Marketing Quiz

4) A company that intends to maintain low-end pricing policies to make the market unattractive for its competitors is using which of the following pricing objectives in its price planning? A) Sales B) Profit C) Break-even D) Competitive effect E) Customer satisfaction

Competitive effect

5) When Home Depot stores entered the Canadian market, there were already stores providing similar services and products. To get people to try Home Depot, the chain deliberately sold merchandise below the price that the Canadians were used to. What type of pricing objective did Home Depot use? A) Market share B) Profit C) Competitive effect D) Customer satisfaction E) Image enhancement

Competitive effect

14) How is the price elasticity of demand calculated? A) Averaging previous demand levels with new demand levels B) Dividing percentage change in quantity demanded by percentage change in price C) Dividing the new quantity demanded by the percentage change in price times 100 D) Multiplying the percentage change in quantity demanded by the percentage change in price E) Dividing the percentage change in price by the percentage change in quantity demanded

Dividing percentage change in quantity demanded by percentage change in price

3) Which of the following is NOT a type of pricing objective? A) Elasticity B) Market share C) Profit D) Competitive effect E) Image enhancement

Elasticity

12) What is the first step a marketer should take to estimate a product's potential sales? A) Determine maximum production levels B) Conduct a survey of buyers' intentions C) Estimate total demand for the product in the market D) Determine how to expand market share E) Predict the company's market share

Estimate total demand for the product in the market

6) Exchanges of nonmonetary value do not involve a price. True______ False____

False

16) ________ do not vary with the number of units produced. A) Liquidity costs B) Fixed costs C) Variable costs D) Marginal costs E) Everyday costs

Fixed costs

10) According to the law of demand, which of the following is true? A) If prices decrease, customers will buy more. B) Customers are not aware of small price changes. C) The effect on demand from changes in price cannot be accurately predicted. D) Demand equals supply. E) If prices increase, customers will buy more.

If prices decrease, customers will buy more

11) Why are prestige products often an exception to the law of demand? A) The demand curve for prestige products slopes downward and to the right. B) Increasing the price of prestige products can make them seem more desirable. C) Demand for prestige products 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 products.

Increasing the price of prestige products can make them seem more desirable

9) 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.

It shows the relationship between product demand and product price

17) Each member of a channel of distribution adds a ________ to create the price at which they will sell the product. A) Break-even point B) Percentage of sales C) List price D) Markup E) Contribution per unit

Markup

2) The value of something we give up in order to obtain something else is referred to as a(n) ________. A) Transformation cost B) Opportunity cost C) Exchange D) Variable cost E) Marginal cost

Opportunity Cost

1) Which of the following statements about price is true? A) Pricing is the least important marketing mix element. B) Price is always a monetary value. C) Price can mean exchange of nonmonetary goods or services. D) Most consumers believe price has little influence on their purchase decisions. E) Pricing is unaffected by changes in the business cycle.

Price can mean exchange of nonmonetary goods or services

13) Which of the following is a measure of customers' sensitivity to changes in price? A) Liquidity ratio B) Demand sensitivity C) Price elasticity of demand D) Marginal analysis E) Basing-point

Price elasticity of demand

7) The first step in planning how to price a product is to develop pricing objectives. True_____ False____

True

8) Unlike other currencies, bitcoin first issues was not controlled by a single government entity, such as the U.S. Treasury. True______ False_____

True

15) ________ are the per-unit costs of production that will fluctuate depending on how many units or individual products a firm produces. A) Fixed costs B) Variable costs C) Average fixed costs D) Marginal costs E) Everyday costs

Variable costs