Canterbury Tales - Wife of Bath :: essays papers

Canterbury Tales - Wife of Bath â€Å"The Prologue to the Canterbury Tales† had various extraordinary characters, however the Wife of Bath struck me as the most fascinating character. Through the narrator’s utilization of immediate and aberrant portrayal, huge subtleties, and inspirations for activities I had the option to investigate the particular attributes of â€Å"the commendable lady from next to Bath city.† The storyteller was extremely effective in depicting the spouse. The abundance of the spouse was particular. â€Å"Her hose of best red red† shows the fortune she has. The spouse likewise had enough fortune to venture out to the most significant places of worship in Italy, France, Spain, and Germany. The narrator’s portrayed her appearance well. â€Å"Bold was her face, attractive, and red in hue† permits the peruser to picture the spouse as an alluring lady of her time. The moderately aged lady had amazing huge hips and â€Å"gap-teeth† which express desire. Her overweight figure was an entirely great part of the time; it demonstrated riches and magnificence. â€Å"She’d had five spouses, all at the Church door† permits the peruser to get a handle on much about the wife. Having five spouses shows that she is friendly and inspired by affection and marriage. Her encounters with marriage permit her to be truly proficient of adoration, which is â€Å"an workmanship in which she knew the most established dances.† â€Å"†¦ All at the Church door† demonstrates her commitment to convention and her confidence. Her devotion to the Catholic Church and the restricting Church rules of the time, permit the peruser to gather she didn't separate from her spouses. Along these lines, every last bit of her spouses died, which permits us to close she may have hitched more established men. This well off world-voyager, on a journey to Canterbury, isn't inspired by her confidence as she goes on this average excursion.

Essay on Hardships Expressed in Hughes On the Road and Mother to Son

Hardships Expressed in Hughes On the Road and Mother to Son African-American residents who live in the United States have encountered an extreme life through close to home encounters. They have attempted to acquire fundamental social equality - a battle that has spread over numerous hundreds of years (Mabunda 311). Langston Hughes, writer of the short story On the Road and the sonnet Mother to Son, frequently showed in his composing the hardships experienced by the characters- - results of African American life in the United States. While Hughes and other youthful African-American creators needed to characterize and commend dark workmanship and culture, they were likewise answerable for changing the assumptions of most Americans' mistaken thoughts of dark life (Mabunda 696). The social parts of Hughes' sonnets displayed life as an African-American in the late 1910s to the mid 1960s. His perspectives, in the same way as other authors in his time, came legitimately from individual experience, which gave the peruser a feeling of correspondence that outlined - with craftsmanship as opposed to paper - the ills of the supremacist world. L. Mpho Mabunda announces that the issues and bleak real factors of the African-American could be experienced through the lives of characters and in section, and the message conveyed all the more quietly and adequately (696). The general subject and reason for On the Road and Mother to Son are based on a delineation of the hardships experienced by most African-American residents in the early piece of the century. The two classes graphically detail the way of life and condition wherein the African-American lived. In the twentieth century, a considerable lot of the dark networks in America have existed in an interminable condition of emergency (Black American). As per Kenneth Clark in his include... ... Robinson. The Condition, Elevation, Emigration, and Destiny of the Colored People of the United States. New York: Arno P, 1968. Henry McNeal Turner. Online. Web. 24 Apr. 1998. Hughes, Langston. Mother to Son. Bridges: Literature across Cultures. Eds. Gilbert H. Muller and John A. Williams. New York: McGraw-Hill, 1994. 52. - . On the Road. Bridges: Literature across Cultures. Eds. Gilbert H. Muller and John A.Williams. New York: McGRaw-Hill, 1994. 845-8. Mabunda, L. Mpho, ed. The African American Almanac. seventh ed. Detroit, MI: Gale Research Inc., 1997. Mill operator, R. Baxter, and Evelyn Nettles. Langston Hughes. Concise Dictionary of American Literary Biography: The Age of Maturity, 1929-1941. Detroit,â â â MI: Gale Research Inc., 1989. 150-71. Quarles, Benjamin. The Negro really taking shape of America. London: Collier-Macmillan Ltd., 1969.

Ticonderoga

Ticonderoga Ticonderoga ti?kond?ro ´g? [key], resort village (1990 pop. 2,770), Essex co., NE N.Y., on a neck of land between lakes George and Champlain; settled in the 17th cent., inc. 1889. At Ticonderoga and nearby Crown Point, several battles in the French and Indian Wars took place. Fort Carillon, built there by the French in 1755, was successfully defended by Montcalm against James Abercromby in 1758, but it fell to Jeffery Amherst in 1759, when it was renamed Fort Ticonderoga. It was captured (May 10, 1775) by a detachment of Green Mountain Boys under Ethan Allen and troops commanded by Benedict Arnold. In the Saratoga campaign it was abandoned (1777) without a fight by Arthur St. Clair to John Burgoyne. The British gave up the fort after the campaign but reoccupied it for a short time in 1780. The fort was restored as a museum in 1909. The headquarters of the New York State Historical Association is at Ticonderoga; the building is a reproduction of John Hancock's house and contains co llections of historical material and paintings. A ferry crosses Lake Champlain to Shoreham, Vt. The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2012, Columbia University Press. All rights reserved. See more Encyclopedia articles on: U.S. Political Geography

Understanding Depression And Anxiety, Addiction, And Dementia

The biopsychosocial model is a perspective for explaining the causes of mental problems, which collects evidence from the individual’s social, psychological and biological conditions (Toates, 2010, p19). It considers those factors as interdependent and equally important (Toates, 2010, p13). This essay will evaluate this model ability to understand depression and anxiety, addiction, and dementia, and will show that in some cases of mental problems, the biopsychosocial perspective is not the appropriate tool for explaining these problems. Firstly, this approach is crucial for understanding depression and anxiety, and the case of Neha’s depression is an example. Socially, she suffered a divorce and her parents’ death (Toates, 2010, p18).†¦show more content†¦This depression could be alleviated by drugs that reduces cortisol, which is an evidence of the biological root only. Hence, a biopsychosocial model is not useful for explaining comorbid depression. Furthermore, phobia of spiders is a case where the biopsychosocial approach to understanding anxiety is not helpful, and an example of that is Kate phobia (The Open University, 2016a). The reason is that spider phobia happens because of an environmental learning process about a frightening experience, and an evidence about this is the case study of â€Å"little Albert† (McLannahan, 2010, p107). On the other hand, snake phobia is the result of the evolutionary process of human, which is genetically inherited for protecting the survival of human; thus, it has a biological explanation only (McLannahan, 2010, p108). Also, there is evidence from twins’ studies for the genetic predisposition for specific animal phobias (Kendler, et all, 1992, cited in Mclannahan, p 109). Thus, a biopsychosocial approach did not contribute to understanding these specific phobias. Meanwhile, biopsychosocial model is important for explaining OCD. For example, John’s excessive hands washing. Psychologically, he has intrusive thought regarding his family’ safety (Toates, 2010, p1). Stress at work and family misunderstanding are his triggers (Toates, 2010, p2). Using PET scan, there is increase of activities in the prefrontal cortex and the caudate nucleus brain’sShow MoreRelatedMental Health Problems Are Still With Us1406 Words   |  6 Pagesare a problem in society today because the lack of development in pharmaceutical intervention. The essay will endeavor to give evidence on how the lack of understanding in some mental health illnesses has prevented the development in drug treatment. One such problem is seen in dementia, scientist have some understanding on what occurs in dementia but as yet have not found a cure (cited in Leys, Rostron and Heading 2011). Evidence will be given to explain that drug intervention may not always be aRead MoreThe Biopsychosocial Model and Research in Mental Health1018 Words   |  5 Pagesthe Beck Depression Inventory (BDI) (Martins-Mourao, 2010, pp. 99, 122-123). Ost et al., (2001) in McLannahan (2010, pp. 111-113) investigated the effect of exposure therapy and cognitive behavioural therapy (CBT) on claustrophobics. Data was gathered from questionnaires and physiological and behaviour tests, and showed significant improvements in symptoms after both therapies. Proudfoot et al., (2004) in McLannahan (2010, pp. 96-98) assessed a computerised CBT treatment for mild depression in anRead MoreDrug Alcohol And Alcohol Abuse Essay980 Words   |  4 Pagesproblems such as stress, anxiety or depression (Understanding Addiction, 2015). Low self-esteem or feelings of guilt or shame is another reason that drugs and alcohol become used and abused (Facts about Alcohol and Drug Abuse, 2015). Abuse isn’t automatic when one uses; it varies between individuals. Drug abuse varies more by the drug than the amount that is being used. If drug and alcohol use is causing problems in your life, drug addiction or abuse is likely (Understanding Addiction, 2015). The averageRead More##ing Suffering Through Music : An Analysis Of Sonnys Blues By James Baldwin1167 Words   |  5 PagesAn Analysis of â€Å"Sonny’s Blues† Written in 1957 by James Baldwin, â€Å"Sonny’s Blues† is a short story where music plays a dominant role in defining characters, specifically Sonny. The story has three main topics of discussion, family struggles, drug addiction and most importantly music. In the beginning Sonny’s older brother, a high school algebra teacher. He reads about him being arrested for selling heroin. He is disappointed and thinks about the future of his