Principles of Marketing Ch.13 - SmartBook

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

[-] maximum units sold

Pricing involve specifying the role of price in an organization's marketing and strategic plans.

[-] objectives

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

[-] objectives; constraints

What element of the marketing mix has a unique role in that it is the place where all other business decisions come together?

[-] price

The percentage change in quantity demanded relative to a percentage change in price is known as .

[-] price elasticity of demand

Selling via the Internet reduces which pricing constraint?

[-] Cost of changing prices

Factors that limit the range of prices a firm may set are known as pricing .

[-] constraints

A unit volume objectives for pricing should be used judiciously because higher volume goals can sometimes result in .

[-] drastic price cutting that drives down profits

A manufacturer that uses coupons and other small price decreases to create large changes in demand is relying on a(n) demand for the product.

[-] elastic

When a 1 percent decrease in price produces more than a 1 percent increase in quantity sold, the product or service is .

[-] elastic

Current profit and target are two strategies used by firms that are pursuing a profit pricing objective.

[-] maximization; return

Value is defined as .

[-] perceived benefits divided by price

Fixed costs .

[-] remain at the same level despite changes in production

The three elements influencing the demand curve are consumer , consumer , and the price and availability of similar products.

[-] tastes; income

In an industry that has an oligopoly, price wars are likely to benefit only .

[-] the consumer

The newer a product and the earlier it is in its life cycle, .

[-] the higher the price that can usually be charged

The sum of fixed and variable costs is known as .

[-] total cost

Match the type of competitive market to its correct description: Pure Monopoly

[-] One seller who sets the price for a unique product

A firm with a sales objective will set prices at a level that generates more .

[-] revnues

What statement is accurate regarding variable costs?

[-] They are costs that change in direct relation with quantity produced and sold

Match the type of competitive market to its correct description: Monopolistic Competition

[-] Many sellers who compete on nonprice factors

Match the type of competitive market to its correct description: Pure Competition

[-] Many sellers who follow the market price for identical, commodity products

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

[-] Maximizing current profit

What is the definition of price?

[-] The money or other considerations exchanged for the ownership or use of a product.

The relationship between price and quantity sold is called the .

[-] demand curve

The ratio of perceived benefits to price is a product's .

[-] value

Creative marketers engage in when they increase product and service benefits while maintaining or decreasing price.

[-] value pricing

cost is the sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold.

[-] variable

Total cost represents .

[-] variable costs plus fixed costs

Which product category is the best example of an oligopoly?

[-] Large jetliners, which consists of just Boeing and Airbus

If a firm prices its products relatively low compared to the cost to develop, with the prospect of gaining a high market share, it is utilizing which profit-oriented pricing objective?

[-] Managing for long-run profits

Generally, a seller can charge a higher price for a product when .

[-] demand for the product is high

A demand curve enables a firm to examine prices .

[-] in terms of quantity sold

A demand curve is derived by measuring how many units of a product are sold at various .

[-] levels of price

A pricing objective of increasing sales can have the disadvantage of leading to price cuts that may .

[-] reduce the revenues of related products in the firm's line

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

[-] sales

A target return objective can be described as .

[-] setting a specific profit goal, say 20 percent

Match the type of competitive market to its correct description: Oligopoly

[-] Few sellers who are sensitive to each other's prices

Pricing objectives involves specifying the role of price in what two areas of an organization? [-] Its strategic plans [-] Its mission statement [-] Its marketing plans [-] Its organizational culture

[-] Its strategic plans [-] Its marketing plans

What two strategies can be used as part of a firm's profit objectives? [-] Maximizing current profits [-] Target return [-] Unit volume [-] Competitive parity

[-] Maximizing current profits [-] Target return

What is the order of competitive markets from most competitive to least competitive?

[-] Pure Competition [-] Monopolistic Competition [-] Oligopoly [-] Pure Monopoly

How do a firm's channel members affect the price a firm can charge for its products?

[-] The channel members must earn a profit, which raises the price

Why must a marketing manager consider pricing objectives and constraints?

[-] To narrow the range of choices among the variety of pricing strategies

Break-even analysis is a technique that analyzes the relationship between which two variables at various levels of output? [-] Total revenue [-] Maximum value [-] Total cost [-] Minimum cost

[-] Total revenue [-] Total cost

A break-even analysis chart shows the intersection of which two curves? [-] Variable costs [-] Fixed costs [-] Total revenue [-] Demand [-] Total costs

[-] Total revenue [-] Total costs

What four factors must be taken into consideration to determine the "right" price for a product? [-] What costs can we eliminate in order to make more money on the product? [-] Will the product provide a profit for the company? [-] What are customers willing to pay for the product? [-] Will it generate enough sales dollars to pay for the marketing of the product? [-] Will the product produce more money than competitors' products? [-] Will enough money be made to pay for the development and production of the product?

[-] Will the product provide a profit for the company? [-] What are customers willing to pay for the product? [-] Will it generate enough sales dollars to pay for the marketing of the product? [-] Will enough money be made to pay for the development and production of the product?

The - point is the quantity at which total revenue and total cost are equal.

[-] break-even

The point at which the number of units sold generates enough revenue to equal total costs is known as .

[-] break-even point

Compared to other company objectives, the sales objective .

[-] can be translated more easily into meaningful targets for marketing managers

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

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

[-] constraints

In the long run, a firm's and those of its distributors set a baseline for a product's price, allowing the firm to both survive and get its product to consumers.

[-] costs

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

[-] demand

cost is 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.

[-] fixed

Many Japanese car firms are willing to give up immediate profits for long-term penetration of the market. This is a pricing objective known as .

[-] managing for long-run profits

Which profit-oriented pricing objective is common in many firms because the targets can be set and performance measured quickly?

[-] maximizing current profit

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

[-] price

Break-even analysis can help evaluate the impact of changes in and on .

[-] price; costs; profit

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

[-] pricing constraints

Price elasticity of demand is expressed as percentage change in divided by the percentage change in .

[-] quantity demanded; price

Total is equal to the unit price for a product time the quantity oof it sold.

[-] revenue

When a board of directors determines a specific profit goal, marketing managers usually implement a(n) objective.

[-] target return

The intersection of the total revenue curve with the total cost curve on a graph of revenue/costs versus quantity is called .

[-] the break-even point

The three factors influencing the demand curve are consumer tastes, consumer income, and .

[-] the price and availability of similar products

Unit price times quantity sold equals .

[-] total revenue

According to the profit equation, profit equals .

[-] total revenue minus total cost

In the profit equation, what is multiplied by quantity sold?

[-] unit price

The pricing objective known as can be counterproductive if it is achieved by drastic price cutting that drives down profit.

[-] unit volume

At McDonald's, you can get several items together as a meal, for less than purchasing those items separately. This is an example of .

[-] value pricing