Marketing Quiz 19

Maximization of cash should be a long term objective.
True False

Break-even analysis determines what sales volume must be reached for a product before the company's total revenue equals total costs.
True False

One strategy to get adequate distribution for a new product is to offer dealers a large trade allowance to help offset the costs of promotion.
True False

When pricing goals are mainly sales oriented, cost considerations usually dominate.
True False

Costs that do not change as output is increased or decreased are called stable costs.
True False

Sales-oriented pricing objectives are either based on market share or dollar or unit sales.
True False

The manufacturers that remain in the market toward the end of the maturity stage typically offer similar prices.
True False

Research has shown that products that are perceived to be of high quality tend to benefit less from price promotions that products perceived to be of lower quality.
True False

A firm has maximized its profits when its marginal revenue exceeds its marginal cost.
True False

High purchase prices may create feelings of pleasure and excitement in consumers.
True False

As products enter the growth stage of the product life cycle, prices generally begin to stabilize.
True False

Yield management systems can only be used by service industries.
True False

Firms that price their products solely on the basis of costs are adhering to the marketing concept.
True False

Profit maximization is the price at which supply and demand are equal, and there is no inclination for prices to rise or fall.
True False

Prices may actually rise for a product in the decline stage of the product life cycle.
True False

If demand for milk is inelastic, consumers will not change their purchasing habits greatly when the price of milk changes.
True False