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