Marketing Final Exam

Sulphurous smell with words like stinky socks and

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Unformatted text preview: ll Street Journal recently reported that westerners often describe its distinctive sulphurous smell with words like stinky socks and manure. However, the durian is so popular in Thailand that one variety of the durian fruit, called the Kan Yao, has been selling for as high as $200. Even at that price, supply of the Kan Yao cannot keep up with demand. There are approximately 30 varieties of the durian grown in Thailand, with the most plentiful selling in the $15 range. The yellow flesh of the durian, the part you eat, has very powerful smell but possesses a sweet, nutty taste that Thais cannot seem to get enough of at any price. 124. Refer to Smelly Fruit. If it cost a Thai farmer $100 to produce and $25 to market the Kan Yao durian that she sells for $200 at the marketplace, her revenue, for each durian sold, would be: a. $125 b. $200 c. $25 d. $100 e. $325 ANS: B Revenue is the price charged to customers. PTS: 1 REF: 302 KEY: CB&E Model Pricing OBJ: 19-1 TOP: AACSB Analytic MSC: BLOOMS Analysis 125. Refer to Smelly Fruit. Suppose that a Thai farmer sells ten Kan Yao durians in the marketplace at the going rate of $200 each. If it cost a Thai farmer $125 to produce and market the Kan Yao durian that she has sold, the difference between these two numbers ($75), times the number sold (ten), represents the farmer’s: a. ROI b. revenue c. profit d. returns e. COGS ANS: C What’s left over after covering all costs would be the farmer’s profit. PTS: 1 REF: 302 Thinking KEY: CB&E Model Pricing OBJ: 19-1 TOP: AACSB Reflective MSC: BLOOMS Application 126. Refer to Smelly Fruit. Suppose that you have decided to buy land in Thailand and become a durian producer. You see that the customary price for a Kan Yao is $200, so that is the price you decide to charge for your durian crop. This suggests you are using a _____ approach to setting your price. a. profit maximization b. market share c. return on investment (ROI) d. sales maximization e. status quo ANS: E Status quo pricing seeks to maintain existing prices or to meet competition’s price. PTS: 1 REF: 305 Thinking KEY: CB&E Model Pricing OBJ: 19-2 TOP: AACSB Reflective MSC: BLOOMS Application 127. Refer to Smelly Fruit. At $200 per Kan Yao, demand for the fruit appears to be higher than supply. Suppose that at a price of $225, the amount demanded exactly meets the amount farmers are willing and able to supply. In this case, the $225 price would be considered the _____ price. a. price equilibrium b. sales maximization c. profit maximization d. ROI maximization e. yield management ANS: A When demand and supply are equal, you have met the price equilibrium price. PTS: 1 REF: 306 Thinking KEY: CB&E Model Pricing OBJ: 19-3 TOP: AACSB Reflective MSC: BLOOMS Application 128. Refer to Smelly Fruit. Over the past two years, the price for Kan Yao durian fruit has increased by 50 percent. If the amount sold has remained almost constant, we would say that demand is: a. elastic b. inelastic c. unitary...
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This document was uploaded on 09/29/2013.

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