Complete Test Bank Ch14 Promotion And Pricing Strategies 372 - Contemporary Business 19e | Practice Test Bank by Louis E. Boone. DOCX document preview.
Package Title: Chapter 14, Testbank
Course Title: Boone, Contemporary Business, 19th Edition
Chapter Number: 14
Question type: Multiple Choice
1) Through _____, marketers coordinate all promotional activities to execute a unified, customer-focused promotional strategy.
a) promotional mix
b) Institutional advertising
c) penetration
d) integrated marketing communications
Difficulty: Easy
Learning Objective 1: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
2) A(n) _____ 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) promotional mix
b) institutional advertising campaign
c) creative selling campaign
d) integrated marketing communication plan
m) odd pricing
Difficulty: Easy
Learning Objective 1: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
3) _____promotes a good or service whose benefits are not readily apparent or whose purchase decision requires a close analysis of alternatives.
a) Promotional mix
b) Institutional advertising
c) Creative selling
d) Point-of-purchase advertising
Difficulty: Easy
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
4) _____ involves messages that promote concepts, ideas, philosophies, or goodwill for industries, companies, organizations, or government entities.
a) Promotional mix
b) Institutional advertising
c) Creative selling
d) Integrated marketing communications
Difficulty: Easy
Learning Objective 1: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
5) _____ consists of displays or demonstrations that promote products when and where consumers buy them.
a) Promotional mix
b) Institutional advertising
c) Creative selling
d) Point-of-purchase advertising
Difficulty: Easy
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
6) A(n) _____ relies on personal selling to market an item to wholesalers and retailers in a company’s distribution channels.
a) promotional mix
b) institutional advertising
c) creative selling
d) pushing strategy
Difficulty: Easy
Learning Objective 1: 14-04: Describe pushing and pulling strategies.
Section Reference 1: Pushing and Pulling Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
7) In _____, marketers share the costs of local advertising of their company’s product with channel partners.
a) promotional mix
b) institutional advertising
c) point-of-purchase advertising
d) cooperative advertising
Difficulty: Easy
Learning Objective 1: 14-04: Describe pushing and pulling strategies.
Section Reference 1: Pushing and Pulling Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
8) _____ base(s) pricing decisions on market share, the percentage of the market controlled by a certain product or company.
a) Breakeven analysis
b) Volume objectives
c) Discount pricing
d) Skimming pricing
Difficulty: Easy
Learning Objective 1: 14-05: Discuss the pricing objectives in the marketing mix.
Section Reference 1: Pricing Objectives in the Marketing Mix
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
9) With _____, businesses drop prices for a set period of time to attract more customers during that period of time.
a) volume objectives
b) discount pricing
c) skimming pricing
d) odd pricing
Difficulty: Easy
Learning Objective 1: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
10) A(n) _____ strategy sets an intentionally high price relative to the prices of competing products.
a) volume objectives
b) skimming pricing
c) penetration
d) odd pricing
Difficulty: Easy
Learning Objective 1: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || 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) volume analysis
c) discount pricing
d) pushing strategy
Difficulty: Easy
Learning Objective 1: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
12) Retailers commonly use _____ because they believe consumers favor amounts that sound less than they really are.
a) volume objectives
b) discount pricing
c) skimming pricing
d) odd pricing
Difficulty: Easy
Learning Objective 1: 14-07: Discuss consumer perceptions of prices.
Section Reference 1: Consumer Perceptions of Prices
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
13) A _____ pricing strategy sets a low price as a major marketing weapon.
a) volume
b) discount
c) skimming
d) penetration
Difficulty: Easy
Learning Objective 1: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
14) 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: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
15) 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: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
16) 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: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
17) 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: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
18) ______ is the most basic form of promotion.
a) Direct mail
b) Personal selling
c) Public relations
d) Distribution
Difficulty: Easy
Learning Objective 1: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
19) 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: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
20) _____ refers to the function of informing, persuading, and influencing a purchase decision.
a) Breakeven analysis
b) Promotion
c) Missionary selling
d) Distribution
Difficulty: Easy
Learning Objective 1: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
21) ______ is the best-known form of nonpersonal selling.
