Deck 13: Promotion and Pricing Strategies

Question 1

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

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

Answer 1

A

Question 2

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

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

Answer 2

C

Question 3

Luxcar,an automobile manufacturer,is running ads emphasizing that it offers longer warranties than other automobile companies.This is an example of which of the following promotional strategy objectives?

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

Answer 3

A

Question 4

______ is a form of promotion in which marketers attempt to establish the identity and value of their products in the minds of customers by communicating to buyers meaningful distinctions about the attributes,price,quality,or use of a good or service.

A)Order processing
B)Distribution
C)Missionary selling
D)Positioning

Question 5

In the movie,The Social Network,the actor portraying Mark Zuckerberg was featured wearing products by Gap and the North Face.This form of promotion is known as

A)trade promotion.
B)institutional advertising.
C)creative selling.
D)product placement.

Question 6

______ is the best-known form of nonpersonal selling.

A)Direct mail
B)Personal selling
C)Advertising
D)Distribution

Question 7

A paid,nonpersonal sales communication usually directed at a large number of potential buyers is known as

A)the media mix.
B)sales promotion.
C)advertising.
D)publicity.

Question 8

Which of the following scenarios illustrates the concept of personal selling?

A)A salesperson talking to a customer about a water purifier
B)A television advertisement about a new automobile
C)A radio announcement about a new restaurant
D)A salesperson handing flyers about a new boutique in a shopping mall

Question 9

______ is the most basic form of promotion.

A)Direct mail
B)Personal selling
C)Public relations
D)Distribution

Question 10

Which of these involves the use of innovative,low-cost marketing efforts to attract customer attention?

A)Trade promotion
B)Guerrilla marketing
C)Creative selling
D)Institutional marketing

Question 11

Top Games Inc.signs professional basketball players and footballers to promote its products.Top Games is using sports stars to increase sales by enhancing the public's _____demand for its brand.

A)secondary
B)selective
C)primary
D)marketplace

Question 12

Which of these involves is the marketing of products or services using channels such as mobile phones and social media marketing to reach consumers?

A)Trade promotion
B)Guerrilla marketing
C)Digital marketing
D)Institutional marketing

Question 13

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?

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

Question 14

Examples of _____ are advertising,sales promotion,direct marketing,and public relations.

A)order processing
B)personal selling
C)nonpersonal selling
D)creative selling

Question 15

A major portion of the U.S.advertising is designed to

A)accentuate product cost.
B)stimulate pork demand.
C)provide information.
D)differentiate products.

Question 16

ABC Company includes an instant coupon as part of its product's package that gives buyers a discount on the product's retail price.What is the company attempting to do?

A)Increase sales
B)Provide negative information about its competitors
C)Stabilize sales by employing personal selling
D)Differentiate the product

Question 17

Which strategy focuses on customer needs to create a unified and seamless promotional message in a company's ads,in-store displays,product samples,and presentations by company sales representatives?

A)Integrated marketing communications
B)Breakeven analysis
C)Cooperative advertising
D)Distribution

Question 18

_____ refers to the function of informing,persuading,and influencing a purchase decision.

A)Breakeven analysis
B)Promotions
C)Missionary selling
D)Distribution

Question 19

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

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

Question 20

Integrated marketing communications would include all of the following EXCEPT

A)direct mail.
B)sales promotions.
C)public relations.
D)distribution.

Question 21

Sales personnel employed by companies,such as IBM and Microsoft,who offer technical assistance through consulting in order to promote goodwill for their employers are primarily involved in

A)missionary selling.
B)creative selling.
C)nonpersonal selling.
D)order processing.

Question 22

Bike Well,a leading manufacturer of exercise bicycles ran a full-page advertisement in a health magazine differentiating the price of its bicycle with that of a leading competitor.The manufacturer is using

A)comparative advertising.
B)reminder-oriented advertising.
C)a pushing strategy.
D)advocacy advertising.

Question 23

The goal of_____ advertising is to maintain awareness of the usefulness of a product.

A)advocacy
B)comparative
C)persuasive
D)reminder-oriented

Question 24

Compserve Inc.a computer manufacturer,is offering $150 cash back on the purchase of a computer.This is an example of

A)specialty advertising.
B)a rebate.
C)a sample.
D)a premium.

Question 25

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

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

Question 26

Caf-All,a coffee shop,uses _____ advertising when it tells people that "hard-working" people prefer its coffee over the coffee sold by its competitor,Moon-Cafe.

A)comparative
B)informative
C)reminder-oriented
D)corporate

Question 27

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

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

Question 28

Television is an attractive advertising medium because it

A)is relatively inexpensive.
B)offers a constantly growing network audience.
C)offers mass coverage and flexibility.
D)provides instant feedback that can be used to measure effectiveness.

