Marketing Test 3 Chp 11

72 Questions  I  By Kcarter052
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Marketing Quizzes & Trivia
Mkt test chps 11-13

  
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  • 1. 
    Sales/ market share, profit, competitive effect, customer satisfaction, and image enhancement objectives are types of what objectives? 
    • A. 

      Customer

    • B. 

      Selling

    • C. 

      Cost

    • D. 

      Pricing


  • 2. 
    Altering price to preempt or reduce the effectiveness of the introduction of a competitor's product is which type of pricing objectives? 
    • A. 

      Sales or market share

    • B. 

      Customer satisfaction

    • C. 

      Profit

    • D. 

      Competitive effect

    • E. 

      Image enhancement


  • 3. 
    True or False: Price is the only "P" of the marketing mix which represents revenue rather than an expense? 
    • A. 

      True

    • B. 

      False


  • 4. 
    When a company sets a very low price for the purpose of driving competition out of business, while pricing the product higher in markets where competition does not exist or is relatively weaker is called what? 
    • A. 

      Comparative advantage

    • B. 

      Predatory pricing

    • C. 

      Competitive effect

    • D. 

      Profit


  • 5. 
    Is a profit objective important to firms that see profits as what motivates shareholders and bankers to invest in a company? 
    • A. 

      Yes

    • B. 

      No


  • 6. 
    Which is the correct series of price planning? 
    • A. 

      Evaluate the pricing environment, Develop pricing objectives, Estimate demand, Determine costs, Choose a pricing strategy, Develop pricing tactics

    • B. 

      Develop pricing objectives, Estimate demand, Determine costs, Evaluate the pricing environment, Choose a pricing strategy, Develop pricing tactics

    • C. 

      Evaluate the pricing environment, Estimate demand, Determine costs, Develop pricing tactics, Choose a pricing strategy, Develop pricing objectives

    • D. 

      Develop pricing objectives, Estimate demand, Evaluate the pricing environment, Determine costs, Develop pricing objectives, Choose a pricing strategy


  • 7. 
    Changing a product's price to support a 10% increase in sales in order to maximize sales and increase market share is an example of what pricing objective? 
    • A. 

      Sales or market share

    • B. 

      Profit

    • C. 

      Customer satisfaction

    • D. 

      Image enhancement

    • E. 

      Competitive effect


  • 8. 
    Price is a function of: 
    • A. 

      Demand

    • B. 

      Costs

    • C. 

      Revenue

    • D. 

      Environment

    • E. 

      All of the above


  • 9. 
    Why are profits so important when the product is a fad?
    • A. 

      Fads have a short market life

    • B. 

      Fads are a large part of a company's revenue

    • C. 

      Firms must recover its investment in a short period of time

    • D. 

      All of the above

    • E. 

      A and C only


  • 10. 
    When you couple desire with the buying power or resources to satisfy a want, the result is...
    • A. 

      Supply

    • B. 

      Demand

    • C. 

      Desire

    • D. 

      Want

    • E. 

      Need


  • 11. 
    Price is defined as the ________ that customers give up or exchange to obtain a desired product.

  • 12. 
    The demand curve assumes that all factors other than _______ stay the same.
    • A. 

      Demand

    • B. 

      Price

    • C. 

      Time

    • D. 

      Economy


  • 13. 
    Altering prices to simplify the buyer's decision process is an example of what pricing objective?
    • A. 

      Image enhancement

    • B. 

      Competitive effect

    • C. 

      Profit

    • D. 

      Customer satisfaction

    • E. 

      Sales or market share


  • 14. 
    The effect of price on the quantity demanded of a product is often illustrated on a graph known as..
    • A. 

      Price change curve

    • B. 

      Supply curve

    • C. 

      Demand curve

    • D. 

      Cost curve


  • 15. 
    Altering prices to emphasize the product's quality is an example of what pricing objective?
    • A. 

      Sales or market share

    • B. 

      Profit

    • C. 

      Customer satisfaction

    • D. 

      Image enhancement

    • E. 

      Competitive effect


  • 16. 
    Curved lines in demand graphs where increase many actually result in an increase in the quantity demanded because consumers see the products as more valuable is called..
    • A. 

      Shift in demand

    • B. 

      Optimum price

    • C. 

      Prestige product

    • D. 

      Demand curve


  • 17. 
    A marketing manager estimates demand, which effects
    • A. 

      Production scheduling

    • B. 

      Marketing planning

    • C. 

      Budgeting

    • D. 

