

In class we considered the element of the Profit Equation. We

noted that the Unit Price times the Quantity Sold is equal to:
Selected
c.
Answer:
Total Revenue
Answers: a.
Average
Revenue
b.
Marginal
Revenue

c.
Total Revenue
d.
Marginal Cost
e.
Average Cost
Response Unit Price x Quantity Sold = Total
Feedback:
Revenue
 Question 2
10 out of 10 points
In class we consider the case of pizza pricing. If a small
pizza costs $8 and a large pizza is twice as big and it costs
$10, we would think that the consumer will:
Selected
b.
Answer:
See this as a "good value" and be happy with
the pricing.
Answers: a.
See this as a "rip off" and be pretty
dissatisfied.

b.
See this as a "good value" and be happy with
the pricing.
c.
Comparison shop for other fast food options.
d.
Order a Pepperoni Pizza with extra cheese.
e.
be unlikely to see any pricing advantage.
 Response If you are getting twice as much pizza, for
Feedback:
LESS than twice the cost, we would imagine
that the consumer will see this as a good value.
 Question 3
10 out of 10 points
In class, we thought about situations in which it might be
a good idea to OUTSOURCE customer service. Which of
the following is NOT one of the times when we might
outsource?
Selected
e.
Answer:
Actually, these are ALL situations in which we
might outsource.
Answers: a.
When we expect significant growth.
b.
In order to save money.
c.
When we have variable volume.
d.
When our business model shifts.

e.
Actually, these are ALL situations in which we
might outsource.
Response When to use customer service
Feedback:
outsourcing:
Significant growth
Save money
Testing and learning
Variable volume
Business model shifts
SO, ALL of the answers would be
correct.
 Question 4
10 out of 10 points
Based on lecture, a supermarket that offers to carry your
packages to your car for you is providing you with:
Selected
d.
Answer:
an ancillary service.
Answers: a.
their core service.
b.
 their primary
service.
c.
an unnecessary
expense.

d.
an ancillary service.
e.
a third level service.
Response Expected or optional supplements to the
Feedback:
primary purchase include things such at
Supermarket carryout.
 Question 5
10 out of 10 points
A publicity tool frequently used by nonprofit services,
which uses free space or time donated by the media, is
referred to as
Selected
e.
Answer:
a public service
announcement.
Answers: a.
a promotion.
b.
an advertisement.
c.
a press release.
d.
a cooperative
advertisement.

e.
a public service
announcement.
Response For many nonprofit service organizations, the
Feedback:
most common form of publicity is the public
service announcement (PSA) because it is free.

MC Qu. 182 A publicity tool frequently used by

nonprofi...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
 Learning Objective: 12-05 Explain the role of
the seven Ps in the services marketing mix.
Level of Difficulty: 2 Medium
Topic: Services Marketing
 Question 6
10 out of 10 points
When they were first introduced, peel-back aluminum
seals were seen as a great alternative to using a
traditional can opener to open cans because many people
sliced their fingers with can openers. As soon as the
technology became more widely available, many
manufacturers switched to this safer, more flexible seal.
This packaging innovation demonstrated the importance
of a
Selected
a.
Answer:
functional benefit.
Answers:
a.
functional benefit.
b.
reseller benefit.
c.
communication
benefit.
d.
perceptual benefit.
e.
psychological
benefit.
Response Consumer protection is an aspect of the
Feedback:
functional benefits of packaging.

MC Qu. 345 When they were first introduced,

peel-back a...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 11-04 Describe the role of
packaging, labeling, and warranties in the
marketing of a product.
Level of Difficulty: 3 Hard
Topic: Packaging
 Question 7
10 out of 10 points
 List the following competitive markets
from least competitive to most competitive.
Selected
e.
Answer:
pure monopoly, oligopoly, monopolistic
competition, and pure competition
Answers: a.
monopolistic competition, pure monopoly, pure
competition, and oligopoly
b.
pure competition, monopolistic competition,
oligopoly, and pure monopoly
c.
pure competition, monopolistic competition,
pure monopoly, and oligopoly
d.
oligopoly, pure competition, monopolistic
competition, and pure monopoly

e.
pure monopoly, oligopoly, monopolistic
competition, and pure competition
Response From the most to the least competitive,
Feedback
:
economists delineate four types of competitive
markets: pure competition, monopolistic
competition, oligopoly, and pure monopoly. See
Figure 13-3 in the textbook.

MC Qu. 121 List the following competitive

markets from ...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 13-02 Recognize the
objectives a firm has in setting prices and the
constraints that restrict the range of prices a
firm can charge.
Level of Difficulty: 2 Medium
Topic: Pricing Strategy
 Question 8
10 out of 10 points
The environmental challenges of packaging and labeling
are often global in nature. These include all of the
following except
 Selected
d.
Answer:
cultural norms.
Answers: a.
the shortage of viable landfill
sites.
b.
growth of solid waste.
c.
the composition of packaging
materials.

d.
cultural norms.
e.
recycling.
Response Global consumers are concerned about the
Feedback
:
growth of solid waste; the shortage of viable
landfill sites; the amount, composition, and
disposal of packaging materials; and recycling
packaging materials.

MC Qu. 354 The environmental challenges of

packaging an...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 11-04 Describe the role of
packaging, labeling, and warranties in the
marketing of a product.
Level of Difficulty: 2 Medium
Topic: Packaging
 Question 9
10 out of 10 points
Developing, pricing, promoting, and delivering services is
challenging because the quality of a service is often
Selected
b.
Answer:
inconsistent.
Answers: a.
inseparable.

b.
inconsistent.
c.
 inventoried.
d.
tied to a product.
e.
independent of the quality
delivered.
Respons Developing, pricing, promoting, and delivering
e
Feedback
services is challenging because the quality of a
: service is often inconsistent. Because services
depend on the people who provide them, their
quality varies with each person's capabilities
and day-to-day job performance.

MC Qu. 25 Developing, pricing, promoting, and

deliveri...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 12-01 Describe four unique
elements of services.
Level of Difficulty: 1 Easy
Topic: Components and Classifications of
Products and Services
 Question 10
0 out of 10 points
Which of the following statements about services
is most accurate?
Selected
e.
Answer:
There is much more in common with the
marketing of services and business products
than there is between the marketing of services
and consumer products.
Answers: a.
Whether tangible or intangible, the marketing of
services is exactly the same as the marketing of
products or ideas since they both satisfy
customer needs.
b.
Although a major contributor to GDP nationally,
services play only a minor role in GDP on a
global scale.

c.
Exports of services is one of the few areas in
 which the United States has a trade surplus.
d.
Very few jobs in the United States are in the
services sector.
e.
There is much more in common with the
marketing of services and business products
than there is between the marketing of services
and consumer products.
Respons The marketing of services is different than the
e
Feedbac
marketing of goods. By 2022, more than 130
k: million people will be employed in the services
sector. Services represent a large export
business for the United States. More than 46
percent of the U.S. gross domestic product
(GDP) comes from services. Services also
represent a large export business—the $722
billion of service exports in 2014 is one of the
few areas in which the United States has a trade
surplus.

MC Qu. 10 Which of the following statements

about serv...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 12-01 Describe four unique
elements of services.
Level of Difficulty: 2 Medium
Topic: Components and Classifications of
Products and Services

In class we consider the case of pizza pricing. If a small pizza costs
$8 and a large pizza is twice as big and it costs $10, we would
think that the consumer will:
Selected
b.
Answer:
See this as a "good value" and be happy with
the pricing.
Answers: a.
See this as a "rip off" and be pretty dissatisfied.

b.
See this as a "good value" and be happy with
the pricing.
 c.
Comparison shop for other fast food options.
d.
Order a Pepperoni Pizza with extra cheese.
e.
be unlikely to see any pricing advantage.
Response If you are getting twice as much pizza, for LESS than
Feedback:
twice the cost, we would imagine that the consumer
will see this as a good value.
 Question 2
10 out of 10 points
In class we noted that a firm's "Service Image" is conveyed
by its "service products." In choosing the service
dimensions to create a competitive position, which service
dimensions should be emphasized?
Selected
c.
Answer:
The dimension which are most valued by the
customers.
Answers: a.
Those dimensions which are the cheapest to
provide.
b.
The dimensions which no other competitor
offers.

