This is marketing courseQuestion $1$

When Elias goes into Pacific Halibut Grillhouse, a local restaurant that features halibut and parmesan roasted artichokes, he sometimes gets his food fast and hot. Other times his order is slow, and his food arrives at his table cold. Sometimes his server is in a cheerful mood, but other times not, even when it's the same server he has had previously. Elias is experiencing the service characteristic of

$$ intangibility

$$ inseparability

$$ autonomy

$$ heterogeneity

$$ perishability

Question $2$

Which of the following is NOT a characteristic that would slow the rate of adoption and diffusion of a new product?

o There is little opportunity to observe products used by others.

o There is no opportunity to try out the product.

o The product is compatible with existing values and behavioral norms.

o There is no relative advantage over substitute products.

o All of the above will slow the rate of adoption and diffusion of a new product.

Question $3$

Alta Audio makes and sells high$-$end stereo speakers. At a price of $$5,000$ they sold $1,000$ pairs of speakers. When they dropped their price to $$4,000,$ they sold $1,500$ pairs. Regarding elasticity, demand for the stereo speakers is

$$ Elastic.

$$ High.

$$ Value conscious

$$ Inelastic.

$$ Unitary.

Question $4$

When a firm introduces a new product at a relatively low price, hoping to quickly build market share, it is following a$/$an $\_$

o Skim$-$pricing

o Base price

o Penetration pricing

o Flexible price

o Every day low price

Question $5$

When Betty Crocker increased the price of its cake frosting, the sales of its cake mixes were negatively affected. This phenomenon is known as:

o the substitution effect

o cross$-$price elasticity

o unsubstantiated demand

o non$-$linear elasticity

o missed demand

Question $6$

The pricing method whereby one simply adds an amount to the cost of an item to generate the selling price is called:

o Profit pricing.

o Discount pricing.

o Variable cost pricing.

o Markup pricing.

o Full$-$line forcing

Question $7$

Using an established brand to introduce a new product is called

o brand harmonization.

o brand valuation.

o a brand extension.

o brand positioning.

o brand parity.

Question $8$

Nhen La Sportiva wanted to find out how its hiking shoes would hold up on $100$ miles of rocky roads, narrow trails, asphalt, and mountain passes, the company developed a prototype of their new product and gave them to competitive runners at no cost to wear in a local race. After the race, the runners were asked their opinion about the new shoes. La Sportiva's new shoes are in the$\_\_$ stage of the new product development process.

o Development$/$product testing.

o Storming.

o Commercialization.

o Test marketing.

o Idea screening.

Question $9$

Gabriel is in the process of opening Mythic SK$8$S to sell boards, wheels, trucks, clothing, videos, and skateboarding related collectibles. The first thing Gabriel should do when setting the store's prices is to $-$

$$ determine demand

$$ estimate costs

$$ determine her target market

$$ select a pricing method

$$ select a pricing objective

Question $10$

Cosco, a Chinese shipbuilding company, agrees to build a fleet of submarines for the Sri Lankan navy, for which it will be paid in the local Sri Lankan currency. As per the agreement, Cosco must also spend a substantial amount of the money it generates through this deal within the country of Sri Lanka. In accordance with the contract, Cosco buys Sri Lankan tea at a reduced rate. This is an example of which of the following forms of countertrade?

o descending bid

o offset

o barter

o coercive

o EDLP pricing