A Marketing Manager Needs Information About All Competitors' Prices in Order

question 26

Multiple Choice

A marketing manager needs information about all competitors' prices in order to make a pricing decision. The internal database she consults contains prices that were collected by mystery shoppers over a year ago. Her database has one of the major disadvantages of secondary data, namely, _____.

• A) age of the data
• B) quality
• C) relevance
• D) completeness
• E) units of measure that do not match

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Definitions:

Unit Variable Costs

The costs associated with producing one unit of a product or service, which vary directly with the volume of production.

Fixed Costs

Fixed charges that are unaffected by the volume of output or the quantity sold, including rental fees and payrolls.

Production Data

Information related to the amount, type, and quality of goods or services produced.

Contribution Margin

A financial metric that represents the difference between the sales revenue of a product and the variable costs associated with producing that product.