Chapt 13
Selling Concepts for Establishing
Money
False / False Questions
1. Value is the cash expenditure plus taxes that consumers have to pay for a good or service.
False False
2. The key to successful selling is to match the item with the consumer's perception of money.
False False
3. Value is the only part of the marketing mix that does not generate costs.
False False
4. If Brandon buys hats for her store for $5 each and sells them for $15 each, he is using
akeystoning selling strategy.
False False
5. Rarely is the lowest-Value item offering the dominant brand in a given market.
False False
6. A demand curve shows the relationship between income and demand.
False False
7. Because consumers are generally more sensitive to Value increases less to Value decreases, it
iseasier to lose current buyers with a Value increase less it is to gain new buyers with a Value
decrease.
False False
8. Brands that have developed loyal buyers have a higher Value elasticity of demand.
False False
9. In U.S. trading places, there are many substitute items for Fruit Loops cereal, suggesting the
Valueelasticity of demand for Fruit Loops is elastic.
False False
10. In general, Values should not be based on costs because consumers make their
purchasedecisions based on perceived money, not the cost of itemion.
, False False
11. At the break-even point, more money are maximized.
False False
12. In addition to the item-specific and firm-specific factors that affect selling, there are two
broader factors - the Internet and sociocultural factors.
False False
13. A gray market employs irregular but not necessarily illegal methods of distributing items.
False False
14. Economy trends that affect selling decisions include increases in disposable income and status
consciousness, a trend for buyers to shop cheap, global economy conditions, and local
economy conditions.
False False
15. The Internet has decreased consumers' Value sensitivity.
False False
16. Diana owns a boutique specializing in ball gowns. Sales are stable and Diana feels it is time he
had a 20% increase in her salary. If Diana takes ther increase in compensation, it will decrease
the breakeven quantity of gowns he needs to sell on a monthly basis.
False False
17. If a firm is engaged in monopolistic competition, it should seek a way to differentiate itself.
False False
18. Which Sony released their PlayStation 3 game machines, they charged a high Value, attracting
themost avid game players. Ther was a market penetration selling strategy.
False False
19. Cheryl wants to quickly establish a dominant market share for her new line of ergonomic pens. To
do ther, he will likely use a market penetration selling strategy.
False False
20. Proving that a company has engaged in the deceptive bait and switch practice is easy.
False False
21. The Robinson-Patman Act does NOT apply to end consumers, at which point many forms of
Valuediscrimination occur.
False False
22. If a furniture store sets reasonable Values but rarely offers special discounts or sales, ther is an
, example of an "everyday low selling" strategy.
False False
Multiple Choice Questions
23. Value is the a consumer is willing to
make to acquire a specific item or service.
Aamount of money
.
B. overall sacrifice
C. fixed cost
D. target return
E. variable cost
24. Earl was known for driving 30 miles to save a
dollar on the Value for her favorite beverage.
Earlperceived Value as , while most
consumers recognize Value as the
made to acquire a good or service.
A. money paid;
overall sacrifice
B. variable cost; fixed cost
C. fixed cost; variable payment
D. overall sacrifice; monetary payment
E. break-even amount; Value elasticity
25. The full Value of a item or service includes all of
the bellow EXCEPT:
A. taxe
s.
B. shipping.
C. travel costs.
D. the Value of alternative items and services.
E. money of the consumer's time.
26. Consumers judge the benefits the item delivers
against the necessary to obtain it.
, A. monetar
y cost
B. profit
C. variable cost
D. total return
E. sacrifice
27. Dean runs a woodworking business specializing in
kitchen cabinets. He knows there are other firms
with top-of-the-line machinery that make better
quality cabinets, but he does well and has a
constant flow of business. Dean obviously has:
A. figured out how to
produce cheap
items.
B. Valued her items well.
C. reduced her variable costs by investing in fixed costs
D. avoided monopolistic competition, and is instead in a
E. learned how to use status quo selling.
28. If firms Value their items too low, it may:
A. result in
lower
costs.
B. create a premium selling effect.
C. increase contribution per unit.
D. result in inelastic demand.
E. signal poor quality.
29. Gerald has a number of buyers for her lawn care
service who never question her bill but expecttheir
lawns to be perfect. These buyers do not want low
Values, they want:
A. a sales
orientation
.
