Marketing Chapter 12

Which of the following price bases is mostly likely to be used for commercial construction projects or custom made equipment? -demand-based pricing -yield management -cost-plus pricing -markup pricing -competition-based pricing

cost-plus pricing

Which of the following charges the same price to all customers regardless of geographic location, and the price is based on average shipping costs for all customers? -zone pricing -freight absorption pricing -uniform geographic pricing -base-point pricing -F.O.B. destination pricing

uniform geographic pricing

Firefly Space Shuttles is using a strategy of maximizing revenues by making numerous price changes in response to demand, competitors' prices, or environmental conditions. This is best described as _____. -cost-based pricing -yield management -cost-plus pricing -markup pricing -competition-based pricing

yield management

The Federal Trade Commission has established guidelines for _______: If the higher price against which the comparison is made is the price formerly charged for the product, the seller must have made the previous price available to customers for a reasonable time period. -comparison discounting -reference pricing -special-event pricing -bait pricing -price leaders

comparison discounting

Which of the following shows the quantity of products a firm expects to sell at various prices if other factors remain constant? -demand line -marginal analysis -break-even point -reference price -demand curve

demand curve

ACME Corp.'s widgets have elastic demand. If ACME raises the price of widgets, what will be the result? -a decrease in total revenue -a decrease in product inventory - a decrease in market share -an increase in market share -an increase in total revenue

a decrease in total revenue

Spacely Inc.'s sprockets have inelastic demand. If Spacely raises the price of sprockets, what will be the result? -a decrease in product inventory -a decrease in total revenue -a decrease in market share - an increase in market share - an increase in total revenue

an increase in total revenue

Which of the following should be accomplished after developing pricing objectives? -selecting a basis for pricing -assessing the target market's evaluation of price -determining a specific price -evaluating competitors' prices -selecting a pricing strategy

assessing the target market's evaluation of price

Which of the following is calculated by dividing the variable costs by the number of units produced? -marginal cost -average variable cost -average fixed cost -break-even point. -average total cost

average variable cost

Which of the following is the point at which the costs of producing a product equals the revenue made from selling the product? -marginal cost - break-even point -demand curve -marginal revenue -fixed cost

break-even point

Which of the following pricing strategies sets the basic product in a product line low, but the price on the items required to operate or enhance it are higher? -premium pricing -captive pricing -bait pricing -reference pricing -price lining

captive pricing

ACME Corp. offers a price discount to encourage prompt payment. Which of the following is it likely to use? -cash discount -trade discount -seasonal discount -quantity discount -allowance

cash discount

Which of the following is often used by producers of relatively homogeneous products, especially when the target market considers price to be an important purchase consideration? -markup pricing -cost-plus pricing -cost-based pricing -competition-based pricing -demand-based pricing

competition-based pricing

Kara Thrace operates a service business that engages in systematically collecting data on brands and prices at competitors' stores. For which stage of the price establishment process would this service be most appropriate? -evaluating competitors' prices -assessing the target market's evaluation of price -developing pricing objectives -selecting a basis for pricing -selecting a pricing strategy

evaluating competitors' prices

Assume a retailer purchases a can of premium dog food at $2.25 and adds 75 cents to the cost, making the price $3. What is the markup as a percentage of selling price? -5% -33% -50% -25% -100%

25%

A business's rental of production space is an example of a _____. -marginal cost -total cost -variable cost -fixed cost -break-even point

fixed cost

ACME has a pricing objective to increase its primary product's sales relative to total industry sales. This is best describe as a(n) _____. -cash flow objective -product quality objective -status quo objective -market share objective -return-on-investment objective

market share objective

A business' Presidents Day sales are an example of _____. -periodic discounting -penetration pricing -secondary-market pricing -price skimming -negotiated pricing

periodic discounting

Which pricing strategy provides the most flexible introductory base price? -penetration pricing -price skimming -captive pricing -periodic discounting -premium pricing

price skimming

Which of the following objectives is likely to be more expensive for a firm as the cost of materials and research and development may be greater? -cash flow -market share -profit - product quality - status quo

product quality

Which of the following product-line pricing strategies is NOT generally used for business products? -psychological pricing -captive pricing -negotiated pricing -premium pricing -price lining

psychological pricing

Which of the following pass on to a business customer the cost savings gained through lower per-unit selling costs of larger orders? -quantity discounts -allowances -seasonal discounts - cash discounts -trade discounts

quantity discounts

Which of the following pricing objectives can reduce a firm's risks by helping to stabilize demand for its products? -market share -cash flow -status quo -product quality -profit

status quo

A major reason why the final price may be different than what may result from the remaining steps in the price setting process is -the final price has to be adjusted to be consistent with industry practices. -competitors' prices are higher and thus the final price must be raised. -competitors' prices are higher and therefore the final price has to be lowered. -the price resulting from the other steps in the pricing process is too low. -customers would not pay a price resulting from a pricing strategy because that price is too high.

the final price has to be adjusted to be consistent with industry practices.