c.
The dimension which are most valued by the
customers.
d.
The dimensions which will create the highest
status.
e.
The dimensions which provide us the least
additional effort.
Response Service Image is conveyed by the firm’s
Feedback:
“service products.” The dimensions used
should be those valued by the customers.
 Question 3
10 out of 10 points
Based on lecture, which property of services can
consumers evaluate only from from a subjective evaluation
of the entire process.?
 Selected
a.
Answer:
Credence
Properties
Answers:
a.
Credence
Properties
b.
Search Properties
c.
Experience
Properties
d.
Real Estate
Properties
e.
Props properties
Response Credence Properties -- Attributes inferred
Feedback:
from a subjective evaluation of the entire
process.
 Question 4
10 out of 10 points
In class we considered the element of the Profit Equation.
We noted that the Unit Price times the Quantity Sold is
equal to:
Selected
c.
Answer:
Total Revenue
Answers: a.
Average
Revenue
b.
Marginal
Revenue

c.
Total Revenue
d.
Marginal Cost
e.
Average Cost
Response Unit Price x Quantity Sold = Total
Feedback:
Revenue
 Question 5
10 out of 10 points
The type of analysis that compares the differences
between consumers' expectations about a service and
their experience with it based on dimensions of service
quality is referred to as
Selected
c.
Answer:
gap analysis.
Answers: a.
customer relationship
management.
b.
service encounter differential.

c.
gap analysis.
d.
a customer contact audit.
e.
a service audit.
Response Key term definition—gap analysis.
Feedback:

MC Qu. 113 The type of analysis that

compares the diffe...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 12-03 Explain how
consumers purchase and evaluate services.
Level of Difficulty: 1 Easy
Topic: Consumer Purchase Decision Process
 Question 6
10 out of 10 points
The belief that products originating from one country
would be of better or worse quality than the products from
another country illustrates the __________ benefits that
packaging information can provide.
Selected
d.
Answer:
perceptual
Answers: a.
functional
b.
financial
 c.
physical

d.
perceptual
e.
communicati
on
Respons Perceptual benefits of packaging refer to the
e
Feedbac
perception created in the consumer's mind that
k: includes the idea of "country of origin," in which
one country's products are perceived as being
better than another's products. The perceptual
benefit comes from printing the manufacturer's
country of origin on the label.

MC Qu. 347 The belief that products originating

from on...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 11-04 Describe the role of
packaging, labeling, and warranties in the
marketing of a product.
Level of Difficulty: 2 Medium
Topic: Packaging
 Question 7
0 out of 10 points
All of the following statements about price are true except
Selected
a.
Answer:
small changes in price can have big effects on
both the number of units sold and company
profit.
Answers: a.
small changes in price can have big effects on
both the number of units sold and company
profit.
b.
the price for a product or service must earn a
profit for the company.

c.
the price for most products and services is
always the same.
d.
 the price must be "right"—in the sense that
customers must be willing to pay it.
e.
the price must generate enough sales dollars to
pay for the cost of developing, producing, and
marketing the product.
Respons Among all marketing and operations factors in a
e
Feedbac
business firm, price has a unique role. It is the
k: place where all other business decisions come
together. The price must be "right"—in the sense
that customers must be willing to pay it; it must
generate enough sales dollars to pay for the cost
of developing, producing, and marketing the
product; and it must earn a profit for the
company. Small changes in price can have big
effects on both the number of units sold and
company profit.

MC Qu. 11 All of the following statements about

price ...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 13-01 Identify the elements
that make up a price.
Level of Difficulty: 2 Medium
Topic: Setting Prices
 Question 8
10 out of 10 points
Pricing constraints refers to
Selected
d.
Answer:
factors that limit the range of prices a firm
may set.
Answers: a.
barriers that must be overcome in order to set
pricing objectives.
b.
competitive pricing advantages one firm has
over another.
c.
different pricing strategies for each of the
firm's products.

d.
 factors that limit the range of prices a firm
may set.
e.
barriers to entry a firm faces when launching
a new product.
Response Key term definition—pricing constraints.
Feedback:

MC Qu. 98 Pricing constraints refers to

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 13-02 Recognize the
objectives a firm has in setting prices and the
constraints that restrict the range of prices a
firm can charge.
Level of Difficulty: 1 Easy
Topic: Pricing Strategy
 Question 9
10 out of 10 points
Calculate a firm's total revenue (TR) using the following
information: the unit price (P) for a product is $40; the
quantity sold (Q) is 2,000; the fixed cost (FC) is $50,000;
and the variable cost (VC) is $20,000.
Selected
a.
Answer:
$10,000
Answers:
a.
$10,000
b.
$50,000
c.
$110,000
d.
$150,000
e.
cannot be determined with the information
provided
Response A firm's profit equation = Total revenue − Total
Feedback
:
cost or [(Unit price × Quantity sold) − (Fixed
cost + Variable cost)]. Profit = (TR − TC) = [(P
× Q) − (FC + VC)] = [($40 × 2,000) − ($50,000
+ $20,000)] = $10,000.
 MC Qu. 48 Calculate a firm's total revenue (TR)
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 13-01 Identify the elements
that make up a price.
Level of Difficulty: 3 Hard
Topic: Setting Prices
 Question 10
10 out of 10 points
The concept of internal marketing is based on the notion
that a service organization must focus on its __________
before successful programs can be directed at customers.
Selected
d.
Answer:
employees
Answers: a.
competitor
s
b.
prospects
c.
shareholde
rs

d.
employees
e.
suppliers
Response Key term definition—internal marketing.
Feedback:

MC Qu. 187 The concept of internal marketing

is based o...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 12-06 Discuss the
important roles of internal marketing and
customer experience management in service
organizations.
Level of Difficulty: 1 Easy
Topic: Services Marketing


In class, we considered the example of tuition at KSU. We noted

 that the tuition does not increase from 11 to 18 credit hours. What
aspect of "price" did this represent?
Selected
b.
Answer:
This represents a "discount" on the cost of taking more
credit hours.
Answers: a.
It is the "list price" for these services.

b.
This represents a "discount" on the cost of taking more
credit hours.
c.
This pricing approach to tuition represents an "add on"
to the published tuition in the form of an "extra fee" for
more credit hours taken.
d.
This is a form of "retroactive tax" paid by students who
take more courses.
e.
This IS the final tuition actually paid.
Response The Price in this case is the actual tuition paid. This
Feedback
:
actual tuition is the published tuition, less any incentives
or allowances (such as scholarships, other financial aid,
discounts offered for the number of courses taken), plus
any extra fees (such as the fee charged for legal
services). The fact that KSU does not charge MORE for
additional hours over 11 is a DISCOUNT (incentive or
allowance) on the published tuition.
 Question 2
10 out of 10 points
According to class, the "Core Service" offered by Charles
Schwab is:
Selected
c.
Answer:
the use of a brokerage account to buy and
sell stocks.
Answers: a.
investment advice.
b.
online banking.

c.
the use of a brokerage account to buy and
sell stocks.
 d.
foreign exchange services.
e.
targeted advertising.
Response The Core/Primary Services of an investment
Feedback:
services company like Charles Schwab is to
provide the use of a brokerage account to buy
and sell stocks.
 Question 3
10 out of 10 points
In Marketing in the News, we heard that Japanese retailer Uniqlo
has a new campaign that is positioning the brand as:
Selected
a.
Answer:
the thoughtful apparel brand, the anti-fast fashion
brand.
Answers:
a.
the thoughtful apparel brand, the anti-fast fashion
brand.
b.
the casual luxury brand.
c.
the deep, fast fashion brand.
d.
the global quality leader brand.
e.
the brand for the newly chic consumer.
Response Uniqlo is proclaiming itself the thoughtful apparel
Feedback:
brand, the anti-fast fashion brand. [Positioning the
Brand]
 Question 4
10 out of 10 points
Based on lecture, which of the following would be a good
example of an ancillary service seen in B2B marketing?
Selected
e.
Answer:
Favorable credit terms
Answers: a.
Convenient free parking
b.
High quality products
c.
 Products meeting the technical specifications
in the contract
d.
The lowest price available

e.
Favorable credit terms
Response Ancillary Services expected in B2B
Feedback:
marketing
Prompt delivery
Favorable credit terms
Responsive (24x7?) customer service
 Question 5
10 out of 10 points
For nonprofit organizations, excesses in revenue over
expenses are
Selected
c.
Answer:
returned to the organization's treasury to allow
the continuation of the service.
Answers: a.
taxed at one-half the rate for profit
organizations.
b.
distributed equally to all of the organization's
shareholders.

c.
returned to the organization's treasury to allow
the continuation of the service.
d.
taxed at a reduced rate if the revenue is to be
used in keeping with the organization's core
mission.
e.
not taxed at all unless it is a religious
organization.
Response When excess revenue exists, the money goes
Feedback:
back into the organization's treasury to allow
the continuation of the service.

MC Qu. 82 For nonprofit organizations,

excesses in rev...
AACSB: Analytical Thinking
 Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 12-02 Recognize how
services differ and how they can be classified.
Level of Difficulty: 2 Medium
Topic: Components and Classifications of
Products and Services
 Question 6
10 out of 10 points
Objectives such as profit, market share, and survival, as
well as constraints such as demand for product class and
brand, newness, costs, and competition are issues that
would be addressed during __________ of the price-setting
process.
Selected
a.
Answer:
Step
1
Answers:
a.
Step
1
b.
Step
2
c.
Step
3
d.
Step
4
e.
Step
5
Response During Step 1, a firm would identify pricing
Feedback
:
objectives such as profit, market share, and
survival and pricing constraints such as demand
for product class and brand, newness of the
offering, costs, and competition. See Figure 13-
2 in the textbook.