a) Direct mail
b) Personal selling
c) Advertising
d) Distribution
Difficulty: Easy
Learning Objective 1: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
22) 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: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
23) ______ 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: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
24) 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: Medium
Learning Objective 1: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
25) 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: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
26) 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: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
27) 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: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
28) 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: Medium
Learning Objective 1: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
29) Luxcar, an automobile manufacturer, is running ads emphasizing that it offers free maintenance for one year. 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: Medium
Learning Objective 1: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
30) 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: Medium
Learning Objective 1: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
31) Which of these involves 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: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
32) 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: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
33) 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: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
34) Which form of 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: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
35) 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: Medium
Learning Objective 1: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
36) 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: Medium
Learning Objective 1: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
37) ________ 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: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
38) Which advertising is also called advocacy advertising?
a) Institutional
b) Cause
c) Product
d) Corporate
Difficulty: Easy
Learning Objective 1: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
39) 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: Medium
Learning Objective 1: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
40) 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: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
41) 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: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
42) 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: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
43) Television is an attractive advertising medium because it _____.
a) is relatively inexpensive
b) offers a constantly growing network audience
c) offers mass coverage and builds awareness
d) provides instant feedback that can be used to measure effectiveness
Difficulty: Easy
Learning Objective 1: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
44) A disadvantage of using _____ as an advertising medium is its cost.
a) magazines
b) TV
c) outdoor ads
d) internet ads
Difficulty: Easy
Learning Objective 1: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
45) 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: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
46) Companies typically prefer sweepstakes to games or contests because _____.
a) they know the number of winners in sweepstakes from the beginning
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: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
47) 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: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
48) 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: Medium
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
49) 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: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
50) 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: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
51) 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: Medium
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
52) 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: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
53) 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: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
54) 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: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
55) 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: Easy
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
56) 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: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
57) Which of the following is an example of a digital approach that companies use to identify and qualify sales prospects?
a) Focus groups
b) Social media
c) Public service messages
d) Radio announcements
Difficulty: Easy
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
58) Which stage of the sales process impacts consumer repurchase?
a) Closing
b) Approach
c) Presentation
d) Follow-up
Difficulty: Easy
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
59) 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: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Comprehension
60) 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) answer questions and explain product benefits
c) determine if the prospect has the ability to pay for the machine
d) propose alternative purchases
Difficulty: Medium
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
61) 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: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
62) 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: Medium
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
63) 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: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
64) 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: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
65) _____ 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: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
66) 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: 14-04: Describe pushing and pulling strategies.
Section Reference 1: Pushing and Pulling Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
67) In a push strategy, salespeople explain to marketing intermediaries why they should carry particular merchandise. This is usually supported by _____.
a) corporate financing
b) nonpersonal selling
c) publicity stunts
d) offers of special discounts
Difficulty: Easy
Learning Objective 1: 14-04: Describe pushing and pulling strategies.
Section Reference 1: Pushing and Pulling Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
68) 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: 14-04: Describe pushing and pulling strategies.
Section Reference 1: Pushing and Pulling Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
69) 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: 14-04: Describe pushing and pulling strategies.
Section Reference 1: Pushing and Pulling Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
70) 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: Medium
Learning Objective 1: 14-04: Describe pushing and pulling strategies.
Section Reference 1: Pushing and Pulling Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
71) 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: 14-05: Discuss the pricing objectives in the marketing mix.
Section Reference 1: Pricing Objectives in the Marketing Mix
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
72) 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: 14-05: Discuss the pricing objectives in the marketing mix.
Section Reference 1: Pricing Objectives in the Marketing Mix
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
73) 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: Easy
Learning Objective 1: 14-05: Discuss the pricing objectives in the marketing mix.
Section Reference 1: Pricing Objectives in the Marketing Mix
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
74) A-1 International 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: 14-05: Discuss the pricing objectives in the marketing mix.
Section Reference 1: Pricing Objectives in the Marketing Mix
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
75) 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: Medium
Learning Objective 1: 14-05: Discuss the pricing objectives in the marketing mix.
Section Reference 1: Pricing Objectives in the Marketing Mix
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
76) 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: 14-05: Discuss the pricing objectives in the marketing mix.
Section Reference 1: Pricing Objectives in the Marketing Mix
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
77) 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: 14-05: Discuss the pricing objectives in the marketing mix.
