Question 1

_____ is defined as the amount of money and/or other items needed to acquire a product

Accepted Answer

Price is defined as the amount of money and/or other items needed to acquire a product. It represents the value that must be exchanged to obtain a good or service.

Question 2

A bottle of Glenfiddich whisky costs $21 in Germany, but costs $35 in Denmark, $43 in Sweden, and $55 in Norway. The Scandinavian countries clamped down on liquor consumption after almost endemic abuse during the 19thcentury when the average Swede consumed 46 liters a year. The Scandinavian countries used _____ to try to reduce alcoholism.

Accepted Answer

The Scandinavian countries used price as a tool to try to reduce alcoholism by making alcohol more expensive, as indicated by the higher prices of whisky in Denmark, Sweden, and Norway compared to Germany.

Question 3

According to economic theory, _____ is the attribute of an item that makes it capable of satisfying wants.

Accepted Answer

Utility is the attribute of an item that makes it capable of satisfying wants, according to economic theory. This concept is fundamental in understanding how goods and services fulfill the needs and desires of consumers.

Question 4

Wrenna is a piano teacher. Timothy wants to learn how to play the piano. She gives him lessons in payment for keeping her yard looking its best. This is an example of:

Accepted Answer

This is an example of barter, which is a system of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. In this case, piano lessons are exchanged for yard maintenance services.

Question 5

Tullia is self-employed and is having trouble understanding her federal tax forms. She has agreed to bake a four-layer wedding cake for Stephanie if Stephanie, an accountant, will prepare Tullia's tax forms. This is an example of:

Accepted Answer

This is an example of bartering, which is a form of trade where goods or services are exchanged directly for other goods or services without using a medium of exchange, such as money. In this case, Tullia is exchanging her service of baking a wedding cake for Stephanie's service of preparing her tax forms.

Question 6

Which of the following is an example of a price?

Accepted Answer

All of the options listed are examples of prices because they represent the amount of money exchanged for a service or the use of a good.

Question 7

Which of the following is an example of a price?

Accepted Answer

All the options listed are examples of prices. A price is the amount of money expected, required, or given in payment for something. In each option, money is exchanged for a service or the use of an asset, fitting the definition of a price.

Question 8

Price:

Accepted Answer

Price serves multiple roles in an economy: it allocates resources by signaling where they are most valued, regulates the economic system by balancing supply and demand, influences production decisions based on profitability, and should ideally be set considering social responsibility to ensure fairness and accessibility.

Question 9

Which of the following is NOT one of the factors of production?

Accepted Answer

Product is not considered a factor of production. Factors of production include labor, capital, land, and entrepreneurship, which are inputs used in the production of goods or services.

Question 10

The allocation of scarce resources in a capitalistic system is controlled primarily by:

Accepted Answer

In a capitalistic system, the allocation of scarce resources is primarily controlled by price mechanisms. Prices rise and fall based on supply and demand, guiding resources towards their most valued uses.

Question 11

The text identifies four distinct segments of shoppers based on the shoppers' perceptions of prices. Which of the following is NOT one of those segments?

Accepted Answer

The segments identified are based on shoppers' perceptions of prices and their shopping behavior. "Laggard" is not a term typically used to describe a segment based on price perception; it is more often used in the context of technology adoption.

Question 12

Kelly usually pays $6.75 for a particular brand of cat litter that has an additive deodorizer, but if a competitive brand that uses a baking soda additive to reduce odor goes on sale, she will buy the brand that costs less. In which distinct consumer segment based on price perceptions does Kelly belong in this instance?

Accepted Answer

Kelly's behavior of choosing a product based on its sale price, rather than brand loyalty or other factors, aligns with the characteristics of a "deal shopper." Deal shoppers are consumers who seek out and purchase items that are on sale or less expensive, indicating their primary motivation is to save money on purchases.

Question 13

Yoshi believes there is no need to waste money. He likes to feel he is getting the lowest price on everything he buys. In distinct consumer segment based on price perceptions does Yoshi belong?

Accepted Answer

Yoshi belongs to the "deal shopper" segment as he focuses on getting the lowest price for his purchases, indicating he is motivated by deals and discounts.

