Question 1

Which of the following are examples of elements involved in Step 1 of the price-setting process: identify pricing objectives?

Accepted Answer

Identifying pricing objectives involves determining the goals and targets that a company aims to achieve with its pricing strategy. Profit, market share, and survival are objectives that often guide pricing decisions. Estimation of demand, sales revenue, and price elasticity (B) are elements involved in Step 2 of the process, which is to estimate demand and revenue for the product or service. Cost estimation, marginal analysis, and break-even analysis (C) are elements involved in Step 3, which is to determine the cost structure of the product or service. Demand for the product class and brand, newness of the product, and competition (D) are elements involved in Step 4, which is to analyze the competitive environment and determine the pricing constraints. Market segmentation, targeting, and positioning (E) are elements involved in Step 5, which is to select a pricing strategy based on the analysis of Steps 1-4.

Question 2

Objectives like profit,market share,and survival as well as constraints such demand for product class and brand,newness,costs,and competition are issues that would be addressed during __________ of the price-setting process.

Accepted Answer

Step 1 of the price-setting process involves identifying pricing objectives and constraints, which include factors like profit, market share, survival, demand, newness, costs, and competition.

Question 3

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would estimate dollar and unit sales revenues?

Accepted Answer

The answer of Figure 13-2 above represents the six steps...

Question 4

Which of the following would be an example of a constraint in Step 1 of the price-setting process?

Accepted Answer

A constraint is a limitation or restriction that affects the pricing decision. Option E describes a constraint related to competition, indicating that the company cannot simply set any price they want because they need to consider what competitors are charging. The other options provide information that could influence the pricing decision but do not indicate a clear limitation or restriction on the pricing decision-making process.

Question 5

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would estimate costs and perform a marginal analysis to assess profitability?

Accepted Answer

Estimating costs and performing a marginal analysis to assess profitability is typically part of determining the cost structure and potential profitability, which is often done in the third step of setting a price.

Question 6

Which of the following are elements of Step 3 in the price-setting process?

Accepted Answer

The answer of Which of the following are elements of...

Question 7

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would conduct a break-even analysis?

Accepted Answer

The break-even analysis is typically conducted in the step where the firm determines the cost, volume, and profit relationships, which is often the third step in the pricing process.

Question 8

Which of the following would be an example of an objective in Step 1 of the price-setting process?

Accepted Answer

Step 1 of the price-setting process involves setting pricing objectives, such as achieving a specific profit target, which is reflected in option C.

Question 9

Which of the following would be an example of a constraint in Step 1 of the price-setting process?

Accepted Answer

Option E is a constraint because it acknowledges the uncertainty surrounding the demand for the new product, which limits the pricing decisions that can be made. The other options are not constraints, but instead provide information or suggestions that may influence the pricing decision.

Question 10

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would estimate demand?

Accepted Answer

Step B is where a firm would estimate demand. This step involves analyzing consumer behavior and market trends to determine how much customers are willing to pay for a product or service.

Question 11

Which of the following would be an example of an objective in Step 1 of the price-setting process?

Accepted Answer

Pricing objectives would include concerns such as profit,market share,and survival.

Question 12

Estimating cost,conducting a marginal analysis,and performing a break-even analysis are issues that would be addressed during __________ of the price-setting process.

Accepted Answer

Estimating cost, conducting a marginal analysis, and performing a break-even analysis are all part of Step 3, which is determining the cost-demand relationship. This step is crucial in setting a price that will cover costs while still being competitive in the market.

Question 13

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would identify pricing objectives such as profit,market share,and survival?

Accepted Answer

The first step in setting price is to identify pricing objectives.

Question 14

Which of the following would be an example of an objective in Step 1 of the price-setting process?

Accepted Answer

Step 1 of the price-setting process involves setting pricing objectives, such as achieving a specific market share, rather than determining specific prices or strategies.

Question 15

An analysis of a prospective product shows that sales for it are expected to grow by at least 10 percent each year over the next 5 years before it enters the maturity phase of its product life cycle.This type of analysis would provide useful information in which step of the price-setting process?

Accepted Answer

The answer of An analysis of a prospective product shows...

Question 16

Estimating demand,sales revenue,and price elasticity are issues that would be addressed during __________ of the price-setting process.

Accepted Answer

Estimating demand, sales revenue, and price elasticity are typically addressed during Step 2 of the price-setting process, which involves understanding market demand and analyzing the competition. During this step, businesses gather and analyze data on consumer behavior, market trends, and competitor pricing strategies to determine the optimal price for their products or services.

Question 17

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would assess the constraints on the demand for the product class and brand?

Accepted Answer

The answer of Figure 13-2 above represents the six steps...

Question 18

Which of the following represent elements of Step 2 of the price-setting process?

Accepted Answer

Step 2 of the price-setting process involves analyzing demand, sales revenue, and price elasticity to estimate the optimal price point for a product. Therefore, options A, C, D, and E are not elements specifically related to this step.

Question 19

George and Alice Renfro decided to start a family business in 1990.Its product-chowchow,a southern regional food.To determine how they would price the chowchow,the Renfros had to: (1)examine the demand for the product and how much it would cost to distribute the product to area grocery stores.For the Renfros,Step 1 of their price-setting process consists of

Accepted Answer

The answer of George and Alice Renfro decided to start...

Question 20

Which of the following statements would most likely be spoken during Step 2 of the price-setting process?

Accepted Answer

Step 2 of the price-setting process involves analyzing the demand for the product and evaluating the prices of competitors. A statement that addresses the potential impact of price increase on customer behavior would be more relevant in this step. Option D is the only statement that shows concern for the potential loss of customers due to a price increase, making it the best choice for Step 2.

Quiz 13: Building the Price Foundation

Which of the following are examples of elements involved in Step 1 of the price-setting process: identify pricing objectives?

Objectives like profit,market share,and survival as well as constraints such demand for product class and brand,newness,costs,and competition are issues that would be addressed during __________ of the price-setting process.

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would estimate dollar and unit sales revenues?

Which of the following would be an example of a constraint in Step 1 of the price-setting process?

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would estimate costs and perform a marginal analysis to assess profitability?

Which of the following are elements of Step 3 in the price-setting process?

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would conduct a break-even analysis?

Which of the following would be an example of an objective in Step 1 of the price-setting process?

Which of the following would be an example of a constraint in Step 1 of the price-setting process?

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would estimate demand?

Which of the following would be an example of an objective in Step 1 of the price-setting process?

Estimating cost,conducting a marginal analysis,and performing a break-even analysis are issues that would be addressed during __________ of the price-setting process.

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would identify pricing objectives such as profit,market share,and survival?

Which of the following would be an example of an objective in Step 1 of the price-setting process?

An analysis of a prospective product shows that sales for it are expected to grow by at least 10 percent each year over the next 5 years before it enters the maturity phase of its product life cycle.This type of analysis would provide useful information in which step of the price-setting process?

Estimating demand,sales revenue,and price elasticity are issues that would be addressed during __________ of the price-setting process.

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would assess the constraints on the demand for the product class and brand?

Which of the following represent elements of Step 2 of the price-setting process?

Which of the following statements would most likely be spoken during Step 2 of the price-setting process?