Question 1

Product contribution refers to the production of a product for as long as the revenue from selling it exceeds the cost of producing it.

Accepted Answer

A) True 
 B)False

Question 2

Business products are classified into two categories. What are they?

Accepted Answer

A)  special use and general use 
B)  capital and expense 
C)  installation and accessory 
D)  revenue and expense 
A)  special use and general use 
B)  capital and expense 
C)  installation and accessory 
D)  revenue and expense

Question 3

Which of the following is NOT one of the stages in the product life cycle?

Accepted Answer

A)  introduction 
B)  decline 
C)  growth 
D)  peak 
A)  introduction 
B)  decline 
C)  growth 
D)  peak

Question 4

Which of the following is the act of informing, persuading, and reminding the target market about a product?

Accepted Answer

A)  distribution 
B)  operations 
C)  marketing 
D)  promotion 
A)  distribution 
B)  operations 
C)  marketing 
D)  promotion

Question 5

In which of the following stages of the product life cycle are you most likely to find the manufacturer using a line extension strategy?

Accepted Answer

A)  introduction 
B)  maturity 
C)  development 
D)  growth 
A)  introduction 
B)  maturity 
C)  development 
D)  growth

Question 6

What is the process of strategically managing the efficient flow and storage of raw materials, inventory, and finished goods from the point of origin to the point of consumption?

Accepted Answer

A)  inventory control 
B)  logistics 
C)  just-in-time 
D)  sourcing coordination 
A)  inventory control 
B)  logistics 
C)  just-in-time 
D)  sourcing coordination

Question 7

George has a strong preference for Coffee Place, will drive out of his way to go there, and tells all of his friends about the restaurant. What is George demonstrating?

Accepted Answer

A)  brand advocacy 
B)  brand exclusivity 
C)  brand loyalty 
D)  brand preference 
A)  brand advocacy 
B)  brand exclusivity 
C)  brand loyalty 
D)  brand preference

Question 8

When setting the price of a product or service, what must the price equal?

Accepted Answer

A)  that of your competitors 
B)  the perceived value to target customers 
C)  the cost of your product plus a markup 
D)  the amount of money consumers can afford 
A)  that of your competitors 
B)  the perceived value to target customers 
C)  the cost of your product plus a markup 
D)  the amount of money consumers can afford

Question 9

What is the term for pricing a product at $399.99 instead of $400 to make the customer view the price as in the $300 range instead of the $400 range?

Accepted Answer

A)  price lining 
B)  odd-even pricing 
C)  minimized pricing 
D)  red-line pricing 
A)  price lining 
B)  odd-even pricing 
C)  minimized pricing 
D)  red-line pricing

Question 10

Mass customization is when the production of goods is not scheduled until an order is placed by the customer specifying the desired configuration.

Accepted Answer

A) True 
 B)False

Question 11

The owner of Mercury Appraisal Company held a ribbon-cutting event when he opened his new business. He invited city dignitaries, representatives from news media, and anyone who might eventually need his services. The presence of news representatives, whom he hoped would cover the event in their respective media, was an attempt to use which of the following elements of the promotional mix?

Accepted Answer

A)  advertising 
B)  sales promotion 
C)  personal selling 
D)  public relations 
A)  advertising 
B)  sales promotion 
C)  personal selling 
D)  public relations

Question 12

What is a promotional strategy in which a manufacturer focuses on stimulating consumer demand for its product, rather than on trying to persuade wholesalers or retailers to carry the product?

Accepted Answer

A)  intensive strategy 
B)  pull strategy 
C)  draw strategy 
D)  push strategy 
A)  intensive strategy 
B)  pull strategy 
C)  draw strategy 
D)  push strategy

Question 13

A fabric manufacturer is doing a breakeven analysis of oilcloth. It costs $15.00 to manufacture a metre of oilcloth. Customers will pay $25 a metre for oilcloth. The company's fixed costs are $10,000. How many metres must the fabric manufacturer sell to break even?

Accepted Answer

A)  400 
B)  667 
C)  1,000 
D)  10,000 
A)  400 
B)  667 
C)  1,000 
D)  10,000

Question 14

Total fixed costs divided by fixed-cost contribution leads to which of the following?

Accepted Answer

A)  profit maximization 
B)  breakeven point in units 
C)  perceived value 
D)  total revenues 
A)  profit maximization 
B)  breakeven point in units 
C)  perceived value 
D)  total revenues

Question 15

Eve Sheisedo Design Inc. has just started manufacturing sets of triangular and rectangular dinner plates. The design company will use wholesalers, retailers, and consumers to get its plates to market. What is this chain collectively called?

Accepted Answer

A)  industrial channel 
B)  consumer channel 
C)  distribution channel 
D)  promotional channel 
A)  industrial channel 
B)  consumer channel 
C)  distribution channel 
D)  promotional channel

Question 16

The Franklin Continental Hotel offers a package of room, breakfast, and parking for $125. What is this strategy?

Accepted Answer

A)  bundling 
B)  combining 
C)  aggregated pricing 
D)  grouping 
A)  bundling 
B)  combining 
C)  aggregated pricing 
D)  grouping

Question 17

When Top-Flite introduced its Strata golf balls with a new dimple design and a more solid core for better flight with metal clubs, it charged three times the price of golf balls currently on the market. This high introductory pricing is an example of which of the following strategies?

Accepted Answer

A)  limited value pricing 
B)  market share pricing 
C)  penetration pricing 
D)  skimming 
A)  limited value pricing 
B)  market share pricing 
C)  penetration pricing 
D)  skimming

Question 18

Which of the following statements best describes the functions performed by channels?

