Prelim_3_2007_answer_key_Form_A

Prelim_3_2007_answer_key_Form_A - AEM 240 Name: Marketing...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
AEM 240 Fall 2007 Marketing Prof. McLaughlin Prelim #3 FORM A Thursday, November 15, 2007 Cartoon Caption Contest Best Caption receives 3 bonus points on the prelim This exam consists of 2 parts 1. 33 multiple choice questions (only 30 count) 80 pts 2. Choice of 1 (only) of 2 Essays 20 pts 100 pts 1 Name: ID # Check if you are chewing gum right now. Marketing AEM 240 Prof. McLaughlin
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
AEM 240 Fall 2007 Marketing Prof. McLaughlin 1. Which of the following statements concerning pricing is  true ? I. Price is the most important element of the marketing mix because it is         the only element that covers cost   II.    A firm’s objectives should be based on the firm’s pricing strategy           because price is the most important element of the marketing mix.   III.  PIMS implies that relative to a firm with a larger market share, a firm            with a smaller market share is likely to have a greater ROI.      IV.   All else equal, if a firm raises the price of a product, the consumer          demand curve for that product will shift inward.           V.   Consumers consider value, not price, when making purchasing decisions. a.   I, IV b.   I, V  c.   I, II, III d.   II, III, V                    e.   II, IV, V   2. According to the video clip of Trading Places (starring Eddie Murphy) played in lecture,  agricultural products are typically sold in what type of market structure?  a. Pure monopoly b. Pure competition  c. Monopolistic competition d. Oligopoly  e. Arbitrage equilibrium 3.      In response to Duracell's introduction of the Duracell Ultra battery, Energizer introduced  an Advanced Formula battery.  However, unlike Duracell, Energizer priced its batteries  at a low initial price to attract the mass market.  Was Energizer's strategy to steal market  share from Duracell a success?  a. No, because consumers equate quality of batteries with higher         prices.  b.  No, because retailers did not respond appropriately to the target  2
Background image of page 2
AEM 240 Fall 2007 Marketing Prof. McLaughlin                        market pricing strategy.  c.  No, because consumers are price-insensitive when it comes to                         batteries.  d.  Yes, because consumers typically respond positively to cost-plus                          pricing.  e.  Yes, because the demand for batteries has unitary elasticity.  4.  According to traditional views on pricing, which of the following examples           best describes a situation in which a firm is maximizing profits? a.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 18

Prelim_3_2007_answer_key_Form_A - AEM 240 Name: Marketing...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online