Question;MK201 Chapters 12,13 ? Week 5 Quiz QuestionsDirections: Select the best response for each. Please post;your selections in the Blackboard response section numbered 1-30 with response;to each corresponding question.;Due: Sunday at midnight for each week of this course.;Scenario 12.1;Use the following to answer the questions.;Concession Supply sells hotdogs, buns, and;nacho ingredients to several major league ballparks across the country.;Currently, Concession Supply has the following pricing information for one case;of hotdogs sold at Wrigley Field: Total fixed costs = $1,200, Selling price =;$16, and Variable costs = $6.;1. Refer;to Scenario 12.1. To break even, Concession Supply should sell ____ cases of;hot dogs per day at Wrigley Field.;a.;13;b.;120;c.;40;d.;200;e.;60;2. Refer;to Scenario 12.1. What is the breakeven point in dollar sales volume?;a.;$1,200;b.;$1,440;c.;$3,000;d.;$1,920;e.;$1,600;3. Refer;to Scenario 12.1. If Concession Supply increased its price by 10 percent and;experienced only a 2 percent decrease in the demand for hotdogs, the demand;would be;a.;inelastic.;b.;common.;c.;prestige.;d.;elastic.;e.;marginal.;4. Refer;to Scenario 12.1. If Concession Supply wanted to make a profit of $800 on each;case, it would need to sell ____ cases.;a.;150;b.;300;c.;100;d.;75;e.;200;Scenario 12.2;Use the following to answer the questions.;The BASF Chemical Company in Germany has;developed a new rubberized coating. The product has an application for cell phones;and other hand-held electronic devices that gives them protection from falls;and scratches. BASF plans to market the product directly to businesses that;manufacture the casings for these types of products. BASF currently uses a;system of salespeople headquartered in Germany, while its primary business;customers are in China.;5. Refer;to Scenario 12.2. BASF has decided to offer discounts to its businesses;customers in the form of the following: For each order of $100,000 or more;during the next 90 days, the buyer will receive a rebate of 5 percent. This;type of pricing would be an example of ____ discounts.;a.;allowance;b.;cash;c.;seasonal;d.;noncumulative;e.;cumulative;6. Refer;to Scenario 12.2. BASF is considering the problem of actual distance in;delivering its product from the plant in Germany to some of its customers in;China. Which pricing strategy would help overcome this problem?;a.;Geographic;b.;Transfer;c.;Commercial;d.;Transit;e.;Factory;7. Refer;to Scenario 12.2. If BASF were to employ pricing that includes the price at the;factory plus freight charges from a chosen point nearest the buyer, this would;be an example of ____ pricing.;a.;factory plus;b.;dispersion;c.;base-point;d.;freight absorption;e.;uniform geographic;8. Refer;to Scenario 12.2. If BASF were to price its product in barrels from the;factory, before it is loaded on the carrier, this would be an example of;pricing.;a.;buy-back allowance;b.;geographic;c.;F.O.B destination;d.;F.O.B. factory;e.;base-point;Scenario 13.1;Use the following to answer the questions.;Suppose that Ray-Ban is considering a new;line of sunglasses that would be sold in major department stores. The new line;would be positioned as a more distinctive brand than the typical glasses sold;through department stores, and would be priced higher than other brands in the;store, but a lower price line than the current Ray-Ban lines that are sold;through more selective stores. In determining the price for this sunglass line;Ray-Ban wants to gather information about all brands sold in department stores;and about customers' perceptions of those brands.;9. Refer;to Scenario 13.1. Ray-Ban's plan of gathering information about the other;brands sold in department stores, including their prices, would most likely be;used in a ____ basis for pricing.;a.;Cost;b.;Competition;c.;Demand;d.;Customer;e.;Market;10. Refer;to Scenario 13.1. Given Ray-Ban's plan for positioning the new sunglass line;they should use a ____ strategy when introducing their new product.;a.;promotional;b.;penetration;c.;price-skimming;d.;reference;e.;secondary-market;11. Refer;to Scenario 13.1. Ray-Ban has decided to promote the new sunglass line as an;affordable luxury" and plans significant promotional expenditures.;With these objectives, which of the following should Ray-Ban use to price its;product line?;a.;competition-based pricing;b.;cost-plus pricing;c.;markup pricing;d.;demand-based pricing;e.;differential pricing;12. Refer;to Scenario 13.1. If Ray-Ban selected the prices for its new sunglasses to be;$60, $70, or $80, this would most likely be an example of using ____ pricing to;enhance its distinctive positioning strategy.;a.;product-line;b.;odd-even;c.;professional;d.;promotional;e.;penetration;Scenario 