BUSN 131 Final Exam Questions Answered Correctly Latest Update 2025-2026
If Nabisco had established a pricing objective of selling one out of every three crackers
consumed in the world, it would have established an objective based on - Answers market share.
The strategy of charging the highest possible price for a product during the introduction stage
of its life-cycle is known as - Answers price skimming.
Craftsman and Kenmore are examples of a store brand. - Answers True
Manufacturers, wholesalers, and retailers do not use negotiated pricing strategies. - Answers
False
If Macy's department store managers looked at Dillard's department store prices for identical
national brands and, based on that information, decided to advertise a sale on those products,
they would be exercising which pricing method? - Answers Competition-based
William Clark wants to know his breakeven point. His selling price is $20 per unit, his fixed costs
are $6,000, and the variable costs per unit are $6. What is his breakeven quantity? - Answers
428.6 units
A name, term, symbol, design, or any combination of these that identifies a product and
distinguishes it from a competitor's product is called packaging. - Answers False
A product mix is a combination of all the information a producer uses to sell its product to the
public. - Answers False
WD-40, Inc. markets only one product, its namesake chemical lubricant. The company offers the
product in several different container sizes: smaller ones for household use, and larger ones for
industrial use. WD-40 would be considered as having a - Answers narrow product mix.
In cost-based pricing, a producer adds an amount to the total production cost to provide a profit.
The amount added to the production cost is called a - Answers markup.
All of the following are characteristics of warehouse showroom retailers except - Answers
members-only stores.
In the past, Tupperware used only personal selling to sell its products; it now uses other
methods as well to reach its target market. Together these various methods are Tupperware's
_____. - Answers promotion mix
Bill Yee was granted franchise rights from McDonald's for the community in which he lives.
McDonald's practice of granting franchises for specific geographic areas is commonly known
as selective distribution. - Answers True
Susan Smith, ad campaign manager for Coca-Cola, is making final changes to the content of an
ad's message. She is talking with network distribution companies about when the ad will air, and
, she is discussing expected effects of the ad on consumers with commercial artists. Thus, she
is in which stage of the ad campaign development process? - Answers Execution of the
campaign.
Post Oak Mall contains two department stores, numerous specialty stores, a movies theater,
and various restaurants. Since it does not contain any convenience stores, Post Oak Mall is an
example of a(n) _____ shopping center. - Answers regional
Ski XYZ Company manufactured too many ski jackets, overestimating the quantity retailers
would purchase. So Ski XYZ has offered its customers a lower cost of purchase, 20 percent
lower, if they order ten or more jackets. The company is displaying an example of what? -
Answers Buying allowances
A clothing retailer has been striving to reduce the costs of its inventory, but many of its
customers are switching to competitors because they do not want to wait for the retailer to
order the items. This retailer is experiencing _____. - Answers stock-out costs
Advertising whose purpose is to increase the demand for all brands of a good or service is
called _____. - Answers primary-demand advertising
Sears would like to promote its new line of dishwashers with the multi-flow system. Since this is
a new feature, Sears needs to be able to demonstrate the product. Sears will most likely use
_____. - Answers advertising
Jessica decides to order smaller amounts of inventory at a time for her arts and crafts store.
She is obviously concerned about _____ costs. - Answers holding
Online booksellers that seem to be following the same business activities are said to be using a
B2B business model. - Answers False
Social media online promotions should never be integrated with more traditional or offline
promotions. - Answers False
Rosie's Flowers Company in Tulips, Ohio, uses an e-commerce software program on its website
to allow customers to enter their own orders for flowers that are delivered by the end of the next
business day. Rosie's Flowers follows a(n) ____ model. - Answers B2C
A ____ is a source of revenue flowing into the firm. - Answers revenue stream
Rebecca is willing to invest time and money in attracting and retaining customers for her Mary
Kay cosmetics business because she knows that - Answers one loyal customer's repeated
purchases for life will be well worth the expense.
