Question 1

Creative selling involves a persuasive type of promotional presentation.

Accepted Answer

A) True 
 B)False

Question 2

A recent newspaper article reported that the CEO of Lake-Marker Corporation has been accused of accounting fraud.This article is an example of publicity.

Accepted Answer

A) True 
 B)False

Question 3

_____ advertising is used to promote a specific viewpoint on a public issue as a way to influence public opinion and the legislative process about issues such as literacy,hunger and poverty,and alternative energy sources.

Accepted Answer

A) Effect 
B) Cause 
C) Persuasive 
D) Comparative

Question 4

Differentiate between pushing strategies and pulling strategies.

Accepted Answer

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

Question 5

Jonathan is planning on setting up a small-scale guitar manufacturing company.Jonathan isn't well versed in economics,so he doesn't understand the concept of supply and demand very well.What pricing strategy must Jonathan adopt?

Accepted Answer

A) Skimming pricing 
B) Prestige pricing 
C) Psychological pricing 
D) Cost-based pricing

Question 6

The future attitudes of most prospects are affected by the first impression they form of a salesperson.Therefore,salespeople _____.

Accepted Answer

A) should carefully prepare their approach to potential customers 
B) should use the same sales pitch to all customers 
C) must be selective in identifying prospects 
D) must be tactful when they respond to objections

Question 7

Penetration pricing assumes that _____.

Accepted Answer

A) the price of a product is directly proportionate to its quality 
B) people always pay more for items that are unfamiliar to them 
C) advertising is a global activity 
D) a low price will make the product more attractive

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Describe profitability objectives.How do some companies maintain prices while still increasing profitability?

Accepted Answer

The answer of Describe profitability objectives.How do some companies maintain...

Question 10

Which of the following is an example of a virtual approach that companies use to identify and qualify sales prospects?

Accepted Answer

A) Focus groups 
B) Webinars 
C) Public service messages 
D) Radio announcements

Question 11

Complete the following using the terms listed.
-_____ 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)penetration
K)integrated marketing communications
L)cooperative advertising
M)odd pricing

Question 12

When a pharmaceutical company uses the phrase "ask your doctor" in its ads,the company is using a _____ strategy to appeal directly to the public instead of physicians alone.

Accepted Answer

A) pulling 
B) public relations 
C) rebate 
D) pushing

Question 13

Which of the following can help create product prestige?

Accepted Answer

A) High quality 
B) Additional rebates 
C) Fixed costs 
D) Limited availability

Question 14

What is sales promotion? Give some examples of common sales promotion techniques.

Accepted Answer

The answer of What is sales promotion? Give some examples...

Question 15

When ridesharing service Uber employs surge pricing,it is implementing a(n)_____.

Accepted Answer

A) volume objective 
B) prestige pricing structure 
C) market-demand pricing structure 
D) profitability objective

Question 16

Advertising is a form of nonpersonal selling.

Accepted Answer

A) True 
 B)False

Question 17

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

Question 18

Drelfin Community College purchases golf balls engraved with the words "Drelfin 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 19

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

Question 20

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

The answer of Assume fixed costs equal $480,000.The selling price...

Exam 13: Promotion and Pricing Strategies

Creative selling involves a persuasive type of promotional presentation.

A recent newspaper article reported that the CEO of Lake-Marker Corporation has been accused of accounting fraud.This article is an example of publicity.

_____ advertising is used to promote a specific viewpoint on a public issue as a way to influence public opinion and the legislative process about issues such as literacy,hunger and poverty,and alternative energy sources.

Differentiate between pushing strategies and pulling strategies.

Jonathan is planning on setting up a small-scale guitar manufacturing company.Jonathan isn't well versed in economics,so he doesn't understand the concept of supply and demand very well.What pricing strategy must Jonathan adopt?

The future attitudes of most prospects are affected by the first impression they form of a salesperson.Therefore,salespeople _____.

Penetration pricing assumes that _____.

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

Describe profitability objectives.How do some companies maintain prices while still increasing profitability?

Which of the following is an example of a virtual approach that companies use to identify and qualify sales prospects?

Complete the following using the terms listed. -_____ bases pricing decisions on market share,the percentage of the market controlled by a certain product or company.

When a pharmaceutical company uses the phrase "ask your doctor" in its ads,the company is using a _____ strategy to appeal directly to the public instead of physicians alone.

Which of the following can help create product prestige?

What is sales promotion? Give some examples of common sales promotion techniques.

When ridesharing service Uber employs surge pricing,it is implementing a(n) _____.

Advertising is a form of nonpersonal selling.

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

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

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

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.