Final Exam - 1) Which of the following is not a type of...

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Unformatted text preview: 1) Which of the following is not a type of pricing objective? a. Break even b. Image enhancement c. Profit d. Customer satisfaction e. Competitive effect 2) Which of the following products would most likely have a profit objective? a. A commodity like coal b. Toothpaste c. A fad like Beanie Babies d. Light bulbs e. Construction material 3) The demand curve___ a. Is used to illustrate the effect of price on the quantity supplied b. Is always graphically depicted by a straight line c. Shows the quantity of product customers will buy in a market during a period of time even if other factors change d. Usually slopes upward and to the right e. Shows the relationship between product demand and product price 4) What is the first step an organization takes to estimate its potential sales? a. Determine maximum production levels b. Conduct a survey of buyers intentions c. Estimate demand for the entire product category in the market the company serves d. Determine how to expand market share e. Develop demand curves for different price levels 5) The price elasticity of demand is calculated by___ a. Averageing previous demand levels with new demand levels b. Dividing percentage change in quantity demanded by percentage change in price c. Dividing the new quantity demanded by the percentage change in price time 100 d. Multiplying percentage change in quantity demanded by percentage change in price e. Dividing the percentage change in price by the percentage change in quantity demanded 6) For a skimming price to be successful, _____ a. Consumers must be price sensitive b. Supply must exceed demand c. Demand must be stable d. The producer must use intensive distribution e. There should be little chance that competitiors can get into the market quickly 7) When demand is inelastic_____ a. Price and revenue change in the same direction b. Revenues decrease when price increases c. Revenue is unaffected by price changes d. Quantity demanded increases when price increases e. The demand curve is more horizontal 8) ____ are the per-unit costs of production that will fluctuate depending on how many units or individual products are a firm produces a. Liquidity expenses b. Amortization costs c. Variable costs d. Retained earnings e. Fixed costs 9) The break-even point is the point at which ___ a. The total revenue and total cost lines intersect b. Demand equals supply c. The production of one more unit will not increase profit any more d. A company can pay all of its long-term debt e. The economic order quantity is reached 10) The two specific forms of demand-based pricing are____ a. Price bundling and price unbundling b. Price skimming and penetration pricing c. Fixed pricing and variable pricing d. Target costing and yield management pricing e. Target ROI and status quo pricing 11) Marketers like to use penetration pricing for new products to _____ a. Ensure the company has the ability to lower prices once demand decreases b. Focus on the rapid achievement of profit objectives...
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Final Exam - 1) Which of the following is not a type of...

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