Question 1 A) Candice is working on a pricing strategy for her new line of workout clothes. In addition to setting the standard for her products and determining her profit levels, which is another outcome of setting the price for her products? (1 point) Responses determining how well the products compete in the marketplace determining how well the products compete in the marketplace identifying when to offer discounts and sales incentives identifying when to offer discounts and sales incentives deciding if the product solves a customer problem deciding if the product solves a customer problem defining customer value defining customer value Question 2 A) Which description defines the equation for determining customer value? (1 point) Responses the benefits of the product multiplied by the price the benefits of the product multiplied by the price the perceived benefits divided by the price the perceived benefits divided by the price the product price multiplied by the number of customers the product price multiplied by the number of customers the customer value plus the total product cost the customer value plus the total product cost Question 3 A) Carlos is launching a new line of eco-friendly camping equipment, for which he has secured a large loan to help finance the early stages of his business. Because the products are both innovative and new to the market, which pricing objective is Carlos MOST likely to focus on initially? (1 point) Responses market share market share sales sales profits profits status quo status quo Question 4 A) When Fran took over her parents’ successful industrial manufacturing business, she spent a lot time researching the market to determine if she could justify increasing the price of some of the most popular products. Ultimately, she adopted a pricing strategy that resulted in no price changes. Which pricing strategy did she MOST likely choose? (1 point) Responses market share market share sales sales profits profits status quo status quo Question 5 A) Garrison’s flyfishing equipment business is strapped for cash, and he’s beginning to wonder how long he can continue to operate at the current level of business activity, given his constant need for operating capital. He decides to reduce his prices across all products by 30 percent. On which pricing objective is he likely MOST focused? (1 point) Responses market share market share sales sales profits profits status quo
market share
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Question 1 A) The outcome of setting the price for Candice's products includes determining how well the products compete in the marketplace.
Question 2 A) The equation for determining customer value is the perceived benefits divided by the price.
Question 3 A) Carlos, in launching a new line of eco-friendly camping equipment, is most likely to focus on the pricing objective of market share initially.
Question 4 A) Fran, in adopting a pricing strategy that resulted in no price changes for her parents’ industrial manufacturing business, most likely chose the pricing strategy of status quo.
Question 5 A) Garrison, in reducing his prices across all products by 30 percent due to cash constraints for his flyfishing equipment business, is likely most focused on the pricing objective of increasing market share.
Question 6 A) When a new superstore opened near the highway, shopping traffic in and out of Annette’s small town began to dwindle. She knew that if she didn’t do something quickly, her pet store might go out of business. This is what inspired her to offer all of her customers a “lowest price” guarantee on everything she sold. On which pricing objective is she likely MOST focused? (1 point) Responses market share market share sales sales profits profits status quo status quo Question 7 A) Profit = _____ minus _____. (1 point) Responses units sold, unit quantity units sold, unit quantity sales, distribution sales, distribution total revenue, total cost total revenue, total cost items, marketing items, marketing Question 8 A) Which description determines a product’s break-even point? (1 point) Responses units sold equaling per unit price units sold equaling per unit price fixed costs minus variable costs fixed costs minus variable costs resale value multiplied by sales resale value multiplied by sales total costs equaling total revenue total costs equaling total revenue Question 9 A) When Carter was invited to give a business presentation in another city, he bought a ticket right away and got a discounted fare. But when Carter’s manager decided to join the trip just two days before the presentation, she found that the airfare had doubled. Which aspect of pricing regulation did Carter and his manager potentially encounter? (1 point) Responses price discrimination price discrimination deceptive pricing deceptive pricing predatory pricing predatory pricing price fixing price fixing Question 10 A) When Jackson needed new tires for his truck, he looked through the newspaper to see if any of the big tire dealers had sales going on. He was happy to see that one tire center was advertising the kind of tires he needed at a great price, but when got to the store, he found that those tires has sold out instantly, and the ones in stock were a lot more expensive. Which aspect of pricing regulation did he MOST likely encounter? (1 point) Responses price discrimination price discrimination deceptive pricing deceptive pricing predatory pricing predatory pricing price fixing price fixing
Question 6 A) Annette, in offering a "lowest price" guarantee on everything she sold in response to competition from a new superstore, is likely most focused on the pricing objective of increasing sales.
Question 7 A) Profit = total revenue, total cost.
Question 8 A) The description that determines a product’s break-even point is: total costs equaling total revenue.
Question 9 A) Carter and his manager potentially encountered the aspect of pricing regulation known as price discrimination.
Question 10 A) Jackson, in encountering a situation where advertised sale tires were sold out and the remaining ones were more expensive, likely encountered the aspect of pricing regulation known as deceptive pricing.
Question 11 A) When the COVID-19 pandemic began, it created a lot of opportunities for companies in the medical mask business, because suddenly it seemed like the whole world needed their products. If an online medical supply store raises their prices 400 percent in response to the surge in demand, which area of pricing regulation would they likely violate? (1 point) Responses price discrimination price discrimination deceptive pricing deceptive pricing predatory pricing predatory pricing price fixing price fixing Question 12 A) When Janis tried to buy an airline ticket for her summer holiday, she couldn’t find an airline that was offering a ticket to her destination for anything less than $500 round trip. In fact, all three airlines that flew to her destination offered the same fare, $510, for passengers seeking to visit that destination. Which aspect of pricing regulation might the airlines be in violation of? (1 point) Responses price discrimination price discrimination deceptive pricing deceptive pricing predatory pricing predatory pricing price fixing price fixing Question 13 A) A company that was about to introduce a new electric vehicle took preorders and deposits from people who were hoping to buy the first edition models. Given the incredible demand, the car makers decided to price the vehicle at the top of the electric vehicle market. Which pricing policy is the company MOST likely following? (1 point) Responses price skimming price skimming penetration pricing penetration pricing prestige pricing prestige pricing odd-even pricing odd-even pricing Question 14 A) When the makers of a well-respected brand of appliances reduced the prices on their flagship dishwasher, they were hoping to dominate the domestic dishwasher market. Which pricing policy did the company MOST likely follow? (1 point) Responses price skimming price skimming penetration pricing penetration pricing prestige pricing prestige pricing odd-even pricing odd-even pricing Question 15 A) When the producers of one of the world’s most accurate watches reduced prices on their most luxurious watch by 30 percent, they also experienced a 30 percent decline in sales as a direct result. Which pricing policy did the company MOST likely replace when they discounted the pricing? (1 point) Responses price skimming price skimming penetration pricing penetration pricing prestige pricing prestige pricing odd-even pricing
Question 11 A) If an online medical supply store raises their prices 400 percent in response to the surge in demand during the COVID-19 pandemic, they would likely violate the area of pricing regulation known as deceptive pricing.
Question 12 A) The airlines that offer the same fare of $510 to passengers seeking to visit a particular destination might be in violation of the aspect of pricing regulation known as price fixing.
Question 13 A) The company introducing a new electric vehicle and pricing it at the top of the electric vehicle market is most likely following the pricing policy of price skimming.
Question 14 A) The makers of a well-respected brand of appliances reducing prices on their flagship dishwasher to dominate the domestic dishwasher market are likely following the pricing policy of penetration pricing.
Question 15 A) The producers of one of the world's most accurate watches experiencing a decline in sales after reducing prices on their most luxurious watch are likely changing their pricing policy from prestige pricing to penetration pricing.