Exam IV Application Questions

Ama has a food truck where she sells coffee drinks such as espresso, lattes, and brewed coffee. She travels to various locations around the city to sell coffee beverages. Her daily fixed costs are $500, and her average price of a coffee drink is $5. Assume Ama's variable costs are $0.25 for every coffee drink she sells. How many coffee beverages does Ama need to sell to break even? Round up to the next unit. To calculate Ama's break-even price, use this formula: Break-even is calculated as: fixed costs divided by contribution margin. The contribution margin is the selling price minus variable costs. In other words, first calculate her contribution margin, then divide Ama's fixed costs by that number. a. 106 coffee beverages b. 100 coffee beverages c. 2000 coffee beverages d. 125 coffee beverages

a. 106 coffee beverages

Deon is the owner of a floral shop. He is often frustrated that Kroger and Walmart sell plants and flowers at lower retail prices than he can purchase at wholesale. Deon thinks his wholesale firm may be engaging in price discrimination. Which of the following statements best explains why Deon may pay more for his plants and flowers? a. A firm can charge different prices to different customers if the prices represent manufacturing or quantity discount savings. b. Deon's credit is not as strong as Kroger or Walmart. c. A reduction in price may be necessary to stay even with the competition. d. Price variations are justified if designed to meet fluid product or market conditions such as plants and flowers starting to wilt or die.

a. A firm can charge different prices to different customers if the prices represent manufacturing or quantity discount savings.

Appliance World is a locally owned appliance retailer. It offers a price-match guarantee to customers. Customers simply provide proof of a similar item at a lower price at a competitor, and Appliance World will match the price. Which of the following statements is true about price matching? a. A price matching strategy may result in higher prices. b. A price matching strategy may lead to higher levels of profit margin for the firm. c. A price matching strategy may result in lower levels of store loyalty. d. Price matching is most successful for products in the decline stage of the product life cycle.

a. A price matching strategy may result in higher prices.

The Mayhem series of advertisements for Allstate use humor to break through the clutter of television advertising and capture consumer attention. Which of the following is true about using humor in advertising? a. Humor is more effective in shaping consumer attitudes when they already have a positive image of the advertised brand. b. Humor is more effective in changing consumers' negative attitudes. c. Humor is more likely to decrease market share for a brand. d. Humor in advertising is easy to implement since it is universal.

a. Humor is more effective in shaping consumer attitudes when they already have a positive image of the advertised brand.

Menards, a home improvement supercenter retailer, often uses television advertising. Its advertisements feature the catchy musical jingle "Save big money at Menards" and highlight a specific product such as a pack of light bulbs from GE for a special price of $3.99. Which type of strategy is Menards using to sell its products? a. Push b. Pull c. Persuasive d. Engagement

a. Push

Jorge is building a new home and will be selecting all new kitchen appliances. He and his wife, Mariana, will most likely be influenced by _______ when making their purchase decision since it is a complex decision. a. a salesperson b. sales promotion c. social media d. advertising

a. a salesperson

Patagonia, an outdoor clothing company, has been a vocal supporter of environmental causes. It recently used _______ advertising. It invested $700,000 in a minute-long television advertisement featuring its founder, Yvon Chouinard, discussing the need to protect and cultivate America's public lands and questioning recent policy decisions allowing private companies to develop public lands. a. advocacy b. pioneering c. product d. institutional

a. advocacy

Ayana was watching an episode of The Bachelor with her mom. During one of the commercial breaks, an advertisement for Mr. Clean airs showing a woman watching a muscular and sexy animated Mr. Clean who is cleaning around the house. This advertisement is most likely trying to create _______ in the mind of the consumer. a. attention b. desire c. action d. interest

a. attention

Verizon uses _______ advertising to demonstrate how its service is superior to T-Mobile's by showing a coverage map of the United States and explaining that Verizon customers have fewer dropped calls. a. comparative b. institutional c. competitive d. pioneering

