Question 1

_____ is often used when there are few or no close competitors.

Accepted Answer

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

Question 2

D-base,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

Question 3

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.

Question 4

The fundamental purpose of promotion is to persuade and influence customers to purchase a product.

Accepted Answer

A) True 
 B)False

Question 5

Missionary selling is used for promoting goodwill of a company or providing technical or operational assistance to customers.

Accepted Answer

A) True 
 B)False

Question 6

_____ 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

Question 7

Service International,a car lubricant manufacturer,puts a sticker on your windshield to remind you when you are due for your next oil change.This is an example of which of the following promotional strategy objectives?

Accepted Answer

A) Accentuating the product's value 
B) Providing information 
C) Stabilizing sales 
D) Differentiating the product

Question 8

When firms try to differentiate their products,they often apply a concept known as

Accepted Answer

A) product valuation. 
B) personal selling. 
C) the marketing mix. 
D) positioning.

Question 9

In an effort to boost the entire pork industry in the U.S.,the National Pork Board sponsors an advertisement stating,"Pork: The Other White Meat." This type of promotion is trying to develop

Accepted Answer

A) primary demand. 
B) media containment. 
C) name recognition. 
D) media dominance.

Question 10

All County Community College purchases golf balls engraved with the words "All County Community College," which are distributed at various college fairs in which it participates.These engraved golf balls are considered

Accepted Answer

A) point-of-purchase advertising. 
B) samples. 
C) premiums. 
D) specialty advertising.

Question 11

A manufacturer that sells _____ is most likely to employ personal selling.

Accepted Answer

A) scissors with a safety attachment 
B) generic tea at a low cost 
C) private jets to people 
D) packaged chips all over the world

Exam 13: Promotion and Pricing Strategies