Question 1

A major portion of the U.S. advertising is science oriented.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

A disadvantage of using _____ as an advertising medium is their short lifespan.

Accepted Answer

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

Question 4

A company includes an instant coupon as part of its product's package that gives buyers a discount on the product's retail price. What is the company attempting to do?

Accepted Answer

A)  Increase sales 
B)  Provide negative information about its competitors 
C)  Stabilize sales by employing personal selling 
D)  Differentiate the product 
A)  Increase sales 
B)  Provide negative information about its competitors 
C)  Stabilize sales by employing personal selling 
D)  Differentiate the product

Question 5

Wal-Mart's pricing objective is based primarily on _____, while a jewelry store's pricing objective would be based primarily on _____.

Accepted Answer

A)  volume; profitability 
B)  profitability; profitability 
C)  profitability; prestige 
D)  volume; prestige 
A)  volume; profitability 
B)  profitability; profitability 
C)  profitability; prestige 
D)  volume; prestige

Question 6

Fixed costs remain stable regardless of the production level.

Accepted Answer

A) True 
 B)False

Question 7

Assume fixed costs equal $480,000. The selling price per unit is $10, and the variable cost per unit of $8 produces a $2 per unit contribution to fixed costs. Find the breakeven point in terms of both units and in dollars.

Accepted Answer

$480,000/$2 = 240,000 =breakev

Question 8

Which of the following statements regarding price and quality is supported by research?

Accepted Answer

A)  The higher the price, the greater the sales volume. 
B)  Consumers' perception of product quality is related closely to an item's price. 
C)  Perception of quality has no relationship to price. 
D)  Quality and price always go hand-in-hand. 
A)  The higher the price, the greater the sales volume. 
B)  Consumers' perception of product quality is related closely to an item's price. 
C)  Perception of quality has no relationship to price. 
D)  Quality and price always go hand-in-hand.

Question 9

MATCHING
Complete the following using the terms listed.
-A _____ pricing strategy sets a low price as a major marketing weapon.

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 10

A paid, nonpersonal sales communication usually directed at a large number of potential buyers is known as _____.

Accepted Answer

A)  the media mix 
B)  sales promotion 
C)  advertising 
D)  publicity 
A)  the media mix 
B)  sales promotion 
C)  advertising 
D)  publicity

Question 11

Crabfeet, a shoe manufacturing company, wants to create increased awareness about its products. The company wants to easily measure the effectiveness of its campaign strategies to increase awareness. Which component of the promotional mix must it focus on?

Accepted Answer

A)  Sales promotion 
B)  Advertising 
C)  Public relations 
D)  Guerrilla marketing 
A)  Sales promotion 
B)  Advertising 
C)  Public relations 
D)  Guerrilla marketing

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

The Federated Credit Union, through its direct-mail promotion, encourages its members to write letters to members of Congress asking them to pass legislation favorable to credit unions. Such promotion is a form of _____ advertising.

Accepted Answer

A)  advocacy 
B)  public 
C)  institutional 
D)  comparative 
A)  advocacy 
B)  public 
C)  institutional 
D)  comparative

Question 14

Albertsons, a large national supermarket chain, bases pricing decisions on market share and the percentage of a market controlled by a certain product. Albertsons bases its pricing decisions on _____.

Accepted Answer

A)  volume objectives 
B)  profitability objectives 
C)  prestige objectives 
D)  breakeven analysis 
A)  volume objectives 
B)  profitability objectives 
C)  prestige objectives 
D)  breakeven analysis

Question 15

In the movie, The Social Network, the actor portraying Mark Zuckerberg was featured wearing products by Gap and the North Face. This form of promotion is known as _____.

Accepted Answer

A)  trade promotion 
B)  institutional advertising 
C)  creative selling 
D)  product placement 
A)  trade promotion 
B)  institutional advertising 
C)  creative selling 
D)  product placement

Question 16

What are the components of the promotional mix? Outline the advantages of the components of the promotional mix.

Accepted Answer

The promotional mix consists of two comp

Question 17

Trade promotion is _____.

Accepted Answer

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

Question 18

_____ achieves a nonpersonal stimulation of demand for an organization by unpaid placement of information.

Accepted Answer

A)  Publicity 
B)  Specialty advertising 
C)  Point-of-purchase advertising 
D)  Cause advertising 
A)  Publicity 
B)  Specialty advertising 
C)  Point-of-purchase advertising 
D)  Cause advertising

Question 19

Penetration pricing is often used when there are no close competitors and none are expected to enter the market for some time.

