127. A branding strategy in which a firm uses a different brand for each of its products is called branding.
a. producer
b. individual
c. unity
d. family
e. promotion
128. A branding strategy in which a firm uses the same brand for all or most of its products is called branding.
a. producer
b. individual
c. unity
d. family
e. promotion
129. All of the following are functions of packaging except
a. consumer convenience.
b. product protection.
c. entertainment.
d. promotion.
e. added benefits.
130. All of the activities involved in developing and providing a container with graphics for a product are called
a. packaging.
b. advertising.
c. labeling.
d. containerization.
e. parceling.
131. Multiple-unit packaging does not work well for
a. infrequently used products.
b. products that are easy to store.
c. aiding consumer acceptance.
d. two-for-one price offers.
e. shelf–space maximization.
132. To promote an overall company image, Borden dairy products are packaged in similar designs and colors. This
approach is known as
a. product grouping.
b. family packaging.
c. brand managing.
d. line consistency.
e. family branding.
133. The presentation of information on a product or its package is known as
a. branding.
b. labeling.
c. guaranteeing.
d. informing.
e. product coding.
134. The part of the package that contains the presentation of information on a product is called a
a. brand.
b. trademark.
c. label.
d. Universal Product Code.
e. warranty statement.
135. A number of federal regulations specify the information that must be included in labeling. Which of the following is
not specified?
a. Fabric content
b. Safety precautions
c. Ingredient content
d. Packaging content to indicate whether the package is recyclable
e. Fabric cleaning instructions
136. The label on a bag of Fritos is not required to describe the
a. number of servings it contains.
b. number of calories derived from fat.
c. safety precautions.
d. number of calories per serving.
e. serving size.
137. Inside the packaging of a new bread machine she purchases, Ginger finds a paper stating, “All our products will be
replaced within the first year if they fail to operate correctly. However, consumer misuse or abuse will effectively
end this policy.” This is a(n)
a. label.
b. set of instructions for use.
c. statement of guarantee.
d. implied warranty.
e. express warranty.
138. A written explanation of the responsibilities of the producer in the event the product is found to be defective or
otherwise unsatisfactory is called a(n)
a. Universal Product Code.
b. label.
c. express warranty.
d. set of instructions.
e. covenant.
139. The amount of money that a seller is willing to accept in exchange for a product, at a given time and under given
circumstances, is called the
a. revenue.
b. income.
c. discount.
d. price.
e. breakeven quantity.
140. Walgreens advertises the fact that Bayer aspirin may cost more but works no better than Walgreens’ own brand of
aspirin. In this example, Walgreens is competing on the basis of
a. selection.
b. packaging.
c. service.
d. price.
e. market share.
141. When price helps Josh decide to purchase a Chevrolet Cavalier instead of a Mercedes because he also wants a
Harley-Davidson motorcycle, price serves the function of
a. demander.
b. decision maker.
c. facilitator.
d. intermediation.
e. allocator.
142. Price serves the function of for goods, services, and financial resources.
a. distributor
b. determining factor
c. screener
d. quantifier
e. allocator
143. Price competition occurs when a seller emphasizes the
a. low price of a product.
b. high price of a product.
c. quality of a product.
d. quality of the customer service.
e. importance of the product.
144. A major drawback of price competition is that
a. it lowers prices.
b. it gains customers.
c. customers equate lower prices with lower quality.
d. competitors can also lower their prices.
e. it generates brand loyalty.
145. competition is competition based on factors such as product quality, promotion, customer service, and
packaging.
a. Product or brand
b. Price
c. Image
d. Non-price
e. Strategic
146. If Nordstrom sales associates are there to greet you as soon as you walk through the door, to assist you personally
in finding the merchandise you are looking for, and to inform you about the store‘s events and services, the
company is striving to compete on
a. quality.
b. service.
c. promotion.
d. price.
e. distribution.
