Question 1

Jaggd Inc. ,an electronic goods manufacturing company,was planning to launch its latest smartphone in the market.Within the first few days of launching the phone,Jaggd wanted to earn as much revenue as the cost incurred in manufacturing the phone.So,it priced the phone about as high as the market would allow.In this case,Jaggd entered the market with a__________approach to pricing the smartphone.

Accepted Answer

The answer of Jaggd Inc. ,an electronic goods manufacturing company,was...

Question 2

Jaggd Inc. ,an electronic goods manufacturing company,was planning to launch its latest smartphone in the market.Within the first few days of launching the phone,Jaggd wanted to earn as much revenue as the cost incurred in manufacturing the phone.So,it priced the phoneabout as high as the market would allow.In this case,Jaggd entered the market with a _____ approach to pricing the smartphone.​
A)market share pricing
B)​profit maximization
C)​demand-oriented
D)sales maximization

Accepted Answer

Jaggd Inc. wanted to earn as much revenue as the cost incurred in manufacturing the phone within the first few days of launching the phone. This pricing approach is known as profit maximization, where the company sets the highest possible price for a product to earn a profit.

Question 3

​The quantity of a product that people will buy is most likely to decrease as the product's _____ increases.
A)distribution
B)​quality
C)​price
D)promotion

Accepted Answer

This is known as the law of demand, which states that as the price of a product increases, the quantity demanded will decrease. This is because people will generally seek alternatives or reduce their consumption of the product as it becomes more expensive.

Question 4

Why do manufacturers of products that are in the maturity stage of the product life cycle prefer to offer similar prices?

Accepted Answer

The answer of Why do manufacturers of products that are...

Question 5

When the price of a product is set at a level where demand and supply are the same,a state of__________has been achieved.

Accepted Answer

The answer of When the price of a product is...

Question 6

When consumer demandis sensitive to price changes,_____ occurs.​
A)inelastic demand
B)​sales maximization
C)​elastic demand
D)profit maximization

Accepted Answer

Elastic demand occurs when consumer demand is sensitive to price changes, meaning that a small change in price leads to a significant change in demand. This can impact a company's pricing strategies and ability to maximize revenue.

Question 7

__________costs do not change as output is increased or decreased.

Accepted Answer

The answer of __________costs do not change as output is...

Question 8

Randy's Apparels Inc.plans to expand its customer base and product line.It introduces a new line of designer wear that are very expensive and exclusively available at Randy's.It emphasizes the high quality and exclusivity of this new line of products in its advertisements.In this case,Randy's Apparels has used__________for the new line of products.

Accepted Answer

The answer of Randy's Apparels Inc.plans to expand its customer...

Question 9

​Diffusion Research Company specializes in conducting market research for various firms.When it receives proposals for new research,its management will first estimate the cost of conducting the research and producing and delivering the final research report.The management then adds 30 percent to that cost estimate.This becomes the price estimate given to the potential research client.This suggests that Diffusion Research Company uses a _____ pricing objective.
A)profit-oriented
B)​market share maximization
C)​status quo
D)sales maximization

Accepted Answer

Diffusion Research Company is adding a 30% markup on top of its estimated cost, indicating that it aims to make a profit. Therefore, it uses a profit-oriented pricing objective.

Question 10

A cost that changes with the level of output is called a(n)__________cost.

Accepted Answer

The answer of A cost that changes with the level...

Question 11

When consumer demand is sensitive to price changes,__________occurs.

Accepted Answer

The answer of When consumer demand is sensitive to price...

Question 12

Diffusion Research Company specializes in conducting market research for various firms.When it receives proposals for new research,its management will first estimate the cost of conducting the research and producing and delivering the final research report.The management then adds 30 percent to that cost estimate.This becomes the price estimate given to the potential research client.This suggests that Diffusion Research Company uses a__________pricing objective.

Accepted Answer

The answer of Diffusion Research Company specializes in conducting market...

Question 13

Justify the statement,"Shopping bots have made the purchase decisions of consumers more efficient."

Accepted Answer

The answer of Justify the statement,"Shopping bots have made the...

Question 14

How do manufacturers benefit from prestige pricing?

Accepted Answer

The answer of How do manufacturers benefit from prestige pricing?...

