QUESTION Which of the following is the best example of psychological pricing? A) The local university charges $16,000 for one student for one year of education. B) Howard has set the price of his luxury RV at $319,000. C) Eugene wants $350.00 for his heavy-duty chainsaw. D) Dominic has set the price of his specialty […]
Date: September 3rd, 2020
QUESTION What is the formula for computing the break-even point? A) break-even point = fixed cost / (variable cost of 1 unit – price of 1 unit) B) break-even point = fixed cost / (price of 1 unit – variable cost of 1 unit) C) break-even point = fixed cost / (price of 1 unit […]
Date: September 3rd, 2020
QUESTION Which kind of products do the six alternative pricing strategies best apply to? A) convenience B) shopping C) specialty D) unsought E) business ANSWER Answer: B Explanation: B) Shopping goods and services are more expensive products that people buy after comparing for value, price, quality, and style. The six alternative pricing strategies are […]
Date: September 3rd, 2020
QUESTION In this kind of pricing, a company starts with the price it wants to charge, figures out the profit margin it wants, then determines what the costs must be to produce the product to meet the desired price and profit goals. A) discounting B) target costing C) bundling D) everyday low pricing E) penetration […]
Date: September 3rd, 2020
QUESTION Which alternative pricing strategy works best with unsought products? A) psychological pricing B) bundling C) discounting D) price skimming E) penetration pricing ANSWER Answer: D Explanation: D) Unsought goods and services are those that people have little interest in, are unaware of, or didn’t think they needed. Price skimming is setting a high […]
Date: September 3rd, 2020
QUESTION Which of the following is an example of price skimming? A) Gourmet Pizza shop sells special-topping pizzas for $15.99. B) Walmart sells all products at a low price every day. C) When Macy’s introduces new clothing every season, it starts out selling the items at a high price. After a few weeks, the store […]
Date: September 3rd, 2020
QUESTION What is the marketing and financial value derived from the combination of factors that people associate with a certain brand name? A) brand awareness B) brand preference C) brand insistence D) brand equity E) brand loyalty ANSWER Answer: D Explanation: D) Brand equity is the marketing and financial value derived from the combination […]
Date: September 3rd, 2020
QUESTION Which of the following is NOT one of the four goals of branding? A) to publicize the company name and build trust B) to differentiate the company’s product from competing products C) to start a new company D) to get repeat sales E) to make entering new markets easier ANSWER Answer: C Explanation: […]
Date: September 3rd, 2020
QUESTION What is the name given to commitment to a particular brand—the degree to which consumers are satisfied with a product and will buy it again? A) brand awareness B) brand preference C) brand insistence D) brand equity E) brand loyalty ANSWER Answer: E Explanation: E) Brand loyalty is commitment to a particular brand—the […]
Date: September 3rd, 2020
QUESTION The compact edition of the Oxford English Dictionary is sold with a magnifying glass. This is an example of which function of packaging? A) to provide product information B) to indicate price and universal product code C) to help consumers use the product D) to promote the product and differentiate it from competitors E) […]
Date: September 3rd, 2020
