Ch.13 Test Bank Docx Promotion And Pricing Strategies - Contemporary Business 18e | Test Bank by Louis E. Boone by Louis E. Boone. DOCX document preview.
Package Title: Chapter 13, Testbank
Course Title: Boone, 18e
Chapter Number: 13
Question type: Multiple Choice
1) Through _____, marketers coordinate all promotional activities to execute a unified, customer-focused promotional strategy.
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
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
2) A _____ is a combination of personal selling and nonpersonal selling to meet the needs of a company’s target customers and communicate its message to them.
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
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
3) _____promotes a good or service whose benefits are not readily apparent or whose purchase decision requires a close analysis of alternatives.
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
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
4) _____ involves messages that promote concepts, ideas, philosophies, or goodwill for industries, companies, organizations, or government entities.
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
Difficulty: Easy
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
5) _____ consists of displays or demonstrations that promote products when and where consumers buy them.
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
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
6) A(n) _____ relies on personal selling to market an item to wholesalers and retailers in a company’s distribution channels.
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
Difficulty: Easy
Learning Objective 1: 13.4
Section Reference 1: Describe pushing and pulling strategies.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
7) In _____, marketers share the costs of local advertising of their company’s product with channel partners.
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
Difficulty: Easy
Learning Objective 1: 13.4
Section Reference 1: Describe pushing and pulling strategies.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
8) _____ bases pricing decisions on market share, the percentage of the market controlled by a certain product or company.
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
Difficulty: Easy
Learning Objective 1: 13.5
Section Reference 1: Discuss the pricing objectives in the marketing mix.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
9) With _____, businesses drop prices for a set period of time to attract more customers during that period of time.
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
Difficulty: Easy
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
10) A(n) _____ strategy sets an intentionally high price relative to the prices of competing products.
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
Difficulty: Easy
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
11) Businesses often conduct a(n) _____ to determine the minimum sales volume a product must generate at a certain price level to cover all costs.
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
Difficulty: Easy
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
12) Retailers commonly use _____ because they believe consumers favor amounts that sound less than they really are.
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
Difficulty: Easy
Learning Objective 1: 13.7
Section Reference 1: Discuss consumer perceptions of prices.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
13) A _____ pricing strategy sets a low price as a major marketing weapon.
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
Difficulty: Easy
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
Question type: Essay
14) Describe how integrated marketing communications relate to a firm’s overall promotional strategy.
Solution: In practicing integrated marketing communications (IMC), a company coordinates all promotional activities to execute a unified, customer-focused promotional strategy in a company’s ads, in-store displays, product samples, and presentations by company sales representatives. IMC identifies consumer needs and then shows how a company’s products meet those needs. Marketers select the promotional media that best target and reach customers. Teamwork and careful promotional planning to coordinate IMC strategy components are important elements of these programs.
Difficulty: Medium
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
15) Identify the components of the promotional mix. Outline the advantages of the components of the promotional mix.
Solution: The promotional mix consists of two components—personal and nonpersonal selling—that marketers combine to meet the needs of their company’s target customers and effectively and efficiently communicate its message to them. Personal selling is the most basic form of promotion: a direct person-to-person promotional presentation to a potential buyer. The buyer–seller communication can occur during a face-to-face meeting or via telephone, videoconference, or Skype. Salespeople represent their company with the goal of promoting and selling its products and services. Nonpersonal selling consists of advertising, sales promotion, direct marketing, and public relations. Advertising is the best-known form of nonpersonal selling, but sales promotion accounts for about half of these marketing expenditures. Spending for sponsorships, which involves marketing messages delivered in association with another activity such as a golf tournament or a benefit concert, is on the rise as well.
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
16) List the two basic types of advertising and provide examples for both.
Solution: The two basic types of advertising are product and institutional advertisements. An example of product advertising would include messages designed to sell a particular product, such as Band-Aids, NyQuil cold medicine, or Kraft macaroni and cheese. Institutional advertising promotes concepts, ideas, philosophies, or goodwill for industries, companies, organizations, or government entities. Examples include "Walk for the Cure" for Juvenile Diabetes or a beer company promoting safe drinking.