a. comparative

Pranav is considering purchasing a new automobile. He is trying to decide between two brands-Lexus and BMW. Both are high quality, but he's heard that customers prefer Lexus due to its primary _________ that the driver is in a cocoon-like atmosphere and doesn't feel or hear any road noise. a. competitive advantage b. distinctive feature c. primary characteristic d. salient attribute

a. competitive advantage

Hugo is celebrating his thirtieth birthday and decides to create a birthday fundraiser on Facebook. Hugo recently noticed that the National Football League (NFL) is a major sponsor of the Wounded Warrior Project. Since Hugo enjoys watching NFL games, he decides to post a birthday fundraiser on Facebook to support the Wounded Warrior Project. This is an example of a promotion designed to _______ the target audience. a. connect with b. remind c. persuade d. inform

a. connect with

Norwegian Cruise Line is attempting to use _______ in response to a purported mutiny of passengers on its Norwegian Spirit ship who were upset over changes in their voyage itinerary due to bad weather as well as unsanitary conditions on the ship. The company has issued a press release stating, "We understand that it is disheartening when we are unable to call on ports that our guests have been looking forward to visiting. However, we do ask for our guests' patience, cooperation, and understanding that severe weather conditions are an act of God and cannot be controlled, influenced, or remediated by the cruise line." a. crisis management b. sponsorship c. publicity d. product placement

a. crisis management

LUVS is a diaper brand. It recently aired a television commercial showing how differently a mom approaches parenting with her first child compared to her second child. The spot ends by saying that parents of their second child are more likely to choose LUVS. A brief product demonstration is shown to prove that LUVS has superior leakage protection compared to competing brands. By demonstrating how LUVS is the better diaper, it is attempting to stimulate _______ based on the AIDA concept. a. desire b. interest c. action d. attention

a. desire

Maria follows a boutique on Facebook that routinely features live sessions of new releases. The boutique informs customers that there are a limited number of items available. Maria placed an order for an item that was recently featured. According to the communication process, this is known as _______. a. feedback b. encoding c. distraction d. decoding

a. feedback

Alicia is interested in purchasing a set of ear buds to use with her laptop and smartphone. She visits Best Buy and notices that the prices vary from $10 to several hundred dollars. Alicia prefers wireless ear buds and compares the Skullcandy model that costs $90 to a similar pair from Beats by Dre that cost $119. She decides to purchase the Beats brand because she believes it's a higher quality set. In this case, Alicia has been influenced by the _______ effect of price. a. information b. advertising c. sacrifice d. quality

a. information

Old Spice's "Smell like a Man, Man" campaign has revitalized the brand. The first television ad quickly went viral. Old Spice placed print ads using the same wording and talent in targeted publications and supplemented this with a social media presence on Twitter, Instagram, and Facebook. The campaign is an example of _______ marketing communications. a. integrated b. pervasive c. cohesive d. powerful

a. integrated

Ethan recently accepted a sales position with Vector Marketing to represent Cutco. Ethan meets with customers in their homes and typically has several fresh food items such as apples or tomatoes with him. He uses the fresh food items so customers can compare their "favorite" knives with Cutco's knife featuring the Double D edge. Ethan has been surprised how engaged customers become during these activities because they believe that their knives will perform better than the Cutco brand. A customer's level of engagement and participation in the product demonstration is an example of how _______, a step in the AIDA process, is stimulated. a. interest b. desire c. attention d. action

a. interest

Ishara owns a nail salon that sells nail polish, hand lotion, and other beauty aids. She typically doubles the cost of an item to determine her retail price. This practice is called _______. a. keystoning b. base price c. price fixing d. price skimming

a. keystoning

Pasua enjoys going to the movies and especially likes seeing the trailers for movies that are coming out soon. These trailers attempt to gain the interest of theatergoers and build excitement for the upcoming movie. They are considered a form of _______ communication. a. mass b. individual c. interpersonal d. persuasive

