ch 19 marketing
Which of the following products is most likely to have an inverted C-shaped demand curve?
Eternity perfume
Profits for a firm are computed as follows: Profits = Total Revenue - Fixed Costs.
F
Which factor is least likely to affect pricing decisions?
Shifting stock values
A customer looking for the lowest price on a mattress without concern for the quality of the mattress or the status gained by buying and using a certain brand is a price-conscious customer.
T
Costs are a major issue when establishing price
T
Factors affecting pricing decisions can include demand, distribution, and the way in which the product is promoted
T
For most products, the quantity demanded goes up as the price goes down.
T
Nonprice competition allows a company to increase its brand's unit sales through means other than changing the brand's price.
T
Price is the most easily adjusted ingredient in the marketing mix.
T
Price is the value that is exchanged for products in a marketing transaction.
T
The purpose of the pricing concept is to quantify and express the value of items in a market exchange.
T
At what point does a firm maximize profit?
The point at which marginal cost equals marginal revenue
If Norwegian Cruise Lines increased the price of its seven-day cruise package by 10% and, as a result, experienced a 20% decline in customer bookings, Norwegian's demand would be
elastic
The General Auto Insurance advertises its automobile insurance as "For a great low rate you can get online, go to The General and save some time!" General is engaging in
price competition
At the breakeven point,
the money a company brings in from selling products equals the amount spent producing the products
If a product has an inelastic demand and the manufacturer raises its price
total revenue will increase