Marketing Quiz 19

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Author:
lkillebr
ID:
79844
Filename:
Marketing Quiz 19
Updated:
2011-04-15 15:32:02
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Quiz 19
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  1. Maximization of cash should be a long term objective.
    False
  2. Break-even analysis determines what sales volume must be reached for a product before the company's total revenue equals total costs.
    True
  3. One strategy to get adequate distribution for a new product is to offer dealers a large trade allowance to help offset the costs of promotion.
    True
  4. When pricing goals are mainly sales oriented, cost considerations usually dominate.
    False
  5. Costs that do not change as output is increased or decreased are called stable costs.
    False
  6. Sales-oriented pricing objectives are either based on market share or dollar or unit sales.
    True
  7. The manufacturers that remain in the market toward the end of the maturity stage typically offer similar prices.
    True
  8. Research has shown that products that are perceived to be of high quality tend to benefit less from price promotions that products perceived to be of lower quality.
    False
  9. A firm has maximized its profits when its marginal revenue exceeds its marginal cost.
    False
  10. High purchase prices may create feelings of pleasure and excitement in consumers.
    True
  11. As products enter the growth stage of the product life cycle, prices generally begin to stabilize.
    True
  12. Yield management systems can only be used by service industries.
    False
  13. Firms that price their products solely on the basis of costs are adhering to the marketing concept.
    True
  14. Profit maximization is the price at which supply and demand are equal, and there is no inclination for prices to rise or fall.
    False
  15. Prices may actually rise for a product in the decline stage of the product life cycle.
    False
  16. If demand for milk is inelastic, consumers will not change their purchasing habits greatly when the price of milk changes.
    True

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