29 The break-even point is the quantity at which total revenue and total cost are equal. A) True B) False 30 Price elasticity of demand is the percentage change in the quantity demanded relative to a percentage change in price. A) True B) False 31 Skimming pricing is the setting a low initial price on a new product to accelerate the rate of adoption. A) True B) False 32 Penetration pricing is the setting a high initial price to recoup investment and target innovators. A) True B) False 33 Prestigious pricing involves setting a high price so that the product is perceived as a high quality and status conscious consumers are attracted. A) True B) False 34 Predatory pricing is the practice of charging a very low price for a product with the intent of driving competitors out of business. A) True B) False 35 Marketing channels have 3 functions transactional, logistical, and faciltating. A) True B) False 36 Target market coverage requires attention to the 3 degrees of distribution density. A) True B) False 37 intensive distribution means that the firm tries to place its products in as many retailers and types of retailers as possible. A) True B) False 38 Exclusive distribution is often chosen for convenience products. A) True B) False 39 A marketing channel consists of individuals and firms involved in the process of making a product or service available. A) True B) False 40 An indirect channel has intermediaries between the producor and the consumer. A) True B) False 41 When choosing a marketing channel and intermediaries. one of the questions executives consider is: Which will provide the best coverage of the target market? A) True B) False