Section Reference 1: Pricing Objectives in the Marketing Mix
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
78) 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: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
79) 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: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
80) 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: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
81) 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: Medium
Learning Objective 1: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Analysis
82) 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: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
83) 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: Easy
Learning Objective 1: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
84) 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: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
85) 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: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
86) Setting a price relatively high compared to similar goods is a pricing strategy called _____ pricing.
a) penetration
b) skimming
c) cost-based
d) psychological
Difficulty: Easy
Learning Objective 1: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
87) 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: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
88) 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: Medium
Learning Objective 1: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
89) 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: Medium
Learning Objective 1: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
90) Competitive pricing focuses on _____.
a) the marketing mix
b) skimming pricing
c) variable pricing
d) penetration pricing
Difficulty: Easy
Learning Objective 1: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
91) 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: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
92) 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: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
93) 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: Easy
Learning Objective 1: 14-07: Discuss consumer perceptions of prices.
Section Reference 1: Consumer Perceptions of Prices
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
94) 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: Medium
Learning Objective 1: 14-07: Discuss consumer perceptions of prices.
Section Reference 1: Consumer Perceptions of Prices
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
95) 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: 14-07: Discuss consumer perceptions of prices.
Section Reference 1: Consumer Perceptions of Prices
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
96) 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: Medium
Learning Objective 1: 14-07: Discuss consumer perceptions of prices.
Section Reference 1: Consumer Perceptions of Prices
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
97) 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: Medium
Learning Objective 1: 14-07: Discuss consumer perceptions of prices.
Section Reference 1: Consumer Perceptions of Prices
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
98) 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 $10.20
Difficulty: Medium
Learning Objective 1: 14-07: Discuss consumer perceptions of prices.
Section Reference 1: Consumer Perceptions of Prices
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
99) _____ 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: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
100) 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: Medium
Learning Objective 1: 14-05: Discuss the pricing objectives in the marketing mix.
Section Reference 1: Pricing Objectives in the Marketing Mix
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
101) 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: 14-05: Discuss the pricing objectives in the marketing mix.
Section Reference 1: Pricing Objectives in the Marketing Mix
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
102) 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: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
103) 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: 14-05: Discuss the pricing objectives in the marketing mix.
Section Reference 1: Pricing Objectives in the Marketing Mix
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
104) 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: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
105) 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: Medium
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
106) 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: Medium
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
107) 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: Medium
Learning Objective 1: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
Question type: True/False
108) By creating unified promotional messages, an integrated marketing communications strategy focuses on customer needs.
Difficulty: Easy
Learning Objective 1: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
109) A promotional mix consists of two major components—personal selling and nonpersonal selling.
Difficulty: Easy
Learning Objective 1: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
110) To gain a competitive advantage, marketers that implement IMC need a broad view of promotion.
Difficulty: Easy
Learning Objective 1: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
111) Marketers that utilize integrated marketing communications, to gain a competitive advantage, should always narrow their focus on promotional strategies.
Difficulty: Easy
Learning Objective 1: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Comprehension
112) Manufacturers of B2B products typically spend more on personal selling than on advertising.
Difficulty: Easy
Learning Objective 1: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
113) Advertising is a form of nonpersonal selling.
Difficulty: Easy
Learning Objective 1: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
114) A major portion of the U.S. advertising is science-oriented.
Difficulty: Easy
Learning Objective 1: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
115) Increasing sales volume is the most common objective of a promotional strategy.
Difficulty: Easy
Learning Objective 1: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
116) To establish unique places for their products in the minds of consumers, marketers use positioning.
Difficulty: Easy
Learning Objective 1: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Comprehension
117) A promotional mix often incorporates more personal selling components than nonpersonal selling components.
Difficulty: Easy
Learning Objective 1: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Comprehension
118) Many marketers pay product placement fees to promote their products in television shows or movies.
Difficulty: Easy
Learning Objective 1: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
119) Advertising is a global activity.
Difficulty: Easy
Learning Objective 1: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
120) Advertising is always a form of paid personal communication.
Difficulty: Easy
Learning Objective 1: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
121) 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: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
122) An ad claiming that Brand A works better than Brand B is an example of reminder-oriented advertising.
Difficulty: Easy
Learning Objective 1: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Comprehension
123) 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: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Comprehension
124) Low cost is the key advantage of television advertising.
