Marketing Final Exam

No competitors to speak of status quo objectives are

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Unformatted text preview: chological c. profit-oriented d. sales-oriented e. supply-derived ANS: C Because it has no competitors to speak of, status quo objectives are unlikely. It is not interested in maximizing its sales, so sales-oriented objectives are also not likely. PTS: 1 REF: 302-303 Thinking KEY: CB&E Model Pricing OBJ: 19-2 TOP: AACSB Reflective MSC: BLOOMS Application 119. Refer to American Girl Doll. The popularity of the American Girl dolls is so great that an increase in the price of the basic Kristen doll and books by 5 percent will not significantly affect the demand for the product. The means that the demand for the American Girl doll is: a. elastic b. derived c. a multiplier d. inelastic e. symmetrical ANS: D Inelastic demand means that an increase or decrease in price will not significantly affect demand for the product. PTS: 1 REF: 307 Thinking KEY: CB&E Model Pricing OBJ: 19-3 TOP: AACSB Reflective MSC: BLOOMS Application 120. Refer to American Girl Doll. Based on the information in the narrative, which of the following factors is most likely to affect the elasticity of demand for the doll? a. The absence of substitutes b. The existence of complementary products c. The price relative to purchasing power d. Product durability e. A variety of alternative uses for the product ANS: A There is nothing like the American Girl doll in terms of historical accuracy. PTS: 1 REF: 308 Thinking KEY: CB&E Model Pricing OBJ: 19-3 TOP: AACSB Reflective MSC: BLOOMS Application 121. Refer to American Girl Doll. In terms of the costs of producing the doll and its accessories, the salary of the graphic designer who does the layout for the American Girl catalog is a(n): a. markup cost b. variable cost c. fixed cost d. derived cost e. elastic cost ANS: C Salaries are considered fixed costs. PTS: 1 REF: 309 Thinking KEY: CB&E Model Pricing OBJ: 19-5 TOP: AACSB Reflective MSC: BLOOMS Application 122. Refer to American Girl Doll. In terms of producing the doll and its accessories, the calico fabric used to make Kristen’s dress is an example of a(n): a. b. c. d. e. markup cost variable cost fixed cost derived cost elastic cost ANS: B How much fabric used depends on how many dolls made. PTS: 1 REF: 309 Thinking KEY: CB&E Model Pricing OBJ: 19-5 TOP: AACSB Reflective MSC: BLOOMS Application 123. Refer to American Girl Doll. You can buy a doll at Walmart for $5.99. The high price of the American Girl doll is used to promote a high-quality image. American Girl uses a _____ pricing strategy. a. markup b. demand-based c. prestige d. penetration e. supply-derived ANS: C Prestige pricing is charging a high price to help promote a high-quality image. PTS: 1 REF: 316 Thinking KEY: CB&E Model Pricing OBJ: 19-6 TOP: AACSB Reflective MSC: BLOOMS Application Smelly Fruit At first glance, there is little to like about the durian. The durian is a fruit popular in Thailand that is spiky outside and stinky on the inside. When confronted with the durian for the first time, the Wa...
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