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Marketing - Sample Quiz

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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.

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Solution Preview

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.

It would be 24$ + 1.25 = 30 (d)

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

I would say "push money" allowances. The definition is: Funds given by a manufacturer to a middleman or retailer for promoting its product, also called promotional allowance.

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.

I would say C , since the highest profit maximization is NOT necessarily the highest price, and is not used to get rapid sales

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.

...

Solution Summary

This posting provides sample marketing questions, as well as an explanation of the answers.

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Marketing Sample Quiz (consumer product classes, new product failures and more...)

Question 1
Regarding consumer product classes: a convenience product is to an emergency product as a(n):

a.staple is to an emergency product.
b.shopping product is to a heterogeneous shopping product.
c.unsought product is to a specialty product.
d.new unsought product is to a regularly unsought product.
e.specialty product is to a homogeneous shopping product.

Question 2
Which of the following is a common cause of new product failures?

a.The product fails to offer the customer a unique benefit.
b.The company tries to follow an organized new-product development process--rather than using a faster and more spontaneous, "race-to-market" approach.
c.The managers worry too much about the competition.
d.The company delays putting the product on the market until it has developed a complete marketing plan.
e.All of the above.

Question 4
Concerning the product life cycle:

a.profits and sales begin to decline in the maturity stage.
b.individual products may enter and leave the market at any stage.
c.a successful introduction almost guarantees that the product will remain a success over the life cycle.
d.all of the above are true.
e.none of the above is true.

Question 5
Persuasive promotion is especially important in which of the following product life cycle stages?

a.market maturity
b.sales decline
c.market introduction
d.market growth

Question 6
Until recently, Emil Flores wouldn't buy any coffee except "Blue Mountain"--a relatively expensive type that few stores sell. He used to have to drive about 10 miles out of his way to buy it at a small shop. Then he was at a friend's home and tried an inexpensive brand of coffee sold by the local supermarket chain. Now he won't buy anything except that brand. For him, the supermarket coffee is a(n)______________ product.

a.emergency
b.specialty
c.staple
d.unsought
e.heterogeneous shopping

Question 7
Pfizer Corp. is introducing a really new product idea. Pfizer is spending a lot of money to inform potential customers and middlemen about the availability and advantages of the new product. Although sales are rising slowly, Pfizer doesn't expect the product to become profitable for at least another year. Pfizer's new product is in which stage of the product life cycle?

a.market introduction
b.sales decline
c.market development
d.market growth
e.market maturity

Question 8
The Magnuson-Moss Act requires that:

a.all firms provide written warranties for all products.
b.a warranty must be clearly written, if one is offered.
c.all warranties be strong warranties.
d.all warranties be for at least one year.
e.all of the above.

Question 9
Passage of the Consumer Product Safety Act means that:

a.some business people may go to jail if they offer unsafe products.
b.consumers will be more willing to pay for safer products in the future.
c.product-related injuries will be eliminated in the future.
d.producers are no longer liable for an injury if it is the consumer's fault.
e.all of the above are true.

Question 10
Which of the characteristics of a good brand name is missing in the following proposed name: "Gnucheo" candy?

a.simple
b.short
c.not offensive
d.always timely
e.easy to pronounce

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