MKT 300 Exam 3 UKY Hapke – Questions with Detailed
Solutions
price - -the value paid for a product in a marketing exchange
-Which of the following products is characterized by highly elastic demand? - -sports cars
-The extra cost a firm incurs when it produces one more unit of a product is called the _____.
- -marginal cost
-Which of the following relations is used to determine the break-even point in units? - -
Break-even point = (fixed costs) / (per-unit contribution to fixed costs)
-Which method of determining transfer pricing involves dividing all fixed and variable
expenses for a period into the number of units produced? - -actual full cost method
-Which of the following statements best defines the demand curve - -It is the graph of the
quantity of products expected to be sold at various prices, other factors being constant
-What is the pricing objective of a firm that adjusts price levels so it can increase sales
volume to match organizational expenses? - -survival
-Adding to the cost of a product a predetermined percentage of that cost is known as _____.
- -markup pricing
-A retailer purchases a ream of paper at $10, adds $2 to the cost, and then prices the paper
at $12. What is the markup as a percentage of cost? - -20%
-Some colleges charge a higher tuition for certain majors, such as business, engineering,
and medicine. This pricing scheme is known as _____. - -differential pricing
-_____ refers to charging the highest possible price that buyers who most desire a product
will pay. - -Price skimming
-Setting prices at an artificially high level to convey a quality image is a feature of _____
strategy. - -prestige pricing
-A(n) _____ is an independent businessperson who sells complementary products of several
producers in assigned territories and is compensated through commissions without
acquiring title to the products. - -manufacturer's agent
-Which of the following products is most likely to be distributed through intensive
distribution? - -soft drinks
, -The contracting of physical distribution tasks to third parties who do not have managerial
authority within the marketing channel is known as _____. - -outsourcing
-Under which of the following circumstances do courts rule tying agreements as illegal? - -
When a supplier tries to move weaker products along with more popular items
-A food manufacturing company that manufactures processed foods is trying to increase
sales of its products by making them available in all general and convenience stores rather
than just in supermarkets and large department stores. What type of utility is the company
trying to create in this case? - -place utility
-When a manufacturer forbids an intermediary to carry products of competing
manufacturers, the arrangement is known as _____. - -exclusive dealing
-____ includes all transactions in which a buyer intends to consume a product through
personal, family, or household use. - -Retailing
-Slide 36
Which of the following is a characteristic associated with warehouse showrooms? - -
vertical merchandise displays
-Happy Hounds and Horses is a large retailing store that has a huge collection of products
for pets that are sold at low prices. This store would be an example of a - -category killer
-refers to a retail strategy of managing groups of similar, often substitutable products
produced by different manufacturers. - -category management
-Slide 39
___ are independently-owned businesses that take title to goods, assume risks associated
with ownership, and generally buy and resell products to other wholesalers, business
customers, or retailers. - -Merchant wholesalers
-__ are intermediaries that represent buyers and sellers on a permanent basis. - -Agents
-A major goal of integrated marketing communications is to: - -send a consistent message
to customers
-In the typical communication process, a receiver is the individual, group, or organization
that: - -decodes a coded message
-___ refers to demand for a product category rather than for a specific brand of product. - -
Primary demand
-___ is an activity or material that acts as a direct inducement, offering added value or
incentive for a product to resellers, salespeople, or consumers. - -Sales promotion
Solutions
price - -the value paid for a product in a marketing exchange
-Which of the following products is characterized by highly elastic demand? - -sports cars
-The extra cost a firm incurs when it produces one more unit of a product is called the _____.
- -marginal cost
-Which of the following relations is used to determine the break-even point in units? - -
Break-even point = (fixed costs) / (per-unit contribution to fixed costs)
-Which method of determining transfer pricing involves dividing all fixed and variable
expenses for a period into the number of units produced? - -actual full cost method
-Which of the following statements best defines the demand curve - -It is the graph of the
quantity of products expected to be sold at various prices, other factors being constant
-What is the pricing objective of a firm that adjusts price levels so it can increase sales
volume to match organizational expenses? - -survival
-Adding to the cost of a product a predetermined percentage of that cost is known as _____.
- -markup pricing
-A retailer purchases a ream of paper at $10, adds $2 to the cost, and then prices the paper
at $12. What is the markup as a percentage of cost? - -20%
-Some colleges charge a higher tuition for certain majors, such as business, engineering,
and medicine. This pricing scheme is known as _____. - -differential pricing
-_____ refers to charging the highest possible price that buyers who most desire a product
will pay. - -Price skimming
-Setting prices at an artificially high level to convey a quality image is a feature of _____
strategy. - -prestige pricing
-A(n) _____ is an independent businessperson who sells complementary products of several
producers in assigned territories and is compensated through commissions without
acquiring title to the products. - -manufacturer's agent
-Which of the following products is most likely to be distributed through intensive
distribution? - -soft drinks
, -The contracting of physical distribution tasks to third parties who do not have managerial
authority within the marketing channel is known as _____. - -outsourcing
-Under which of the following circumstances do courts rule tying agreements as illegal? - -
When a supplier tries to move weaker products along with more popular items
-A food manufacturing company that manufactures processed foods is trying to increase
sales of its products by making them available in all general and convenience stores rather
than just in supermarkets and large department stores. What type of utility is the company
trying to create in this case? - -place utility
-When a manufacturer forbids an intermediary to carry products of competing
manufacturers, the arrangement is known as _____. - -exclusive dealing
-____ includes all transactions in which a buyer intends to consume a product through
personal, family, or household use. - -Retailing
-Slide 36
Which of the following is a characteristic associated with warehouse showrooms? - -
vertical merchandise displays
-Happy Hounds and Horses is a large retailing store that has a huge collection of products
for pets that are sold at low prices. This store would be an example of a - -category killer
-refers to a retail strategy of managing groups of similar, often substitutable products
produced by different manufacturers. - -category management
-Slide 39
___ are independently-owned businesses that take title to goods, assume risks associated
with ownership, and generally buy and resell products to other wholesalers, business
customers, or retailers. - -Merchant wholesalers
-__ are intermediaries that represent buyers and sellers on a permanent basis. - -Agents
-A major goal of integrated marketing communications is to: - -send a consistent message
to customers
-In the typical communication process, a receiver is the individual, group, or organization
that: - -decodes a coded message
-___ refers to demand for a product category rather than for a specific brand of product. - -
Primary demand
-___ is an activity or material that acts as a direct inducement, offering added value or
incentive for a product to resellers, salespeople, or consumers. - -Sales promotion