students. The narrator doesn’t talk toRead MoreProtection of Vulnerable People: Older Adults With Dementia2567 Words   |  10 PagesOlder Adults with Dementia Definition of Vulnerable Dementia refers to a syndrome which results in deterioration in thinking, memory, behavior, and ability to execute everyday activities and duties. Despite the fact that the syndrome is mainly associated with the older people, it is not a normal aspect or part of ageing. One of the major causes of dementia is the aspect of Alzheimers disease. This disease contributes to about 60 to 70 percent of the cases of dementia. Dementia possesses psychologicalRead MoreObesity And Its Effects On Society1455 Words   |  6 PagesObesity has been around for a decade that affects millions of people of the nation of the United States every day. According to the textbook â€Å"Understanding Psychology†, obesity is body weight that is more than 20% above the average weight for a person of a particular height (Feldman, 2012, pg. 325). This health problem not only affects adults but also a lot of children. Obesity has increased over the past decade, particularly people that are facing obesity are using inadequately devise dietsRead MoreOnline Support Group s Mission Or Purpose?1592 Words   |  7 Pagesdiscussion that covers almost every imaginable topic related to military trauma and PTSD. The purpose of this forum is to share common experience, exchange information, build network of support, and take comfort in providing and receiving sympathetic understanding among military community. It is an invaluable source of online support for members of military, veterans and their families and friends and an excellent resource guide for anybody who struggles or whose loved one struggles with symptoms of PTSDRead MoreDementia: How and Whom Does It Affect?5576 Words   |  23 PagesRunning Head: DEMENTIA: HOW AND WHOM DOES IT AFFECT? 1 Dementia: How and Whom Does it Affect? Liberty University COUNS 502 B-23LUO Instructor: Dr. Richard Pace Shelly M. Becker March 5, 2013 DEMENTIA: HOW AND WHOM DOES IT AFFECT? 2 Abstract Although dementia is often viewed as an â€Å"old person’s disorder, its effects ripple down in many directions such as family, caregivers, finances, and the healthcare systemRead MoreThe Effects Of Long Term Alcohol Use On The Brain1482 Words   |  6 Pageswhile limiting the capacity for comprehension of information and processing of memories. Reports from the National Institute of Health have shown that the deficiency of Thiamine, or vitamin B1, is commonly seen with alcoholism, and can be linked to dementia-like symptoms associated with alcoholic encephalopathy and Wernicke-Korsakoff Syndrome (U.S. Natl. Library of Medicine). Excessive alcohol consumption is responsible for disturbances in the excretory system, rendering the body unable to eliminateRead More Addiction to Drugs and Alcohol Essay examples2057 Words   |  9 Pagescan have on the body, and on the life of a person. Thousands of jobs, homes, and families are lost annually through the addictions of drugs and alcohol. Children grow up without parents, spouses are forced to raise their children as single parents, and grandparents become legal guardians for a second time, due to the effects of substance abuse and dependence. Exactly how addiction is defined and diagnosed is an on-going issue and one that will be discussed in this paper. While there are eleven different

A Veterans Day - Free Essay Example

Sample details Pages: 2 Words: 543 Downloads: 9 Date added: 2019/04/15 Category Society Essay Level High school Tags: Veterans Essay Did you like this example? At the eleventh hour of the eleventh day of the eleventh month of 1918, guns in Europe and across the world fell silent. That day, which came to be commemorated as Armistice Day and later Veterans Day, has been described as the greatest day in history. That appellation is not far off the mark. The First World War, which ended on November 11, 1918, was a turning point in history. When it began in August 1914, crowds cheered brightly uniformed troops marching off to battle. They were confident of being home before the leaves fall, or at worst by Christmas. It was not to be. Millions of soldiers collided on battlefields from Brussels to Baghdad, from Africa to Asia, in the first truly global war. While the killing power of modern weapons had been previewed in the American Civil War, no one was prepared for the slaughter that would occur at the Somme and on the eastern front. And no one had the means to end a conflict that had rapidly spun out of the control of national governments. Don’t waste time! Our writers will create an original "A Veterans Day" essay for you Create order One can say that the history of the 20th century was a playing out of the First World War. It led to the collapse of the Russian monarchy and the rise of communism. Germany, which believed that it had signed a cease-fire rather than a surrender, moved from imperial rule to a short-lived democracy to the horrors of National Socialism. The Second World War took destruction to a new level involving massive bombing and, ultimately, to the first use of atomic weapons. Nor did problems stop there. On March 5, 1946, Winston Churchill observed that an iron curtain has descended across [Europe]. The world was in a new type of conflict, a cold war in which two ideologies, one focused on freedom and the other on state control, battled across the globe via diplomacy, economics, and on more than one occasion, military warfare. Nuclear weapons added a new dimension. For the first time in history, humankind had created a weapon so powerful that it deterred large-scale conflict. The seemingly exponential rise in battlefield deaths halted overnight. Neither side could be assured of victory. Indeed, each side knew that any rash act would result in the destruction of all that it held dear. There was risk in this nuclear standoff, but there was also the opportunity for political and economic forces to play out over decades. At the end of the Cold War, there was a naive thought that the cycle of conflict was at last broken. The world could live in peace, democracy and freedom would spread around the globe, and humanity would enter a new era. It was not to be. We now recognize that the world is a dangerous place and will likely remain so. We have learned much in the past century. On this day, I ask that each of you take a moment to remember those who gave their lives for our freedom. Thank a member of our armed forces for the role that he or she plays every day in our defense and our security. And remember that day, 100 years ago, when humanity, exhausted and shocked by four years of death and destruction, looked deep into its soul in hopes of finding a better way.

Security Free Essays

string(726) " g p y MESSAGE SPACE \(ALL POSSIBLE PLAINTEXT MESSAGES\) TRANSFER \$5000 TO MY SAVINGS ACCOUNT† Cryptography MESSAGE SPACE \( \(ALL POSSIBLE PLAINTEXT MESSAGES\) â€Å"TRANSFER TRANSFER \$5000 TO MY SAVINGS ACCOUNT† ENCRYPTION IS SECURE IF ONLY AUTHORIZED PEOPLE KNOW HOW TO REVERSE IT CODE SPACE \(ALL POSSIBLE ENCRYPTED MESSAGES\) CODE SPACE \(ALL POSSIBLE ENCRYPTED MESSAGES\) †¢ †¢ †¢ †¢ †¢ MUST BE REVERSIBLE \(BUT ONLY IF YOU KNOW THE SECRET\) †¢ †¢ †¢ †¢ †¢ â€Å"1822UX S4HHG7 803TG 0J71D2 MK8A36 18PN1† †¢ †¢ †¢ †¢ †¢ ENCRYPTION IS ONE-TO-ONE AND REVERSIBLE EVERY CODE CORRESPONDS TO EXACTLY ONE MESSAGE †¢ †¢ †¢ †¢ †¢ â€Å"1822UX S4HHG7 803TG 0J71D2 MK8A36 18PN1† FEB/MAR 2012  © 2012 MICHAEL I\." ePayment Security ECOM 6016 Electronic Payment Systems †¢ Keep financial data secret from unauthorized parties (privacy) – CRYPTOGRAPHY Lecture 3 ePayment Security †¢ Verify that messages have not been altered in transit (integrity) – HASH FUNCTIONS †¢ Prove that a party engaged in a transaction ( (nonrepudiation) ) – DIGITAL SIGNATURES †¢ Verify identity of users (authentication) – PASSWORDS, DIGITAL CERTIFICATES THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS Cryptography and Hash Functions yp g p y Message digest (hash) algorithms – Secure Hash Algorithm: SHA-1, SHA-2, SHA-3 competition – Securing passwords Hash Functions †¢ A â€Å"hash† is a short function of a message, f ti f sometimes called a â€Å"message digest† g g †¢ BUT: a hash is not uniquely reversible †¢ Many messages have the same hash Has h  function  H produces  a  fixed  size  hash of  a  message  M,  usually  128? 512  bits h = H(M) †¢ S Symmetric encryption ti ti – DES and variations – AES: Rijndael †¢ Public-key algorithms – RSA †¢ Defending against attacks – Salting, nonces g †¢ Digital signatures THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. We will write a custom essay sample on Security or any similar topic only for you Order Now SHAMOS THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS One-Way Hash Functions †¢ For any string s, H(s), the hash of s, is of fixed length (shorter than ) ( h t th s) †¢ Hashes should be easy to compute †¢ A â€Å"one-way† has is computationally difficult to invert: can’t find any message corresponding to a given hash This  is  a  message  M   This is a message M that  we  want  to  make   unalterable  so  it   cannot  be  forged  or   modified. One-Way Hash Functions †¢ There are plenty of hash functions but no obvious one-way h h f hash functions ti †¢ Good one-way hashes have the diffusion property: Altering any it of the message changes many bits of the hash †¢ This prevents trying similar messages to see if they hash to the same thing We ll non reversibility †¢ We’ll see how non-reversibility provides security h = H(M) H 52f21cf7c7034a20 17a21e17e061a863 This is the has h of message M M: THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS Uses of One Way Hash Functions One-Way †¢ †¢ †¢ †¢ Password verification Message authentication (message digests) Prevention of replay attack Digital signatures Key-Hashed Message Authentication Codes (HMACs) Shared Key Original Plaintext Hashing with MD5, SHA, etc. HMAC Key-Hashed Message Authentication Code (HMAC) Appended to Plaintext Before Transmission HMAC Original Plaintext Note: No encryption; only hashing THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS Key-Hashed Message Authentication Codes (HMACs) Receiver Repeats the HMAC Computation On the Received Plaintext Shared Key Received Original Plaintext Nonce to Prevent Replay Attack p y Replay attack: repeating the messages in a challenge-response protocol (lik username/ h ll t l (like / password) to gain access to a system †¢ Defense: make the messages different EVERY TIME the protocol is used. †¢ But how? The username