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EXAM3

MARK3OOO Sprin g 2007
Dr. Grantham

Do not open the test, or write anything on the test, until directed to do so. Right now - fill in your name and complete student ID number on the scantron (bubble in completelv. Ieft-justifi ed).
Please write your seat # and color of your exam in the upper right corner of your scantron. Please mark all multiple-choice answers on BOTH the scantron AND the exam booklet. Lines have been provided to the Ieft of each question for you to write the letter answer down on your exam booklet. only your exam booklet will be returned to you for future reference (no scantrons will be retumed). Only answers

marked on scantron will be scdred.

I will not answer questions during the exam. I will respond to all questions after exams have been submitted, graded, and returned to you; and you have had an opportunity to review your responses.
tests and scantrons must be tumed in by the end of class. This means you must be completely done with all writing and bubbling in the scantron, and have put your exam in the appropriate envelope by the end of class time on the

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computer clock shown on the screen. Turning your exam in after the erd of the class time will result in a late penalty. You will not be given time after the end of class to bubble in your name or any answers.

This is to be individuol work without the use of any notes or the boolc Do not look at anyone else's test or snswer sheet und do not allow anyone else to look st your test or answer sheet.

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ity of Georgia Academic Honesty policy.

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000 and variable costs for each unit will be $20. profit maximization. c. c. 'a. The Multiple Sclerosis Society has decided to organize a $500-a-plate fundraiser. At present. revenuemaximization.t a. Mignon d'Armitage manufactures jewelry. d. 'd.000. d- breakeven pricing approach. b. c. \ __ **. b. b.Exam 3 Multiple Choice Identlf! the letter of the choice that Bflcompletes ffi.Grantham . 3. services and wireless carriers are both tending to adhere to prestige pricing policy. ffi 5. retall --_----ll-tr'a. achieved by most firms in the marketplace. ffi. institutional 4. d. competitive pricing objective. b. . sure to face competition periodically The supply chain begins with a. . informative d.Spring2007 . not a pricing objective. . providing market incentives. "ffi' 7.Z)::= ') toc)o r . c. d. determined by the point at which the marginal revenue curve intersects the marginal cost curve.. a Ff 1. This firm is planning to introduce a new necklace and is trying to determine how many units it must sell in order to break even.. 2. in business for just a short period of time.ID: B - {ARK 3000 . firms seeking new markets for their products. This not-for-profit organization has as its objective a. Assume Target and Sony jointly share the cost of advertising a new Sony product. 7.000. long-distance telephone & & d | b. Profit maximization is a volume pricing objective.500. ad. S. the n'umber of units that must be sold in order to break even is 4. cooperative b.500. psychological pricing model. At the price of $45 each. This is an example of adVertising. Fixed costs are S100. created by patent protection. the product being loaded aboard the rail car for shipment. . Temporary monopolies usually exist because they are have no right to be a permanent monopoly. cost recovery. : b. lj?two: ) @t-. c. b. the statement or answers the question. 2- a. the finished good rolling off the end of the production line. the raw material inputs for the manufacturing process of a product.6. 5.

d. c. d. the Starch Readership Report. product. "Y tZ.000 12. c. d. institutional. the longest possible marketing channel. multiple marketing channels. -d.5 million. $1 to park in the lot at Hartwell Field -. product. breakeven analysis. c. read but must recall ads from it from memory. informative advertising c. An example of a customaryprice wouldbe a. prices that are set daily. Z Y aggressive promotion is desired from retailers. $459 for a color TV. the shortest available marketing channel.000 Everyday low pricing is a strategy devoted to continuous low prices as opposed to a. b.500. rebates. The state unfair-trade laws were originally intended to a. an inquiry test. 11. sales. 500.:=- b.persuasiveadvertising d. weekly. If 9. solid state analysis. institutional. -E"z-. ffi -Skl*$ i 5.000 1'500. b. $3 for a pair of special 3-D glasses at the movies.the same price it's been since 1958. Assume Microsoft {ru. what is the reach? F#an8*13. d. and special dFW ffifft+. ffi ?^ rc.500 for a 2005 Toyota Camry. protect small specialty shops from the loss-leader pricing tactics used by chain stores to attract customers. set retail price ceilings at cost plus a maximum markup. b. or monthly in reaction to competitors' actions. If the frequency is 5. d. b. When respondents are not given copies of a magazine they've -'rF " the test is known as a. c.ID: B t4 n':7 8. b. assure that the prices charged by manufacturers were strictly based on market conditions. F-. 1*- introduces a radically redesigned version of its XBox gaming system. allow selling of products at unreasonably low prices to stimulate sales. . dual marketing channels. ff*FTF The technique that allows us to determine the number of goods or services that must be sold at a given price to generate sufficient revenue to cover total costs is called a. cost-volume-profit analysis. the unaidedrecall test.500. Microsoft promotes the new product through paid communications in a variety of media. marginal analysis. d. b. the producer should choose a. c. c. purely cost-based prices that vary as the manufacturer's costs vary. relying on short-term price-cutting tactics such as cents-offcoupons. persuasive advertising Assume the gross rating point is 2. c. $22.p a. Burke's Marketine Research Test. informative advertising b. seasonal changes in prices based on current demand.000 2. called the ZBox. These messages are examples of _ and _ a.

