Marketing chapter 13 AA and lecture video, Quiz

If the mass-produced guitar sells 100,000 units annually at $175 per guitar, what is the total revenue? $1,750,000 $6,175,000 $175,000 $17,500,000

$17,500,000

Washburn's fixed costs for producing mass-produced guitars are $500,000. Its variable costs are $150 per guitar. If it prices these guitars at $250, what is the break-even quantity for this line? 2,500 guitars 5,000 guitars 1,000 guitars 1,500 guitars

5,000 guitars

_____ determine(s) consumers' willingness and ability to pay for products and services. Demand curve Demand factors Consumer taste Consumer income The break-even point

Demand factors

How to find final price

Final price = List price - incentives - allowances + extra fees

Which of the following statements is true regarding a movement along a demand curve? It helps determine the marginal revenue a company has to achieve in order to be profitable. It is unaffected by changes in consumer tastes and their income. It describes the relationship between quantity sold and price, assuming other factors are constant. It takes into consideration variation in all the demand factors when plotting the demand curve. It implies the profits of a company have improved significantly.

It describes the relationship between quantity sold and price, assuming other factors are constant.

Which of the following statements best describes market share? -It is the ratio of a firm's sales revenues or unit sales to those of the industry. -It is the difference between a firm's total cost and total revenue. -It is the ratio of a firm's profits to the total cost of production. -It is the sum of the sales revenues of the different products of a firm across their respective markets. -It is the sum of the total cost of production and the sales revenue of all the products of a firm.

It is the ratio of a firm's sales revenues or unit sales to those of the industry.

Which of the following accurately describes total cost? It is the difference between the price and perceived benefits. It is the ratio of profit to total revenue. It is the sum of the fixed costs and variable costs. It is the sum of the list price and incentives and allowances. It is the product of unit price multiplied by the quantity sold.

It is the sum of the fixed costs and variable costs.

_____ is the money or other considerations exchanged for the ownership or use of a product or service. Fee Price Interest Premium Rent

Price

In which of the following cases is a firm likely to set a higher price for its product? The supply of the product is beyond market requirement. There is high price transparency in the market of the product. The firm is facing survival problems. There is low demand for the product in the market. The product is early in its life cycle.

The product is early in its life cycle.

If Washburn Guitars were to lower the price of the Maya Pro DD75 to $2,499 from $2,699, sales of the guitar would increase 30%. This illustrates a product with elastic demand. a shift in the demand curve. a product with inelastic demand. an increase in the unit variable cost.

a product with elastic demand.

Price, consumer tastes, price and availability of similar products, and consumer income are collectively called demand factors. levels of service. measures of success. marketing mix elements. organizational buying criteria.

demand factors.

Which of the following is subtracted from the list price in order to determine the final price in the price equation? total revenue reference value incentives and allowances extra fees profit and total cost

incentives and allowances

For most products, a decrease in price will _______ value. increase have no effect on decrease

increase

With the typical downward sloping demand curve like the one shown for Washburn, as price per unit falls, demand remains unchanged. is minimized. decreases. increases.

increases

Which of the following types of competitive markets is least competitive? oligopoly pure monopoly pure competition monopolistic competition duopoly

pure monopoly

Washburn Guitars makes signature series guitars to enhance the credibility of the Washburn brand. Creating signature series guitars would have a positive effect on all of the following except: brand loyalty unit variable cost brand awareness demand

unit variable cost

Washburn has four distinct price points for its guitar lines: entry, intermediate, professional, and collectors based on the fact that each line has very different production costs, market demand, and sales level. Thus, Washburn has implemented a _______ pricing objective. unit volume survival market share social responsibility

unit volume