Week 9 Questions

Question 1

Price is defined as?

Answer 1

The money or other considerations exchanged for the ownership or use of a product

Question 2

Value is defined as

Answer 2

Perceived benefits divided by price

Question 3

Pricing has ____ effect on a firms profits

Answer 3

A direct

Question 4

The four common approaches to pricing include?

Price oriented
Distribution oriented
Profit oriented
Competition oriented
Demand oriented
Cost oriented

Answer 4

Profit
Competition
Demand
Cost

Question 5

Which of the following are examples of price?

School tuition
Insurance premiums
Cash savings
Union dues

Answer 5

School tuition
Insurance premiums
Union dues

Question 6

The money or other consideration (including other products and services) exchanged for the ownership or use of a product is known as?

Answer 6

Price

Question 7

Demand oriented pricing approaches weigh which factors most heavily?

Costs to product the product
Expected supply if the product at its time of release
Expected customer tastes and preferences
Number of competitive products on the market

Answer 7

Expected customer tastes and preferences

Question 8

True or false?
Price is often used as an indicator of quality and value

Answer 8

True

Question 9

Pricing approaches that consider the production and marketing costs and then add enough to cover direct expenses, overhead, and profit are known as?

Answer 9

Cost oriented

Question 10

Total revenue less total cost is known as?

Answer 10

Profit

Question 11

Which of the following is NOT a common approach to pricing?

Answer 11

Distribution oriented

Question 12

Which of the following are profit oriented approaches to setting a price?

Target profit pricing
Customary pricing
Skimming pricing
Target return pricing

Answer 12

Target profit pricing
Target return pricing

Question 13

Insurance premiums, credit card interest and doctors fees are all examples of?

Answer 13

Price

Question 14

_______ oriented pricing approaches weigh factors underlying expected customer tastes and preferences more heavily than other factors

Answer 14

Demand

Question 15

Cost oriented approaches to pricing considers which of the following in the setting of a products price?

Overhead
Consumer preferences
Manufacturing costs
Profit

Answer 15

Overhead
Manufacture and
Profit

Question 16

Pricing has ____ effect in a firms profits

Answer 16

A direct

Question 17

_____ oriented approaches to pricing set the price to reflect the way the marketer wants consumers to interpret prices relative to competitors offerings

Answer 17

Competition

Question 18

By focusing on target profit pricing or target return pricing, a firm is using a ______ pricing approach

Answer 18

Profit oriented

Question 19

Marketers consider their pricing strategy for a new product as well as the competitive products available in order to

Answer 19

Estimate demand

Question 20

ROI analysis provides

A summary of sales and expenditures for the period
Strategies to improve financial performance
Demand estimates required to earn profit
Evaluation of the dollars invested in an initiative

Answer 20

Evaluation of the dollars invested in an initiative

Question 21

Pricing approaches that consider the production and marketing costs and then add enough to cover direct expenses, overhead, and profit are known as

Answer 21

Cost- oriented

Question 22

When using competition oriented pricing approaches, price setters stress

Answer 22

What the market is doing

Question 23

The demand curve is?

Answer 23

A graph showing the number of products that will be sold at a given price

Question 24

Once marketers have decided on a products price the next step is to

Answer 24

Determine demand

Question 25

Total revenue= unit ____ x quantity______

Answer 25

Price Sold

Question 26

The profit earned from an initiative in comparison to what was invested is called

Answer 26

Return on investment

Question 27

Cost oriented approaches to pricing considers which of the following in the setting of a products price? Consumer preferences Manufacturing costs Profit Overhead

Answer 27

Manufacturing costs (production costs) Profit Overhead

Question 28

On a demand curve one of the axes represents the price of a product while the other represents the

Answer 28

Quantity demanded

Question 29

Marketers consider their pricing strategy for a new product as well as the competitive products available in order to

Answer 29

Estimate demand

Question 30

Marketers commonly use ____ to relate revenues and costs

Answer 30

Break even analysis

Question 31

Price times quantity sold is

Answer 31

Total revenue

Question 32

Break even analysis examines the relationship between which two at various levels of outputs Maximum value Total cost Minimum cost Total revenue

Answer 32

Total revenue and total cost

Question 33

Return on investment analysis provides

Answer 33

Evaluation if the dollars invested in an initiative

Question 34

Pricing approaches that consider the production and marketing costs and then add enough to cover direct expenses overhead and profit are known as