Difficulty: Easy
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
17) Illustrates the concept of promotional mix.
Solution: The promotional mix consists of two components—personal and nonpersonal selling—that marketers combine to meet the needs of their company’s target customers and effectively and efficiently communicate its message to them. Personal selling is the most basic form of promotion: a direct person-to-person promotional presentation to a potential buyer. Nonpersonal selling consists of advertising, sales promotion, direct marketing, and public relations. Advertising is the best-known form of nonpersonal selling.
Difficulty: Medium
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
18) What is sales promotion? Give some examples of common sales promotion techniques.
Solution: Sales promotion consists of types of promotion such as coupons, product samples, and rebates that support advertising and personal selling. Both retailers and manufacturers use sales promotions to offer consumers extra incentives to buy. Beyond the short-term advantage of increased sales, sales promotions can also help marketers build brand equity and enhance customer relationships. Examples include samples, coupons, contests, displays, trade shows, and dealer incentives.
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
19) Describe the circumstances in which a company is more likely to emphasize personal selling rather than advertising.
Solution: Personal selling is often used in the following circumstances: 1. Customers are relatively few in number and geographically concentrated. 2. The product is technically complex, involves trade-ins, or requires special handling. 3. The product carries a relatively high price. 4. The product moves through direct-distribution channels.
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
20) Explain advertising specialties.
Solution: Pens, T-shirts, or refrigerator magnets imprinted with a business name that one would receive for free are examples of specialty advertising or advertising specialties. This type of sales promotion involves the gift of useful merchandise carrying the name, logo, or slogan of a profit-seeking business or a not-for-profit organization. Because those products are useful and sometimes personalized with recipients’ names, people tend to keep and use them, giving advertisers repeated exposure. Originally designed to identify and create goodwill for advertisers, advertising specialties now generate sales leads and develop traffic for stores and trade show exhibitors. Like premiums, these promotions should reinforce the brand’s image and its relationship with the recipient.
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
21) Explain why companies and consumers often prefer sweepstakes to contests or games as a form of promotion.
Solution: Sweepstakes choose winners by chance and require no product purchase. Companies like sweepstakes because they are inexpensive to run and determine the number of winners from the beginning. Consumers typically prefer sweepstakes because games and contests require more effort.
Difficulty: Medium
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
22) What are the differences between pushing strategies and pulling strategies?
Solution: A pushing strategy relies on personal selling to market an item to wholesalers and retailers in a company’s distribution channels. So companies promote the product to members of the marketing channel, rather than end users. Salespeople explain to marketing intermediaries why they should carry particular merchandise, usually supported by offers of special discounts and promotional materials. A pulling strategy attempts to promote a product by generating consumer demand for it, primarily through advertising and sales promotion appeals. Potential buyers will seek out the item and perhaps become loyal to the brand— thereby pulling it through the distribution channel. Retailers and consumer goods manufacturers typically use a pulling strategy to promote their products.
Difficulty: Easy
Learning Objective 1: 13.4
Section Reference 1: Describe pushing and pulling strategies.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
23) Describe profitability objectives. How do some companies maintain prices while still increasing profitability?
Solution: Profitability objectives are the most common objectives included in the strategic plans of most companies. Marketers know that profits are the revenue the company brings in, minus its expenses. Usually a big difference exists between revenue and profit. Automakers try to produce at least one luxury vehicle for which they can charge $50,000 or more instead of relying entirely on the sale of $15,000 to $25,000 models. Some companies maximize profits by reducing costs rather than through higher prices. Companies can maintain prices and increase profitability by operating more efficiently or by modifying the product to make it less costly to produce. One strategy is to maintain a steady price while reducing the size or amount of the product in the package, which is what ice-cream maker Haagen-Dazs did when it reduced its containers from 16 oz. to 14 oz.
Difficulty: Easy
Learning Objective 1: 13.5
Section Reference 1: Discuss the pricing objectives in the marketing mix.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
24) Explain how marketers conduct breakeven analyses.
Solution: Breakeven analysis is a method of determining the minimum sales volume needed at a certain price to cover costs. It involves a consideration of how revenues and costs are related to sales volume. Marketers can use this type of analysis to determine the profits or losses likely to result from different prices, which helps determine the most appropriate price for a product.
