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price consideration and approach mcqs

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Question;1. The price of an executive is a _____, the price of a salesperson is a _____, and the price of a worker is a _____.a. commission, wage, salaryb. wage, commission, salaryc. salary, wage, commissiond. salary, commission, wage2. _____ is the amount of money charged for a product or service.a. Experience curveb. Demand curvec. Priced. Wage3. Little Roses? Floral Design sells flowers at one set price to all buyers. What is this an example of?a. total costsb. fixed costsc. variable costsd. dynamic pricing4. Big Mike?s Health Food Store sells nutritional energy-producing foods. The price of the products sold varies according to individual customer accounts and situations. For example, long-time customers receive discounts. This strategy is an example of _____.a. price elasticityb. cost-plus pricingc. dynamic pricingd. value pricing5. Price is the only element in the marketing mix that produces _____.a. revenueb. variable costsc. expensesd. fixed costs6. Companies set _____ as their major objective if they are troubled by too much capacity, heavy competition, or changing consumer wants.a. current profit maximizationb. survivalc. market share leadershipd. product quality leadership7. Lawnmowers of Chicago is a landscaping company established throughout the American Midwest. Upon entering a new community, lower prices are asked for their services. After gaining a respectable reputation in a new area, prices are gradually increased. Starting a business in this manner is an example of which marketing objective?a. current profit maximizationb. market share leadershipc. product quality leadershipd. survival8. Firms set prices as low as possible in order to become the _____.a. product quality leaderb. market share leaderc. customer quality leaderd. profit maximization leader9. Caterpillar charges 20 percent to 30 percent more than competitors for its heavy construction equipment based on superior product and service quality. This is an example of _____.a. survivalb. current profit maximizationc. market share leadershipd. product quality leadership10. Companies may set prices low for which of the following reasons?a. to prevent competition from entering the marketb. to stabilize the marketc. to create excitement for a productd. all of the above11. Which of the following pricing objectives is most used by a university?a. partial cost recoveryb. full cost recoveryc. social priced. cost-plus pricing12. Swatch surveyed the market and identified an unserved segment of watch buyers. Using these results, they created a watch at a price consumers were willing to pay. The unorthodox order of this marketing mix decision is an example of _____.a. competition-based pricingb. cost-plus pricingc. target costingd. value-based pricing13. Johnson Controls produces climate-control systems for office buildings. Research showed that customers were more concerned about the total cost of installing and maintaining a system than its initial price. This knowledge is an example of _____, which the company may use to become more competitive.a. target costingb. value pricingc. cost-plus pricingd. a nonprice position14. Costs that do not vary with production or sales level are referred to as _____.a. fixed costsb. variable costsc. target costsd. total costs15. Costs that vary directly with the level of production are referred to as _____.a. fixed costsb. variable costsc. target costsd. total costs16. _____ are the sum of the _____ and _____ for any given level of production.a. Fixed costs, variable, total costsb. Fixed costs, total, variable costsc. Variable costs, fixed, total costsd. Total costs, fixed, variable costs17. SRAC is an acronym for _____.a. strategic reasoning and costsb. short-run accounting costsc. short-run average cost curved. strategic rights and company18. Fixed costs _____ as number of units produced increases.a. decreaseb. increasec. divide in halfd. remain the same19. The long-run average cost curve (LRAC) helps the producer understand which of the following?a. It shows how large a business should be, to be most efficient.b. It deals mainly with competitor?s prices.c. It deals mainly with external factors.d. none of the above20. As production experience increases, the average cost per unit decreases. This drop is called the _____.a. demand curveb. experience curvec. short-run average cost curved. long-run average cost curve21. When a downward-sloping experience curve exists, a company should usually ______ the selling price of that product, in order to bring in higher revenues.a. increaseb. greatly increasec. decreased. not alter22. Price setting is usually determined by ______ in small companies.a. top managementb. marketing departmentsc. sales departmentsd. divisional managers23. Price setting is usually determined by _____ in large companies.a. top managementb. divisional managersc. product line managersd. both b and c24. In industrial markets, _____ has the final say in setting the pricing objectives and policies of that company.a. the sales managerb. top managementc. the production managerd. the finance manager25. Which of the following falls under the category of an industrial company?a. bubble gum producersb. furniture producersc. steel producersd. clothing producers26. Which of the following is an external factor that affects pricing decisions?a. the salaries of production managementb. competitionc. the salaries of finance managementd. funds expensed to clean production equipment27. Under _____, the market consists of many buyers and sellers trading in a uniform commodity such