Question 1

99-Center Inc.is a retail store where all its merchandise is priced at 99 cents.This retailer uses a _____.

Accepted Answer

A)  ​single-price tactic
B)  flexible pricing tactic
C)  price lining tactic
D)  ​price bundling tacticE) B) and D)
F) B) and C)

Question 2

_____ is a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities.

Accepted Answer

A)  ​One-part pricing
B)  Price lining
C)  Flexible pricing
D)  ​Price skimmingE) None of the above
F) All of the above

Question 3

Demand for a product will be inelastic if:

Accepted Answer

A)  ​its price is so low that it is an inconsequential part of an individual's budget.
B)  the product has a number of different uses.
C)  many substitute products are available in the market.
D)  ​the product can be repaired and replaced or prolonged in its use.E) None of the above
F) C) and D)

Question 4

To the consumer,price is the cost of something.

Accepted Answer

A) True 
 B)False

Question 5

_____ does not change as output is increased or decreased.

Accepted Answer

A)  ​Marginal cost
B)  Dependentcost
C)  Fixed cost
D)  ​Opportunity costE) A) and D)
F) B) and C)

Question 6

Which of the following statements is true of unfair trade practice acts?

Accepted Answer

A)  ​They prohibit any firm from selling to two or more different buyers.
B)  Unfair trade practice lawsprevent oligopoly leaders from joining together and fixing prices at the highest rates that a market will allow.
C)  They establish penalties for companies that engage in predatory pricing.
D)  ​State enforcement of unfair trade practice laws has been lax partly because low prices benefit local consumers.E) C) and D)
F) A) and B)

Question 7

When Lofonift Inc.introduced its flagship product,an MP3 player,it captured the MP3 player market by offering its product at the lowest price in the market.This gradually forced many of its competitors out of business.Once its competitors were out of business,Lofonift Inc.raised its prices.In this scenario,Lofonift Inc.most likely indulged in _____.

Accepted Answer

A)  ​predatory pricing
B)  price discrimination
C)  status quo pricing
D)  ​price fixingE) C) and D)
F) A) and D)

Question 8

At Fournotts,a retail corporation,Riya saw a box of collector's edition comic books.Each book was priced at $28.50,but a customer who bought five of the books was required to pay only $19.99 for each book.Riya bought one book and her friend bought five books.In this case,Fournotts' revenue from this purchase is _____.

Accepted Answer

A)  ​$158.51
B)  $19.99
C)  $28.50
D)  ​$128.45E) A) and C)
F) B) and C)

Question 9

Identify a true statement about status quo pricing.

Accepted Answer

A)  ​Itleads to optimal pricing of a product.
B)  Itrequires serious planning and is difficult to implement.
C)  It gives great importance to the demand and costs of a product.
D)  ​Itcan lead to a pricing disaster.E) A) and B)
F) B) and D)

Question 10

Univ Airlines and Mirago Airlines are two competing airlines.They make an agreement to charge customers a certain price for airfreight.This leads to the filing of several lawsuits against them by other airlines.In this case,Univ Airlines and Mirago Airlines can be charged under _____.

Accepted Answer

A)  ​the Clayton Act
B)  the Sarbanes-Oxley Act
C)  the Sherman Act
D)  ​the Robinson-Patman ActE) None of the above
F) A) and D)

Question 11

_____ is the quantity of a product that will be offered to the market by a supplier at various prices for a specified period.

Accepted Answer

A)  ​Demand
B)  Supply
C)  Market share
D)  ​Product shareE) All of the above
F) A) and C)

Question 12

For businesses,consumer penalties are part of doing business in a highly competitive marketplace.

Accepted Answer

A) True 
 B)False

Question 13

At a price of $2,000 per unit,the demand for Ranger 60 mountain bikes from Cloyd's Inc.is 300 units,which is same as the number of bikes manufactured every year.If the marketing managers at Cloyd's Inc.decide to sell each bike at a price lower than $2,000 per unit,_____.

Accepted Answer

A)  ​a shortage of bikes will be created
B)  the number of bikes being made will increase drastically
C)  an inelastic demand for the bikes will be created
D)  ​the demand and supply for the bike will attain equilibriumE) A) and C)
F) C) and D)

Question 14

Extranets enable buyers to quickly and easily compare products and prices,putting them in a better bargaining position.

Accepted Answer

A) True 
 B)False

Question 15

Consumers are more likely to perceive the value of a product to be less than its cost if:

Accepted Answer

A)  ​in consumers' minds, the product's price is set too high.
B)  the product's manufacturer gains very little profit from the product.
C)  the product has an inelastic demand.
D)  ​the product's demand and supply attain the state of price equilibrium.E) A) and C)
F) All of the above

Question 16

The greater the number of different uses for a product,the more inelastic demand tends to be.