a. mass

Aneko is a media buyer with Simantel, an advertising agency. Aneko typically purchases radio and television commercial time slots for local business customers such as restaurants and automobile dealerships. These commercials are examples of _______ media. a. measured b. polarized c. split d. unmeasured

a. measured

Dick's Sporting Goods is developing a campaign for the next Super Bowl. The ads will begin airing during football playoffs, and the primary target audience is active men aged 25 to 60. Dick's has established the advertising _______ of increasing same store sales by 7 percent over the prior year during the weeks of the campaign. a. objective b. selling proposition c. formula d. appeal

a. objective

Noel often watches TV late at night. During SportsCenter on ESPN, Noel saw an advertisement for Meguiar's Hybrid Ceramic Wax. It says, "Spray on. Rinse Off. Protection and durability...beyond conventional car wax. Ceramic made easy." The spot is visually appealing and shows the simplicity of the process and the customer standing back and saying, "Wow!" This is an example of a promotion designed to _______ the target audience. a. persuade b. remind c. connect with d. inform

a. persuade

The Food and Drug Administration has recently approved a new portable heart monitoring device called KardiaMobil. It consists of a device and app that enables consumers to record and review electrocardiograms (ECGs) anywhere, anytime. The device attaches to the back of most iOS and Android devices and communicates wirelessly with the free Kardia app. KardiaMobile uses television advertising to demonstrate how simple and easy the device is and how it helps consumers with health conditions such as atrial fibrillation or Afib. The KardiaMobile is the first to introduce ECG monitoring for the consumer market. Therefore, the television advertisements are classified as _______ advertisements. a. pioneering b. comparative c. advocacy d. institutional

a. pioneering

Carlos is a brand ambassador for Maui Jim, a specialty eyeglass company known for its sunglasses. Carlos typically sets up a company display at professional golf events around the country. He offers customers a free Professional Golf Association branded glasses case with every purchase. The case is an example of a _______, a type of consumer sales promotion. a. premium b. coupon c. rebate d. loyalty incentive

a. premium

The Final Fantasy XV video game features recognizable name-brand products. In the game, the main characters camp with Coleman gear and buy and eat Cup Noodles in bulk. Coleman and Cup Noodles are using _______ to reinforce brand awareness and create favorable attitudes. a. product placement b. publicity c. sponsorship d. crisis management

a. product placement

The Stephen and Ayesha Curry Family Foundation recently announced in a press release that it is creating a $30,000 STEM scholarship for girls. The Foundation has committed to selecting one candidate each year who has demonstrated "aptitude for overcoming adversity, catalyzing change within her community and demonstrating excellence in a STEM-related field of study." The press release is an example of how the Foundation is seeking _______ for its work. a. publicity b. donations c. sponsorship d. product placement

a. publicity

Vanya visited Best Buy to purchase a new laptop computer. She was considering the Apple MacBook Pro since she has an iPhone. The sales representative convinced her to buy the MacBook Air instead. Vanya later learned that the sales representative qualified for a bonus of $500 from Apple for reaching a sales goal of 10 MacBook Air sales within a week. This is an example of _______. a. push money b. a premium c. a rebate d. a coupon

a. push money

Assume you are a marketing consultant who has been hired to assist a jewelry store that is releasing a new product line. The store will be the only location in a 60-mile radius to carry this product line. Since the product is in the introduction stage of its life cycle, the jewelry store should use _______ to build awareness. a. radio or television advertising b. coupons in the newspaper c. personal selling d. a contest to win a free item of jewelry

a. radio or television advertising

ESPN+ was launched in April 2018 and is a multi-sport, direct-to-consumer video service. Its _______ is over 2 million subscribers who are exposed to advertisements at least once a month during the NFL and NBA seasons. a. reach b. frequency c. media mix d. cost per contact

a. reach

Graciela is a licensed massage therapist who owns a business called Stressbusters. She is offering a special "buy two, get one free" promotion by which customers can purchase a certificate for three 60-minute massages for $120. Graciela is implementing a _______ pricing objective. a. sales maximization b. profit maximization c. market share d. target return on investment

