MKT 325 Exam 3 || 100% Faultless Answers.
It is calculated using contribution per unit costs and total fixed costs correct answers Which of
the following statements about the break-even point is true?
Fair price correct answers Often consumers base their perception of price on what they perceive
to be the customary or _____.
Make a price-quality inference correct answers When consumers are unable to judge the quality
of a product through examination or prior experience they usually do which of the following?
Increasing the price of prestige products can make them seem more desirable correct answers
Why are prestige products often an exception to the law of demand?
Loss-leader pricing correct answers Some retailers advertise items at very low prices or even
below cost just to get customers into the store. The rationale for implementing this ________
strategy is the belief that once a customer is in the store she will buy the advertised item as well
as other items at regular prices
There should be little chance that competitors can quickly enter the market correct answers
Which of the following should be true for a skimming price to be successful?
Trial pricing correct answers When a beverage maker came out with a new drink and priced it at
half price for a month to attract buyers, the company was using a(n) ____ strategy.
They are relatively simple to calculate correct answers Which of the following is an advantage of
using cost-based pricing methods?
Freemium correct answers _____ is a new business strategy of offering a basic version of a
product free of charge and then charging for upgraded versions of the product
False correct answers A demand curve never appears on a graph as a straight line
Skimming pricing correct answers Valeo Fashions has just introduced a new line of fashion
dresses for teens. The line with initially enter the market at high prices in a ____ strategy.
Competition correct answers Which of the following is an external influence that affects pricing
decisions?
Psychological pricing correct answers A hamburger stand near the local mall sells burgers for
$3.99, drinks for $1.99, and fries for $1.49, while a gourmet restaurant nearby sells entrees for
$20, $30, and $45. Both of these restaurants are using ______.
Dynamic pricing correct answers On the Internet, price can easily be adjusted to meet changes in
the marketplace. This is called ________.
, Break-even point correct answers As a manufacturer increases price, the _____ drops.
If prices decrease, customers will buy more correct answers According to the law of demand,
which of the following is true?
Competitive effect correct answers A company that intends to maintain low-end pricing policies
to make the market unattractive for its competitors is using which of the following pricing
objectives in its price planning?
Competitive effect correct answers When Home Depot stores entered the Canadian market, there
were already stores providing similar services and products. To get people to try Home Depot,
the chain deliberately sold merchandise below the price that the Canadians were used to. What
type of pricing objective did Home Depot use?
Predatory pricing correct answers By using ______, a company deliberately sets a low price with
the intention of driving its competition out of business
A fad such as Beanie Babies correct answers In price planning, a firm would be most likely to set
a profit objective for which of the following products?
Food cart supplies correct answers Which of the following is an example of a variable cost for an
amusement park?
Bait-and-Switch tactics correct answers Enforcing laws against _____ is complicated because
such practices are similar to the legal practice of "trading up"
Elasticity correct answers Which of the following is NOT a type of pricing objective?
Fixed costs correct answers _____ do not vary with the number of units produced.
Encourage purchase correct answers In which step of the hierarchy of effects would a marketer
most likely reply on samples and coupons?
point-of-purchase (POP) display correct answers An example of a(n) ____ is a five-foot
cardboard display of Cap'n Crunch next to Cap'n Crunch cereal boxes.
A push strategy correct answers An ad in a professional journal targeted to an audience of
dentists asked dentists to recommend Crest toothpaste to their patients. It offered toothpaste
samples that dentists could buy at cost to give to their patients to encourage patients to take
better care of their teeth. The manufacturer of Crest toothpaste was using ________.
Create desire correct answers In which step of the hierarchy of effects would a marketer most
likely use celebrity endorsements and status appeals?
Out-of-home correct answers Ads on the sides of delivery trucks, ads on the fence around a
baseball field, and ads that you can see on interstate billboards are all examples of ______ media.
It is calculated using contribution per unit costs and total fixed costs correct answers Which of
the following statements about the break-even point is true?
Fair price correct answers Often consumers base their perception of price on what they perceive
to be the customary or _____.
Make a price-quality inference correct answers When consumers are unable to judge the quality
of a product through examination or prior experience they usually do which of the following?
Increasing the price of prestige products can make them seem more desirable correct answers
Why are prestige products often an exception to the law of demand?
Loss-leader pricing correct answers Some retailers advertise items at very low prices or even
below cost just to get customers into the store. The rationale for implementing this ________
strategy is the belief that once a customer is in the store she will buy the advertised item as well
as other items at regular prices
There should be little chance that competitors can quickly enter the market correct answers
Which of the following should be true for a skimming price to be successful?
Trial pricing correct answers When a beverage maker came out with a new drink and priced it at
half price for a month to attract buyers, the company was using a(n) ____ strategy.
They are relatively simple to calculate correct answers Which of the following is an advantage of
using cost-based pricing methods?
Freemium correct answers _____ is a new business strategy of offering a basic version of a
product free of charge and then charging for upgraded versions of the product
False correct answers A demand curve never appears on a graph as a straight line
Skimming pricing correct answers Valeo Fashions has just introduced a new line of fashion
dresses for teens. The line with initially enter the market at high prices in a ____ strategy.
Competition correct answers Which of the following is an external influence that affects pricing
decisions?
Psychological pricing correct answers A hamburger stand near the local mall sells burgers for
$3.99, drinks for $1.99, and fries for $1.49, while a gourmet restaurant nearby sells entrees for
$20, $30, and $45. Both of these restaurants are using ______.
Dynamic pricing correct answers On the Internet, price can easily be adjusted to meet changes in
the marketplace. This is called ________.
, Break-even point correct answers As a manufacturer increases price, the _____ drops.
If prices decrease, customers will buy more correct answers According to the law of demand,
which of the following is true?
Competitive effect correct answers A company that intends to maintain low-end pricing policies
to make the market unattractive for its competitors is using which of the following pricing
objectives in its price planning?
Competitive effect correct answers When Home Depot stores entered the Canadian market, there
were already stores providing similar services and products. To get people to try Home Depot,
the chain deliberately sold merchandise below the price that the Canadians were used to. What
type of pricing objective did Home Depot use?
Predatory pricing correct answers By using ______, a company deliberately sets a low price with
the intention of driving its competition out of business
A fad such as Beanie Babies correct answers In price planning, a firm would be most likely to set
a profit objective for which of the following products?
Food cart supplies correct answers Which of the following is an example of a variable cost for an
amusement park?
Bait-and-Switch tactics correct answers Enforcing laws against _____ is complicated because
such practices are similar to the legal practice of "trading up"
Elasticity correct answers Which of the following is NOT a type of pricing objective?
Fixed costs correct answers _____ do not vary with the number of units produced.
Encourage purchase correct answers In which step of the hierarchy of effects would a marketer
most likely reply on samples and coupons?
point-of-purchase (POP) display correct answers An example of a(n) ____ is a five-foot
cardboard display of Cap'n Crunch next to Cap'n Crunch cereal boxes.
A push strategy correct answers An ad in a professional journal targeted to an audience of
dentists asked dentists to recommend Crest toothpaste to their patients. It offered toothpaste
samples that dentists could buy at cost to give to their patients to encourage patients to take
better care of their teeth. The manufacturer of Crest toothpaste was using ________.
Create desire correct answers In which step of the hierarchy of effects would a marketer most
likely use celebrity endorsements and status appeals?
Out-of-home correct answers Ads on the sides of delivery trucks, ads on the fence around a
baseball field, and ads that you can see on interstate billboards are all examples of ______ media.