Accepted Answer

A) True 
 B)False

Question 17

Adequate distribution for a new product can often be attained by:

Accepted Answer

A)  ​offering a larger-than-usual profit margin to distributors.
B)  having different model or serial numbers for products.
C)  allowing customers to involve in showrooming.
D)  ​increasing the prices of the products.E) B) and D)
F) All of the above

Question 18

Dynamic pricing is used to:

Accepted Answer

A)  ​implement bait pricing to get more loyal customers.
B)  perform price discrimination among customers.
C)  adjust prices over time to maximize a company's revenues.
D)  ​attain price equilibrium.E) A) and B)
F) All of the above

Question 19

The managers at Click-to-Door,a giant e-commerce Web site,closely monitor its rival online retailers to analyze the prices at which they offer certain goods and how the consumers respond to the changes in prices.They use the results of this analysis to constantly change the priceson their Web site to maximize sales as well as profits.In this case,which of the following models of pricing does Click-to-Door follow?

Accepted Answer

A)  ​Comparative pricing
B)  Dynamic pricing
C)  Capacitive pricing
D)  ​Dependent pricingE) A) and B)
F) B) and C)

Question 20

Briefly explain how distribution strategy acts as a determinant of price.

Accepted Answer

Answers will vary.An effective distribut...

Exam 19: Pricing Concepts

Identify a true statement about status quo pricing.

Correct Answer
verified

_____ is a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities.

Correct Answer
verified

99-Center Inc.is a retail store where all its merchandise is priced at 99 cents.This retailer uses a _____.

Correct Answer
verified

To the consumer,price is the cost of something.

Correct Answer
verified

The greater the number of different uses for a product,the more inelastic demand tends to be.

Correct Answer
verified

Briefly explain how distribution strategy acts as a determinant of price.

Correct Answer
verified
Answers will vary.An effective distribut...
View Answer

Adequate distribution for a new product can often be attained by:

Correct Answer
verified

Correct Answer
verified

Demand for a product will be inelastic if:

Correct Answer
verified

_____ does not change as output is increased or decreased.

Correct Answer
verified

Dynamic pricing is used to:

Correct Answer
verified

Which of the following statements is true of unfair trade practice acts?

Correct Answer
verified

For businesses,consumer penalties are part of doing business in a highly competitive marketplace.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Consumers are more likely to perceive the value of a product to be less than its cost if:

Correct Answer
verified

Univ Airlines and Mirago Airlines are two competing airlines.They make an agreement to charge customers a certain price for airfreight.This leads to the filing of several lawsuits against them by other airlines.In this case,Univ Airlines and Mirago Airlines can be charged under _____.

Correct Answer
verified

Extranets enable buyers to quickly and easily compare products and prices,putting them in a better bargaining position.

Correct Answer
verified

At a price of $2,000 per unit,the demand for Ranger 60 mountain bikes from Cloyd's Inc.is 300 units,which is same as the number of bikes manufactured every year.If the marketing managers at Cloyd's Inc.decide to sell each bike at a price lower than $2,000 per unit,_____.

Correct Answer
verified

_____ is the quantity of a product that will be offered to the market by a supplier at various prices for a specified period.

Correct Answer
verified

Exam 19: Pricing Concepts

Identify a true statement about status quo pricing.

Correct AnswerverifiedShow Answer

_____ is a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities.

Correct AnswerverifiedShow Answer

99-Center Inc.is a retail store where all its merchandise is priced at 99 cents.This retailer uses a _____.

Correct AnswerverifiedShow Answer

To the consumer,price is the cost of something.

Correct AnswerverifiedShow Answer

The greater the number of different uses for a product,the more inelastic demand tends to be.

Correct AnswerverifiedShow Answer

Briefly explain how distribution strategy acts as a determinant of price.

Correct AnswerverifiedAnswers will vary.An effective distribut...View AnswerShow Answer

Adequate distribution for a new product can often be attained by:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Demand for a product will be inelastic if:

Correct AnswerverifiedShow Answer

_____ does not change as output is increased or decreased.

Correct AnswerverifiedShow Answer

Dynamic pricing is used to:

Correct AnswerverifiedShow Answer

Which of the following statements is true of unfair trade practice acts?

Correct AnswerverifiedShow Answer

For businesses,consumer penalties are part of doing business in a highly competitive marketplace.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Consumers are more likely to perceive the value of a product to be less than its cost if:

Correct AnswerverifiedShow Answer

Univ Airlines and Mirago Airlines are two competing airlines.They make an agreement to charge customers a certain price for airfreight.This leads to the filing of several lawsuits against them by other airlines.In this case,Univ Airlines and Mirago Airlines can be charged under _____.

Correct AnswerverifiedShow Answer

Extranets enable buyers to quickly and easily compare products and prices,putting them in a better bargaining position.

Correct AnswerverifiedShow Answer

At a price of $2,000 per unit,the demand for Ranger 60 mountain bikes from Cloyd's Inc.is 300 units,which is same as the number of bikes manufactured every year.If the marketing managers at Cloyd's Inc.decide to sell each bike at a price lower than $2,000 per unit,_____.

Correct AnswerverifiedShow Answer

_____ is the quantity of a product that will be offered to the market by a supplier at various prices for a specified period.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Answers will vary.An effective distribut...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified