Marketing Chapter 10
False
Exchanges of nonmonetary value do not involve a price. True or False
C) a fad such as Beanie Babies
In price planning, a firm would be most likely to set a profit objective for which of the following products? A) a commodity such as coal B) toothpaste C) a fad such as Beanie Babies D) lightbulbs E) construction materials
True
The first step in planning how to price a product is to develop pricing objectives. True or False
B) opportunity cost
The value of something we give up in order to obtain something else is referred to as a(n) ________. A) transformation cost B) opportunity cost C) exchange D) variable cost E) marginal cost
C) competitive effect
When Home Depot stores entered the Canadian market, there were already stores providing similar services and products. To get people to try Home Depot, the chain deliberately sold merchandise below the price that the Canadians were used to. What type of pricing objective did Home Depot use? A) market share B) profit C) competitive effect D) customer satisfaction E) image enhancement
B) sales
When setting prices, a leading manufacturer of nutritional supplements decided to institute a pricing strategy that would support a five percent increase in sales over the next three years. What type of pricing objective has the company set? A) profit B) sales C) competitive effect D) cost-plus E) value
A) elasticity
Which of the following is NOT a type of pricing objective? A) elasticity B) market share C) profit D) competitive effect E) image enhancement
C) Price can mean exchange of nonmonetary goods or services.
Which of the following statements about price is true? A) Pricing is the least important marketing mix element. B) Price is always a monetary value. C) Price can mean exchange of nonmonetary goods or services. D) Most consumers believe price has little influence on their purchase decisions. E) Pricing is unaffected by changes in the business cycle.
C) Price
________ is the assignment of value, or the amount a consumer must give to receive a product. A) Profit B) Exchange C) Price D) Demand E) Yield
D) competitive effect
A company that intends to maintain low-end pricing policies to make the market unattractive for its competitors is using which of the following pricing objectives in its price planning? A) sales B) profit C) break-even D) competitive effect E) customer satisfaction