13.2;Use the following to answer the questions.;Glenwood Pet Hospital is considering;implementing a new pricing strategy for its veterinarian services. After;reviewing the previous three years' revenue, Glenwood finds that most of its;customers bring their pets in for the required annual vaccinations and then;only if the animal is ill. Glenwood's objective is to generate more income per;customer on an annual basis. The hospital has previously priced its services by;charging a flat fee for the office visit, a fee for each vaccine, and a fee for;each type of examination beyond the basic office visit. Most customers pay the;flat office fee and a fee for a rabies vaccine. Glenwood is now considering a;new plan where the pet owner would pay one fee that would cover an;office visit, the required rabies vaccine, and additional vaccines that prevent;heartworm, kennel-cough, and fleas. Glenwood hopes to encourage the pet owners;to view their pet's health as part of a prevention program, rather than a;one-time annual visit.;13. Refer;to Scenario 13.2. Glenwood's previous pricing strategy is an example of;pricing, while the new strategy is an example of ____ pricing.;a.;percentage, cost-based;b.;cost-based, psychological;c.;sales-based, customary;d.;a la carte, bundle;e.;demand-based, bundling;14. Refer;to Scenario 13.2. Glenwood has decided that it is going to offer a special;package offer if the prevention plan is purchased within the first 30 days of;each year's time for vaccinations. This type of pricing strategy would be an;example of;a.;customary pricing.;b.;secondary-market pricing.;c.;introductory pricing.;d.;periodic discounting.;e.;random discounting.;15. Refer;to Scenario 13.2. Glenwood's closest competitor, The Hearthstone Pet Hospital;currently charges $60 for each basic office visit. If Glenwood were to price;its basic office visit at $45, it would most likely be employing which;of the following?;a.;customary pricing.;b.;penetration pricing.;c.;prestige pricing.;d.;price skimming.;e.;cost-based pricing.;16. Refer;to Scenario 13.2. Glenwood is considering a markup pricing basis, with the cost;for office visit plus vaccines at $45. If Glenwood were to add a markup of 33.3;percent of the costs, its price would be ____.;a.;$79;b.;$65;c.;$55;d.;$78;e.;$60;MULTIPLE CHOICE;17. The;oldest form of exchange?trading of products?is known as;a.;credit.;b.;buying.;c.;purchasing.;d.;barter.;e.;pricing.;18. What;do all of the following have in common: tuition, fee, premium, retainer, dues?;a.;They all must be paid in cash.;b.;They are forms of exchange similar to;but not identical with, money.;c.;They are forms of exchange similar to;but not identical with, barter.;d.;They are different terms for the concept;of price.;e.;They have nothing in common.;19. The;tuition and fees each student paid for this semester of college are both terms;for;a.;expenses.;b.;charges.;c.;bills.;d.;price.;e.;exchange valuations.;20. Which;of the following is the most flexible variable in the marketing mix?;a.;Product;b.;Price;c.;Advertising;d.;Personal selling;e.;Distribution;21. What;equation shows organizations the relationship between price and profit?;a.;Total Variable Costs + Total Fixed Costs;= Sales-;Profit;b.;Price = Profit per Item? Number of;Units Sold;c.;(Price? Quantity Sold)- Total Costs;= Profits;d.;(Price- Profits)? Total Costs = Sales;e.;Total Costs = (Price? Quantity;Sold)-;Profits;22. Price;is a key element in the marketing mix because it relates directly to;a.;the size of the sales force.;b.;the speed of an exchange.;c.;quality controls.;d.;the generation of total revenue.;e.;brand image.;23. Price;is;a.;money paid in a transaction.;b.;not important to buyers.;c.;of limited interest to sellers.;d.;the most inflexible marketing mix;decision variable.;e.;the value that is exchanged for products;in a marketing transaction.;TRUE/FALSE;24. The;six stages of setting prices should always be followed if prices are to be set;correctly.;25. A;marketer uses only one pricing objective to avoid organizational confusion.;26. Pricing;objectives should be considered overall goals to aid the organization in its long-range;plans.;27. The;objective of profit maximization is rarely operational because its achievement;is difficult to measure.;28. The;objective of maintaining or increasing market share depends on growth in;industry sales.;29. The;use of market share as a pricing objective oversimplifies the value of price in;contributing to profits.;30. Knowing;the target market's evaluation of price allows the marketer to know how much;emphasis to place on price and how to price a product relative to competition.
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