MC Qu. 57 Objectives such as profit, market

share, and...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
 Blooms: Understand
Learning Objective: 13-01 Identify the elements
that make up a price.
Level of Difficulty: 2 Medium
Topic: Setting Prices
 Question 7
10 out of 10 points
If the CEO of the Clorox Co. were to say, "We want to
control 60 percent of the bleach market within the next
five years," he would have set a __________ pricing
objective.
Selected
d.
Answer:
market share
Answers: a.
profit
b.
sales
c.
unit volume

d.
market share
e.
social
responsibility
Response The CEO has set a numerical target for the
Feedback:
percentage of the total bleach market,
including his own sales, which is a definition of
market share.

MC Qu. 90 If the CEO of the Clorox Co. were to

say, W...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 13-02 Recognize the
objectives a firm has in setting prices and the
constraints that restrict the range of prices a
firm can charge.
Level of Difficulty: 3 Hard
Topic: Pricing Strategy
 Question 8
10 out of 10 points
Value-pricing refers to
 Selected
c.
Answer:
the practice of simultaneously increasing
product and service benefits while maintaining
or decreasing price.
Answers: a.
the ratio of perceived benefits to price.
b.
the money or other considerations exchanged
for the ownership or use of a product or
service.

c.
the practice of simultaneously increasing
product and service benefits while maintaining
or decreasing price.
d.
the ratio of price to perceived benefits.
e.
list price minus incentives and allowances plus
extra fees.
Response Key term definition—value-pricing.
Feedback:

MC Qu. 32 Value-pricing refers to

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 13-01 Identify the
elements that make up a price.
Level of Difficulty: 1 Easy
Topic: Setting Prices
 Question 9
10 out of 10 points
Edinberry's, a restaurant located in south Texas, offers a
variety of foods and entertainment opportunities to its
customers. The restaurant is famous for its fine steaks,
spicy chili, and outstanding customer service. To maintain
the restaurant's reputation for putting its customers first,
the marketing manager at Edinberry's has developed
marketing activities that are directed at its waiters and
waitresses. These marketing activities are an example of
__________ and are designed to help these restaurant
employees maintain an exceptional customer experience.
Selected
a.
Answer:
internal marketing
 Answers:
a.
internal marketing
b.
external marketing
c.
service marketing
d.
stakeholder
marketing
e.
employee
marketing
Response The concept of internal marketing suggests that
Feedback
:
before a service firm can be successful with the
marketing efforts it directs toward its
customers, the firm must engage in marketing
directed at its employees.

MC Qu. 189 Edinberry's, a restaurant located in

sou
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 12-06 Discuss the
important roles of internal marketing and
customer experience management in service
organizations.
Level of Difficulty: 3 Hard
Topic: Services Marketing
 Question 10
10 out of 10 points
As a dimension of service quality, the caring,
individualized attention provided to customers as a
dimension of service quality is referred to as
Selected
e.
Answer:
empathy.
Answers: a.
reliability.
b.
responsivene
ss.
c.
competence.
 d.
assurance.

e.
empathy.
Respons Dimensions of service quality include: (1)
e
Feedbac
reliability—the ability to perform the promised
k: service dependably and accurately; (2)
tangibility—the appearance of physical facilities,
equipment, personnel, and communication
materials; (3) responsiveness—the willingness to
help customers and provide prompt service; (4)
assurance—the knowledge and courtesy of
employees and their ability to convey trust and
confidence; and (5) empathy—the caring,
individualized attention provided to customers.
See Figure 12-6 in the textbook.

MC Qu. 136 As a dimension of service quality,

the carin...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 12-03 Explain how
consumers purchase and evaluate services.
Level of Difficulty: 2 Medium
Topic: Consumer Purchase Decision Process

In class, we looked at the topic of "Value" as the ratio of perceived
benefits to price. Importantly, we noted that price should be equal
to:
Selected
d.
Answer:
the perceived value of the attributes being
offered.
Answers: a.
the cost of the attributes being offered.
b.
the competition's price.
c.
the value offered by competitive products.

d.
the perceived value of the attributes being
offered.
e.
 the profit we need to have.
Response As noted in class, PRICE needs to be equal to the
Feedback:
PERCEIVED VALUE of the attributes being offered.
 Question 2
10 out of 10 points
In class, we considered the way in which value-pricing is
used by firms like McDonald's to provide more value to
consumers. In general, this one useful approach to get
consumers' attention for our product. However, as
discussed, a practical problem can arise if:
Selected
a.
Answer:
The COSTS for ingredients may rise, so that the
firm cannot produce a profit at the value-priced
amount.
Answers:
a.
The COSTS for ingredients may rise, so that the
firm cannot produce a profit at the value-priced
amount.
b.
COMPETITION can charge us with illegal price
competition.
c.
Consumer groups accuse us of caring more
about profits than about our consumers' health.
d.
Managers cannot calculate the value price in
the store
e.
as a practical matter, we pointed out that value-
pricing always reduces our profits.
Respons In class, we noted that value pricing is the
e
Feedbac
practice of simultaneously increasing product
k: and service benefits while maintaining or
decreasing price. We pointed out that firms like
McDonald's do this by offering "extra value
meals" or meals for $1. HOWEVER, in today's
economy, with ingredient costs rising and
expected to remain high McDonald's may need
to raise prices on its popular dollar menu.
 Question 3
10 out of 10 points
 In class, we considered the example of tuition at KSU. We
noted that the tuition does not increase from 11 to 18
credit hours. What aspect of "price" did this represent?
Selected
b.
Answer:
This represents a "discount" on the cost of
taking more credit hours.
Answers: a.
It is the "list price" for these services.

b.
This represents a "discount" on the cost of
taking more credit hours.
c.
This pricing approach to tuition represents an
"add on" to the published tuition in the form of
an "extra fee" for more credit hours taken.
d.
This is a form of "retroactive tax" paid by
students who take more courses.
e.
This IS the final tuition actually paid.
Respons The Price in this case is the actual tuition paid.
e
Feedbac
This actual tuition is the published tuition, less
k: any incentives or allowances (such as
scholarships, other financial aid, discounts
offered for the number of courses taken), plus
any extra fees (such as the fee charged for legal
services). The fact that KSU does not charge
MORE for additional hours over 11 is a
DISCOUNT (incentive or allowance) on the
published tuition.
 Question 4
10 out of 10 points
In Marketing in the News, we heard that marketing need to be
aware of how times and consumers' behaviors have changed. For
example, the median marriage age in the 1970's was 23, today the
median age for marriage is:
Selected
d.
Answer:
30
Answers: a.
21
b.
25
 c.
27

d.
30
e.
33
Response The median marriage age is now 30, compared to
Feedback:
23 back in the 1970s.
 Question 5
10 out of 10 points
A limited-coverage warranty
Selected
b.
Answer:
states the bounds of coverage and, more
important, areas of noncoverage.
Answers: a.
provides a written statement of manufacturer
liability.

b.
states the bounds of coverage and, more
important, areas of noncoverage.
c.
has no limits of noncoverage.
d.
assigns responsibility for product deficiencies
to the manufacturer.
e.
assigns responsibility for product deficiencies
on misuse to the consumer.
Response Text term definition—limited-coverage
Feedback:
warranty.

MC Qu. 363 A limited-coverage warranty

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 11-04 Describe the role of
packaging, labeling, and warranties in the
marketing of a product.
Level of Difficulty: 1 Easy
Topic: Packaging
 Question 6
10 out of 10 points
Which of the following statements regarding the place
element of services is most accurate?
Selected
d.
Answer:
Until recently, customers generally had to go to
the service provider's physical location to
purchase the service.
Answers: a.
Place has little impact on the marketing of
services because there are so many
intermediaries from which a consumer may
choose.
b.
The distribution site and the service provider
are the intangible components of the service.
c.
Place is an especially important factor because
of the inconsistency between the service and the
service provider.

d.
Until recently, customers generally had to go to
the service provider's physical location to
purchase the service.
e.
Technology is an effective way to bring services
to the customer, but only if the consumer is a
new user. Otherwise, the disadvantages
outweigh the benefits.
Respons Place or distribution is a major factor in
e
Feedbac
developing a service marketing strategy because
k: of the inseparability of services from the
producer. Rarely are intermediaries involved in
the distribution of a service; the distribution site
and the service deliverer are the tangible
components of the service. Until recently,
customers generally had to go to the service
provider's physical location to purchase the
service.

MC Qu. 180 Which of the following statements

regarding ...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 12-05 Explain the role of the
 seven Ps in the services marketing mix.
Level of Difficulty: 2 Medium
Topic: Services Marketing
 Question 7
10 out of 10 points
Giving unauthorized free products or services to
customers to inflate their customer satisfaction levels is
referred to as
Selected
c.
Answer:
service
sweethearting.
Answers: a.
BOGOs.
b.
Facebook "liking."

c.
service
sweethearting.
d.
pay-for-research.
e.
social
incentivizing.
Response Service sweethearting is giving unauthorized
Feedback:
free products or services to customers.

