MKT 571 Final Examination
1. When customers buy on the basis of a reference price or because the price conveys a particular quality image to them, they are being influenced by __________.
a. value pricing
b. the psychology of pricing
c. the going-rates of competitors
d. value augmented by perception
e. an aggregated marketing plan for pricing
2. A common mistake in pricing is __________.
a. setting prices according to demand
b. revising prices too often
c. considering price and price competition as a key problem in marketing
d. ignoring costs when setting prices
e. setting prices independently of the rest of the marketing mix
3. A market segment has a large number of buyers. High initial price does not attract competitors to the market, but it communicates superior product image. In this segment a __________ is the best strategy.
a. market-skimming pricing
b. product quality leadership
c. maximum current revenue
d. market-penetration pricing
e. maximum sales growth
4. __________ are costs that do not vary with production or sales revenue.
a. Total costs
b. Average costs
c. Variable costs
d. Fixed costs
e. Marginal costs
5. Every time Nike doubles the total number of shoes it has sold, its marketing cost structure falls by a predictable percentage.
This is an example of the __________.
a. leverage effect
b. activity-based pricing concept
c. experience curve
d. elasticity consumer exhibit for shoe prices
e. target costing principle
6. A maker of generic skateboard decks (blanks) for shops to customize incurs a variable cost of $12 per blank and fixed costs of $500,000. To earn a 20 percent markup on selling price, the manufacturer would charge __________ for each of the 100,000 blanks it expects to sell.
7. Lucinda is a maker of wine charms (small, decorative jewelry loops put on wineglass stems to set your glass apart from those of other partiers), and has a variable cost