ACME Corp. offers a price discount to encourage prompt payment. Which of the following is it likely to use?

a. quantity discount

b. cash discount

c. seasonal discount

d. trade discount

e. allowance

Answer: b. cash discount

Which of the following charges the same price to all customers regardless of geographic location, and the price is based on average shipping costs for all customers?

a. zone pricing

b. uniform geographic pricing

c. base-point pricing

d. F.O.B. destination pricing

e. freight absorption pricing

Answer: b. uniform geographic pricing

Which of the following pass on to a business customer the cost savings gained through economies of scale?

a. allowances

b. cash discounts

c. trade discounts

d. seasonal discounts

e. quantity discounts

Answer: e. quantity discounts

The Federal Trade Commission is investigating ACME Corp. for using misleading price tags at its outlet stores to deceive customers into believing they are getting a bargain on Wile E. branded items. Which of the following does the FTC believe ACME is guilty of?

a. price fixing

b. nonprice competition

c. deceptive pricing

d. price competition

e. price discrimination

Answer: c. deceptive pricing

Maria is concerned about both price and quality of a product. Marketers would best describe her as which of the following?

a. utility-sensitive

b. prestige-sensitive

c. price-obsessed

d. price-conscious

e. value-conscious

Answer: e. value-conscious

A price developed in the buyer's mind through experience with the product is a(n) _____.

a. internal reference price

b. break-even point

c. trade discount

d. experience price

e. external reference price

Answer: a. internal reference price

Which of the following is the point at which the costs of producing a product equals the revenue made from selling the product?

a. fixed cost

b. marginal revenue

c. break-even point

d. marginal cost

e. demand curve

Answer: c. break-even point

Which of the following is calculated by dividing the variable costs by the number of units produced?

a. average variable cost

b. marginal cost

c. average total cost

d. break-even point.

e. average fixed cost

Answer: a. average variable cost

A business's rental of production space is an example of a _____.

a. marginal cost

b. total cost

c. break-even point

d. fixed cost

e. variable cost

Answer: d. fixed cost

Spacely Inc.'s sprockets have inelastic demand. If Spacely raises the price of sprockets, what will be the result?

a. a decrease in product inventory

b. an increase in market share

c. a decrease in market share

d. a decrease in total revenue

e. an increase in total revenue

Answer: e. an increase in total revenue

ACME Corp.'s widgets have elastic demand. If ACME raises the price of widgets, what will be the result?

a. an increase in market share

b. a decrease in total revenue

c. a decrease in market share

d. a decrease in product inventory

e. an increase in total revenue

Answer: b. a decrease in total revenue

Which of the following shows the quantity of products a firm expects to sell at various prices if other factors remain constant?

a. marginal analysis

b. demand line

c. demand curve

d. reference price

e. break-even point

Answer: c. demand curve

Which of the following is a major advantage of nonprice competition?

a. building market share

b. fostering a price-conscious mindset

c. fostering a value-conscious mindset

d. building customer loyalty toward the brand

e. exceeding the breakeven point

Answer: d. building customer loyalty toward the brand

ACME Corp. and Spacely Inc. are engaged in intense price competition in order to boost market share of their widgets. This is best described as _____.

a. nonprice competition

b. a price war

c. bartering

d. elasticity of demand

e. price discrimination

Answer: b. a price war

To compete effectively on a price basis, a firm should ____.

a. be the low-cost seller of the product

b. have the lowest market share

c. have the highest quality

d. have the highest market share

e. be the high-cost seller of the product

Answer: a. be the low-cost seller of the product

Which of the following is NOT one of the factors that influence the assessment of value?

a. motivations to use available information about prices

b. time constraints

c. elasticity of demand

d. perceived quality

e. price levels

Answer: c. elasticity of demand

Price is a key element in the marketing mix because it relates directly to the generation of total _____.

a. elasticity of demand

b. revenue

c. market share

d. profits

e. price competition

Answer: b. revenue

Which of the following statements about the international use of the Internet is true?

A. The Internet cannot be efficiently used with an IMC program in the global marketplace

B. Many companies hope word-of-mouth advertising will encourage greater use of the Internet.

C. The Internet is an important IMC tool for both large and small companies around the world.

D. Though English is the native language for only 8 percent of the world's population, English is the language used in less than 20 percent of all e-commerce Web sites.

E. During its formative years, the Internet was largely an Asian phenomenon.

Answer: C.

Cartoon Network encountered problems introducing the cable channel to Scandinavian television because of opposition to the violent nature of some cartoons like those with the Road Runner and Tom and Jerry. Turner could have used _____ to counter negative publicity and communicate the company's commitment to non-violence.

A. advertising

B. sales promotion

C. public relations

D. direct mail

E. the Internet

Answer: C.

_____ is the promotional function that deals with problems involving local governments, media, trade associations and the general public. 

A. Advertising

B. Marketing

C. Personal selling

D. Sales promotion

E. Public relations

Answer: E.