Marketing 10

If you are selling a product whose design is extremely difficult to copy, your pricing strategy would be _________________

Skimming pricing

If you observe an increase in demand for Samsung phones in response to a major price rise in IPhones, this is a case of_______________________ a. Elastic demand for Iphones b. Cross Elasticity of substitute products c. Inelastic demand for Iphones d. Elastic demand for Samsung phones e. Inelastic demand for Samsung phones

B. Cross Elasticity of substitute products

Which of the following is a typical example of a Fixed Cost? a. Wages of workers b. Rent c. Utility costs d. Raw materials e. MRO products

B. Rent

The difference between loss leader pricing and bait and switch is ________________________ a. With loss leader pricing, the loss leader is available in the store b. With loss leader pricing your objective is to eventually close the store c. Loss leader pricing is illegal d. Loss leader pricing is unethical e. None of the above

A. With loss leader pricing, the loss leader is available in the store

If the percentage change in the quantity demanded as a proportion of percentage change in price is greater than one, demand is said to be __________________

Elastic

On evaluation of your breakeven chart, if you consider laying off some of your salaried staff, this would have the effect of _______________ a. No effect on breakeven point b. Raising the breakeven point c. Reducing your variable costs d. Bringing down your breakeven point e. No effect on fixed costs

D. Bringing down your breakeven point

The purpose of yield management pricing is to _________________________ a. Sell on a no profit no loss basis b. Determine the breakeven point c. Reduce costs as much as possible d. Maximize revenue from a limited capacity e. None of the above

D. Maximize revenue from a limited capacity

LinkedIn offers their product free to users but for a subscription per month you can upgrade to a more premium service. LinkedIn pricing is an example of ___________

Freemium pricing

Raising prices of products satisfies which pricing objective?

Profit objective

The process of working backwards from a price to determine your investment in the business is known as ______________

Target Costing