MKT230 FINAL PT 1

If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges, the retailer is paying a(n) _________ price. Select one: a. F.O.B. factory b. transfer c. base-point d. F.O.B. destination e. postage-stamp

a. F.O.B. factory

Under Armour is establishing a ___________ pricing objective to maintain or increase its product's sales in relation to total industry sales. Select one: a. Market share b. Status quo c. survival d. Product quality e. Return on investment

a. Market share

Lucy buys a new dress at T. J. Maxx that has a price tag with "Compare at $150. Our Price is $89.99." This is an example of the use of Select one: a. an external reference price. b. base-point pricing. c. cumulative discounts. d. seasonal discounts. e. internal referencing.

a. an external reference price.

The oldest form of exchange is known as Select one: a. barter. b. credit. c. purchasing. d. pricing. e. buying.

a. barter.

If local Shell gasoline stations look at BP stations' prices as the primary method of determining its own prices, Shell is using __________ Select one: a. competition-based pricing, which considers costs to be less important than competitor's prices. b. market share pricing; which considers costs to be less important than competitor's prices. c. price fixing; which considers competition to be less important than costs. d. competition-based pricing, which considers profit to be the ultimate pricing goal. e. price fixing; which considers costs to be less important than competitor's prices.

a. competition-based pricing, which considers costs to be less important than competitor's prices.

The three primary bases for developing prices are Select one: a. demand, competition, and cost. b. negotiation, periodicity, and randomness. c. markup, cost, and cost-plus. d. profit, demand, and competition. e. supply, demand, and marketing objectives.

a. demand, competition, and cost.

When establishing prices, a marketer's first step is to Select one: a. develop pricing objectives. b. determine demand. c. select a pricing policy. d. determine a pricing methoc. e. evaluate competitors' prices.

a. develop pricing objectives.

When establishing prices, a marketer's first step is to Select one: a. develop pricing objectives. b. select a pricing policy. c. determine a pricing methoc. d. evaluate competitors' prices. e. determine demand.

a. develop pricing objectives.

The fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ___________ pricing. Select one: a. differential b. psychological c. price-line d. promotional e. professional

a. differential

Wet Seal, a retailer of swimwear, employs a commonly used cost-based pricing method called Select one: a. markup pricing. b. cost discounting. c. value pricing. d. cost-plus pricing. e. differential pricing.

a. markup pricing.

The newest version of a product like Bose headphones is likely to use __________ , while the new version of Red Bull is likely to use ___________ . Select one: a. price skimming; penetration pricing. b. price skimming; promotional pricing. c. price skimming; psychological pricing. d. penetration pricing; price skimming. e. psychological pricing; penetration pricing.

a. price skimming; penetration pricing.

The newest version of a product like Bose headphones is likely to use __________ , while the new version of Red Bull is likely to use ___________ . Select one: a. price skimming; penetration pricing. b. psychological pricing; penetration pricing. c. price skimming; psychological pricing. d. penetration pricing; price skimming. e. price skimming; promotional pricing.

a. price skimming; penetration pricing.

Services that are performed by lawyers, dentists, or doctors are typically priced using _________ ; sometimes these prices are not based on the amount of time that is spent in each situation, but are based on a flat fee regardless of the difficulty involved. Select one: a. professional pricing b. customary pricing c. price lining d. everyday low prices e. traditional pricing

a. professional pricing

If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ___________ discount. Select one: a. quantity b. trade c. cash d. seasonal e. complementary

a. quantity

Markup is measured either as a percentage of _________ or a percentage of ________ . Select one: a. selling price; cost b. cost; profit c. demand; competition d. resources used; cost e. revenue; contribution margin

a. selling price; cost

The manager at Target puts a sign up next to a Samsung audio system that reads, "Only $299.99! $60 less than at Best Buy." This is an example of what type of pricing strategy? Select one: a. Penetration pricing b. Comparison discounting c. Periodic discounting d. Random discounting e. Everyday low prices

b. Comparison discounting

What type of pricing objective would an organization use if it were in a favorable position and desired nothing more? Select one: a. Return on investment b. Status quo c. Cash flow d. Survival e. Profit

b. Status quo

At what point does a firm maximize profit? Select one: a. The point at which the firm sells its product at the highest price b. The point at which marginal cost equals marginal revenue c. The breakeven point plus the adjusted marginal cost d. The point at which marginal profits equal marginal revenue e. The point at which marginal costs equals marginal profits

b. The point at which marginal cost equals marginal revenue

Pricing the basic product in a product line low while pricing related items at a higher level is called Select one: a. premium pricing. b. captive pricing. c. price skimming. d. bait pricing. e. price lining.

b. captive pricing.

