Question 1

WalMart utilizes a pricing strategy of maintaining continuous low prices rather than relying on sales.This strategy is an example of ____________.

Accepted Answer

A)  skimming pricing 
B)  psychological pricing 
C)  everyday low pricing 
D)  penetration pricing 
A)  skimming pricing 
B)  psychological pricing 
C)  everyday low pricing 
D)  penetration pricing

Question 2

Profitability objectives are perhaps the most common objectives included in the strategic plans of most firms.

Accepted Answer

A) True 
 B)False

Question 3

Madison owns an upscale accessory boutique and drastically reduced some earrings to make room for new inventory.When the earrings didn't sell in the "discount basket," she put them back on the shelf at regular price and they sold within a month.What is her customers' perception of price?

Accepted Answer

A)  Value-quality 
B)  Price-quality 
C)  Price-prestige 
D)  Prestige-quality 
A)  Value-quality 
B)  Price-quality 
C)  Price-prestige 
D)  Prestige-quality

Question 4

Assume a product costs $5 each.The variable cost per unit is currently $4,and fixed costs are $25,000.If the company can alter its production method such that variable costs fall to $3.50 and fixed costs rise to $30,000,what will happen to the breakeven point?

Accepted Answer

A)  It will fall. 
B)  It will rise. 
C)  It will remain the same. 
D)  It will rise and fall later. 
A)  It will fall. 
B)  It will rise. 
C)  It will remain the same. 
D)  It will rise and fall later.

Question 5

Businesses often conduct a(n)_____ to determine the minimum sales volume a product must generate at a certain price level to cover all costs.

Accepted Answer

A) breakeven analysis 
B) promotional mix 
C) volume objectives 
D) institutional advertising 
E) discount pricing
F)creative selling
G)point-of-purchase advertising
H)skimming pricing
I)pushing strategy
J)odd pricing
K)integrated marketing communications
L)cooperative advertising
M)penetration pricing 
A) breakeven analysis 
B) promotional mix 
C) volume objectives 
D) institutional advertising 
E) discount pricing
F)creative selling
G)point-of-purchase advertising
H)skimming pricing
I)pushing strategy
J)odd pricing
K)integrated marketing communications
L)cooperative advertising
M)penetration pricing

Question 6

Creative selling involves a persuasive type of promotional presentation.

Accepted Answer

A) True 
 B)False

Question 7

The process of finalizing a sale is the ________.

Accepted Answer

A)  demonstration 
B)  closing 
C)  approach 
D)  presentation 
A)  demonstration 
B)  closing 
C)  approach 
D)  presentation

Question 8

Dell Computer provides inner city schools with free computers and wireless Internet access.This is an example of ________.

Accepted Answer

A)  sales promotion 
B)  public relations 
C)  personal selling 
D)  creative selling 
A)  sales promotion 
B)  public relations 
C)  personal selling 
D)  creative selling

Question 9

Businesses often spend ________ as much on personal selling as on advertising.

Accepted Answer

A)  almost 
B)  twice 
C)  over three times 
D)  between five and ten times 
A)  almost 
B)  twice 
C)  over three times 
D)  between five and ten times

Question 10

__________ involves a one-on-one presentation to a prospective buyer.

Accepted Answer

A)  Personal selling 
B)  Creative selling 
C)  Sales promotion 
D)  Public relations 
A)  Personal selling 
B)  Creative selling 
C)  Sales promotion 
D)  Public relations

Question 11

Pricing method that sets an intentionally high price relative to the prices of competing products.

Accepted Answer

A) breakeven analysis 
B) promotional mix 
C) volume objectives 
D) institutional advertising 
E) discount pricing
F)creative selling
G)point-of-purchase advertising
H)skimming pricing
I)pushing strategy
J)odd pricing
K)integrated marketing communications
L)cooperative advertising
M)penetration pricing 
A) breakeven analysis 
B) promotional mix 
C) volume objectives 
D) institutional advertising 
E) discount pricing
F)creative selling
G)point-of-purchase advertising
H)skimming pricing
I)pushing strategy
J)odd pricing
K)integrated marketing communications
L)cooperative advertising
M)penetration pricing

Question 12

A major portion of advertising is designed to ________.

Accepted Answer

A)  accentuate product value 
B)  differentiate the product 
C)  stimulate demand 
D)  provide information 
A)  accentuate product value 
B)  differentiate the product 
C)  stimulate demand 
D)  provide information

Question 13

A sales representative who calls people at home is practicing inbound telemarketing.

Accepted Answer

A) True 
 B)False

Question 14

A disadvantage of using ________ as an advertising medium is their short life span.

Accepted Answer

A)  outdoor ads 
B)  Internet ads 
C)  magazines 
D)  newspapers 
A)  outdoor ads 
B)  Internet ads 
C)  magazines 
D)  newspapers

Question 15

Trade promotion is ________.

Accepted Answer

A)  used to promote goods or services to marketing intermediaries 
B)  often used to promote goods or services to ultimate consumers 
C)  primarily used to build goodwill 
D)  located at the manufacturers' facilities 
A)  used to promote goods or services to marketing intermediaries 
B)  often used to promote goods or services to ultimate consumers 
C)  primarily used to build goodwill 
D)  located at the manufacturers' facilities

Question 16

In breakeven analysis,the costs that change with the level of production are considered ________ costs.

