Midterm Exam: Questions On Marketing! Trivia Quiz

The term "price" refers to the value of a product or service, typically expressed in terms of a currency unit such as peso or centavo. It represents the amount of money that a buyer needs to pay in order to obtain the product or service. In other words, it is the cost or monetary value assigned to the item being sold.

The formula for calculating the selling price is "Selling price = Cost of Manufacturing + Markup." This means that in order to determine the selling price of a product, you need to add the cost of manufacturing to the markup. The cost of manufacturing represents the expenses incurred in producing the item, while the markup is the additional amount added to the cost to cover the desired profit margin. By adding these two components together, you can determine the appropriate selling price for the product.

The selling price of the car can be calculated by adding the cost of production and the markup amount. The markup amount is calculated by multiplying the cost of production by the markup rate (20%). Therefore, the markup amount is 140,000 * 0.20 = 28,000. Adding the cost of production and the markup amount gives us the selling price: 140,000 + 28,000 = 168,000. However, since the given answer options are 576,000 and 576000, it seems that there may be a mistake in the question or the answer options.

Risk is defined as exposure to losses, hazard, or danger. It refers to the potential for harm or negative consequences that may arise from a particular action or decision. In various contexts, risk can be associated with financial investments, health and safety, or any situation where there is uncertainty and the possibility of adverse outcomes. By understanding and managing risks, individuals and organizations can make informed choices and take appropriate measures to minimize or mitigate potential harm.

In fixed pricing, goods are sold to customers at the same price, regardless of any fluctuations in the market or individual customer preferences. This pricing strategy is commonly used for products that have a consistent cost of production and do not require frequent adjustments in pricing. It ensures that all customers are charged the same price, promoting fairness and transparency in the pricing process.

It is important for a seller to factor in the cost of shipping when determining the pricing of their products. This is because shipping costs can significantly impact the overall profitability of the business. By including shipping costs in the pricing, the seller can ensure that they are covering their expenses and maintaining a healthy profit margin. Ignoring shipping costs can lead to underpricing or overpricing of products, which can negatively affect sales and profitability. Therefore, considering the cost of shipping is crucial for any seller.

Telephone Long Distance services usually price their call services by Zone pricing. Zone pricing is a pricing strategy where different geographical areas or zones are assigned different rates for long-distance calls. This allows the service provider to charge higher rates for calls made to farther or more remote areas, while offering lower rates for calls made within the same zone or closer regions. This pricing method takes into account the distance between the calling and receiving locations, ensuring that customers are charged accordingly based on the distance of the call.

The statement is false because the salaries of laborers, workers, and support staff do play a significant role in pricing. The cost of labor is one of the key components in determining the overall production cost, which in turn affects the pricing of the product. Higher labor costs would lead to higher production costs and ultimately result in higher product prices. Therefore, the salaries of laborers, workers, and support staff do impact the pricing of a product.

The Price Tag Law refers to a regulation that mandates the use of price tags or labels on all items available for sale at retail. This law ensures that consumers are provided with clear and transparent pricing information, allowing them to make informed purchasing decisions. By requiring price tags or labels to be affixed on all articles for commerce, this law promotes fair and honest business practices and protects consumers from potential price manipulation or confusion. It does not necessarily involve displaying discount amounts or helping sellers know the price of their products.

The company is experiencing psychological and social risk. This is because Pedro publicized the issue of finding a cockroach in the can of sardines, which has negatively impacted the company's reputation and public perception. The incident has created a psychological risk as it may lead to a loss of consumer trust and confidence in the brand. Additionally, the negative publicity can also result in social risk, as customers may share their negative experiences with others, potentially leading to a decline in sales and market share.

A branded product charges a higher price in order to maximize profit. This means that the company aims to generate as much profit as possible by setting the price of their product at a level that allows them to cover their costs and generate a surplus. By charging a higher price, the company can increase their profit margin and potentially earn more revenue. This strategy is commonly used by companies that have established a strong brand image and can command a premium price for their products.

A discount is a reduction in price given to the buyer as an incentive for prompt payment of their bill. It is a common practice in business transactions to offer discounts to encourage customers to pay quickly and help maintain a healthy cash flow for the seller. The discount is usually a percentage of the total bill amount and can vary depending on the terms and conditions set by the seller.

The pricing policy referred to in the question is odd pricing. Odd pricing is a marketing strategy where prices are set just below a round number, like $49.99 instead of $50. This is done to create the perception of a lower price and to make the product or service seem more affordable. Ricky Reyes Hair Salons using a price of $49.99 suggests that they are employing odd pricing to attract customers by making their haircuts appear slightly cheaper than if they were priced at $50.

Markup refers to the additional amount added to the cost price of a product in order to determine its selling price. It is the difference between the selling price and the cost price. Markup is commonly used in business to ensure that the selling price covers the cost of production and includes a profit margin. By adding a markup, businesses are able to generate revenue and cover expenses such as overhead costs, labor, and other expenses associated with producing and selling the product.

Some companies choose to use skim pricing instead of penetration pricing because they believe that some buyers associate higher prices with better quality. By setting a high initial price, these companies can create a perception of exclusivity and premium value for their products or services. This strategy allows them to target a specific segment of customers who are willing to pay a premium price for perceived higher quality.

This answer suggests that there are managers who prioritize the volume of sales over profit. These managers may focus on increasing the number of sales, even if it means sacrificing profit margins. Their main goal is to generate high sales figures, potentially to meet targets or gain market share, rather than maximizing profitability.

The cost of manufacturing per unit can be calculated by dividing the selling price by 1 plus the markup percentage. In this case, the selling price is 329.00 and the markup is 30%. So, the cost of manufacturing per unit would be 329.00 divided by 1.30, which equals 319.13.

