Chapter 12 Quiz

Which of the following statements about non-price competition is false?

Companies that use non-price competition do not need to keep track of their competitor's prices.

If Wrigley set its pricing objective as attaining 38 percent of the chewing gum market, what else would be needed to make this a true pricing objective?

Identification of a time period for accomplishment

At what point does a firm maximize profit?

The point at which marginal cost equals marginal revenue

If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur:

a marginal cost.

Abby is a marketing consultant who specializes in small businesses. Her current client is very interested in estimating the costs for the coming year, in order to find the break-even point. Abby knows this is an important financial statistic because below the break-even point, the firm operates:

at a loss.

When products in an industry are relatively homogeneous and price is a key purchase consideration:

competition-based pricing becomes more important.

When establishing prices, a marketer's first step is to:

develop pricing objectives.

To gain market share, when Hyundai first entered the U.S. car market it did so with a comparatively low pricing strategy. One of the negative side effects of making this pricing decision is:

difficulty raising the prices later.

Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing:

non-price competition.

If a product has an inelastic demand and the manufacturer raises its price:

total revenue will increase.