BUSN 311 STUDY CORRECT QUESTIONS AND
ANSWERS SET A+
✔✔Which one is the right pair for (a) and (b) in the graph of product life cycle (PLC)?
A. (a)Sales (b)Profit
B. (a)Cost (b)Margin
C. (a)Revenue (b)Cost
D. (a)Promotion (b)Sales
E. (a)Expense (b)Revenue - ✔✔A. (a)Sales (b)Profit
✔✔In the product life cycle (PLC), _______ stage can be characterized as: rapidly rising
sales, average cost per customer, and growing number of competitors
A.product development
B.introduction
C.growth
D.maturity
E.decline - ✔✔C.Growth
✔✔Which one is NOT an example of the fixed cost?
A.rent
B.executive salaries
C.packaging
D.interest
E.all of the above are the fixed cost - ✔✔C.packaging
✔✔Which one is the right pair for (a) and (b) in two different pricing approaches?
A. (a)Target (b)Product
B. (a)Product (b)Target
C. (a)Cost (b)Value
D. (a)Value (b)Cost
E. (a)Quality (b)Benefit - ✔✔C.Cost and Value
✔✔If a pricing procedure contains a markup cost, which type of pricing is being used?
, A.target pricing
B.adaptive pricing
C.value-based pricing
D.break-even pricing
E.cost-plus pricing - ✔✔E.Cost-plus pricing
✔✔What type of slope does an elastic demand graph have?
A.strong negative
B.slight negative
C.strong positive
D.slight positive - ✔✔B.slight negative
✔✔Jorge Castilla willingly paid $499 for an Apple iPhone on the day it hit the market,
even though it was far more expensive than cell phones he had bought in the past. He
wasn't concerned about the price; he just wanted to be one of the first on campus to
have this product. Consumers like Jorge are the target of firms using _______ pricing
strategies
A.skimming
B.target
C.predatory
D.penetration
E.promotional - ✔✔A.skimming
✔✔HP gains profits not by selling printers sold in affordable prices but by selling toners
and cartridges with charging them much higher than the production costs. This is an
example of _____ pricing
A.product line pricing
B.optional product pricing
C.captive product pricing
D.product bundle pricing
E.none of the above - ✔✔C.captive product pricing
✔✔When a competitor cuts prices, following are the options what a company can
respond to the competitors price change EXCEPT:
A.reduce price
B.raise perceived value
C.improve quality and increase price
D.launch high-price "fighter brand"
E.all of the above are the options what a company can respond to the competitor's price
cut - ✔✔D.launch high price "fighter brand"
✔✔5 Step model of purchase decision making: Need recognition, _______, ________,
purchase decision and post purchase behavior - ✔✔information search; evaluation of
alternatives
ANSWERS SET A+
✔✔Which one is the right pair for (a) and (b) in the graph of product life cycle (PLC)?
A. (a)Sales (b)Profit
B. (a)Cost (b)Margin
C. (a)Revenue (b)Cost
D. (a)Promotion (b)Sales
E. (a)Expense (b)Revenue - ✔✔A. (a)Sales (b)Profit
✔✔In the product life cycle (PLC), _______ stage can be characterized as: rapidly rising
sales, average cost per customer, and growing number of competitors
A.product development
B.introduction
C.growth
D.maturity
E.decline - ✔✔C.Growth
✔✔Which one is NOT an example of the fixed cost?
A.rent
B.executive salaries
C.packaging
D.interest
E.all of the above are the fixed cost - ✔✔C.packaging
✔✔Which one is the right pair for (a) and (b) in two different pricing approaches?
A. (a)Target (b)Product
B. (a)Product (b)Target
C. (a)Cost (b)Value
D. (a)Value (b)Cost
E. (a)Quality (b)Benefit - ✔✔C.Cost and Value
✔✔If a pricing procedure contains a markup cost, which type of pricing is being used?
, A.target pricing
B.adaptive pricing
C.value-based pricing
D.break-even pricing
E.cost-plus pricing - ✔✔E.Cost-plus pricing
✔✔What type of slope does an elastic demand graph have?
A.strong negative
B.slight negative
C.strong positive
D.slight positive - ✔✔B.slight negative
✔✔Jorge Castilla willingly paid $499 for an Apple iPhone on the day it hit the market,
even though it was far more expensive than cell phones he had bought in the past. He
wasn't concerned about the price; he just wanted to be one of the first on campus to
have this product. Consumers like Jorge are the target of firms using _______ pricing
strategies
A.skimming
B.target
C.predatory
D.penetration
E.promotional - ✔✔A.skimming
✔✔HP gains profits not by selling printers sold in affordable prices but by selling toners
and cartridges with charging them much higher than the production costs. This is an
example of _____ pricing
A.product line pricing
B.optional product pricing
C.captive product pricing
D.product bundle pricing
E.none of the above - ✔✔C.captive product pricing
✔✔When a competitor cuts prices, following are the options what a company can
respond to the competitors price change EXCEPT:
A.reduce price
B.raise perceived value
C.improve quality and increase price
D.launch high-price "fighter brand"
E.all of the above are the options what a company can respond to the competitor's price
cut - ✔✔D.launch high price "fighter brand"
✔✔5 Step model of purchase decision making: Need recognition, _______, ________,
purchase decision and post purchase behavior - ✔✔information search; evaluation of
alternatives
