Ch 13 mkt pricing I part iii

Question 1

All of these are examples of pricing constraints except which?

A) cost of producing the product
B) competitors' prices
C) newness of the product
D) break-even point
E) demand for the product class, product, or brand

Answer 1

D) break-even point

Question 2

Occasionally, prices may rise later in the product’s life cycle. This is often due to
A) new competitors entering the market.
B) production economies of scale.
C) a decrease in the price of raw materials.
D) nostalgia and fad factors.
E) the type of competitive market shifts from pure monopoly to pure competition.

Answer 2

D

Question 3

At one point, people were willing to pay hundreds of dollars on eBay for a Beanie Baby toy that originally cost a small fraction of that. Today, those same Beanie Babies can be found at garage sales for less than a dollar apiece. This is most likely due to

A) faulty craftsmanship in later production batches.
B) a sharp downturn in the economy.
C) the new, more nostalgic fad of bobblehead dolls.
D) too many counterfeit Beanie Babies entering the country.
E) a product becoming a fad and then losing its fad appeal.

Answer 3

E) a product becoming a fad and then losing its fad appeal.

Question 4

Apple’s iPhone was originally a single model in a product line targeted at high-end users. However, lower-cost rival smartphones soon entered the market and Apple began to market multiple offerings itself. Here, Apple faces
A) the inability to change prices quickly.
B) speeding up the diffusion of innovation process.
C) brand extension confusion.
D) charging a lower price to gain a foothold in the market.
E) the challenge of pricing multiple products in an expanding product line.

Answer 4

E) the challenge of pricing multiple products in an expanding product line.

Question 5

Most public utilities must petition regulatory commissions in order to obtain a rate increase. Which pricing constraint does this statement demonstrate?
A) demand for the product, class, or brand
B) newness of product in the life cycle
C) costs of production
D) type of competitive market
E) single product versus a product line

Answer 5

D) type of competitive market

Question 6

Which lists the types of competitive markets from most competitive to least competitive?
A) monopolistic competition, pure monopoly, pure competition, and oligopoly
B) pure competition, monopolistic competition, oligopoly, and pure monopoly
C) pure competition, monopolistic competition, pure monopoly, and oligopoly
D) oligopoly, pure competition, monopolistic competition, and pure monopoly
E) pure monopoly, pure competition, oligopoly, and monopolistic competition

Answer 6

B) pure competition, monopolistic competition, oligopoly, and pure monopoly

Question 7

The particular type of competition dramatically influences the range of price competition and, in turn,
A) the nature of product differentiation and extent of advertising.
B) the nature of product differentiation and requirements for on-hand inventory.
C) the degree of involvement with each of the organization’s stakeholders.
D) the degree of involvement with both retailers and wholesalers.
E) the relationship between product lines and product classes.

Answer 7

A) the nature of product differentiation and extent of advertising.

Question 8

The competitive market situation in which many sellers follow the market price for identical, commodity products is referred to as
A) a pure monopoly.
B) an oligopoly.
C) monopolistic competition.
D) pure competition.
E) oligopolistic competition.

Answer 8

D) pure competition.

Question 9

The marketplace sets the price for wheat, so farmers who are trying to sell their wheat crops do not need a pricing strategy and do just a little advertising when a crop comes in. The wheat is sold in \_\_\_\_\_\_\_\_ type of competitive market.
A) an oligopoly
B) a pure monopoly
C) a pure competition
D) a monopolistic competition
E) a monopolistic oligopoly

Answer 9

C) a pure competition

Question 10

In which type of industry would a marketing director be most likely to say, "We have to let the customer know that our product is the only one that comes with its own tracking device"?
A) pure monopoly
B) oligopoly
C) pure competition
D) monopolistic oligopoly
E) monopolistic competition

Answer 10

E) monopolistic competition