Accepted Answer

A)  Channel functions can easily be eliminated. 
B)  Inventory handling is the least expensive of all functions performed by channel members and can profitably be performed by the manufacturer. 
C)  The average customer understands the importance of channels in maintaining low prices. 
D)  Although channel members can be eliminated, their functions cannot. 
A)  Channel functions can easily be eliminated. 
B)  Inventory handling is the least expensive of all functions performed by channel members and can profitably be performed by the manufacturer. 
C)  The average customer understands the importance of channels in maintaining low prices. 
D)  Although channel members can be eliminated, their functions cannot.

Question 19

What type of pricing strategy do most manufacturing companies use?

Accepted Answer

A)  target return on investment 
B)  profit maximization 
C)  value pricing 
D)  price skimming 
A)  target return on investment 
B)  profit maximization 
C)  value pricing 
D)  price skimming

Question 20

Which of the following is the production of a good or service for which the revenue from selling it exceeds the cost of producing it?

Accepted Answer

A)  profit optimization 
B)  product specialization 
C)  profit maximization 
D)  breakeven production 
A)  profit optimization 
B)  product specialization 
C)  profit maximization 
D)  breakeven production

Product contribution refers to the production of a product for as long as the revenue from selling it exceeds the cost of producing it.

Business products are classified into two categories. What are they?

Which of the following is NOT one of the stages in the product life cycle?

Which of the following is the act of informing, persuading, and reminding the target market about a product?

In which of the following stages of the product life cycle are you most likely to find the manufacturer using a line extension strategy?

What is the process of strategically managing the efficient flow and storage of raw materials, inventory, and finished goods from the point of origin to the point of consumption?

George has a strong preference for Coffee Place, will drive out of his way to go there, and tells all of his friends about the restaurant. What is George demonstrating?

When setting the price of a product or service, what must the price equal?

What is the term for pricing a product at $399.99 instead of $400 to make the customer view the price as in the $300 range instead of the $400 range?

Mass customization is when the production of goods is not scheduled until an order is placed by the customer specifying the desired configuration.

What is a promotional strategy in which a manufacturer focuses on stimulating consumer demand for its product, rather than on trying to persuade wholesalers or retailers to carry the product?

A fabric manufacturer is doing a breakeven analysis of oilcloth. It costs $15.00 to manufacture a metre of oilcloth. Customers will pay $25 a metre for oilcloth. The company's fixed costs are $10,000. How many metres must the fabric manufacturer sell to break even?

Total fixed costs divided by fixed-cost contribution leads to which of the following?

Eve Sheisedo Design Inc. has just started manufacturing sets of triangular and rectangular dinner plates. The design company will use wholesalers, retailers, and consumers to get its plates to market. What is this chain collectively called?

The Franklin Continental Hotel offers a package of room, breakfast, and parking for $125. What is this strategy?

When Top-Flite introduced its Strata golf balls with a new dimple design and a more solid core for better flight with metal clubs, it charged three times the price of golf balls currently on the market. This high introductory pricing is an example of which of the following strategies?

Which of the following statements best describes the functions performed by channels?

What type of pricing strategy do most manufacturing companies use?

Which of the following is the production of a good or service for which the revenue from selling it exceeds the cost of producing it?

Political Environment

Economic Environment

Social Environment

Technological Environment

International Environment

Entrepreneurship and Small Business

Understanding the Business

Forms of Business Ownership

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Marketing

Achieving World-class Operations Management

Accounting for Financial Success

Understanding Money and the Canadian Financial System

Finance

Filters

Exam 14: Creating Marketing Strategies

Product contribution refers to the production of a product for as long as the revenue from selling it exceeds the cost of producing it.

Business products are classified into two categories. What are they?

Which of the following is NOT one of the stages in the product life cycle?

Which of the following is the act of informing, persuading, and reminding the target market about a product?

In which of the following stages of the product life cycle are you most likely to find the manufacturer using a line extension strategy?

What is the process of strategically managing the efficient flow and storage of raw materials, inventory, and finished goods from the point of origin to the point of consumption?

George has a strong preference for Coffee Place, will drive out of his way to go there, and tells all of his friends about the restaurant. What is George demonstrating?

When setting the price of a product or service, what must the price equal?

What is the term for pricing a product at $399.99 instead of $400 to make the customer view the price as in the $300 range instead of the $400 range?

Mass customization is when the production of goods is not scheduled until an order is placed by the customer specifying the desired configuration.

What is a promotional strategy in which a manufacturer focuses on stimulating consumer demand for its product, rather than on trying to persuade wholesalers or retailers to carry the product?

A fabric manufacturer is doing a breakeven analysis of oilcloth. It costs $15.00 to manufacture a metre of oilcloth. Customers will pay $25 a metre for oilcloth. The company's fixed costs are $10,000. How many metres must the fabric manufacturer sell to break even?

Total fixed costs divided by fixed-cost contribution leads to which of the following?

Eve Sheisedo Design Inc. has just started manufacturing sets of triangular and rectangular dinner plates. The design company will use wholesalers, retailers, and consumers to get its plates to market. What is this chain collectively called?

The Franklin Continental Hotel offers a package of room, breakfast, and parking for $125. What is this strategy?

When Top-Flite introduced its Strata golf balls with a new dimple design and a more solid core for better flight with metal clubs, it charged three times the price of golf balls currently on the market. This high introductory pricing is an example of which of the following strategies?

Which of the following statements best describes the functions performed by channels?

What type of pricing strategy do most manufacturing companies use?

Which of the following is the production of a good or service for which the revenue from selling it exceeds the cost of producing it?

Political Environment

Economic Environment

Social Environment

Technological Environment

International Environment

Entrepreneurship and Small Business

Understanding the Business

Forms of Business Ownership

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Marketing

Achieving World-class Operations Management

Accounting for Financial Success

Understanding Money and the Canadian Financial System

Finance

Filters