MKT Ch 12

79. Which of the following is high in search properties? A. Clothing B. TV repair C. Legal services D. Auto repair E. Medical diagnosis

A. Clothing

201. (p. 333) Which of the following statements about price elasticity of demand is most accurate? A. Price elasticity with inelastic demand is less than one. B. The more substitutes a product has, the less likely it is to be price elastic. C. Unitary demand represents the relationship between the cash outlay necessary to purchase a product, relative to a person's disposable income. D. With inelastic demand, reducing price will result in an increase of total revenue. E. With inelastic demand, reducing price will result in an increase in total revenue though not necessarily an increase in profit.

A. Price elasticity with inelastic demand is less than one.

171. (p. 330) A shift in the demand curve is illustrated by which of the following? A. When prices remain the same, there is an increase or decrease in demand. B. When prices remain the same, there is a significant decrease in demand. C. As the price is raised, the quantity demanded increases, assuming all else stays the same. D. As the price is lowered, the quantity demanded increases, assuming all else stays the same. E. Movement along the curve rather than a shift of the curve indicates that some significant event has taken place outside the organization that has affected demand.

A. When prices remain the same, there is an increase or decrease in demand.

155. (p. 330) The maximum quantity of products consumers will buy at given price is shown by A. a demand curve. B. a price constraint. C. a break-even point. D. price lining. E. a marginal revenue curve.

A. a demand curve.

237. (p. 336) A technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output is referred to as __________. A. break-even analysis B. marginal analysis C. sensitivity analysis D. market analysis E. productivity analysis

A. break-even analysis

159. (p. 330) When estimating demand, price is not the only factor to be considered. Three other elements include consumer tastes, price and availability of similar products, and A. consumer income. B. consumer psychographics. C. current economic stressors. D. current political agendas. E. green substitutes.

A. consumer income.

126. Pure competition is the competitive situation in which A. many sellers follow market price for identical, commodity products. B. in which one seller sets the price for a unique product. C. the few sellers are sensitive to one another's prices. D. many sellers compete on non-price factors. E. one or few sellers compete solely on nonprice factors.

A. many sellers follow market price for identical, commodity products.

20. The ratio of __________to price is referred to as value. A. perceived benefits B. prestige value C. value-added pricing D. perceived revenue E. perceived costs

A. perceived benefits

21. The ratio of perceived benefits to __________ is referred to as value. A. price B. prestige value C. value-added pricing D. value analysis E. perceived costs

A. price

205. (p. 333) Recently much of the western U.S. experienced a drought condition. For example in Denver, water usage was restricted. Yet even though most people used less water, the price of water did not drop. In fact, when the drought was over, the water company actually raised water prices. Still, residents of Denver did not use less water. Water is A. price inelastic. B. price elastic. C. price sensitive. D. price insensitive. E. unitary elastic.

A. price inelastic

140. (p. 328) The marketing director for a(n) __________ is most likely to believe, "The purpose of advertising is to increase demand for the product class." A. pure monopoly B. oligopoly C. monopolistic competitor D. pure competitor E. competitive oligopoly

A. pure monopoly

136. (p. 328) The competitive market situation in which one seller sets the price for a unique product is referred to as A. pure monopoly. B. oligopoly. C. monopolistic competition. D. pure competition. E. monopolistic oligopoly.

A. pure monopoly.

198. (p. 333) All things being equal, if a firm finds the demand for one of its products is inelastic, it can increase its total revenues by A. raising its price. B. lowering its price. C. reducing fixed costs. D. reducing variable costs. E. reducing both fixed and variable costs.

A. raising its price.

152. (p. 330) Demand curve refers to a graph A. relating the quantity sold and price, which shows the maximum number of units that will be sold at a given price. B. relating the quantity sold and price, which shows the minimum number of units that must be sold to break even. C. relating the quantity sold and price, which shows the minimum number of units that must be sold in order to make a profit. D. relating total production costs to various price points in order to determine how many units must be sold in order to realize a predetermined profit. E. relating total product costs to advertising expenditures in order to determine how to spend the least amount of money while creating the greatest customer demand.

A. relating the quantity sold and price, which shows the maximum number of units that will be sold at a given price.

78. Characteristics of tangible goods, such as color, size, and style are considered __________ properties. A. search B. form C. experience D. credence E. performance

A. search

19. To help consumers assess and compare services, marketers try to make them __________ or show the benefits of the service. A. tangible B. adaptable C. consistent D. timely E. measurable

A. tangible

57. Services can be classified by A. their method of delivery. B. their use of idle capacity time. C. the nature of their ownership. D. their location on perceptual maps. E. organizational reach.

