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Exam 20: Pricing Concepts

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Question 31

Multiple Choice

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Reductions for transportation and other costs related to the physical distance between buyer and seller are known as

A) base-point pricing.
B) freight absorption pricing.
C) price zoning.
D) location pricing.
E) geographic pricing.

F) D) and E)
G) B) and C)

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Question 32

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Comparison of various prices and various breakeven points will tell the marketer exactly what price to charge.

A) True
B) False

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Question 33

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Fixed costs vary with the number of units produced or sold.

Mars Petcare is one of the world's largest petfood manufacturers.If the strategic goal for Mars Petcare in the coming year was to ___________ in North America,it should use temporary price reductions.

When a customer is considering the purchase of a product in a less-familiar product category,that individual is likely to rely more heavily on

For most products,the quantity demanded goes up as the price goes down.

The legality of uniform geographic pricing has been challenged,and so its use has been abandoned.

Changes in buyers' attitudes,other components of the marketing mix,and uncontrollable environmental factors can influence demand.

When marketers emphasize price as an issue and match or beat the prices of other companies,they are using

The idea behind prestige demand is that many prestige products seem to sell better at a high price than at a low price.

If Colgate-Palmolive wants to maximize profit on its toothpaste,it should operate at the point where

Nonprice competition does not permit unique product features,higher product quality,and customer service.

The owner of Big Bike Motorcycles is opening a new retail location.Which of the following is most likely to be a fixed cost for Big Bike Motorcycles?

Scenario 20.2 Use the following to answer the questions. The BASF Chemical Company in Germany has developed a new rubberized coating.The product has an application for cell phones and other hand-held electronic devices that gives them protection from falls and scratches.BASF plans to market the product directly to businesses that manufacture the casings for these types of products.BASF currently uses a system of salespeople headquartered in Germany,while its primary business customers are in China. -Refer to Scenario 20.2.BASF is considering the problem of actual distance in delivering its product from the plant in Germany to some of its customers in China.Which pricing strategy would help overcome this problem?

What do all of the following have in common: tuition,fee,premium,retainer,dues?

Marginal revenue is the change in total revenue that occurs when a firm sells an additional unit of product.

In conducting an assessment of her accounting firm,Paige discovers the following annual results: average charge per customer = $250;rent = $12,000;total billings = $150,000;employee compensation and benefits = $60,000;and other costs = $110,000.Given these results,Paige's profits would equal

The types of prices that appear most often in ads are ___;while the types of prices that occur least often in ads are ____ prices.

Which of the following is not a method used to determine transfer prices?

What type of discount is given to a business purchaser for performing activities such as transporting,storing,and selling?