      A and B only

    • E. 

      All of the Above


  • 18. 
    Before setting prices, what must marketers first know?
    • A. 

      Who is going to buy the product

    • B. 

      How much of the product consumers will want

    • C. 

      How demand will change as the price increases or decreases

    • D. 

      A and B only

    • E. 

      B and C only


  • 19. 
    In demand curves, a _______ axis represents the different prices a firm might charge and a _________ axis shows the number of units that will be demanded. 
    • A. 

      Vertical, Horizontal

    • B. 

      Horizontal, Vertical

    • C. 

      Both Horizontal

    • D. 

      Both Vertical


  • 20. 
    If prices decrease, customers will buy more is the Law of...
    • A. 

      Supply

    • B. 

      Consumer Pricing

    • C. 

      Cost

    • D. 

      Demand

    • E. 

      None of the Above


  • 21. 
    Does an upward shift in the demand curve mean that at any given price demand is greater than before the shift occurred? 
    • A. 

      Yes

    • B. 

      No


  • 22. 
    When demand is inelastic, what happens to a company's revenue if you increase your product's price? And if you decrease price? 
    • A. 

      Decreases, increases

    • B. 

      Decreases, decreases

    • C. 

      Increases, decreases

    • D. 

      Increases, increases

    • E. 

      No change


  • 23. 
    An upward shift is a good thing from a marketing standpoint because..
    • A. 

      The company can sell more of its products without having to lower prices

    • B. 

      Total revenues go up

    • C. 

      Total profits go up unless new ad campaigns or changes in quality cost as much as the increase in revenue.

    • D. 

      A and B only

    • E. 

      All of the Above


  • 24. 
    Demand shifts are caused by..
    • A. 

      The company's efforts

    • B. 

      The environment

    • C. 

      Price change

    • D. 

      All of the Above

    • E. 

      A and B only


  • 25. 
    Percentage change in quantity demanded/ Percentage change in price equals what? 
    • A. 

      Demand

    • B. 

      Total costs

    • C. 

      Break-even point

    • D. 

      Price elasticity of demand


  • 26. 
    What types of costs are the per unit costs of production that will fluctuate depending on how many units or individual products a company produces? 
    • A. 

      Fixed

    • B. 

      Variable

    • C. 

      All of the Above

    • D. 

      None of the Above


  • 27. 
    Price elasticity of demand is a measure of the sensitivity of customers to what?
    • A. 

      Changes in demand

    • B. 

      Changes in supply

    • C. 

      Changes in quantity demand

    • D. 

      Changes in price

    • E. 

      All of the Above


  • 28. 
    Which are types of costs? 
    • A. 

      Revenue

    • B. 

      Fixed

    • C. 

      Variable

    • D. 

      B and C only

    • E. 

      All of the Above


  • 29. 
    What is the difference between elastic demand and inelastic demand?
    • A. 

      Elastic is when price has little or no effect on the quantity that consumers are willing to buy and inelastic is when change in price results in a substantial change in the quantity demanded

    • B. 

      Elastic is when change in price results in a substantial change in the quantity demanded and inelastic is when price has little or no effect on the quantity that consumers are willing to buy.

    • C. 

      None of the Above


  • 30. 
    Total revenues- Total Costs = ?
    • A. 

      Total fixed costs

    • B. 

      Break even point

    • C. 

      Profits

    • D. 

      Marginal Profit


  • 31. 
    When demand is elastic, what happens to a company's revenue if you increase your product's price? And if you decrease price? 
    • A. 

      Decreases, increases

    • B. 

      Decreases, decreases

    • C. 

      Increases, decreases

    • D. 

      Increases, increases

    • E. 

      No change


  • 32. 
    True or False: Fixed costs do not change with the number of units the company produces.
    • A. 

      True

    • B. 

      False


  • 33. 
    Before marketers can determine price, they must understand the relationship of what things for their product?
    • A. 

      Cost

    • B. 

      Demand

    • C. 

      Revenue

    • D. 

      B and C only

    • E. 

      All of the Above


  • 34. 
    True or False: The point at which total costs and total revenue intersect is the break even point?
    • A. 

      True

    • B. 

      False


  • 35. 
    If a company's suppliers provide volume discounts that result in economies of scale, variable costs will _________ with higher levels of production. 
    • A. 

      Increase

    • B. 

      Decrease

    • C. 

      Stay the same


  • 36. 
    _____________ change with the number of units produced and _____________ don't change with units sold. 
    • A. 

