Question 1

1. One of the profit-oriented pricing objectives is "target return on investment" which indicates _________________.

The management's overall effectiveness in generating profits with the available assets

The maximum level of profits that is shared with the stockholders

The level of revenue that allows company to achieve the highest market share

Question 2

1. Which executional style is used by advertisers to portray information that shows consumer the expected benefits of the product?

Mood or image

Demonstration

Lifestyle

Question 3

1. In which situation we can say that demand is inelastic?

If price goes down and revenue stays the same

If price goes up and revenue goes up

If price goes down and revenue goes up

Question 4

1. A watch company has fixed costs of $4000. The variable cost, including the cost of labor and materials, for each unit of watch produced is $5. The unit selling price of the watch is $25. How many watches the company has to produce and sell to break-even?

160 watches

200 watches

125 watches

Question 5

1. Which is NOT correct about "price"?

Price can serve as a measure of sacrifice and as an information cue.

Price has everything to do with how much money has to be given up to get a good or service.

To the consumer, it is the cost of something.

Question 6

1. A customer-centric company would do the following, EXCEPT:

Shapes all functional areas of the business by taking into consideration the company's customers

Has an internal system where all of the company's decision and actions are a direct result of customer information

Offers only products that the company can produce most efficiently to minimize costs for customers

Question 7

1. An item that costs the retailer $4 and is sold for $6 has a markup of _____ (percent) of the retail price.

25%

66%

33%

2 points

Question 8

1. Which common advertising appeal can be very powerful and requires advertiser to exercise care in execution because the advertising is possibly associated with social embarrassment, growing old, or losing one's health?

Admiration

Fear

Profit