and password don’t change don t †¢ Answer: use a random number, called a â€Å"nonce† each time. Require the user to include the nonce in his response †¢ NOTE: Nonce is an obsolete word: â€Å"for the nonce† means â€Å"for the time being,† â€Å"just for now† THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS Hashing with same algorithm ith Computed HMAC ? COMPARE ? Received HMAC If computed and received HMACs are the same, The sender must know the key and so is authenticated AND the message has not been altered THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS Password Verification System sends nonce to user: Secure Hash Algorithm SHA-512 †¢ US Federal Information Processing Standard, but used around the world †¢ Uses exclusive-OR operation ? A= 0011011110001 B= 1101001101011 A? B= 1110010011010 nonce = 992883774 System looks up password pp Password store Iam#4VKU User concatenates nonce to password: Iam#4VKU 992883774 ||nonce p||nonce Iam#4VKU 992883774 H H(p||nonce) 779dsfe55d2884e0ea5 e3a011fa3211b Allow Login Yes Deny Login No Exact Match? H H(p||nonce) 779dsfe55d2884e0ea5 e3a011fa3211b †¢ Exclusive-OR is lossy; knowing A ? B does not reveal even one bit of either A or B †¢ Regular OR: If a bit of A ? B is zero, then both corresponding bits of both A and B were zero User sends H(p||nonce) ove r network THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS Information Hiding with Exclusive-OR †¢ x ? y = 1 if either x or y is 1 but not both: y x? y 0 0 1 1 1 0 Secure Hash Algorithm SHA-512 g 0 1 †¢ If x ? y = 1 we can’t tell which one is a 1 †¢ Can’t trace backwards to determine values Can t †¢ If x ? y = 1 then BOTH x and y are 1 THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS Secure Hash Algorithm Flow LONG MESSAGE TO BE HASHED SHA-512 Block Function TAKE FIRST 32 WORDS (1024 BITS) REPEAT FOR EACH 1024-BIT BLOCK STARTING HASH EIGHT 64-BIT 64 BIT WORDS (512 BITS) EXPAND TO 80 WORDS (2560 BITS) REPEAT 79 MORE TIMES †¦ FINAL HASH (512 BITS) 111011 010101 110100 010011 011101 001011 010001 001011 11001 110101 000100 110001 011101 101011 110001 111011 Ch(e,f,g)  =  (e  AND  f)  XOR  (NOT  e  AND  g) Maj(a,b,c)  =  (a  AND  b)  XOR  (a  AND  c)  XOR  (b  AND  c) ? (a)  =  ROTR(a,28)  XOR  ROTR(a,34)  XOR  ROTR(a,39) ? (e)  =  ROTR(e,14)  XOR  ROTR(e,18)  XOR  ROTR(e,41) +  =  addition  modulo  2^64 Kt  Ã‚  =  a  64? bit  additive  constant  for  round  t Wt  =  a  64? bit  word  derived  from  the  Ã‚   current  512? bit  input  block  for  round  t THE UNIVERSITY OF HONG KONG FEB/MAR 2011  © 2011 MICHAEL I. SHAMOS THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS History of SHA We’re now on the third generation of SHA: SHA-0 (1993-1995) (weakness f SHA 0 (1993 1995) ( k found early) d l ) SHA-1 (1995-2005) SHA-2 (2005 – ) †¢ SHA-512 is part of SHA-2 †¢ SHA 1 is weak but not yet fully cracked, still the most SHA-1 cracked widely used hash algorithm SHA-3 †¢ RIGHT NOW there is a competition for SHA 3 – Began in 2007 – There are five f inalists: BLAKE, Grostl, JH, Keccak, Skien – Winner to be announced in 2012 Hashing  V. S. Encryption Hashing V. S. Encryption Hello,  world. A  sample  sentence  to   show  encryption. k E NhbXBsZSBzZW50ZW5jZS B0byBzaG93IEVuY3J5cHR pb24KsZSBzZ k D Hello,  world. A  sample  sentence  to   show  encryption. ? NhbXBsZSBzZW50ZW5jZS B0byBzaG93IEVuY3J5cHR p pb24KsZSBzZ Encryption  is  two  way,  and  requires  a  key  to  encrypt/decrypt This  is  a  clear  text  you   can  easily  read   g y without  using  the  key. The  sentence  is  longer   than  the  text  above. h 52f21cf7c7034a20 7a e 7e06 a863 17a21e17e061a863 – Hashing is one way There is no ‘de hashing’ Hashing  is  one? way. There  is  no   de? hashing THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS Cryptography yp g p y MESSAGE SPACE (ALL POSSIBLE PLAINTEXT MESSAGES) TRANSFER $5000 TO MY SAVINGS ACCOUNT† Cryptography MESSAGE SPACE ( (ALL POSSIBLE PLAINTEXT MESSAGES) â€Å"TRANSFER TRANSFER $5000 TO MY SAVINGS ACCOUNT† ENCRYPTION IS SECURE IF ONLY AUTHORIZED PEOPLE KNOW HOW TO REVERSE IT CODE SPACE (ALL POSSIBLE ENCRYPTED MESSAGES) CODE SPAC E (ALL POSSIBLE ENCRYPTED MESSAGES) †¢ †¢ †¢ †¢ †¢ MUST BE REVERSIBLE (BUT ONLY IF YOU KNOW THE SECRET) †¢ †¢ †¢ †¢ †¢ â€Å"1822UX S4HHG7 803TG 0J71D2 MK8A36 18PN1† †¢ †¢ †¢ †¢ †¢ ENCRYPTION IS ONE-TO-ONE AND REVERSIBLE EVERY CODE CORRESPONDS TO EXACTLY ONE MESSAGE †¢ †¢ †¢ †¢ †¢ â€Å"1822UX S4HHG7 803TG 0J71D2 MK8A36 18PN1† FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS THE UNIVERSITY OF HONG KONG The Encryption Process MATERIAL WE WANT TO KEEP SECRET Role of the Key in Cryptography †¢ The key is a parameter to an encryption procedure †¢ Procedure stays the same, but produces different results based on a given key S P E C I A L T Y B D F G H J K M N O Q R U V W X Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z C O N S U L T I N G EXAMPLE: OBJECT: HIDE A MESSAGE (PLAINTEXT) BY MAKING IT UNREADABLE (CIPHERTEXT) UNREADABLE VERSION OF PLAINTEXT MIGHT BE: TEXT DATA GRAPHICS AUDIO VIDEO SPREADSHEET †¦ MATHEMATICAL SCRAMBLING PROCEDURE DATA TO THE ENCRYPTION ALGORITHM (TELLS HOW TO SCRAMBLE THIS PARTICULAR MESSAGE) D S R A V G H E R M SOURCE: STEIN, WEB SECURITY FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS NOTE: THIS METHOD IS NOT USED IN ANY REAL CRYPTOGRAPHY SYSTEM. IT IS AN EXAMPLE INTENDED ONLY TO ILLUSTRATE THE USE OF KEYS. THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS THE UNIVERSITY OF HONG KONG Symmetric Encryption SAME KEY USED FOR BOTH ENCRYPTION AND DECRYPTION Advanced Encryption Standard (AES) Based on a method called Rijndael, invented by j , y Vincent Rijmen and Joan Daeman (both male), who won a cryptography competition †¢ Replaced Data Encryption Standard (DES) in 2001, but DES is still widely used †¢ Symmetric block cipher with block length 128 bits, key lengths 128/192/256 bits †¢ V Very fast: PC implementations at 3GB per second f t i l t ti t d SENDER AND RECIPIENT MUST BOTH KNOW THE KEY THIS IS A WEAKNESS SOURCE: STEIN, WEB SECURITY THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS AES Overview Input message: 4Ãâ€"4 matrix Transformations in Each AES Round Symmetric key Output from Round n-1 SubByte: substitutes bytes of the 4 x 4 matrix ShiftRows: shifts rows of the 4 x 4 matrix MixColumn: replace bytes in each column by different functions of the whole column AddRoundKey: XOR round key with the 4 x 4 matrix 128-bit blocks Round n: Number of rounds based on key length 128-bit, 10 rounds 192 bit, 192-bit, 12 rounds 256-bit, 14 rounds SubByte ShiftRows MixColumn Round key Each round key is different, obtained from full symmetric key AddRoundKey Encrypted output: Input to Round n+1 R d 1 THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS SubByte Input: ea 04 65 85 83 45 5d 96 5c 33 98 b0 f0 2d as c5 16 x 16 matrix specifies byte substitutions: ShiftRows Input: Output: 87 f2 4d 97 87 f2 4d 97 Output: 87 f2 4d 97 ec 6e 4c 90 4a c3 46 e7 8c d8 95 a6 S-Box 6e 4c 90 ec 46 e7 4a c3 a6 8c d8 95 ec 6e 4c 90 4a c3 46 e7 8c d8 95 a6 SOURCE: WILLIAM STALLINGS THE UNIVERSITY OF HONG KONG SOURCE: WILLIAM STALLINGS FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS MixColumn Add Round Key Final output for this round: Input: 87 f2 4d 97 Output: 47 40 a3 4c 37 d4 70 9f 94 e4 3a 42 ed a5 a6 bc SOURCE: WILLIAM STALLINGS SOURCE: WILLIAM STALLINGS 6e 4c 90 ec 46 e7 4a c3 a6 8c d8 95 The 4 x 4 matrix is XORed with the round key THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS AES Round Summary Input bytes: A Rijndael Animation by Enrique Zabala Transformations: Output bytes: O b ANIMATION SOURCE: WILLIAM STALLINGS 32 Cipher Block Chaining Example †¢ †¢ DES is an older, less secure symmetric encryption algorithm; uses 56-bit keys 56 bit In ECB mode, the same input text always produces the same output. This creates risk of partial decryption. PLAINTEXT BLOCK 1 PLAINTEXT BLOCK 2 Triple DES †¢ †¢ Security can be increased by encrypting multiple times with different keys Double D bl DES i not much more secure th single DES b is t h than i l because of a â€Å"meet-in-the-middle† attack K1 K2 K3 INITIALIZATION STRING ? DES ? DES etc. PLAINTEXT BLOCK 1 DES ENCRYPT DES DECRYPT DES ENCRYPT CIPHERTEXT BLOCK 1 CIPHERTEXT BLOCK 1 CIPHERTEXT BLOCK 2 †¢ †¢ †¢ This method is called 3DES-IK, for â€Å"independent keys† q g y Equivalent to a single 112-bit key If K1 = K2 = K3 this is just single DES THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS Public Key Public-Key (Asymmetric) Encryption 2. SENDERS USE SITE’S PUBLIC KEY FOR ENCRYPTION 3. SITE USES ITS PRIVATE KEY FOR DECRYPTION Public-Key Encryption y yp 2. Bob looks up Alice’s public key 5. Alice uses her PRIVATE KEY to decrypt M 1. Bob wants to send M to Alice M 1. 1 USERS WANT TO SEND PLAINTEXT TO RECIPIENT WEBSITE 4. ONLY WEBSITE CAN DECRYPT THE CIPHERTEXT. NO ONE ELSE KNOWS HOW 4. Bob transmits the encrypted message in the clear M SOURCE: STEIN, WEB SECURITY STEIN THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS 3. Bob uses Alice’s public key to encrypt M SOURCE: CHIN-TSER HUANG 6. Alice now has M. No one else does 09/13/2011 36 Public-Key Encryption †¢ †¢ †¢ †¢ When Alice gets M no one else could have read it M, No one else has Alice’s PRIVATE key Problem: she can’t be sure Bob sent it can t Anyone with Alice’s PUBLIC key could have sent it Public Key Public-Key Authentication 2. Bob encrypts M with his PRIVATE key 4. Alice looks up B b’ Bob’s public key 1. Bob wants to send M to Alice so she is sure Bob sent it . Alice decrypts M with Bob’s PUBLIC key M 3. Bob sends the encrypted message to Alice M THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS Public-Key Authentication †¢ When Alice gets M she is sure it came from Bob M, â₠¬ ¢ No one but Bob has Bob’s PRIVATE key †¢ Problem: anyone can read M – all that is needed is Bob’s PRIVATE key †¢ Is there some way to achieve security AND authentication at the same time? Secure Authenticated Messages Use two public-private key pairs – one for Bob, one for Alice M M Alice’s Public Key PUA Alice’s Private Key PRA Bob’s Private Key PRB Bob’s Public Key PUB Keys in key pairs are mathematically linked THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS One-Way Trapdoor Functions †¢ A function that is easy to compute †¦ †¢ But computationally difficult to invert without knowing the secret (the â€Å"trapdoor†) trapdoor ) †¢ Example: f (x, y) = x†¢y †¢ Given f (x y), it is difficult to find either x or y (x, y) †¢ Given f (x, y) and x (the secret), it is easy to find y †¢ Any one way trapdoor function can be used in public one-way publickey