1.The total fixed costs are $10,000, and the average variable cost per unit is $3. For a production volume of 10,000 units, the average cost per unit is

Multiple Choice

• $3.00.

• $1.00.

• $4.00.

• $3.30.

• $10.00.

2. Heritage Brick's marketing manager is setting her pricing policies to "increase market share to 8 percent." Her pricing objective seems to be

Multiple Choice

• status quooriented.

• sales-oriented.

• profit-oriented.

• target returnoriented.

• nonprice competition.

3. Unfair trade practice legislation

Multiple Choice

• requires different types of retailers to charge different retail prices.

• makes price fixing illegal.

• has eliminated price competition on manufacturers' brands.

• prohibits intermediaries from taking excessive markups.

• puts a lower limit on prices, especially at the wholesale and retail levels.

4. When a firm depends on customer advocacy for the promotion of its products, it faces which challenge?

Multiple Choice

• Customer advocacy always creates a weaker influence on buying decisions than advertising.

• It is difficult to control the promotional messages created by customers.

• Customer advocacy has declining effectiveness when compared with other means of publicity.

• Customers are not considered a trusted source of information by other customers.

• Customer advocacy is considered less effective for positive product reviews than negative reviews.

5. What is the key disadvantage of Google+?

Multiple Choice

• less engaged user base

• difficulty with navigation

• slow growth rate

• more time consumption

• cluttered environment with unnecessary content