a. sales maximization

The Bank of America Chicago Marathon recently announced results from the most recent event. Over 11,000 runners competed and raised an event record $22.7 million through the Chicago Marathon Charity Program in which runners ask friends and family to support their charity's cause with a donation. The Bank of America is using _______ to improve brand awareness and enhance its corporate image. a. sponsorship b. product placement c. crisis management d. publicity

a. sponsorship

Deon has a portable silk-screening business and sells t-shirts at sporting events such as the state track meet. His total fixed costs are $1,500 regardless of the number of shirts he produces. His variable costs are $0.75 for every shirt he makes. If he sells his shirts at $8 each, how many shirts does he need to sell at each event to break even? Round up to the next unit. To calculate Deon's break-even price, use this formula: Break-even is calculated as: fixed costs divided by contribution margin. The contribution margin is the selling price minus variable costs. In other words, first calculate his contribution margin, and then divide Deon's fixed costs by that number. a. 2000 shirts b. 207 shirts c. 189 shirts d. 1125 shirts

b. 207 shirts

Microwave ovens are now in the maturity stage of the product life cycle. Which of the following statements is true about pricing for microwave ovens? a. Prices are generally set high during the maturity stage of a product's life cycle. b. Pricing of microwave ovens will be reduced as competition increases and high-cost firms are eliminated. c. Manufacturers can stimulate demand by offering a price reduction. d. Price may increase due to changes in demand.

b. Pricing of microwave ovens will be reduced as competition increases and high-cost firms are eliminated.

Francesca is a media buyer with an advertising agency. She recently met with a client who was primarily interested in connecting with current and prospective customers using social media channels such as Facebook, Instagram, Pinterest, and Twitter. Which of the following is true about digital advertising? a. Digital advertising is considered personal paid communication. b. Spending on digital advertising now exceeds spending on advertising through traditional media. c. Consumers are more concerned about violations of privacy with traditional advertising than digital media. d. The cost per contact of digital advertising is higher than traditional advertising.

b. Spending on digital advertising now exceeds spending on advertising through traditional media.

Amazon has a series of related advertisements showcasing its Echo product across a variety of channels such as television, social media, and e-mail direct to consumers. Amazon created more than one hundred 10-second spots, each with a funny little question or request for Alexa. This is an example of an _______. a. advertising appeal b. advertising campaign c. advertising objective d. unique selling proposition

b. advertising campaign

The Chevrolet Corvette is a popular sports car. A recent print advertisement stated, "The 2020 Corvette Stingray will debut with a 6.2-liter V-8 engine—codenamed LT2— that produces 495 horsepower and 470 lb-ft of torque." This information is classified as a(n) _______. a. appeal b. attribute c. objective d. benefit

b. attribute

Popeyes Chicken uses the catchy jingle, "Love that chicken from Popeyes" to create a favorable image of the restaurant. Its television advertisements feature photos of hot, juicy chicken and smiling team members ready to serve customers. Popeyes is using _______ advertising to influence consumers to visit the restaurant. a. advocacy b. competitive c. pioneering d. comparative

b. competitive

Aurora was recently shopping at a grocery store and planned to purchase chips for an upcoming tailgate party at her home. She noticed that Frito Lay brand chips were discounted, and the store had placed prominent shelf tags showing that consumers could purchase two packages for $3.00. This is an example of a _______ sales promotion. a. trade b. consumer c. coupon d. rebate

b. consumer

Menard's typically features specific products in its television and newspaper advertising. Recently, it offered a special on General Electric light bulbs. Menards receives funds from General Electric to support the advertising of GE's products. This is known as _______ advertising. a. competitive b. cooperative c. complacent d. pioneering

b. cooperative

Anish was watching a World Cup soccer match with friends. During commercial breaks, Anish would typically talk with others about the game or go get something to eat. Anish was distracted and didn't pay attention to the commercials. According to the communication process, this is known as _______. a. distraction b. noise c. decoding d. encoding

