Carmen Sanchez is a sales representative for Sherwin Williams and her territory includes ...

Carmen Sanchez is a sales representative for Sherwin Williams and her territory includes approximately 120-mile radius of her home retail store. Her customers are painting contractors and facility managers of office complexes, apartment buildings, hospitals, and other businesses that might have commercial painting needs. Carmen uses her company vehicle and spends about five hours each day in her car visiting her customers and prospecting for new business. Since her territory is so large, Carmen puts about 200 miles on her car each day, which consumes a lot of gasoline. She tries to be economical when choosing gas stations, but it doesn't really matter how much the gas costs, she pays the price. In this case, demand for gasoline is _________.
 A) inelastic
  B) elastic
  C) unitary
  D) variable
  E) fixed

Question 2

LaTonya Horton works for the Spurs organization and is responsible for managing ticket sales. She knows that ticket price and season ticket packages are related to consumers' interest in purchasing tickets and she tries to price individual tickets and packages at the level where ticket sales and profitability are maximized for the Spurs home games. LaTonya typically tests the _______ of demand by creating special events or special sales where she adjusts the price of tickets so she can determine the best price that maximizes profitability for the organization.
 A) price elasticity
  B) quantity
  C) feasibility
  D) sensitivity
  E) fluctuation

Question 3

Labeling and packaging are closely interrelated.
 
 Indicate whether the statement is true or false

Question 4

Kristi Lee Photography specializes in portraits, engagement, and wedding photography and has been a loyal Canon user for years. Kristi only shoots with Canon and owns the popular 5D Mark IV camera body and a variety of different lenses. Kristi believes that Canon is superior to Nikon due to Canon's USM, the ultrasonic motor that controls the autofocus system. Kristi believes she gets superior performance from the Canon system, and the USM is a key feature that Kristi appreciates. What type of practice is Canon using in its marketing of its lenses that relates to Kristi's preference for Canon products?
 A) Nonprice competition
  B) Price competition
  C) Feature superiority
  D) Value-conscious pricing
  E) Discount superiority

Question 5

Labels facilitate product identification.
 
 Indicate whether the statement is true or false

Question 6

The Loft is an upscale lounge that caters to young professionals who enjoy drinks after work in a casual and comfortable setting. The Loft has a specialty cocktail menu with items that its owner and head bartender, Stefan Young, created. All cocktails on the specialty menu are 15 each and include a variety of alcohol or liquors and are hand-crafted with ingredients such as egg whites, orange blossom water, lemon juice, lime juice, and simple syrup. Stefan has priced his cocktails so that he earns a 70 profit margin on each sale. Thus, the total costs to prepare each specialty cocktail are 30 of the retail price. Last month, Stefan sold 1,250 specialty cocktails. How much profit did Stefan's Loft business earn on the sale of specialty cocktails?
 A) 13,125
  B) 5,625
  C) 6,500
  D) 11,500
  E) 10,725

Question 7

To try to be creative in developing a label is not worth the effort; most people prefer products to be labeled only with the brand name and relevant consumer information.
 
 Indicate whether the statement is true or false

Question 8

Multiple packaging interferes with handling and storage of products.
 
 Indicate whether the statement is true or false

Question 9

James McGee is a sales representative for Canon Business Solutions and his territory includes St. Louis and the surrounding suburbs. James has a variety of printers, copiers, and document solutions that he provides to companies ranging from educational institutions, government offices, and small to medium-sized businesses. One of his accounts in the St. Louis area is Cintas, which offers a wide range of products to businesses. James was working with the St. Louis division manager, Stephanie Miller, to gain her approval to purchase a networked printer and copier for their 50-person office. The cost of the printer/copier including installation would be 5,490, but Stephanie told James that they could only spend 5,000, and in order to get the order, James would have to provide a 10 discount. James started thinking about how to add value to the proposal and asked Stephanie if Cintas would consider some type of a trade. After a friendly discussion as to how Cintas could provide an exchange of product to Canon Business Solutions, they agreed to a deal of 5,000 plus Cintas would deliver and maintain welcome mats or rugs in Canon's St. Louis office and provide disinfectants and a scent machine for the bathrooms. James and Stephanie successfully utilized _____ to facilitate the exchange.
 A) bartering
  B) money
  C) credit
  D) negotiation
  E) trade

Question 10

The crush-proof cylinder package for Pringle's potato chips is an example of innovative packaging.
 
 Indicate whether the statement is true or false