cryptography. Rivest-Shamir-Adelman Rivest Shamir Adelman (RSA) †¢ It is easy to multiply two numbers but apparently hard y py pp y to factor a number into a product of two others. y †¢ Given p, q, it is easy to compute n = p †¢ q †¢ Example: p = 5453089; q = 3918067 †¢ Easy to find n = 21365568058963 y †¢ Given n, it is hard to find two numbers p, q with p †¢ q = n †¢ Now suppose n = 7859112349338149 What are p and q such that p †¢ q = n ? †¢ Multiplication is a one-way function †¢ RSA exploits this fact in public-key encryption THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS Rivest-Shamir-Adelman (RSA) †¢ Each user generates a public/private key pair: †¢ Select two large primes at random: p q (1024 bits) p, †¢ Compute their product n = p †¢ q – note: ? (n) = number of divisors of n = (p-1)(q-1) †¢ Select a small odd number e that does not divide ? (n) †¢ Find the multiplicative inverse of e, that is, a number ( ? ( )) such that e †¢ d = 1 (mod ? (n)) †¢ Public encryption key is the pair (e. n) †¢ Private decryption key is the pair (d, n) †¢ Knowing (e, n) is of no help in finding d. Still need p q g and q, which involves factoring n, which is difficult THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS RSA Encryption †¢ The message M is an integer †¢ To encrypt message M using key (e, n): †¢ Compute C(M) = M e (mod n) p ( ) ( ) †¢ To decrypt message C using key (d, n): †¢ Compute P(C) = C d (mod n) †¢ N t th t P(C(M)) = C(P(M)) = (M e)d ( d n) Note that (mod ) e†¢d = M (mod n) = M Because e †¢ d = 1 ( (mod n) ) †¢ DEMO THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS RSA Example = 61; q = 53 n = pq = 3233 (modulus, can be given to others) e = 17 (public exponent, can be given to others) d = 2753 (private exponent kept secret! ) exponent, PUBLIC KEY = (3233, 17) PRIVATE KEY = (3233, 2753) To encrypt 123, compute 12317 (mod 3233) = 337587917446653715596592958817679803 mod 3233 = 855 37 digits INVERSE OF 5 IS 3 MULTIPLICATION MOD 7 Multiplicative Inverses p Over Finite Fields †¢ †¢ †¢ 1 1 The i Th inverse e-1 of a number e satisfies e-1 †¢ e = 1 f b ti fi The inverse of 5 is 1/5 If we only allow numbers from 0 to n-1 (mod n), then for special n1 n) values of n, each e has a unique inverse 0 1 2 3 4 5 6 0 0 0 0 0 0 0 1 0 1 2 3 4 5 6 2 0 2 4 6 1 3 5 3 0 3 6 2 5 1 4 4 0 4 1 5 2 6 3 5 0 5 3 1 6 4 2 6 0 6 5 4 3 2 1 6 †¢ 2 = 12 WHEN DIVIDED BY 7 GIVES REMAINDER 5 To decrypt 855 compute 8552753 (mod 3233) = 123 855, (intermediate value has 8072 digits) SOURCE: FRANCIS LITTERIO THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS EACH ROW EXCEPT THE ZERO ROW HAS EXACTLY ONE 1 EACH ELEMENT HAS A UNIQUE INVERSE THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS Trapdoor Functions for Cryptography ANY one-way trapdoor function f(x) can be used for y p ( ) public-key cryptography †¢ Alice wants to send message m to Bob †¢ Bob’s public key e is a parameter to the trapdoor function fe(x) (the inverse fe -1(x) is easy to compute knowing B b’ private k d b t diffi lt without d) k i Bob’s i t key but difficult ith t †¢ Alice computes fe(m), sends it to Bob 1 †¢ Bob computes fe -1(fe(m)) = m (easy if d is known) †¢ Eavesdropper Eve can’t compute m = fe -1(fe(m)) 1 without th t d ith t the trapdoor d t find th i to fi d the inverse fe -1 Discrete Logarithms If ab = c, we say that logac = b y g †¢ Example: 232 = 4294927296 so log2(4294927296) = 32 p g g y †¢ Computing ab and logac are both easy for real numbers †¢ In a finite field, it is easy to calculate c = ab mod p but given c, a and p it i very diffi lt t find b i d is difficult to fi d †¢ This is the â€Å"discrete logarithm† problem †¢ Analogy: Given x it is easy to find two real numbers y, z such that x = y †¢ z †¢ Given an integer n it is hard to find two integers p, q such that n = p †¢ q THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MIC HAEL I. SHAMOS THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS Diffie-Hellman Key Exchange y g †¢ Object: allow Alice and Bob to exchange a secret key †¢ Protocol has two public parameters: a prime p and a number g ; p such that given 0 ; n ; p there is some k such that gk = n (g is called a generator) g ) †¢ Alice and Bob generate random private values a, b between 1 and p-2 †¢ Alice’s public value is ga (mod p); Bob’s is gb (mod p) †¢ Alice and Bob share their public values †¢ Alice computes (gb)a (mod p) = gba (mod p) †¢ Bob computes (ga)b (mod p) = gab = gba (mod p) †¢ Let key = gab. Now both Alice and Bob have it. †¢ No one else can compute it – they don’t know a or b THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS Security Attacks y †¢ A LOT of money is protected by cryptography †¢ H k Hackers are constantly t i to defeat it t tl trying t d f t – – – – – Brute force (try all keys) Mathematical attack (find weaknesses in the algorithm) Social engineering (get people to reveal their key) Man-in-the-middle (intercept communications) Side channel attacks THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS Side Channel Attacks †¢ â€Å"Side channel†: any observable information emitted by the physical implementation of the cryptosystem †¢ Timing (see when certain operations performed) †¢ C h contents ( Cache t t (see which memory l hi h locations are ti accessed) †¢ Electromagnetic radiation (monitor RF emissions) †¢ Power consumption (trace the power used by a chip) †¢ Physical chip structure (for hard wired keys) hard-wired Cache Observation †¢ AES uses large tables (4 x 1024 bytes) for efficiency †¢ One encryption accesses only a small portion of the tables, which is a function of the data and the encryption key THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS Power Consumption p †¢ Some bit operations consume more electric power than others Major Ideas j Secure hash algorithms create message digests †¢ E Encryption algorithms are complex ti l ith l – must be studied carefully (by cryptographers) – subject to sophisticated attacks bj t t hi ti t d tt k †¢ Symmetric encryption is fast †¢ AES is the new standard symmetric encryption algorithm †¢ Nonces defend against replay attacks †¢ RSA is the principal public-key encryption algorithm Public key †¢ Public-key encryption is slow because of the need to work with huge numbers (~2000 bits) THE UNIVERSITY OF HON G KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS SOURCE: BERTONI ET AL. THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS El Gamal Encryption †¢ Based on the discrete logarithm g †¢ Bob’s public key is (p, q, r) †¢ Bob’s private key is s such that r = qs mod p THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS †¢ Alice sends Bob the message m by picking a random secret number k and sending (a, (a b) = (qk mod p mrk mod p) p, †¢ Bob computes b (as )-1 mod p = mrk (qks)-1 = mqks (qks)-1 = m †¢ (Bob knows s; nobody else can do this) THE UNIVERSITY OF HONG KONG FEB/MAR 2012  © 2012 MICHAEL I. SHAMOS How to cite Security, Papers

Define and Discuss the Ideas of Global Orientation free essay sample

Market share leadership C) Price D) Product quality leadership E) The target market Answer: C Diff: 1Page Ref: 290 Skill: Concept Objective: 10-1 4) Consumer perceptions of the products value set the ________ for prices. A) demand curve B) floor C) ceiling D) variable cost E) image Answer: C Diff: 2Page Ref: 291 Skill: Concept Objective: 10-2 5) Product costs set a(n) ________ to a products price. A) demand curve B) floor C) ceiling D) break-even cost E) experience curve Answer: B Diff: 2Page Ref: 291 Skill: Concept Objective: 10-2 6) Which of the following is a customer-oriented approach to pricing? A) value-based pricing B) sealed-bid pricing C) break-even pricing D) target profit pricing E) C and D Answer: A Diff: 2Page Ref: 291 Skill: Concept Objective: 10-2 7) ________ uses buyers perceptions of what a product is worth, not the sellers cost, as the key to pricing. A) Value-based pricing B) Value-added pricing C) Variable cost D) Price elasticity E) Product image Answer: A Diff: 2Page Ref: 291 Skill: Concept Objective: 10-2 8) In ________, price is considered along with the other marketing mix variables before the marketing program is set. A) value-based pricing B) cost-based pricing C) variable costs D) price elasticity E) building the marketing mix Answer: A Diff: 2Page Ref: 291 Skill: Concept Objective: 10-2 9) Value-based pricing is the reverse process of ________. A) variable cost pricing B) cost-plus pricing C) cost-based pricing D) good-value pricing E) value-added pricing Answer: C Diff: 2Page Ref: 291 Skill: Concept Objective: 10-2 10) With ________, price is set to match consumers perceptions of product value. A) variable cost pricing B) cost-plus pricing C) cost-based pricing D) value-based pricing E) every day low pricing Answer: D Diff: 2Page Ref: 291 Skill: Concept Objective: 10-2 11) Measuring ________ can be difficult. A company might conduct surveys or experiments to test this in the different products they offer. A) price elasticity B) the demand curve C) perceived value D) break-even pricing E) quantity supplied Answer: C Diff: 3Page Ref: 292 AACSB: Communication Skill: Concept Objective: 10-2 12) Underpriced products sell very well, but they produce less revenue than they would have if price were raised to the ________ level. A) perceived B) value-based C) variable D) demand curve E) price-floor Answer: A Diff: 2Page Ref: 292 Skill: Concept Objective: 10-2 3) If a seller charges ________ than the buyers perceived value, the companys sales will ________. A) more; benefit B) more; suffer C) less; increase D) less; suffer E) none of the above Answer: B Diff: 2Page Ref: 292 Skill: Concept Objective: 10-2 14) Some companies have adopted a ________ strategy, offering just the right combination of quality and good service at a fair price. A) val ue-based pricing B) good-value pricing C) cost-plus pricing D) low-price image E) none of the above Answer: B Diff: 1Page Ref: 293 Skill: Concept Objective: 10-2 15) Wal-Mart is famous for using what important type of value pricing? A) competition-based pricing B) everyday low pricing C) cost-plus pricing D) break-even pricing E) penetration pricing Answer: B Diff: 2Page Ref: 293 Skill: Concept Objective: 10-2 16) ________ involves charging a constant, everyday low price with few or no temporary price discounts. A) High-low pricing B) Target pricing C) Cost-plus pricing D) EDLP E) Penetration pricing Answer: D Diff: 2Page Ref: 293 Skill: Concept Objective: 10-2 17) ________ involves attaching features and services to differentiate a companys offers and to support charging higher