MC Qu. 216 Giving unauthorized free products

or service...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 12-06 Discuss the
important roles of internal marketing and
customer experience management in service
organizations.
Level of Difficulty: 1 Easy
Topic: Services Marketing
 Question 8
10 out of 10 points
The Reynolds Wrap aluminum foil box has two side tabs
that say "Press Here to Lock Roll" to keep the roll of foil in
place during use. This demonstrates which elements of
good packaging?
 Selected
d.
Answer:
communication benefits and functional
benefits
Answers: a.
perceptual benefits and functional
benefits
b.
protection benefits and functional
benefits
c.
communication benefits and perceptual
benefits

d.
communication benefits and functional
benefits
e.
functional benefits and protection
benefits
Response The packaging has a communication benefit (it
Feedback:
provides instructions) as well as a functional
benefit (following the directions will keep the
roll from falling out of the box during use).

MC Qu. 348 The Reynolds Wrap aluminum foil

box has two ...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 11-04 Describe the role of
packaging, labeling, and warranties in the
marketing of a product.
Level of Difficulty: 3 Hard
Topic: Packaging
 Question 9
10 out of 10 points
Which of the following statements about perceptual
benefits conveyed by a product's packaging and labeling
is not true?
Selected
c.
Answer:
Packaging and labeling satisfy the legal
requirements for the conveyance of information.
Answers a.
: Global brands can benefit from "country of origin
 or manufacture" perceptions since consumers
tend to hold ethnocentric stereotypes about
country-product pairings that they judge "best."
b.
Packaging and labeling have been shown to
enhance brand recognition and facilitate the
formation of strong, favorable, and unique brand
associations.

c.
Packaging and labeling satisfy the legal
requirements for the conveyance of information.
d.
Changes in packaging and labeling can uphold a
brand's image in consumers' minds.
e.
The color, shape, and graphics of a package or
label distinguish one brand from another.
Response Satisfying the legal requirements for the
Feedback:
conveyance of information is the
communications benefit of packaging and
labeling.

MC Qu. 346 Which of the following statements

about perc...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 11-04 Describe the role of
packaging, labeling, and warranties in the
marketing of a product.
Level of Difficulty: 2 Medium
Topic: Packaging
 Question 10
10 out of 10 points
Which of the following is the best example of a people-
based service?
Selected
c.
Answer:
accounting
Answers: a.
movie theaters
b.
airlines
 c.
accounting
d.
vending
machines
e.
taxis
Response Figure 12-4 in the textbook shows that of
Feedback:
those services listed, only accountants are a
people-based service.

MC Qu. 71 Which of the following is the best

example o...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 12-02 Recognize how
services differ and how they can be classified.
Level of Difficulty: 2 Medium
Topic: Components and Classifications of
Products and Services


As we discussed in class, services differ from products (goods) in

along a variety of dimensions. Which characteristic of services
means that marketers must be careful in the selection and training
of their service personnel? The characteristic of:
Selected
b.
Answer:
Perishability of
Inventory
Answers: a.
Inseparability
b.
Perishability of
Inventory

c.
Inconsistency
d.
Intangibility
e.
Indecisive
Response Service delivery is INCONSISTENT because it
 Feedback: depends on the personnel delivering the service.
This lack of standardization means inconsistent
delivery and quality depending on the person
performing.
Marketers can minimize this by employee selection,
training, and by setting service performance
standards.
 Question 2
10 out of 10 points
In class, we looked at services such as personal shoppers,
take out food, and house and lawn care as growing to help
consumers deal with:
Selected
a.
Answer:
a poverty of time
Answers:
a.
a poverty of time
b.
excess discretionary income
c.
self-actualization needs
d.
to help companies increase their
productivity
e.
to help companies increase their
profits
Response These were discussed as being motivated by
Feedback:
consumers' poverty of time
 Question 3
10 out of 10 points
According to class, the "Core Service" offered by Charles
Schwab is:
Selected
c.
Answer:
the use of a brokerage account to buy and
sell stocks.
Answers: a.
investment advice.
b.
online banking.

c.
 the use of a brokerage account to buy and
sell stocks.
d.
foreign exchange services.
e.
targeted advertising.
Response The Core/Primary Services of an investment
Feedback:
services company like Charles Schwab is to
provide the use of a brokerage account to buy
and sell stocks.
 Question 4
10 out of 10 points
According to the lecture, about how many U.S. jobs are in
the services market?
Selected
c.
Answer:
116 million
Answers: a.
5.5 trillion
b.
75 billion

c.
116 million
d.
30 million
e.
A
quadrillion
Response The U.S. Bureau of Statistics indicates there
Feedback:
are about 116 million service jobs in the U.S.
 Question 5
10 out of 10 points
Occasionally, prices may rise later in the product's life
cycle. This is often due to
Selected
d.
Answer:
nostalgia and fad factors.
Answers: a.
new competitors entering the market.
b.
production economies of scale.
 c.
a decrease in the price of raw materials.

d.
nostalgia and fad factors.
e.
the type of competitive market shifts from
pure monopoly to pure competition.
Response Sometimes, when nostalgia or fad factors come
Feedback
:
into play, prices may rise later in the product's
life cycle. Collectibles can experience
skyrocketing prices. But these prices can
nosedive, too, when the fad wears off.

MC Qu. 106 Occasionally, prices may rise later

in the p...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 13-02 Recognize the
objectives a firm has in setting prices and the
constraints that restrict the range of prices a
firm can charge.
Level of Difficulty: 2 Medium
Topic: Pricing Strategy
 Question 6
10 out of 10 points
Thirty-six percent of sales at supermarkets in the United
Kingdom carry the stores' own brand names. Eighteen
percent of all supermarket sales in France and Germany
carry the stores' own brand names. And in the United
States, 14 percent carry the stores' own brand names.
These stores use a __________ strategy to sell other
manufacturers' products with their own brand names.
Selected
e.
Answer:
private branding
Answers: a.
generic branding
b.
multibranding
c.
co-branding
d.
multiproduct
 branding

e.
private branding
Response Private branding occurs when a company
Feedback:
manufactures products but sells them under
the brand name of a wholesaler or retailer.

MC Qu. 325 Thirty-six percent of sales at

supermarkets ...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 11-03 Recognize the
importance of branding and alternative
branding strategies.
Level of Difficulty: 3 Hard
Topic: Branding Strategy
 Question 7
10 out of 10 points
According to the price equation, final price equals list
price minus __________ plus extra fees.
Selected
e.
Answer:
incentives and
allowances
Answers: a.
profits
b.
commissions
c.
trade-ins
d.
taxes

e.
incentives and
allowances
Response Text term definition—price equation. See
Feedback:
Figure 13-1 in the textbook.

MC Qu. 18 According to the price equation,

final price...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
 Blooms: Remember
Learning Objective: 13-01 Identify the
elements that make up a price.
Level of Difficulty: 1 Easy
Topic: Setting Prices
 Question 8
10 out of 10 points
Some specialty retailers pursue a __________ pricing
objective to generate cash to ward off bankruptcy.
Selected
b.
Answer:
survival
Answers: a.
market share

b.
survival
c.
sales revenue
d.
single product
line
e.
profit
Respons In some instances, profits, sales, and market
e
Feedbac
share are less important objectives of the firm
k: than mere survival. For example, RadioShack,
an electronics retail chain, faced survival
problems because it couldn't compete with the
prices offered by other retailers. The company
enacted price-matching programs and promoted
large discounts on its merchandise to raise cash
and hopefully stave off bankruptcy. These efforts
failed and RadioShack declared bankruptcy in
2015.

MC Qu. 93 Some specialty retailers pursue a

__________...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 13-02 Recognize the
objectives a firm has in setting prices and the
constraints that restrict the range of prices a
firm can charge.
 Level of Difficulty: 2 Medium
Topic: Pricing Strategy
 Question 9
10 out of 10 points
Calculate a firm's total revenue (TR) using the following
information: the unit price (P) for a product is $40; the
quantity sold (Q) is 2,000; the fixed cost (FC) is $50,000;
and the variable cost (VC) is $20,000.
Selected
a.
Answer:
$10,000
Answers:
a.
$10,000
b.
$50,000
c.
$110,000
d.
$150,000
e.
cannot be determined with the information
provided
Response A firm's profit equation = Total revenue − Total
Feedback
:
cost or [(Unit price × Quantity sold) − (Fixed
cost + Variable cost)]. Profit = (TR − TC) = [(P
× Q) − (FC + VC)] = [($40 × 2,000) − ($50,000
+ $20,000)] = $10,000.

