Business 530 - Marketing Management » Winter 2023 » Chapter 09 Pricing
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Question #1
If a firm prices its brand too low, the volume of sales will pick up.
A.
False
B.
True
Question #2
In the marketing framework, the change in a product's _____ is easily measurable when compared to the other Ps.
A.
promotion
B.
place
C.
price
D.
features
Question #3
Which of the following explains the difference between elastic and inelastic demand?
A.
Elastic demand relates to intangible services, while inelastic demand relates to tangible goods.
B.
Elastic demand relates to the internal projects of a firm, while inelastic demand relates to the external projects of a firm.
C.
Elastic demand means the product demand depends on the segmentation process of a firm, while inelastic demand means the product demand depends on the targeting process of a firm.
D.
Elastic demand means product demand varies with a change in the product's price, while inelastic demand means the product demand remains static even with a change in the product's price.
Question #4
In the context of pricing, brand loyal customers are elastic in nature.
A.
False
B.
True
Question #5
If the price of a product goes up, which of the following drives the demand for the same product?
A.
Small number of complementary products
B.
Large number of complementary products
C.
Large number of B2B substitute products
D.
Small number of substitute products
Question #6
Price sensitivity is greater when the product is a _____.
A.
luxury good
B.
consumer durable good
C.
complementary good
D.
necessity
Question #7
Price sensitivity should decrease when price information is easily available to customers to compare across competing brands.
A.
False
B.
True
Question #8
If the unit cost of a product is $4 and the intended rate of return is 25%, determine the covering cost of the product using the cost-plus pricing model.
A.
$14.00
B.
$5.33
C.
$4.23
D.
$4.73
Question #9
If a firm's variable costs are high relative to its fixed costs, the margin per unit should be maximized.
A.
False
B.
True
Question #10
A _____ is a means of figuring out how many units a manufacturer has to sell before recovering his costs.
A.
beta test
B.
conjoint analysis
C.
Vals test
D.
break-even analysis
Question #11
Dominic, Inc., a pretzel manufacturer, introduced a new flavor of pretzels in the market. The fixed manufacturing costs came up to $5,000, and the cost of packaging materials for a box came up to $15. If a box of pretzels is priced at $25, what is the break-even point of Dominic, Inc.?
A.
200 boxes
B.
50 boxes
C.
250 boxes
D.
500 boxes
Question #12
In a _____ study, customers are shown products with various combinations of features and attributes, with price being one of them.
A.
conjoint
B.
beta test
C.
unit margin
D.
break-even
Question #13
To know how prices will be received and affect demand, marketers have to understand how customers perceive prices and price changes, like promotions.
A.
True
B.
False
Question #14
An auction uses a static pricing strategy.
A.
False
B.
True
Question #15
A two-part tariff is used in linear pricing.
A.
True
B.
False
Question #16
B2B pricing tools include barter, which is:
A.
discounts for cash.
B.
payment in goods, services, or buying agreement.
C.
prices passed along through the channel network.
D.
cutting prices to intermediaries for cash.
Question #17
Price often serves as a cue to quality.
A.
True
B.
False
Question #18
In the context of high pricing strategies for products, the equation used to determine the percent change in sales for a stable price sensitive product is:
A.
(Price sensitivity x Original price)/(New Price -Original Price)
B.
(Original Price(New price-Original price))/(Price sensitivity)
C.
(Price sensitivity (New price-Original price))/(Original Price)
D.
(New price-Original price)/(Price sensitivity x Original Price)
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