prices.. A) Break-even pricing B) Target pricing C) Value-added pricing D) Cost-plus pricing E) Pricing-down Answer: C Diff: 1Page Ref: 293 Skill: Concept Objective: 10-2 18) ________ is a companys power to escape price competition and to justify higher prices and margins. A) Variable cost B) Pricing power C) Target cost D) Fixed cost E) Unit cost Answer: B Diff: 2Page Ref: 293 Skill: Concept Objective: 10-2 19) To maintain and increase a companys ________, a firm must retain or build the value of its marketing offer. A) variable cost B) pricing power C) target cost D) fixed cost E) image Answer: B Diff: 3Page Ref: 293 Skill: Concept Objective: 10-2 0) When there is price competition, many companies adopt ________ rather than cutting prices to match competitors. A) pricing power B) value-added strategies C) fixed costs D) price elasticity E) image pricing Answer: B Diff: 2Page Ref: 293 Skill: Concept Objective: 10-2 21) Ryanair offers free flights to a quarter of its customers and rock-bottom prices to many of its other customers. Ryanair then charges for all extra services, such as baggage handling and in-flight refreshments. Which of the following best describes Ryanairs pricing method? A) value-added pricing B) low-cost pricing C) cost-plus pricing D) high-low pricing E) image pricing Answer: B Diff: 2Page Ref: 295 Skill: Concept Objective: 10-2 22) ________ pricing involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for the companys efforts and risks. A) Value-based B) Fixed cost C) Cost-based D) Variable E) Skimming Answer: C Diff: 1Page Ref: 295 Skill: Concept Objective: 10-3 23) Fixed costs ________ as the number of units produced increases. A) decrease B) increase C) divide in half D) remain the same E) increase at a diminishing rate Answer: D Diff: 2Page Ref: 295 Skill: Concept Objective: 10-3 24) Costs that do not vary with production or sales level are referred to as ________. A) fixed costs B) variable costs C) target costs D) total costs E) unit costs Answer: A Diff: 1Page Ref: 295 Skill: Concept Objective: 10-3 25) Rent, electricity and executive salaries are examples of ________. A) fixed costs B) variable costs C) accumulated costs D) total costs E) marketing costs Answer: A Diff: 2Page Ref: 295 Skill: Concept Objective: 10-3 26) Costs that vary directly with the level of production are referred to as ________. A) fixed costs B) variable costs C) target costs D) total costs E) unit costs Answer: B Diff: 1Page Ref: 296 Skill: Concept Objective: 10-3 27) ________ are the sum of the ________ and ________ for any given level of production. A) Fixed costs; variable; total costs B) Fixed costs; total; variable costs C) Variable costs; fixed; total costs D) Total costs; fixed; variable costs E) Break-even costs; fixed; total costs Answer: D Diff: 2Page Ref: 296 Skill: Concept Objective: 10-3 28) SRAC is the acronym for which concept related to costs at different levels of production? A) strategic reasoning and costs B) short-run accounting costs C) short-run average cost D) strategic rights and company E) strategic revenues and costs Answer: C Diff: 2Page Ref: 296 Skill: Concept Objective: 10-3 29) As production workers become better organized and more familiar with equipment, the average cost per unit decreases. This is called the ________. A) demand curve B) experience curve C) short-run average cost curve D) long-run average cost curve E) marginal utility Answer: B Diff: 1Page Ref: 296 Skill: Concept Objective: 10-3 30) With a higher volume of product, most companies can expect to ________. A) gain economies of scale B) become less efficient C) see average costs increase D) have a straight, horizontal learning curve E) find competitors using the experience curve strategically Answer: A Diff: 2Page Ref: 296 Skill: Concept Objective: 10-3 31) The experience curve reveals that ________. A) repetition in production lowers costs B) repetition in production enhances efficiency C) the average cost drops with accumulated production experience D) A, B, and C E) none of the above Answer: D Diff: 3Page Ref: 296 Skill: Concept Objective: 10-3 32) When a downward-sloping experience curve exists, a company should usually ________ the selling price of that product in order to bring in higher revenues. A) increase B) greatly increase C) decrease D) not alter E) none of the above Answer: C Diff: 3Page Ref: 297 Skill: Concept Objective: 10-3 33) Which of the following is a risk a company takes when building a strategy around the experience curve? A) Competitors will likely not be able to meet the companys price cuts. B) Existing technologies are likely to become more expensive as the company expands. C) The method does not take competitors prices into account. D) The method may cause consumers to become frustrated with changing prices. E) Aggressive pricing may give the product a cheap image, causing customers to lose interest. Answer: E Diff: 2Page Ref: 297 Skill: Concept Objective: 10-3 34) A company building its pricing strategy around the experience curve would be likely to ________. A) price its products low B) price its products high C) engage in break-even pricing D) all of the above E) none of the above Answer: A Diff: 3Page Ref: 297 Skill: Concept Objective: 10-3 35) The company designs what it considers to be a good product, totals the expenses of making the product, and sets a price that adds a standard mark-up to the cost of the product. This approach to pricing is called ________. A) value-based pricing B) fixed cost pricing C) cost-plus pricing D) variable pricing E) skimming pricing Answer: C Diff: 1Page Ref: 297 Skill: Concept Objective: 10-3 36) Lawyers, accountants, and other professionals typically price by adding a standard markup for profit. This is known as ________. A) variable costs B) cost-plus pricing C) value-based pricing D) break-even price E) penetration pricing Answer: B Diff: 2Page Ref: 297 Skill: Concept Objective: 10-3 37) The simplest pricing method is ________. A) value-based pricing B) going-rate and sealed-bid pricing C) cost-plus pricing D) break-even analysis E) target profit pricing Answer: C Diff: 2Page Ref: 297 Skill: Concept Objective: 10-3 38) Which of the following is a reason why markup pricing is NOT practical? A) Sellers earn a fair return on their investment. B) By tying the price to cost, sellers simplify pricing. C) When all firms in the industry use this pricing method, prices tend to be similar. D) This method ignores demand. E) With a standard markup, consumers know when they are being overcharged. Answer: D Diff: 3Page Ref: 298 Skill: Concept Objective: 10-3 39) One reason ________ remains popular is that sellers are more certain about costs than about demand. A) markup pricing B) variable pricing C) inelasticity pricing D) elasticity pricing E) penetration pricing Answer: A Diff: 2Page Ref: 298 Skill: Concept Objective: 10-3 40) Price competition is minimized when all firms in an industry use which pricing method? A) variable pricing B) markup pricing C) elasticity pricing D) value-added pricing E) value-based pricing Answer: B Diff: 3Page Ref: 298 Skill: Concept Objective: 10-3 41) Many people feel that ________ pricing is fairer to both buyers and sellers. Sellers earn a fair return on their investment but do not take advantage of buyers when buyers demand becomes great. A) variable B) markup C) elasticity D) inelasticity E) penetration Answer: B Diff: 2Page Ref: 298 AACSB: Ethical Reasoning Skill: Concept Objective: 10-3 42) Which of the following is a cost-based approach to pricing? A) value-based pricing B) going-rate pricing C) target profit pricing D) good value pricing E) A and C Answer: C Diff: 2Page Ref: 298 Skill: Concept Objective: 10-3 43) Break-even pricing, or a variation called ________, is when the firm tries to determine the price at which it will break even or make the profit it is seeking. A) competition-based pricing B) target profit pricing C) fixed cost pricing D) value-based pricing E) customer-based pricing Answer: B Diff: 1Page Ref: 298 Skill: Concept Objective: 10-3 44) Target profit pricing uses the concept of a ________, which shows the total cost and total revenue expected at different sales volume levels. A) value-based chart B) break-even chart C) competition-based chart D) demand-curve E) unit cost Answer: B Diff: 2Page Ref: 298 Skill: Concept Objective: 10-3 45) The break-even volume is the point at which ________. A) the total revenue and total costs lines intersect B) demand equals supply C) the production of one more unit will not increase profit D) the company can pay all of its long-term debt E) a firms profit goal is reached Answer: A Diff: 3Page Ref: 298 Skill: Concept Objective: 10-3 46) ________ pricing works only if that price actually brings in the expected level of sales. A) Elasticity B) Markup C) Variable D) Inelasticity E) Target profit Answer: E Diff: 3Page Ref: 298 Skill: Concept Objective: 10-3 47) Which of the following statements about break-even analysis is true? A) It is used to determine how much production experience a company must have to achieve desired efficiencies. B) It is a technique used to calculate fixed costs. C) It determines the amount of retained earnings a company will have during an accounting period. D) It is a technique marketers use to examine the relationship between supply and demand. E) It is calculated using variable costs, the unit price, and fixed costs. Answer: E Diff: 3Page Ref: 298 Skill: Concept Objective: 10-3 48) As a manufacturer increases price, the ________ drops. A) target B) break-even volume C) cost-plus pricing D) total cost E) sales Answer: B Diff: 3Page Ref: 299 Skill: Concept Objective: 10-3 49) Which of the following is an external factor that affects pricing decisions? A) the salaries of production management B) competition C) the salaries of finance management D) funds expensed to clean production equipment E) A, B, and C Answer: B Diff: 1Page Ref: 299 Skill: Concept Objective: 10-4 50) ________ that influence pricing decisions include the nature of the market and demand and competitors prices. A) Internal factors B) Elasticity factors C) External factors D) Target factors E) Domestic factors Answer: C Diff: 2Page Ref: 299 Skill: Concept Objective: 10-4 51) Companies may set prices low for which of the following reasons EXCEPT ________. A) to prevent competition from entering the market B) to stabilize the market C) to create excitement for a product D) to prepare for an easy exit from a market E) to match a competitor Answer: D Diff: 2Page Ref: 299 Skill: Concept Objective: 10-4 52) In order to form