general business data bank

Question # 00003606 Posted By: vikas Updated on: 11/16/2013 12:21 PM Due on: 11/30/2013
Subject Marketing Topic Marketing Tutorials:
Question
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1) ________ is the amount of money charged for a product or service.

A) Experience curve

B) Demand curve

C) Price

D) Wage

E) Salary

2) Price is the only element in the marketing mix that produces ________.

A) revenue

B) variable costs

C) expenses

D) outfixed costs

E) stability

3) If a seller charges ________ than the buyer's perceived value, the company's sales will ________.

A) more; benefit

B) more; suffer

C) less; increase

D) less; suffer

E) none of the above

4) Some companies have adopted a ________ strategy, offering just the right combination of quality and good service at a fair price.

A) value-based pricing

B) good-value pricing

C) cost-plus pricing

D) low-price image

E) none of the above

5) Wal-Mart is famous for using what important type of value pricing?

A) competition-based pricing

B) everyday low pricing

C) cost-plus pricing

D) break-even pricing

E) penetration pricing

6) ________ involves charging a constant, everyday low price with few or no temporary price discounts.

A) High-low pricing

B) Target pricing

C) Cost-plus pricing

D) EDLP

E) Penetration pricing

7) ________ are the sum of the ________ and ________ for any given level of production.

A) Fixed costs; variable; total costs

B) Fixed costs; total; variable costs

C) Variable costs; fixed; total costs

D) Total costs; fixed; variable costs

E) Break-even costs; fixed; total costs

8) SRAC is the acronym for which concept related to costs at different levels of production?

A) strategic reasoning and costs

B) short-run accounting costs

C) short-run average cost

D) strategic rights and company

E) strategic revenues and costs

9) As production workers become better organized and more familiar with equipment, the average cost per unit decreases. This is called the ________.

A) demand curve

B) experience curve

C) short-run average cost curve

D) long-run average cost curve

E) marginal utility

10) With a higher volume of product, most companies can expect to ________.

A) gain economies of scale

B) become less efficient

C) see average costs increase

D) have a straight, horizontal learning curve

E) find competitors using the experience curve strategically

11) The break-even volume is the point at which ________.

A) the total revenue and total costs lines intersect

B) demand equals supply

C) the production of one more unit will not increase profit

D) the company can pay all of its long-term debt

E) a firm's profit goal is reached

12) ________ pricing works only if that price actually brings in the expected level of sales.

A) Elasticity

B) Markup

C) Variable

D) Inelasticity

E) Target profit

13) Which of the following statements about break-even analysis is true?

A) It is used to determine how much production experience a company must have to achieve desired efficiencies.

B) It is a technique used to calculate fixed costs.

C) It determines the amount of retained earnings a company will have during an accounting period.

D) It is a technique marketers use to examine the relationship between supply and demand.

E) It is calculated using variable costs, the unit price, and fixed costs.

14) As a manufacturer increases price, the ________ drops.

A) target

B) break-even volume

C) cost-plus pricing

D) total cost

E) sales

15) Which of the following is an external factor that affects pricing decisions?

A) the salaries of production management

B) competition

C) the salaries of finance management

D) funds expensed to clean production equipment

E) A, B, and C

16) ________ that influence pricing decisions include the nature of the market and demand and competitors' prices.

A) Internal factors

B) Elasticity factors

C) External factors

D) Target factors

E) Domestic factors

17) Companies may set prices low for which of the following reasons EXCEPT ________.

A) to prevent competition from entering the market

B) to stabilize the market

C) to create excitement for a product

D) to prepare for an easy exit from a market

E) to match a competitor

18) In order to form a consistent and effective integrated marketing program, price decisions should be coordinated with each of the following EXCEPT ________.

A) product design

B) distribution

C) competitors' prices

D) promotion decisions

E) marketing objectives

19) With target costing, marketers will first ________ and then ________.

A) build the marketing mix; identify the target market

B) identify the target market; build the marketing mix

C) design the product; determine its cost

D) use skimming pricing; penetrating pricing

E) determine a selling price; target costs to ensure that the price is met

20) Price setting is usually determined by ________ in small companies.

A) top management

B) marketing departments

C) sales departments

D) divisional managers

E) cross-functional teams


21) Price setting is usually determined by ________ in large companies.

A) top management

B) divisional managers

C) product line managers

D) pricing departments

E) both B and C

22) EDLP is very similar to high-low pricing.

23) Overhead cost is another term for fixed cost.

24) Cost-based pricing relies on consumer perception of value to drive pricing.

25) Average unit cost increases with accumulated production experience.

26) An upward-sloping experience curve is beneficial for a company.

27) The simplest pricing method is cost-plus pricing, which involves adding a standard markup to the cost of the product.

28) Markup pricing is popular because prices tend to be similar and price competition is thus minimized.

29) Target profit pricing is used when a firm tries to determine the price at which it will break even or make the profit it is seeking.

30) A break-even chart shows the total cost and total revenue expected at various sales volume levels
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