Difficulty: Medium
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
25) Find the breakeven point in terms of both units and in dollars for following information: 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.
Solution: $480,000/$2 = 240,000 =breakeven point in units$240,000 × $10 = $2,400,000 = breakeven point in dollars
Difficulty: Medium
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
26) Describe everyday low pricing (EDLP).
Solution: Everyday low pricing (EDLP) is a strategy devoted to maintaining continuous low prices rather than relying on short-term price-cutting tactics such as cents-off coupons, rebates, and special sales. This strategy has been used successfully by retailers such as Walmart and Lowe’s to consistently offer low prices to consumers; manufacturers also use EDLP to set stable prices for retailers.
Difficulty: Easy
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
27) Describe the relationship between price and quality.
Solution: In general, most consumers equate higher prices with increased quality. This relationship appears to hold true over a wide range of prices. However, consumers also view extreme prices as being either too expensive or too cheap, and thus have less credibility. The price–quality relationship can critically affect a company’s pricing strategy.
Difficulty: Easy
Learning Objective 1: 13.7
Section Reference 1: Discuss consumer perceptions of prices.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
Question type: Multiple Choice
28) 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.
Difficulty: Medium
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Application
29) 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
Difficulty: Medium
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Application
30) 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
Difficulty: Medium
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Application
31) Integrated marketing communications would include all of the following EXCEPT
a) direct mail.
b) sales promotions.
c) public relations.
d) distribution.
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
32) ______ is the most basic form of promotion.
a) Direct mail
b) Personal selling
c) Public relations
d) Distribution
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
33) 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
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
34) _____ refers to the function of informing, persuading, and influencing a purchase decision.
a) Breakeven analysis
b) Promotions
c) Missionary selling
d) Distribution
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
35) ______ is the best-known form of nonpersonal selling.
a) Direct mail
b) Personal selling
c) Advertising
d) Distribution
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
36) Examples of _____ are advertising, sales promotion, direct marketing, and public relations.
a) order processing
b) personal selling
c) nonpersonal selling
d) creative selling
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
37) ______ 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
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
38) 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
Difficulty: Hard
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Application
39) 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.
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
40) 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
Difficulty: Medium
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Application
41) 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.
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
42) 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
Difficulty: Hard
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Application
43) 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
Difficulty: Hard
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Application
44) 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.
Difficulty: Hard
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Application
45) 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
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
46) 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
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
47) 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.
Difficulty: Easy
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
48) 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
Difficulty: Easy
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
49) 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
Difficulty: Hard
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Application
50) 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
Difficulty: Hard
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Application
51) ________ 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
Difficulty: Easy
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
52) Which advertising is also called advocacy advertising?
a) Institutional
b) Cause
c) Product
d) Corporate
Difficulty: Easy
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
53) 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
Difficulty: Hard
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Application
54) 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
Difficulty: Easy
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
55) 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.
Difficulty: Medium
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Application
56) The goal of_____ advertising is to maintain awareness of the usefulness of a product.
a) advocacy
b) comparative
c) persuasive
d) reminder-oriented
Difficulty: Easy
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
57) 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.
Difficulty: Medium
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
58) A disadvantage of using _____ as an advertising medium is their short lifespan.
a) magazines
b) newspapers
c) outdoor ads
d) internet ads
Difficulty: Easy
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
59) 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
Difficulty: Easy
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
60) 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.
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
61) 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.
Difficulty: Medium
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Application
62) 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.
Difficulty: Hard
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Application
63) 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.
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
64) Businesses often spend _____ as much on personal selling as on advertising.
a) twice
b) almost
c) five to ten times
d) over twenty times
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
65) 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
Difficulty: Hard
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Application
66) 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.
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
67) 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.
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
68) 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.
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
69) 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
Difficulty: Medium
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
70) The salesperson's task of identifying potential customers is known as
a) follow-up.
b) approach.
c) demonstration.
d) prospecting.
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
71) 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
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
72) 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.
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
73) 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
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
74) 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.
