Quiz 3

The Buyer
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Terms in this set (36)
The Buyer
In class I discussed a type of auction in which the price starts very high, then drops, and is won by the first bidder. In this case, the final price is set by...
False
Last year, Whole Foods increased the price of prepared sandwiches by 10% and observed that quantity sold decreased by about 12%. All costs remain unchanged. From just this information, we can conclude that breakeven Q has increased.
Demand-Based
Last season, the Pittsburgh Pirates baseball team offered one class of seats that used a pricing system which enabled the team "... to adjust single-game ticket prices in real-time based on ticket availability and changing factors such as league standings, opposing team, rivalries, star players, day of the week, and supply and demand" according to the team's official web site. This is an example of __________ ____________ pricing
All of these (Could increase, could decrease, could remain unchanged)
If price decreases, direct labor increases, and direct material decrease, then contribution margin....
Demand-Based
Assume that Pitt, as an incentive to increase demand for classes during early in the day, decreased tuition for 8 and 9 am classes by 10%. This is an example of...
Signaling
In the airline industry, we have seen many firms add fuel surcharges and fees for a second piece of luggage. This is probably a result of...
Sales Promotion and Shipping Costs
Giant Eagle used to have a program in which every $50 of groceries purchased earned you a $0.10 reduction on the price of gasoline and every 10 gallons of gasoline purchased earned you a 1% reduction on groceries. This is an example of...
None of the Above
In class, we estimated the cost of a marketing campaign in which a local dealership tried to get me to purchase a Mercedes, concluding that...
Promotion Mix
"The set of methods used to manage the customer buying process over time" refers to...
True
Media available for advertising have significantly changed in the past decade or so
Dell has better knowledge of the end userDell sells PCs both directly and through retail channels, while most Toshiba PCs are sold through retailers only. From this example we may reasonably conclude...MayIf break-even quantity -<capacity, then break-even _______ be achieved. (Will, May, Cannot, Insufficient Information)Building an entry barrierWhen a first mover chooses to price low to inhibit fast second movers, we say the firm is...Product cannot breakevenGiven the following data: DL=5 DM=5 F=100 P=10; the breakeven q is?TrueIn class, we estimated cost of a marketing campaign in which a local dealership tried to get me to purchase a Mercedes, concluding that co-branding can be used by luxury goodsDecreasing Variable CostsAssume you are a brand manager. You know from experience that the market is very price sensitive and all rivals are fighting to increase share. Your boss has challenged you to increase contribution margin by 4-5%FalseLast year, Whole Foods increased the price of prepared sandwiches by 10% and observed that quantity sold decreased by about 12%. All costs remain unchanged. From just this information, we can conclude that breakeven q has increased.Sales Promotion and Switching CostsGiant Eagle has an affiliation program in which every $50 in groceries earns you 10 cents reduction on the price of gasoling and every 10 gallons of gasoline purchased earns you a 1% reduction on groceries. This is an example of....FalseSales promotions are generally not used with premium-priced goodsNone of the AboveIn class, we estimated the marketing campaign in which a local dealership tried to get me to purchase a Mercedes, concluding that...Decreasing Variable CostsAssume you are a brand manager. You know from expereience that the market is very price sensitive and all rivals are fighting to increase share. Your boss has challenged you to increase contribution margin by 4-5% over the next year. Your first move is most likely to consider...FalseLast year whole foods increase the price of prepared sandwiches by 10% and observed that quantity sold decreased by about 12%. All costs remain unchanged. From just this information, we can conclude that...The Dealership probably paid all or most of the costs of the campaign and the Main focus of the campaign was public relationsIn class, we estimated the cost of a marketing campaign in which a local dealership tried to get me to purchase a Mercedes, concluding thatPrice DiscriminationPitt charges a lower tuition rate for in-state than for out-of-state students, this is an example of...MayOver the course of the product life cycle, promotion mix _______ changeSales PromotionMany college athletes get scholarships. This is an example of...FalseMany sports cars are simultaneously targeted at different market segments (an example in the notes concerned the Miata). Since the product is identical, we would expect the firm to use virtually the same promotion mix for both segments....FalseEarning monopolistic rent usually implies that explicit collusion has occurred.Signaling and Defensive PricingAccording to online.wsj "when target corp advertised plans to sell a $400 Dyson Ball Vacuum cleaner for $269, Best Buy Co responded by cutting its online price for the vacuum by $80 to $300. This is an example of...Demand-BasedA recent NYT article discusses a California college which will charge a higher tuition rate for very popular courses which routinely fill up. This is an example of ____________ ________ pricingticket price was set too lowASSUME THAT THE Best tickets for a concert are $250, and when made available to the public, they sell out in 15 minutes. From this was may infer thatOur low priceAssume market research learns that our firm's target market is especially price sensititve. In this case the firm's promotion mix should most probably emphasize...None of the ABoveAssume two pizza parlors "locked" into such extreme price competition that neither generates a profit. One owner increases price out of desperation, and puts a notice in his window "sorry but I have to raise the prices $1-2 starting today." Two hours later, the other owner also raises prices. Given this information, __________ most likely occurredNone of the aboveOriginally, Itunes sold songs for $.99. TOday they sell for $.69, $.99, and $1.29. Given just this information we would expect that the new price policy.....FalseIf breakeven quantity -< capacity and contribution margin >-, then breakeven will be achievedsales promotionSome restaurants allow children under 6 to eat for free. This is an example of...