147. Polaroid considers its packs of blank DVDs superior to other brands. To communicate the product’s superior
quality, which price may be appropriate for their DVDs?
a. Low
b. Average
c. Premium
d. Discount
e. Prevailing
148. Buyers may relate price to quality. To such a buyer, a higher price for a product is an indicator of
a. suspicious pricing.
b. higher quality.
c. product availability.
d. poor image.
e. greater quantity.
149. If a company invests $1,000,000 to develop and market a new product with a goal of earning $1,200,000 on the
product by the end of the year, it will price the product based on
a. profit expectations.
b. market-share goals.
c. return on investment goals.
d. survival goals.
e. objectives.
150. Which of the following constitutes an ROI?
a. Amount earned from sales before taxes
b. Amount realized from cutting production costs
c. Amount earned as a result of a financial investment
d. Amount, or ratio, that represents rate of investment
e. Amount earned as gross income
151. If Nabisco had established a pricing objective of selling one out of every three crackers consumed in the world, it
would have established an objective based on
a. cash flow.
b. market share.
c. survival.
d. return on investment.
e. dollar sales volume.
152. At a busy intersection in Atlanta, there are four competing gas stations. Each of the stations charges about the
same for each gallon of gasoline. The pricing objectives of these firms is
a. survival.
b. market-share goals.
c. status-quo pricing.
d. profit maximization.
e. competitive.
153. If company A references company B in determining what price to sell its own product at, it exercises which pricing
objective?
a. Target market share
b. Survival
c. Revenue maximization
d. Profit maximization
e. Status quo
154. In cost-based pricing, a producer adds an amount to the total production cost to provide a profit. The amount added
to the production cost is called a
a. discount.
b. markup.
c. variable cost.
d. differentiation.
e. price line.
155. For any product, the breakeven quantity is the
a. number sold over fifty units.
b. number sold such that costs equal revenues.
c. total number produced to equal the total resources available to the producer.
d. number of products needed to be sold in order to make a reasonable profit.
e. dollar volume of total sales.
156. The number of units that must be sold for the total revenue to equal the total cost is called the quantity.
a. breakeven
b. stabilization
c. intersect
d. parity
e. equalization
157. The total amount received from the sales of a product is referred to as
a. total revenue.
b. the breakeven quantity.
c. variable sales.
d. market revenue.
e. marginal revenue.
158. If John purchases a tie from JCPenney for $30, that $30 represents JCPenney’s from the sale.
a. income
b. cost
c. proceeds
d. breakeven amount
e. revenue
159. Hallmark cards develops a new line of cards that have a total cost of $200,000 and a price of $3 each. If it sells
20,000 cards the first month, what is its total revenue?
a. $60,000 b.
$600,000 c.
$400,000 d.
$140,000 e.
−$140,000
160. Costs that are incurred no matter how many units of a product are produced or sold are called
a. operating expenses.
b. overhead.
c. variable costs.
d. fixed costs.
e. inflexible costs.
161. Raw materials are an example of a firm’s costs.
a. selling
b. operating
c. fixed
d. overhead
e. variable
162. Costs that depend on the number of units produced are called
a. markup.
b. operational expenses.
c. fixed costs.
d. variable costs.
e. overhead.
163. The sum of the fixed costs and the variable costs of producing a certain number of units is called the
a. cost of goods sold.
b. equilibrium cost.
c. total cost.
d. breakeven cost.
e. total operating expense.
164. Philip James asks you to calculate the breakeven point for him. You need which information from him to do so?
a. Dollar values for all assets and owners‘ equity
b. Fixed costs, operating expenses, and net income
c. Dollar values for all assets and all liabilities
d. Unit costs and fixed costs
e. Variable costs per unit, fixed costs, and unit selling price
165. William Clark wants to know his breakeven point. His selling price is $20 per unit, his fixed costs are $6,000, and
the variable costs per unit are $6. What is his breakeven quantity?
a. 430 units
b. 428.6 units
c. 300 units
d. 425.6 units
e. 50 units
166. AT&T charges different rates for long-distance service depending on time of day and distance of the call. This
pricing method is called pricing.
a. geographic
b. odd
c. discriminatory
d. demand-based
e. segmented