Question 1

Figure 11-2
-Figure 11-2 above represents the four approaches to selecting an appropriate price level."A" represents which approach?

Accepted Answer

The answer of  Figure 11-2
-Figure 11-2 above represents the...

Question 2

To increase value,marketers may __________,decrease price,or do both.

Accepted Answer

To increase value, marketers should increase benefits or provide added value to the product. Decreasing the price can also increase perceived value, but this may not always be feasible or profitable for the company. Increasing price may not necessarily increase perceived value if the benefits do not justify the cost. Increasing advertising may also help increase awareness and knowledge about the product, but it does not directly impact perceived value. Doing nothing and relying on the product to increase in perceived value as it matures may not always be successful and can lead to missed opportunities for adding value.

Question 3

A firm's profit equation equals

Accepted Answer

The profit equation is found by subtracting total cost from total revenue. This can be written as [(Unit price × Quantity sold)− (Fixed cost + Variable cost)]. Therefore, the correct choice is B.

Question 4

If you wanted to buy a McDonald's Big Mac,small fries,and a small drink separately,it will you cost you $6.19.However,if you purchased these three items together as part of the firm's Extra Value Meal package,you would pay only $4.39,savings 80¢.This "Extra Value Meal" price serves as __________ to you and other consumers,who compare the costs and benefits of substitute items to a bundle containing those items.

Accepted Answer

The "Extra Value Meal" price serves as a reference value for consumers, who can compare the costs and benefits of buying individual items versus the bundle package. This is not a marginal analysis, profit equation, break-even analysis, or price elasticity of demand, as those concepts are not directly related to the comparison of bundled versus individual items.

Question 5

Tesla Roadster Sport Photo
-Suppose you want to get "plugged in" and buy a Tesla Roadster Sport (see the photo above),the world's leading all-electric,zero-emission car that has a 245-mile range and can be recharged in three hours.The Tesla Roadster Sport has a list price of $110,000,but you want several options (leather interior,carbon fiber hard top,electronics upgrade,metallic paint,performance wheels,and others)that will cost $20,000.An extended warranty will add an additional $5,000.However,if you put $50,000 down now and finance the balance over the next year,you will receive a dealer rebate of $3,500 off the list price.The dealer will give you a $4,000 trade-in allowance for your 2005 Honda Civic DX four-door sedan.In addition,you will have to pay a state sales tax of $10,000,an auto registration fee of $500 to the state,and a $500 destination charge to ship the car.But because the Tesla Roadster Sport is an alternative energy vehicle,you qualify for a $2,500 state rebate and a $7,500 federal tax credit! Finally,your total finance charge is $2,500.Applying the price equation,what is your final price for the Tesla Roadster Sport?

Accepted Answer

List price: $110,000
Options: $20,000
Warranty: $5,000
Subtotal: $135,000
Dealer rebate: -$3,500
Trade-in allowance: -$4,000
State sales tax: +$10,000
Auto registration fee: +$500
Destination charge: +$500
State rebate: -$2,500
Federal tax credit: -$7,500
Finance charge: +$2,500

Final price: $131,000

Question 6

A company that manages apartments decides to buy 15 new dishwashers at a list price of $550 each as replacements for old dishwashers in a small apartment complex it owns.Because the company is buying more than 10 dishwashers,it is eligible for a $150-per-unit quantity discount.Financing charges total $20 per unit.The company gets $10 per dishwasher for the 15 dishwashers traded in.What is the final price the company will pay for each dishwasher (not the total cost)?

Accepted Answer

The initial price per dishwasher is $550. However, since the company is buying more than 10, they are eligible for a $150 quantity discount, so the price per dishwasher goes down to $400.

Then, financing charges of $20 per unit are added, bringing the price up to $420 per dishwasher.

Finally, the company gets a trade-in credit of $10 per dishwasher, so that reduces their cost to $410 per dishwasher. Thus, the final price the company will pay for each dishwasher is $410.

Question 7

The __________ equation = (Unit price × Quantity sold)− Total cost.

Accepted Answer

The equation given in the options is the profit equation, as it calculates the profit earned by deducting the total cost from the revenue generated by selling a product. Therefore, option D is the correct choice. The other options are:
A) Total revenue equation calculates the total amount received from selling a product and is given by Total revenue = Unit price x Quantity sold. 
B) Variable cost refers to costs that vary with the production or sale of a product.
C) Net present value is a measure of the profitability of an investment and is calculated by subtracting the present value of cash outflows from the present value of cash inflows.
E) Break-even point is the level of sales at which the revenue generated is equal to the total cost incurred, and there is no profit or loss. It is calculated by dividing the total fixed cost by the contribution margin per unit.

Question 8

To increase value the most,marketers should

Accepted Answer

To increase value, marketers should decrease the price and increase the benefits. By doing so, customers will perceive a greater value for the product or service, which can lead to increased sales and customer loyalty. Decreasing benefits or increasing the price may lead to a decrease in perceived value and ultimately, lower sales. Doing nothing and relying on the item to increase in perceived value as it matures in its life cycle is not a proactive approach and may not be effective.

