12- Penetration pricing is defined as________. *

a) Setting a low price to encourage consumers to try a new product and build product loyalty

b) Setting a high price to create a consumer perception that the product is better

c) Setting average prices

d) Setting a high price to recover development costs

13- Which of the following is not considered a way a business can use to increase productivity of employees? *

a) Improving the working environment

b) Rewarding employees

c) Punishing employees

d) Training employees

14- Pre-marketing strategy research involves a SWOT analysis, which stands for_______. *

a) Strengths, Weaknesses, Openness, and Teams

b) Strengths, Weaknesses, Openness, and Trust

c) Strengths, Weaknesses, Opportunities, and Threats

d) Strengths, Weaknesses, Opportunities, and Teams

15- ______ costs are costs that can be attributed directly to a specific business activity, function, or product, while as _______ costs are day-to-day running costs of a business like insurance, loan repayments, and office rent. *

a) Low; high

b) Production; management

c) Functional; actual

d) Direct; indirect

16- ________ of demand is the responsiveness of consumer demand to a small change in price. *

a) Increase

b) Price elasticity

c) Decrease

d) Price-ending