Question 1

With ________,the seller pays both the cost of loading and transporting the product to the customer.

Accepted Answer

A)  F) O.B.origin
B)  F) O.B.delivered
C)  captive pricing
D)  zone pricing
E)  uniform delivered pricingF) C) and D)
G) A) and D)

Question 2

To determine the break-even point,a firm needs first to ________.

Accepted Answer

A)  determine the point at which supply equals demand
B)  determine total market share
C)  calculate the contribution per unit to fixed costs
D)  determine what percentage of the market it desires
E)  conduct an environmental auditF) C) and D)
G) A) and B)

Question 3

Price lining refers the amount of the price that is 'padding',so the retailer can give the customer a discount.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A)  Concession supplies such as soft drinks
B)  Interest on loans
C)  Liability insurance
D)  Park manager's salary
E)  All of the aboveF) None of the above
G) A) and E)

Question 5

Explain price fixing and why it is an illegal practice.

Accepted Answer

as it is designed to...

Question 6

Break-even analysis ________.

Accepted Answer

A)  is used to determine the number of units a company must sell to cover all of its costs
B)  determines the amount of retained earnings a company will have during an accounting period
C)  is a technique marketers use to examine the relationship between supply and demand
D)  is used to determine how many more units need to be sold to increase market share by a specific amount
E)  is a technique used to calculate contribution marginF) B) and E)
G) B) and C)

Question 7

Value Meal Deals in which you get a burger,fries,and a drink for one price are an example of price bundling.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  Price skimming
B)  Comparative pricing
C)  Captive pricing
D)  Price bundling
E)  Penetration pricingF) All of the above
G) B) and C)

Question 9

Explain the concepts of two-part pricing,price bundling and captive pricing,including examples.Why would a retailer implement these pricing strategies?

Accepted Answer

Two-part pricing is a strategy marketers...

Question 10

A company that intended to maintain low-end pricing policies to make the market unattractive for its competitors is pursuing a/n ________ pricing objective.

Accepted Answer

A)  break-even
B)  profit
C)  competitive effect
D)  image enhancement
E)  sales or market shareF) A) and B)
G) A) and C)

Question 11

A local restaurant sells lunch entrees for $7.95,$9.95,and $11.95.This is an example of ________.

Accepted Answer

A)  even pricing and price lining
B)  dynamic pricing and price lining
C)  price discrimination
D)  odd pricing and price lining
E)  price discrimination and predatory pricingF) A) and E)
G) A) and C)

Question 12

A corner takeaway store sells hamburgers for $3.95,drinks for $1.95,and fries for $1.49 while a gourmet restaurant nearby sells entrees for $20,$30,and $45.Both of these restaurants are using ________.

Accepted Answer

A)  cost-based pricing
B)  product-oriented pricing
C)  demand-based pricing
D)  supply-based pricing
E)  psychological pricingF) A) and B)
G) B) and D)

Question 13

Which of the following products would most likely have profit as its main pricing objective?

Accepted Answer

A)  Construction material
B)  A fad product
C)  Toothpaste
D)  A commodity like coal
E)  Light bulbsF) D) and E)
G) None of the above

Question 14

What is the difference between reducing prices and predatory pricing?

Accepted Answer

A)  With predatory pricing the intention is to deter a competitor from engaging in competitive conduct.
B)  With predatory pricing the intention is to prevent a competitor from engaging in competitive conduct.
C)  With predatory pricing the intention is to prevent a competitor from entering the market.
D)  With predatory pricing the intention is to eliminate a competitor.
E)  All of the aboveF) B) and C)
G) A) and E)

Question 15

Explain the term fixed costs and provide three examples of fixed costs incurred by a restaurant.

Accepted Answer

Fixed costs do not vary with t...

Question 16

What is the difference between the cost-based pricing strategy and the cost-plus pricing strategy?

Accepted Answer

Cost-based pricing strategy is the calcu...

Question 17

With ________,the selling price is based on an estimate of the volume or quantity a firm can sell in different markets at different prices.

Accepted Answer

A)  price-floor planning
B)  capacity management
C)  demand-based pricing
D)  penetration pricing
E)  resale maintenanceF) All of the above
G) C) and D)

Question 18

Top-Flite priced its advanced Strata golf balls designed to give better flight when used with metal clubs at three times that of regular golf balls when they were introduced.Even at the higher price,pro golf shops could not keep them in stock.What is the pricing strategy was implemented by Top-Flite?

Accepted Answer

Top-Flite implemented a skimming price s...

Question 19

________ occurs when two or more companies decide the price they will charge for their products.

Accepted Answer

A)  Price fixing
B)  Skimming pricing
C)  Price discrimination
D)  Comparison price lining
E)  Price liningF) C) and D)
G) B) and E)

Question 20

The demand curve ________.