130. d.000. c. b. The type of advertising often closely related to the public relations function of an enterprise is productadvertising. The company expects to earn a profit of S400. transportation discounts. d. one type of volume pricing objective is a. cash discounts. return on investment. intensivedistribution. exclusivedistribution. c. cost recovery. -tm tl. a. b. 19. newspaper advertising. yield management. c. d. quantity discounts. to offset low demand and raises prices in the evening when d. c. ffi a. 23.fgo+_4-oo. marginal pricing.000. 120.000. b. a. In which of the following types of market structures would a producer have the least amount of flexibility in setting prices? pure competition monopolisticcompetition monopoly oligopoly . 400.000 with its total fixed costs of $120. institutionaladvertising. lead to a purchase or other desired action.ID: B 4 16.000. informativeadvertising. b. "cutting through the clutter" refers to the ability of an advertisement to gain the attention and interest of the audience. modified breakeven analysis.000. A product is priced to sell for $12 with average variable costs of $8. 18. c. -b.no : fto t?o -l 22. a. c. market-share. d. -@=> lN. c. inform the audience of the concepts the advertiser wishes to communicate. cost-plus pricing. Snickers. a. a. The minimum number of units that must be sold rn order to reach this target return is 80. and Mars candy bars are typically marketed using selectivediskibution. 21. A theater that lowers prices in the afternoons demand rises is practicing a. d. c. exploitation ofthe local theater-goers. apply persuasive pressure to the audience. d. b. b. d. specializeddistribution. trade discounts. Milky Way. b. Discounts off the list price given to channel members for performing marketing functions are called ffi ffi 20.

increase in supply of the product. availability of substitutes. radio. d. sales promotion. sales promotion. b. a. c. cable tElevision b. though under the least control by the firm of any component the promotional mix. c.. inelastic. sales promofion b. Lack of flexibility compared to other media is the biggest disadvantage of a.. 3. network television . newspapers radio 25. c. unstable. magazines. direct marketing d.00. $7.ID: B tu 24. advertising c. Paid. b. \ of ffi. ffi. Which of the following elements of the promotional mix is the most expensive (cost per contact)? a. d. Which advertising medium dominates local markets? a. $10.' a. b. decrease in price ofthe product. c. public relations. A major factor influencing the elasticity of demand for a product is the a. c.go #. is a. nonpersonal communication through various media by an identified sponsor designed to inform or persuade its audience is known as public relations. advertising. ^N# ffiy.' l0. d.000 units and just breaks even. demand in the short-run would tend to be plastic. This company sells 10. personal selling The promotional tool that is generally free. publicity. b.000 and has average variable costs of $7 per item. n@.00. c. A company has fixed costs of $35.so. d. ..35. S17. If the price of basic food products were to increase significantly. The unit selling price for the product is a. newspapers. d. cffi $to. b.@O pvM +7 = /o. television. a. advertising. elastic. c. drop in demand for the product's substitutes or complements. {. publicity. b.

prestige pricing. publiccommunications. employees. you would most likely select water carriers. 0.' sole objective were to find the least expensive mode of shipping cargo. 36. b.93 is that these prices are regularretailprices. '0. b. incremental-costpricing. government agencies. b. 39. discountprices. b. id. d.5. c. b. motor carriers. c. b. value pricing. c. is called ?. \ a. cost-plus pricing. d. Adsbased on fearappeals d. a. 1. full-cost pricing.0. pipelines. A direct channel of distribution q a. .97 and $6. Which type of appeal typically loses its effectiveness the soonest? a. c. 38. always moves goods from producers to users efficiently. public relations. The firm's communications that inform and build relationships with customers. a.1. d. wholesale prices. d. 33. A l0 percent a. head-on pricing. carries goods directly from a producer to the business purchaser or ultimate user. railroad. is haditional for consumer goods. d. Ads containing objective facts * 34. 35. breakeven pricing.ID: B 32. and society. c. b. competitive prices. If your increase in the price of eggs that results in a 5 percent decrease in the quantity of eggs demanded yields a price elasticity of demand for eggs of . c. d. 37. involves relatively few intermediaries. publicity. c. Ads based on sex b. Ads containing humor c. Some retailers believe that consumers' perceptions of prices such as $5. The new pricing strategy that has emerged in recent years that emphasizes the benefits a product provides in comparison to the price and quality levels of competing offerings is called benefits maximization. 1. The most popular method of pricing is a. stockholders.s. stakeholderrelations. suppliers.

ta**ri4l R(r:nd . what price to actually charge the receiving profit center. when to complete the transfer..MorLu+ sh".t^* Yr+ o4'pral. based on the PIMS studies? (8 points) Quot)U +.-. how to assign the controllable costs to the profit centers.r{ef r. what are two of the most important factors influencing profitability.( . 41. (6 points) \-/ O. L I'ntrorl'l"-JxrJfoc\-tg*u0YSq? n ( rt I gfuqe Ws^adL.. how to determine the product-service attributes of the transfer.r:U { r shellneshne- According to the textbook reading.Groutu+\ p €arly p. d.".ID: B & . Match the three ohiectives of pdvertising and ptages in the product life cyele. ' b. A major problem facing company decision-makers when setting transfer prices is a.rrA( 42. c. ' Essay OO.

w. Pdr+ W.t yov loJrpcl. ys^.Q.-o\. -)h:s ': urlc. ful $w lcno* 414Y .dv -1"' en/ qfAl'bns oc + W Prodacl t/k.o.sal€.[. 6e .\ Y0\ Clt'rc.bl s0n1"J */. The first step in the sales process is prospecting and quali$ing..o. orl *he flerSott. 0< .t 'h{ V$t". (6 points) I prrspa ond qka("| is )qp{a"L-. 1Y Va("abts {.N'd. and n+qh L . ilwre* u'.< b . Discuss the remaining 6 steps in the sales process. fA:s (\ "l Lbl*. Jn€"*'['btt $hsu(d do y'{.e il \rlt .?) \r l^l.h +k.)}t b&ru )'. .ftrJ?(t. Scclu-s pWorr.-.h*n. Edld" {Onr.._r.ID: B 43..

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