Question 1

Costs that depend on the number of units produced are called _____.

Accepted Answer

A)   markup
B)   operational expenses
C)   fixed costs
D)   variable costs
E)   overheadF) B) and E)
G) B) and D)

Question 2

Under what circumstances might a firm use survival pricing objectives? How would a firm implement such a strategy?

Accepted Answer

A firm might use survival pricing object...

Question 3

Discounts offered to encourage early payment are called ____ discounts.

Accepted Answer

A)   trade
B)   cash
C)   wholesale
D)   quantity
E)   preferentialF) A) and D)
G) C) and E)

Question 4

A trade discount is the price producers set to draw the public's attention to new products.

Accepted Answer

A) True 
 B)False

Question 5

Mama Mia restaurant purchased two large ovens for its kitchen.These ovens are an example of which type of business product?

Accepted Answer

A)   convenience product
B)   accessory equipment
C)   major equipment
D)   component parts
E)   process materialF) A) and B)
G) B) and E)

Question 6

There are two dimensions to a firm's product mix: volume and breadth.

Accepted Answer

A) True 
 B)False

Question 7

Demand-based pricing, unlike cost-based pricing, places firms in a better position to

Accepted Answer

A)   attain higher profit levels.
B)   estimate demand easily and accurately.
C)   perform breakeven analysis.
D)   calculate price based on intangible benefits.
E)   penetrate the market quickly.F) D) and E)
G) A) and C)

Question 8

Rose is starting to notice some wrinkles around her eyes and mouth.She has decided to purchase some age-defying wrinkle cream but is unfamiliar with available brands.At the store, she picks out a brand because she remembers a clever advertisement about it on television.What level of brand loyalty does this describe?

Accepted Answer

A)   preference
B)   ignorance
C)   insistence
D)   acceptance
E)   recognitionF) B) and D)
G) None of the above

Question 9

A price of $5.95 for a product would fall into the category of odd-number pricing.

Accepted Answer

A) True 
 B)False

Question 10

A number of federal regulations specify the information that must be included in labeling.Which of the following is not specified?

Accepted Answer

A)   fabric content
B)   safety precautions
C)   ingredient content
D)   packaging content to indicate whether the package is recyclable
E)   fabric cleaning instructionsF) A) and C)
G) B) and E)

Question 11

Sheet steel to be used in making automobile fenders is an example of _____.

Accepted Answer

A)   raw materials
B)   supplies
C)   component parts
D)   accessory equipment
E)   process materialsF) B) and E)
G) All of the above

Question 12

Some pricing objectives include surviving, maximizing profit, obtaining market share goals, and maintaining status quo.

Accepted Answer

A) True 
 B)False

Question 13

The stage in the evolution of new products in which the product is introduced in a limited way to determine buyers' reactions is called _____.

Accepted Answer

A)   test marketing
B)   screening
C)   business analysis
D)   commercialization
E)   product developmentF) None of the above
G) B) and E)

Question 14

If Tyson, a poultry producer, decided to start producing veggie burgers, this would be an example of

Accepted Answer

A)   developing an entirely new product line.
B)   expanding the depth of the marketing mix.
C)   extending an existing product line.
D)   an aesthetic product modification.
E)   narrowing the marketing mix.F) B) and E)
G) None of the above

Question 15

Lisa goes to a car dealership to purchase a new Honda Accord.She is not willing to pay the listed sticker price for the car, and she instead works with the salesperson and manager until a mutually satisfactory price is agreed upon.This is an example of ____ pricing.

Accepted Answer

A)   differential
B)   comprised
C)   negotiated
D)   reference
E)   secondaryF) B) and D)
G) A) and B)

Question 16

Price leaders

Accepted Answer

A)   are sold at the highest possible price.
B)   maximize profits.
C)   lead to increased revenue or lower costs when prices are increased or decreased.
D)   are sometimes sold at less than cost in hopes that sales of other products will increase.
E)   lead the industry in sales.F) B) and C)
G) D) and E)

Question 17

Hallmark cards develops a new line of cards that have a total cost of $200,000 and a price of $3 each.If it sells 20,000 cards the first month, what is its total revenue?

Accepted Answer

A)   $60,000
B)   $600,000
C)   $400,000
D)   $140,000
E)   -$140,000F) B) and D)
G) A) and B)

Question 18

Ties 'R' Us sells a variety of ties at many different prices.Often customers are confused about the pricing and have a hard time making a buying decision.Ties 'R' Us should use what type of pricing strategy?

Accepted Answer

A)   odd pricing
B)   price lining
C)   captive pricing
D)   multiple-unit pricing
E)   geographic pricingF) None of the above
G) A) and C)

Question 19

In her local supermarket Susan purchases green beans in a white can simply labeled as green beans.This represents a(n)  ____ brand.

Accepted Answer

A)   private
B)   generic
C)   value
D)   manufacturer
E)   anonymousF) A) and D)
G) D) and E)

Question 20

At a busy intersection in Atlanta, there are four competing gas stations.Each of the stations charges about the same for each gallon of gasoline.The pricing objectives of these firms is _____.

