MKGT431minitest7 - MINI TEST 7 1-When marginal revenue is...

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MINI TEST 7 1-When marginal revenue is POSITIVE and prices decrease? Choose one answer. a. Average revenue decreases b. Unit sales increase c. All of these things happen when marginal revenue is positive and prices decrease. d. Fixed costs stay the same e. Total revenue increases 2-_________ is the money or other considerations exchanged for the ownership or use of a product or service? Choose one answer. a. Expense b. Revenue c. Value d. Barter e. Price 3-Which of the following is a form of price? Choose one answer. a. A salesperson's commission b. Tuition for Marketing 431 c. These are all forms of price d. An insurance premium e. The annual salary of professional athlete 4-Price elasticity is the slope of the demand curve. When price elasticity is HIGH? Choose one answer. a. You can decrease profits by decreasing prices b. You can increase profits by cutting prices c. You can increase revenues by cutting prices. d. You can increase revenue by increasing prices e. You can decrease revenues by cutting prices 5-What do we mean when we speak of the price/value heuristic? Choose one answer. a. That price is only one factor people use to determine a product's value b. That for socially consumed goods, price is part of the product. c. That in general, price is the most important component of value. d. That in general, the higher the price, the higher the value of the product e. That in general, people perceive a product with a higher price to be a better product 6-Experience has shown that customers perceive a price of $99.99 to be significantly lower than a price of $100. The pricing strategy that takes advantage of this phenomenon is called ___________ Choose one answer. a. Price line pricing b. Yield management pricing c. Odd-even pricing
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MINI TEST 7 d. Price bundling e. Penetration pricing. 7-The Broyhill furniture company designed a sofa that retailers could sell for $699 and still make a profit. This was because retailers had told the company they needed a promotional sofa that would cost less than the $1000 or more for a typical sofa. They would feature the promotional sofa in their advertisements to bring customers into the store. This is an example of? Choose one answer. a. Captive pricing b. Target profit pricing c. Penetration pricing d. Flexible pricing. e. Prestige pricing. 8-Nintendo chose a ___________ approach to pricing the new Nintendo DS because they felt the market for this product is price sensitive, there are major economies of scale to be achieved, and both Sega and Microsoft would be introducing new game systems shortly? Choose one answer. a. Variable price b. Skimming c. Penetration d. Game theory e. Trial pricing 9-Many large retail stores use ____________ because it would be impractical to calculate the correct price for thousands of items individually? Choose one answer.
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