b. noise

Dr. Dre developed a new model of wireless ear buds and introduced them at a relatively low price in order to capture a large share of the market. This is an example of _______. a. price skimming b. penetration pricing c. price fixing d. predatory pricing

b. penetration pricing

If two executives from rival insurance companies met to discuss the policy premiums they would both agree to charge for automobiles, they would be engaging in _______. a. penetration pricing b. price fixing c. price skimming d. predatory pricing

b. price fixing

Longwei enjoys home improvement projects and often shops at Menards. He recently purchased a Hunter brand ceiling fan. At check-out, he was informed there was an offer by which he could send a copy of his receipt to the manufacturer and receive $10 in return. Longwei picked up the form on his way out of the store. This is an example of a _______, a type of promotional allowance. a. cash discount b. rebate c. seasonal discount d. coupon

b. rebate

Riya recently saw an advertisement for the allergy medication Zyrtec. The ad mentioned that Zyrtec provides relief for indoor and outdoor allergies. The advertisement ended with a list of stores where customers could purchase Zyrtec. This is an example of a promotion designed to _______ the target audience. a. inform b. remind c. connect with d. persuade

b. remind

Diego works as an account representative for Red Bull. He partners with restaurants and bars to promote his product. Diego can give bar owners a small counter-top refrigerator to keep their Red Bull product cold when they place an order for five cases of product. Diego also distributes hats and T-shirts featuring the Red Bull logo for special events at local clubs. The hats, shirts, and refrigerator are examples of _______, an element of the promotion mix. a. publicity b. sales promotion c. advertising d. personal selling

b. sales promotion

Chao-xing is consulting with a retail store that sells furniture and appliances. The store uses television and radio advertising to gain consumers' attention and to create awareness of the store. Which element of the promotion mix should Chao-xing recommend the store use to create strong desire and purchase intent among its target market of customers? a. Public relations b. Social media c. Sales promotion d. Personal selling

c. Sales promotion

Nia was recently shopping at Meijer grocery store, and a store employee was offering product samples of a new potato chip flavor. The employee also directed Nia to the location in a store aisle near her where Nia could purchase a bag of the chips for just $2.99. According to the AIDA concept, the store employee was trying to stimulate _______. a. desire b. interest c. action d. attention

c. action

A few years ago, people everywhere were participating in the Ice Bucket Challenge. The challenge promoted awareness of the disease amyotrophic lateral sclerosis (ALS) and encouraged donations to research. People would post a video of themselves dumping a bucket of ice water over their head or another person's head. The hallenge led to $114 million in contributions to ALS research in August of 2014 and over 17 million participated in the challenge around the world. This is an example of _______ media. a. owned b. promotional c. earned d. paid

c. earned

Caterpillar is a well-known manufacturer of earth-moving equipment. The company is also associated with producing high-quality equipment that is durable and long-lasting. In addition, Caterpillar dealers provide excellent customer service by stocking parts to repair equipment and reduce machine downtime. All these factors lead to high customer satisfaction. Based on this information, demand for Caterpillar equipment will likely be classified as _______. a. elastic b. necessary c. inelastic d. premium

c. inelastic

The Mattress Wedge Foam Pillow was recently featured in a 30-minute spot on television. The _______ discussed the attributes and benefits of the foam pillow and included interviews with customers and healthcare professionals who claimed the pillow could reduce issues with acid reflux. a. cooperative advertisement b. comparative advertisement c. infomercial d. objective

c. infomercial

Harry's Razors spends a greater percentage of its promotion budget for advertising and sales promotion than does Gillette, the major category leader in terms of market share. Gillette has learned that sales and market share improvements slow down and eventually decrease regardless of how much money is spent on advertising and promotion. This phenomenon is called the advertising _______. a. dilemma of market share rebound b. law of diminishing returns c. response function d. dilemma of marginal returns

c. response function

Mike Ditka, a famous NFL football coach, was recently featured in a television advertisement for Blu-Emu where he recommends the numbing pain relief cream. This is an example of the _______ executional style of advertising. a. humor b. scientific c. spokesperson/testimonial d. lifestyle

