Research has shown that products perceived to be of high quality tend to benefit less from price promotions than products perceived to be of lower quality.
a. True
b. False
ANSWER: False
Marketing Chapter 20
- The greater the number of different uses for a product, the more ___ demand tends to be.
- Which of the following would imply elastic demand?
- All of the following factors directly affect the elasticity of demand EXCEPT:
- Demand for which of the following products or services is most likely inelastic?
- When Nesco brand food hydrators sold for $59.99, Nesco sold 90 dehydrators. When the company dropped the price of its dehydrators to $44.95, it sold 145 dehydrators. Demand for the food dehydrators appears to be:
- When the NES Group lowered the price of its professional-grade meat slicers from $2,300 to $1,125, demand doubled from four units sold per month to eight units per month. However, total revenue dropped. This is an example of:
- If price goes up or down and revenue stays the same:
- When price decreases and total revenue falls, demand is:
- ___ occurs when an increase in sales exactly offsets a decrease in price so that total revenue remains exactly the same.
- If price ___ and revenue ___ , demand is elastic.
- What happens when demand is elastic?
- While the sales of the Apple iPhone have been great from the beginning, when Apple released its iPhone 4S and cut the price of the iPhone 4 from $399 to $199, sales exploded with one million iPhone 4 models sold the first weekend. Demand for the iPhone appears to be:
- When consumers are sensitive to price changes, ___ occurs.
- Consumers' responsiveness or sensitivity to changes in price is known as:
- Bottles of Pure Hawaiian Air contain air that smells like the floral bouquet that greets tourists as they get off the plane in Hawaii. When a tourist shop began selling Pure Hawaiian Air, it charged $5 per bottle and could not keep up with the demand. It has since raised the price to $7. Now the shop is still selling all the bottles of Pure Hawaiian Air it carries, but the owner is not forced to reorder on a daily basis. The $7 price is probably a(n):
- At a price of $6,000, only 191 of the Moulton 60 model bicycle are being made. If Moulton sells each one of the bicycles at that price, then a state of ___ has been achieved.
- When the price of a product is set at a level where demand and supply are the same, price ___ has been achieved.
- ___ is the quantity of a product that will be offered to the market at various prices for a specified period.
- The ___ is the quantity of a product that will be sold in the market at various prices for a specified period, and ___ is the quantity of a product that will be offered to the market by suppliers at various prices for a specified period.
- Peggy's Twist Shack sells softserve ice cream. Peggy graphed the demand per week for vanilla ice cream cones. The graph indicates a demand schedule that slopes downward and to the right. This graph indicates that the quantity of vanilla ice cream cones demanded increases as:
- Most demand curves slope:
- The price of the good or service is a key decision for a marketer because it most significantly and directly affects the product's:
- The quantity of a product that will be sold in the market at various prices for a specified period is called:
- Although many factors can influence price, the primary determinants are:
- Which of the following statements describes an advantage of status quo pricing?