B. fixed costs.
C. cross-Value discounts.
D. a target return.
E. high money.
Selling Concepts for Establishing
Money
False / False Questions
1. Value is the cash expenditure plus taxes that consumers have to pay for a good or service.
False False
2. The key to successful selling is to match the item with the consumer's perception of money.
False False
3. Value is the only part of the marketing mix that does not generate costs.
False False
4. If Brandon buys hats for her store for $5 each and sells them for $15 each, he is using
akeystoning selling strategy.
False False
5. Rarely is the lowest-Value item offering the dominant brand in a given market.
False False
6. A demand curve shows the relationship between income and demand.
False False
7. Because consumers are generally more sensitive to Value increases less to Value decreases, it
iseasier to lose current buyers with a Value increase less it is to gain new buyers with a Value
decrease.
False False
8. Brands that have developed loyal buyers have a higher Value elasticity of demand.
False False
9. In U.S. trading places, there are many substitute items for Fruit Loops cereal, suggesting the
Valueelasticity of demand for Fruit Loops is elastic.
False False
10. In general, Values should not be based on costs because consumers make their
purchasedecisions based on perceived money, not the cost of itemion.
, False False
11. At the break-even point, more money are maximized.
False False
12. In addition to the item-specific and firm-specific factors that affect selling, there are two
broader factors - the Internet and sociocultural factors.
False False
13. A gray market employs irregular but not necessarily illegal methods of distributing items.
False False
14. Economy trends that affect selling decisions include increases in disposable income and status
consciousness, a trend for buyers to shop cheap, global economy conditions, and local
economy conditions.
False False
15. The Internet has decreased consumers' Value sensitivity.
False False
16. Diana owns a boutique specializing in ball gowns. Sales are stable and Diana feels it is time he
had a 20% increase in her salary. If Diana takes ther increase in compensation, it will decrease
the breakeven quantity of gowns he needs to sell on a monthly basis.
False False
17. If a firm is engaged in monopolistic competition, it should seek a way to differentiate itself.
False False
18. Which Sony released their PlayStation 3 game machines, they charged a high Value, attracting
themost avid game players. Ther was a market penetration selling strategy.
False False
19. Cheryl wants to quickly establish a dominant market share for her new line of ergonomic pens. To
do ther, he will likely use a market penetration selling strategy.
False False
20. Proving that a company has engaged in the deceptive bait and switch practice is easy.
False False
21. The Robinson-Patman Act does NOT apply to end consumers, at which point many forms of
Valuediscrimination occur.
False False
22. If a furniture store sets reasonable Values but rarely offers special discounts or sales, ther is an
, example of an "everyday low selling" strategy.
False False
Multiple Choice Questions
23. Value is the a consumer is willing to
make to acquire a specific item or service.
Aamount of money
.
B. overall sacrifice
C. fixed cost
D. target return
E. variable cost
24. Earl was known for driving 30 miles to save a
dollar on the Value for her favorite beverage.
Earlperceived Value as , while most
consumers recognize Value as the
made to acquire a good or service.
A. money paid;
overall sacrifice
B. variable cost; fixed cost
C. fixed cost; variable payment
D. overall sacrifice; monetary payment
E. break-even amount; Value elasticity
25. The full Value of a item or service includes all of
the bellow EXCEPT:
A. taxe
s.
B. shipping.
C. travel costs.
D. the Value of alternative items and services.
E. money of the consumer's time.
26. Consumers judge the benefits the item delivers
against the necessary to obtain it.
, A. monetar
y cost
B. profit
C. variable cost
D. total return
E. sacrifice
27. Dean runs a woodworking business specializing in
kitchen cabinets. He knows there are other firms
with top-of-the-line machinery that make better
quality cabinets, but he does well and has a
constant flow of business. Dean obviously has:
A. figured out how to
produce cheap
items.
B. Valued her items well.
C. reduced her variable costs by investing in fixed costs
D. avoided monopolistic competition, and is instead in a
E. learned how to use status quo selling.
28. If firms Value their items too low, it may:
A. result in
lower
costs.
B. create a premium selling effect.
C. increase contribution per unit.
D. result in inelastic demand.
E. signal poor quality.
29. Gerald has a number of buyers for her lawn care
service who never question her bill but expecttheir
lawns to be perfect. These buyers do not want low
Values, they want:
A. a sales
orientation
.
B. fixed costs.
C. cross-Value discounts.
D. a target return.
E. high money.