Accepted Answer

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

Exam 10: Pricing the Product

With ________,the selling price is based on an estimate of the volume or quantity a firm can sell in different markets at different prices.

Correct Answer
verified

Value Meal Deals in which you get a burger,fries,and a drink for one price are an example of price bundling.

Correct Answer
verified

Which of the following products would most likely have profit as its main pricing objective?

Correct Answer
verified

Correct Answer
verified
Top-Flite implemented a skimming price s...
View Answer

A local restaurant sells lunch entrees for $7.95,$9.95,and $11.95.This is an example of ________.

Correct Answer
verified

The demand curve ________.

Correct Answer
verified

What is the difference between reducing prices and predatory pricing?

Correct Answer
verified

To determine the break-even point,a firm needs first to ________.

Correct Answer
verified

A corner takeaway store sells hamburgers for $3.95,drinks for $1.95,and fries for $1.49 while a gourmet restaurant nearby sells entrees for $20,$30,and $45.Both of these restaurants are using ________.

Correct Answer
verified

Price lining refers the amount of the price that is 'padding',so the retailer can give the customer a discount.

Correct Answer
verified

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

Correct Answer
verified

A company that intended to maintain low-end pricing policies to make the market unattractive for its competitors is pursuing a/n ________ pricing objective.

Correct Answer
verified

What is the difference between the cost-based pricing strategy and the cost-plus pricing strategy?

Correct Answer
verified
Cost-based pricing strategy is the calcu...
View Answer

________ occurs when two or more companies decide the price they will charge for their products.

Correct Answer
verified

Explain the concepts of two-part pricing,price bundling and captive pricing,including examples.Why would a retailer implement these pricing strategies?

Correct Answer
verified
Two-part pricing is a strategy marketers...
View Answer

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

Correct Answer
verified

With ________,the seller pays both the cost of loading and transporting the product to the customer.

Correct Answer
verified

Explain the term fixed costs and provide three examples of fixed costs incurred by a restaurant.

Correct Answer
verified
Fixed costs do not vary with t...
View Answer

Explain price fixing and why it is an illegal practice.

Correct Answer
verified
as it is designed to...
View Answer

Break-even analysis ________.

Correct Answer
verified

Exam 10: Pricing the Product

With ________,the selling price is based on an estimate of the volume or quantity a firm can sell in different markets at different prices.

Correct AnswerverifiedShow Answer

Value Meal Deals in which you get a burger,fries,and a drink for one price are an example of price bundling.

Correct AnswerverifiedShow Answer

Which of the following products would most likely have profit as its main pricing objective?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedTop-Flite implemented a skimming price s...View AnswerShow Answer

A local restaurant sells lunch entrees for $7.95,$9.95,and $11.95.This is an example of ________.

Correct AnswerverifiedShow Answer

The demand curve ________.

Correct AnswerverifiedShow Answer

What is the difference between reducing prices and predatory pricing?

Correct AnswerverifiedShow Answer

To determine the break-even point,a firm needs first to ________.

Correct AnswerverifiedShow Answer

A corner takeaway store sells hamburgers for $3.95,drinks for $1.95,and fries for $1.49 while a gourmet restaurant nearby sells entrees for $20,$30,and $45.Both of these restaurants are using ________.

Correct AnswerverifiedShow Answer

Price lining refers the amount of the price that is 'padding',so the retailer can give the customer a discount.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A company that intended to maintain low-end pricing policies to make the market unattractive for its competitors is pursuing a/n ________ pricing objective.

Correct AnswerverifiedShow Answer

What is the difference between the cost-based pricing strategy and the cost-plus pricing strategy?

Correct AnswerverifiedCost-based pricing strategy is the calcu...View AnswerShow Answer

________ occurs when two or more companies decide the price they will charge for their products.

Correct AnswerverifiedShow Answer

Explain the concepts of two-part pricing,price bundling and captive pricing,including examples.Why would a retailer implement these pricing strategies?

Correct AnswerverifiedTwo-part pricing is a strategy marketers...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

With ________,the seller pays both the cost of loading and transporting the product to the customer.

Correct AnswerverifiedShow Answer

Explain the term fixed costs and provide three examples of fixed costs incurred by a restaurant.

Correct AnswerverifiedFixed costs do not vary with t...View AnswerShow Answer

Explain price fixing and why it is an illegal practice.

Correct Answerverifiedas it is designed to...View AnswerShow Answer

Break-even analysis ________.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Top-Flite implemented a skimming price s...
View 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
Cost-based pricing strategy is the calcu...
View Answer

Correct Answer
verified

Correct Answer
verified
Two-part pricing is a strategy marketers...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Fixed costs do not vary with t...
View Answer

Correct Answer
verified
as it is designed to...
View Answer

Correct Answer
verified