Difficulty: Hard
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Application
75) The process of finalizing a sale is part of the _____ stage of the sales process.
a) approach
b) presentation
c) closing
d) demonstration
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
76) 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.
Difficulty: Hard
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Application
77) 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.
Difficulty: Medium
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Application
78) 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.
Difficulty: Medium
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Application
79) _____ 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
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
80) 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.
Difficulty: Easy
Learning Objective 1: 13.4
Section Reference 1: Describe pushing and pulling strategies.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
81) 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.
Difficulty: Easy
Learning Objective 1: 13.4
Section Reference 1: Describe pushing and pulling strategies.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
82) 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.
Difficulty: Easy
Learning Objective 1: 13.4
Section Reference 1: Describe pushing and pulling strategies.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
83) 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
Difficulty: Medium
Learning Objective 1: 13.4
Section Reference 1: Describe pushing and pulling strategies.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
84) 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
Difficulty: Hard
Learning Objective 1: 13.4
Section Reference 1: Describe pushing and pulling strategies.
Standard 1: AACSB || Analytic
Bloomcode: Application
85) Volume objectives base pricing decisions on
a) image goals and status quo pricing.
b) supply and demand.
c) market share.
d) breakeven analysis.
Difficulty: Easy
Learning Objective 1: 13.5
Section Reference 1: Discuss the pricing objectives in the marketing mix.
Standard 1: AACSB || Analytic
Bloomcode: Application
86) 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
Difficulty: Medium
Learning Objective 1: 13.5
Section Reference 1: Discuss the pricing objectives in the marketing mix.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
87) 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.
Difficulty: Medium
Learning Objective 1: 13.5
Section Reference 1: Discuss the pricing objectives in the marketing mix.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
88) 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
Difficulty: Medium
Learning Objective 1: 13.5
Section Reference 1: Discuss the pricing objectives in the marketing mix.
Standard 1: AACSB || Analytic
Bloomcode: Application
89) 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.
Difficulty: Easy
Learning Objective 1: 13.5
Section Reference 1: Discuss the pricing objectives in the marketing mix.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
90) 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.
Difficulty: Medium
Learning Objective 1: 13.5
Section Reference 1: Discuss the pricing objectives in the marketing mix.
Standard 1: AACSB || Analytic
Bloomcode: Application
91) 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
Difficulty: Medium
Learning Objective 1: 13.5
Section Reference 1: Discuss the pricing objectives in the marketing mix.
Standard 1: AACSB || Analytic
Bloomcode: Application
92) 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.
Difficulty: Easy
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
93) 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.
Difficulty: Easy
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
94) In breakeven analysis, the costs that change with the level of production are considered _____ costs.
a) variable
b) recoverable
c) labor
d) fixed
Difficulty: Easy
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
95) 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.
Difficulty: Hard
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
96) Business costs that change with the level of production are called _____ costs.
a) inflexible
b) fixed
c) variable
d) production
Difficulty: Easy
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
97) 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.
Difficulty: Medium
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
98) 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
Difficulty: Medium
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Application
99) 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
Difficulty: Medium
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Application
100) 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
Difficulty: Easy
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
101) 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
Difficulty: Medium
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Application
102) 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
Difficulty: Hard
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Application
103) 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
Difficulty: Hard
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Application
104) Competitive pricing focuses on
a) the marketing mix.
b) skimming pricing.
c) variable pricing.
d) penetration pricing.
Difficulty: Easy
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
105) 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
Difficulty: Medium
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Application
106) 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
Difficulty: Medium
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Application
107) 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.
Difficulty: Medium
Learning Objective 1: 13.7
Section Reference 1: Discuss consumer perceptions of prices.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
108) D-base, an audio equipment store, wants to price one of its products, a $200 turntable, in such a way that its customers would perceive the turntable's quality to be very high. Which of the following pricing must it use?
a) $203
b) $202
c) $202.22
d) $202.11
Difficulty: Hard
Learning Objective 1: 13.7
Section Reference 1: Discuss consumer perceptions of prices.