Answer 34

Cost oriented

Question 35

The demand curve is

Answer 35

A graph showing the number of products that will be sold at a given price

Question 36

While _____ refer to money received by a business, _____ refer to the money paid out to employees and suppliers

Answer 36

Revenue Cost

Question 37

Break even analysis examines the relationship between total revenue and total cost to determine profitability For a variety of sales prices At various levels of output When costs are absolutely minimized When demand is maximized

Answer 37

At various levels of output

Question 38

The profit earned from an initiative in comparison to what was invested is called

Answer 38

ROI

Question 39

Break even analysis can help evaluate the impact of changes in _____ and ______ on _____

Answer 39

Price Costs Profit

Question 40

A marketing manager considers pricing objectives and constraints to Reduce dependence on product revenues Determine what kinds of special adjustments to the list price will work best Narrow the range of choices among the variety of pricing strategies Estimate the changes to demand that will occur with a price increase

Answer 40

Narrow the range of choices among the variety of pricing strategies

Question 41

Pricing ____ involve specifying the role of price in an organization’s marketing and strategic plans

Answer 41

Objectives

Question 42

Marketers commonly use ____ to relate revenues and costs

Answer 42

Break even analysis

Question 43

Factors that limit the range of prices a firm may set are known as pricing

Answer 43

Constraints

Question 44

Which of the following is an advantage of using break even analysis? It calculates the ideal price point It considers only variable cost and not fixed cost It is very predictive of changes in consumer demand It is simple

Answer 44

It is simple

Question 45

Pricing ______ frequently reflect corporate goals, while pricing ______ often relate to conditions existing in the marketplace.

Answer 45

Objectives Constraints

Question 46

Marketing managers may identify profit, market share, social responsibility, or even survival as pricing

Answer 46

Objectives

Question 47

Price fixing, price discrimination and predatory pricing are Seen as unethical by some but are currently legal Legally prohibited Legal when used as discounts but illegal if used as allowances Legal but not recommended because they result in the loss of sales

Answer 47

Legally prohibited

Question 48

Legal and regulatory issues and consumer demand are pricing ____ that limit what a company can charge for its products

Answer 48

Constraints

Question 49

Global companies often facing pricing strategy challenges due to Accounting procedures Individual country differences Competitor price fixing Global pricing courts

Answer 49

Individual country differences

Question 50

Moving from an approximate price level to a final one involves which two of the following? Estimate demand and revenue Determine cost, volume, and profit relationships Make special adjustments to list or quoted price Set list or quoted price

Answer 50

Make special adjustments to list or quoted price Set list or quoted price

Question 51

Demand oriented, cost oriented, and profit oriented approaches can be used to a(n)______ price level for a product

Answer 51

Approximate

Question 52

Which of the following are pricing strategies that are legally restricted? Predatory pricing Price fixing Loss-leader pricing FOB origin pricing

Answer 52

Predatory pricing Price fixing

Question 53

Setting a price with no variation for product buyers is called a _____ policy

Answer 53

One price

Question 54

Which of the following are special adjustments to the list or quoted price? Allowances Price fixing Geographical adjustments Discounts

Answer 54

Allowances Geographical adjustments Discounts

Question 55

In particular,______ strategic approaches may face legal difficulties when applied globally

Answer 55

Low price

Question 56

The final step is setting product price is

Answer 56

Monitoring and adjusting prices

Question 57

What is the order of setting a final price?

Answer 57

1 select an approximate price level 2 set the list or quoted price 3 make special adjustments to the list or quoted price

Question 58

Select all of the following that are common approaches to setting an approximate price level for a product Demand oriented Competition oriented Cost oriented Service oriented

Answer 58

Demand oriented Competition oriented Cost oriented

Question 59

A ______ policy is also known as fixed pricing

Answer 59

One price

Question 60

Match each type of special adjustment to a list or quoted price with an example of it Discounts Allowances Geographical adjustments Promotional Quantity FOB origin pricing

Answer 60

Discounts - quantity Allowance - promotional Geographical adjustment- FOB origin pricing

Question 61

In the final step, forms must monitor and adjust prices. To be effective, firms must monitor changes in both the _____ and _____

Answer 61

External environment Within the firm