Pricing And Promoting Full Test Bank Chapter 6

Chapter Six

Multiple Choice

1. Which of the following is NOT part of the original promotional mix?:

a) advertising

b) social media

c) sales promotion

d) personal selling

e) public relations

2. Why do mobile media affect the pricing strategies of firms?:

a) because mobile raises the cost of doing business

b) because competitors can no longer know your costs

c) because prices are transparent

d) because the mobile marketplace is inherently more expensive to customers

e) because mobile marketers use yield pricing

3. Which of the following is an internal pricing factor?:

a) competitors

b) suppliers

c) channel members

d) costs

e) demand

4. Dataviz offers Docs to Go for free in the hopes that you will buy the premium version. This is an example of:

a) price skimming

b) price penetration

c) freemium

d) price sensitivity

e) more than one of the above is true

5. Apple tends to introduce products at a very high price due to which strategy?:

a) price skimming

b) price penetration

c) freemium

d) price sensitivity

e) more than one of the above is true

6. Uber increases prices when there is high demand for taxi services. This is known as:

a) price skimming

b) social pricing

c) price sensitivity

d) framing

e) surge pricing

7. When marketers price relative to people’s perceptions of pricing they are using which technique?:

a) price skimming

b) social pricing

c) price sensitivity

d) framing

e) surge pricing

8. Which of the following best represents a reference price?:

a) the list price for a car

b) a premium price charged by named brands

c) a price customers expect

d) an everyday low price

e) the warehouse price

9. Which type of shopper buys for functionality rather than luxury?:

a) utilitarian

b) hedonistic

c) average

d) discount

e) lazy

10. How does Facebook make money?:

a) subscription

b) advertising

c) % of vendor sales

d) both a and b

e) all of the above

11. How does Spotify make money?

a) subscription

b) advertising

c) % of vendor sales

d) both a and b

e) all of the above

12. Coupons, premiums and gifts represent which aspect of the promotional mix?:

a) advertising

b) selling

c) sales promotion

d) sponsorship

e) public relations

13. The most common form of sales promotion in the USA is:

a) coupons

b) samples

c) gifts

d) premiums

e) bonus packs

14. Why is couponing NOT considered a strong lead promotion for a brand?:

a) because it focuses on customers

b) it can lead to purchases

c) it is expensive to execute

d) it is not effective for certain targets

e) it leads to lower perceptions of quality

15. Which of the following represents User Generated Content (UGC):

a) posts in social media

b) television ads

c) print campaigns

d) online reviews

e) more than one of the above is true

16. Which is an example of a trade promotion?:

a) samples

b) dealer contest

c) premiums

d) coupons

e) bonus packs

17. A deal prone customer:

a) purchases a lot of a particular category

b) is loyal to one brand

c) buys when there are promotions

d) creates content for brands

e) buys little

18. Why are large discounts counterproductive for a marketing strategy?:

a) they devalue the brand

b) people don’t like them

c) they lower the quality of the product

d) marketers can’t track them

e) they are profitable

19. To earn a Flock to Unlock incentive a customer has to:

a) sign up for Twitter

b) provide an email address to the marketer

c) find the promotion on Facebook

d) retweet an offer

e) “like” the brand

20. Landing pages are:

a) good websites

b) social media pages

c) special web pages attached to links

d) airline blogs

e) collections of tweets from major companies

21. Which of the following is an indirectly paid for form of promotion?:

a) personal selling

b) advertising

c) public relations

d) sales promotion

e) sponsorship

22. Which of the following is an example of inbound marketing?:

a) Jerry contacts 5 prospects

b) Philip’s blog includes a comments section

c) Exxon Mobile prepares a white paper on oil exploration that is downloadable with an email address

d) LinkedIn offers sales people access to customer emails and account information e) sales representatives run ads in trade magazines emphasizing discounts and customer service

23. Which type of promotion typical involves one-to-one contact?:

a) personal selling

b) advertising

c) public relations

d) sales promotion

e) sponsorship

Essays

1. Describe three types of promotions and how you might execute the strategy in social media.

2. What promotions can be best executed with a mobile marketing strategy? Give an example.

3. Your company, Dyson sells vacuum cleaners and fans in home stores such as Bed Bath and Beyond and Home Depot. How can you use your mobile strategy to influence price shoppers?