MKT Exam #3 Ch. 13

Profit formula...

(unit price x quantity sold) -( fixed cost + variable cost)

Market share can be measured as the ratio of ______________ compared to the total industry units sold

A firm's unit price The total competitors' units sold The firm's units sold. The average of competitors' unit price

When a successful new product is introduced to the market, the lack of competition removes...

A price constraint

The practice of exchanging products and services for other products and services rather than for money is called...

Barter

Compared to other company objectives, the sales objective...

Can be translated more easily into meaningful targets for marketing managers

Strategies that can be used as part of a firm's profit objectives include which two of the following?

Competitive parity Unit volume Target return. Maximizing current profits.

The three elements influencing the demand curve are...

Consumer tastes Consumer income Price and availability of similar product

A firm's prices are constrained in one way because it must cover all ____________ for producing and marketing a product

Costs

A product with a slight decrease in price resulting in a relatively large increase in demand or unit sold is a product with...

Elastic demand

Which of the following are types of competitive markets?

Elastic demand Monopolistic competition. Oligopoly. Barter System

Which two of the following are factors that cause price inelasticity?

Few available substitutes. Products are considered necessities. Price sensitive consumers Very expensive products

Executive salaries are a good example of a...

Fixed cost

Total cost is the sum of...

Fixed cost and variable cost

Despite the recent increases in gas prices, Americans have barely decreased their consumption, which is an example of...

Inelastic demand

The change in total revenue that results from producing and marketing on additional unit of a product is known as...

Marginal revenue

American firms are sometimes criticized for using which profit-oriented pricing objective, because it results in a short-term orientation?

Maximizing current profits

When there are many firms competing for customers in a given market, but the products are differentiated, it is known as...

Monopolistic competition

Pricing _________ frequently reflect corporate goals, while pricing _____________ often relate to conditions existing in the marketplace

Objectives; constraints

When only a few firms dominate a market it is known as what type of competition?

Oligopolistic

Patents and limited competition reduce __________, making high prices possible for technology products early in their life cycles

Pricing contraints. Objectives Monopolies Differentation

Marketing managers may identify profit, market share, social responsibility, or even survival as...

Pricing objectives

Firms that set _____________ objectives believe that increased revenues will in turn lead to increases in market share and profit

Sales

When a coffee purveyor chooses fair-trade coffee beans from its suppliers, its profits are often reduced. This is an example of _____________ as a pricing objective

Social responsibility

According to the price equation, to find the actual price, you should do which of the following to the list price?

Subtract extra fees Subtract incentives and allowances. Add incentives and allowances Add extra fees.

Consumers' zeal for low prices combined with the ease of making price comparisons on the Internet has resulted in many companies adding this to their list prices...

Surcharges

Which of the following may mean that the amount paid is not the same as the list price?

Surcharges. Hassles Donations Rebates. Discounts.

The pricing objective known as unit volume is based on what?

The quantity of product sold

Total revenue equals the product quantity sold times...

The unit price

Average revenue is...

Total revenue divided by quantity sold

A break-even analysis chart shows the intersection of which two curves?

Total revenue. Fixed costs Demand Total costs.

Break-even analysis analyzes the relationship between which two at various levels of output?

Total revenue. Total cost. Maximum value Minimum cost

Creative marketers engage in _____________ when they increase product benefits without change the price

Value-pricing

By increasing ____________ and holding all other variables constant, profit will decrease

Variable cost

Direct labor and materials are also known as

Variable costs

Price elasticity of demand

a measure of how sensitive consumer demand and the firm's revenues are to changes in the product's price

The cost of changing prices is a pricing constraint; as a result, most firms...

change the prices of their products more often if they sell online

Variable costs

change with production volume

Legal and regulatory issues and consumer demand are pricing _______________ that limit what a company can charge for its product

constraints

A demand curve enables a firm to examine prices...

in terms of quantity sold

Total revenue

is equal to the unit price for a product times the quantity of it sold

Marginal analysis

means that people, in business or personality, will continue to do something as long as the incremental return exceeds the incremental cost

The shape of the most typical demand curve is a...

negative-sloping curve

Movement along a demand curve implies

no changes have occurred in any demand factors except price

In a pure competition market, advertising...

only serves to inform buyers that the product is available

Value

perceived benefits divided by price

The money or other considerations exchanged for the ownership or use of a product or its service is...

price

A consumer's near-instantaneous access to competitors' prices for the same offering through the use of websites, "apps", and smartphones is known as...

price transparency

A firm must know its competitors' ______________ in order to best set its own goals

prices

When consumers perceive that different companies sell products that are commodities, it is known as...

pure competition

The break-even point

the quantity at which total revenue and total cost are equal

According to the profit equation, profit is...

total revenue minus total cost

At the break-even point, profit is...

zero

Consumer tastes and income are among the factors that determine their willingness and ability to pay for products and services. They are known as....

Demand factors

When the New York Mets set higher ticket prices for games versus the popular New York Yankees than for those versus the Pittsburgh Pirates, its pricing is constrained by...

Demand

Consumer tastes and income are among the factors that determine their willingness and ability to pay for products and services. They are known as...

Demand factors

A firm that chooses to automate its production changes the break-even analysis, though the ____________ costs may rise immediately, they will hopefully be offset by reduced _____________ costs in the longer run

Fixed; variable

When a company sees a profit goal of 20 percent for pretax ROI, it is using which type of pricing objective?

Managing for long profits Premium pricing Target return. Profit maximization

the change in total cost that results from producing and marketing one additional unit of a product is called...

Marginal cost

On a demand curve, one of the axes represents the price of a product while the other represents the...

the quantity sold

Fixed cost

the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold