Question 14 Question Reindeer Games a new Christmasthemed v

Question 14.

Question :

Reindeer Games, a new Christmas-themed video, pizza, and ice cream restaurant targeting families with young children, is located in an area that is also home to Chucky Cheese and a bounce activity center. As both of the latter are well established, the owner of Reindeer Games decided to launch her business with pricing on games and pizza parties about 20% lower than her competitors. What pricing strategy is Reindeer Games using for their launch?

Student Answer:

Value-added

Everyday low prices

Penetration

Skimming

Cost-plus

Comments:

Question 15.

Question :

Greater consumer control means that companies can no longer rely on ____________.

Student Answer:

promoting brand-consumer interaction

marketing by intrusion

creating market offerings and messages that involve consumers

developing marketing concepts with an outside-in perspective

marketing by attraction

Comments:

Question 16.

Question :

The final step in the marketing process is ____________.

Student Answer:

capturing value from customers

creating customer delight

creating customer lifetime value

understanding the marketplace

designing a customer-driven marketing strategy

Comments:

Question 17.

Question :

Cats and Rats is a tablet game that allows players to be one or the other and try to outsmart their opponents. In order to win, the players need an occasional energy boost in the form of a nap, which is free, or the player can pay for Cat Treats or Cheese Nibbles for their cat or rat. What form of pricing is this?

Student Answer:

Penetration

Value-added

Freemium

Skimming

Segmented

Comments:

Question 19.

Question :

Which of the following terms refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs?

Student Answer:

Vendor lock-in

Social loafing

Value proposition

Marketing myopia

Conspicuous consumption

Comments:

Question 20.

Question :

A university enrolled 200 graduate students in the Fall of 2011. However, the enrollment rate was only slightly affected following a 12 percent hike in tuition the following Fall. This illustrates a(n) ____________ demand.

Student Answer:

derived

negative

highly elastic

composite

inelastic

Question 22.

Question :

Pennell Company gathered the following information for the year ended December 31, 2009. During the year, Pennell produced and sold 75,000 units of product at a sale price of $6.50 per unit. What is the contribution margin?

Student Answer:

$287,500

$122,500

$209,500

$246,500

Comments:

Question 23.

Question :

Which of the following will result in an unfavorable direct materials efficiency variance?

Student Answer:

The actual quantity of direct materials used per unit was less than the standard quantity of direct materials allowed per unit.

The actual cost per unit of direct materials exceeded the standard cost of direct materials.

The actual quantity of direct materials used per unit exceeded the standard quantity of direct materials allowed per unit.

The actual cost per unit of direct materials was less than the standard cost of direct materials.

Comments:

Question 24.

Question :

Under which of the following categories would Buildings appear?

Student Answer:

Current liabilities

Long-term liabilities

Long-term assets

Current assets

Question 14.

Question :

	Student Answer:	Value-added
		Everyday low prices
		Penetration
		Skimming
		Cost-plus

Comments:

14.

Penetration pricing strategy works on lowering the price of the product to attract the customers toward itself. This strategy reduces the price of the product at the start and then it gradually increases the prices.

Thus, the correct option is Penetration.

15.

Greater consumer control means that companies must rely more on marketing by attraction rather than marketing by instruction.

Thus, the correct option is marketing by attraction.

16.

The final step in the marketing process is capturing value from customer.

Thus, the correct option is capturing value from the customers.

17.

Freemium is a pricing strategy in which company does not charge for the application like media, game kind of application. The company charge only for the proprietary features, functionality, or virtual goods.

Thus, the correct option is Freemium.

19.

Vendor lock-in refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs.

Thus, the correct option is Vendor lock-in.

20.

Correct option is inelastic.

22.

Correct option is $287,500.

23.

Correct option is: The quantity of direct materials used per unit was less than the standard quantity of direct materials allowed per unit.

24.

Under current liabilities the buildings appear.