Marketing - Sample Quiz

Question 1
A retailer pays a wholesaler $24.00 for an item and then sells it with a 25 percent markup. The retailer's selling price is:

a.$32.00
b.$56.00
c.$48.00
d.$30.00
e.None of the above.

Question 2
Some producers give ________ to retailers to pass on to the retailers' salesclerks in return for aggressively selling particular items or lines.

a.brokerage commissions
b.advertising allowances
c.trade discounts
d."push money" allowances
e.cash discounts

Question 3
Profit maximization pricing objectives:

a.almost always lead to high prices.
b.are generally not in the public interest.
c.seek to get as much profit as possible.
d.may be stated as a desire to achieve rapid sales growth.
e.are all of the above.

Question 4
When Eckerd Drugstores advertises one price for the cost of a roll of film and the cost of processing it, they are using ______________ pricing.

a.complementary product
b.flexible
c.product-bundle
d.a one-price
e.bait

Question 5
If a producer wants title to pass to a buyer immediately--but still wants to pay the freight bill--the invoice should read:

a.F.O.B. buyer's factory.
b.F.O.B. shipping point.
c.F.O.B. delivered.
d.F.O.B. seller's factory--freight prepaid.
e.F.O.B. mill.

Question 6
Antidumping laws:

a.protect consumers from the high prices charged by monopolistic foreign producers.
b.set the maximum price a foreign producer can charge.
c.are used in an effort to control the minimum price of imported products.
d.make it illegal for a foreign producer to sell a product at a price level lower than domestic producers.
e.force foreign producers to sell below cost if they want to compete with a nation's domestic producers.

Question 7
When a buyer receives an invoice for $100 with terms of "2/15 net 30" he can expect to pay:

a.$100 if he pays anytime in the first 30 days.
b.less than $100 if he pays during the first 15 days.
c.$100 if he pays anytime during the first fifteen days.
d.more than $100 if he pays from day fifteen through day thirty.
e.the full $100 if he waits more than 30 days to pay.

Question 8
A manufacturer could try to defend itself against charges of price discrimination under the Robinson-Patman Act by claiming that:

a.the products were not of "like grade and quality."
b.any price differences were to "meet competition in good faith."
c.the price differences did not injure competition.
d.the price differences were justified on the basis of cost differences.
e.all of the above are possible defenses against price discrimination charges.

Question 9
If a producer selects an output level and price where marginal revenue is equal to marginal cost:

a.marginal profit will be at its maximum.
b.total revenue will be at a maximum.
c.profits will continue to grow beyond this break-even point.
d.profit will be maximized.
e.any increase in price will cause marginal revenue to go negative.

Question 10
Regarding markups and turnover:

a.high markups usually lead to high profits.
b.speeding turnover usually decreases profits.
c.items sold at low markups (e.g., 20 percent) cannot be profitable.
d.depending on the industry--a stockturn rate of 1 or 2 may be quite profitable.
e.All of the above.