Difficulty: Easy
Learning Objective 1: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
125) One advantage of advertising in magazines is that they allow targeted messages.
Difficulty: Easy
Learning Objective 1: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
126) Viral advertising is often quite expensive.
Difficulty: Easy
Learning Objective 1: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Comprehension
127) 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: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
128) Coupons offer cash back to consumers who mail in required proofs of purchase.
Difficulty: Easy
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
129) McDonalds including a toy in each Happy Meal purchase is an example of a premium.
Difficulty: Medium
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
130) Research indicates that the use of Internet coupons is on the decline.
Difficulty: Easy
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
131) Trade shows are not a form of trade promotion.
Difficulty: Easy
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
132) For products that are technically complex, personal selling is often used.
Difficulty: Easy
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
133) Order processing involves identifying customer needs, pointing them out to customers, and completing orders.
Difficulty: Easy
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
134) Missionary selling is used for promoting goodwill of a company or providing technical or operational assistance to customers.
Difficulty: Easy
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
135) Creative selling involves a persuasive type of promotional presentation.
Difficulty: Easy
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
136) Trade promotion is sales promotion geared to marketing intermediaries rather than to consumers.
Difficulty: Easy
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
137) A sales representative who calls people at home is practicing inbound telemarketing.
Difficulty: Easy
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
138) To identify potential customers is the first step in sales process.
Difficulty: Easy
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
139) 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: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
140) Public relations is only used by not-for-profit organizations.
Difficulty: Easy
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Comprehension
141) Public relations only refers to an organization's paid communications.
Difficulty: Easy
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
142) 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: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
143) A company’s employee volunteers clean up a neighborhood playground. The media covers this good news story. This is an example of a publicity campaign.
Difficulty: Medium
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
144) A pulling strategy relies less on advertising than does a pushing strategy.
Difficulty: Easy
Learning Objective 1: 14-04: Describe pushing and pulling strategies.
Section Reference 1: Pushing and Pulling Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
Question type: Essay
145) Describe how integrated marketing communications relate to a firm’s overall promotional strategy.
Difficulty: Easy
Learning Objective 1: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Comprehension
146) Identify the components of the promotional mix.
Difficulty: Easy
Learning Objective 1: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
147) List the two basic types of advertising and provide examples for both.
Difficulty: Easy
Learning Objective 1: 14-02: Summarize the different types of advertising.
Section Reference 1: Advertising
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Comprehension
148) Describe the concept of the promotional mix.
Difficulty: Easy
Learning Objective 1: 14-01: Discuss integrated marketing communications (IMC).
Section Reference 1: Integrated Marketing Communications
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
149) What is sales promotion? Give some examples of common sales promotion techniques.
Difficulty: Easy
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
150) Describe the circumstances in which a company is more likely to emphasize personal selling rather than advertising.
Difficulty: Easy
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
151) Explain advertising specialties.
Difficulty: Easy
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
152) Explain why companies and consumers often prefer sweepstakes to contests or games as a form of promotion.
Difficulty: Easy
Learning Objective 1: 14-03: Outline sales promotion.
Section Reference 1: Sales Promotion
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
153) What are the differences between pushing strategies and pulling strategies?
Difficulty: Easy
Learning Objective 1: 14-04: Describe pushing and pulling strategies.
Section Reference 1: Pushing and Pulling Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Comprehension
154) Describe profitability objectives. How do some companies maintain prices while still increasing profitability?
Difficulty: Easy
Learning Objective 1: 14-05: Discuss the pricing objectives in the marketing mix.
Section Reference 1: Pricing Objectives in the Marketing Mix
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
155) Explain why marketers conduct breakeven analyses.
Difficulty: Easy
Learning Objective 1: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
156) 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.
Difficulty: Medium
Learning Objective 1: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Application
157) Describe everyday low pricing (EDLP).
Difficulty: Easy
Learning Objective 1: 14-06: Outline pricing strategies.
Section Reference 1: Pricing Strategies
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Comprehension
158) Describe the relationship between price and quality.
Difficulty: Easy
Learning Objective 1: 14-07: Discuss consumer perceptions of prices.
Section Reference 1: Consumer Perceptions of Prices
Standard 1: AACSB || Analytic
Standard 2: Bloom’s || Knowledge
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