Accepted Answer

A)  variable 
B)  recoverable 
C)  labour 
D)  fixed 
A)  variable 
B)  recoverable 
C)  labour 
D)  fixed

Question 17

McDonalds including a toy in each Happy Meal purchase is an example of a premium.

Accepted Answer

A) True 
 B)False

Question 18

If a product sells for $20 and the variable costs are $14,then the per-unit contribution to fixed costs is $6.

Accepted Answer

A) True 
 B)False

Question 19

_____ consists of displays or demonstrations that promote products when and where consumers buy them.

Accepted Answer

A) breakeven analysis 
B) promotional mix 
C) volume objectives 
D) institutional advertising 
E) discount pricing
F)creative selling
G)point-of-purchase advertising
H)skimming pricing
I)pushing strategy
J)odd pricing
K)integrated marketing communications
L)cooperative advertising
M)penetration pricing 
A) breakeven analysis 
B) promotional mix 
C) volume objectives 
D) institutional advertising 
E) discount pricing
F)creative selling
G)point-of-purchase advertising
H)skimming pricing
I)pushing strategy
J)odd pricing
K)integrated marketing communications
L)cooperative advertising
M)penetration pricing

Question 20

Odd pricing is used because retailers believe that consumers favour prices such as $3.99 or $249,999.

Accepted Answer

A) True 
 B)False

WalMart utilizes a pricing strategy of maintaining continuous low prices rather than relying on sales.This strategy is an example of ____________.

Profitability objectives are perhaps the most common objectives included in the strategic plans of most firms.

Madison owns an upscale accessory boutique and drastically reduced some earrings to make room for new inventory.When the earrings didn't sell in the "discount basket," she put them back on the shelf at regular price and they sold within a month.What is her customers' perception of price?

Assume a product costs $5 each.The variable cost per unit is currently $4,and fixed costs are $25,000.If the company can alter its production method such that variable costs fall to $3.50 and fixed costs rise to $30,000,what will happen to the breakeven point?

Businesses often conduct a(n)_____ to determine the minimum sales volume a product must generate at a certain price level to cover all costs.

Creative selling involves a persuasive type of promotional presentation.

The process of finalizing a sale is the ________.

Dell Computer provides inner city schools with free computers and wireless Internet access.This is an example of ________.

Businesses often spend ________ as much on personal selling as on advertising.

__________ involves a one-on-one presentation to a prospective buyer.

Pricing method that sets an intentionally high price relative to the prices of competing products.

A major portion of advertising is designed to ________.

A sales representative who calls people at home is practicing inbound telemarketing.

A disadvantage of using ________ as an advertising medium is their short life span.

Trade promotion is ________.

In breakeven analysis,the costs that change with the level of production are considered ________ costs.

McDonalds including a toy in each Happy Meal purchase is an example of a premium.

If a product sells for $20 and the variable costs are $14,then the per-unit contribution to fixed costs is $6.

_____ consists of displays or demonstrations that promote products when and where consumers buy them.

Odd pricing is used because retailers believe that consumers favour prices such as $3.99 or $249,999.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: The Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labour Relations

Top Performance through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Financial Management

Filters

Exam 13: Promotion and Pricing Strategies

WalMart utilizes a pricing strategy of maintaining continuous low prices rather than relying on sales.This strategy is an example of ____________.

Profitability objectives are perhaps the most common objectives included in the strategic plans of most firms.

Madison owns an upscale accessory boutique and drastically reduced some earrings to make room for new inventory.When the earrings didn't sell in the "discount basket," she put them back on the shelf at regular price and they sold within a month.What is her customers' perception of price?

Assume a product costs $5 each.The variable cost per unit is currently $4,and fixed costs are $25,000.If the company can alter its production method such that variable costs fall to $3.50 and fixed costs rise to $30,000,what will happen to the breakeven point?

Businesses often conduct a(n)_____ to determine the minimum sales volume a product must generate at a certain price level to cover all costs.

Creative selling involves a persuasive type of promotional presentation.

The process of finalizing a sale is the ________.

Dell Computer provides inner city schools with free computers and wireless Internet access.This is an example of ________.

Businesses often spend ________ as much on personal selling as on advertising.

__________ involves a one-on-one presentation to a prospective buyer.

Pricing method that sets an intentionally high price relative to the prices of competing products.

A major portion of advertising is designed to ________.

A sales representative who calls people at home is practicing inbound telemarketing.

A disadvantage of using ________ as an advertising medium is their short life span.

Trade promotion is ________.

In breakeven analysis,the costs that change with the level of production are considered ________ costs.

McDonalds including a toy in each Happy Meal purchase is an example of a premium.

If a product sells for $20 and the variable costs are $14,then the per-unit contribution to fixed costs is $6.

_____ consists of displays or demonstrations that promote products when and where consumers buy them.

Odd pricing is used because retailers believe that consumers favour prices such as $3.99 or $249,999.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: The Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labour Relations

Top Performance through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Financial Management

Filters