Chapter 14 Assignment for Module 10

By focusing on target profit pricing, maximizing profits, or target return pricing, a firm is implementing a Blank______ orientation. Multiple choice question. competitor sales profit customer

profit

By focusing on target profit pricing, maximizing profits, or target return pricing, a firm is implementing a Blank______ orientation. Multiple choice question. profit competitor sales customer

profit

The graph that shows how many units of a product or service consumers will want during a specific period at different prices is known as the Blank______ curve. Multiple choice question. consumer price versus sales demand supply

demand

Competition, channel members, costs, customers, and company objectives are the five critical components of Blank______. Multiple choice question. variety promotion quality pricing

pricing

What type of orientation is exemplified by target return pricing? Multiple choice question. Customer Sales Profit Competitor

profit

Pricing is difficult to manage because it is the least Blank______ of the four Ps. Multiple choice question. important understood variable relevant

understood

Which of the following best describes how managers have historically treated pricing? Multiple choice question. As a way to control markets As a way to trick competitors As an afterthought As their primary objective

As an afterthought

Assuming the economy and other factors stay the same, a downward-sloping demand curve for a product shows which of the following? (Check all that apply.) Multiple select question. As price increases, demand decreases. As price decreases, demand increases. As price decreases, demand decreases. As price increases, demand increases.

As price decreases, demand increases. As price increases, demand decreases.

Firms usually implement target BLANK 1 BLANK 2 to stimulate a certain level of sales at a certain profit per unit. (Enter one word in each blank.)

BLANK 1: Profit BLANK 2: Pricing

Under competitive BLANK, companies set their prices close to those of their major competitors.

BLANK: Parity

With BLANK quo pricing, companies change their prices only to meet those of their competitors.

BLANK: Status

Generating high-value perceptions among consumers in order to set a higher-than-average price is known as BLANK pricing.

BLANL: Premium

Which of the following are considered part of the five Cs of pricing? (Choose every correct answer.) Multiple select question. Change management Charter membership Competition Company objectives Customers Channel members

Company objectives, Customers, Competition, Channel members (not included in list was customers)

What kind of pricing is being used when a firm sets prices similar to major rivals' prices? Multiple choice question. Comprehensive Premium pricing Target profit pricing Competitive parity

Competitive parity

What type of orientation has a firm adopted when it measures itself primarily against firms that challenge it for customers? Multiple choice question. Customer Profit Competitor Sales

Competitor

Which of the following types of theories is the maximizing profits strategy based on? Multiple choice question. Political Economic Psychological Social

Economic

A firm may set low prices to do which of the following? (Choose every correct answer.) Multiple select question. Discourage new firms from entering the market Take market share away from competitors Encourage current firms to leave the market Encourage new competitors to the market Expand the entire market for additional firms

Encourage current firms to leave the market, take market share away from competitors, discourage new firms from entering the market.

How do consumers generally describe the role of price in their purchase decisions? Multiple choice question. Somewhat important Not very important Extremely important Totally irrelevant

Extremely important

What is the role of price in a consumer's purchase decision? Multiple choice question. It is one of the last steps. It is one of the least time-consuming factors. It is one of the least important factors. It is one of the most important factors.

It is one of the most important factors.

Which of the following do companies take into account when engaging in dynamic pricing? (Choose every correct answer.) Multiple select question. Level of demand Competitive parity Type of customer Time of day

Level of demand Type of customer Time of day

Which of the following is a firm implementing when it uses a mathematical model to identify the price at which the firm will make the most money possible? Multiple choice question. Target return pricing strategy Target profit pricing strategy Competitive parity Maximizing profits strategy

Maximizing profits strategy

Which of the following are types of strategies that could be implemented in a profit orientation strategy? (Choose every correct answer.) (Choose every correct answer.) Multiple select question. Target return pricing Status quo pricing Maximizing profits strategy Sales orientation strategy

Maximizing profits, target return pricing

What type of pricing is a firm using when it deliberately prices a product above the prices set for competing products to entice those customers for whom pricing does not matter? Multiple choice question. Target-return Premium Target-profit Competitive

Premium

Drag each of the following examples to the type of price elasticity it represents. Price Insensitive <-> ? Price Sensitive <-> ? Options:

Price Insensitive <-> Apple increases the price of the new iPhone by 25% and sales decrease less than 1%. Price Sensitive <-> ?

Which of the following is an example of a monetary sacrifice included in the overall price of a product or service? Multiple choice question. Effort Competition Time Shipping

Shipping

Firms engaged in competitor orientation might use which of the following strategies? (Choose every correct answer.) Multiple select question. Status quo pricing Competitive parity Premium pricing Target return pricing

Status quo pricing Competitive parity

Which of the following accurately characterize demand curves? (Choose every correct answer.) Multiple select question. They relate demand to prices while assuming everything else remains unchanged. They are identical for all products and services in a given industry. They are completely accurate prediction models over long periods of time. They show how much consumers will demand during a specific period at different prices.

They relate demand to prices while assuming everything else remains unchanged. They show how much consumers will demand during a specific period at different prices.

What is an example of a nonmonetary sacrifice made in acquiring a product or service? Multiple choice question. Travel expenses Shipping and handling Taxes Time

Time

Status quo pricing Blank______. Multiple choice question. stays the same despite competitors' prices changes prices only to meet those of competition does the opposite of the competition to generate increased profits leads the competition in setting prices

changes prices only to meet those of competition

For most products, demand increases as the price decreases. Because of this general trend, demand curves usually have a(n) Blank______ slope. Multiple choice question. horizontal vertical upward downward

downward

When a 10% decrease in price produces more than a 10% increase in quantity sold, the product or service is responsive to price changes and is considered to be Blank______. Multiple choice question. unaffected inelastic in high demand elastic

elastic

If a restaurant reduces the price of a hamburger by 25% and sales increase by more than 50%, which of the following describe the demand for the hamburger? (Choose every correct answer.) Multiple select question. elastic price sensitive price insensitive inelastic

elastic price sensitive

If a company needs to raise the prices of some its products, it should choose to raise the prices of Blank______ products because relatively fewer customers will stop buying the product as a result. Multiple choice question. elastic inelastic commodity moderately priced

inelastic

When a 10% decrease in price results in a less than 10% increase in quantity sold, the demand for the product or service is described as Blank______. Multiple choice question. price sensitive inelastic elastic commodity-like

inelastic

Loyalty toward a particular brand makes other brands seem less substitutable, which decreases Blank______. Multiple choice question. the price elasticity of demand the overall price the complementary nature of demand the inelastic nature of demand

price elasticity of demand

Compared to other company objectives, a sales-oriented firm Blank______. Multiple choice question. sets market share gains as a priority bases its prices on the prices charged by other firms in the market sets prices very low to generate new sales, even if profits suffer works to reach a particular profit goal

sets prices very low to generate new sales, even if profits suffer

What term describes consumers' ability to replace the focal brand with other products? Multiple choice question. Income effect Substitution effect Price elasticity of demand Cross-price elasticity

substitution effect

When a firm is aiming for a particular amount of profit as its overriding concern, it usually implements Blank______. Multiple choice question. premium pricing target return pricing the maximizing profits strategy target profit pricing

target profit pricing

Firms that are less concerned with the level of profits and more interested in the rate at which profits are generated relative to their investments tend to use Blank______. Multiple choice question. competitive parity target return pricing premium pricing contribution per unit calculations

target return pricing