as wheat, copper, or financial securities.a. pure competitionb. monopolistic competitionc. oligopolistic competitiond. pure monopoly28. In Lima, Peru, twenty stores specializing in selling the same quality and brand of wheat products are located on one street. An individual seller cannot charge more than the going price without the risk of losing business to the other stores that are still selling the product at its uniform price. This is an example of what type of market?a. pure competitionb. monopolistic competitionc. oligopolistic competitiond. pure monopoly29. Under _____, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.a. pure competitionb. monopolistic competitionc. oligopolistic competitiond. pure monopoly30. Under _____, the market consists of a few sellers who are highly sensitive to each other?s pricing and marketing strategies.a. pure competitionb. monopolistic competitionc. oligopolistic competitiond. pure monopoly31. In _____, competition is not a price setting consideration.a. Bob?s Shiny Copper Productsb. Kinko?sc. Randy Rotsky?s Car Salesd. The U.S. Postal Service32. Nonregulated monopolies are free to price at what the market will bear. However, they do not always charge the full price for a number of reasons. What is not one of those reasons?a. They desire to attract competition.b. They desire to penetrate the market faster with a low price.c. They have a fear of government regulation.d. They want to encourage government regulations.33. If customers perceive that the price is greater than the product?s value, they will buy it, but the seller loses _____.a. target costb. price elasticityc. profit opportunitiesd. break-even pricing34. The relationship between the price charged and the resulting demand level can be shown as the _____.a. demand curveb. variable costc. target costd. break-even pricing35. When Gibson Guitar Corporation lowered its prices to compete more effectively with Japanese rivals, why did they not sell more guitars?a. The Gibson guitars were not as well made as the Japanese guitars.b. The market was already flooded with guitars.c. The sound of the Gibson guitar was not as good as the Japanese guitars.d. Customers were unable to distinguish the superiority of the Gibson guitar when it was at a lower price.36. _____ is how responsive demand will be to a change in price.a. Price elasticityb. Break-even pricingc. Demand curved. Target cost37. If demand hardly changes with a small change in price, we say the demand is _____.a. variableb. inelasticc. value-basedd. at break-even pricing38. If demand changes greatly with a small change in price, we say the demand is _____.a. inelasticb. variablec. elasticd. value-based39. When we are talking about price elasticity of demand, the less elastic the demand, the more it pays for the seller to _____.a. drop the priceb. raise the pricec. leave the price where it isd. discontinue the item40. Buyers are less price sensitive for all of the following reasons except _____.a. when the product they are buying is uniqueb. when the product they are buying is in high demandc. when substitute products are hard to findd. when the total expenditure for a product is high relative to their income41. By pledging to be a leader in providing clean, renewable energy sources and developing products and services that help consumers protect the environment, Green Mountain Power competes successfully against ?cheaper? brands that focus on more price-sensitive consumers. They have the firm belief that even kilowatt hours can be _____.a. cost-plus pricedb. a demand curvec. differentiatedd. value-based priced42. If Cannon Camera Company follows a high-price, high-margin strategy, what will likely happen to other companies such as Nikon, Minolta, and Pentax?a. They will go out of business.b. They will want to compete against Cannon.c. They will advertise less.d. none of the above43. If Cannon Camera Company follows a low-price, low-margin strategy, what will likely happen to other companies such as Nikon, Minolta, and Pentax?a. They will not be able to compete or it may drive them out of the market.b. They will want to compete against Cannon.c. They will advertise less.d. none of the above44. When setting prices, the company also must consider other factors in its external environment. _____ can have a strong impact on the firms pricing strategies. This includes factors such as boom or recession, inflation, and interest rates affecting pricing decisions.a. Demand curveb. Economic conditionsc. Target costingd. Value-based pricing45. When setting prices, the company also must consider other factors in its external environment. How will _____ react to various prices? The company should set prices that will allow these people to receive a fair profit.a. resellersb. producersc. consumersd. the elderly46. When companies set prices, the government and social concerns are two _____ affecting pricing decisions.a. external factorsb. internal factorsc. economic conditionsd. demand curves47. Product costs set a(n) _____ to the price.a. demand curveb. experience curvec. floord. learning curve48. Consumer perceptions of the products value set the _____.a. demand curveb. floorc. ceilingd. variable cost49. Companies set prices by selecting a general pricing approach that includes one or more of three sets of factors. One of these is the cost-based approach which means _____.a. value-based pricingb. going-rate and sealed-bid pricingc. cost-plus pricing, break-even analysis, and target profit pricingd. none of the above50. Companies set prices by selecting a general pricing approach that includes one or more of three sets of factors. One of these is the buyer-based approach which