ent. 2.02-3.01 test

Which is an example of a business's core values?

"We deal honestly and fairly with our customers and ourselves."

To emphasize value, a rental car company should use which tagline?

"We provide more for less."

Rodney Corporation, a candy manufacturer, is using advertising and coupons to introduce the Wacky Bar, a new candy bar. What is the company trying to create about its brand?

Recognition

Because the economy was experiencing a rapid inflation rate and consumer spending fell, the NOP Manufacturing Company had to perform which activity?

Reduce its outputs

Communicating the core values of products is an effective way to perform which activity?

Reinforce a business's image

When a nation's inflation rate is low, what do prices tend to do?

Remain stable

An invoice totaling $10,525 offers a 3% discount for payment within 15 days or a 2% discount for payment within 30 days. These are examples of which discounts?

cash

A business that offers the best service in the industry usually has which attribute?

competitive advantage

Why do businesses often try to develop a unique positioning concept for a new product?

to set apart from competitors

In product-line pricing, high-end prices are used to influence the quality image of the line, while low-end prices are used for which activity?

used as traffic-builders

Estimate a company's market share if its anticipated sales for the upcoming year amount to $465,895, and the industry's anticipated sales are $2,950,450.

0.16

The Dawson Company estimates sales of $650,525. If the estimate of total sales in the industry is $3,550,500, what is the estimated market share for the company?

0.18

A retailer purchased merchandise. The invoice, dated March 1, offers terms of a 1% discount if paid by March 11, or the full amount due with no discount if paid by March 31. How would these terms be expressed on the invoice?

1/10, n/30

Merchandise has been purchased with terms 2/10, n/30, and the invoice is dated April 13. By what date must the business pay the invoice in order to take advantage of the discount offered?

23-apr

Which term of sale would provide the purchaser with the greatest immediate cash discount?

3/10, n/30 EOM

Which is considered to be a psychologically appealing price?

4.50

A growing economy provides which benefit to producers and consumers?

A higher standard of living

Which example reflects a situation that is most likely to use a by-product pricing strategy?

A lumber mill packages and distributes bark chips and sells them as landscaping mulch.

Businesses position products by sending marketing signals to influence customers' perceived satisfaction of these products. These marketing signals come from which components?

Advertising media, sales promotions, and packaging

Bundle pricing is used to attract customers by packaging two or more related or complementary products together for which situation?

At a lower price than if purchased separately

A business that sets a low price on a main product and high prices on the supplies needed to operate the main product is using which pricing strategy?

Captive-product

A business that positions itself by emphasizing distribution expertise and efficiency is using which strategy?

Channel differentiation

Which part of a business plan includes the history of the business?

Company description

Which touch points does a successful company often use to communicate its corporate brand to its target market?

Company website, sales calls, and trade shows

When a business decides to sell its products through franchise agreements, it is using which vertical marketing strategy?

Contractual

Which channel-management strategy involves a producer that owns its intermediaries? `

Corporate Vertical Marketing System

How does a business estimate its percentage of market share in relation to its competitors?

Divides the business's sales by the total industry's sales

When inflation levels are low, businesses often consider which activity?

Expanding their operations

To many consumers, high prices are an indication of which situation?

High quality

The market-skimming pricing strategy is often used when a business is introducing which products or services?

High-quality, innovative products

If a bank doubles its interest rates on loans, what will happen to the demand for money?

It will decrease.

Which is a disadvantage for a business frequently using promotional pricing to lower the base price of products?

Many consumers refuse to pay full price.

Which is a characteristic of a good brand name?

Memorable

A business that is introducing a new product and wants to obtain a large number of customers immediately might decide to use which pricing strategy?

Penetration

Which is an example of a corporate brand?

Procter and Gamble

A retailer reduces prices by 20% on much of its stock during a one-day Columbus Day Special. The purpose of these markdowns is to achieve which goal?

Stimulate storewide sales

Which is an example of a technological trend that would affect business?

The expanded use of computers

Why should managers understand the external environmental factors of business?

The factors affect the direction a business takes.

Why is it important for a business to identify its product's competitive advantage?

To develop an appropriate marketing strategy

Jenny tried ABC peanut butter and now buys it regularly. This is an example of what type of consumer behavior?

brand loyalty

Which is the most important question that a business considers when positioning its products?

What product benefit does the target market find most appealing?

What will exist if there is a real market opportunity?

demand

What type of organizational structure is a business using if it groups employees according to the type of work they do?

departmental

The ultimate objective of the business in using brand names or slogans is to achieve which goal?

encourage sales

A business conducts research so it can analyze market needs, which often includes which activity?

identifying trends

Corporate branding provides a variety of products and product lines with which common factor?

identity

Who benefits the most when interest rates increase?

lenders

A business that sells an item at cost in the hope of attracting many customers who will buy other products is using which pricing?

loss-leader

A department received 200 beach towels in June and marked them to sell for $10.00 each. After a month, only 30 towels had sold and the department manager marked them down to $9.99. Within two days, over 50 of the beach towels had sold. What pricing technique has been used in this case?

odd pricing

What strategy for pricing imitative new products should businesses avoid using?

overcharging

To avoid triggering intense price competition that erodes profits and rewards customers for ignoring value, when should businesses should use penetration pricing?

selectively

When a business owner temporarily lowers prices for select items and places advertisements in local newspapers to announce the sale, which promotional pricing strategy is being used?

special-event

Carson Manufacturing priced its Model 234A convection oven at 15% above production costs. What type of pricing objective did Carson set?

target return

Which type of information can be obtained from a business's organizational chart?

the chain of command

Why is it important for a business to communicate the core values of its products?

to appeal to target market

Why do businesses organize employees according to some type of specific structure?

to assign responsibilities

Buying bargains can make customers feel as though they are which type of shopper?

wise