Week 7 Quiz

An illustrative neighborhood bike shop has a slow month. It asks its riders what they need, learns that commuters want repairs done before work, and adds early-morning repair hours before it spends anything on ads. Which idea does that change show?

Select one.

• Advertising, because the shop wants more riders to hear about its new early-morning hours
• Price skimming, because the early hours are a premium service sold to the most eager buyers
• The marketing concept: deliver what customers want better than rivals, at a profit
• Mass production, because the shop now repairs more bikes the same way every morning

An illustrative community gym groups some of its buyers as members who come at the same early hour every day, before work. Which segmentation base defines that group?

Select one.

• Behavioral, because the group is defined by how and when its members use the gym
• Demographic, because the members are working adults, a measurable trait like age or income
• Geographic, because the members all come to the same gym
• Psychographic, because the members value an early start

An illustrative independent bookstore groups some of its buyers as readers who care about supporting local authors. Which segmentation base defines that group?

Select one.

• Geographic, because the local authors the readers care about live and work in the same area
• Demographic, because the readers share a measurable trait such as age or income
• Behavioral, because the readers buy books from the store
• Psychographic, because the group shares a value

The illustrative coffee cart parks outside an office building two blocks away on weekdays and moves to the farmers' market on weekends. Which of the four Ps is that decision?

Select one.

• Promotion, because moving the cart tells more people about it
• Place, because it decides where and when the drink reaches the buyer
• Product, because the drinks are made to order
• Price, because the cart charges 5 dollars a drink

An illustrative ride-share driver crosses town with an empty back seat, while a market stall's unsold bag of coffee beans waits on a shelf until the next day. Why is the empty seat lost in a way the bag of beans is not?

Select one.

• Because the ride costs the driver more to provide than the bag of beans costs the stall
• Because the beans are a service that can be stored on a shelf, while the ride is a good
• Because a ride is a service, produced and used at once, so it cannot be stored
• Because the driver did not promote the trip

An illustrative phone charging case came out a year ago. Its sales are now climbing fast, and rival cases are starting to appear. Which stage of the product life cycle is it in?

Select one.

• Growth
• Introduction
• Maturity
• Decline

The illustrative coffee cart sells drinks at 5 dollars each. Each drink has a variable cost of 2 dollars, and the cart's fixed costs are 36,000 dollars a year. What is the cart's break-even point?

Select one.

• 7,200 drinks a year, found as 36,000 ÷ 5
• 48 drinks a year, the break-even per operating day
• 60,000 drinks a year, the break-even revenue in dollars
• 12,000 drinks a year, found as 36,000 ÷ (5 − 2)

The illustrative coffee cart sells a drink for 5 dollars, and the drink costs 2 dollars. Which statement gives its markup on cost and its margin on price?

Select one.

• Markup on cost 60 percent; margin on price 60 percent
• Markup on cost 150 percent; margin on price 60 percent
• Markup on cost 60 percent; margin on price 150 percent
• Markup on cost 150 percent; margin on price 150 percent

The illustrative coffee cart considers a 4-dollar penetration price. Its variable cost stays at 2 dollars a drink and its fixed costs stay at 36,000 dollars a year. What is its break-even point at that price?

Select one.

• 9,000 drinks a year, found as 36,000 ÷ 4
• 12,000 drinks a year, because the price does not change the break-even
• 18,000 drinks a year, found as 36,000 ÷ (4 − 2)
• 7,200 drinks a year, found as 36,000 ÷ 5

True or false: the cup, lid, beans, and milk in each of the illustrative coffee cart's drinks are fixed costs.

True or false.

• True
• False