Question 1

A firm that wanted to conduct a short-term activity in order to boost consumer buying would use which of the following strategies?

Accepted Answer

A)  Sales promotions 
B)  Special offers 
C)  Trade shows 
D)  Point-of-sale displays 
E)  Missionary selling 
A)  Sales promotions 
B)  Special offers 
C)  Trade shows 
D)  Point-of-sale displays 
E)  Missionary selling

Question 2

List three promotional objectives (other than increasing sales).

Accepted Answer

To increase consumer awareness

Question 3

How is the markup percentage calculated? Give an example.

Accepted Answer

The markup percentage is calculated by d

Question 4

The largest percentage of advertising dollars is spent on newspaper advertising.

Accepted Answer

A) True 
 B)False

Question 5

The communications vehicle that appeals to many consumer senses, can be targeted to a specific audience, and reaches more people than any other medium is

Accepted Answer

A)  magazines. 
B)  radio. 
C)  television. 
D)  newspaper. 
E)  direct mail. 
A)  magazines. 
B)  radio. 
C)  television. 
D)  newspaper. 
E)  direct mail.

Question 6

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

Accepted Answer

A)  About twice as much is spent on advertising in magazines than is spent on newspapers. 
B)  Newspapers generally allow advertisers to target their audiences well. 
C)  Radio stations are generally not highly segmented into listening categories. 
D)  Billboard messages are relatively expensive. 
E)  People tend to use radio as "background" while they are doing other things. 
A)  About twice as much is spent on advertising in magazines than is spent on newspapers. 
B)  Newspapers generally allow advertisers to target their audiences well. 
C)  Radio stations are generally not highly segmented into listening categories. 
D)  Billboard messages are relatively expensive. 
E)  People tend to use radio as "background" while they are doing other things.

Question 7

What is a trade show? How does a firm's participation in a trade show serve to promote the firm's products?

Accepted Answer

A trade show is a sales promotion method

Question 8

List two strategies for pricing new products.

Accepted Answer

Price skim

Question 9

The combination of media that a company chooses to advertise its products is called its promotional mix.

Accepted Answer

A) True 
 B)False

Question 10

Jim Bradley represents several producers and is paid a commission based on invoice values. Which of the following types of intermediaries is Jim?

Accepted Answer

A)  Wholesaler 
B)  Sales office 
C)  Sales branch 
D)  Agent/broker 
E)  Rack jobber 
A)  Wholesaler 
B)  Sales office 
C)  Sales branch 
D)  Agent/broker 
E)  Rack jobber

Question 11

What is "markup"?

Accepted Answer

A)  Markup is the point at which the firm covers the fixed and variable costs. 
B)  Markup is the amount of money left over after all expenses have been deducted from revenues. 
C)  Markup is an amount equal to demand divided by product cost. 
D)  Markup is an amount added to the cost of the item to arrive at the selling price. 
E)  Markup is the point where demand equals supply. 
A)  Markup is the point at which the firm covers the fixed and variable costs. 
B)  Markup is the amount of money left over after all expenses have been deducted from revenues. 
C)  Markup is an amount equal to demand divided by product cost. 
D)  Markup is an amount added to the cost of the item to arrive at the selling price. 
E)  Markup is the point where demand equals supply.

Question 12

Which of the following best characterizes the difference between the roles of advertising and personal selling in the promotional mix of a firm?

Accepted Answer

A)  Advertising is, at its worst, very expensive with little return, whereas personal selling is also very expensive, at its worst, but with better returns. 
B)  Advertising, at its best, targets a specific audience about a product, whereas personal selling, at its best, is always dependent on the clients that a seller has. 
C)  Advertising involves public relations with the overall population of consumers, whereas personal selling involves personalized relationships with select individuals. 
D)  Advertising is a relatively new method of promotion, whereas personal selling is the oldest method of promotion. 
E)  Advertising is non-personal in its communication about a product, whereas personal selling is highly individualized. 
A)  Advertising is, at its worst, very expensive with little return, whereas personal selling is also very expensive, at its worst, but with better returns. 
B)  Advertising, at its best, targets a specific audience about a product, whereas personal selling, at its best, is always dependent on the clients that a seller has. 
C)  Advertising involves public relations with the overall population of consumers, whereas personal selling involves personalized relationships with select individuals. 
D)  Advertising is a relatively new method of promotion, whereas personal selling is the oldest method of promotion. 
E)  Advertising is non-personal in its communication about a product, whereas personal selling is highly individualized.

Question 13

Doreen owns a seafood restaurant in Alberta. She would like to have the freshest seafood possible, so her preferred method of delivery would be

Accepted Answer

A)  plane. 
B)  train. 
C)  truck. 
D)  any of these would deliver fresh seafood in an equal amount of time. 
E)  none of these are good delivery methods for seafood. 
A)  plane. 
B)  train. 
C)  truck. 
D)  any of these would deliver fresh seafood in an equal amount of time. 
E)  none of these are good delivery methods for seafood.

Question 14

An intermediary is

Accepted Answer

A)  the combination of distribution channels by which a firm gets its products to end users. 
B)  a business that sells products to other businesses for resale to final consumers. 
C)  a business that sells products directly to consumers. 
D)  an individual or firm that helps to distribute a product. 
E)  a network of independent companies through which a product passes from producer to end user. 
A)  the combination of distribution channels by which a firm gets its products to end users. 
B)  a business that sells products to other businesses for resale to final consumers. 
C)  a business that sells products directly to consumers. 
D)  an individual or firm that helps to distribute a product. 
E)  a network of independent companies through which a product passes from producer to end user.

