chapter 19
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Price is best described as:
a. that which is given up in exchange to acquire 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
a. that which is given up in exchange to acquire 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
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Terms in this set (106)
Price is best described as:
a. that which is given up in exchange to acquire 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
a. that which is given up in exchange to acquire 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
that which is given up in exchange to acquire a good or service
At Walmart, Randi saw a bag of daffodil flower bulbs and a box of plant fertilizer. The items,
which were sold together, retailed at $28.50 but were marked down to $19.99. The $19.99 is the:
a. revenue.
b. price.
c. profit.
d. liquidity value.
e. amortized value.
which were sold together, retailed at $28.50 but were marked down to $19.99. The $19.99 is the:
a. revenue.
b. price.
c. profit.
d. liquidity value.
e. amortized value.
price.
Which of the following statements is NOT true about price?
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. Price means the same thing to the consumer and the seller.
d. The price paid is based on the satisfaction consumers expect to receive from a product.
e. Customers are interested in obtaining a perceived reasonable price.
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. Price means the same thing to the consumer and the seller.
d. The price paid is based on the satisfaction consumers expect to receive from a product.
e. Customers are interested in obtaining a perceived reasonable price.
Price means the same thing to the consumer and the seller.
When goods and services are exchanged, the trade is called:
a. exchange.
b. substitution.
c. barter.
d. swap.
e. bargaining.
a. exchange.
b. substitution.
c. barter.
d. swap.
e. bargaining.
barter.
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
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
equals price of goods times quantity sold
_____ pay for every activity of the company.
a. Revenues
b. Investments
c. Retained earnings
d. Profits
e. Prices
a. Revenues
b. Investments
c. Retained earnings
d. Profits
e. Prices
Revenues
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.
a. return on investment.
b. a contribution margin.
c. profit.
d. net worth.
e. a current asset.
profit.
At Walmart, Randi saw a bag of daffodil flower bulbs and a box of plant fertilizer. The items,
which were sold together, retailed at $28.50 but were marked down to $19.99. The retailer sold one at the
$28.50 price and five at the $19.99 price. The retailer's revenue is:
a. $8.51
b. $19.99
c. $28.50
d. $128.45
e. $171.00
which were sold together, retailed at $28.50 but were marked down to $19.99. The retailer sold one at the
$28.50 price and five at the $19.99 price. The retailer's revenue is:
a. $8.51
b. $19.99
c. $28.50
d. $128.45
e. $171.00
$128.45
Which of the following is not a real trend that has affected the consumer market?
a. The increased availability of bargain-priced private and generic brands has put
downward pressure on overall prices.
b. Buyers evaluate the price of new products against the value of existing products.
c. Many firms are trying to maintain or regain their market share by raising prices.
d. The Internet has made comparison shopping easier.
e. The United States was in a recession from late 2007 until 2009.
a. The increased availability of bargain-priced private and generic brands has put
downward pressure on overall prices.
b. Buyers evaluate the price of new products against the value of existing products.
c. Many firms are trying to maintain or regain their market share by raising prices.
d. The Internet has made comparison shopping easier.
e. The United States was in a recession from late 2007 until 2009.
Many firms are trying to maintain or regain their market share by raising prices.
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
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
profit oriented, sales oriented, and status quo
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
possible relative to total costs.
a. profit maximization
b. market share pricing
c. demand-oriented pricing
d. sales maximization
e. status quo pricing
profit maximization
When Apple, Inc. originally introduced its iPhone, it was priced at what many believed to be
about as high as the market would allow. Within weeks, Apple lowered the price of the iPhone. It appears
that Apple entered the market with a _____ approach to pricing the iPhone.
a. market share pricing
b. profit maximization
c. demand-oriented
d. sales maximization
e. status quo pricing
about as high as the market would allow. Within weeks, Apple lowered the price of the iPhone. It appears
that Apple entered the market with a _____ approach to pricing the iPhone.
a. market share pricing
b. profit maximization
c. demand-oriented
d. sales maximization
e. status quo pricing
profit maximization
When Insight Research Associates quotes a marketing research project, management will first
estimate the cost to conduct the research and produce and deliver the final client report. The next step in
determining the price is to add 30 percent to that cost estimate. This becomes the price estimate given to the
potential research client. This suggests that Insight Research Associates uses a(n) _____ pricing objective.
a. profit-oriented
b. market share maximization
c. status quo
d. sales maximization
e. supply-demand equalization
estimate the cost to conduct the research and produce and deliver the final client report. The next step in
determining the price is to add 30 percent to that cost estimate. This becomes the price estimate given to the
potential research client. This suggests that Insight Research Associates uses a(n) _____ pricing objective.
a. profit-oriented
b. market share maximization
c. status quo
d. sales maximization
e. supply-demand equalization
profit-oriented
Thompson Pool and Patio is known for quality pool installations, excellent customer service,
and reasonable prices. If you want to have a Thompson pool, you will have to wait about six months due to
demand for their product. While Thompson could probably price its product higher, given the demand, they
don't. Instead, the company sets its price so that it will earn a reasonable level of profits. Thompson seems
to base its pricing policy on:
a. profit maximization.
b. earning satisfactory profits.
c. creating retained earnings.
d. making the most money as possible.
e. decreasing consumer demand.
and reasonable prices. If you want to have a Thompson pool, you will have to wait about six months due to
demand for their product. While Thompson could probably price its product higher, given the demand, they
don't. Instead, the company sets its price so that it will earn a reasonable level of profits. Thompson seems
to base its pricing policy on:
a. profit maximization.
b. earning satisfactory profits.
c. creating retained earnings.
d. making the most money as possible.
e. decreasing consumer demand.
earning satisfactory profits.
_____ is equal to net profit after taxes divided by total assets.
a. Return on investment
b. Economic order quantity
c. Target-on-sales
d. Retained earnings
e. Efficiency maximization
a. Return on investment
b. Economic order quantity
c. Target-on-sales
d. Retained earnings
e. Efficiency maximization
Return on investment