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QUESTION NO: 1
Hermit, a fashion apparels retailer, recently slashed prices on its premium fashion label, Lau, by 40%. This resulted in a sharp rise in sales of Lau by 30%. This also directly impacted the sales of its lower-priced brand, Infinity, which saw sales reduced by 15%. What is the cross-price elasticity of demand between Lau and Infinity?
A. 0.5
B. 0.37
C. 1.33
D. 2
E. 2.66
Answer: B
QUESTION NO: 2
Which of the following is true of personal ethics?
A. People stop growing in their understanding of ethical behavior once they become adults.
B. A person's genes, cultural background, and upbringing have no influence on ethical understanding.
C. Different people view complex situations differently based on their own ethical understandings.
D. People act unethically on their own accord without any external influences.
E. Business and marketing ethics have an overbearing influence on personal ethics.
Answer: C
QUESTION NO: 3
Saleye Pharmaceuticals develops cheaper alternatives to proprietary drugs. Its mission statement states that it wants to create affordable medicine for everyone and create a healthier world. Saleye releases a new and improved version of its pain-relieving drug, Fento. Within a week,
Saleye receives many complaints stating that the drug is inducing hallucinations and in some cases triggering certain anxiety disorders. Saleye was caught off-guard as its animal and human trials did not reveal any side effects. Saleye deliberated over the decision to recall the drug for over a week and by the time it eventually did, it had lost millions in stocks. Where did Saleye fail?
A. It did not have an ethical mission statement.
B. It did not have control measures in place.
C. It did not consider the target market before creating its drug.
D. It prioritized profits over effective drugs.
E. It did not conduct large-scale human trials.
Answer: B
QUESTION NO: 4
When conducting a SWOT analysis, opportunities and threats are likely to arise from:
A. assets and financial performance.
B. key personnel.
C. changes in consumer preferences.
D. the company's core competencies.
E. the location of the company.
Answer: C
QUESTION NO: 5
Newtown-based athletic shoe manufacturer Alpha Shoes sells different types of shoes for kids, and focuses its marketing activities in the Newtown region. To increase sales of its products, Alpha begins an intensive promotional campaign in Newtown's schools. Which of the following market strategies is the company using?
A. diversification
B. market penetration
C. horizontal integration
D. market development
E. vertical integration
Answer: B
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Updated: May 27, 2022