the reasons for using each type.

Correct Answer
verified
The major types of discounts include: t...
View Answer

Correct Answer
verified

Which of the following statements about nonprice competition is false?

Correct Answer
verified

Exam 19: Pricing Concepts

Which of the following is not a discount provided to business customers?

Correct AnswerverifiedShow Answer

Barter is the oldest form of exchange.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

For most consumers, there is an assumed relationship between

Correct AnswerverifiedShow Answer

Price should be defined in terms of money only.

Correct AnswerverifiedShow Answer

What do all of the following have in common: tuition, fee, premium, retainer, dues?

Correct AnswerverifiedShow Answer

Pricing decisions can be based on determining whether the demand for a product is price elastic or price inelastic.

Correct AnswerverifiedShow Answer

What equation shows organizations the relationship between price and profit?

Correct AnswerverifiedShow Answer

When Cadillac buys headlights from Delco (both of which are divisions of General Motors) , ____ pricing occurs.

Correct AnswerverifiedShow Answer

What a price means or what it communicates to customers is called

Correct AnswerverifiedShow Answer

The ____ prohibits price fixing among firms in an industry.

Correct AnswerverifiedShow Answer

A firm that competes on a price basis is unable to change prices frequently.

Correct AnswerverifiedShow Answer

Nonprice competition allows a company to increase its brand's unit sales through means other than changing the brand's price.

Correct AnswerverifiedShow Answer

Buyers who focus on purchasing products that signify prominence and status are

Correct AnswerverifiedShow Answer

Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's

Correct AnswerverifiedShow Answer

Price is

Correct AnswerverifiedShow Answer

Electricity is an example of a product that is price elastic.

Correct AnswerverifiedShow Answer

Identify and describe the major types of discounts used for business markets. Then explain the reasons for using each type.

Correct Answerverified​The major types of discounts include: t...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements about nonprice competition is false?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The major types of discounts include: t...
View Answer

Correct Answer
verified

Correct Answer
verified