BUS 360 Ch 14 quiz

In ________Blank, one firm provides the product or service in a particular industry, which results in less price competition. a. a monopoly b. an oligopoly c. monopolistic competition d. oligopolistic competition e. pure competition

a. a monopoly

In the tech industry, only a few firms dominate. The best description of this type of market is a. a monopoly. b. an oligopoly. c. pure competition. d. a duopoly. e. monopolistic competition.

b. an oligopoly.

In the trucking industry, demand for fuel remains relatively stable even when the price increases, indicating that demand for fuel in this segment is a. elastic. b. inelastic. c. price-sensitive. d. expandable. e. flexible.

b. inelastic.

Sometimes reactions to prices in oligopolistic markets can result in a ________Blank, which occurs when two or more firms compete primarily by lowering their prices. a. recession b. price war c. lawsuit d. profit-oriented strategy e. competitor-oriented strategy

b. price war

Dominic's computer repair service is entering a new market and he plans to set prices to take sales away from the established market leader, even though it will mean profits might suffer. This goal corresponds to which company objective? a. profit orientation b. sales orientation c. competitor orientation d. customer orientation e. market orientation

b. sales orientation

Hilda's company makes gluten-free frozen desserts and has just received a large order from a local supermarket chain. This change in the company's production volume will affect Hilda's a. profit margins. b. variable costs. c. marketing outlays. d. contribution per unit. e. the break-even point.

b. variable costs.

Francis has calculated that the fixed costs for his company to manufacture a new jet ski are $24,000, the sales price is $9,000, and the variable cost per unit is $1,000. The break-even point is a. 1 unit. b. 2 units. c. 3 units. d. 4 units. e. 5 units.

c. 3 units.

Shane is the sales manager for an organic farm products firm in the Pacific Northwest that is clearly the market leader. He suggests his firm implement a region wide price reduction of all product lines to discourage new firms from entering its lucrative market. Which company objective is Shane trying to fulfill? a. profit orientation b. sales orientation c. competitor orientation d. customer orientation e. market orientation

c. competitor orientation

________Blank occurs when one or more firms collude to control prices. a. Predatory pricing b. Price discrimination c. Bait-and-switch pricing d. Price fixing e. Loss-leader pricing

d. Price fixing

Customer orientation and competitor orientation strategies are examples of which of the five Cs of pricing? a. company objectives b. competition c. customers d. costs e. channel members

a. company objectives

In a(n) ________Blank demand scenario, relatively small changes in price will generate fairly large changes in the quantity demanded. a. elastic b. inelastic c. target profit d. target return e. competitive parity

a. elastic

When Josh bought his new iPhone upon its release, the phone cost $999. Since he has high company loyalty and loves technological innovation, he bought the phone immediately even though he knew within a couple of years, the phone would be significantly less expensive. This is an example of what type of pricing strategy for Apple? a. price skimming b. penetration price strategy c. reference price d. high/low pricing e. everyday low pricing

a. price skimming

As the marketing vice president of her firm, Faye is implementing a companywide pricing policy that all products must achieve a target profit margin of 10 percent so the firm can achieve its overall growth objectives. What type of company objective is this? a. profit orientation b. sales orientation c. competitor orientation d. customer orientation e. market orientation

a. profit orientation

In the past, Ellie's vacation time has been spent at home catching a few local attractions when she could afford them. This year, she received a big bonus at work and decided to finally take the trip to Europe that she has always dreamed about. Ellie's purchasing behavior has changed due to a. the income effect. b. the substitution effect. c. cross-price elasticity. d. the complementary products effect. e. the substitute products effect.

a. the income effect.

To find out how many units sold will generate just enough revenue to equal the total costs, Harrison's solar panel company must look at a. contribution margin analysis. b. break-even analysis. c. predatory pricing. d. total cost calculation. e. fixed cost analysis.

b. break-even analysis.

In the case of an exclusive product like a Lamborghini, the higher the price, the greater the status associated with it and the greater the exclusivity because fewer people can afford to purchase it. The Lamborghini represents a ________Blank product. a. status quo b. prestige c. predatory d. reference e. substitute

b. prestige

________Blank indicates that the demand for related products like peanut butter and jelly can be either positively or negatively related. a. The income effect b. The substitution effect c. Cross-price elasticity d. Complementary products effect e. The supply curve

c. Cross-price elasticity

For the sake of expediency, marketers creating a ________Blank assume that the firm will not increase its expenditures on advertising and that the economy will not change in any significant way. a. price point analysis b. break-even analysis c. demand curve d. product curve e. price elasticity curve

c. demand curve

Devon intends to set a very low price for one of his company's products in hopes of driving the competition out of business. Devon is engaged in a. loss leader pricing. b. gray market pricing. c. predatory pricing. d. competitive parity. e. the substitution effect.

c. predatory pricing.

Standardized products such as grains and mineral products, which customers perceive as substitutable, are characteristic of a. monopolies. b. oligopolies. c. pure competition. d. competitive parity. e. monopolistic competition.

c. pure competition.

An office supply retailer will match competitor prices for customers who bring in proof that a particular product is being sold at a lower price by a competitor, thus using a. premium pricing. b. competitive parity. c. status quo pricing. d. target return pricing. e. target profit pricing.

c. status quo pricing.

Rhiannon estimates that the fixed costs associated with opening her new tax preparation service are $100,000. She expects the service to attract 500 new customers in the first year, each of whom will cost her $25 to serve. Susanna expects to generate $50,000 per year in revenue. Her total cost of opening the service and staying in business for one year will be a. $50,000. b. $87,500. c. $100,000. d. $112,500. e. $150,000.

d. $112,500.

The ________Blank is the price less the variable cost per unit. a. profit margin b. break-even point c. target return price d. contribution per unit e. fixed cost

d. contribution per unit

Theaters that offer lower ticket prices shortly before curtain time to fill empty seats are utilizing what type of pricing tactic? a. status quo pricing b. premium pricing c. cross-pricing d. complementary pricing e. dynamic pricing

e. dynamic pricing

Open Road Bicycles has chosen a market penetration strategy. As sales continue to grow, the company's costs continue to drop, allowing even further reductions in the price. This is due to a. markdowns. b. price lining. c. seasonal discounts. d. improvement value. e. experience curve effects.

e. experience curve effects.

The most common form of competition is ________Blank, in which many firms compete for customers in a given market but with differentiated products. a. oligopolistic competition b. market saturation c. pure competition d. competitive parity e. monopolistic competition

e. monopolistic competition

Sea Breeze Caribbean Cruise Lines deliberately prices its vacation packages above the prices set for competing products, to capture those customers who always shop for the best or for whom price does not matter. Sea Breeze is using a. target return pricing. b. target profit pricing. c. status quo pricing. d. competitive parity. e. premium pricing.

e. premium pricing.

A pizza parlor located on campus offers a student rate for its pizza lunch special. This is a form of a. predatory pricing and is legal. b. predatory pricing and is illegal. c. bait-and-switch pricing and is legal. d. price discrimination and is illegal. e. price discrimination and is legal.

e. price discrimination and is legal.

Which of these factors will tell Chao how changes in the price of her line of evening gowns will affect the quantity of gowns demanded? a. break-even analysis b. competitive parity c. target return pricing d. market-oriented pricing e. price elasticity of demand

e. price elasticity of demand