MKTG 351 - Chapter 20 Exam Questions with Correct Answers Latest Update 2025/2026
Unit margin is based on? - Answers Selling price
Markup is based on? - Answers Acquisition cost
Price elasticity is always positive. - Answers False
Higher price elasticity menas? - Answers More sensitive to demand
Breakeven point = - Answers revenue = costs
CLV stands for? - Answers Customer lifetime value
Higher retention rate means higher CLV. - Answers True
Which of the following affects the CLV negatively? - Answers Higher discount rate
What do marketers typically use to measure customer sentiment? - Answers Multi-scale
question
What does price elasticity of demand do? - Answers Indicates how sensitive or responsive
customers are to changes in price
How is contribution margin calculated? - Answers Sales price per unit - variable cost per unit
Calculating CLV is most helpful for which of the following? - Answers Assessing the viability of
any pricing strategy
What does customer lifetime value indicate? - Answers The net profits that can be earned from
a customer over the entire duration of the relationship
Why is it important to measure customer sentiment? - Answers It can give marketers a sense of
how their brand is performing
A strong commitment to repurchasing a specific brand, despite changes in the marketplace that
may result in brand switching is known as ___. - Answers Brand loyalty
What is an example of an important opinion or behavior a company might want to measure? -
Answers - How loyal customers are towards its brand
- How much do customers like its brand
- How close customers are purchasing its brand
Price elasticity is typically negative. - Answers True
What are marketing metrics? - Answers Indicators needed to measure performance from a
marketing perspective
Unit margin is based on? - Answers Selling price
Markup is based on? - Answers Acquisition cost
Price elasticity is always positive. - Answers False
Higher price elasticity menas? - Answers More sensitive to demand
Breakeven point = - Answers revenue = costs
CLV stands for? - Answers Customer lifetime value
Higher retention rate means higher CLV. - Answers True
Which of the following affects the CLV negatively? - Answers Higher discount rate
What do marketers typically use to measure customer sentiment? - Answers Multi-scale
question
What does price elasticity of demand do? - Answers Indicates how sensitive or responsive
customers are to changes in price
How is contribution margin calculated? - Answers Sales price per unit - variable cost per unit
Calculating CLV is most helpful for which of the following? - Answers Assessing the viability of
any pricing strategy
What does customer lifetime value indicate? - Answers The net profits that can be earned from
a customer over the entire duration of the relationship
Why is it important to measure customer sentiment? - Answers It can give marketers a sense of
how their brand is performing
A strong commitment to repurchasing a specific brand, despite changes in the marketplace that
may result in brand switching is known as ___. - Answers Brand loyalty
What is an example of an important opinion or behavior a company might want to measure? -
Answers - How loyal customers are towards its brand
- How much do customers like its brand
- How close customers are purchasing its brand
Price elasticity is typically negative. - Answers True
What are marketing metrics? - Answers Indicators needed to measure performance from a
marketing perspective