A. their method of delivery.

58. Services can be classified in several ways, according to whether they are delivered by people or equipment, whether they are for profit or nonprofit, and A. whether or not they are government sponsored. B. whether they are a national organization or a global organization. C. they are privately owned or publically owned. D. whether or not they use independent contractors. E. whether they are owned by individuals or corporations.

A. whether or not they are government sponsored.

156. (p. 330) Which of the following statements about the factors that influence demand is true? A. As the availability of close substitutes increases, the demand for a product increases. B. As real consumer income increases, demand for a product increases. C. As the price of close substitutes increases, demand for a product declines. D. Changing consumer tastes have little impact on demand for a product. E. As real consumer income decreases, demand for a product increases.

B. As real consumer income increases, demand for a product increases.

225. (p. 336) Which of the following is a typical example of a fixed cost? A. Taxes B. Building rental expense C. Raw materials D. Sales commissions E. Hourly wages

B. Building rental expense

88. Services provided by specialized professionals such as medical diagnoses and legal services have certain properties or characteristics that the consumer may find impossible to evaluate even after purchase or consumption. What are these properties called? A. Adherence properties B. Credence properties C. Capacity properties D. Contract properties E. Sustainable properties

B. Credence properties

134. (p. 328) Using Figure 13-3, how much price competition is most likely available for small coffee shops? A. There is almost none; the market sets the price. B. There is some competition within a range of prices. C. There is generally a price leader that sets the price. D. Starbucks sets the price and all other coffee shops follow its lead. E. Price is set by the seller, but regulated by the government.

B. There is some competition within a range of prices.

81. Which of the following is high in experience properties? A. Clothing B. Vacation C. Legal services D. Auto repair E. Medical diagnosis

B. Vacation

208. (p. 333) Elastic demand exists when a(n) A. a small percentage decrease in price produces a smaller percentage increase in quantity demanded and total revenue falls. B. a small percentage decrease in price produces a larger percentage increase in quantity demanded and total revenue increases. C. an increase in price causes a larger increase in quantity demanded and total revenue falls to zero. D. the quantity demanded remains the same regardless of level of price and total revenue is unchanged. E. a small percentage decrease in price produces a smaller percentage decrease in quantity demanded and total revenue increases.

B. a small percentage decrease in price produces a larger percentage increase in quantity demanded and total revenue increases.

Andrea Arena is the owner of 2 Places at 1 Time, a concierge company. She and her staff of 60 perform everyday services such as walking the dog, picking up cleaning, waiting for the repairman, and going to the post office for people who are too busy to perform these simple acts themselves. She is often hired by major corporations to perform services for their harried executives. Her customers must evaluate the services provided by 2 Places at 1 Time A. before they are provided. B. after they are provided. C. at the same time as they are provided. D. at any time. E. using the advice of the customer's peer group.

B. after they are provided.

157. (p. 330) Factors that determine consumers' willingness and ability to pay for products and services are referred to as A. the "misery index." B. demand factors. C. consumer income. D. elasticity factors. E. economic environmental factors.

B. demand factors.

207. (p. 333) Several companies produce latex gloves that are used in a variety of different industries. If one of the glove manufacturers decreases its price by just a few percentage points, it will result in a significant increase in quantity demanded. The demand for latex gloves is A. synergistic. B. elastic. C. inelastic. D. holistic. E. entropic.

B. elastic.

40. A situation that occurs when a service provider is available but there is no demand is referred to as A. off-peak pricing. B. idle production capacity. C. static demand. D. capacity management. E. capacity inventory.

B. idle production capacity.

17. The elements that make services unique are the four I's. The four I's are A. inflexibility, intangibility, inconsistency, and inseparability. B. intangibility, inconsistency, inseparability, and inventory. C. incompatibility, inconsistency, inseparability, and inventory. D. invisibility, inconsistency, inseparability, and intangibility. E. inflexibility, incongruity, inconsistency, and inventory.

B. intangibility, inconsistency, inseparability, and inventory.

9. Services refer to A. intangible activities or benefits provided to consumers in exchange for other services or nonmonetary payments. B. intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. C. philanthropic activities performed in without expectations of monetary remuneration. D. any intangible activity that provides a benefit to a consumer that he or she could not have obtained or performed on his or her own. E. any tangible activities that provide a benefit to a consumer that he or she could not have obtained or performed on his or her own.

B. intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.

206. (p. 333) Demand for a product is likely to be more price elastic if A. it is considered a necessity. B. it has many substitutes. C. it has few substitutes. D. its price is low relative to a product with which it must be used. E. none of the above is true.

B. it has many substitutes.

141. (p. 328) The competitive market situation in which the few sellers are sensitive to one another's prices is referred to as A. pure monopoly. B. oligopoly. C. monopolistic competition. D. pure competition. E. oligopolistic competition.

B. oligopoly.

21. Because services tend to be a(n) __________ rather than an object, they are much more difficult for consumers to evaluate. A. opportunity B. performance C. ambiguity D. risk E. decision

B. performance

5. From a marketing viewpoint, __________ is money or other considerations (including goods and services) exchanged for the ownership or use of a good or service. A. value B. price C. barter D. a contract E. a tariff

B. price

199. (p. 333) The percentage change in quantity demanded relative to the percentage change in price is referred to as A. marginal revenue. B. price elasticity of demand. C. average demand. D. marginal demand. E. demand shift.

B. price elasticity of demand.

118. Economists have identified four types of competitive markets: pure monopoly, monopolistic competition, oligopoly, and __________. A. government dominated B. pure competition C. capitalism D. socialist E. consumer-dominated

B. pure competition

117. Economists have identified four types of competitive markets: A. capitalistic, monopolistic, socialist, and communist B. pure monopoly, monopolistic competition, oligopoly, and pure competition C. free market, restrained market, government regulated, and command economy D. market economy, command economy, traditional economy, and free market economy E. open market, consumer-dominated market, service market, production market

B. pure monopoly, monopolistic competition, oligopoly, and pure competition

80. One of the primary differences between tangible goods and services involves the consumer's ability to make prepurchase evaluations. For example, consumers can quite easily make comparisons and evaluations of shoes, jewelry, and skis before making a purchase. On the other hand, consumers can evaluate services such as restaurants, ski instructors, and tanning salons only during or after the purchase. Indeed, tangible products have __________ properties, while services have __________ properties. A. consistent; inconsistent B. search; experience C. inconsistent; consistent D. experience; search E. consistent; search

B. search; experience

124. The type of competition dramatically influences the range of price competition and, in turn, A. the nature of product differentiation and extent of on-hand inventory. B. the nature of product differentiation and extent of advertising. C. the degree of involvement with each level of its stakeholders. D. the degree of involvement with both suppliers and distributors. E. the relationship between product lines and product classes.

B. the nature of product differentiation and extent of advertising.

18. Intangibility of service refers to A. the value of the service provided can only be determined using subjective criteria. B. the services can't be held, seen, or touched before the purchase decision. C. the service cannot be described only experienced. D. the inability to maintain or accumulate inventory. E. the inability to be objectively evaluated.

B. the services can't be held, seen, or touched before the purchase decision.

218. (p. 335) The total expense incurred by a firm in producing and marketing a product; the sum of fixed cost and variable cost, is referred to as A. overhead. B. total cost. C. fixed costs. D. average cost. E. marginal cost.

B. total cost

172. (p. 331) The total money received from the sale of a product is referred to as __________. A. profit B. total revenue C. average revenue D. marginal revenue E. derived revenue

B. total revenue

55. According to the service continuum (Figure 12-2 above), which of the following organizations has the highest level of intangibility? A. tailored suit B. tutoring service C. advertising agency D. fast-food restaurant E. movie theater

B. tutoring service

31. Betty Smith operates a wedding preparation service that will aid brides-to-be in planning their weddings by providing needed equipment, supplies, and services. To maintain a quality image and a standardized offering Betty provides extensive training for each of her employees. What unique aspect of services is Betty trying to address? A. Impressionability B. Intangibility C. Inconsistency D. Inseparability E. Uniqueness of the service

C. Inconsistency

13. Which of the following statements about services is most accurate? A. Whether tangible or not, the marketing of services is exactly the same as the marketing of goods since they both satisfy customer needs. B. Although a major contributor to the GDP nationally, services play only a minor role in GDP on a global scale. C. Services exports is one of the few areas where the United States has a trade surplus. D. Almost 35% of all new jobs created in the United States each year are in the services sector. E. There is much more in common with the marketing of services and organizational products as there is between the marketing of services and the marketing of consumer products.