MC Qu. 48 Calculate a firm's total revenue (TR)

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 13-01 Identify the elements
that make up a price.
Level of Difficulty: 3 Hard
Topic: Setting Prices
 Question 10
10 out of 10 points
Dozens of regional, private brands of peanut butter
compete with national brands like Skippy and Jif. In this
type of market,
 Selected
a.
Answer:
both price competition and nonprice
competition exist.
Answers:
a.
both price competition and nonprice
competition exist.
b.
these firms must maintain local customer
loyalty.
c.
these private brands must go head-to-head or
steal market share from nationally recognized
brands.
d.
these private brands must keep other regional
businesses from entering the market.
e.
these private brands could avoid
cannibalization if they sell their product both in
stores and online.
Respons Dozens of regional, private brands of peanut
e
Feedbac
butter compete with national brands like Skippy
k: and Jif. Both price competition (regional, private
brands being lower than national brands) and
nonprice competition (product features and
advertising) exist. This is an example of
monopolistic competition.

MC Qu. 130 Dozens of regional, private brands

of peanut...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 13-02 Recognize the
objectives a firm has in setting prices and the
constraints that restrict the range of prices a
firm can charge.
Level of Difficulty: 3 Hard
Topic: Pricing Strategy

According to the lecture, about how much does the service sector
contribute to the U.S. economy?
 Selected
a.
Answer:
$116 million
Answers: a.
$116 million
b.
$550 million
c.
$2 billion

d.
$5.5 trillion
e.
A quadrillion
dollars
Response Services contribute over $5.5 Trillion and 116 million
Feedback:
jobs to the U.S. economy.
 Question 2
0 out of 10 points
In class, we considered the example of tuition at KSU. We
looked at the $85 College of Business Undergraduate
Program Fee. What aspect of "price" did this represent?
Selected
b.
Answer:
This represents a "discount" on the cost being
in the College of Business.
Answers: a.
It is the "list price" for these services.
b.
This represents a "discount" on the cost being
in the College of Business.

c.
The $85 represents an "add on" to the
published tuition in the form of an "extra fee."
d.
The $85 is actually a form of "scholarship" that
reduces the real tuition paid.
e.
This IS the tuition.
Respons The Price in this case is the actual tuition paid.
e
Feedback
This is the published tuition, less any incentives
: or allowances (such as scholarships, other
financial aid, discounts offered for the number
 of courses taken), plus any extra fees (such as
the fee charged by the College of Business).
 Question 3
10 out of 10 points
In thinking about price, we noted that the Final Price paid
may be reduced by "incentive and allowances." What is an
example of this for college tuition?
Selected
c.
Answer:
Undergraduate
Scholarship
Answers: a.
Admissions Application
Fee
b.
Returned Check Fee

c.
Undergraduate
Scholarship
d.
Late registration fee
e.
Out of state student fee
Response The only item in the list that represents an
Feedback:
incentive is a scholarship.
 Question 4
10 out of 10 points
In class, we asked ourselves, "What is the IMPORTANCE
of Price?" We responded that:
Selected
a.
Answer:
Price is the only thing that produces
REVENUE...everything else is COST.
Answers:
a.
Price is the only thing that produces
REVENUE...everything else is COST.
b.
Price is important because it affect the stock
value of the company.
c.
Price is THE key factor in the Marketing Mix.
d.
 Price is important, because we MUST
understand it and keep it LOW.
e.
The importance of Price is that it is hard to set.
Response Price is the only thing that produces
Feedback:
REVENUE...everything else is COST.
 Question 5
10 out of 10 points
Factors that limit the range of prices a firm may set are
referred to as
Selected
b.
Answer:
pricing
constraints.
Answers: a.
pricing
restraints.

b.
pricing
constraints.
c.
demand factors.
d.
pricing barriers.
e.
pricing
restrictions.
Response Key term definition—pricing constraints.
Feedback:

MC Qu. 96 Factors that limit the range of prices

a fir...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 13-02 Recognize the
objectives a firm has in setting prices and the
constraints that restrict the range of prices a
firm can charge.
Level of Difficulty: 1 Easy
Topic: Pricing Strategy
 Question 6
10 out of 10 points
 Companies can choose from several different branding
strategies. Companies such as Toro, with Toro
snowblowers, Toro mowers, and Toro garden hoses, are
using a __________ strategy.
Selected
b.
Answer:
multiproduct
branding
Answers: a.
retailer branding

b.
multiproduct
branding
c.
multibranding
d.
private branding
e.
mixed branding
Response Companies can choose from several different
Feedback
:
branding strategies, including multiproduct
branding, multibranding, private branding, and
mixed branding. See Figure 11-7 in the
textbook.

MC Qu. 289 Companies can choose from

several different ...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 11-03 Recognize the
importance of branding and alternative
branding strategies.
Level of Difficulty: 2 Medium
Topic: Branding Strategy
 Question 7
10 out of 10 points
Mars, Inc., sells Snickers, Milky Way, Twix, Skittles, Dove,
Starburst, M&Ms, and Three Musketeer candy. This
variety of brand names is typical of a __________ strategy.
Selected
b.
Answer:
multibranding
Answers: a.
 co-branding

b.
multibranding
c.
multiproduct
d.
mixed brand
e.
private
branding
Response Mars uses a multibranding strategy that gives
Feedback:
each of its products a distinct name.

MC Qu. 315 Mars, Inc., sells Snickers, Milky

Way, Twix,...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 11-03 Recognize the
importance of branding and alternative
branding strategies.
Level of Difficulty: 3 Hard
Topic: Branding Strategy
 Question 8
10 out of 10 points
When willingness to help customers and provide prompt
service is important, this represents which dimension of
service quality?
Selected
e.
Answer:
responsiveness
Answers: a.
reliability
b.
assurance
c.
tangibility
(tangibles)
d.
empathy

e.
responsiveness
 Response Responsiveness refers to willingness to help
Feedback:
customers and provide prompt service. See
Figure 12-6 in the textbook.

MC Qu. 139 When willingness to help

customers and provi...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 12-03 Explain how
consumers purchase and evaluate services.
Level of Difficulty: 2 Medium
Topic: Consumer Purchase Decision Process
 Question 9
10 out of 10 points
Any container in which a product is offered for sale and on
which information is communicated is referred to as
Selected
c.
Answer:
packaging.
Answers: a.
a point-of-purchase
display.
b.
merchandising.

c.
packaging.
d.
a label.
e.
a product bundle.
Response Key term definition—packaging.
Feedback:

MC Qu. 329 Any container in which a product

is offered ...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 11-04 Describe the role of
packaging, labeling, and warranties in the
marketing of a product.
Level of Difficulty: 1 Easy
Topic: Packaging
 Question 10
10 out of 10 points
Which of the following statements about services
is most accurate?
Selected
c.
Answer:
Exports of services is one of the few areas in
which the United States has a trade surplus.
Answers: a.
Whether tangible or intangible, the marketing of
services is exactly the same as the marketing of
products or ideas since they both satisfy
customer needs.
b.
Although a major contributor to GDP nationally,
services play only a minor role in GDP on a
global scale.

c.
Exports of services is one of the few areas in
which the United States has a trade surplus.
d.
Very few jobs in the United States are in the
services sector.
e.
There is much more in common with the
marketing of services and business products
than there is between the marketing of services
and consumer products.
Respons The marketing of services is different than the
e
Feedbac
marketing of goods. By 2022, more than 130
k: million people will be employed in the services
sector. Services represent a large export
business for the United States. More than 46
percent of the U.S. gross domestic product
(GDP) comes from services. Services also
represent a large export business—the $722
billion of service exports in 2014 is one of the
few areas in which the United States has a trade
surplus.

MC Qu. 10 Which of the following statements

about serv...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 12-01 Describe four unique
elements of services.
 Level of Difficulty: 2 Medium
Topic: Components and Classifications of
Products and Services
 Question 1
10 out of 10 points
According to the lecture, about how much does the service
sector contribute to the U.S. economy?
Selected
d.
Answer:
$5.5 trillion
Answers: a.
$116 million
b.
$550 million
c.
$2 billion

d.
$5.5 trillion
e.
A quadrillion
dollars
Response Services contribute over $5.5 Trillion and
Feedback:
116 million jobs to the U.S. economy.
 Question 2
10 out of 10 points
According to lecture, how much more does it cost to
attract a new customer than to keep an existing one?
Selected
b.
Answer:
5 times
more
Answers: a.
2 times
more

b.
5 times
more
c.
8 times
more
d.
10 times
 more
e.
15 times
more
Response It costs about five times as much to attract a
Feedback:
new customer as it costs to keep an old one.
 Question 3
10 out of 10 points
According to the lecture, about how many U.S. jobs are in
the services market?
Selected
c.
Answer:
116 million
Answers: a.
5.5 trillion
b.
75 billion

c.
116 million
d.
30 million
e.
A
quadrillion
Response The U.S. Bureau of Statistics indicates there
Feedback:
are about 116 million service jobs in the U.S.
 Question 4
10 out of 10 points
In class, we considered the case of a restaurant owner
who needed to have the windows cleaned. One approach
discussed was for the owner to offer the window cleaner
"gift certificates" to the restaurant which are equal to the
amount the cleaner would charge. So if the window
washing bill was $200, the restaurant owner would
provide a $200 gift certificate to the restaurant to pay the
bill. This is called:
Selected
d.
Answer:
Bartering
Answers: a.
Deferred billing
b.
 Collect on
delivery
c.
Setting a fee

d.
Bartering
e.
Fast food
delivery
Response Bartering is the practice of exchanging goods
Feedback
:
and services for other goods and services rather
than for money. In this example, the restaurant
owner is offering to barter a meal for the clean
windows.
 Question 5
0 out of 10 points
What do an online travel agency, a limousine service, and
a railroad have in common?
Selected
e.
Answer:
They all require skilled operators.
Answers: a.
They are all strictly tangible services.
b.
They are all people-based services.
c.
None of them has a problem with idle
production capacity.

d.
They are all equipment-based services.
e.
They all require skilled operators.
Response The online travel agency, limousine service, and
Feedback:
railroad all require a significant amount of
equipment to deliver the service. See Figure
12-4 in the textbook.