Question 29

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

A)twice
B)almost
C)five to ten times
D)over twenty times

Question 30

Alberto,a public relations manager of GBS bank,creates an advertisement that explains how ATX bank has positively influenced the economy of his country.Alberto has used _____ advertising.

A)institutional
B)cause
C)product
D)corporate

Question 31

Companies typically prefer sweepstakes to games or contests because

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 32

Trade promotion is

A)often used to promote goods or services to ultimate consumers.
B)used to promote goods or services to marketing intermediaries.
C)used to increase investments at the manufacturers' facilities.
D)only used to build goodwill.

Question 33

Informative advertising is most apt to be used in which stage of the product life cycle?

A)The growth stage
B)The maturity stage
C)The introductory stage
D)The decline stage

Question 34

Crabs & Fish,a seafood restaurant,provides free drinks with each meal.Crabs & Fish is using _____ to promote its sales.

A)premiums
B)samples
C)rebates
D)coupons

Question 35

A disadvantage of using _____ as an advertising medium is their short lifespan.

A)magazines
B)newspapers
C)outdoor ads
D)internet ads

Question 36

Companies that provide _____ for NASCAR teams are eager to spend millions in exchange for a direct association with the biggest spectator sport in the United States.

A)public relations
B)sponsorships
C)specialty advertising
D)product advertising

Question 37

Which advertising is also called advocacy advertising?

A)Institutional
B)Cause
C)Product
D)Corporate

Question 38

________ advertising involves messages that promote concepts,ideas,philosophies,or goodwill for industries,companies,organizations,or government entities.

A)Institutional
B)Cause
C)Product
D)Corporate

Question 39

Which 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?

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

Question 40

The Community Credit Union,through its direct-mail promotion,encourages its members to write letters to members of Congress asking them to pass legislation favorable to credit unions.Such promotion is a form of _____ advertising.

A)advocacy
B)public
C)institutional
D)comparative

Question 41

Jill and Jack have had an in-ground swimming pool installed in their back yard.About one week after the installation,the salesperson that facilitated the installation telephoned and asked if everything about the pool met with their expectations.The salesperson is

A)conducting a follow-up.
B)trying to get a repeat order.
C)prospecting.
D)overcoming objections.

Question 42

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

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

Question 43

Supriya is a marketing manager of a bank who regularly sends materials to various companies to participate in credit card promotions.Supriya is employing a _____ strategy.

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

Question 44

Cassandra runs a furniture store.A couple in her store tells her they're impressed with a particular living room couch.Cassandra should

A)show them a more expensive model.
B)persuade them to buy furniture for their entire home.
C)point out less-than-stellar aspects of the model.
D)attempt to close the sale.

Question 45

The use of literature and unusual visual aids is part of the _____stage of the sales process.

A)approach
B)demonstration
C)closing
D)qualifying

Question 46

Volume objectives base pricing decisions on

A)image goals and status quo pricing.
B)supply and demand.
C)market share.
D)breakeven analysis.

Question 47

Although a salesperson's work can vary significantly from one company to another,it usually involves a mix of creative selling,missionary selling,and

A)personal selling.
B)product samples.
C)order processing.
D)indirect selling.

Question 48

Salespeople explain to marketing intermediaries why they should carry particular merchandise,usually supported by

A)corporate financing.
B)nonpersonal selling.
C)publicity stunts.
D)offers of special discounts.

Question 49

Red Dragon Computers Inc.a computer manufacturer,provides inner city schools with free computers and wireless Internet access.This is an example of

A)rebates that support advertising.
B)public relations.
C)personal selling.
D)creative selling.

Question 50

_____ achieves a nonpersonal stimulation of demand for an organization by unpaid placement of information.

A)Publicity
B)Specialty advertising
C)Point-of-purchase advertising
D)Cause advertising

Question 51

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.

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

Question 52

When one company tries to compete with or match its competitor's rates,it engages in

A)nonpersonal selling.
B)personal selling.
C)prestige pricing.
D)price wars.

Question 53

Marco is a sales executive for an office supply start-up,and his job includes giving frequent demonstrations to prospective clients and business professionals.When a prospective client representative finds fault with the company's printer,Marco should use this situation as a chance to

A)show positive feedback received from other clients for the printer.
B)extend the presentation and answer questions.
C)determine if the prospect has the ability to pay for the machine.
D)propose alternative purchases.

Question 54

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

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 55

A pushing promotional strategy is

A)designed to promote one item at a time and place it near the location of an actual purchase decision.
B)designed to encourage consumers to ask for a specific product even if a retailer does not carry it.
C)primarily used when goods or services are marketed to the ultimate consumer.
D)designed to market a product,product line,or service to wholesalers and retailers.

Question 56

ABC Company wants to increase its profitability.Which of the following would be inconsistent with the company's objective?

