UNIT 4 TEST REVIEW

Which element of the marketing mix is affected by pricing decisions?

• Promotion

• Profit

• Place

• Product

It costs a publishing company $8 to produce a paperback book. The company sells each paperback it produces for $9.99. The $1.99 difference is known as

• Demand

• Elasticity

• capital

• Markup

Covering costs is a pricing objective related to:

• Competition

• Sales

• Profitability

• Image

What might happen if a business's customers feel that they are not getting the most value for their money?

• Customers purchase more

• Sales increase

• Sales remain the same

• Customers spend money elsewhere

Which of the following is true of a business's pricing objectives?

• They must be adjusted from time to time

• They are chosen for the life of the business

• They must be changed each fiscal year

• They are not affected by changing circumstances

Can prices be set too low?

• Yes, customers may feel quality is too low

• Yes, customers may feel quality is too high

• No, the lower the price, the greater the product's appeal

• No, the lower the price, the more willing the customer is to buy

What kind of competitive market is characterized by a great many buyers and sellers of nearly identical products and marketers who have little control over pricing?

• Pure competition

• Monopoly

• Monopolistic competition

• Oligopoly

A company with a high profit margin decides to advertise with a full-page, high-cost magazine ad. This is an example of how pricing influences:

• Place

• Product

• Promotion

• Physical inventory

The objective of pricing that is intended to earn a certain percentage of profit based on the amount of money that has been put into the business is:

• Percentage pricing

• Unfair trade practices

• Return on investment

• Return on sales

Which of the following must a business accomplish through selling price:

• Pay all product costs

• Maintain Market Share

• Acquire start-up Capital

• Company Valuation