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Marketing > Week 9 Questions > Flashcards

Week 9 Questions Flashcards

1
Q

Price is defined as?

A

The money or other considerations exchanged for the ownership or use of a product

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2
Q

Value is defined as

A

Perceived benefits divided by price

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3
Q

Pricing has ____ effect on a firms profits

A

A direct

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4
Q

The four common approaches to pricing include?

Price oriented
Distribution oriented
Profit oriented
Competition oriented
Demand oriented
Cost oriented

A

Profit
Competition
Demand
Cost

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5
Q

Which of the following are examples of price?

School tuition
Insurance premiums
Cash savings
Union dues

A

School tuition
Insurance premiums
Union dues

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6
Q

The money or other consideration (including other products and services) exchanged for the ownership or use of a product is known as?

A

Price

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7
Q

Demand oriented pricing approaches weigh which factors most heavily?

Costs to product the product
Expected supply if the product at its time of release
Expected customer tastes and preferences
Number of competitive products on the market

A

Expected customer tastes and preferences

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8
Q

True or false?
Price is often used as an indicator of quality and value

A

True

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9
Q

Pricing approaches that consider the production and marketing costs and then add enough to cover direct expenses, overhead, and profit are known as?

A

Cost oriented

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10
Q

Total revenue less total cost is known as?

A

Profit

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11
Q

Which of the following is NOT a common approach to pricing?

A

Distribution oriented

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12
Q

Which of the following are profit oriented approaches to setting a price?

Target profit pricing
Customary pricing
Skimming pricing
Target return pricing

A

Target profit pricing
Target return pricing

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13
Q

Insurance premiums, credit card interest and doctors fees are all examples of?

A

Price

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14
Q

_______ oriented pricing approaches weigh factors underlying expected customer tastes and preferences more heavily than other factors

A

Demand

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15
Q

Cost oriented approaches to pricing considers which of the following in the setting of a products price?

Overhead
Consumer preferences
Manufacturing costs
Profit

A

Overhead
Manufacture and
Profit

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16
Q

Pricing has ____ effect in a firms profits

A

A direct

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17
Q

_____ oriented approaches to pricing set the price to reflect the way the marketer wants consumers to interpret prices relative to competitors offerings

A

Competition

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18
Q

By focusing on target profit pricing or target return pricing, a firm is using a ______ pricing approach

A

Profit oriented

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19
Q

Marketers consider their pricing strategy for a new product as well as the competitive products available in order to

A

Estimate demand

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20
Q

ROI analysis provides

A summary of sales and expenditures for the period
Strategies to improve financial performance
Demand estimates required to earn profit
Evaluation of the dollars invested in an initiative

A

Evaluation of the dollars invested in an initiative

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21
Q

Pricing approaches that consider the production and marketing costs and then add enough to cover direct expenses, overhead, and profit are known as

A

Cost- oriented

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22
Q

When using competition oriented pricing approaches, price setters stress

A

What the market is doing

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23
Q

The demand curve is?

A

A graph showing the number of products that will be sold at a given price

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24
Q

Once marketers have decided on a products price the next step is to

A

Determine demand

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25
Q

Total revenue= unit ____ x quantity______

A

Price
Sold

26
Q

The profit earned from an initiative in comparison to what was invested is called

A

Return on investment

27
Q

Cost oriented approaches to pricing considers which of the following in the setting of a products price?

Consumer preferences
Manufacturing costs
Profit
Overhead

A

Manufacturing costs (production costs)
Profit
Overhead

28
Q

On a demand curve one of the axes represents the price of a product while the other represents the

A

Quantity demanded

29
Q

Marketers consider their pricing strategy for a new product as well as the competitive products available in order to

A

Estimate demand

30
Q

Marketers commonly use ____ to relate revenues and costs

A

Break even analysis

31
Q

Price times quantity sold is

A

Total revenue

32
Q

Break even analysis examines the relationship between which two at various levels of outputs

Maximum value
Total cost
Minimum cost
Total revenue

A

Total revenue and total cost

33
Q

Return on investment analysis provides

A

Evaluation if the dollars invested in an initiative

34
Q

Pricing approaches that consider the production and marketing costs and then add enough to cover direct expenses overhead and profit are known as