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Physical risks refer to potential dangers or hazards that can cause harm or damage to people, property, or the environment. Examples of physical risks include natural disasters such as typhoons, earthquakes, and floods. These events can result in physical damage, injuries, and even loss of life. Poor public relations and consumer preferences, on the other hand, are not physical risks as they do not pose direct physical harm or danger.

The original selling price of the item can be calculated by adding the discount amount to the discounted price. In this case, the discount is 20% of the original price. So, the discount amount is 1800 * 0.20 = 360. By adding this discount amount to the discounted price, we can find the original selling price: 1800 + 360 = 2160.

Hedging is the act of entering into a contract to buy or sell a product in the future market. It is a risk management strategy used to protect against potential losses by offsetting the impact of price fluctuations. By entering into a hedge, individuals or businesses can secure a fixed price for a future transaction, reducing uncertainty and minimizing the potential for financial loss.

Free on Board (FOB) is a trade term that indicates that the buyer is responsible for paying the cost of transportation. Under FOB, the seller is responsible for delivering the goods to a specified location, usually the port of shipment, and once the goods are loaded onto the transport vessel, the buyer becomes responsible for any further transportation costs. This term is commonly used in international trade to determine the point at which the buyer takes ownership of the goods and assumes the risk of loss or damage during transportation.

To calculate the rate of markup of a selling price, you need to find the percentage of the markup amount in relation to the selling price. This can be done by multiplying the markup amount by 100 to convert it into a percentage, and then dividing it by the selling price. This calculation will give you the rate of markup as a percentage of the selling price.

Telephone long distance call services pricing is based on zone pricing because charges depend on the area the call was made. Different areas have different rates for long distance calls, so it makes sense to categorize them into zones based on geographical proximity or other factors. Additionally, every country has different charge rates for long distance calls, so zone pricing allows for more accurate and fair pricing based on the specific country the call is being made to.

Self insurance refers to a practice where a company assumes the risk of potential losses by setting aside money on a regular basis. This means that instead of purchasing insurance from an external provider, the company relies on its own funds to cover any losses that may occur. By self-insuring, the company takes on the responsibility of managing and covering its own risks, which can be more cost-effective in certain situations.

The objective of achieving a specific level of profit, in this case, 4 million a month, is known as target return. This indicates that the drug company has set a specific goal for its sales representatives to reach in terms of profitability. The focus is on achieving a certain level of return on investment rather than simply maximizing profits or setting a profit target without considering the investment made.

In pricing, several factors need to be considered. The cost price is the amount paid to acquire a product, which includes the cost of production and ordering. The cost of production includes expenses such as raw materials, labor, and overhead costs. The cost of ordering refers to the expenses associated with placing and receiving an order, such as shipping and handling fees. Markup is the amount added to the cost price to determine the selling price and includes the desired profit margin. Considering these factors helps businesses determine an appropriate pricing strategy to ensure profitability while remaining competitive in the market.

The risks that XXX Sports Shoes is experiencing are due to the development of new products, government laws, and fluctuations in prices and price levels. The development of new products by competitors with lower prices and the same quality poses a risk to XXX's market lead. The change in government regulations and the increase in taxes also pose a risk as it can affect the company's profitability and operations. Additionally, fluctuations in prices and price levels can impact XXX's sales and revenue.

Managers will decide to use Sales Oriented rather than Profit Oriented when the cost of materials does not increase. This suggests that when the cost of materials remains stable, managers prioritize increasing sales over maximizing profits. This decision could be driven by the belief that higher sales volume can compensate for lower profit margins, or that gaining market share is more important than immediate profitability.

Skim Pricing and Penetration Pricing are both pricing strategies that are used in marketing, not psychological pricing policies. Skim Pricing involves setting a high initial price for a new product and then gradually lowering it over time, while Penetration Pricing involves setting a low initial price to attract customers and gain market share. On the other hand, Fixed Pricing and Variable Pricing are examples of psychological pricing policies, where the price is set based on psychological factors such as perception, consumer behavior, and pricing strategies.

Ultimate consumers, manufacturers, and middlemen are all types of buyers in the market. Ultimate consumers refer to individuals or households who purchase products or services for personal use. Manufacturers are buyers who acquire raw materials and components to produce goods. Middlemen, on the other hand, act as intermediaries between manufacturers and ultimate consumers, facilitating the distribution and sale of products. These three types of buyers play crucial roles in the buying process and contribute to the functioning of the market.

The correct answer is variable pricing. This pricing policy is used because most people in urban areas have high income compared to rural areas. Variable pricing allows businesses to adjust their prices based on the purchasing power of their target market. In high-end cities like Manila and Cebu, where the cost of living is generally higher and people have higher incomes, businesses can charge higher prices. On the other hand, in rural areas where incomes are lower, businesses may need to lower their prices to attract customers.

False. When a seller quotes on Free on Board (FOB) factory, it means that the seller is responsible for delivering the goods to the specified location and paying for the transportation costs. The buyer becomes responsible for the goods once they are loaded onto the transportation vessel.

Price tags serve multiple purposes. They are used to provide buyers with adequate information and guide them in making purchasing decisions. They also enable buyers to compare the quality and prices of different items, helping them make informed choices. Additionally, any store selling items without price tags may be reported to the Department of Trade and Industry (DTI) as it is a violation of consumer rights.

The aim of penetration pricing is to target the mass market immediately and gain sales volume. This strategy involves setting a low initial price for a product to attract a large number of customers and gain market share. By offering a lower price compared to competitors, the company aims to quickly penetrate the market and increase sales volume. While the strategy may result in lower profit margins initially, it can help establish a strong customer base and create brand loyalty, leading to long-term profitability.