If local Shell gasoline stations look at BP stations' prices as the primary method of determining its own prices, Shell is using __________ Select one: a. price fixing; which considers costs to be less important than competitor's prices. b. competition-based pricing, which considers costs to be less important than competitor's prices. c. market share pricing; which considers costs to be less important than competitor's prices. d. competition-based pricing, which considers profit to be the ultimate pricing goal. e. price fixing; which considers competition to be less important than costs.

b. competition-based pricing, which considers costs to be less important than competitor's prices.

For most firms in the United States, demand curves are Select one: a. completely vertical. b. downward sloping. c. completely horizontal. d. upward sloping. e. c-shaped.

b. downward sloping.

A product is a price leader when Select one: a. an increase or decrease in price leads to increased revenue or lower costs. b. it is sold at less than cost in the hope that sales of other products will increase. c. its price leads the industry in sales. d. its price maximizes profits. e. it is sold at the highest price.

b. it is sold at less than cost in the hope that sales of other products will increase.

A product is a price leader when Select one: a. it is sold at the highest price. b. it is sold at less than cost in the hope that sales of other products will increase. c. its price leads the industry in sales. d. its price maximizes profits. e. an increase or decrease in price leads to increased revenue or lower costs.

b. it is sold at less than cost in the hope that sales of other products will increase.

Wet Seal, a retailer of swimwear, employs a commonly used cost-based pricing method called Select one: a. cost discounting. b. markup pricing. c. cost-plus pricing. d. value pricing. e. differential pricing.

b. markup pricing

French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night. This is an indication that suites at this hotel are apparently an example of a(n) ________ product. Select one: a. inferior b. prestige c. secondary-demand d. standard e. reverse-demand

b. prestige

For most consumers, there is an assumed relationship between Select one: a. internal and external reference prices. b. price and quality. c. prestige prices and value. d. value and cost. e. value and price consciousness.

b. price and quality.

A measure of sensitivity of demand in relation to changes in price is Select one: a. quantity elasticity. b. price elasticity of demand. c. a prestige graph. d. marginal analysis. e. a demand curve.

b. price elasticity of demand.

The pricing of Clinique makeup considerably higher than brands such as Cover Girl, Revlon, and Maybelline is used to communicate ___________ , which is the company's primary pricing objective. Select one: a. profitability b. product quality c. status quo d. market share e. cash flow

b. product quality

Suppose that the frozen foods division of Swanson purchases food trays and boxes from the packaging division. The form of pricing used th charge the frozen foods division is called Select one: a. price discrimination. b. transfer pricing. c. business-unit pricing. d. base-point pricing. e. zone pricing.

b. transfer pricing

For custom-made equipment or commercial construction projects, which pricing method is most likely used? Select one: a. Prestige b. Differential c. Cost-plus d. Premium e. Return-on-investment

c. Cost-plus

Under Armour is establishing a ___________ pricing objective to maintain or increase its product's sales in relation to total industry sales. Select one: a. Status quo b. survival c. Market share d. Return on investment e. Product quality

c. Market share

Some grocery stores collect data on competitive prices Select one: a. from their resellers. b. through stores' purchase data. c. by using full-time comparison shoppers. d. on a quarterly basis. e. by calling their competitors.

c. by using full-time comparison shoppers

The three primary bases for developing prices are Select one: a. markup, cost, and cost-plus. b. supply, demand, and marketing objectives. c. demand, competition, and cost. d. profit, demand, and competition. e. negotiation, periodicity, and randomness.

c. demand, competition, and cost.

The fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ___________ pricing. Select one: a. price-line b. psychological c. differential d. promotional e. professional

c. differential

Advertisements for Suave shampoos emphasize that other shampoos may cost more but don't work any better than Suave. In this example, Suave is competing on the basis of Select one: a. product performance. b. available selection. c. product price. d. product packaging. e. product attributes.

c. product price.

The pricing of Clinique makeup considerably higher than brands such as Cover Girl, Revlon, and Maybelline is used to communicate ___________ , which is the company's primary pricing objective. Select one: a. status quo b. market share c. product quality d. profitability e. cash flow

c. product quality

Services that are performed by lawyers, dentists, or doctors are typically priced using _________ ; sometimes these prices are not based on the amount of time that is spent in each situation, but are based on a flat fee regardless of the difficulty involved. Select one: a. traditional pricing b. price lining c. professional pricing d. everyday low prices e. customary pricing

c. professional pricing

If a business decides to reduce its prices once in a while on an unsystematic basis, it is using Select one: a. price reduction planning. b. penetration pricing. c. random discounting. d. periodic discounting. e. bait pricing.

c. random discounting.

Markup is measured either as a percentage of _________ or a percentage of ________ . Select one: a. cost; profit b. demand; competition c. selling price; cost d. resources used; cost e. revenue; contribution margin

c. selling price; cost

Monopolies usually keep their prices at a level that generate a reasonable, but not excessive, return primarily because Select one: a. customers will discountinue use of these products if prices rise. b. they try to satisfy the demands of value-conscious consumers. c. they want to avoid government regulations on their pricing. d. they want to avoid new competitors entering the market. e. firms can increase market share more rapidly this way.

c. they want to avoid government regulations on their pricing.