means _____.a. value-based pricingb. going-rate and sealed-bid pricingc. cost-plus pricing, break-even analysis, and target profit pricingd. none of the above51. Companies set prices by selecting a general pricing approach that includes one or more of three sets of factors. One of these is the competition-based approach which means _____.a. value-based pricingb. going-rate and sealed-bid pricingc. cost-plus pricing, break-even analysis, and target profit pricingd. none of the above52. Lawyers, accountants, and other professionals typically price by adding a standard markup for profit. This is known as _____.a. variable costsb. cost-plus pricingc. value-based priced. break-even price53. _____ pricing works only if that price actually brings in the expected level of sales.a. Elasticityb. Markupc. Variabled. Inelasticity54. What is one reason that markup pricing is not practical?a. Sellers earn a fair return on their investment.b. By tying the price to cost, sellers simplify pricing.c. When all firms in the industry use this pricing method, prices tend to be similar.d. This method ignores demand.55. When all firms in the industry use this pricing method, prices tend to be similar.a. markup pricingb. variable pricingc. inelasticity pricingd. elasticity pricing56. When all firms in the industry use this pricing method, price competition is minimized.a. variable pricingb. markup pricingc. elasticity pricingd. inelasticity pricing57. Many people feel that _____ pricing is fairer to both buyers and sellers. Sellers earn a fair return on their investment but do not take advantage of buyers when buyers? demand becomes great.a. variableb. markupc. elasticityd. inelasticity58. Break-even pricing, or a variation called _____ is when the firm tries to determine the price at which it will break even to make the profit it is seeking.a. competition-based pricingb. target profit pricingc. fixed costd. value-based pricing59. Target pricing uses the concept of a _____, which shows the total cost and total revenue expected at different sales volume levels.a. value-based chartb. break-even chartc. competition-based chartd. demand curve60. As a manufacturer increases price, _____ volume drops.a. targetb. break-evenc. cost-plus pricingd. total cost61. As a manufacturer increases price, _____ for their product falls off.a. cost-plus pricingb. value-based pricingc. demandd. the experience curve62. _____ uses buyers? perceptions of what a product is worth, not the seller?s cost, as the key to pricing.a. Value-based pricingb. Target costingc. Variable costsd. Price elasticity63. In _____, price is considered along with the other marketing mix variables before the marketing program is set.a. target pricingb. value-based pricingc. variable costsd. price elasticity64. _____ pricing is product driven. The company designs what it considers to be a good product, totals the expenses of making the product, and sets a price that covers costs plus a target profit.a. Value-basedb. Fixed costc. Cost-basedd. Variable65. Value-based pricing is the reverse process of what?a. variable cost pricingb. cost-plus pricingc. cost-based pricingd. none of the above66. In _____ price is set to match consumers? perceived value.a. variable cost pricingb. cost-plus pricingc. cost-based pricingd. value-based pricing67. Measuring _____ can be difficult. A company might conduct surveys to test this of the different products they offer.a. price elasticityb. demand curvec. perceived valued. break-even pricing68. Under-priced products sell very well, but they produce less revenue than they would have if price were raised to the _____ level.a. perceived valueb. value-basedc. variabled. demand curve69. During the past decade, marketers have noted a fundamental shift in consumer attitudes toward price and quality. How is this shift defined?a. Give customers more for less.b. Give customers more symbols.c. Customers demand higher quality products.d. Customers want more selection.70. When Taco Bell and McDonald?s offer meals at a lower price than what it would cost to purchase each individual item from the meal it is called _____.a. break-even pricingb. target profit pricingc. value pricingd. cost-plus pricing71. _____ involves redesigning existing brands in order to offer more quality for a given price or the same quality for less.a. Break-even pricingb. Target pricingc. Value pricingd. Cost-plus pricing72. _____ is a company?s power to maintain or even raise prices without losing market share.a. Variable costb. Pricing powerc. Target costd. Fixed cost73. To maintain a company?s _____, a firm must retain or build the value of its marketing offer.a. variable costb. pricing powerc. target costd. fixed cost74. When there is intense price competition, many companies adopt _____ rather than cutting prices to match competitors.a. pricing powerb. value-added strategiesc. fixed costsd. price elasticity75. What is the important type of value pricing that Wal-Mart uses?a. competition-based pricingb. EDLPc. cost-plus pricingd. break-even pricing76. _____ involves charging a constant, everyday low price with few or no temporary price discounts.a. High-low pricingb. Target pricingc. Cost-plus pricingd. EDLP77. What is the type of pricing that Kmart uses?a. EDLPb. variable pricingc. high-low pricingd. target pricing78. Retailers adopt EDLP for many reasons. The most important of which is that _____.a. constant sales and promotions are costly and have eroded consumer confidence in the credibility of everyday shelf pricesb. running frequent promotions to lower prices temporarily on selected items brings more customers into their storesc. when their level of production is up, they can charge more for