Question 1(2 points)

Which of the following factors are likely to increase the likelihood of a competitive response (price war) following a price cut?

Question 1 options:

All of them

Offerings are undifferentiated and can be easily substituted.

Customer demand is price elastic.

Markets are stagnant, and to grow sales a company has to steal share from its direct competitors.

Question 2(2 points)

Listen

ReadSpeaker webReader: Listen

Which of the following are the key company benefits of using trade or collaborator incentives?

Question 2 options:

Help motivate channel members to begin carrying a company's offerings

Help motivate channel members to carry larger inventories of a company's offerings

Help motivate channel members to prominently feature a company's offerings

All of them

Question 3(2 points)

Listen

ReadSpeaker webReader: Listen

Synergies among different offerings in a company's portfolio are commonly referred to as:

Question 3 options:

Experience curve effects

Economies of scope

Economies of scale

Learning curve effects

Question 4(2 points)

Listen

ReadSpeaker webReader: Listen

The price-quality tradeoff (giving up product benefits in order to pay less or vice versa) is one of the most important factors that customers consider when making a choice.

Question 4 options:

TrueFalse

Question 5(2 points)

Listen

ReadSpeaker webReader: Listen

A manufacturer that advertises its products and services to end users and promotes its offerings through means such as coupons, rebates, games, and contests is using which type of promotion?

Question 5 options:

Push promotions

Pull promotions

Neither

Question 6(2 points)

Listen

ReadSpeaker webReader: Listen

Apple has a very strong and positive brand image. A great number of consumers love this brand. Which of the following pricing goal is the best to maximize Apple's profits?

Question 6 options:

Skim pricing

Penetration pricing

Question 7(2 points)

Listen

ReadSpeaker webReader: Listen

Expenses that do not fluctuate with output volume within a relevant period are commonly referred to as:

Question 7 options:

Fixed costs

Sunk costs

Variable costs

Total costs

Question 8(2 points)

Listen

ReadSpeaker webReader: Listen

Which of the following factors play a key role in price setting?

Question 8 options:

Customers' willingness to pay for the offering's benefits

Competitors' prices and cost structure

The company's goals and cost structure

All of them

Question 9(2 points)

Listen

ReadSpeaker webReader: Listen

When the absolute value of price elasticity for a product is 3, it suggests:

Question 9 options:

The demand for this product is inelastic, consumers are not sensitive to price change. Sales discount will NOT help increase much sales volume.

The demand for this product is elastic, consumers are sensitive to price change. Sales discount will help increase much sales volume.

Question 10(2 points)

Listen

ReadSpeaker webReader: Listen

What is price elasticity?

Question 10 options:

The relationship between price and quantity sold

The degrees of freedom that a company has when setting the price

The percentage change in quantity sold relative to the percentage change in price

The ratio of an offering's price to quantity sold