C. Services exports is one of the few areas where the United States has a trade surplus.

23. To increase value marketers may increase benefits, decrease price, or __________. A. decrease benefits and increase price B. decrease both price and benefits C. both increase benefits and decrease price D. decrease price and decrease benefits E. do nothing and let the perceived value of the item increase as it matures in the life cycle

C. both increase benefits and decrease price

158. (p. 330) Demand factors refer to A. the number of consumers who can afford to purchase a product or service. B. the price that should be charged for a given product. C. consumers' willingness and ability to pay for goods and services. D. the number of consumers who want to purchase a product. E. the number of consumers who can purchase a product.

C. consumers' willingness and ability to pay for goods and services.

22. To increase value marketers have the option of A. decreasing benefits. B. decreasing benefits and increasing price. C. decreasing price and increasing benefits. D. decreasing price and decreasing benefits. E. do nothing and let the perceived value of the item increase as it matures in the life cycle.

C. decreasing price and increasing benefits.

82. Services such as restaurants and childcare are evaluated on __________ properties. A. search B. form C. experience D. credence E. performance

C. experience

231. (p. 336) The change in total cost that results from producing and marketing one additional unit of product is referred to as A. fixed cost. B. total cost. C. marginal cost. D. variable cost. E. ancillary costs.

C. marginal cost.

146. (p. 328) In which type of industry would a marketing director be most likely to say, "We have to let the customer know that our product is the only one that comes with its own tracking device." A. pure monopoly B. oligopoly C. monopolistic competition D. pure competition E. monopolistic oligopoly

C. monopolistic competition

147. (p. 328) There are over 100 companies that manufacture natural and artificial flavorings used to enhance the taste of food before it is sold to consumers. Many of these manufacturers are regional operations. Many differentiate themselves in their advertising from the competition by specializing in one or two types of foods for which they provide flavorings. Some use their distribution strategies as a means of differentiating themselves from their competition. This industry is most likely an example of A. pure monopoly. B. oligopoly. C. monopolistic competition. D. bilateral monopoly. E. monopolistic oligopoly.

C. monopolistic competition

145. (p. 328) The competitive market situation in which many sellers compete on non-price factors is referred to as A. a pure monopoly. B. an oligopoly. C. monopolistic competition. D. pure competition. E. monopolistic oligopoly.

C. monopolistic competition.

35. One way banks can offer value to their customers, when the banks themselves are closed, is through conveniently placed ATMs. This self-service technology also comes with a down side as a service since the ATMs are considered as less __________. A. professional B. reliable C. personal D. safe E. accurate

C. personal

11. Intangible items such as airline trips, financial advice, or telephone calls that an organization provides to consumers are referred to as A. production goods. B. support products. C. services. D. goods. E. benefits.

C. services.

142. (p. 328) An oligopoly is a competitive market situation in which A. many sellers follow market price for identical, commodity products. B. one seller sets the price for a unique product. C. the few sellers are sensitive to one another's prices. D. many sellers compete on non-price factors. E. one or few sellers compete solely on nonprice factors.

C. the few sellers are sensitive to one another's prices.

4. Price refers to A. the financial consequence of doing business. B. value judgments made by both the buyer and seller regarding an item's worth. C. the money or other considerations (including other goods and services) exchanged for the ownership or use of a good or service. D. tangible or intangible remuneration for the use of a product or service. E. the highest monetary value a customer is willing to pay for a product or service.

C. the money or other considerations (including other goods and services) exchanged for the ownership or use of a good or service.

221. (p. 336) Fixed cost refers to A. the sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold. B. the expense incurred by a firm in producing and marketing a product. C. the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold. D. the average amount of money received for selling one unit of a product or simply the price of that unit. E. the sum of the expenses of the firm deducted from the revenue generated by the sale of the product.

C. the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold.

90. Fred White has just accepted a sales position with the ABC Health Maintenance Organization, a major provider of health care services. He had been selling medical supplies for some time and found that he understood how customers bought medical supplies. Which of the following is likely to be a characteristic of the health care service purchase? A. Customers are engaged in a low involvement purchase process. B. The quality of services can be predetermined in a similar manner to tangible products. C. The buyer does not participate in producing the service. D. A consumer may not have the ability to judge the quality of medical care service even after the service has been provided. E. The service provider should concentrate on the problem recognition process in marketing health care.

D. A consumer may not have the ability to judge the quality of medical care service even after the service has been provided.

