MARKETING QUESTION. \\13. The key idea(s) for interpreting the prices is/are : a
ID: 381440 • Letter: M
Question
MARKETING QUESTION.
. The key idea(s) for interpreting the prices is/are : a. price endings b. price-quality inferences c. price references d. all of the above . For goods with elastic demand, lowering the price will the total revenue. a. b. c. L] decrease increase not affect 15. With accumulated production experience, the cost of production falls as a. the workers leam short-cuts b. the materials flow more smoothly c. costs of procurement drops d all of the above 16. In , high priced competitors tend to survive the price cutting strategies. low-quality trap a. b. fragile-market-share trap shallow-pockets trap c. d. price-war trapExplanation / Answer
(13) The answer is option d. All of the above
Explanation: The key ideas for interpreting the prices are price endings, price-quality inferences, and price references. Hence option d. is correct.
(14) The answer is option b. Increase
Explanation: For goods with elastic demand, by lowering the price, naturally the demand will increase. When there is an increase in demand, there will be more sales volume which in turn increases the total revenue. Elastic demand is when the price or other factors have a big effect on the quantity consumers want to buy. Hence option b. is correct.
(15) The answer is option d. All of the above
Explanation: with accumulated production experience, there is a sharp learning curve and once the threshold is reached, workers learn shortcuts of doing more output with less input, productivity will be high, the flow of materials will be smooth than during training days and the cost of procurement, in turn, drops due to better quality and productivity which results in less re-work. Hence option d. is correct.
(16) The answer is option d. Price-war trap
Explanation: In the price-war trap, high priced competitors tend to survive the price-cutting strategies. Telecom sector is the best example of this scenario. Hence option d. is correct.
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