a consistent and effective integrated marketing program, price decisions should be coordinated with each of the following EXCEPT ________. A) product design B) distribution C) competitors prices D) promotion decisions E) marketing objectives Answer: C Diff: 2Page Ref: 299 Skill: Concept Objective: 10-4 53) With target costing, marketers will first ________ and then ________. A) build the marketing mix; identify the target market B) identify the target market; build the marketing mix C) design the product; determine its cost D) use skimming pricing; penetrating pricing E) determine a selling price; target costs to ensure that the price is met Answer: E Diff: 2Page Ref: 300 Skill: Concept Objective: 10-4 54) Price setting is usually determined by ________ in small companies. A) top management B) marketing departments C) sales departments D) divisional managers E) cross-functional teams Answer: A Diff: 2Page Ref: 300 Skill: Concept Objective: 10-4 55) Price setting is usually determined by ________ in large companies. A) top management B) divisional managers C) product line managers D) pricing departments E) both B and C Answer: E Diff: 2Page Ref: 300 Skill: Concept Objective: 10-4 56) In industrial markets, ________ typically has the final say in setting the pricing objectives and policies of a company. A) the sales manager B) top management C) the production manager D) the finance manager E) the pricing department Answer: B Diff: 2Page Ref: 300 Skill: Concept Objective: 10-4 57) In industries in which pricing is a key factor, ________ often set the best prices or help others in setting them. A) sales managers B) top managers C) production managers D) finance managers E) pricing departments Answer: E Diff: 2Page Ref: 300 Skill: Concept Objective: 10-4 58) Under ________, the market consists of many buyers and sellers trading in a uniform commodity such as wheat, copper, or financial securities. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) anti-trust agreements Answer: A Diff: 2Page Ref: 302 Skill: Concept Objective: 10-4 59) Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price. A) pure competition B) monopolistic competition C) oligopolistic competition D) pure monopoly E) socialism Answer: B Diff: 2Page Ref: 302 Skill: Concept Objective: 10-4 60) Under ________, the market consists of a few sellers who are highly sensitive to each others pricing and marketing strategies. A) pure competition B) monopolistic competition C) oligopolistic competition D) pure monopoly E) capitalism Answer: C Diff: 2Page Ref: 302 Skill: Concept Objective: 10-4 61) Nonregulated monopolies are free to price at what the market will bear. However, they do not always charge the full price for a number of reasons. What is NOT one of those reasons? A) They dont want to attract competition. B) They want to penetrate the market faster with a low price. C) They have a fear of government regulation. D) They want to encourage government regulations. E) They want to please a large group of consumers. Answer: D Diff: 3Page Ref: 303 Skill: Concept Objective: 10-4 62) The relationship between the price charged and the resulting demand level can be shown as the ________. A) demand curve B) variable cost C) target cost D) break-even pricing E) experience curve Answer: A Diff: 1Page Ref: 303 Skill: Concept Objective: 10-4 63) Consumers usually perceive higher-priced products as ________. A) out of reach for most people B) having high quality C) having high profit margins D) having cost-based prices E) being in the introductory stage of the product life cycle Answer: B Diff: 3Page Ref: 303 Skill: Concept Objective: 10-4 64) Why do marketers consider prestige goods to be an exception to the typical demand curve? A) The demand curve for prestige goods slopes downward and to the right. B) Increasing the price of prestige goods can make them seem more desirable. C) Demand for prestige goods often is greater than supply. D) Prestige products such as diamonds, sapphires, and emeralds are nonrenewable resources. E) Customers are more aware of any price changes to prestige goods. Answer: B Diff: 3Page Ref: 303 Skill: Concept Objective: 10-4 65) Which of the following is true about the demand curve? A) It is used to illustrate the effect of price on the quantity supplied. B) It is always graphically depicted by a straight line. C) It shows the quantity of product customers will buy in a market during a period of time even if other factors change. D) It usually slopes upward and to the right. E) It shows the relationship between product demand and product price. Answer: E Diff: 3Page Ref: 303 Skill: Concept Objective: 10-4 6) When Gibson Guitar Corporation, long known for its high quality instruments, lowered its prices to compete more effectively with Japanese rivals, the company sold fewer guitars. Which of the following best explains this? A) The Gibson guitars were not as well made as the Japanese guitars. B) The market was already flooded with guitars. C) The sound of the Gibson guitar was not as good as the Japanese guitars. D) Customers did not distinguish the superiority of the Gibson guitar when it was at a lower price. E) Customers had come to expect a higher price for a Gibson guitar. Answer: D Diff: 3Page Ref: 303 Skill: Concept Objective: 10-4 67) ________ describes how responsive demand will be to a change in price. A) Price elasticity B) Break-even pricing C) The demand curve D) Target costing E) Supply Answer: A Diff: 1Page Ref: 304 Skill: Concept Objective: 10-4 68) If demand hardly changes with a small change in price, we say the demand is ________. A) variable B) inelastic C) value-based D) at break-even pricing E) market penetrating Answer: B Diff: 2Page Ref: 304 Skill: Concept Objective: 10-4 69) If demand changes greatly with a small change in price, we say the demand is ________. A) variable B) inelastic C) value-based D) elastic E) fixed Answer: D Diff: 1Page Ref: 304 Skill: Concept Objective: 10-4 70) Price elasticity of demand is ________ divided by ________. A) percent change in quantity demanded; percent change in price B) demand; price C) percent change in price; percent change in quantity demanded D) the going price; the asking price E) none of the above Answer: A Diff: 2Page Ref: 304 Skill: Concept Objective: 10-4 71) Buyers are less price sensitive in all of the following situations EXCEPT ________. A) when the product they are buying is unique B) when the product they are buying is in high demand C) when substitute products are hard to find D) when the total expenditure for a product is high relative to their income E) when the product is a specialty product Answer: D Diff: 2Page Ref: 304 Skill: Concept Objective: 10-4 72) The less ________ the demand, the ________ it pays for the seller to raise the price. A) determined; less B) elastic; more C) elastic; less D) constant; more E) none of the above Answer: B Diff: 3Page Ref: 304 Skill: Concept Objective: 10-4 73) Each of the following economic factors can have a strong impact on a firms pricing strategy EXCEPT ________. A) an economic boom B) the resellers reaction to price changes C) an economic recession D) inflation E) interest rates Answer: B Diff: 2Page Ref: 305 Skill: Concept Objective: 10-4 74) A company should set prices that will allow ________ to receive a fair profit. A) resellers B) producers C) consumers D) the elderly E) competitors Answer: A Diff: 2Page Ref: 305 Skill: Concept Objective: 10-4 75) When companies set prices, the government and social concerns are two ________ affecting pricing decisions. A) external factors B) internal factors C) economic conditions D) demand curves E) temporary influences Answer: A Diff: 1Page Ref: 305 Skill: Concept Objective: 10-4 76) Amos Zook, an Amish farmer, sells organically grown produce. Often he will trade some of his produce for dairy products produced by other Amish farmers. The sum of the values that others exchange is called a ________. A) price B) cost-plus price C) dynamic price D) common value price E) penetration price Answer: A Diff: 1Page Ref: 290 AACSB: Reflective Thinking Skill: Application Objective: 10-1 77) Trader Joes offers an assortment of exclusive gourmet products at impossibly low prices. These prices are not limited-time offers or special discounts. Instead, they reflect Trader Joes ________ strategy. A) everyday low pricing B) cost-plus pricing C) dynamic pricing D) value-based pricing E) cost-based pricing Answer: A Diff: 2Page Ref: 293 AACSB: Reflective Thinking Skill: Application Objective: 10-2 78) Jimmys Hardware, an independent local retailer, is losing business to Wal-Mart. This is most likely because he cannot match Wal-Marts pricing strategy of ________. A) EDLP B) EFGF C) fixed prices D) negotiated pricing E) skimming pricing Answer: A Diff: 2Page Ref: 293 AACSB: Analytic Skills Skill: Application Objective: 10-2 9) When McDonalds and other fast food restaurants offer value menu items at surprisingly low prices, they are using ________. A) break-even pricing B) target profit pricing C) value pricing D) cost-plus pricing E) bundling Answer: C Diff: 1Page Ref: 293 AACSB: Analytic Skills Skill: Application Objective: 10-2 80) Consumers who have less time and patience for watching for supermarket specials and clipping cou pons would most likely prefer ________. A) variable pricing B) high-low pricing C) EDLP D) break-even pricing E) value-based pricing Answer: C Diff: 3Page Ref: 293 AACSB: Analytic Skills Skill: Application Objective: 10-2 81) Xbox 360 decides to add a free subscription to XBOX magazine with every game bought in an effort to differentiate its offering from PS3 games. This is an example of ________. A) good-value pricing B) add-on pricing C) product-support pricing D) value-added pricing E) cost-based pricing Answer: D Diff: 2Page Ref: 293 AACSB: Reflective Thinking Skill: Application Objective: 10-2 82) The long-run average cost curve (LRAC) helps the producer understand which of the following? A) It shows how large a business should be, to be most efficient. B) It deals mainly with competitors prices. C) It deals mainly with external factors. D) all of the above E) none of the above Answer: A Diff: 2Page Ref: 296 AACSB: Analytic Skills Skill: Application Objective: 10-3 83) Assume a manufacturer with fixed costs of $100,000, a variable cost of $10, and expected sales of 50,000 units wants to earn a 20-percent markup on sales. What is the manufacturers markup price? A) $14 B) $15 C) $18 D) $18. 