170. (p. 330) Movement along the demand curve is illustrated by which of the following? A. Prices remain the same, but there is a significant increase in demand. B. Prices remain the same, but there is a significant decrease in demand. C. As the price is raised, the quantity demanded increases, assuming all else stays the same. D. As the price is lowered, the quantity demanded increases, assuming all else stays the same. E. Movement along the curve rather than a shift of the curve indicates that some significant event has taken place outside the organization that has affected demand.

D. As the price is lowered, the quantity demanded increases, assuming all else stays the same.

56. According to the service continuum in Figure 12-2 above, which of the following organizations has an almost perfect balance of tangible and intangible attributes? A. Tailored suit B. Tutoring service C. Advertising agency D. Fast-food restaurant E. Movie theater

D. Fast-food restaurant

12. Which of the following statements about services is most accurate? A. Although a major contributor to the GDP nationally, services play only a minor role in GDP on a global scale. B. Whether tangible or not, the marketing of services is exactly the same as the marketing of goods since they both satisfy customer needs. C. Almost 35% of all new jobs created in the United States each year are in the services sector. D. In the U.S. more than 42% of the GDP comes from services. E. There is much more in common with the marketing of services and organizational products as there is between the marketing of services and the marketing of consumer products.

D. In the U.S. more than 42% of the GDP comes from services.

76. Which of the following statements regarding pricing objectives is most accurate? A. Pricing objectives should never change. B. Pricing objectives may change depending upon the relative market share of competitors. C. Pricing objectives involve the day-to-day operations of the finance department, the marketing department, and production. D. Pricing objectives may change depending on the financial position of the company, the segments in which it does business, including the country in which the product is sold. E. Pricing objectives are extremely sensitive to even the slightest change in the local economy.

D. Pricing objectives may change depending on the financial position of the company, the segments in which it does business, including the country in which the product is sold.

116. Which pricing constraint is demonstrated by the following statement: "Most public utilities must petition regulatory commissions in order to obtain a rate increase."? A. Demand for the product, class, or brand B. Newness of product in the life cycle C. Costs of production D. Type of competitive markets E. Single product versus a product line

D. Type of competitive markets

200. (p. 333) Which of the following statements about price elasticity of demand is most accurate? A. Price elasticity with unitary demand is less than 1. B. The more substitutes a product has, the less likely it is to be price elastic. C. Unitary demand represents the relationship between the cash outlay necessary to purchase a product, relative to a person's disposable income. D. With inelastic demand, reducing price will result in a decrease of total revenue. E. With inelastic demand, reducing price will result in an increase in total revenue though not necessarily an increase in profit.

D. With inelastic demand, reducing price will result in a decrease of total revenue.

41. Idle production capacity refers to A. the minimum number of customers can serve and still remain profitable. B. the maximum number of customers a company must serve in order to remain profitable. C. the ability of a service provider to redirect its efforts so even when there is no direct demand, employees are still productive. D. a situation that occurs when a service provider is available but there is no demand. E. a situation that occurs when the demand for a service exceeds that number of service providers available.

D. a situation that occurs when a service provider is available but there is no demand.

33. Inseparability in services means A. consumers see little variation from one service provider in an industry to another. B. consumers are unable to differentiate price from quality. C. consumers cannot evaluate a service until it is being utilized. D. consumers cannot separate the service from the deliverer of the service. E. consumers often lack the personal knowledge to evaluate whether the service provider has performed the task properly or not.

D. consumers cannot separate the service from the deliverer of the service.

89. Sarah has a toothache. She believes it may be due to her not having regular dental appointments in the past. She now wants to find a dentist, but does not have one that she has used in the past. Because dentistry has __________ properties, Sarah plans to ask her friends for a recommendation for a dentist they like to be sure that she finds a good one. A. search B. form C. experience D. credence E. performance

D. credence

24. To increase value marketers may __________, decrease price, or both increase benefits and decrease price. A. decrease benefits and increase price B. decrease both price and benefits C. decrease benefits D. increase benefits E. do nothing and let the perceived value of the item increase as it matures in the life cycle.

