Question 1

The protectionist strategy in which a company sells its exports to another country at a lower price than it sells the same product in its domestic market is called
A)unbundling.
B)escalation.
C)dumping.
D)loss leader.

Accepted Answer

The answer of The protectionist strategy in which a company...

Question 2

The Times Press charges $1.00 for its newspaper and has 150,000 subscribers. The publishers decided to reduce the price of the paper to $0.75 in hopes of attracting new subscribers. However, the price reduction resulted in only 500 new subscribers. This represents demand that is ________. (elastic/inelastic)

Accepted Answer

The answer of The Times Press charges $1.00 for its...

Question 3

You are shopping at a luxury boutique shop, and notice all the prices of the products are listed as $200, $350, etc. This is an example of ________ pricing.
A)high end
B)luxury
C)whole dollar
D)odd
E)even

Accepted Answer

The answer of You are shopping at a luxury boutique...

Question 4

________ maximization is a pricing strategy that involves setting a relatively high price for a period of time after the product launches.

Accepted Answer

The answer of ________ maximization is a pricing strategy that...

Question 5

United Airlines offered a summer sale in which it reduced its domestic flights by a small percentage. Because of this decrease in price, there was a significant increase in quantity demanded. This is an example of ________ demand. (elastic/inelastic)

Accepted Answer

The answer of United Airlines offered a summer sale in...

Question 6

When booking a flight for your upcoming trip, you notice the airline company now charges extra fees for baggage, assigned seats, and early boarding when these items used to be included in the price. This pricing strategy is referred to as
A)product separation.
B)dumping.
C)shrinkflation.
D)unbundling.
E)escalating.

Accepted Answer

The answer of When booking a flight for your upcoming...

Question 7

The first step in setting price is to clearly define the pricing ________.

Accepted Answer

The answer of The first step in setting price is...

Question 8

Marketers have to project the specific demand for their product at various price points knowing that the price of a product affects consumers' purchasing behavior. This is the idea behind the concept of price ________.

Accepted Answer

The answer of Marketers have to project the specific demand...

Question 9

Your Internet provider offers the lowest price in town for Internet service if you sign a two-year contract; however, the low price offer only lasts the first year. Which pricing strategy is the Internet company using to attract customers?
A)revenue maximization
B)volume maximization
C)product maximization
D)profit maximization
E)business maximization

Accepted Answer

This strategy is known as volume maximization, where the company aims to attract a large number of customers by offering low prices initially, even if it means lower profits or revenue in the short term. The goal is to maximize the number of subscribers or volume of sales.

Question 10

Manny is preparing a monthly report for his supervisor regarding plant operations. While Manny is happy to report that production increased by 20 percent this month, he needs to let his supervisor know that material charges, delivery costs and utilities to run the plant also increased significantly. These represent the plant's ________ costs.

Accepted Answer

The answer of Manny is preparing a monthly report for...

Question 11

A(n)_________ price is any price that a consumer uses as a basis for comparison in judging another price.
A)value
B)perceived
C)differential
D)efficiency
E)reference

Accepted Answer

The answer of A(n)_________ price is any price that a...

Question 12

Prices are generally more ________ in the early stages of the product life cycle. (elastic/inelastic)

Accepted Answer

The answer of Prices are generally more ________ in the...

Question 13

The objective of strategic pricing is ________.

Accepted Answer

The answer of The objective of strategic pricing is ________....

Question 14

Within the price setting process, what step comes after the price objectives have been defined?
A)picking a price
B)evaluate demand
C)determine the costs
D)monitor the price
E)analyze price competitors

Accepted Answer

The answer of Within the price setting process, what step...

Question 15

Costs that remain constant and do not vary based on the number of units produced or sold are called ________ costs.

Accepted Answer

The answer of Costs that remain constant and do not...

Question 16

In a market structure in which there are a large number of buyers and sellers, the pricing impact of any single firm will be fairly ________. (large/small)

Accepted Answer

The answer of In a market structure in which there...

Question 17

While break-even analysis analyzes the costs of sales, it fails to take into consideration consumers' sensitivity to ________.

Accepted Answer

The answer of While break-even analysis analyzes the costs of...

Question 18

The percentage change in quantity demanded in response to a percentage change in price is referred to as price ________ of demand.

Accepted Answer

The answer of The percentage change in quantity demanded in...

Question 19

Useful as a temporary means of staying in business, ________ pricing is the process of lowering prices to the point at which revenue just covers costs, allowing the business to endure a difficult time.

Accepted Answer

The answer of Useful as a temporary means of staying...

Question 20

If the costs of producing a product equal the revenue made from selling the product, a firm has achieved the ________ point.

Accepted Answer

The answer of If the costs of producing a product...

Quiz 11: Pricing

The protectionist strategy in which a company sells its exports to another country at a lower price than it sells the same product in its domestic market is called

You are shopping at a luxury boutique shop, and notice all the prices of the products are listed as $200, $350, etc. This is an example of ________ pricing.