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Marketing The Core 7th Edition By Kerin – Test Bank
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Marketing The Core 7th Edition By Kerin – Test Bank

$35.00 Original price was: $35.00.$20.00Current price is: $20.00.

This is not a Textbook. Please check the free sample before buying.

Edition: 7th Edition

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Resource Type: Test bank

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Marketing The Core 7th Edition By Kerin – Test Bank

Chapter 11

Test Bank

  1. Amazon wanted lower retail prices for e-books to
  2. lower royalties to authors.
  3. eliminate distributors.
  4. raise prices overall for printed books.
  5. undermine its rival, Barnes & Noble.
  6. E. build its e-book business.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 11-01 Describe the nature and importance of pricing and the approaches used to select an approximate price level.

Topic: Pricing Strategy

Feedback: The dynamics in the e-book market were found to be quite different from the printed book market. For example, traditional distributors, such as bookstores, had an incentive to set a printed book’s retail price from the publisher higher. In contrast, e-reader suppliers, such as Amazon, wanted lower retail prices for e-books to build the e-reader business.

  1. To accommodate the changes in the book selling market, publishers changed their pricing approach so that
  2. rebates could be paid to the bookstores.
  3. readers would pay more so that distributors would continue to profit.
  4. distributors would no longer make a profit on every e-book sold.
  5. D. distributors would get a commission on every e-book sold.
  6. eventually e-books would be free to distribute.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 11-01 Describe the nature and importance of pricing and the approaches used to select an approximate price level.

Topic: Pricing Strategy

Feedback: In 2010, book publishers changed their pricing approach. Publishers would set e-book list retail prices, and distributors, like Amazon, Barnes & Noble, or Apple, would get a commission on every e-book sold. The commission was usually 30 percent.

  1. With the introduction of a revised pricing policy for e-books, distributors could still set their own retail prices, but with a restriction. Distributors could set prices below a publisher’s retail list price as long as the discount
  2. was no more than 15%.
  3. exceeded the profit expected by the publisher.
  4. C. did not exceed the commission received from a publisher.
  5. would not result in prices lower than for equivalent hard copy books.
  6. would not result in a price below cost.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 2 Medium

Learning Objective: 11-01 Describe the nature and importance of pricing and the approaches used to select an approximate price level.

Topic: Pricing Strategy

Feedback: Distributors could still set their own retail prices, but with a restriction. Distributors could set prices below a publisher’s retail list price as long as they did not exceed the commission received from a publisher.

  1. The money or other considerations (including other products and services) exchanged for the ownership or use of a product or service is referred to as
  2. a fee.
  3. value.
  4. remuneration.
  5. D. a price.
  6. an exchange rate.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 11-01 Describe the nature and importance of pricing and the approaches used to select an approximate price level.

Topic: Setting Prices

Feedback: Key term definition—price.

  1. Price refers to
  2. the value assigned to the exchange of products and services for other products and services.
  3. the value judgment made by both the buyer and seller regarding an item’s worth.
  4. C. the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.
  5. the value assessed for the benefits of using a product or service.
  6. the highest monetary value a customer is willing to pay for a product or service.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 11-01 Describe the nature and importance of pricing and the approaches used to select an approximate price level.

Topic: Setting Prices

Feedback: Key term definition—price.

  1. From a marketing viewpoint, __________ is the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.
  2. value
  3. B. price
  4. barter
  5. currency
  6. a tariff

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 11-01 Describe the nature and importance of pricing and the approaches used to select an approximate price level.

Topic: Setting Prices

Feedback: Key term definition—price.

  1. All of the following are alternate names for price except which?
  2. a premium
  3. barter
  4. tuition
  5. a commission
  6. E. profit

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 11-01 Describe the nature and importance of pricing and the approaches used to select an approximate price level.

Topic: Setting Prices

Feedback: Tuition, rent, interest, premiums, fees, dues, fares, salaries, commissions, and wages are all forms of price. An offering’s price is used to determine its profit according to the profit equation.

  1. Which of the following is an example of a price?
  2. A. college tuition
  3. operating costs
  4. liquidity
  5. value
  6. stockholders’ equity

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 11-01 Describe the nature and importance of pricing and the approaches used to select an approximate price level.

Topic: Setting Prices

Feedback: The price paid for products and services goes by many names. A student pays tuition for education.

  1. Insurance premiums, entrance fees, train fares, and organization dues are all examples of
  2. premiums.
  3. barter.
  4. profit.
  5. D.
  6. outlays.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 11-01 Describe the nature and importance of pricing and the approaches used to select an approximate price level.

Topic: Setting Prices

Feedback: Tuition, rent, interest, premiums, fees, dues, fares, salaries, commissions, and wages are all synonyms for price.

 

 

10. All of the following statements about price are true except which?

 

A. Small changes in price can have big effects on both the number of units sold and company profit.

 

B. The price for a product or service must earn a profit for the company.

 

C. For most products and services, there is an agreed-upon price range set by makers.

 

D. The price must be right—in the sense that customers must be willing to pay it.

 

E. The price must generate enough sales dollars to pay for the cost of developing, producing, and marketing the product.

 

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