Question 1

The first step in sales processes is to identify potential customers.

Accepted Answer

A) True 
 B)False

Question 2

Chappers, an audio equipment store, wants to price one of its products, a $200 turntable, in such a way that its customers would perceive the turntable's quality to be very high. Which of the following pricing must it use?

Accepted Answer

A)  $203 
B)  $202 
C)  $202.22 
D)  $202.11 
A)  $203 
B)  $202 
C)  $202.22 
D)  $202.11

Question 3

_____ involves the use of innovative, low-cost marketing efforts to attract customer attention.

Accepted Answer

A)  Trade promotion 
B)  Guerrilla marketing 
C)  Creative selling 
D)  Institutional marketing 
A)  Trade promotion 
B)  Guerrilla marketing 
C)  Creative selling 
D)  Institutional marketing

Question 4

A major portion of the U.S. advertising is designed to _____.

Accepted Answer

A)  accentuate product cost 
B)  stimulate pork demand 
C)  provide information 
D)  differentiate products 
A)  accentuate product cost 
B)  stimulate pork demand 
C)  provide information 
D)  differentiate products

Question 5

Which of the following pricing objectives will have the most influence on Phin's, a luxury watchmaker's, pricing strategy?

Accepted Answer

A)  Profitability 
B)  Prestige 
C)  Meeting the competition 
D)  Volume 
A)  Profitability 
B)  Prestige 
C)  Meeting the competition 
D)  Volume

Question 6

Setting a price relatively high compared to similar goods and then gradually lowering it is a pricing strategy called _____ pricing.

Accepted Answer

A)  penetration 
B)  skimming 
C)  cost-based 
D)  psychological 
A)  penetration 
B)  skimming 
C)  cost-based 
D)  psychological

Question 7

The process of finalizing a sale is part of the _____ stage of the sales process.

Accepted Answer

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

Question 8

Television ads by InSure, an insurance company, warning drivers against texting while driving are a type of institutional advertisement.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

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

Question 10

Many marketers pay product placement fees to promote their products in television shows or movies.

Accepted Answer

A) True 
 B)False

Question 11

Assume a company wants to increase its profitability. Which of the following would be inconsistent with the company's objective?

Accepted Answer

A)  Operate more efficiently 
B)  Maintain price while increasing the size or amount of the product 
C)  Reduce costs while maintaining the quality of the product 
D)  Raise prices while increasing the quality of the product 
A)  Operate more efficiently 
B)  Maintain price while increasing the size or amount of the product 
C)  Reduce costs while maintaining the quality of the product 
D)  Raise prices while increasing the quality of the product

Question 12

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

Accepted Answer

A)  twice 
B)  almost 
C)  five to ten times 
D)  over twenty times 
A)  twice 
B)  almost 
C)  five to ten times 
D)  over twenty times

Question 13

Infomercials are typically 30-minute marketing programs that resemble regular television programs, but they are devoted to selling goods or services.

Accepted Answer

A) True 
 B)False

Question 14

An ad claiming that Brand A works better than Brand B is an example of reminder-oriented advertising.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

MATCHING
Complete the following using the terms listed.
-With _____businesses drop prices for a set period of time to attract more customers during that period of time.

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)penetration
K)integrated marketing communications
L)cooperative advertising
M)odd 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)penetration
K)integrated marketing communications
L)cooperative advertising
M)odd pricing

Question 17

Companies typically prefer sweepstakes to games or contests because:

Accepted Answer

A)  they can predict the number of winners in sweepstakes. 
B)  organizing sweepstakes require less advertising. 
C)  sweepstakes require product purchase to enter. 
D)  courts and rulings have favored the use of sweepstakes. 
A)  they can predict the number of winners in sweepstakes. 
B)  organizing sweepstakes require less advertising. 
C)  sweepstakes require product purchase to enter. 
D)  courts and rulings have favored the use of sweepstakes.

Question 18

Research indicates that the use of Internet coupons is on the decline.

