Marketing Exam 2

a manufacturer has fixed costs of 100,000, a variable cost of $10 per unit of output, and break-even volume of 50,000 units. What should the manufacturer's unit cost be in order to break even?

$12

There was a 35% in demand for a product after the seller decreased its price by 14%. Therefore, the price elasticity of demand is --.

-2.5

cost plus pricing

Adding a standard markup to the cost of the product

market-skimming pricing

Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the higher price; the company makes fewer but more profitable sales.

which of the following is true with regard to pure competition: a. under pure competition, no single buyer or seller has much effect on the going market price. b. in a purely competitive market, marketing research is of utmost importance c. in a purely competitive market, product development is the focus of most firms d. under pure competition, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price e. under pure competition, the market consists of only a few larger sellers

a.

markup pricing

adding to the cost of the product a predetermined percentage of that cost

Target return pricing is a variation of which of the following cost-oriented pricing approaches

break-even pricing

using -- pricing, companies are able to turn their trash into cash, allowing them to make the price of their main product more competitive

by-product

Multiprint, a printer manufacturing firm, sells ink cartridges for each of its specific models. Only Multiprint cartridges are compatible with Multiprint printers, and no two of the firm's models share the same specifications. What type of pricing does Multiprint use?

captive product pricing

which of the following price adjustments strategies offers a price reduction to buyers who pay their bills promptly

cash discount

which of the following is true of conventional distribution channels

channel members seek to maximize their own profits

product bundle pricing

combining several products and offering the bundle at a reduced price

which of the following is true of FOB-origin pricing? a. it is a strategy in which the company charges the same price plus freight to all customers b. it is a costly option for customers who are located near the company c. it charges all customers the freight cost from a base city to the customer location d. it is an expensive alternative for customer in distant locations e. it is a strategy in which the seller absorbs all or part of the freight charges

d

The bookworm began delivering books directly to customers through mail instead of selling through brick and mortar companies. This is an example of ---.

disintermediation

in segmented pricing, the difference in prices is based on differences in costs

false

conflict which occurs among firms at the same level of the marketing channel is know as -- conflict

horizontal

Companies which set a low price for a new product in order to attract a large number of buyers and a large market share are using the ________ strategy.

market-penetration pricing

a -- is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user

marketing channel

Under --, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

monopolistic competition

movie giants offers DVD rentals through its web site. It also offers DVD rentals via star city stores. This is an example of a(n) -- distribution system.

multichannel

value-based pricing

offering just he right combination of quality and good service at a fair price

Price elasticity of demand is represented by -- divided by --.

percentage change in quantity demanded; percent change in price

market-penetration pricing

setting a low price for a new product in order to attract a large number of buyers and a larger market share

captive product pricing

setting a price for products that must be used along with a main product, such as blades for a razor and games for a video-game console

product line pricing

setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices

optional product pricing

the pricing of optional or accessory products along with a main product

an -- marketing system consists of producers, wholesalers, and retailers acting as a unified system

vertical