MC Qu. 81 What do an online travel agency, a

limousine...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
 Learning Objective: 12-02 Recognize how
services differ and how they can be classified.
Level of Difficulty: 3 Hard
Topic: Components and Classifications of
Products and Services
 Question 6
10 out of 10 points
Private branding refers to a branding strategy in which a
firm
Selected
d.
Answer:
produces products but sells them under the
brand name of a wholesaler or retailer.
Answers: a.
gives each product a distinct name when each
brand is intended for a different market
segment.
b.
uses different brand names for the same
product across multiple countries.
c.
uses one name for all its products in a product
class.

d.
produces products but sells them under the
brand name of a wholesaler or retailer.
e.
contractually, and for a fee, allows other firms
to use its brand name, requiring that the
product be made to its specifications.
Response Key term definition—private branding.
Feedback:

MC Qu. 323 Private branding refers to a

branding strate...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 11-03 Recognize the
importance of branding and alternative
branding strategies.
Level of Difficulty: 1 Easy
Topic: Branding Strategy
 Question 7
10 out of 10 points
 Services can be classified according to whether they are
delivered by: (1) people or equipment, (2) __________, or (3)
government agencies.
Selected
e.
Answer:
for-profit or nonprofit
organizations
Answers: a.
national or global
b.
performed by independent
contractors
c.
privately owned or publicly
owned
d.
owned by individuals or
corporations

e.
for-profit or nonprofit
organizations
Response Services can be classified according to whether
Feedback:
they are delivered by: (1) people or equipment,
(2) for-profit or nonprofit organizations, or (3)
government agencies.

MC Qu. 66 Services can be classified according

to whet...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 12-02 Recognize how
services differ and how they can be classified.
Level of Difficulty: 2 Medium
Topic: Components and Classifications of
Products and Services
 Question 8
10 out of 10 points
Place or distribution is a major factor in developing a
service marketing strategy because of the __________ of
services.
Selected
b.
Answer:
inseparabili
ty
 Answers: a.
inventory

b.
inseparabili
ty
c.
inconsisten
cy
d.
intangibilit
y
e.
information
Response Place or distribution is a major factor in
Feedback:
developing a service marketing strategy
because of the inseparability of services from
the producer.

MC Qu. 179 Place or distribution is a major

factor in d...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 12-05 Explain the role of
the seven Ps in the services marketing mix.
Level of Difficulty: 2 Medium
Topic: Services Marketing
 Question 9
0 out of 10 points
Which service listed below has the highest inventory
carrying cost?
Selected
b.
Answer:
hotel
Answers:
a.
railroad
b.
hotel
c.
auto repair
garage
d.
amusement park
 e.
insurance
company
Respons Figure 12-2 in the textbook shows a scale of
e
Feedbac
inventory carrying costs represented on the low-
k: cost end by real estate agencies, hair salons,
and insurance companies and on the high-cost
end by airlines and hospitals. Railroads have
very expensive equipment and moderate-to-high
salaried employees.

MC Qu. 57 Which service listed below has the

highest i...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 12-01 Describe four unique
elements of services.
Level of Difficulty: 3 Hard
Topic: Components and Classifications of
Products and Services
 Question 10
10 out of 10 points
If competitive market circumstances are such that there
are few sellers who are sensitive to each other's prices,
and the purpose of advertising is to inform but avoid price
competition, then __________ must exist in the industry.
Selected
d.
Answer:
an oligopoly
Answers: a.
a pure monopoly
b.
monopolistic
competition
c.
pure competition

d.
an oligopoly
e.
oligopolistic
competition
Response An oligopoly is a type of competition in which
Feedback:
there are few sellers who are sensitive to each
 other's prices. See Figure 13-3 in the textbook.

MC Qu. 133 If competitive market

circumstances are such...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 13-02 Recognize the
objectives a firm has in setting prices and the
constraints that restrict the range of prices a
firm can charge.
Level of Difficulty: 2 Medium
Topic: Pricing Strategy

In class, we noted that the demand for more and better services
affect virtually all industries in a variety of ways. From what we
heard in class, which of the following is NOT an example of how
the demand for services affect businesses.
Selected
d.
Answer:
Location--ATMs, branch outlets, branch warehouses,
JIT delivery
Answers: a.
Longer Business Hours
b.
Better trained sales and service people

c.
Lower prices with more product quality
d.
Location--ATMs, branch outlets, branch warehouses,
JIT delivery
e.
Improved customer service systems
Response The demand for services affects almost all industries.
Feedback:
Some examples include the demand for:
Location--ATMs, branch outlets, branch warehouses,
JIT delivery
Longer Business Hours
Better trained sales and service people
One-stop shopping
Improved customer service systems (personal, phone,
on-line)
More information available--before, during, and after
the sale
 SO, services ADD VALUE BEYOND the issues of price
and product quality.
 Question 2
10 out of 10 points
In class, we looked at some of the costs of providing
services. Which of the following do mangers need to
consider as they set the cost of their services?
Selected
e.
Answer:
These were ALL costs that need to be
considered
Answers: a.
Wages
b.
Physical facilities
c.
Technology
d.
Honoring warranties

e.
These were ALL costs that need to be
considered
Response These were ALL costs that need to be
Feedback:
considered
 Question 3
10 out of 10 points
In class, we considered the example of tuition at KSU. We
looked at the $85 College of Business Undergraduate
Program Fee. What aspect of "price" did this represent?
Selected
c.
Answer:
The $85 represents an "add on" to the
published tuition in the form of an "extra fee."
Answers: a.
It is the "list price" for these services.
b.
This represents a "discount" on the cost being
in the College of Business.

c.
The $85 represents an "add on" to the
 published tuition in the form of an "extra fee."
d.
The $85 is actually a form of "scholarship" that
reduces the real tuition paid.
e.
This IS the tuition.
Respons The Price in this case is the actual tuition paid.
e
Feedback
This is the published tuition, less any incentives
: or allowances (such as scholarships, other
financial aid, discounts offered for the number
of courses taken), plus any extra fees (such as
the fee charged by the College of Business).
 Question 4
10 out of 10 points
In class we consider the case of pizza pricing. If a small
pizza costs $8 and a large pizza is twice as big and it costs
$10, we would think that the consumer will:
Selected
b.
Answer:
See this as a "good value" and be happy with
the pricing.
Answers: a.
See this as a "rip off" and be pretty
dissatisfied.

b.
See this as a "good value" and be happy with
the pricing.
c.
Comparison shop for other fast food options.
d.
Order a Pepperoni Pizza with extra cheese.
e.
be unlikely to see any pricing advantage.
Response If you are getting twice as much pizza, for
Feedback:
LESS than twice the cost, we would imagine
that the consumer will see this as a good value.
 Question 5
10 out of 10 points
All of the following are true about the price element of
services except
 Selected
c.
Answer:
price is used in on-peak pricing to manage the
variations in supply for the service.
Answers: a.
price can be referred to in a variety of terms.
b.
price can affect consumer perceptions of the
service.

c.
price is used in on-peak pricing to manage the
variations in supply for the service.
d.
price can be used in capacity management.
e.
price can be used in services to imply a higher
quality.
Respons Many service businesses use off-peak pricing,
e
Feedbac
which consists of charging different prices
k: during different times of the day or during
different days of the week to reflect variations in
demand for the service. Alternative "price is
used in on-peak pricing to manage the variations
in supply for the service" is incorrect because
there is no such concept as "on-peak pricing" to
manage the "variations in supply," much less the
demand, for a service.

