Question 1

A break-even analysis is used to determine how many units of a product must be sold at a given price before the company begins to make a profit.

Accepted Answer

A) True 
 B)False

Question 2

What is setting an initially low price to establish a new product in the market called?

Accepted Answer

A)  Penetration pricing
B)  Low ball pricing
C)  Trial pricing
D)  Price skimming
E)  UnderpricingF) A) and E)
G) A) and C)

Question 3

Which of the following is pricing that considers the firm's goal of making a profit and its need to cover production costs?

Accepted Answer

A)  Revenue-oriented pricing
B)  Cost-oriented pricing
C)  Profit-oriented pricing
D)  Production-oriented pricing
E)  Earnings-oriented pricingF) None of the above
G) All of the above

Question 4

Sara is selling posters at the sale price of $12.00,and the markup percentage is 35 percent.What is the dollar amount of the markup?

Accepted Answer

A)  $7.80
B)  $4.20
C)  $7.75
D)  $3.50
E)  None of theseF) A) and E)
G) C) and E)

Question 5

A fashion retailer would like to hit the break-even point as late as possible in the product life cycle so profits will be maximized.

Accepted Answer

A) True 
 B)False

Question 6

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)  placeF) B) and C)
G) A) and B)

Question 7

List three forms of direct response retailing.

Accepted Answer

Mail order (catalogue)marketin...

Question 8

How are price lining and psychological pricing used to determine prices of products?

Accepted Answer

Price lining is the practice of offering...

Question 9

What pricing objectives are implied by penetration and skimming?

Accepted Answer

The primary objective of marke...

Question 10

What is a channel captain?

Accepted Answer

A channel captain is the chann...

Question 11

What is the amount added to an item's cost in order to sell it at a profit called?

Accepted Answer

A)  Spread
B)  Profit share
C)  Margin
D)  Increase
E)  MarkupF) A) and B)
G) A) and C)

Question 12

Which of the following is correct with regard to the various media?

Accepted Answer

A)  About twice as much is spent on advertising in magazines than is spent on newspapers.
B)  More money is spent on magazine advertising than on online ads
C)  Radio stations are generally not highly segmented into listening categories.
D)  Billboard messages are relatively expensive.
E)  People tend to use radio as "background" while they are doing other things.F) B) and C)
G) A) and E)

Question 13

Which of the following modes of transportation is used primarily to transport heavy,bulky items such as cars,steel,and coal?

Accepted Answer

A)  Air
B)  Pipeline
C)  Trucks
D)  Water
E)  RailroadsF) B) and D)
G) B) and C)

Question 14

What is the appeal of merchandise in a factory outlet?

Accepted Answer

A)  The outlet stores keep prices low by locating in a low rent area and operating on a cash only basis.
B)  The outlet is organized into different departments such as children's clothing,bedding,drapes,and men's clothing.
C)  The merchandise consists of many brand-name clothing,groceries,and appliances.
D)  Prices are lower because the outlet is owned by the manufacturer and bypasses intermediaries.
E)  Prices are lower because the outlet owners purchase the overstocked merchandise from manufacturers or large chains at a reduced price.F) A) and B)
G) C) and D)

Question 15

Identify three services provided by full-service merchant wholesalers.

Accepted Answer

Credit,storage,marketing,deliv...

Question 16

What are the advantages and disadvantages of public relations?

Accepted Answer

If it is done well,public relations crea...

Question 17

What is the fundamental difference between retailers and wholesalers?

Accepted Answer

The fundamental difference is that retai...

Question 18

The most negative aspect of publicity is that

Accepted Answer

A)  it is expensive.
B)  it isn't believable to many people.
C)  it isn't that important.
D)  it is viewed as being biased.
E)  it isn't controllable by the company.F) A) and E)
G) B) and D)

Question 19

List one advantage and one disadvantage of using trucks for transportation.

Accepted Answer

The advantages of trucks inclu...

Question 20

Which of the following is the process of determining what the customer pays and what the seller receives in exchange for a product?

Accepted Answer

A)  Charging
B)  Appraising
C)  Valuing
D)  Costing
E)  PricingF) C) and D)
G) B) and E)

Exam 13: Pricing,promoting,and Distributing Products

Which of the following modes of transportation is used primarily to transport heavy,bulky items such as cars,steel,and coal?

Correct AnswerverifiedShow Answer

What is the amount added to an item's cost in order to sell it at a profit called?

Correct AnswerverifiedShow Answer

List three forms of direct response retailing.

Correct AnswerverifiedMail order (catalogue)marketin...View AnswerShow Answer

What pricing objectives are implied by penetration and skimming?

Correct AnswerverifiedThe primary objective of marke...View AnswerShow Answer

Sara is selling posters at the sale price of $12.00,and the markup percentage is 35 percent.What is the dollar amount of the markup?

Correct AnswerverifiedShow Answer

What is a channel captain?

Correct AnswerverifiedA channel captain is the chann...View AnswerShow Answer

Which of the following is correct with regard to the various media?

Correct AnswerverifiedShow Answer

Identify three services provided by full-service merchant wholesalers.

Correct AnswerverifiedCredit,storage,marketing,deliv...View AnswerShow Answer

What is setting an initially low price to establish a new product in the market called?

Correct AnswerverifiedShow Answer

What is the fundamental difference between retailers and wholesalers?

Correct AnswerverifiedThe fundamental difference is that retai...View AnswerShow Answer

Which of the following is the process of determining what the customer pays and what the seller receives in exchange for a product?

Correct AnswerverifiedShow Answer

The most negative aspect of publicity is that

Correct AnswerverifiedShow Answer

A break-even analysis is used to determine how many units of a product must be sold at a given price before the company begins to make a profit.

Correct AnswerverifiedShow Answer

Which of the following is pricing that considers the firm's goal of making a profit and its need to cover production costs?

Correct AnswerverifiedShow Answer

How are price lining and psychological pricing used to determine prices of products?

Correct AnswerverifiedPrice lining is the practice of offering...View AnswerShow Answer

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.

Correct AnswerverifiedShow Answer

What is the appeal of merchandise in a factory outlet?

Correct AnswerverifiedShow Answer

What are the advantages and disadvantages of public relations?

Correct AnswerverifiedIf it is done well,public relations crea...View AnswerShow Answer

List one advantage and one disadvantage of using trucks for transportation.

Correct AnswerverifiedThe advantages of trucks inclu...View AnswerShow Answer

A fashion retailer would like to hit the break-even point as late as possible in the product life cycle so profits will be maximized.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Mail order (catalogue)marketin...
View Answer

Correct Answer
verified
The primary objective of marke...
View Answer

Correct Answer
verified

Correct Answer
verified
A channel captain is the chann...
View Answer

Correct Answer
verified

Correct Answer
verified
Credit,storage,marketing,deliv...
View Answer

Correct Answer
verified

Correct Answer
verified
The fundamental difference is that retai...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Price lining is the practice of offering...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
If it is done well,public relations crea...
View Answer

Correct Answer
verified
The advantages of trucks inclu...
View Answer

Correct Answer
verified