Accepted Answer

A) True 
 B)False

Question 20

Promotion that is aimed at the ultimate consumer with the goal of generating demand for a good or service is based on a(n) _____.

Accepted Answer

A)  cooperative strategy 
B)  pulling strategy 
C)  pushing strategy 
D)  emphasis on personal selling 
A)  cooperative strategy 
B)  pulling strategy 
C)  pushing strategy 
D)  emphasis on personal selling

A major portion of the U.S. advertising is science oriented.

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

A disadvantage of using _____ as an advertising medium is their short lifespan.

A company includes an instant coupon as part of its product's package that gives buyers a discount on the product's retail price. What is the company attempting to do?

Wal-Mart's pricing objective is based primarily on _, while a jewelry store's pricing objective would be based primarily on _.

Fixed costs remain stable regardless of the production level.

Assume fixed costs equal $480,000. The selling price per unit is $10, and the variable cost per unit of $8 produces a $2 per unit contribution to fixed costs. Find the breakeven point in terms of both units and in dollars.

Which of the following statements regarding price and quality is supported by research?

MATCHING Complete the following using the terms listed. -A _____ pricing strategy sets a low price as a major marketing weapon.

A paid, nonpersonal sales communication usually directed at a large number of potential buyers is known as _____.

Crabfeet, a shoe manufacturing company, wants to create increased awareness about its products. The company wants to easily measure the effectiveness of its campaign strategies to increase awareness. Which component of the promotional mix must it focus on?

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

The Federated Credit Union, through its direct-mail promotion, encourages its members to write letters to members of Congress asking them to pass legislation favorable to credit unions. Such promotion is a form of _____ advertising.

Albertsons, a large national supermarket chain, bases pricing decisions on market share and the percentage of a market controlled by a certain product. Albertsons bases its pricing decisions on _____.

In the movie, The Social Network, the actor portraying Mark Zuckerberg was featured wearing products by Gap and the North Face. This form of promotion is known as _____.

What are the components of the promotional mix? Outline the advantages of the components of the promotional mix.

Trade promotion is _____.

_____ achieves a nonpersonal stimulation of demand for an organization by unpaid placement of information.

Penetration pricing is often used when there are no close competitors and none are expected to enter the market for some time.

Promotion that is aimed at the ultimate consumer with the goal of generating demand for a good or service is based on a(n) _____.

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

Exam 13: Promotion and Pricing Strategies

A major portion of the U.S. advertising is science oriented.

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

A disadvantage of using _____ as an advertising medium is their short lifespan.

A company includes an instant coupon as part of its product's package that gives buyers a discount on the product's retail price. What is the company attempting to do?

Wal-Mart's pricing objective is based primarily on _____, while a jewelry store's pricing objective would be based primarily on _____.

Fixed costs remain stable regardless of the production level.

Assume fixed costs equal $480,000. The selling price per unit is $10, and the variable cost per unit of $8 produces a $2 per unit contribution to fixed costs. Find the breakeven point in terms of both units and in dollars.

Which of the following statements regarding price and quality is supported by research?

MATCHING Complete the following using the terms listed. -A _____ pricing strategy sets a low price as a major marketing weapon.

A paid, nonpersonal sales communication usually directed at a large number of potential buyers is known as _____.

Crabfeet, a shoe manufacturing company, wants to create increased awareness about its products. The company wants to easily measure the effectiveness of its campaign strategies to increase awareness. Which component of the promotional mix must it focus on?

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

The Federated Credit Union, through its direct-mail promotion, encourages its members to write letters to members of Congress asking them to pass legislation favorable to credit unions. Such promotion is a form of _____ advertising.

Albertsons, a large national supermarket chain, bases pricing decisions on market share and the percentage of a market controlled by a certain product. Albertsons bases its pricing decisions on _____.

In the movie, The Social Network, the actor portraying Mark Zuckerberg was featured wearing products by Gap and the North Face. This form of promotion is known as _____.

What are the components of the promotional mix? Outline the advantages of the components of the promotional mix.

Trade promotion is _____.

_____ achieves a nonpersonal stimulation of demand for an organization by unpaid placement of information.

Penetration pricing is often used when there are no close competitors and none are expected to enter the market for some time.

Promotion that is aimed at the ultimate consumer with the goal of generating demand for a good or service is based on a(n) _____.

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

Wal-Mart's pricing objective is based primarily on _, while a jewelry store's pricing objective would be based primarily on _.