MC Qu. 171 All of the following are true about

the pric...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 12-05 Explain the role of the
seven Ps in the services marketing mix.
Level of Difficulty: 2 Medium
Topic: Services Marketing
 Question 6
10 out of 10 points
List the following competitive markets
from least competitive to most competitive.
Selected
e.
Answer:
pure monopoly, oligopoly, monopolistic
competition, and pure competition
 Answers: a.
monopolistic competition, pure monopoly, pure
competition, and oligopoly
b.
pure competition, monopolistic competition,
oligopoly, and pure monopoly
c.
pure competition, monopolistic competition,
pure monopoly, and oligopoly
d.
oligopoly, pure competition, monopolistic
competition, and pure monopoly

e.
pure monopoly, oligopoly, monopolistic
competition, and pure competition
Response From the most to the least competitive,
Feedback
:
economists delineate four types of competitive
markets: pure competition, monopolistic
competition, oligopoly, and pure monopoly. See
Figure 13-3 in the textbook.

MC Qu. 121 List the following competitive

markets from ...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 13-02 Recognize the
objectives a firm has in setting prices and the
constraints that restrict the range of prices a
firm can charge.
Level of Difficulty: 2 Medium
Topic: Pricing Strategy
 Question 7
10 out of 10 points
Southwest Airlines operates five flights daily between
Chicago and Phoenix during the winter. One flight leaves
Phoenix at 12:10 p.m. The plane, a Boeing 737, has a
capacity of 120 passengers. During the past month, the
flight has averaged 24 passengers, a load factor of only 20
percent. Once the plane takes off, the empty seats
generate no revenue for the airline for that flight. What
unique aspect of services does this situation describe?
 Selected
e.
Answer:
idle production
capacity
Answers: a.
incongruity
b.
intangibility
c.
inconsistency
d.
inseparability

e.
idle production
capacity
Response With services, inventory carrying costs are
Feedback:
related to idle production capacity, which is
when the service is available but there is no
demand (the empty seats in this example).

MC Qu. 47 Southwest Airlines operates five

flights dai...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 12-01 Describe four unique
elements of services.
Level of Difficulty: 3 Hard
Topic: Components and Classifications of
Products and Services
 Question 8
10 out of 10 points
All of the following comprise the seven Ps of services
marketing except
Selected
c.
Answer:
profitability.
Answers: a.
product.
b.
process.

c.
profitability.
 d.
people.
e.
physical
environment.
Respons An expanded marketing mix for services
e
Feedback
includes the four Ps (product, price, promotion,
: and place or distribution) as well as people,
physical environment, and process. These
comprise the seven Ps of services marketing.
Alternative "profitability" is a marketing
objective.

MC Qu. 162 All of the following comprise the

seven Ps o...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 12-05 Explain the role of the
seven Ps in the services marketing mix.
Level of Difficulty: 2 Medium
Topic: Services Marketing
 Question 9
10 out of 10 points
Factors that limit the range of prices a firm may set are
referred to as
Selected
b.
Answer:
pricing
constraints.
Answers: a.
pricing
restraints.

b.
pricing
constraints.
c.
demand factors.
d.
pricing barriers.
e.
pricing
restrictions.
 Response Key term definition—pricing constraints.
Feedback:

MC Qu. 96 Factors that limit the range of prices

a fir...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 13-02 Recognize the
objectives a firm has in setting prices and the
constraints that restrict the range of prices a
firm can charge.
Level of Difficulty: 1 Easy
Topic: Pricing Strategy
 Question 10
10 out of 10 points
The concept of internal marketing is based on the notion
that a service organization must focus on its __________
before successful programs can be directed at customers.
Selected
d.
Answer:
employees
Answers: a.
competitor
s
b.
prospects
c.
shareholde
rs

d.
employees
e.
suppliers
Response Key term definition—internal marketing.
Feedback:

MC Qu. 187 The concept of internal marketing

is based o...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 12-06 Discuss the
important roles of internal marketing and
customer experience management in service
organizations.
 Level of Difficulty: 1 Easy
Topic: Services Marketing

In class we viewed a segment from CNBC's "The Entrepreneurs,"
in which two male models develop a new brand of granola. They
selected the name "FEED" for their product. As they grew, they
decided they needed more sophisticated packaging, and so they
talked with a "branding and identity expert." Which of the
following was NOT a problem identified by the expert with the
existing package?
Selected
e.
Answer:
Actually ALL of the above were problems identified
with the existing package.
Answers: a.
It was hard to read
b.
It was too "busy"
c.
The image on the package was vague

d.
The type selected for the name made it practically
illegible
e.
Actually ALL of the above were problems identified
with the existing package.
Response The branding expert indicated that the existing
Feedback:
brand name WAS legible.
 Question 2
10 out of 10 points
In class we noted that a firm's "Service Image" is conveyed
by its "service products." In choosing the service
dimensions to create a competitive position, which service
dimensions should be emphasized?
Selected
c.
Answer:
The dimension which are most valued by the
customers.
Answers: a.
Those dimensions which are the cheapest to
provide.
b.
The dimensions which no other competitor
 offers.

c.
The dimension which are most valued by the
customers.
d.
The dimensions which will create the highest
status.
e.
The dimensions which provide us the least
additional effort.
Response Service Image is conveyed by the firm’s
Feedback:
“service products.” The dimensions used
should be those valued by the customers.
 Question 3
10 out of 10 points
As we discussed in class, services differ from products
(goods) in along a variety of dimensions. Which
characteristic of services means that marketers must be
careful in the selection and training of their service
personnel? The characteristic of:
Selected
c.
Answer:
Inconsistency
Answers: a.
Inseparability
b.
Perishability of
Inventory

c.
Inconsistency
d.
Intangibility
e.
Indecisive
Response Service delivery is INCONSISTENT because it
Feedback:
depends on the personnel delivering the
service.
This lack of standardization means
inconsistent delivery and quality depending on
the person performing.
Marketers can minimize this by employee
selection, training, and by setting service
 performance standards.
 Question 4
10 out of 10 points
In class we consider the case of pizza pricing. If a small
pizza costs $8 and a large pizza is twice as big and it costs
$10, we would think that the consumer will:
Selected
b.
Answer:
See this as a "good value" and be happy with
the pricing.
Answers: a.
See this as a "rip off" and be pretty
dissatisfied.

b.
See this as a "good value" and be happy with
the pricing.
c.
Comparison shop for other fast food options.
d.
Order a Pepperoni Pizza with extra cheese.
e.
be unlikely to see any pricing advantage.
Response If you are getting twice as much pizza, for
Feedback:
LESS than twice the cost, we would imagine
that the consumer will see this as a good value.
 Question 5
10 out of 10 points
The marketing director for __________ is most likely to
believe the following statement: "The purpose of
advertising is to increase demand for the product class."
Selected
d.
Answer:
a pure monopolist competitor
Answers: a.
an oligopolistic competitor
b.
a monopolistic competitor
c.
a pure competition competitor

d.
a pure monopolist competitor
 e.
a competitive oligopolistic
competitor
Response The extent of advertising for a pure monopoly
Feedback:
is to increase demand for the product class.
See Figure 13-3 in the textbook.

MC Qu. 140 The marketing director for

__________ is mos...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 13-02 Recognize the
objectives a firm has in setting prices and the
constraints that restrict the range of prices a
firm can charge.
Level of Difficulty: 2 Medium
Topic: Pricing Strategy
 Question 6
10 out of 10 points
Airline load factor refers to
Selected
c.
Answer:
the percentage of available seats flown one mile
occupied by a paying customer.
Answers: a.
the percentage of paying customer seats flown
one mile plus frequent flyer redemption seats
flown one mile.
b.
the percentage of empty seats on a plane
compared to its total capacity.

c.
the percentage of available seats flown one mile
occupied by a paying customer.
d.
the percentage of seats that are overbooked on
any given flight to prevent profit shortfalls for
"no shows."
e.
the total of all paid seats plus all luggage
overcharges and all purchased beverages,
meals, and other amenities or additional
services, per flight.
 Respons Airlines feature load factor as a capacity
e
Feedbac
management measure on their marketing
k: dashboards, along with two other measures;
namely the operating cost per available seat
flown one mile and the revenue generated by
each seat flown one mile called yield. Load
factor is the percentage of available seats flown
one mile occupied by a paying customer.

