Practice Questions for Exam II - 1 Margaret has been...

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1 Practice Questions for Exam II 1. Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about wine, she will likely use the price of the wines as: a. an indicator of quality. b. a reflection of status quo pricing. c. an indicator of the cost of production. d. a measure of scarcity. e. a measure of cross-price complementary products. 2. Unlike product, promotion, or place, price is the only part of the marketing mix: a. that offers the opportunity for an oligopoly. b. that is subject to gray market manipulation. c. that leads to competition. d. that generates revenue. e. that adds value to the product or service. 3. Consumers judge the benefits the product delivers against the _____ necessary to obtain it. a. price b. profit c. target optimization d. total return e. sacrifice 4. Marty is like many managers, traditionally he has determined the prices for his products by either looking at what competitors were charging or: a. initiating a price war. b. by calculating the price elasticity of demand. c. adding the cross-price elasticity to the cost equation. d. adding up his costs and adding a profit margin. e. by focusing on prestige break-even estimation. 5. Toyota recently announced a goal of achieving a 15 percent global market share by 2010. To achieve this goal, Toyota will likely use a _____ orientation pricing strategy. a. maximizing profits b. target profit c. target return d. status quo e. sales
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2 6. If the fixed costs of opening an Internet specialty sporting goods business are $10,000, price is $60 and variable cost per unit of $20, the break-even point is: a. 100 units. b. 4000 units. c. 20 units. d. 1000 units. e. 250 units. 7. Cross-price elasticity is: a. percentage change in quantity demanded divided by the percentage change in price. b. percentage change in quantity demanded of good A divided by percentage change in price of good B. c. change in price of good A divided by change in quantity demanded for good B.
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This note was uploaded on 03/02/2011 for the course MKTG 320 taught by Professor Shi during the Summer '10 term at University of Illinois, Urbana Champaign.

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Practice Questions for Exam II - 1 Margaret has been...

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