Question 1

How could the use of wholesalers affect the pricing for the Superior V and Superior VI speaker systems?

Accepted Answer

Using wholesalers would relieve Superior of a great deal of storage and display costs as well as costs involved with maintaining a system of retail stores.However,adding another layer to the distribution channel from producer to consumer would obviously increase the price of each system for the consumer.

Question 2

Audio Elite Corporation is a manufacturer of high-end audio devices and car stereos.Its products are known for excellent craftsmanship and sound quality.The primary target market for the company is executives in the age group of 30 to 40.The company is in the process of reworking its media mix.It had traditionally relied on television to spread its message.However,with the advent of video-on-demand and DVR systems,ad-skipping has become common.Some managers in the decision-making team feel that the bulk of the advertising budget should be allocated to Internet advertising. Which of the following,if true,would strengthen the argument for using television as the medium for the next campaign?

Accepted Answer

A) A study shows that the bulk of television audiences are teenagers and people over 65. 
B) More than 26 percent of advertising dollars are spent on national and local television commercials versus 24 percent on Internet advertising. 
C) The number of video-on-demand viewers is expected to quadruple during the next five years. 
D) Increasingly,consumers are choosing not to watch ads. 
E) Effective television ads are still the best way to hold the audience's attention. 
A) A study shows that the bulk of television audiences are teenagers and people over 65. 
B) More than 26 percent of advertising dollars are spent on national and local television commercials versus 24 percent on Internet advertising. 
C) The number of video-on-demand viewers is expected to quadruple during the next five years. 
D) Increasingly,consumers are choosing not to watch ads. 
E) Effective television ads are still the best way to hold the audience's attention. E

Question 3

Caramilk bars are an example of ________ distribution,whereas Jaguar cars are an example of ________ distribution.

Accepted Answer

A) exclusive;selective 
B) selective;exclusive 
C) intensive;selective 
D) selective;selective 
E) intensive;exclusive 
A) exclusive;selective 
B) selective;exclusive 
C) intensive;selective 
D) selective;selective 
E) intensive;exclusive E

Question 4

What pricing strategy has generally been used for the new introduction of innovative technology like 8K TV?

Accepted Answer

A) Penetration pricing 
B) Price lining 
C) Market pricing 
D) Price fixing 
E) Price skimming 
A) Penetration pricing 
B) Price lining 
C) Market pricing 
D) Price fixing 
E) Price skimming

Question 5

Frisell says: The most important online threat facing us today is identity theft.Consumers must rely on online shopping today more than ever,and they are exposed to all kinds of dangers by people gaining access to credit cards,bank information,and Social Security numbers.Identity theft is a lucrative "business," and identity thieves will keep finding new ways to rip off consumers as long as online shopping and transactions are widespread. Scofield responds: Consumers have suffered from online theft,but the most far-reaching danger to people today from the Internet is viruses and malware.These have the capacity to take down entire networks,affecting both businesses and consumers.It's not clear that anti-virus measures will ever be able to keep up with all the threats that are out there.
Scofield's claim assumes which of the following?

Accepted Answer

A) Viruses can be spread through various parts of a network. 
B) Current anti-virus measures are adequate to deal with current threats. 
C) Consumers are sufficiently aware of the importance of keeping their systems virus-free. 
D) Businesses are sufficiently aware of the importance of keeping their systems virus-free. 
E) Identity thieves do not use malware to steal consumers' identities. 
A) Viruses can be spread through various parts of a network. 
B) Current anti-virus measures are adequate to deal with current threats. 
C) Consumers are sufficiently aware of the importance of keeping their systems virus-free. 
D) Businesses are sufficiently aware of the importance of keeping their systems virus-free. 
E) Identity thieves do not use malware to steal consumers' identities.

Question 6

In terms of advertising revenues,which medium is the most important?

Accepted Answer

A) Newspapers 
B) Television 
C) Radio 
D) Internet 
E) Magazines 
A) Newspapers 
B) Television 
C) Radio 
D) Internet 
E) Magazines

Question 7

As a start-up company,you need to find ways to reduce costs.Which type of promotion is free?

Accepted Answer

A) Coupons 
B) Gift certificates 
C) Free samples 
D) Publicity 
E) Contests 
A) Coupons 
B) Gift certificates 
C) Free samples 
D) Publicity 
E) Contests

Question 8

The average cost of an industrial sales call has been estimated at $800 to $1000.