Which of the following would be considered a revenue stream? - Answers All of the above sales
of product, sales of services, advertising, subscription fees
If Nabisco had established a pricing objective of selling one out of every three crackers
consumed in the world, it would have established an objective based on - Answers market share.
The strategy of charging the highest possible price for a product during the introduction stage
of its life-cycle is known as - Answers price skimming.
Craftsman and Kenmore are examples of a store brand. - Answers True
Manufacturers, wholesalers, and retailers do not use negotiated pricing strategies. - Answers
False
If Macy's department store managers looked at Dillard's department store prices for identical
national brands and, based on that information, decided to advertise a sale on those products,
they would be exercising which pricing method? - Answers Competition-based
William Clark wants to know his breakeven point. His selling price is $20 per unit, his fixed costs
are $6,000, and the variable costs per unit are $6. What is his breakeven quantity? - Answers
428.6 units
A name, term, symbol, design, or any combination of these that identifies a product and
distinguishes it from a competitor's product is called packaging. - Answers False
A product mix is a combination of all the information a producer uses to sell its product to the
public. - Answers False
WD-40, Inc. markets only one product, its namesake chemical lubricant. The company offers the
product in several different container sizes: smaller ones for household use, and larger ones for
industrial use. WD-40 would be considered as having a - Answers narrow product mix.
In cost-based pricing, a producer adds an amount to the total production cost to provide a profit.
The amount added to the production cost is called a - Answers markup.
All of the following are characteristics of warehouse showroom retailers except - Answers
members-only stores.
In the past, Tupperware used only personal selling to sell its products; it now uses other
methods as well to reach its target market. Together these various methods are Tupperware's
_____. - Answers promotion mix
Bill Yee was granted franchise rights from McDonald's for the community in which he lives.
McDonald's practice of granting franchises for specific geographic areas is commonly known
as selective distribution. - Answers True
Susan Smith, ad campaign manager for Coca-Cola, is making final changes to the content of an
ad's message. She is talking with network distribution companies about when the ad will air, and
, she is discussing expected effects of the ad on consumers with commercial artists. Thus, she
is in which stage of the ad campaign development process? - Answers Execution of the
campaign.
Post Oak Mall contains two department stores, numerous specialty stores, a movies theater,
and various restaurants. Since it does not contain any convenience stores, Post Oak Mall is an
example of a(n) _____ shopping center. - Answers regional
Ski XYZ Company manufactured too many ski jackets, overestimating the quantity retailers
would purchase. So Ski XYZ has offered its customers a lower cost of purchase, 20 percent
lower, if they order ten or more jackets. The company is displaying an example of what? -
Answers Buying allowances
A clothing retailer has been striving to reduce the costs of its inventory, but many of its
customers are switching to competitors because they do not want to wait for the retailer to
order the items. This retailer is experiencing _____. - Answers stock-out costs
Advertising whose purpose is to increase the demand for all brands of a good or service is
called _____. - Answers primary-demand advertising
Sears would like to promote its new line of dishwashers with the multi-flow system. Since this is
a new feature, Sears needs to be able to demonstrate the product. Sears will most likely use
_____. - Answers advertising
Jessica decides to order smaller amounts of inventory at a time for her arts and crafts store.
She is obviously concerned about _____ costs. - Answers holding
Online booksellers that seem to be following the same business activities are said to be using a
B2B business model. - Answers False
Social media online promotions should never be integrated with more traditional or offline
promotions. - Answers False
Rosie's Flowers Company in Tulips, Ohio, uses an e-commerce software program on its website
to allow customers to enter their own orders for flowers that are delivered by the end of the next
business day. Rosie's Flowers follows a(n) ____ model. - Answers B2C
A ____ is a source of revenue flowing into the firm. - Answers revenue stream
Rebecca is willing to invest time and money in attracting and retaining customers for her Mary
Kay cosmetics business because she knows that - Answers one loyal customer's repeated
purchases for life will be well worth the expense.
Which of the following would be considered a revenue stream? - Answers All of the above sales
of product, sales of services, advertising, subscription fees
