Question 1

_____ bases pricing decisions on market share,the percentage of the market controlled by a certain product or company.

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

Question 2

Ford is running ads emphasizing that it offers longer warranties than other automobile companies.This is an example of which promotional strategy objective?

Accepted Answer

A)  Differentiate the product 
B)  Stabilize sales 
C)  Provide information 
D)  Accentuate the product's value

Question 3

A skimming pricing strategy involves setting the price of a product relatively high and then gradually lowering it.

Accepted Answer

A) True 
 B)False

Question 4

Competitive pricing focuses on ________.

Accepted Answer

A)  variable pricing 
B)  penetration pricing 
C)  the marketing mix 
D)  skimming pricing

Question 5

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 6

Public relations refers to an organization's nonpaid communications.

Accepted Answer

A) True 
 B)False

Question 7

A television ad promoting new stain-fighting power of a Tide laundry detergent is an example of differentiating a product.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

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

Question 9

The method of determining the minimum sales volume needed at a certain price level to cover all costs is ________.

Accepted Answer

A)  market share analysis 
B)  equilibrium pricing 
C)  return on sales 
D)  breakeven analysis

Question 10

The first step in the sales process is to identify the potential customer.

Accepted Answer

A) True 
 B)False

Question 11

Differentiate between a pushing and a pulling strategy.

Accepted Answer

The answer of Differentiate between a pushing and a pulling...

Question 12

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 13

Chris is allowed to purchase a reasonably priced notebook computer for graduation.He sees one in Best Buy for $999.99 and calls his parents to assure them the computer costs "less than a thousand." Both Chris and Best Buy are using ________ to downplay the price of the computer.

Accepted Answer

A)  cost-based pricing 
B)  personal selling 
C)  price fixing 
D)  odd pricing

Question 14

Sales of intangible products or services such as insurance often rely heavily on ________.

Accepted Answer

A)  missionary selling 
B)  creative selling 
C)  order processing 
D)  sales promotion

Question 15

Salespeople determine if prospects have the financial ability and authority to buy through ________.

Accepted Answer

A)  approach 
B)  follow-up 
C)  handling objections 
D)  qualifying

Question 16

Describe the follow-up stage of the selling process.Why is this stage important?

Accepted Answer

The answer of Describe the follow-up stage of the selling...

Question 17

Samples,coupons,contests,displays,and trade shows are examples of sales promotion.

Accepted Answer

A) True 
 B)False

Question 18

A company following a competitive pricing strategy relies heavily on price as a competitive weapon.

Accepted Answer

A) True 
 B)False

Question 19

In an effort to boost the entire pork industry,the National Pork Board sponsors an advertisement stating,"Pork.The Other White Meat." This type of promotion is called ________.

Accepted Answer

A)  name recognition 
B)  media dominance 
C)  primary demand 
D)  media exposure

Question 20

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

Accepted Answer

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

Exam 13: Promotion and Pricing Strategies

_____ bases pricing decisions on market share,the percentage of the market controlled by a certain product or company.

Ford is running ads emphasizing that it offers longer warranties than other automobile companies.This is an example of which promotional strategy objective?

A skimming pricing strategy involves setting the price of a product relatively high and then gradually lowering it.

Competitive pricing focuses on ________.

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

Public relations refers to an organization's nonpaid communications.

A television ad promoting new stain-fighting power of a Tide laundry detergent is an example of differentiating a product.

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

The method of determining the minimum sales volume needed at a certain price level to cover all costs is ________.

The first step in the sales process is to identify the potential customer.

Differentiate between a pushing and a pulling strategy.

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

Chris is allowed to purchase a reasonably priced notebook computer for graduation.He sees one in Best Buy for $999.99 and calls his parents to assure them the computer costs "less than a thousand." Both Chris and Best Buy are using ________ to downplay the price of the computer.

Sales of intangible products or services such as insurance often rely heavily on ________.

Salespeople determine if prospects have the financial ability and authority to buy through ________.

Describe the follow-up stage of the selling process.Why is this stage important?

Samples,coupons,contests,displays,and trade shows are examples of sales promotion.

A company following a competitive pricing strategy relies heavily on price as a competitive weapon.

In an effort to boost the entire pork industry,the National Pork Board sponsors an advertisement stating,"Pork.The Other White Meat." This type of promotion is called ________.

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