Standard 1: AACSB || Analytic
Bloomcode: Application
109) Marcello is allowed to purchase a reasonably priced notebook computer for graduation. He sees one at Excel Electronics for $999.99 and calls his parents to assure them the computer costs “less than a thousand.” Both Marcello and Excel Electronics are using _____ to downplay the price of the computer.
a) cost-based pricing
b) personal selling
c) price fixing
d) odd pricing
Difficulty: Medium
Learning Objective 1: 13.7
Section Reference 1: Discuss consumer perceptions of prices.
Standard 1: AACSB || Analytic
Bloomcode: Application
110) Sophia owns an upscale accessory boutique and drastically reduced the price of some earrings to make room for new inventory. When the earrings didn’t sell in the “discount basket,” she put them back on the shelf at regular price and they sold within a month. Which of the following relationships explains her customers’ perception of price?
a) Prestige–value
b) Price–prestige
c) Price–quality
d) Value–quality
Difficulty: Hard
Learning Objective 1: 13.7
Section Reference 1: Discuss consumer perceptions of prices.
Standard 1: AACSB || Analytic
Bloomcode: Application
111) South Spice, a restaurant, makes all its menu items from scratch and uses authentic Mexican herbs in its dishes. As a result of its focus on using specialty ingredients, prices are 75% higher than its competitors. South Spice knows that
a) the higher the price, the better its perceived quality.
b) people always pay more for items that are unfamiliar to them.
c) people think that the competitor’s food is priced too low.
d) experience has taught consumers to ignore prices.
Difficulty: Easy
Learning Objective 1: 13.7
Section Reference 1: Discuss consumer perceptions of prices.
Standard 1: AACSB || Analytic
Bloomcode: Application
112) Which of the following is an example of odd pricing?
a) A television set that costs $119.99
b) A mobile phone that costs $100
c) A dress that costs $17
d) A pair of shoes that costs $10.2
Difficulty: Easy
Learning Objective 1: 13.7
Section Reference 1: Discuss consumer perceptions of prices.
Standard 1: AACSB || Analytic
Bloomcode: Application
113) _____ is often used when there are few or no close competitors.
a) Skimming pricing
b) Penetration pricing
c) Prestige pricing
d) Odd pricing
Difficulty: Easy
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
114) When ABC Wafers, a wafer-producing company decreases the quantity of wafers in the packet but retains the volume of the original packet, the company is trying to increase its revenues through
a) nonpersonal selling.
b) prestige pricing.
c) profitability objectives.
d) volume objectives.
Difficulty: Easy
Learning Objective 1: 13.5
Section Reference 1: Discuss the pricing objectives in the marketing mix.
Standard 1: AACSB || Analytic
Bloomcode: Application
115) Which of the following can help create product prestige?
a) High quality
b) Additional rebates
c) Fixed costs
d) Limited availability
Difficulty: Easy
Learning Objective 1: 13.5
Section Reference 1: Discuss the pricing objectives in the marketing mix.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
116) Penetration pricing assumes that
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.
Difficulty: Easy
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
117) When ridesharing service Uber employs surge pricing, it is implementing a(n)
a) volume objective.
b) prestige pricing structure.
c) market-demand pricing structure.
d) profitability objective.
Difficulty: Easy
Learning Objective 1: 13.5
Section Reference 1: Discuss the pricing objectives in the marketing mix.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
118) Which is the last step in the seven-step sales process?
a) Close the sale
b) Follow-up
c) Demonstration
d) Prospecting and qualifying
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
119) AB Chocolates, a chocolate manufacturing company places display bins of their products at the entry and exit points of a convenience store. The company is using the _____ strategy.
a) trade promotion
b) personal selling
c) missionary selling
d) point-of-purchase advertising
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Application
120) A sales executive working for a club identifies someone who frequently visits spa resorts on vacation as a prospective customer. He explains that the club has spa facilities and offers exclusive deals to its members. He compares the cost of membership with that of other clubs and the differences in facilities. In this scenario, the sales executive is implementing the _____ strategy.
a) creative selling
b) missionary selling
c) nonpersonal selling
d) consultative selling
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Application
121) When automakers offer special price reductions on all their automobiles during holiday shopping seasons, they are using the _____ strategy.
a) discount pricing
b) prestige pricing
c) odd pricing
d) skimming pricing
Difficulty: Easy
Learning Objective 1: 13.6
Section Reference 1: Outline pricing strategies.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
Question type: True/False
122) By creating unified promotional messages, an integrated marketing communications strategy focuses on customer needs.