c. spokesperson/testimonial

Hyundai is introducing a new model of its popular mid-sized sedan, the Sonata. The Sonata competes with Toyota's Camry retailing at $25,050, the Mazda 6 selling for $24,720, and the Honda Accord with a retail price of $24,650. Hyundai plans to price the Sonata at $24,600. This is an example of the _____ pricing strategy. a. price fixing b. predatory pricing c. status quo d. price skimming

c. status quo

Elijah owns a tour company near a lake that provides kayak rentals. One of his competitors rents kayaks for $25 per day or $8 per hour. Elijah decided to lower his prices in order to use _______ as his pricing objective and be in line with his competition. a. sales maximization b. market share c. status quo pricing d. profit maximization

c. status quo pricing

Jack is the owner of a car wash. His location offers an automatic car wash option and two self-service car wash bays. He views the car wash business as an investment and strives to control expenses. His goal is to achieve a 20 percent profit on his investment, and he sets his prices in order to achieve this goal. Jack is implementing a _______ pricing objective. a. market share b. profit maximization c. target return on investment d. sales maximization

c. target return on investment

Divit is an organic farmer and sells his fresh produce at weekly farmers' markets in his community. During the summer, he sold watermelons for $3 each. One Saturday, he sold all 50 of the watermelons he had picked. How much revenue did Divit earn from selling his watermelons? a. $50 b. $180 c. $120 d. $150

d. $150

One 30-second advertisement shown during the Super Bowl football game typically costs over $5 million. Due to its high cost, which of the following companies would be most likely to place an advertisement during the Super Bowl? a. South Haven Estates, a retirement center in Florida b. The Garlic Press, a locally owned gift store c. Fiesta Ranchero, a Mexican restaurant chain with 5 locations d. Ben & Jerry's Ice Cream, a nationally distributed product

d. Ben & Jerry's Ice Cream, a nationally distributed product

Misaka is a social media manager for a family-owned restaurant. The owner has shared with her the overall marketing objectives for the restaurant. What should Misaka do with this information? a. Identify potential influencers who could help promote the restaurant b. Allocate the firm's marketing budget to specific social media outlets c. Determine which social media outlets are most appropriate for the restaurant d. Develop a social media promotional plan consistent with the overall objectives

d. Develop a social media promotional plan consistent with the overall objectives

Miguel's favorite beverage is Pepsi, which normally costs $1.39 for a two-liter bottle. Occasionally, his local grocery store offers three 2-liter bottles of Pepsi for $3. Due to the savings, Miguel stocks up and buys six bottles since he has room to store them in his pantry. This is an example of the _______ concept. a. supply b. status quo c. quality d. demand

d. demand

Leon is planning a trip to attend alumni weekend at the university at which he received his degree. He was shocked to learn that hotel rooms for alumni weekend are now priced at least three times the typical cost. He spoke with a customer service agent who told him that the hotel uses a computer algorithm that changes the price of a room based on room availability and the number of inquiries the hotel is receiving about rooms. This is an example of _______ pricing. a. flexible b. value-based c. predatory d. dynamic

d. dynamic

Misaki is an account executive for Canon Business Solutions. She has a company vehicle and travels to meet with customers in her market territory, which covers a 120-mile radius of her home office. She drives approximately 2,000 miles per month and uses premium gasoline. The price of gasoline has no impact on the number of miles Misaki travels for work. Therefore, gasoline for Misaki is classified as having _______ demand. a. premium b. elastic c. necessary d. inelastic

d. inelastic

Taco Bell recently announced it was debuting a new menu item. Commercials for the new product feature the item and state the product will be available in stores at the end of the month. The primary goal of this promotional message is to _______ the target audience. a. connect b. persuade c. remind d. inform