Accepted Answer

A) True 
 B)False

Question 9

What is personal selling?

Accepted Answer

Personal selling is a promotio

Question 10

Bill and Farrah have been recently hired by Superior Audio Systems,a cutting-edge manufacturer of speakers.They have been assigned to work on a product team for the Superior V,an existing product,and the Superior VI,a brand-new speaker technology.The team is reviewing the pricing strategy used to this point.In the past,the price for the Superior V has been slightly higher than similar products offered by competitors.Why would a company use this strategy?

Accepted Answer

Firms generally set prices above the mar

Question 11

Which of the following is correct with regard to the pricing of existing and new products?

Accepted Answer

A) Price skimming is generally most effective for consumer goods,but penetration pricing is generally most effective for industrial goods. 
B) The penetration pricing option is generally most effective for both consumer and industrial goods. 
C) In the car rental business,setting prices below the market generally works best. 
D) Penetration pricing is generally superior to a skimming strategy for new products. 
E) None of these is correct. 
A) Price skimming is generally most effective for consumer goods,but penetration pricing is generally most effective for industrial goods. 
B) The penetration pricing option is generally most effective for both consumer and industrial goods. 
C) In the car rental business,setting prices below the market generally works best. 
D) Penetration pricing is generally superior to a skimming strategy for new products. 
E) None of these is correct.

Question 12

What is the difference between a profit maximization objective and a market share objective?

Accepted Answer

With a profit maximization objective,pri

Question 13

Yellowknife Inc.is a small manufacturing company located in the far north of Canada.What transportation mode are they most likely to use?

Accepted Answer

A) Trucks 
B) Trains 
C) Planes 
D) Water carriers 
E) Pipelines 
A) Trucks 
B) Trains 
C) Planes 
D) Water carriers 
E) Pipelines

Question 14

________ attempts to build goodwill with customers by performing and publicizing a company's public service activities.

Accepted Answer

A) Personal selling 
B) Public relations 
C) Advertising 
D) Sales promotion 
E) Publicity 
A) Personal selling 
B) Public relations 
C) Advertising 
D) Sales promotion 
E) Publicity

Question 15

Which of the following is a method of sales promotion in which a product display is located in a retail store in order to encourage consumers to buy the product?

Accepted Answer

A) Point-of-purchase 
B) Impulse display 
C) Check out 
D) Showcase 
E) Exhibiting 
A) Point-of-purchase 
B) Impulse display 
C) Check out 
D) Showcase 
E) Exhibiting

Question 16

Which of the following is correct with regard to the various media?

Accepted Answer

A) Online advertising is growing every year,but it lacks consumer engagement. 
B) Magazines provide a low level of consumer selectivity. 
C) Radio advertisements are fairly inexpensive. 
D) Magazine advertising is not very good at conveying to consumers the value of a product. 
E) Outdoor advertising is the most important form of advertising based on spending by companies. 
A) Online advertising is growing every year,but it lacks consumer engagement. 
B) Magazines provide a low level of consumer selectivity. 
C) Radio advertisements are fairly inexpensive. 
D) Magazine advertising is not very good at conveying to consumers the value of a product. 
E) Outdoor advertising is the most important form of advertising based on spending by companies.

Question 17

In recent years,the trend is clear.Online advertising in its various forms is quickly climbing to the top of advertiser preferences,at the expense of all the traditional media.Which of the following statements about TV advertising is correct?

Accepted Answer

A) DVRs and PVRs are helping to maintain the strength of TV advertising. 
B) The shift to "online binge watching" has hurt TV advertising. 
C) TV advertising is easier to measure than online ads. 
D) TV advertising is ranked third in terms of advertising dollars. 
E) One of the key strengths of TV advertising is the ability to customize. 
A) DVRs and PVRs are helping to maintain the strength of TV advertising. 
B) The shift to "online binge watching" has hurt TV advertising. 
C) TV advertising is easier to measure than online ads. 
D) TV advertising is ranked third in terms of advertising dollars. 
E) One of the key strengths of TV advertising is the ability to customize.