Question 14

The text identifies four distinct segments of shoppers based on the shoppers' perceptions of prices. These four shopper segments are identifiable by _____ factors.

Accepted Answer

Psychographic factors relate to shoppers' perceptions, attitudes, and lifestyles, which are used to distinguish between different shopper segments based on their perceptions of prices.

Question 15

Rolex is famous as a brand of very expensive watches. If Rolex were to market a watch that sold for $10.95, sales of the watch would probably be slow because of the perceived relationship between price and:

Accepted Answer

The perceived relationship between price and product quality is a significant factor in consumer behavior, especially for luxury brands like Rolex. A very low price for a Rolex watch would likely lead consumers to question the quality of the product, given the brand's reputation for high-quality, expensive watches. This discrepancy could lead to slow sales as it does not align with the brand's established market position and consumer expectations.

Question 16

Double-sized brass beds typically sell for about $1200. If a store that features antique reproductions were to try to sell a solid brass bed for $35, sales of the beds would probably be slow because of the perceived relationship between price and:

Accepted Answer

The perceived relationship between price and product quality often leads consumers to assume that a significantly lower price indicates inferior quality, especially for items like antique reproductions where craftsmanship and material quality are highly valued.

Question 17

When Kalani went to buy a silk blouse for his wife, he decided to go to an upscale boutique and look for one. He was amazed when he entered the store. It looked more like an elegant living room where someone had casually arranged a few items of clothing in strategic locations. The sales clerk greeted Kalani by asking if would he like a cup of coffee and a freshly baked cookie. Before Kalani left, he had spent $200 for a blouse. The price seemed appropriate to Kalani because he perceived a strong relationship between price and:

Accepted Answer

Kalani's perception of the price being appropriate due to the upscale boutique environment and the high level of service suggests he associated the high price with high product quality.

Question 18

_____ is the ratio of perceived benefits to price and any other incurred costs.

Accepted Answer

Value is the ratio of perceived benefits to price and any other incurred costs, reflecting how much consumers believe they are getting in comparison to what they are paying.

Question 19

The value of a product is the ratio of perceived benefits to price and any other incurred costs. These incurred costs would include:

Accepted Answer

Incurred costs include time spent shopping for the product, as it is a cost to the consumer in terms of effort and time.

Question 20

Which of the following factors can limit how much effect pricing has on a company's marketing program?

Accepted Answer

The answer of Which of the following factors can limit...

Quiz 12: Price Determination

_____ is defined as the amount of money and/or other items needed to acquire a product

According to economic theory, _____ is the attribute of an item that makes it capable of satisfying wants.

Wrenna is a piano teacher. Timothy wants to learn how to play the piano. She gives him lessons in payment for keeping her yard looking its best. This is an example of:

Tullia is self-employed and is having trouble understanding her federal tax forms. She has agreed to bake a four-layer wedding cake for Stephanie if Stephanie, an accountant, will prepare Tullia's tax forms. This is an example of:

Which of the following is an example of a price?

Which of the following is an example of a price?

Price:

Which of the following is NOT one of the factors of production?

The allocation of scarce resources in a capitalistic system is controlled primarily by:

The text identifies four distinct segments of shoppers based on the shoppers' perceptions of prices. Which of the following is NOT one of those segments?

Yoshi believes there is no need to waste money. He likes to feel he is getting the lowest price on everything he buys. In distinct consumer segment based on price perceptions does Yoshi belong?

The text identifies four distinct segments of shoppers based on the shoppers' perceptions of prices. These four shopper segments are identifiable by _____ factors.

Rolex is famous as a brand of very expensive watches. If Rolex were to market a watch that sold for $10.95, sales of the watch would probably be slow because of the perceived relationship between price and:

Double-sized brass beds typically sell for about $1200. If a store that features antique reproductions were to try to sell a solid brass bed for $35, sales of the beds would probably be slow because of the perceived relationship between price and:

_____ is the ratio of perceived benefits to price and any other incurred costs.

The value of a product is the ratio of perceived benefits to price and any other incurred costs. These incurred costs would include:

Which of the following factors can limit how much effect pricing has on a company's marketing program?