Question 15

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

Accepted Answer

A)  Advertising spending on radio is larger than any other medium. 
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)  Advertising spending on radio is larger than any other medium. 
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 16

In the direct channel of distribution, how many intermediaries are there between the producer and the consumer?

Accepted Answer

A)  0 
B)  1 
C)  2 
D)  3 
E)  4 
A)  0 
B)  1 
C)  2 
D)  3 
E)  4

Question 17

A company which sets prices above the market rate plays on the consumer's belief that higher prices mean higher quality products.

Accepted Answer

A) True 
 B)False

Question 18

Betty's Breads is trying to calculate its break-even point. Monthly fixed costs are $5255. The cost of making one loaf of bread, considering labour and materials, is $3.50. Betty's sells the bread at $6 per loaf. How many loaves does Betty's need to sell each month in order to break even?

Accepted Answer

A)  251 
B)  626 
C)  1502 
D)  2102 
E)  2200 
A)  251 
B)  626 
C)  1502 
D)  2102 
E)  2200

Question 19

Which of the following is correct with regard to the various modes of transportation?

Accepted Answer

A)  Water transportation is the least expensive, but slowest of the various modes. 
B)  One of the disadvantages of air travel is that it increases packing and handling costs. 
C)  Trucks are a particularly good choice for long-distance distribution and for less expensive products. 
D)  Overall, trucks are the best way to transport goods. 
E)  All of these are correct. 
A)  Water transportation is the least expensive, but slowest of the various modes. 
B)  One of the disadvantages of air travel is that it increases packing and handling costs. 
C)  Trucks are a particularly good choice for long-distance distribution and for less expensive products. 
D)  Overall, trucks are the best way to transport goods. 
E)  All of these are correct.

Question 20

Algoma Banners set up a booth to display their products and to demonstrate products to customers who have a special interest in their product. Which sales promotion technique were they using?

Accepted Answer

A)  Coupons 
B)  Premiums 
C)  Contests 
D)  Trade shows 
E)  Point-of-sale displays 
A)  Coupons 
B)  Premiums 
C)  Contests 
D)  Trade shows 
E)  Point-of-sale displays

A firm that wanted to conduct a short-term activity in order to boost consumer buying would use which of the following strategies?

List three promotional objectives (other than increasing sales).

How is the markup percentage calculated? Give an example.

The largest percentage of advertising dollars is spent on newspaper advertising.

The communications vehicle that appeals to many consumer senses, can be targeted to a specific audience, and reaches more people than any other medium is

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

What is a trade show? How does a firm's participation in a trade show serve to promote the firm's products?

List two strategies for pricing new products.

The combination of media that a company chooses to advertise its products is called its promotional mix.

Jim Bradley represents several producers and is paid a commission based on invoice values. Which of the following types of intermediaries is Jim?

What is "markup"?

Which of the following best characterizes the difference between the roles of advertising and personal selling in the promotional mix of a firm?

Doreen owns a seafood restaurant in Alberta. She would like to have the freshest seafood possible, so her preferred method of delivery would be

An intermediary is

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

In the direct channel of distribution, how many intermediaries are there between the producer and the consumer?

A company which sets prices above the market rate plays on the consumer's belief that higher prices mean higher quality products.

Betty's Breads is trying to calculate its break-even point. Monthly fixed costs are $5255. The cost of making one loaf of bread, considering labour and materials, is $3.50. Betty's sells the bread at $6 per loaf. How many loaves does Betty's need to sell each month in order to break even?

Which of the following is correct with regard to the various modes of transportation?

Algoma Banners set up a booth to display their products and to demonstrate products to customers who have a special interest in their product. Which sales promotion technique were they using?

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

Finacial Decisions and Risk Management

Filters

Exam 13: Pricing, Promotion, and Distributing Products

A firm that wanted to conduct a short-term activity in order to boost consumer buying would use which of the following strategies?

List three promotional objectives (other than increasing sales).

How is the markup percentage calculated? Give an example.

The largest percentage of advertising dollars is spent on newspaper advertising.

The communications vehicle that appeals to many consumer senses, can be targeted to a specific audience, and reaches more people than any other medium is

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

What is a trade show? How does a firm's participation in a trade show serve to promote the firm's products?

List two strategies for pricing new products.

The combination of media that a company chooses to advertise its products is called its promotional mix.

Jim Bradley represents several producers and is paid a commission based on invoice values. Which of the following types of intermediaries is Jim?

What is "markup"?

Which of the following best characterizes the difference between the roles of advertising and personal selling in the promotional mix of a firm?

Doreen owns a seafood restaurant in Alberta. She would like to have the freshest seafood possible, so her preferred method of delivery would be

An intermediary is

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

In the direct channel of distribution, how many intermediaries are there between the producer and the consumer?

A company which sets prices above the market rate plays on the consumer's belief that higher prices mean higher quality products.

Betty's Breads is trying to calculate its break-even point. Monthly fixed costs are $5255. The cost of making one loaf of bread, considering labour and materials, is $3.50. Betty's sells the bread at $6 per loaf. How many loaves does Betty's need to sell each month in order to break even?

Which of the following is correct with regard to the various modes of transportation?

Algoma Banners set up a booth to display their products and to demonstrate products to customers who have a special interest in their product. Which sales promotion technique were they using?

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

Finacial Decisions and Risk Management

Filters