Accepted Answer

A) True 
 B)False

Question 19

Skimming pricing strategies involve setting the price of a product relatively high and then gradually lowering it.

Accepted Answer

A) True 
 B)False

Question 20

Oilfield Inc. and Trell Inc., two major oil companies, are located directly across the street from one another. Oilfield lowers its price for regular unleaded oil by 5 cents, and Trell quickly follows suit. What pricing objective is Trell using?

Accepted Answer

A)  Competitive pricing 
B)  Skimming pricing 
C)  Odd pricing 
D)  Penetration pricing 
A)  Competitive pricing 
B)  Skimming pricing 
C)  Odd pricing 
D)  Penetration pricing

The first step in sales processes is to identify potential customers.

Chappers, an audio equipment store, wants to price one of its products, a $200 turntable, in such a way that its customers would perceive the turntable's quality to be very high. Which of the following pricing must it use?

_____ involves the use of innovative, low-cost marketing efforts to attract customer attention.

A major portion of the U.S. advertising is designed to _____.

Which of the following pricing objectives will have the most influence on Phin's, a luxury watchmaker's, pricing strategy?

Setting a price relatively high compared to similar goods and then gradually lowering it is a pricing strategy called _____ pricing.

The process of finalizing a sale is part of the _____ stage of the sales process.

Television ads by InSure, an insurance company, warning drivers against texting while driving are a type of institutional advertisement.

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

Many marketers pay product placement fees to promote their products in television shows or movies.

Assume a company wants to increase its profitability. Which of the following would be inconsistent with the company's objective?

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

Infomercials are typically 30-minute marketing programs that resemble regular television programs, but they are devoted to selling goods or services.

An ad claiming that Brand A works better than Brand B is an example of reminder-oriented advertising.

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

MATCHING Complete the following using the terms listed. -With _____businesses drop prices for a set period of time to attract more customers during that period of time.

Companies typically prefer sweepstakes to games or contests because:

Research indicates that the use of Internet coupons is on the decline.

Skimming pricing strategies involve setting the price of a product relatively high and then gradually lowering it.

Oilfield Inc. and Trell Inc., two major oil companies, are located directly across the street from one another. Oilfield lowers its price for regular unleaded oil by 5 cents, and Trell quickly follows suit. What pricing objective is Trell using?

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 Labor 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

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Exam 13: Promotion and Pricing Strategies

The first step in sales processes is to identify potential customers.

Chappers, an audio equipment store, wants to price one of its products, a $200 turntable, in such a way that its customers would perceive the turntable's quality to be very high. Which of the following pricing must it use?

_____ involves the use of innovative, low-cost marketing efforts to attract customer attention.

A major portion of the U.S. advertising is designed to _____.

Which of the following pricing objectives will have the most influence on Phin's, a luxury watchmaker's, pricing strategy?

Setting a price relatively high compared to similar goods and then gradually lowering it is a pricing strategy called _____ pricing.

The process of finalizing a sale is part of the _____ stage of the sales process.

Television ads by InSure, an insurance company, warning drivers against texting while driving are a type of institutional advertisement.

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

Many marketers pay product placement fees to promote their products in television shows or movies.

Assume a company wants to increase its profitability. Which of the following would be inconsistent with the company's objective?

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

Infomercials are typically 30-minute marketing programs that resemble regular television programs, but they are devoted to selling goods or services.

An ad claiming that Brand A works better than Brand B is an example of reminder-oriented advertising.

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

MATCHING Complete the following using the terms listed. -With _____businesses drop prices for a set period of time to attract more customers during that period of time.

Companies typically prefer sweepstakes to games or contests because:

Research indicates that the use of Internet coupons is on the decline.

Skimming pricing strategies involve setting the price of a product relatively high and then gradually lowering it.

Oilfield Inc. and Trell Inc., two major oil companies, are located directly across the street from one another. Oilfield lowers its price for regular unleaded oil by 5 cents, and Trell quickly follows suit. What pricing objective is Trell using?

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 Labor 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