d. inform

The Pork Producers Association of America often utilizes _______ advertising to increase the consumption of pork products. Outdoor boards, magazines, and television advertisements in the past used the slogan, "Pork. The other white meat." Today, the ads include new, original music with the song 'Make it Like This!' and showcase creative, delicious pork dishes. a. product b. advocacy c. pioneering d. institutional

d. institutional

Penzey's, a spice company headquartered in Wisconsin, predominantly utilizes _______ media such as Facebook and Instagram. These apps are some of the fastest-growing social media and can reach a narrow target audience with a relatively short lead time to create messages. a. outdoor b. radio c. magazine d. internet

d. internet

Huilang is an account manager for a radio station. She typically uses _______ communication by meeting with small business owners at their places of business. a. mass b. indirect c. influential d. interpersonal

d. interpersonal

Zappos is an online retailer known for its shoes and apparel. Zappos contracts with Facebook and Instagram to feature banner advertisements. These advertisements often appear to customers who have recently visited the Zappos website. This is an example of _______ media. a. earned b. promotional c. owned d. paid

d. paid

Verizon recently launched a campaign giving steep discounts on the new iPhone to new customers. In addition, new users will receive unlimited data plans. This is an example of a promotion designed to _______ the target audience. a. connect with b. inform c. remind d. persuade

d. persuade

Uber has been accused of using _______ pricing in which it charges fares at a very low price with the intent of driving competitors out of business or out of a market. a. price fixing b. price skimming c. penetration pricing d. predatory pricing

d. predatory pricing

Dhruv is shopping at Men's Wearhouse for a new suit. The salesperson shows him that there are basically three levels of quality based on the material and wool content. The top-of-the line suits retail for $1500 each and are ordered according to the customer's measurements. The medium-level suits retail for $750 each, and the base level suits are $450 each. Men's Wearhouse is using a _______ pricing approach. a. bait pricing b. price bundling c. flexible pricing d. price lining

d. price lining

The latest model of the Google Pixel smartphone is introduced at a relatively high price compared to competing products. Previous editions of the Google Pixel phone are then priced at a discount. This is an example of a pricing strategy called _______. a. price fixing b. predatory pricing c. penetration pricing d. price skimming

d. price skimming

Zari works at a car dealership. She specializes in used vehicles. She receives an inventory report that lists the cost of each vehicle and the asking price. If Zari sells a car at an amount more than the vehicle cost the dealership to acquire, she has earned a _______. a. bonus b. commission c. promotion d. profit

d. profit

The Peninsula Hotels group is one of the world's leading hotel chains. It operates prestigious luxury properties in ten major cities across the globe such as Hong Kong, New York, Chicago, Beverly Hills, and Paris. The hotel is known for luxurious amenities and exceptional service. Room rates vary from $1,100 per night for a room with a king bed to over $5,000 per night for a two-bedroom suite. The Peninsula Hotels group is most likely implementing a _______ pricing objective. a. target return on investment b. sales maximization c. market share d. profit maximization

d. profit maximization

Victor went to Home Depot to buy ceiling paint for a home remodeling project. He noticed that the Dutch Boy brand of paint was offering a sales promotion in which customers would receive $2.00 in cash with every gallon of paint purchased through the end of the year. Customers simply needed to send a copy of the sales receipt to the company to receive their cash. This is an example of a _______, a type of consumer sales promotion. a. coupon b. loyalty incentive c. premium d. rebate

d. rebate

Zari lives in Orlando, Florida and often uses Uber. She's always surprised how often the fares change and notices that there can be large differences in Uber's prices. She understands that Uber raises fares when more people are requesting rides. This phenomenon is known as _______ pricing. a. flexible b. predatory c. value-based d. surge

d. surge

Mtn Dew is a major sponsor of NASCAR driver Chase Elliott and his Chevrolet Camaro ZL1 team. Chase Elliott often wears a Mtn Dew hat, and his number 9 vehicle has a prominent Mtn Dew logo. Mtn Dew sponsorship of Chase Elliott is an example of _______ media. a. polarized b. tribal c. measured d. unmeasured

d. unmeasured