Marketing Final Practice Questions – Flashcards

From a marketing viewpoint, price is __________exchanged for the ownership or use of a good or service. A) money or other considerations (including goods but not intangibles and services) B) money or other considerations (including other goods and services) C) money exclusively earmarked for the transaction D) what is recognized as barter within a particular culture E) anything of value to the buyer but not necessarily of value to the seller

Forever Quilting is a small company that makes quilting kits priced at $120 each. (There is no quantity discount.) The costs of the materials that go into each kit are $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising in quilting magazines, and $4,500 for the monthly salary of its owner. If Forever Quilting sells 150 kits in a given month, its monthly profit will be: A) $4,300. B) $10,500. C) $13,700. D) $11,800. E) $18,000.

Setting a low initial price on a new product to appeal immediately to the mass market is referred to as: A) skimming pricing. B) penetration pricing. C) price lining. D) odd-even pricing. E) prestige pricing.

Vending machines are a good example of the application of what type of competition-oriented pricing? A) customary pricing B) above-, at-, or below-market pricing C) loss-leader pricing D) penetration pricing E) bundle pricing

The vertical axis of a demand curve graph represents: A) quantity sold. B) price per unit. C) production cost per unit. D) potential profit in dollars. E) quantity demanded.

Which of the following statements about price elasticity of demand is most accurate? A) Price elasticity with inelastic demand must always be greater than one. B) The more substitutes a product has, the less likely it is to be price elastic. C) Unitary demand represents the relationship between the cash outlay necessary to purchase a product, relative to a person's disposable income. D) Items requiring large cash outlay relative to the consumer's disposable income are price elastic. E) With inelastic demand, reducing price will result in an increase in total revenue though not necessarily an increase in profit.

The sum of fixed cost and variable cost represents __________. A) the profit equation B) variable costs C) break-even point D) variable costs E) total cost

Three different objectives relate to a firm's profit, which is often measured in terms of (ROI). The acronym ROI stands for __________. A) risk opportunity information B) regulated organizational incentives C) return on investment D) regulated organizational investments E) replenishment of organizational inventories

If the trade discount is listed 20/10/5, the number 10 represents: A) 10 percent of the retailer's cost or the manufacturer's sale price. B) 10 percent of the wholesaler cost or the jobber's sales price. C) 10 percent of the manufacturer's suggested price paid by the jobber. D) 10 percent of the jobber's price paid by the retailer. E) 10 percent of the manufacturer's price paid by the jobber.

When buyers and sellers are separated by vast distances, geographical adjustments may be made to reflect the cost of transportation of the products from sellers to buyers. Which method of quoting prices would be chosen by a seller who wants to maximize profits? A) uniform delivered pricing B) single-zone pricing C) multiple-zone pricing D) FOB origin pricing E) FOB buyer's location