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
123) A promotional mix consists of two major components—personal selling and nonpersonal selling.
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
124) The fundamental purpose of promotion is to persuade and influence customers to purchase a product.
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
125) Marketers that utilize integrated marketing communications, to gain a competitive advantage, should always narrow their focus on promotional strategies.
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
126) Manufacturers of B2B products typically spend more on personal selling than on advertising.
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
127) Advertising is a form of nonpersonal selling.
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
128) A major portion of the U.S. advertising is science-oriented.
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
129) Increasing sales volume is the most common objective of a promotional strategy.
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
130) To establish unique places for their products in the minds of consumers, marketers use positioning.
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
131) A promotional mix often incorporates more personal selling components than nonpersonal selling components.
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
132) Many marketers pay product placement fees to promote their products in television shows or movies.
Difficulty: Easy
Learning Objective 1: 13.1
Section Reference 1: Discuss integrated marketing communications (IMC).
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
133) Advertising is a global activity.
Difficulty: Easy
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
134) Advertising is always a form of paid personal communication.
Difficulty: Easy
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
135) Television ads by Logic Insurance, an automobile insurance company, warning drivers against texting while driving are a type of institutional advertisement.
Difficulty: Medium
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Application
136) An ad claiming that Brand A works better than Brand B is an example of reminder-oriented advertising.
Difficulty: Medium
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
137) Persuasive advertising is only used during a product's introductory period in order to improve the competitive status of the product.
Difficulty: Easy
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
138) Low cost is the key advantage of television advertising.
Difficulty: Easy
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
139) One advantage of advertising in magazines is that they allow targeted messages.
Difficulty: Easy
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
140) Viral advertising is often quite expensive.
Difficulty: Easy
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
141) Infomercials are typically 30-minute marketing programs that resemble regular television programs, but they are devoted to selling goods or services.
Difficulty: Easy
Learning Objective 1: 13.2
Section Reference 1: Summarize the different types of advertising.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
142) Coupons offer cash back to consumers who mail in required proofs of purchase.
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
143) McDonalds including a toy in each Happy Meal purchase is an example of a premium.
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
144) Research indicates that the use of Internet coupons is on the decline.
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
145) Trade shows are different than major trade promotions.
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
146) For products that are technically complex, personal selling is often used.
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
147) Order processing involves identifying customer needs, pointing them out to customers, and completing orders.
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
148) Missionary selling is used for promoting goodwill of a company or providing technical or operational assistance to customers.
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
149) Creative selling involves a persuasive type of promotional presentation.
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
150) Trade promotion is sales promotion geared to marketing intermediaries rather than to consumers.
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
151) A sales representative who calls people at home is practicing inbound telemarketing.
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
152) To identify potential customers is the first step in sales processes is.
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
153) Veronica, the service manager for a local Nissan dealer, makes a point of sending out letters to all customers asking whether or not they are satisfied with their purchase. Veronica is conducting a follow-up.
Difficulty: Medium
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Application
154) Public relations is more important for not-for-profit organizations than for general corporations.
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
155) Public relations only refers to an organization's paid communications.
Difficulty: Easy
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
156) A recent newspaper article reported that the CEO of Well-Built Corporation has been accused of accounting fraud. This article is an example of publicity.
Difficulty: Medium
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Application
157) A company’s employee volunteers clean up a neighborhood playground. In the process, employees hand out free company product samples. This is an example of a publicity campaign.
Difficulty: Medium
Learning Objective 1: 13.3
Section Reference 1: Outline sales promotion.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
158) A pulling strategy relies less on advertising than does a pushing strategy.
Difficulty: Easy
Learning Objective 1: 13.4
Section Reference 1: Describe pushing and pulling strategies.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
Document Information
Connected Book
Contemporary Business 18e | Test Bank by Louis E. Boone
By Louis E. Boone
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