Question 1

What is the best definition of the term fixed costs?

Accepted Answer

A)  Costs that are needed to acquire a fixed market share 
B)  Costs that are needed to acquire fixed profits 
C)  Costs that are unaffected by the number of goods sold by the firm 
D)  Costs that remain the same from year to year 
E)  Costs that remain the same across all products 
A)  Costs that are needed to acquire a fixed market share 
B)  Costs that are needed to acquire fixed profits 
C)  Costs that are unaffected by the number of goods sold by the firm 
D)  Costs that remain the same from year to year 
E)  Costs that remain the same across all products

Question 2

Of all transportation modes, ________ are the least expensive.

Accepted Answer

A)  trains 
B)  pipelines 
C)  water carriers 
D)  planes 
E)  trucks 
A)  trains 
B)  pipelines 
C)  water carriers 
D)  planes 
E)  trucks

Question 3

Which of the following pricing strategies has stimulation of sales as a higher priority than maximization of profits?

Accepted Answer

A)  Price fixing 
B)  Penetration pricing 
C)  Price skimming 
D)  Price pointing 
E)  Price lining 
A)  Price fixing 
B)  Penetration pricing 
C)  Price skimming 
D)  Price pointing 
E)  Price lining

Question 4

The promotional tool in which a salesperson communicates one-on-one with potential customers is

Accepted Answer

A)  direct mail. 
B)  personal selling. 
C)  television. 
D)  radio. 
E)  magazines. 
A)  direct mail. 
B)  personal selling. 
C)  television. 
D)  radio. 
E)  magazines.

Question 5

Mega Computer, a computer manufacturer, is using direct mail to send 10 percent off coupons to its list of potential customers. This strategy is called a ________ strategy.

Accepted Answer

A)  pull 
B)  product 
C)  position 
D)  push 
E)  place 
A)  pull 
B)  product 
C)  position 
D)  push 
E)  place

Question 6

Which of the following is correct with regard to the pricing of new products?

Accepted Answer

A)  There are two basic strategies available: follow-the-leader and price leadership. 
B)  Price skimming is more effective than penetration pricing. 
C)  Penetration pricing is generally more effective than price skimming. 
D)  Price skimming involves trying to sell a new product only to customers with the highest income levels. 
E)  Penetration pricing is designed to stimulate trial purchase. 
A)  There are two basic strategies available: follow-the-leader and price leadership. 
B)  Price skimming is more effective than penetration pricing. 
C)  Penetration pricing is generally more effective than price skimming. 
D)  Price skimming involves trying to sell a new product only to customers with the highest income levels. 
E)  Penetration pricing is designed to stimulate trial purchase.

Question 7

The ultimate objective of any promotion is to sell more products.

Accepted Answer

A) True 
 B)False

Question 8

A push strategy appeals directly to consumers who "push" their local retailer to carry the product.

Accepted Answer

A) True 
 B)False

Question 9

Describe the elements of the promotional mix.

Accepted Answer

The promotional mix consists of advertis

Question 10

Channels of distribution always contain a manufacturer and an end user.

Accepted Answer

A) True 
 B)False

Question 11

A distribution channel is

Accepted Answer

A)  an intermediary who sells products directly to consumers. 
B)  an intermediary who sells products to other businesses for resale to final consumers. 
C)  the combination of distribution channels by which a firm gets its products to end users. 
D)  an individual or firm that helps to distribute a product. 
E)  a network of independent companies through which a product passes from producer to end user. 
A)  an intermediary who sells products directly to consumers. 
B)  an intermediary who sells products to other businesses for resale to final consumers. 
C)  the combination of distribution channels by which a firm gets its products to end users. 
D)  an individual or firm that helps to distribute a product. 
E)  a network of independent companies through which a product passes from producer to end user.

Question 12

It has been shown that a pull strategy is generally more effective than a push strategy because a pull strategy shows that consumers actually want the product.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following best represents the formula for the break-even point?

Accepted Answer

A)  Total variable costs divided by (price minus variable costs) 
B)  Total variable costs divided by (price minus fixed costs) 
C)  Total fixed costs divided by (price minus variable costs) 
D)  Total fixed costs divided by (price minus fixed costs) 
E)  Total revenue divided by (price minus fixed costs) 
A)  Total variable costs divided by (price minus variable costs) 
B)  Total variable costs divided by (price minus fixed costs) 
C)  Total fixed costs divided by (price minus variable costs) 
D)  Total fixed costs divided by (price minus fixed costs) 
E)  Total revenue divided by (price minus fixed costs)

Question 14

The markup percentage is determined by dividing the markup by the sales price.

Accepted Answer

A) True 
 B)False

Question 15

A good example of cost-oriented pricing is theatre ticket prices for Hollywood films.

Accepted Answer

A) True 
 B)False

Question 16

If the cost of one unit of product is $12 and the store sells the product for $22, what is the markup percentage?