50 E) none of the above Answer: B Diff: 3Page Ref: 297 AACSB: Analytic Skills Skill: Application Objective: 10-3 84) General Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment. This approach is called ________. A) value-based pricing B) going-rate pricing C) cost-plus pricing D) low-price image E) target-profit pricing Answer: E Diff: 2Page Ref: 298 AACSB: Reflective Thinking Skill: Application Objective: 10-3 85) A company faces fixed costs of $100,000 and variable costs of $8. 00/unit. They plan to directly sell their product to the market for $12. 00. How many units must they produce and sell to break even? A) 20,000 B) 25,000 C) 40,000 D) 50,000 E) not enough information to calculate Answer: B Diff: 2Page Ref: 298 AACSB: Analytic Skills Skill: Application Objective: 10-3 6) Ecstasy Pharmaceuticals faces fixed costs with their new drug of $1,000,000. The company sells the drug in bottles of 50 pills for $10. 00. They estimate that they must sell 200,000 bottles to break even. What is the total cost to produce a bottle of 50 pills? A) $2. 50 B) $5. 00 C) $6. 00 D) $7. 50 E) not enough information to calculate Answer: B Diff: 3Page Ref: 298 AACSB: Analytic Skills Skill: Application Objective: 10-3 87) A manufacturer is trying to determine its break-even volume. With fixed costs of $100,000, a variable cost of $10, and expected sales of 50,000 units, what should the manufacturers unit cost be to break even? A) $10 B) $12 C) $16 D) $20 E) none of the above Answer: B Diff: 3Page Ref: 298 AACSB: Analytic Skills Skill: Application Objective: 10-3 88) As a manufacturer decreases price, ________ volume increases. A) target B) break-even C) cost-plus pricing D) total cost E) sales Answer: B Diff: 3Page Ref: 299 AACSB: Analytic Skills Skill: Application Objective: 10-3 89) PG surveyed the market and identified an unserved segment of electric toothbrush market. Using these results, they created Spinbrush. The unorthodox order of this marketing mix decision is an example of ________. A) competition-based pricing B) cost-plus pricing C) target costing D) value-based pricing E) penetration pricing Answer: C Diff: 2Page Ref: 300 AACSB: Reflective Thinking Skill: Application Objective: 10-4 90) PoolPak produces climate-control systems for large swimming pools. The companys customers are more concerned about service support for maintaining a system than its initial price. PoolPak may use this knowledge to become more competitive through ________. A) target costing B) value pricing C) cost-plus pricing D) a nonprice position E) skimming pricing Answer: D Diff: 2Page Ref: 300 AACSB: Reflective Thinking Skill: Application Objective: 10-3 91) By pledging to be a leader in providing clean, renewable energy sources and developing products and services that help consumers protect the environment, Green Mountain Power competes successfully against cheaper brands that focus on more price-sensitive consumers. Green Mountain Power has the firm belief that even kilowatt-hours can be ________. A) cost-plus priced B) a demand curve C) differentiated D) value-based priced E) none of the above Answer: C Diff: 3Page Ref: 300 AACSB: Analytic Skills Skill: Application Objective: 10-4 92) In Vin del Mar, Chile, there are a dozen stores specializing in selling the same quality of seafood products on one street. An individual store dare not charge more than the going price without the risk of losing business to the other stores that are selling the fish at a common price. This is an example of what type of market? A) pure competition B) monopolistic competition C) oligopolistic competition D) pure monopoly E) socialist Answer: A Diff: 2Page Ref: 302 AACSB: Reflective Thinking Skill: Application Objective: 10-4 93) Ascot Tires has decided to decrease its prices. The company can expect that ________ for their product will increase. A) cost-plus pricing B) value-based pricing C) demand D) the experience curve E) competition Answer: C Diff: 1Page Ref: 303 AACSB: Reflective Thinking Skill: Application Objective: 10-4 94) If Canon Camera Company follows a high-price, high-margin strategy, what will competitors such as Nikon, Minolta, and Pentax most likely do? A) They will go out of business. B) They will want to compete against Canon. C) They will advertise less. D) They will bundle their products. E) none of the above Answer: B Diff: 2Page Ref: 304 AACSB: Analytic Skills Skill: Application Objective: 10-4 95) If Canon Camera Company follows a low-price, low-margin strategy for a product, what will competitors most likely do? A) They will not be able to compete or may leave the market. B) They will want to compete against Canon. C) They will advertise less. D) They will advertise more. E) none of the above Answer: A Diff: 3Page Ref: 304 AACSB: Analytic Skills Skill: Application Objective: 10-4 96) Companies are fortunate to have demand that is more ________ because they may be able to set higher prices. A) elastic B) external C) internal D) inelastic E) fixed Answer: D Diff: 2Page Ref: 304 AACSB: Analytic Skills Skill: Application Objective: 10-4 97) If demand falls by 1 percent when price is increased by 2 percent, then ________. A) elasticity is —1/2 B) demand is inelastic C) demand is elastic D) buyers are not price sensitive E) A and B Answer: E Diff: 3Page Ref: 304 AACSB: Analytic Skills Skill: Application Objective: 10-4 Refer to the scenario below to answer the following questions. Alden Manufacturing produces small kitchen appliances? blenders, hand mixers, and electric skillets? under the brand name First Generation. Alden attempts to target newlyweds and first-time home buyers with this brand. In considering that most young households have limited financial resources, Alden has attempted to engage in target costing. In doing this, Milt Alden stated, we have better control over keeping price right in line with customers. Alden manufactures a three-speed blender, its top seller, and a five-speed blender. The hand mixers are manufactured in two styles? a small hand-held mixer with two rotating beaters and a similar style that comes with an optional stand and attached mixing bowl. Aldens temperature-controlled skillets are manufactured in one style with three color options. Our product offerings are narrower, Milt Alden added, but our line workers know each product like the back of their hands. This allows us to produce superior products while holding our prices low. 98) Milt Alden says that his line workers know each product like the back of their hands, and that this knowledge helps the company keep its prices low. This indicates that Alden Manufacturing most likely uses w hich of the following strategies? A) cost-plus pricing B) value-based pricing C) the experience curve D) cost-based pricing E) target profit pricing Answer: C Diff: 2Page Ref: 296 AACSB: Analytic Skills Skill: Application Objective: 10-2 99) Milt Alden uses a target costing strategy. Which of the following is he most likely to do in executing this strategy? A) base his price on competitors prices B) use everyday low pricing C) use a break-even chart to determine pricing D) start with customer-value considerations E) start by determining the costs of a new product Answer: D Diff: 2Page Ref: 300 AACSB: Analytic Skills Skill: Application Objective: 10-4 100) If Alden raises the price on the handheld mixer by 2 percent and quantity demanded falls by 10 percent what is the price elasticity of demand? A) —5 B) —8 C) —12 D) 5 E) 12 Answer: A Diff: 3Page Ref: 304 AACSB: Analytic Skills Skill: Application Objective: 10-4 101) When faced with price competition cutting prices is often not the best answer. Answer: TRUE Diff: 2Page Ref: 293 AACSB: Analytic Skills Skill: Application Objective: 10-1 102) Prices have a direct impact on a companys bottom line. Answer: TRUE Diff: 1Page Ref: 290 Skill: Concept Objective: 10-1 103) Demand and consumer value perceptions set the floor for prices. Answer: FALSE Diff: 2Page Ref: 291 Skill: Concept Objective: 10-2 104) Product costs set a floor to the price; consumer perceptions of the products value set the ceiling. Answer: TRUE Diff: 2Page Ref: 291 Skill: Concept Objective: 10-2 105) Value-based pricing is being used when costs vary directly with the level of product. Answer: FALSE Diff: 3Page Ref: 291 Skill: Concept Objective: 10-2 106) Value-based pricing uses the companys perception of value. Answer: FALSE Diff: 2Page Ref: 291 Skill: Concept Objective: 10-2 107) Value-based pricing is the reverse of cost-based pricing. Answer: TRUE Diff: 2Page Ref: 291 Skill: Concept Objective: 10-2 108) Using value-based pricing, a marketer would not design a product and marketing program before setting the price. Answer: TRUE Diff: 3Page Ref: 291 AACSB: Analytic Skills Skill: Application Objective: 10-2 109) EDLP is very similar to high-low pricing. Answer: TRUE Diff: 2Page Ref: 293 Skill: Concept Objective: 10-2 110) Overhead cost is another term for fixed cost. Answer: TRUE Diff: 1Page Ref: 295 Skill: Concept Objective: 10-3 111) Cost-based pricing relies on consumer perception of value to drive pricing. Answer: FALSE Diff: 2Page Ref: 295 Skill: Concept Objective: 10-3 112) Average unit cost increases with accumulated production experience. Answer: FALSE Diff: 1Page Ref: 296 Skill: Concept Objective: 10-3 13) An upward-sloping experience curve is beneficial for a company. Answer: FALSE Diff: 3Page Ref: 297 Skill: Concept Objective: 10-3 114) The simplest pricing method is cost-plus pricing, which involves adding a standard markup to the cost of the product. Answer: TRUE Diff: 2Page Ref: 297 Skill: Concept Objective: 10-3 115) Markup pricing is popular because prices tend to be similar and p rice competition is thus minimized. Answer: TRUE Diff: 2Page Ref: 298 Skill: Concept Objective: 10-3 116) Target profit pricing is used when a firm tries to determine the price at which it will break even or make the profit it is seeking. Answer: TRUE Diff: 3Page Ref: 298 Skill: Concept Objective: 10-3 117) A break-even chart shows the total cost and total revenue expected at various sales volume levels. Answer: TRUE Diff: 2Page Ref: 298 Skill: Concept Objective: 10-3 118) Environmental elements are categorized as external factors that affect pricing decisions. Answer: TRUE Diff: 2Page Ref: 299 Skill: Concept Objective: 10-4 119) In a pure monopoly, the market consists of one seller. Answer: TRUE Diff: 1Page Ref: 303 Skill: Concept Objective: 10-4 120) Nonregulated monopolies always charge the full price because they do not fear attracting competition. Answer: FALSE Diff: 2Page Ref: 303 AACSB: Analytic Skills Skill: Application Objective: 10-4 121) Marketers may learn a few simple rules that apply equally to all