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Chapter 12 Exam Review Flashcards | StudBud
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Chapter 12 Exam Review
Chapter 12 Exam Review
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Flashcards
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Questions
12
Answers
1
Why are setting pricing objectives critical?
Tells the marketer how much emphasis to place on price.
None of the above
They form the foundation where decisions of all subsequent stages are based
They set a satisfactory level to maximize profits.
2
What task do a marketing managers have?
Identify, develop, or evaluate marketing strategies
Make advertisements for companies with new products
Direct foreign sales and service outlets of an organization
Plan commercial displays to entice and appeal to customers
3
Promotional pricing includes price leaders, special event pricing, and comparison discounting.
True
False
4
How do you calculate the Break Even Point?
Net profit / contribution x100
Total contribution / fixed costs
Fixed costs / (selling price - variable costs)
Costs + Revenue
5
Price Elasticity of Demand is a measure of
the responsiveness of sellers to price changes
Value of goods demanded
the usefulness of goods demanded
the responsiveness of buyers to price changes
6
Marketers will always attempt to undercut a competitors price in order to increase sales
False
True
7
A pricing strategy is a course of action designed to achieve pricing objectives when pricing products or services.
True
False
8
What does the assessment of the target markets evaluation of a price tell us?
Tells us how much they are selling for in order to copy what they charge.
How far below the compeition can the firm set its prices.
How far above the competition can the firm set its prices.
Nothing Important.
9
The two most common cost based pricing methods are cost-plus pricing and markup pricing.
True
False
10
If a rise in supply exceeds a rise in demand, then we should expect
the equilibrium price and quantity levels will decline.
The equilibrium price will fall while the equilibrium quantity will rise
the equilibrium price will rise while the equilibrium quantity will decline
the equilibrium price and quantity levels will rise.
11
Differential pricing includes negotiated and secondary market pricing, as well as periodic and random discounting.
True
False
12
Marginal cost
the cost of producing one or more good
the cost of selling one or more good
