Reference no: EM133313642
Questions
1. Sales promotion activities such as coupons, loyalty programs, and free samples are typically meant to stimulate interest and purchasing from the consumer.
True
False
2. Which one is not necessarily true about social media intelligence?
(Note: see Lecture Notes, Chp 16 on Social Media Intelligence)
a) Social media intelligence includes analyzing the content of a company's owned platforms. That is, analyzing what consumers are doing and saying on their owned platforms or 'owned platform performance.'
b) Social media intelligence can be used to evaluate the performance of an influencer's content, such as after the influencer becomes a partner with a brand. This is called 'influencer evaluation.'
c) Social media intelligence can give comprehensive insight into the general population perceptions on a topic. This is because social media platforms are always representative of the general population.
d) Using social media intelligence you can analyze any key words or phrases, such as gain metrics on mentions of the brand name, on competitor brand names, and/or on slogans and hashtags related to the brand's advertising.
3. Offering a new product at a relatively high introductory price when consumers, such as early adopters, are willing to pay more to get the new product quickly:
a) Penetration pricing
b) Price skimming
c) Dynamic pricing and/or surge pricing
d) List price
4. __________________ is offering the product at a low price in order to achieve quick acceptance of a product and/or gain market share by units.
a) Penetration pricing
b) Price skimming
c) Dynamic pricing and/or surge pricing
d) List price
5. ________________adjusts pricing in relation to supply and demand. If demand is high at some point (i.e., peak times for air travel), the company can increase the price and customers who really want the product or service, will pay this price.
a) Penetration pricing
b) Price skimming
c) Dynamic pricing and/or surge pricing
d) List price
6. The break-even analysis identifies the break-even point (BEP) where the total revenue from a quantity of product sold equals the company's total costs. Break-even analysis is a cost oriented approach. BEP does not consider the effect of price on the quantity that consumers will want - that is the demand for the product.
True
False
7. Using marginal analysis WHICH STATEMENT IS NOT TRUE?
a) Marginal analysis takes into consideration demand by considering various price and quantity combinations (to obtain corresponding changes in total revenue) and takes into account total costs (variable and fixed costs). Various profits can be attained with the formula of Total Revenue - Total Cost = Profit.
b) Marginal analysis focuses on analysis to find the price that brings the highest profit.
c) Marginal analysis is a cost oriented approach to pricing and does not incorporate demand (demand includes price and quantity) in setting prices.
8. What consumers expect to pay for a product is called :
a) Markup price
b) Reference price
c) Average cost pricing
9. Which factor could potentially influence a consumer's sensitivity to the price and make them LESS PRICE SENSITIVE (i.e., willing to pay a higher price)?
a) If competitors offer similar products
b) If the product or brand brings a significant perceived benefit to the consumer
c) If it is easy to compare prices
d) If it is a big expenditure
10. ________________ is a demand oriented pricing approach where a higher price suggests quality or status.
a) Prestige pricing
b) Price lining
c) Sequential price reductions over time
d) Bait pricing