      Total Variable Costs, Total Fixed Costs

    • B. 

      Total Revenues, Total Cost

    • C. 

      Total Fixed Costs, Total Variable Costs

    • D. 

      Total Cost, Total Revenues

    • E. 

      None of the Above


  • 37. 
    In situations in which people desire a product more as it increases in price, what product category would those go in?
    • A. 

      Desired Goods

    • B. 

      Prestige Product

    • C. 

      Luxury Goods

    • D. 

      All of the Above

    • E. 

      B and C only


  • 38. 
    True or False: Marketers use marginal analysis to look at cost and demand at the same time?
    • A. 

      True

    • B. 

      False


  • 39. 
    What technique must we use to determine how many units of an item we must sell at a given price in order to break even? 
    • A. 

      Product Pricing

    • B. 

      Marginal Costs

    • C. 

      Marginal Revenue

    • D. 

      Break-Even Analysis

    • E. 

      B and C only


  • 40. 
    Which of these are external influences on pricing strategies? 
    • A. 

      The economy

    • B. 

      The competition

    • C. 

      Consumer Trends

    • D. 

      Celebrities

    • E. 

      A, B and C only


  • 41. 
    The increase in total costs from producing one additional unit of a product...
    • A. 

      Marginal revenues

    • B. 

      Marginal analysis

    • C. 

      Marginal cost

    • D. 

      None of the Above


  • 42. 
    The increase in total income or revenue that results from selling one additional unit of a product is...
    • A. 

      Marginal revenues

    • B. 

      Marginal analysis

    • C. 

      Marginal cost

    • D. 

      None of the Above


  • 43. 
    What provides a way for marketers to identify the output and the price that will maximize profits? 
    • A. 

      Pricing strategies

    • B. 

      Marginal analysis

    • C. 

      Marginal cost

    • D. 

      Marginal revenue

    • E. 

      B, C, D only


  • 44. 
    Which strategy is it: selling price is based on an estimate of volume and quantity that a firm can sell in different markets at different prices. 
    • A. 

      Cost

    • B. 

      Demand

    • C. 

      Competition

    • D. 

      Customers' Needs

    • E. 

      None of the Above


  • 45. 
    What are pricing strategies based on?
    • A. 

      Cost

    • B. 

      Demand

    • C. 

      Competition

    • D. 

      Customers' needs

    • E. 

      All of the Above


  • 46. 
    Which strategy is it: firm sets prices at, above or below their competition? 
    • A. 

      Cost

    • B. 

      Demand

    • C. 

      Competition

    • D. 

      Customers' needs

    • E. 

      None of the Above


  • 47. 
    What does cost-plus pricing include?
    • A. 

      Total all costs

    • B. 

      Adds mark up

    • C. 

      Arrive at selling price

    • D. 

      All of the Above

    • E. 

      A and C only


  • 48. 
    Which strategy is it: price will at least cover the costs the company incurs in producing and marketing the product
    • A. 

      Cost

    • B. 

      Demand

    • C. 

      Competition

    • D. 

      Customers' Needs

    • E. 

      None of the Above


  • 49. 
    Value pricing and everyday low pricing are examples of which pricing strategy? 
    • A. 

      Cost

    • B. 

      Demand

    • C. 

      Competition

    • D. 

      Customers' Needs

    • E. 

      None of the Above


  • 50. 
    What is the most common cost based approach to pricing a product? 
    • A. 

      Target Costing

    • B. 

      Cost-Plus

    • C. 

      Cost- Value

    • D. 

      Trial Cost


  • 51. 
    Which strategy is it: promise ultimate value to consumers.
    • A. 

      Cost

    • B. 

      Demand

    • C. 

      Competition

    • D. 

      Customers' Needs

    • E. 

      None of the Above


  • 52. 
    Which are types of new product pricing strategies? 
    • A. 

      Skimming

    • B. 

      Penetration

    • C. 

      Trial

    • D. 

      All of the Above

    • E. 

      A and C only


  • 53. 
    When a firm introduces a product at a very low price and leaves it there in order to gain market share early on and discourage competitors from entering the market is called...
    • A. 

      Skimming

    • B. 

      Penetration

    • C. 

      Trial

    • D. 

      Profit Objective

    • E. 

      Promotion


  • 54. 
    When two or more companies conspire to keep prices at a certain level is called? 
    • A. 

      Predatory pricing

    • B. 

      Price bundling

    • C. 

      Price gouging

    • D. 

