A Local Theater Group That Has Adopted the Marketing Concept

question 41

Multiple Choice

A local theater group that has adopted the marketing concept would be MOST likely to:

• A) Promote the sale of subscriptions so that patrons can buy tickets at a reduced price for several plays at one time.
• B) Use publicity to announce upcoming plays.
• C) Do a survey to find out what new shows patrons would like to see.
• D) Sell tickets via the Internet.

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Definitions:

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance premiums.

Competitive Pricing

Strategy that tries to reduce the emphasis on price competition by matching other companies’ prices and concentrating their own marketing efforts on the product, distribution, and promotional elements of the marketing mix.

Skimming Pricing

A pricing strategy that involves setting high prices initially and then gradually lowering them over time.

Penetration Pricing

A pricing strategy where a product is introduced to the market at a very low price to attract customers rapidly.