A

Cost oriented

35
Q

The demand curve is

A

A graph showing the number of products that will be sold at a given price

36
Q

While _____ refer to money received by a business, _____ refer to the money paid out to employees and suppliers

A

Revenue
Cost

37
Q

Break even analysis examines the relationship between total revenue and total cost to determine profitability

For a variety of sales prices
At various levels of output
When costs are absolutely minimized
When demand is maximized

A

At various levels of output

38
Q

The profit earned from an initiative in comparison to what was invested is called

A

ROI

39
Q

Break even analysis can help evaluate the impact of changes in _____ and ______ on _____

A

Price
Costs
Profit

40
Q

A marketing manager considers pricing objectives and constraints to

Reduce dependence on product revenues
Determine what kinds of special adjustments to the list price will work best
Narrow the range of choices among the variety of pricing strategies
Estimate the changes to demand that will occur with a price increase

A

Narrow the range of choices among the variety of pricing strategies

41
Q

Pricing ____ involve specifying the role of price in an organization’s marketing and strategic plans

A

Objectives

42
Q

Marketers commonly use ____ to relate revenues and costs

A

Break even analysis

43
Q

Factors that limit the range of prices a firm may set are known as pricing

A

Constraints

44
Q

Which of the following is an advantage of using break even analysis?

It calculates the ideal price point
It considers only variable cost and not fixed cost
It is very predictive of changes in consumer demand
It is simple

A

It is simple

45
Q

Pricing ______ frequently reflect corporate goals, while pricing ______ often relate to conditions existing in the marketplace.

A

Objectives
Constraints

46
Q

Marketing managers may identify profit, market share, social responsibility, or even survival as pricing

A

Objectives

47
Q

Price fixing, price discrimination and predatory pricing are

Seen as unethical by some but are currently legal
Legally prohibited
Legal when used as discounts but illegal if used as allowances
Legal but not recommended because they result in the loss of sales

A

Legally prohibited

48
Q

Legal and regulatory issues and consumer demand are pricing ____ that limit what a company can charge for its products

A

Constraints

49
Q

Global companies often facing pricing strategy challenges due to

Accounting procedures
Individual country differences
Competitor price fixing
Global pricing courts

A

Individual country differences

50
Q

Moving from an approximate price level to a final one involves which two of the following?

Estimate demand and revenue
Determine cost, volume, and profit relationships
Make special adjustments to list or quoted price
Set list or quoted price

A

Make special adjustments to list or quoted price
Set list or quoted price

51
Q

Demand oriented, cost oriented, and profit oriented approaches can be used to a(n)______ price level for a product

A

Approximate

52
Q

Which of the following are pricing strategies that are legally restricted?

Predatory pricing
Price fixing
Loss-leader pricing
FOB origin pricing

A

Predatory pricing
Price fixing

53
Q

Setting a price with no variation for product buyers is called a _____ policy

A

One price

54
Q

Which of the following are special adjustments to the list or quoted price?

Allowances
Price fixing
Geographical adjustments
Discounts

A

Allowances
Geographical adjustments
Discounts

55
Q

In particular,______ strategic approaches may face legal difficulties when applied globally

A

Low price

56
Q

The final step is setting product price is

A

Monitoring and adjusting prices

57
Q

What is the order of setting a final price?

A

1 select an approximate price level
2 set the list or quoted price
3 make special adjustments to the list or quoted price

58
Q

Select all of the following that are common approaches to setting an approximate price level for a product

Demand oriented
Competition oriented
Cost oriented
Service oriented

A

Demand oriented
Competition oriented
Cost oriented

59
Q

A ______ policy is also known as fixed pricing

A

One price

60
Q

Match each type of special adjustment to a list or quoted price with an example of it

Discounts
Allowances
Geographical adjustments

Promotional
Quantity
FOB origin pricing

A

Discounts - quantity
Allowance - promotional
Geographical adjustment- FOB origin pricing

61
Q

In the final step, forms must monitor and adjust prices. To be effective, firms must monitor changes in both the _____ and _____

A

External environment
Within the firm

Marketing (6 decks)

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