Question 15

At a price of $2,000,the demand for Ranger 60 mountain bikes from Cloyd's Inc.is 300,but only 191 bikes are being made.At a price of $2,300,the demand for the bikes is 250,and exactly 250 bikes are being made.If Cloyd'ssells each one of the bikes at a price lower than $2,300,_____.​
A)a shortage of bikes will be created
B)​the number of bikes being made will increase drastically
C)​an inelastic demand for the bikes will be created
D)the demand and supply for the bike will attain equilibrium

Accepted Answer

At a price lower than $2,300, the demand for the bikes is higher than the supply, therefore a shortage of bikes will be created.

Question 16

At a price of $2,000,the demand for Ranger 60 mountain bikes from Cloyd's Inc.is 300,but only 191 bikes are being made.At a price of $2,300,the demand for the bikes is 250,and exactly 250 bikes are being made.If Cloyd's sells each one of the bikes at a price lower than $2,300,__________.

Accepted Answer

The answer of At a price of $2,000,the demand for...

Question 17

Jade claims that a consumer's psychological state of mind plays a vital role in how he perceives the price and quality of a product.Provide arguments to support his claim.

Accepted Answer

The answer of Jade claims that a consumer's psychological state...

Question 18

When Jerry took delivery of his brand new Karuaf automobile,he was filled with pleasure and excitement as Karuaf is a very expensive brand.This is an example of the__________effect associated with the price-quality relationship.

Accepted Answer

The answer of When Jerry took delivery of his brand...

Question 19

When the price of a product is set at a level where demand and supply are the same,a state of _____ has been achieved.​
A)price equilibrium
B)​stability
C)​inelastic demand
D)symmetry

Accepted Answer

Price equilibrium is the point where the quantity supplied equals the quantity demanded, resulting in a stable price level. This is also known as the market-clearing price, where there are no shortages or excesses in the market. Therefore, option A is the correct choice. The other options (B, C, and D) are not relevant in this context.

Question 20

The quantity of a product that people will buy is most likely to decrease as the product's__________increases.

Accepted Answer

The answer of The quantity of a product that people...

Quiz 20: Pricing Concepts

​The quantity of a product that people will buy is most likely to decrease as the product's _____ increases.

Why do manufacturers of products that are in the maturity stage of the product life cycle prefer to offer similar prices?

When the price of a product is set at a level where demand and supply are the same,a state of__________has been achieved.

When consumer demandis sensitive to price changes,_____ occurs.​

__________costs do not change as output is increased or decreased.

A cost that changes with the level of output is called a(n)__________cost.

When consumer demand is sensitive to price changes,__________occurs.

Justify the statement,"Shopping bots have made the purchase decisions of consumers more efficient."

How do manufacturers benefit from prestige pricing?

At a price of $2,000,the demand for Ranger 60 mountain bikes from Cloyd's Inc.is 300,but only 191 bikes are being made.At a price of $2,300,the demand for the bikes is 250,and exactly 250 bikes are being made.If Cloyd'ssells each one of the bikes at a price lower than $2,300,_____.​

At a price of $2,000,the demand for Ranger 60 mountain bikes from Cloyd's Inc.is 300,but only 191 bikes are being made.At a price of $2,300,the demand for the bikes is 250,and exactly 250 bikes are being made.If Cloyd's sells each one of the bikes at a price lower than $2,300,__________.

Jade claims that a consumer's psychological state of mind plays a vital role in how he perceives the price and quality of a product.Provide arguments to support his claim.

When Jerry took delivery of his brand new Karuaf automobile,he was filled with pleasure and excitement as Karuaf is a very expensive brand.This is an example of the__________effect associated with the price-quality relationship.

When the price of a product is set at a level where demand and supply are the same,a state of _____ has been achieved.​

The quantity of a product that people will buy is most likely to decrease as the product's__________increases.

The quantity of a product that people will buy is most likely to decrease as the product's _____ increases.

When consumer demandis sensitive to price changes,_____ occurs.

At a price of $2,000,the demand for Ranger 60 mountain bikes from Cloyd's Inc.is 300,but only 191 bikes are being made.At a price of $2,300,the demand for the bikes is 250,and exactly 250 bikes are being made.If Cloyd'ssells each one of the bikes at a price lower than $2,300,_____.

When the price of a product is set at a level where demand and supply are the same,a state of _____ has been achieved.