Question 9

Tara is enrolled for spring semester at college.The tuition is $6,000,but she has a scholarship for $1,000 as well as a work-study grant of $1,500.The health fees and student activity fees are $150 for the semester.What is the final price that Tara will pay for the spring semester?

Accepted Answer

The answer of Tara is enrolled for spring semester at...

Question 10

The ratio of perceived benefits to __________ is referred to as value.

Accepted Answer

The answer of The ratio of perceived benefits to __________...

Question 11

The ratio of perceived benefits to price is referred to as

Accepted Answer

The answer of The ratio of perceived benefits to price...

Question 12

The key to setting a final price for a product is finding an approximate price level to use as a reasonable starting point.Four common approaches to selecting an approximate price level are: (1)demand-oriented; (2)cost-oriented; (3)profit-oriented; and (4)__________ approaches.

Accepted Answer

The missing approach in this list is competition-oriented. This approach involves looking at the prices of other products in the same market and positioning the product's price in relation to those competitors.

Question 13

The key to setting a price for a product is finding an approximate price level to use as a reasonable starting point.Four common approaches to selecting an approximate price level are: (1)demand-oriented; (2)cost-oriented; (3)__________; and (4)competition-oriented approaches.

Accepted Answer

The answer of The key to setting a price for...

Question 14

A reference value involves comparing the costs and benefits of __________.

Accepted Answer

The answer of A reference value involves comparing the costs...

Question 15

A firm's profit equation demonstrates that profit equals __________.

Accepted Answer

The profit equation is given by Total revenue – Total cost. This is because profit is the difference between the revenue earned by a firm and the cost of producing the goods or services.

Question 16

The formula,Total revenue − Total cost,or [(Unit price × Quantity sold)− (Fixed cost + Variable cost)] represents __________.

Accepted Answer

The formula Total revenue − Total cost, or [(Unit price × Quantity sold)− (Fixed cost + Variable cost)], represents the profit equation. It is used to calculate the profit or loss a company has made after considering all the costs involved in producing and selling a product or service.

Question 17

A reference value __________.

Accepted Answer

The answer of A reference value __________.
...

Question 18

The ratio of __________ to price is referred to as value.

Accepted Answer

Perceived benefits refer to the customer's perception of the value that a product or service provides. The ratio of perceived benefits to price is what creates value for the customer.

Question 19

Calculate a firm's total revenue (TR)using the following information: the unit price (P)for a product is $40; the quantity sold (Q)is 2,000; the fixed cost (FC)is $50,000; and the variable cost (VC)is $20,000.

Accepted Answer

The answer of Calculate a firm's total revenue (TR)using the...

Question 20

A buying situation can involve comparing the costs and benefits of substitute items-such as real sugar to the sugar substitute Splenda,which,although more expensive than sugar,is purchased by many consumers because it contains no calories.This situation involves the consumer considering

Accepted Answer

The answer of A buying situation can involve comparing the...

Quiz 11: Pricing Products and Services

Figure 11-2 -Figure 11-2 above represents the four approaches to selecting an appropriate price level."A" represents which approach?

To increase value,marketers may __________,decrease price,or do both.

A firm's profit equation equals

The __________ equation = (Unit price × Quantity sold) − Total cost.

To increase value the most,marketers should

Tara is enrolled for spring semester at college.The tuition is $6,000,but she has a scholarship for $1,000 as well as a work-study grant of $1,500.The health fees and student activity fees are $150 for the semester.What is the final price that Tara will pay for the spring semester?

The ratio of perceived benefits to __________ is referred to as value.

The ratio of perceived benefits to price is referred to as

The key to setting a final price for a product is finding an approximate price level to use as a reasonable starting point.Four common approaches to selecting an approximate price level are: (1) demand-oriented; (2) cost-oriented; (3) profit-oriented; and (4) __________ approaches.

The key to setting a price for a product is finding an approximate price level to use as a reasonable starting point.Four common approaches to selecting an approximate price level are: (1) demand-oriented; (2) cost-oriented; (3) __________; and (4) competition-oriented approaches.

A reference value involves comparing the costs and benefits of __________.

A firm's profit equation demonstrates that profit equals __________.

The formula,Total revenue − Total cost,or [(Unit price × Quantity sold) − (Fixed cost + Variable cost) ] represents __________.

A reference value __________.

The ratio of __________ to price is referred to as value.

Calculate a firm's total revenue (TR) using the following information: the unit price (P) for a product is $40; the quantity sold (Q) is 2,000; the fixed cost (FC) is $50,000; and the variable cost (VC) is $20,000.

A buying situation can involve comparing the costs and benefits of substitute items-such as real sugar to the sugar substitute Splenda,which,although more expensive than sugar,is purchased by many consumers because it contains no calories.This situation involves the consumer considering