Price-quality Quiz

12 Questions | Total Attempts: 611

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Product Quizzes & Trivia

Here in this quiz you will get to learn about consumer price quality! Let's start and play this quiz now!


Questions and Answers
  • 1. 
    What term describes the situation when a firm earns a higher rate of economic profit than the average rate of economic profit of other firms competing within the same market?
    • A. 

      Industry effect

    • B. 

      Competitive advantage

    • C. 

      Business unit effect

    • D. 

      Competitive position

    • E. 

      Market profitability economics

  • 2. 
    • A. 

      Value creation

    • B. 

      Competitive advantage

    • C. 

      Consumer surplus

    • D. 

      Maximum willingness-to-pay

    • E. 

      Value chain

  • 3. 
    What term describes the price at which a consumer is indifferent between buying a product and going without it?
    • A. 

      Value creation

    • B. 

      Competitive advantage

    • C. 

      Consumer surplus

    • D. 

      Maximum willingness-to-pay

    • E. 

      Value chain

  • 4. 
    • A. 

      Frontier curve

    • B. 

      Learning curve

    • C. 

      Level curve

    • D. 

      Implicit curve

    • E. 

      Indifference curve

  • 5. 
    Select the letter corresponding to the best answer.  For a given consumer, any price-quality combination along the indifference curve yields the _______________.
    • A. 

      Same consumer surplus

    • B. 

      Same maximum willingness-to-pay

    • C. 

      High consumer surplus

    • D. 

      Low consumer surplus

    • E. 

      Same competitive advantage

  • 6. 
    When multiple firms' price-quality positions line uo along the same indifference curve offering a consumer the same amount of consumer surplus, what term describes the situation?
    • A. 

      Price-quality parity

    • B. 

      Price matching

    • C. 

      Maximum willingness-to-pay

    • D. 

      Consumer surplus parity

    • E. 

      Consumer surplus

  • 7. 
    Which of the following represents producer surplus in the value creation equation, (B-P) + (P-C)?
    • A. 

      B

    • B. 

      P

    • C. 

      C

    • D. 

      B-P

    • E. 

      P-C

  • 8. 
    Which of the following represents consumer surplus in the value creation equation, (B-P) + (P-C)?
    • A. 

      B

    • B. 

      P

    • C. 

      C

    • D. 

      B-P

    • E. 

      P-C

  • 9. 
    Which of the following terms is a concept, developed by Michael Porter, which describes the activities within firms and across firms that add value along the way to the ultimate transacted good or service?
    • A. 

      Five forces

    • B. 

      Value creation

    • C. 

      Value chain

    • D. 

      Consumer surplus

    • E. 

      Producer surplus

  • 10. 
    What term describes the process of using market prices of unfinished and semifinished goods to estimate the incremental value-created by distinctive parts of the value chain?
    • A. 

      Value-added analysis

    • B. 

      Value creation analysis

    • C. 

      Market value analysis

    • D. 

      Value benefit analysis

    • E. 

      Value cost drivers

  • 11. 
    Which of the following is a capability?
    • A. 

      Patents and trademarks

    • B. 

      Brand-name reputation

    • C. 

      Installed base

    • D. 

      Organizational culture

    • E. 

      Sourcing skills

  • 12. 
    • A. 

      Brand promotion skills

    • B. 

      Yield management capabilities

    • C. 

      Ability to manage sourcing and procurement functions

    • D. 

      Workers with firm-specific expertise or know-how

    • E. 

      Ability to integrate order-taking, procurement, manufacturing and out-bound logistics