A)Operate more efficiently
B)Maintain price while increasing the size or amount of the product
C)Reduce costs while maintaining the quality of the product
D)Raise prices while increasing the quality of the product

Question 57

The salesperson's task of identifying potential customers is known as

A)follow-up.
B)approach.
C)demonstration.
D)prospecting.

Question 58

What should a firm do if it is too difficult or too expensive to have salespeople meet all potential customers in person?

A)Use telemarketing
B)Engage in missionary selling
C)Meet prospects in a central location
D)Set up a focus group

Question 59

The process of finalizing a sale is part of the _____ stage of the sales process.

A)approach
B)presentation
C)closing
D)demonstration

Question 60

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

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

Question 61

Bassetts,a large national supermarket chain,bases pricing decisions on market share and the percentage of a market controlled by a certain product.Bassetts bases its pricing decisions on

A)volume objectives.
B)profitability objectives.
C)prestige objectives.
D)breakeven analysis.

Question 62

Which of the following pricing objectives will have the most influence on a luxury watchmaker's pricing strategy?

A)Profitability
B)Prestige
C)Meeting the competition
D)Volume

Question 63

Wear All,a T-shirt company,is conducting a breakeven analysis on unbleached cotton tops.Fixed costs are $100,000 and the per-unit contribution to fixed costs is $20.To break even,the company must sell _____ units.

A)20,000
B)5,000
C)500
D)200

Question 64

Soltex Inc.,a home products manufacturer,is introducing a new paper coffee filter at a dramatically reduced cost.Soltex is entering a market already saturated with stiff competition.Which pricing strategy will enable Soltex to achieve market recognition?

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

Question 65

Assume a product costs $5.The variable cost per unit is currently $4,and the fixed cost is $25,000.If the company can alter its production method such that the variable costs fall to $3.50 and the fixed costs rise to $30,000,what will happen to the breakeven point?

A)It will rise and fall later.
B)It will rise.
C)It will remain the same.
D)It will fall.

Question 66

Competitive pricing focuses on

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

Question 67

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

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

Question 68

Which of the following statements about price and quality is supported by research?

A)The higher the price,the greater the sales volume.
B)Consumers' perception of product quality is related closely to an item's price.
C)Perception of quality has no relationship to price.
D)Quality and price always go hand-in-hand.

Question 69

Motel Plus,a motel chain,utilizes a pricing strategy of maintaining continuous minimum prices rather than relying on sales.This strategy is an example of _____ pricing.

A)skimming
B)psychological
C)everyday low
D)penetration

Question 70

A-1 Internation Company adds several features to one of its products and reduces the product's price.What is most likely to be the company's objective?

A)To reduce turnover rate
B)To meet competition
C)To increase the prestige of the product
D)To decrease the product's market fluctuation rate

Question 71

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

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

Question 72

In breakeven analysis,total cost is composed of

A)total sales minus expenses.
B)variable costs minus fixed costs.
C)price divided by number of units sold.
D)total variable costs and total fixed costs.

Question 73

Business costs that change with the level of production are called _____ costs.

A)inflexible
B)fixed
C)variable
D)production

Question 74

Setting a price relatively high compared to similar goods and then gradually lowering it is a pricing strategy called _____ pricing.

A)penetration
B)skimming
C)cost-based
D)psychological

Question 75

Bariffs Inc.and Trell Inc.two major oil companies,are located directly across the street from one another.Bariffs lowers its price for regular unleaded oil by 5 cents,and Trell quickly follows suit.What pricing objective is Trell using?

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

Question 76

Black & White,a Jazz club,is conducting a breakeven analysis to determine how many tickets it must sell at $20 each to break even on the Jazz Fest,a program conducted by it.Fixed costs are $4,000,and the variable cost per person is $10.To break even,Black & White must sell _____ tickets.

A)800
B)500
C)400
D)80

Question 77

Meat & Buns,a burger restaurant,recently announced plans to drop the price of its double cheese burger from $1.99 to just 99 cents in order to match its competitor's pricing.This is an example of a

A)volume strategy.
B)prestige objective.
C)profitability strategy.
D)price war.

Question 78

If you did a breakeven analysis for your firm,it would be possible for you to show to your management the point at which

A)the level of sales that will cover all of the company's costs.
B)the firm would not make a profit if it sold additional units.
C)profits would be maximized.
D)the firm's fixed costs would climb sharply.

Question 79

In breakeven analysis,the costs that change with the level of production are considered _____ costs.

A)variable
B)recoverable
C)labor
D)fixed

Question 80

Mountain City,a local bakery wanted to attract more customers,so it began offering a dozen bagels for $5 every Wednesday.The bakery is utilizing _____ pricing to increase its volume of sales.

A)skimming
B)odd
C)everyday low
D)discount