The manager at Target puts a sign up next to a Samsung audio system that reads, "Only $299.99! $60 less than at Best Buy." This is an example of what type of pricing strategy? Select one: a. Penetration pricing b. Periodic discounting c. Random discounting d. Comparison discounting e. Everyday low prices

d. Comparison discounting

Odd-even pricing is Select one: a. a rarely used technique. b. a cost-based strategy. c. competition-based. d. a psychological pricing strategy. e. a form of unethical pricing.

d. a psychological pricing strategy.

Jared is developing a business plan for a new type of bicycle helmet. He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product. Jared is interested in finding the Select one: a. variable costs. b. elasticity of demand. c. the sum of fixed costs. d. breakeven point. e. price elasticity.

d. breakeven point.

Mars Petcare is one of the world's largest pet food manufacturers. If the strategic goal for Mars Petcare in the coming year was to _____________ in North America, it should use temporary price reductions. Select one: a. increase the number of competitors. b. decrease volume sold. c. increase revenue per item. d. gain market share. e. decrease the number of competitors.

d. gain market share.

If the terms of a business exchange are 2/10 net 30, this means that the transaction Select one: a. offers a discount if the buyer lives within a ten-mile radius. b. involves a cumulative discount if paid in 30 days. c. involves a noncumulative discount. d. involves a cash discount if paid within ten days. e. price does not include the cost of freight.

d. involves a cash discount if paid within ten days.

If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should use Select one: a. everyday low prices. b. random discounting. c. price skimming. d. penetration pricing. e. captive pricing.

d. penetration pricing.

If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should use Select one: a. price skimming. b. everyday low prices. c. captive pricing. d. penetration pricing. e. random discounting.

d. penetration pricing.

For custom-made equipment or commercial construction projects, which pricing method is most likely used? Select one: a. Prestige b. Return-on-investment c. Differential d. Premium e. Cost-plus

e. Cost-plus

Which of the following is not a method used to determine transfer prices? Select one: a. Cost plus investment b. Standard full cost c. Actual full cost d. Market-based cost e. Discounted standard cost

e. Discounted standard cost

What type of pricing objective would an organization use if it were in a favorable position and desired nothing more? Select one: a. Survival b. Return on investment c. Cash flow d. Profit e. Status quo

e. Status quo

In conducting an assessment of her accounting firm, Paige discovers the following annual results: average charge per customer = $250; rent = $12,000; total billings = $150,000; employee compensation and benefits = $60,000; and other costs = $110,000. Given these results, Paige's profits would equal Select one: a. $28,000. b. $222,000. c. a loss of $20,000. d. $40,000. e. a loss of $32,000.

e. a loss of $32,000.

Odd-even pricing is Select one: a. competition-based. b. a form of unethical pricing. c. a rarely used technique. d. a cost-based strategy. e. a psychological pricing strategy

e. a psychological pricing strategy

Pricing the basic product in a product line low while pricing related items at a higher level is called Select one: a. price skimming. b. price lining. c. bait pricing. d. premium pricing. e. captive pricing.

e. captive pricing.

If a product is priced based on how many or how few people want it at a particular time and place, __________ pricing is being used. Select one: a. markup b. competitive c. differential d. peak e. demand-based

e. demand-based

If a product is priced based on how many or how few people want it at a particular time and place, __________ pricing is being used. Select one: a. peak b. differential c. competitive d. markup e. demand-based

e. demand-based

If a business decides to reduce its prices once in a while on an unsystematic basis, it is using Select one: a. price reduction planning. b. bait pricing. c. penetration pricing. d. periodic discounting. e. random discounting

e. random discounting

Suppose Tommy Hilfiger is introducing a new line of men's ties. The designer believes that the target market for these ties comprises men who are very status-conscious. In keeping with this assessment, department stores selling the ties should Select one: a. discount the ties. b. charge prices consistent with their existing ties. c. negotiate the price with individual tie shoppers. d. charge a price based on their cost. e. use price symbolically.

e. use price symbolically.

the Palasi Candy Company is a small business located in the northeastern united States. The owner of Palasi Candy is calculating the projected costs for the coming year. There is rent for the building, salaries for the retail employees, raw materials of sugar, chocolate, and other ingredients, wrappers for packaging of individual pieces of candy, boxes, and radio advertising. Palasi's ____________ are most likely to be the raw materials of sugar, chocolate, and other ingredients, as well as the wrappers. Select one: a. direct costs. b. fixed costs. c. marginal costs. d. sunk costs. e. variable costs

e. variable costs

The amount of profit a channel member expects depends on Select one: a. the amount of effort required to carry the product. b. they type of distribution channels involved. c. the amount of discount for large orders provided by the producers. d. the number of channel support activities provided by the producers. e. what the intermediary could earn if it were handling a competing product instead

e. what the intermediary could earn if it were handling a competing product instead