1.What term refers to the “wiggle room” in the supply and demand curve?
Elasticity
2.From a marketing perspective, pricing should be about the ______.
Customer
3.Since we read from left to right, when we see a price, we process the number of dollars before the number of cents. This is why so many prices end in which of the following numbers?
99
4.Which of the following is the idea that the price (on the sticker) is much higher than the referent?
Sticker shock
5.Which of the following formulas defines profit?
[(Price – Variable Costs) × Demand] – (Fixed costs)
6.(Price – Variable costs) is also called ______.
contribution per unit to fixed costs
7.Which of the following is true about the price-sensitive segment?
They are deal prone.
8.If E = 1, demand is said to be ______.
Unitary
9.To what does FIFO refer?
First-in, first-out
10.Based on this figure, if American charges $209 for a flight, and Delta charges $279, how much does Southwest charge?
$99
11.Profit maximization occurs when marginal revenue equals ______.
marginal cost
12.Which of the following is true about competitive pricing?
It is at a medium level, somewhere in between extremes, using competitors’ prices as a starting point, and adjusting from there.
13.Which of the following is greater when the item is a luxury good rather than a necessity, when many substitutes are available, or when the purchase is a relatively big one?
Price sensitivity
14.Renaud is the marketing manager at EatIt Foods. Although he knows that other tools are available, like other marketing managers, Renaud’s favorite tool to study pricing is ______.
Conjoint
15.A survey asks the following two questions:
Q1 At $25.00, I definitely would not buy 1 2 3 4 5 6 7 definitely would buy
Q2 At $35.00, I definitely would not buy 1 2 3 4 5 6 7 definitely would buy
There is a segment of people who are not really interested in the product regardless of the price. What are their answers most likely to be?
Q1 = 2 or 3, and Q2 = 1 or 2
16.The point of which of the following is to get companies to think about the broader market, rather than only optimizing their own needs?
Game theory
17.The medium price of a product is determined by ______.
competitors’ price ± fudge factor
18.Company ABA showed its customers products with various combinations of features and attributes, with price being one of them. Its customers were asked: “Which combination do you prefer most, next most, etc.?” What type of study did Company ABA conduct?
Conjoint analysis
19.If your fixed costs (including marketing, advertising, R&D, depreciation, etc.) are high relative to variable costs (which include labor or unit components), the strategic objective is to ______.
maximize sales volume
20.If demand bounces around when prices change, it is ______.
Elastic
21.BizCo is a B2B firm specializing in selling highly complex computer networking systems and software that allow clients to work more efficiently. Matheos is the VP of Sales at BizCo and is concerned about some of the complaints he’s received from customers and prospective customers. Which of the following is one of the complaints Matheos is MOST likely to hear?
“The salesperson isn’t following my company’s buying process.”
22.Promotion and financing are which of the following types of activities?
Marketing-oriented
23.Selling Company produces its product in batches of 100, yet its average customer only purchases 10 at a time. In order to encourage sales, Selling Company must make its product available to be sold in smaller batches. This process is known as _______.
breaking bulk
24.The downstream partners that help a company reach consumers comprise the ______.
channel members
25.The relational issues incurred by trying to coordinate the enterprise and control one’s partners are known as costs of _____.
governance
26.Channel design is an integral part of all of the following EXCEPT _______.
Pricing
27.Which of the following types of strategies involve manufacturers offering incentives to distributors (such as dealers, wholesalers, retailers) to sell products to the end users?
Push marketing
28.Coordinating the flow of all goods, services, and information among channel members, and throughout the channel, is referred to as ______.
Logistics
29.A grocery store that decides to add a florist is expanding by offering an additional _______.
Service
30.A perspective by which the benefits a company brings to its partners (beyond cost reductions) are emphasized is referred to as ______.
transaction value analysis
31.When different types of retailers are competing, it’s called __________ competition.
horizontal
32.When a retailer is planning for its sales force, it starts with the question, “How many salespeople should we have?” Which of the following is the next question it should ask?
How should salespeople be compensated for their efforts?
33.Specialty stores carry __________ but not __________.
depth, breadth
34.Sheila owns a small boutique. She wants to move on to other things. She thinks she might be comfortable giving up complete ownership of the business but would still like to maintain some control over it. Which of these is she considering?
Franchising
35.ABC Uniforms currently buys uniforms and customizes them for specific teams. The uniform manufacturer is hard to deal with and has refused to negotiate a reasonable price. ABC Uniforms already has the equipment to customize the uniforms. Perhaps the company should begin to make the basic uniforms in-house. Which of the following terms refers to this type of decision?
Make vs. buy
36.When the decisions seem overwhelming, we should simplify and remember that the key to marketing is to think about the ______.
Customer
37.Storage and display are which of the following types of activities?
Product-oriented
38.Which of the following identifies a major class of franchising?
Product franchising
39.Pixar makes fun movies. What role does the movie theater play in the distribution channel?
Retailer
40.Which of the following terms refers to the extreme case of selectivity?
Exclusive channel