Question 18

Bill and Farrah have been recently hired by Superior Audio Systems,a cutting-edge manufacturer of speakers.They have been assigned to work on a product team for the Superior V,an existing product,and the Superior VI,a brand-new speaker technology.The technical specifications of the Superior VI speakers have been worked out,but the team is struggling with pricing.Some members of the group think that the new speakers should be priced higher than the Superior V,while others are arguing for a lower price.What would the argument for pricing the Superior VI lower than the Superior V be?

Accepted Answer

Given that any new speaker system will b

Question 19

Which of the following best represents the formula for the break-even point?

Accepted Answer

A) Total variable costs divided by (price minus variable costs) 
B) Total variable costs divided by (price minus fixed costs) 
C) Total fixed costs divided by (price minus variable costs) 
D) Total fixed costs divided by (price minus fixed costs) 
E) Total revenue divided by (price minus fixed costs) 
A) Total variable costs divided by (price minus variable costs) 
B) Total variable costs divided by (price minus fixed costs) 
C) Total fixed costs divided by (price minus variable costs) 
D) Total fixed costs divided by (price minus fixed costs) 
E) Total revenue divided by (price minus fixed costs)

Question 20

The most widely used channel for industrial goods is

Accepted Answer

A) producer to wholesaler to industrial user. 
B) producer to industrial user. 
C) producer to agent to retailer to industrial user. 
D) producer to retailer to industrial user. 
E) producer to agent to wholesaler to retailer to industrial user. 
A) producer to wholesaler to industrial user. 
B) producer to industrial user. 
C) producer to agent to retailer to industrial user. 
D) producer to retailer to industrial user. 
E) producer to agent to wholesaler to retailer to industrial user.

How could the use of wholesalers affect the pricing for the Superior V and Superior VI speaker systems?

Caramilk bars are an example of distribution,whereas Jaguar cars are an example of distribution.

What pricing strategy has generally been used for the new introduction of innovative technology like 8K TV?

In terms of advertising revenues,which medium is the most important?

As a start-up company,you need to find ways to reduce costs.Which type of promotion is free?

The average cost of an industrial sales call has been estimated at $800 to $1000.

What is personal selling?

Which of the following is correct with regard to the pricing of existing and new products?

What is the difference between a profit maximization objective and a market share objective?

Yellowknife Inc.is a small manufacturing company located in the far north of Canada.What transportation mode are they most likely to use?

________ attempts to build goodwill with customers by performing and publicizing a company's public service activities.

Which of the following is a method of sales promotion in which a product display is located in a retail store in order to encourage consumers to buy the product?

Which of the following is correct with regard to the various media?

In recent years,the trend is clear.Online advertising in its various forms is quickly climbing to the top of advertiser preferences,at the expense of all the traditional media.Which of the following statements about TV advertising is correct?

Which of the following best represents the formula for the break-even point?

The most widely used channel for industrial goods is

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship,small Business,and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating,satisfying,and Leading Employees

Operations Management,productivity,and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Money and Banking

Financial Decisions and Risk Management

Filters

Exam 13: Pricing,promoting,and Distributing Products

How could the use of wholesalers affect the pricing for the Superior V and Superior VI speaker systems?

Caramilk bars are an example of ________ distribution,whereas Jaguar cars are an example of ________ distribution.

What pricing strategy has generally been used for the new introduction of innovative technology like 8K TV?

In terms of advertising revenues,which medium is the most important?

As a start-up company,you need to find ways to reduce costs.Which type of promotion is free?

The average cost of an industrial sales call has been estimated at $800 to $1000.

What is personal selling?

Which of the following is correct with regard to the pricing of existing and new products?

What is the difference between a profit maximization objective and a market share objective?

Yellowknife Inc.is a small manufacturing company located in the far north of Canada.What transportation mode are they most likely to use?

________ attempts to build goodwill with customers by performing and publicizing a company's public service activities.

Which of the following is a method of sales promotion in which a product display is located in a retail store in order to encourage consumers to buy the product?

Which of the following is correct with regard to the various media?

In recent years,the trend is clear.Online advertising in its various forms is quickly climbing to the top of advertiser preferences,at the expense of all the traditional media.Which of the following statements about TV advertising is correct?

Which of the following best represents the formula for the break-even point?

The most widely used channel for industrial goods is

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship,small Business,and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating,satisfying,and Leading Employees

Operations Management,productivity,and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Money and Banking

Financial Decisions and Risk Management

Filters

Caramilk bars are an example of distribution,whereas Jaguar cars are an example of distribution.