Accepted Answer

A)  32 percent 
B)  41 percent 
C)  45 percent 
D)  21 percent 
E)  66 percent 
A)  32 percent 
B)  41 percent 
C)  45 percent 
D)  21 percent 
E)  66 percent

Question 17

What information is provided to the manager by performing a break-even analysis?

Accepted Answer

A)  The break-even point identifies the total costs. 
B)  The break-even point identifies the point where variable costs equal fixed costs. 
C)  Sales volume above the break-even point makes a profit for the firm. 
D)  The break-even point identifies the amount of markup. 
E)  The break-even point identifies the intersection of the demand and supply curves. 
A)  The break-even point identifies the total costs. 
B)  The break-even point identifies the point where variable costs equal fixed costs. 
C)  Sales volume above the break-even point makes a profit for the firm. 
D)  The break-even point identifies the amount of markup. 
E)  The break-even point identifies the intersection of the demand and supply curves.

Question 18

________ attempts to build goodwill with customers by performing and publicizing a company's public service activities.

Accepted Answer

A)  Personal selling 
B)  Public relations 
C)  Advertising 
D)  Sales promotion 
E)  Publicity 
A)  Personal selling 
B)  Public relations 
C)  Advertising 
D)  Sales promotion 
E)  Publicity

Question 19

This communications vehicle is highly segmented, allows for excellent visual communication, and is long-lived, but requires a long lead-time.

Accepted Answer

A)  Online 
B)  Television 
C)  Magazines 
D)  Newspaper 
E)  Outdoor 
A)  Online 
B)  Television 
C)  Magazines 
D)  Newspaper 
E)  Outdoor

Question 20

Where must all consumer product distribution channels begin?

Accepted Answer

A)  The industrial user 
B)  The retailer 
C)  The government 
D)  The wholesaler 
E)  The manufacturer/producer 
A)  The industrial user 
B)  The retailer 
C)  The government 
D)  The wholesaler 
E)  The manufacturer/producer

What is the best definition of the term fixed costs?

Of all transportation modes, ________ are the least expensive.

Which of the following pricing strategies has stimulation of sales as a higher priority than maximization of profits?

The promotional tool in which a salesperson communicates one-on-one with potential customers is

Mega Computer, a computer manufacturer, is using direct mail to send 10 percent off coupons to its list of potential customers. This strategy is called a ________ strategy.

Which of the following is correct with regard to the pricing of new products?

The ultimate objective of any promotion is to sell more products.

A push strategy appeals directly to consumers who "push" their local retailer to carry the product.

Describe the elements of the promotional mix.

Channels of distribution always contain a manufacturer and an end user.

A distribution channel is

It has been shown that a pull strategy is generally more effective than a push strategy because a pull strategy shows that consumers actually want the product.

Which of the following best represents the formula for the break-even point?

The markup percentage is determined by dividing the markup by the sales price.

A good example of cost-oriented pricing is theatre ticket prices for Hollywood films.

If the cost of one unit of product is $12 and the store sells the product for $22, what is the markup percentage?

What information is provided to the manager by performing a break-even analysis?

________ attempts to build goodwill with customers by performing and publicizing a company's public service activities.

This communications vehicle is highly segmented, allows for excellent visual communication, and is long-lived, but requires a long lead-time.

Where must all consumer product distribution channels begin?

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship, Small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Money and Banking

Finacial Decisions and Risk Management

Filters

Exam 13: Pricing, Promotion, and Distributing Products

What is the best definition of the term fixed costs?

Of all transportation modes, ________ are the least expensive.

Which of the following pricing strategies has stimulation of sales as a higher priority than maximization of profits?

The promotional tool in which a salesperson communicates one-on-one with potential customers is

Mega Computer, a computer manufacturer, is using direct mail to send 10 percent off coupons to its list of potential customers. This strategy is called a ________ strategy.

Which of the following is correct with regard to the pricing of new products?

The ultimate objective of any promotion is to sell more products.

A push strategy appeals directly to consumers who "push" their local retailer to carry the product.

Describe the elements of the promotional mix.

Channels of distribution always contain a manufacturer and an end user.

A distribution channel is

It has been shown that a pull strategy is generally more effective than a push strategy because a pull strategy shows that consumers actually want the product.

Which of the following best represents the formula for the break-even point?

The markup percentage is determined by dividing the markup by the sales price.

A good example of cost-oriented pricing is theatre ticket prices for Hollywood films.

If the cost of one unit of product is $12 and the store sells the product for $22, what is the markup percentage?

What information is provided to the manager by performing a break-even analysis?

________ attempts to build goodwill with customers by performing and publicizing a company's public service activities.

This communications vehicle is highly segmented, allows for excellent visual communication, and is long-lived, but requires a long lead-time.

Where must all consumer product distribution channels begin?

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship, Small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Money and Banking

Finacial Decisions and Risk Management

Filters