Accepted Answer

A)   survival
B)   market share goals
C)   status-quo pricing
D)   profit maximization
E)   competitiveF) B) and E)
G) A) and B)

Exam 12: Creating and Pricing Products That Satisfy Customers

Hallmark cards develops a new line of cards that have a total cost of $200,000 and a price of $3 each.If it sells 20,000 cards the first month, what is its total revenue?

Correct Answer
verified

A price of $5.95 for a product would fall into the category of odd-number pricing.

Correct Answer
verified

Some pricing objectives include surviving, maximizing profit, obtaining market share goals, and maintaining status quo.

Correct Answer
verified

Mama Mia restaurant purchased two large ovens for its kitchen.These ovens are an example of which type of business product?

Correct Answer
verified

The stage in the evolution of new products in which the product is introduced in a limited way to determine buyers' reactions is called _____.

Correct Answer
verified

A number of federal regulations specify the information that must be included in labeling.Which of the following is not specified?

Correct Answer
verified

Under what circumstances might a firm use survival pricing objectives? How would a firm implement such a strategy?

Correct Answer
Answered by ExamLex AI
A firm might use survival pricing object...
View Answer

Lisa goes to a car dealership to purchase a new Honda Accord.She is not willing to pay the listed sticker price for the car, and she instead works with the salesperson and manager until a mutually satisfactory price is agreed upon.This is an example of ____ pricing.

Correct Answer
verified

There are two dimensions to a firm's product mix: volume and breadth.

Correct Answer
verified

Costs that depend on the number of units produced are called _____.

Correct Answer
verified

Demand-based pricing, unlike cost-based pricing, places firms in a better position to

Correct Answer
verified

Discounts offered to encourage early payment are called ____ discounts.

Correct Answer
verified

Sheet steel to be used in making automobile fenders is an example of _____.

Correct Answer
verified

A trade discount is the price producers set to draw the public's attention to new products.

Correct Answer
verified

At a busy intersection in Atlanta, there are four competing gas stations.Each of the stations charges about the same for each gallon of gasoline.The pricing objectives of these firms is _____.

Correct Answer
verified

If Tyson, a poultry producer, decided to start producing veggie burgers, this would be an example of

Correct Answer
verified

Price leaders

Correct Answer
verified

Correct Answer
verified

In her local supermarket Susan purchases green beans in a white can simply labeled as green beans.This represents a(n) ____ brand.

Correct Answer
verified

Ties 'R' Us sells a variety of ties at many different prices.Often customers are confused about the pricing and have a hard time making a buying decision.Ties 'R' Us should use what type of pricing strategy?

Correct Answer
verified

Exam 12: Creating and Pricing Products That Satisfy Customers

Hallmark cards develops a new line of cards that have a total cost of $200,000 and a price of $3 each.If it sells 20,000 cards the first month, what is its total revenue?

Correct AnswerverifiedShow Answer

A price of $5.95 for a product would fall into the category of odd-number pricing.

Correct AnswerverifiedShow Answer

Some pricing objectives include surviving, maximizing profit, obtaining market share goals, and maintaining status quo.

Correct AnswerverifiedShow Answer

Mama Mia restaurant purchased two large ovens for its kitchen.These ovens are an example of which type of business product?

Correct AnswerverifiedShow Answer

The stage in the evolution of new products in which the product is introduced in a limited way to determine buyers' reactions is called _____.

Correct AnswerverifiedShow Answer

A number of federal regulations specify the information that must be included in labeling.Which of the following is not specified?

Correct AnswerverifiedShow Answer

Under what circumstances might a firm use survival pricing objectives? How would a firm implement such a strategy?

Correct AnswerAnswered by ExamLex AIA firm might use survival pricing object...View AnswerShow Answer

Lisa goes to a car dealership to purchase a new Honda Accord.She is not willing to pay the listed sticker price for the car, and she instead works with the salesperson and manager until a mutually satisfactory price is agreed upon.This is an example of ____ pricing.

Correct AnswerverifiedShow Answer

There are two dimensions to a firm's product mix: volume and breadth.

Correct AnswerverifiedShow Answer

Costs that depend on the number of units produced are called _____.

Correct AnswerverifiedShow Answer

Demand-based pricing, unlike cost-based pricing, places firms in a better position to

Correct AnswerverifiedShow Answer

Discounts offered to encourage early payment are called ____ discounts.

Correct AnswerverifiedShow Answer

Sheet steel to be used in making automobile fenders is an example of _____.

Correct AnswerverifiedShow Answer

A trade discount is the price producers set to draw the public's attention to new products.

Correct AnswerverifiedShow Answer

At a busy intersection in Atlanta, there are four competing gas stations.Each of the stations charges about the same for each gallon of gasoline.The pricing objectives of these firms is _____.

Correct AnswerverifiedShow Answer

If Tyson, a poultry producer, decided to start producing veggie burgers, this would be an example of

Correct AnswerverifiedShow Answer

Price leaders

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In her local supermarket Susan purchases green beans in a white can simply labeled as green beans.This represents a(n) ____ brand.

Correct AnswerverifiedShow Answer

Ties 'R' Us sells a variety of ties at many different prices.Often customers are confused about the pricing and have a hard time making a buying decision.Ties 'R' Us should use what type of pricing strategy?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
A firm might use survival pricing object...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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