Marketing Applications CH:25 Quiz

What does the law of diminishing marginal utility state?

• Consumers will buy only a certain amount of a product even though its price is low.

• When substitutes are available, consumers' use for a particular product diminishes.

• The effect of a price change is relative to a customer's income.

• A change in the price of some of life's basic necessities will have little effect on demand.

What is a firm's percentage of the total sales volume generated by all competitors in a given market?

• planned sales

• sales revenue

• market share

• return on investment

What product is adversely affected by price wars?

• laptop computers

• fast food

• gasoline

• books

How does most price planning begin?

• cost and expense analysis

• competition analysis

• sales projection

• review of consumer needs

What law prohibits companies from selling proudcts at very low prices?

• Unfair Trade Practices Law

• Robinson-Patman Act

• Non-Discrimination Act

• Federal Trade Act

The Bunny Bread company sells 15 percent of all the bread sold in the greater Tampa, Florida, area. Therefore 15 percent is the company's market

• share

• value

• price

• unit

Consumers can compare similar products at a grocery store, even if the products are different sizes or come in different packages. ____________________ pricing used by the stores allows comparison as customers can see the prices in relation to a standard

measure such as cost-per-ounce.

• share

• value

• price

• unit

Wages, rent, and dues are all examples of ____________________.

• share

• value

• price

• unit

To understand pricing, a marketer must also understand ____________________, which is the anticipated satisfaction consumers place on a product.

• share

• value

• price

• unit

Offering one customer one price for a product and another customer a different price for the same product in a similar situation is called price ____________________.

• discrimination

• inelastic

• judgments