price-demand relationships. Answer: FALSE Diff: 2Page Ref: 303 AACSB: Analytic Skills Skill: Application Objective: 10-4 122) The demand curve shows the number of units the market will buy in a given time period at different prices that might be charged. In normal cases, the higher the price, the lower the demand. Answer: TRUE Diff: 1Page Ref: 303 Skill: Concept Objective: 10-4 123) If demand changes greatly with price, we say the demand is inelastic. Answer: FALSE Diff: 2Page Ref: 304 Skill: Concept Objective: 10-4 124) The more elastic the demand, the more it pays for the seller to raise the price. Answer: FALSE Diff: 2Page Ref: 304 AACSB: Analytic Skills Skill: Application Objective: 10-4 125) Consumers will base their judgments of a products value on the prices that competitors charge for similar products. Answer: TRUE Diff: 2Page Ref: 304 Skill: Concept Objective: 10-4 126) Pricing and price competition account for the number-one problem facing many marketing executives. What are some of the frequent problems that companies encounter? Answer: The pricing environment changes at a fast pace, and value-seeking customers have put increased pricing pressure on many companies. However, companies are often too quick to reduce prices in order to get a sale rather than convincing buyers that their products are worth a higher price. A companys pricing, in addition, is often too cost-oriented rather than customer-value oriented. Companies have prices that are not revised often enough to reflect market changes. Another common problem is pricing that does not take the rest of the marketing mix into account. Diff: 2Page Ref: 289 AACSB: Analytic Skills Skill: Application Objective: 10-1 127) Discuss the importance of consumer perceptions of value and costs to setting prices. Answer: Customer perceptions of value set the upper limit for prices, and costs set the lower limit. However, in setting prices within these limits the company must then consider other internal and external factors. Internal factors affecting pricing include the companys overall marketing strategy, objectives, and marketing mix, as well as other organizational considerations. External factors include the nature of the market and demand, competitors strategies and prices, and other environmental factors. Diff: 1Page Ref: 291 AACSB: Analytic Skills Skill: Application Objective: 10-2 128) Explain how break-even analysis can be used for target profit pricing. Answer: The firm determines the price at which it will break even. The firm can also add the target profit to the fixed costs and then determine the new, break-even point, which now includes the target profit. Pricing decisions can be made by examining where the total revenue and total cost curves intersect on a break-even chart at different price points and sales volume. Diff: 2Page Ref: 298 AACSB: Analytic Skills Skill: Application Objective: 10-3 29) Identify and define the internal factors affecting a firms pricing decisions. Answer: The pricing strategy is largely determined by the companys target market and positioning objectives. Pricing decisions affect and are affected by product design, distribution, and promotion decisions. Costs set the floor for the companys price, which must cover all the costs of making and selling t he product, plus a fair rate of return. In order to coordinate pricing goals and decisions, management must decide who within the organization is responsible for setting price. Diff: 2Page Ref: 299 AACSB: Analytic Skills Skill: Application Objective: 10-4 130) Compare pure competition with oligopolistic competition. Answer: Under pure competition, the market consists of many buyers and sellers trading in a uniform commodity. No single buyer or seller has much effect on the going market price. Under oligopolistic competition, the market consists of few sellers who are highly sensitive to each others pricing and marketing strategies. The product can be uniform or nonuniform. There are few sellers because it is difficult for new sellers to enter the market. Each seller is alert to competitors strategies and moves. Diff: 3Page Ref: 302-303 AACSB: Analytic Skills Skill: Application Objective: 10-4 131) Compare oligopolistic competition with a pure monopoly. Answer: Under oligopolistic competition, the market consists of a few sellers who are highly sensitive to each others pricing and marketing strategies. There are few sellers because it is difficult for new sellers to enter the market. Under a pure monopoly, the market consists of one seller. Pricing is handled differently in each case. The seller may be a government monopoly, a private nonregulated monopoly, or a private regulated monopoly. Diff: 3Page Ref: 302-303 AACSB: Analytic Skills Skill: Application Objective: 10-4 32) Describe what a demand curve is and explain how it helps businesses. Answer: It estimates consumer demand at different prices. In a monopoly, the demand curve shows the total market demand resulting from different prices. If the company faces competition, its demand at different prices will depend on whether competitors prices stay constant or change with the companys own prices. Diff: 2Page Ref: 303 AACSB: Analytic Skills Skill: Application Objective: 10-4 133) What does price elasticity reveal about a product? Answer: Price elasticity is a measure of the sensitivity of demand to changes in price. If demand hardly changes with a small change in price, we say the demand is inelastic. If demand changes greatly, we say the demand is elastic. Diff: 1Page Ref: 304 AACSB: Analytic Skills Skill: Application Objective: 10-4 134) The company must consider the impact its prices will have on resellers. Identify three ways the company can help resellers. Answer: The company, first of all, should set prices that give resellers a fair profit. The company should also encourage their support. Finally, the company should help resellers to sell the product effectively. Diff: 1Page Ref: 305 AACSB: Analytic Skills Skill: Application Objective: 10-4 135) When setting prices, the company must consider its external environment. Describe four parts of the external environment and how they affect businesses. Answer: Economic conditions affect both the costs of producing a product and consumer perceptions of the products price and value. The company should encourage and support resellers and help them to sell the product effectively. The government, in the form of local, state, and federal laws, is another important influence on pricing decisions. Social concerns impact pricing, especially when a companys short-term sales, market share, and profit goals may have to be tempered by broader societal considerations. Diff: 1Page Ref: 305 AACSB: Analytic Skills Skill: Application Objective: 10-4 136) How important is price among the elements of the marketing mix? Answer: In recent decades, nonprice factors have gained increasing importance. However, price still remains one of the most important elements determining a firms market share and profitability. Diff: 2Page Ref: 290 AACSB: Analytic Skills Skill: Application Objective: 10-1 37) Why is price considered to be one of the most flexible elements of the marketing mix? Answer: Price can be changed quickly. Diff: 1Page Ref: 290 AACSB: Analytic Skills Skill: Application Objective: 10-1 138) Explain the concept of a price floor. Answer: A price floor is the lowest price charged at which the company still earns some profits. Diff: 2Page Ref: 291 AACSB: Analytic Skills Skill: Applicatio n Objective: 10-2 139) Explain the concept of a price ceiling. Answer: A price ceiling is the highest price charged at which there is still some consumer demand. Diff: 2Page Ref: 291 AACSB: Analytic Skills Skill: Application Objective: 10-2 140) What must a company using value-based pricing find out about its customers? Answer: They must determine the specific value that individual buyers assign to different competitive offers. Diff: 3Page Ref: 292 AACSB: Analytic Skills Skill: Application Objective: 10-2 141) Explain good-value pricing. Answer: With good-value pricing, a marketer offers just the right combination of quality and good service at a fair price. Diff: 1Page Ref: 293 AACSB: Analytic Skills Skill: Application Objective: 10-2 142) What must a firm do to retain pricing power? Answer: To retain pricing power, a firm must retain of build the value of its market offering. Diff: 2Page Ref: 293 AACSB: Analytic Skills Skill: Application Objective: 10-2 143) What costs make up a products total cost? Answer: Fixed costs and variable costs make up total cost. Diff: 1Page Ref: 296 AACSB: Analytic Skills Skill: Application Objective: 10-3 144) Explain the significance of a downward-sloping experience curve. Answer: Not only will the companys unit production cost fall, but it will fall faster if the company makes and sells more during a given time period. Diff: 3Page Ref: 297 AACSB: Analytic Skills Skill: Application Objective: 10-3 145) A marketers fixed costs are $400,000, the variable cost is $16, and they expect the product to sell for $24. What is their break-even point in units? Answer: The break-even point in units is 50,000 units. Diff: 3Page Ref: 298 AACSB: Analytic Skills Skill: Application Objective: 10-3 146) A marketers fixed costs are $400,000, the variable cost is $16, and they expect the product to sell for $24. What is their break-even point in dollar sales? Answer: The break-even point in dollar sales is $1,200,000. Diff: 3Page Ref: 298 AACSB: Analytic Skills Skill: Application Objective: 10-3 147) A marketers fixed costs are $400,000, the variable cost is $16, and they expect their product to sell for $24. If the marketer has sales of $1,440,000, what is their profit on this product? Answer: The profit is $80,000. Diff: 3Page Ref: 298 AACSB: Analytic Skills Skill: Application Objective: 10-3 148) Who typically sets prices in small companies? In large companies? Answer: Top management sets prices in small companies, whereas divisional or product line managers typically set prices in large companies. Diff: 2Page Ref: 300 AACSB: Analytic Skills Skill: Application Objective: 10-4 149) Explain a pure monopoly. Answer: The market consists of one seller that dominates the market. Diff: 2Page Ref: 303 AACSB: Analytic Skills Skill: Application Objective: 10-4 150) If demand is elastic, will sellers consider lowering their prices? Explain. Answer: Yes. A lower price will produce more needed revenue, as consumers will respond to the change in price and buy more. Diff: 2Page Ref: 304 AACSB: Analytic Skills Skill: Application Objective: 10-4