Marketing Management - Iacobucci - Ch 9
If a firm prices its brand too low, the volume of sales will pick up. a. True b. False
A
In the marketing framework, the change in a product's ________ is easily measurable when compared to the other Ps. a. price b. promotion c. features d. place
A
Price sensitivity is greater when the product is a ________. a. luxury good b. necessity c. consumer durable good d. complementary good
A
Which of the following explains the difference between elastic and inelastic demand? a. Elastic demand means product demand varies with a change in the product's price, while inelastic demand means the product demand remains static even with a change in the product's price. b. Elastic demand relates to intangible services, while inelastic demand relates to tangible goods. c. Elastic demand relates to the internal projects of a firm, while inelastic demand relates to the external projects of a firm. d. Elastic demand means the product demand depends on the segmentation process of a firm, while inelastic demand means the product demand depends on the targeting process of a firm.
A
A two-part tariff is used in linear pricing. a. True b. False
B
An auction uses a static pricing strategy. a. True b. False
B
If a firm's variable costs are high relative to its fixed costs, the sales volume should be maximized. a. True b. False
B
If the unit cost of a product is $4 and the intended rate of return is 25%, determine the covering cost of the product using the cost-plus pricing model? a. $4.73 b. $5.33 c. $14.00 d. $4.23
B
In a(n) ________ study , customers are shown products with various combinations of features and attributes, with price being one of them. a. unit-margin b. conjoint c. break-even d. beta test
B
In the context of high pricing strategies for products, the equation used to determine the percent change in sales for a stable price sensitive product is: a. (Price sensitivity * Original Price) / (New Price - Original Price) b. Price sensitivity * ( New price - Original price) / Original price c. ( New Price - Original Price ) / (Price sensitivity * Original price ) d. Original Price * (New price - Original price ) / Price sensitivity
B
In the context of pricing, brand loyal customers are elastic in nature. a. True b. False
B
Price sensitivity should decrease when price information is easily available to customers to compare across competing brands. a. True b. False
B
A ________ is a means of figuring out how many units a manufacturer has to sell before recovering his costs. a. conjoint analysis b. Vals test c. breakeven analysis d. beta test
C
If the price of a product goes up, which of the following drives the demand for the same product? a. Large number of B2B substitute products b. Small number of complementary products c. Small number of substitute products d. Large number of complementary products
C
Dominic Inc., a pretzel manufacturer, introduced a new flavor of pretzels in the market. The fixed manufacturing costs came up to $5,000, and the cost of packaging materials for a box came up to $15. If a box of pretzels is priced at $25, what is the breakeven point of Dominic Inc.? a. 50 boxes b. 250 boxes c. 200 boxes d. 500 boxes
D