MC Qu. 205 Airline load factor refers to

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 12-06 Discuss the important
roles of internal marketing and customer
experience management in service
organizations.
Level of Difficulty: 2 Medium
Topic: Services Marketing
 Question 7
10 out of 10 points
Which service listed below has the lowest inventory
carrying cost?
Selected
e.
Answer:
insurance
company
Answers: a.
railroad
b.
hotel
c.
long-term care
facility
d.
amusement park

e.
insurance
company
Response Figure 12-2 in the textbook shows a scale of
Feedback
:
inventory carrying costs represented on the
low-cost end by real estate agencies, hair
salons, and insurance companies and on the
high-cost end by airlines and hospitals.
 MC Qu. 54 Which service listed below has the
lowest in...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 12-01 Describe four unique
elements of services.
Level of Difficulty: 3 Hard
Topic: Components and Classifications of
Products and Services
 Question 8
10 out of 10 points
Intangible activities or benefits that an organization
provides to satisfy consumers' needs in exchange for
money or something else of value are referred to as
Selected
a.
Answer:
services.
Answers:
a.
services.
b.
goods.
c.
products.
d.
marketing
mix.
e.
ideas.
Response Key term definition—services.
Feedback:

MC Qu. 03 Intangible activities or benefits

that an or...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 12-01 Describe four
unique elements of services.
Level of Difficulty: 1 Easy
Topic: Components and Classifications of
Products and Services
 Question 9
0 out of 10 points
 The LA Galaxy's primary target market or "core fans" is
Selected
c.
Answer:
all sports fans.
Answers: a.
18- to 34-year-old
women.
b.
Hispanics.
c.
all sports fans.

d.
18- to 34-year-old
men.
e.
Generation Z.
Respons While the hard-core fans (primary segment) tend
e
Feedbac
to be 18- to 34-year-old men, the team also
k: appeals to these other (secondary) segments:
kids and youth soccer teams, college students,
families, the Latino community, trendsetting
youth, and groups. See Video Case 12: LA
Galaxy: Where Sports Marketing Is a Kick!

MC Qu. 219 The LA Galaxy's primary target

market o
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 12-05 Explain the role of the
seven Ps in the services marketing mix.
Level of Difficulty: 1 Easy
Topic: Services Marketing
 Question 10
10 out of 10 points
A nonprofit organization may pay taxes if
Selected
d.
Answer:
revenue-generating holdings are not directly
related to the organization's core mission.
Answers: a.
excess revenues exceed 20 percent of the
budget.
b.
 the organization is not considered to be a
religious institution.
c.
revenue is received from overseas subsidiaries.

d.
revenue-generating holdings are not directly
related to the organization's core mission.
e.
money is spent on research and development,
then it is taxed at a significantly lower rate.
Response Based on the corporate structure of the
Feedback:
nonprofit organization, it may pay tax on
revenue-generating holdings not directly
related to its core mission.

MC Qu. 83 A nonprofit organization may pay

taxes if
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 12-02 Recognize how
services differ and how they can be classified.
Level of Difficulty: 2 Medium
Topic: Components and Classifications of
Products and Services


In Marketing in the News, we heard that Augmented reality (AR) is not big
from a return-on-investment standpoint, but it is useful for:
Selected
c.
Answer:
getting consumers engaged.
Answers: a.
a curated experience.
b.
high tech firms.

c.
getting consumers engaged.
d.
keeping costs low.
e.
virtually all firms.
 Response AR is not big from a return-on-investment standpoint for
Feedback:
clients, but it's useful for engagement.
 Question 2
10 out of 10 points
Based on lecture, which property of services can
consumers evaluate DURING (or after) the service
purchase?
Selected
c.
Answer:
Experience
Properties
Answers: a.
Credence
Properties
b.
Search Properties

c.
Experience
Properties
d.
Real Estate
Properties
e.
Props properties
Response Experience Properties are those service
Feedback:
attributes discernable only during or after the
service experience
 Question 3
10 out of 10 points
According to class, the "Core Service" offered by Charles
Schwab is:
Selected
c.
Answer:
the use of a brokerage account to buy and
sell stocks.
Answers: a.
investment advice.
b.
online banking.

c.
the use of a brokerage account to buy and
sell stocks.
 d.
foreign exchange services.
e.
targeted advertising.
Response The Core/Primary Services of an investment
Feedback:
services company like Charles Schwab is to
provide the use of a brokerage account to buy
and sell stocks.
 Question 4
10 out of 10 points
In Marketing in the News, we heard that Millennials are the largest
generation to come along. They are even bigger than the Baby
Boomers. How many Millennials did we hear there are in the U.S.?
Selected
d.
Answer:
93 million
Answers: a.
22 million
b.
56 million
c.
77 million

d.
93 million
e.
310 million
Response With 93 million Millennials in the U.S., Millennials are
Feedback:
the largest generation to come along. That’s even
bigger than the Baby Boomers at 77 million strong.
 Question 5
10 out of 10 points
Multibranding refers to a branding strategy in which a
firm
Selected
a.
Answer:
gives each product a distinct name when each
brand is intended for a different market
segment.
Answers:
a.
gives each product a distinct name when each
brand is intended for a different market
segment.
 b.
uses different brand names for the same
product across multiple countries.
c.
uses one name for all its products in a product
class.
d.
produces products but sells them under the
brand name of a wholesaler or retailer.
e.
contractually, and for a fee, allows other firms
to use its brand name, requiring that the
product be made to its specifications.
Response Key term definition—multibranding.
Feedback:

MC Qu. 311 Multibranding refers to a

branding strategy ...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 11-03 Recognize the
importance of branding and alternative
branding strategies.
Level of Difficulty: 1 Easy
Topic: Branding Strategy
 Question 6
10 out of 10 points
Most services have a limited capacity due to the __________
of the service from the service provider and the perishable
nature of the service.
Selected
e.
Answer:
inseparabili
ty
Answers: a.
inventory
b.
inconsisten
cy
c.
intangibilit
y
d.
information
 e.
inseparabili
ty
Response Most services have a limited capacity due to
Feedback:
the inseparability of the service from the
service provider and the perishable nature of
the service.

MC Qu. 200 Most services have a limited

capacity due to...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 12-06 Discuss the
important roles of internal marketing and
customer experience management in service
organizations.
Level of Difficulty: 2 Medium
Topic: Services Marketing
 Question 7
10 out of 10 points
Which of the following statements regarding pricing
objectives is most accurate?
Selected
b.
Answer:
Pricing objectives may change depending on
the financial position of the company.
Answers: a.
Pricing objectives should never change.

b.
Pricing objectives may change depending on
the financial position of the company.
c.
Pricing objectives may change depending upon
the relative market share of competitors.
d.
Pricing objectives are established exclusively
by the marketing department.
e.
Pricing objectives are extremely sensitive to
even the slightest change in the local economy.
Response Pricing objectives may change depending on
Feedback:
the financial position of the company as a
 whole, the success of its products, or the
segments in which it is doing business.

MC Qu. 71 Which of the following statements

regarding ...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 13-02 Recognize the
objectives a firm has in setting prices and the
constraints that restrict the range of prices a
firm can charge.
Level of Difficulty: 2 Medium
Topic: Pricing Strategy
 Question 8
10 out of 10 points
Susan O'Rourke hired an attorney to represent her in a
court case involving an auto accident. The attorney
charged O'Rourke a $2,000 retainer fee for his services.
Terry Thomas needed a haircut; the local stylist charged
him $12 for her services. Aaron Mathison mowed his
neighbor's lawn; in exchange, the neighbor rototilled
Mathison's garden. The attorney fees paid by O'Rourke,
the $12 charged by the hair stylist, and the exchange of
lawn mowing for garden tilling are all examples of
Selected
d.
Answer:
price.
Answers: a.
premiums.
b.
barter.
c.
the profit
motive.

d.
price.
e.
outlays.
Response In marketing, price is the money, products, or
Feedback:
services exchanged for the ownership or use of
a product or service.

MC Qu. 12 Susan O'Rourke hired an attorney t

 AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 13-01 Identify the
elements that make up a price.
Level of Difficulty: 3 Hard
Topic: Setting Prices
 Question 9
10 out of 10 points
If a McDonald's menu board advertises Mini Meals under
$3, McDonald's is most likely using which type of pricing
strategy?
Selected
b.
Answer:
value-pricing
Answers: a.
predatory
pricing

b.
value-pricing
c.
loss-leader
pricing
d.
odd-even
pricing
e.
barter
Respons Creative marketers engage in value-pricing, the
e
Feedbac
practice of simultaneously increasing product
k: and service benefits while maintaining or
decreasing price. For $3, McDonald's offers
consumers three Mini Meals options that include
a sandwich, small drink, and small fries. Here, a
reduced price versus buying the items
separately increases the value proposition.

MC Qu. 39 If a McDonald's menu board

advertises
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 13-01 Identify the elements
that make up a price.
 Level of Difficulty: 2 Medium
Topic: Setting Prices
 Question 10
10 out of 10 points
The first step a nonprofit organization should take to
engage people with social media is to
Selected
b.
Answer:
understand what motivates people to take up
causes.
Answers: a.
set specific measurable goals.

b.
understand what motivates people to take up
causes.
c.
create a simple and realistic operating
budget.
d.
create a well-defined organizational
hierarchy.
e.
develop a unique selling proposition.
Response Nonprofit organizations should follow many of
Feedback:
the same principles businesses use. First, they
should understand what motivates people to
take up causes.

MC Qu. 90 The first step a nonprofit

organization shou...
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 12-02 Recognize how
services differ and how they can be classified.
Level of Difficulty: 2 Medium
Topic: Components and Classifications of
Products and Services