Chapter 15 - Chapter 15-Pricing Concepts 233 questions (37...

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Chapter 15—Pricing Concepts 233 questions (37 true/false, 166 multiple choice, 30 essay) MULTIPLE CHOICE 1. According to the text, price is best described as: a. the perceived value of a good or service b. money exchanged for a good or service c. the psychological results of purchasing d. the cost in dollars for a good or service as set by the producer e. the value of a barter good in an exchange 2. Revenue: a. equals quantity sold times profit margin b. equals price minus costs c. equals return on investment d. is synonymous with profit e. equals price of goods times quantity sold 3. _____ pay for every activity of the company. a. Revenues b. Investments c. Retained earnings d. Profits e. Prices 4. Money that is left over after paying for company activities is called: a. return on investment b. a contribution margin c. profit d. net worth e. a current asset 5. Which of the following statements about price is true? a. Price can relate to anything with perceived value, not just money. b. Price is that which is given up in an exchange to acquire a product. c. Customers are interested in obtaining a perceived reasonable price. d. The price paid is based on the satisfaction consumers expect to receive from a product. e. All of these statements about price are true. 6. Why are marketing managers finding it more difficult to set prices in today's environment? a. Inflationary and recessionary periods have made customers less price-sensitive. b. Fewer dealer and generic brands are available because the competition has been eliminated. c. The high rate of new-product introductions has led to careful reevaluation by consumers. d. Marketing managers are finding it difficult to compare prices between suppliers. e. Buyers are less informed and are less price-sensitive. Chapter 15 Pricing Concepts 1
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7. For convenience, pricing objectives can be divided into three categories. They are: a. refundable, competitive, and attainable b. perceived, actual, and unique-situational c. differentiated, niche, and undifferentiated d. profit oriented, sales oriented, and status quo e. monopolistic, fixed, and variable 8. An organization is using _____ when it sets its prices so that total revenue is as large as possible relative to total costs. a. profit maximization b. market share pricing c. demand-oriented pricing d. sales maximization e. status quo pricing 9. The pricing policy used by Middleton Industries, manufacturer of Renaissance charms for bracelets and necklaces, is to set prices so the its retail prices are as high as the market will tolerate. Additionally, Middleton strives to keep its costs at an industry low by using silver and gold overlays over charms made of cheap base metal. This is an example of a _____ policy a. market share pricing b. profit maximization c. demand-oriented d. sales maximization e. status quo pricing 10. Hal Macini owner of Evergreen Landscaping is more interested in earning customer goodwill than striving for maximum profit. He determines his prices by maintaining the company's profitability at a
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Chapter 15 - Chapter 15-Pricing Concepts 233 questions (37...

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