Entrepreneurship Chapter 5

To successfully use the marketing concept, a business must do which of the following?

• identify what will satisfy the customers' needs and wants

• develop and market products or services that customers consider better than other choices

• operate profitably

• all of these

A marketing strategy should be consistent with the overall _______ that a business sets (hint 5 letters, starts with 1)

Opening two more restaurants in other locations around the city would be an example of a short-term goal for the owner of a new restaurant

• true

• false

The branding, packaging, and labeling of your product should accomplish all of the following except

• identify your product

• describe the company's product mix

• differentiate your product from others in the market

• provide information about the product

Which of the following would be a good addition to the product mix for a health club?

• diamond rings

• chocolate chip cookies

• fitness apparel

• photo print service

Which of the following is NOT a pricing objectives?

• to maximize sales

• to increase profits

• to attract customers

• to decrease expenses

A new computer device that acts as a watch but also lets you surf the internet, text, use voice commands, track your fitness levels, access gps navigation, etc. There are people who want this device so badly they are willing to pay any price for it. This device should be priced using:

• demand-based pricing

• cost-based pricing

• competition-based pricing

• time-based pricing

During late summer, Nordstrom department stores offer fall and winter clothes at a discounted price for a short period of time. After that time, the price of this clothing goes up and is not reduced again until the end-of-season clearance. This is an example of

• prestige pricing

• price lining

• promotional pricing

• multiple-unit pricing

You own an office supply store. You purchase desk lamps at a wholesale cost of 14$ each. You use a markup of 45% to determine retail price (sell price). At end of season, you offer a discount pricing using a markdown of 20% of the selling price. The discount price for the lamp is:

• $20.30

• $17.50

• $16.24

• $11.20

Which of the following pricing strategies is often used when introducing a new product into the market with the goal of developing a strong customer base while discouraging competition

• price skimming

• penetration pricing

• prestige pricing

• price lining