      Price fixing


  • 55. 
    A firm charges a high price for its new product and when rival products enter the market the firm lowers its price in order for the firm to remain competitive. 
    • A. 

      Skimming

    • B. 

      Penetration

    • C. 

      Trial

    • D. 

      Profit Objective

    • E. 

      Promotion


  • 56. 
    What is true of loss leader pricing?
    • A. 

      Illegal in some states

    • B. 

      Builds store traffic and sales volume

    • C. 

      Sell items at low price to get them into the store

    • D. 

      All of the above

    • E. 

      B and C only


  • 57. 
    A firm's new product carries a low price for a limited time period in order to win customer acceptance first and make profits later is called..
    • A. 

      Skimming

    • B. 

      Penetration

    • C. 

      Trial

    • D. 

      Profit Objective

    • E. 

      Promotion


  • 58. 
    What is true of bait and switch?
    • A. 

      Illegal tactic

    • B. 

      Lure customers in with very low prices but the offer is not legitimate

    • C. 

      Try and convince customer to buy another more expensive item

    • D. 

      All of the above

    • E. 

      A and B only


  • 59. 
    What is it called when a firm has two products that work only when used together, and the firm sells one item at a very low price and then makes a profit on the second high margin item?
    • A. 

      Price bundling

    • B. 

      Captive pricing

    • C. 

      Predatory pricing

    • D. 

      Bait and switch pricing


  • 60. 
    If a retailer near the ocean increases the price of existing stock of milk and bread when a hurricane hits, what is that called? 
    • A. 

      Predatory pricing

    • B. 

      Price bundling

    • C. 

      Price gouging

    • D. 

      Price fixing


  • 61. 
    11The methods companies use to set their strategies in motion are called..
    • A. 

      Pricing tactics

    • B. 

      Pricing objectives

    • C. 

      Pricing methods

    • D. 

      Profit objectives


  • 62. 
    Which type of pricing objective is it when you set the price to yield a desired net profit margin? 
    • A. 

      Competitive effect

    • B. 

      Customer satisfaction

    • C. 

      Profit

    • D. 

      Image enhancement


  • 63. 
    When is it necessary to lower prices in order to increase market share? 
    • A. 

      Rarely

    • B. 

      Never

    • C. 

      Often

    • D. 

      Daily


  • 64. 
    In an elastic demand curve if price increases revenue _______ and if price decreases revenue _______.
    • A. 

      Decreases, increases

    • B. 

      Increases, decreases

    • C. 

      Decreases, decreases

    • D. 

      Increases, increases

    • E. 

      Stays the same


  • 65. 
    In an inelastic demand curve if price increases revenue ___________ and if price decreases revenue ________. 
    • A. 

      Decreases, increases

    • B. 

      Increases, decreases

    • C. 

      Decreases, decreases

    • D. 

      Increases, increases

    • E. 

      Stays the same


  • 66. 
    True or false: estimating demand helps marketers decide what prices to charge for a product and how much they'll be able to sell at different prices.
    • A. 

      True

    • B. 

      False


  • 67. 
    Of the two demand based pricing strategies: ____________ sets the price before the product is designed and __________ is what airlines use when they sell seats on the same flight for different prices. 
    • A. 

      Everyday low pricing, value pricing

    • B. 

      Yield management pricing, target costing

    • C. 

      Value pricing, everyday low pricing

    • D. 

      Target costing, yield management pricing


  • 68. 
    True or false: when a firm develops pricing strategies that cater to customers, its biggest concern is short term results. 
    • A. 

      True

    • B. 

      False


  • 69. 
    Firms that focus on profit objectives when developing their pricing strategies should choose which new product pricing strategy?
    • A. 

      Skimming

    • B. 

      Penetration

    • C. 

      Trial

    • D. 

      None of the above


  • 70. 
    What is true of first movers? 
    • A. 

      Preempt their competition

    • B. 

      Develop leadership reputation

    • C. 

      Sustain their lead due to to patents and trade secrets

    • D. 

      All of the Above

    • E. 

      A and C only


  • 71. 
    The ________ is the price that the manufacture sets as the appropriate price for the end consumer to pay. It is often referred as MSRP. 
    • A. 

      Suggested retail price

    • B. 

      Trial pricing

    • C. 

      List price

    • D. 

      All of the above

    • E. 

      A and C only


  • 72. 
    Selling two or more goods or services as a single package for one price is..
    • A. 

      Price bundling

    • B. 

      Captive pricing

    • C. 

      Predatory pricing

    • D. 

      Price gouging


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