D. increase benefits

34. Andrea Arena is the owner of 2 Places at 1 Time, a concierge company. She and her staff of 60 perform everyday services such as walking the dog, picking up cleaning, waiting for the repairman, and going to the post office for people who are too busy to perform these simple acts themselves. She is such a caring person and so well liked that her customers recommend her instead of her business to people who are looking for someone to perform similar services. Their inability to see the distinction between Arena and her services is an example of which unique characteristic of services? A. intangibility B. impressionability C. incongruity D. inseparability E. inflexibility

D. inseparability

39. The __________ cost of a service is the cost of paying the person used to provide the service along with any needed equipment. A. intangibility B. inconsistency C. inseparability D. inventory E. hidden

D. inventory

74. Specifying the role of price in an organization's marketing and strategic plans is referred to as A. a pricing plan. B. profit mission. C. pricing constraints. D. pricing objectives. E. the list or quoted price.

D. pricing objectives.

127. If competitive market circumstances are such that there is almost no price competition, no product differentiation, and the only advertising informs prospects the product is available, then _________ must exist in this industry. A. a pure monopoly B. an oligopoly C. monopolistic competition D. pure competition E. monopolistic oligopoly

D. pure competition

125. The competitive market situation in which many sellers follow the market price for identical, commodity products is referred to as A. pure monopoly. B. oligopoly. C. monopolistic competition. D. pure competition. E. oligopolistic competition.

D. pure competition.

38. The inventory costs of services include A. equipment and training costs. B. management and material costs. C. service delivery and spoilage costs. D. salary of service provider and equipment costs. E. salary of service provider and training costs.

D. salary of service provider and equipment costs.

75. Pricing objectives refer to A. reconciling the prices charged by an organization to the values set forth in its business mission. B. specific steps taken to capitalize on an organization's internal strengths as they apply to price. C. specific steps taken to compensate for an organization's weaknesses as they apply to price. D. specifying the role of price in an organization's marketing and strategic plans. E. setting specific numeric values to all products and services within an organization.

D. specifying the role of price in an organization's marketing and strategic plans.

28. Organizations attempt to reduce the inconsistency of service delivery through A. higher incentives to employees for satisfactory performance. B. pay reductions for poor performance. C. the reduction of customer contact points in the service delivery process. D. standardization and training. E. careful management through close supervision and performance evaluations.

D. standardization and training.

6. Attorneys' fees, entrance fees, train fares, and organization dues are all A. premiums. B. bartering tools. C. mediums of exchange. D. synonyms for price. E. examples of liquidity.

D. synonyms for price.

42. The emergency room staff in Houston's largest hospital is surprised and pleased when a four-day Fourth of July weekend brings fewer accident victims in for treatment. They know from experience that such public holidays usually have high rates of accidents. For the hospital business office, the lower demand for the emergency room services means A. a break in the service continuum. B. its services are no longer tangible. C. its services can be separated from the staff. D. the hospital has idle production capacity. E. an opportunity for gap analysis.

D. the hospital has idle production capacity.

53. The service continuum refers to A. all the points along the customer contact audit. B. the channel from service concept, to service provider, to ultimate consumer. C. a concept which says that a service is inseparable from the service provider. D. the range of offerings from the tangible to the intangible or good-dominant to the service-dominant. E. the range of organizations from nonprofit to for-profit.

D. the range of offerings from the tangible to the intangible or good-dominant to the service-dominant.

19. The ratio of perceived benefits to price is referred to as A. the price-quality relationship. B. prestige pricing. C. value-added pricing. D. value. E. value analysis.

D. value.

160. (p. 330) While consumer tastes and price and availability of similar products determine what consumers want to buy, consumer income determines A. where they buy. B. the degree of brand loyalty. C. the degree of repeat buys. D. what they can buy. E. their desire to buy.

D. what they can buy.

27. The brochure for Spa Sydell has photographs of people enjoying the various spa amenities. By seeing the pictures of what is available at the spa, a customer has a better idea of what she is buying. Spa Sydell uses a brochure to help customers deal with the __________ that is associated with all services. A. incongruity B. inconsistency C. inventory costs D. inseparability E. intangibility

E. intangibility

153. (p. 330) The horizontal axis of a demand curve graph represents __________. A. quantity sold B. production cost per unit C. price per unit D. potential profit in dollars E. quantity demanded

E. quantity demanded

20. To help consumers assess and compare services, marketers try to make them tangible or __________. A. temporal B. consistent C. adaptable D. measureable E. show the benefits of the service

E. show the benefits of the service

227. (p. 336) The sum of the expenses of the firm that vary directly with the quantity of the product that is produced and sold is referred to as A. fixed cost. B. total cost. C. marginal cost. D. administrative cost. E. variable cost.

E. variable cost.