their productsd. none of the above79. Some reasons that consumers like _____ so well are because consumers have less time and patience for such time-honored traditions as watching for supermarket specials and clipping coupons.a. variable pricingb. high-low pricingc. EDLPd. break-even80. Why did Kmart?s strategy to follow Wal-Mart?s EDLP fail?a. Kmart had too much inventory.b. Because Kmart had no friendly greeters at their doors.c. Because Wal-Mart?s expenses are only 15 percent of sales.d. Because K-mart customers demanded high-low pricing.81. One form of _____ is going-rate pricing, in which a firm bases its price largely on competitors? prices, with less attention paid to its own costs or to demand.a. EDLPb. cost-plus pricingc. break-even pricingd. competition-based pricing82. One form of competition-based pricing is _____, in which a firm bases its price largely on competitors? prices, with less attention paid to its own costs or to demand.a. EDLPb. going-rate pricingc. cost-plus pricingd. break-even pricing83. _____ is used when firms feel that this price represents the collective wisdom of the industry concerning the price that will yield a fair return.a. Going-rate pricingb. EDLPc. Cost-plus pricingd. Break-even pricing84. Firms feel that holding to _____ will prevent harmful price wars.a. sealed-bid pricingb. the demand curvec. price elasticityd. the going price85. Using _____, a company bases its price on how it thinks competitors will price rather than on its own costs or on the demand.a. sealed-bid pricingb. cost-plus pricingc. dynamic pricingd. market share leadership86. _____ remains an important element in the marketing mix. It is the only element that produces revenue, all other elements represent costs.a. Current profit maximizationb. Market share leadershipc. Priced. Product quality leadership87. Common _____ objectives include survival, current profit maximization, market share leadership, and product quality leadership.a. pricingb. managementc. marketing mixd. cost-plus pricing88. _____ usually sets pricing policies and approves proposed prices.a. A customerb. Accounting managementc. Finance managementd. None of the above89. _____ that influence pricing decisions include the nature of the market and demand, competitors? prices and offers, and factors such as the economy, reseller needs, and government actions.a. Internal factorsb. Elasticityc. External factorsd. Target factors90. The more _____ the demand, the higher the company can set its price.a. elasticb. externalc. internald. inelasticTrue and False91. Fixed price policies ? setting one price for all buyers ? is a relatively ancient idea.92. Many companies handle pricing wel93. Pricing often plays an important role in helping to accomplish a company?s multi-level objectives.94. In general, nonprofit and public organizations use only one pricing objectiv95. Target costing reverses the usual marketing process.96. The success of Swatch in selling watches demonstrates that only highly priced products will survive in the modern market.97. The majority of customers make their purchases based on price alone, regardless of the benefits received for the price paid.98. Overhead cost is another term for variable cost.99. Average cost increases with accumulated production experience.100. A downward-sloping experience curve is beneficial for a company.101. In industrial markets, salespeople outrank top management in determining the sales price of products.102. In industrial markets, product managers have an influence on the company?s price setting decisions.103. Environmental elements are categorized as external factors that affect pricing decisions.104. Marketers may learn a few simple rules that apply equally to all price-demand relationships.105. A government monopoly can pursue a variety of pricing objectives.106. Nonregulated monopolies do not always charge the full price because they do not desire to attract competition.107. The demand curve shows the number of units the market will buy in a given time period at different prices that might be charged. In normal cases, the higher the price, the higher the demand.108. If demand changes greatly, we say the demand is inelastic.109. The more elastic the demand, the more it pays for the seller to raise the price.110. If Canon Camera Company follows a high-price, high-margin strategy, it may attract competition from Nikon, Minolta, and Pentax.111. Product costs set a floor to the price, consumer perceptions of the product?s value set the ceiling.112. The simplest pricing method is break-even pricing?adding a standard markup to the cost of the product.113. Markup pricing is popular because it simplifies pricing by basing the price on the buyers? perceptions of value.114. Target profit pricing is when the firm tries to determine the price at which it will break even or make the profit it is seeking.115. Value-based pricing is when costs vary directly with the level of production.116. Value-based pricing is the reverse of cost-based pricing.117. During the past decade, there has been a fundamental shift in consumers? attitudes toward price and quality. This attitude is ?We want more brand names!?118. EDLP is very similar to competition-based pricing.119. Competitors? prices and offers are external factors that companies have to deal with.120. Demand and consumer value perceptions set the floor for prices.121. A company must learn the price and quality of competitors? offers and use them as a starting point for its own pricing.122. Cost-based pricing relies on consumer perception of value to drive pricing decisions.

 

Paper#44050 | Written in 18-Jul-2015

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