Exam III

The goal of the​ competition-based pricing is​ __________.

not to match or beat​ competitors' price

When companies set their promotion budgets to match​ competitor's outlays, they are using the​ __________ method.

Competitive-parity

__________ uses​ buyers' perceptions of value as the key to pricing.

Customer value-based pricing

The FTC has adopted a three-day cooling rule to give special protection to __________.

Customers who were not seeking a product

Mass marketers can expect consumers to distinguish between commercial message sources to maintain a clear image of a company and its brands

False

Price is the most inflexible of the marking mix elements.

False

The affordable method of setting advertising budgets takes into consideration the effects of promotion on sales.

False

While regulations exist to prohibit deceptive pricing practices, in reality, most reputable sellers do the minimum required to meet the regulations

False

A(n) ________ is a set of symbols that the sender transmits.

Feedback loop

A manufacturer has fixed costs of $100,000, a variable cost of $10 per unit of output, and break-even volume of 50,000 units. What should the manufacturer's unit cost be in order to break even?

$12

The fixed cost in manufacturing a single LED monitor is $40 and the variable cost is $12. If the company expects to manufacture 5,000 monitors, the total costs would be __________.

$260,000

What is predatory​ pricing?

Selling below cost with the intention of punishing a competitor

Which of the following statements does not accurately reflect​ PR's role in​ marketing?

As the use of earned and shared digital content grows​ rapidly, PR is playing a smaller role in marketing content management.

The six stages consumers normally pass through on their way to making a purchase are known as the _________ stages.

Buyer-readiness

Netflix recruits​ "Grammasters," influencers who have large Instagram followings. They travel around the world taking photos and creating videos. This is an example of using​ __________ as a personal communication channel.

Buzz Marketing

Marketing management must first​ __________ when developing an advertising program.

Set advertising objectives

__________ and​ __________ are core PR strengths and that plays well into the use of​ online, mobile, and social media.

Storytelling; engagement

Under oligopolistic competition ___________.

The market consists of only a few large sellers

Advertising has numerous goals. Which of the following is NOT one of those goals?

To work with lobbyists and legislators in developing industry regulations

Changing technologies, especially with digital content, is significantly increasing the role of public relations is a firm's integrated marketing communications program.

True

Companies use PR to build good relations with consumers, investors, the media, and their communities.

True

Direct and digital marketing includes catalogs, e-mail, direct mail, social media, and mobile marketing.

True

Direct marketing includes catalogs, direct-response TV, kiosks, the internet, and mobile marketing.

True

If a company faces competition, its demand at different prices will depend on whether competitors' prices stay constant or change with the company's own prices

True

If demand is elastic rather inelastic, sellers will consider lowering their prices

True

The percentage-of-sales budget is based on the availability of funds rather than on opportunities.

True

Factors a company considers in setting its price include all of the following EXCEPT

Value of the product on the pre-owned market

Beach Heaven uses two-part pricing for its holiday resort charges. Because this is a service, the price is broken into fixed fee for the room plus a(n) _____________ usage rate for activities, including kite-sailing and child care.

Variable

When does persuasive advertising become comparative​ advertising?

When a company directly or indirectly compares its brand to others

Market penetration prices are preferred in all of the following conditions except​ __________.

enough buyers must want the product at a higher price

The first task for a communicator in preparing marketing communications is to​ __________.

identify the target audience

As marketers adopt richer but more fragmented media and promotion mixes to reach their diverse​ markets, they risk creating a communications hodgepodge for consumers. To prevent​ this, companies have adopted the concept of​ __________.

integrated marketing communications​ (IMC)

Federal legislation on​ __________ states that sellers must set prices without talking to competitors.

price-fixing

The pricing method in which sellers combine several products and offer a reduced price is known as​ __________.

product bundle pricing

What sets the floor for product prices?

product costs

Some sellers use​ 00-cent endings on regularly priced items and​ 99-cent endings on discount merchandise. This is an example of pricing referred to as​ __________.

psychological pricing

Under​ __________, the market consists of many buyers and sellers trading in a uniform commodity.

pure competition

Techniques that can be used by sellers for avoiding​ customers' perception of price gouging includes all of the following except​ __________.

rationing products to customers

In​ __________pricing, the company sells a product or service at two or more​ prices, even though the difference in prices is not based on differences in costs.

segmented

Informative Advertising is often used in the _________________ of the product life cycle

Introduction Stage

Which of the following is true of product bundle pricing?

It promotes the sale of products that consumers might not otherwise buy.

__________ reverses the usual process of first designing a new​ product, determining its​ cost, and then​ asking, "Can we sell it for​ that?"

Target costing

Which of the following is true of public policies and pricing?

The Robinson-Patman Act governs interstate commerce

Which of the following statements does not apply to the description of​ prices?

In recent decades price factors have gained increasing importance.

Which type of message appeal does OXO​ utilize?

Rational

__________ are formed by noting current prices, remembering past prices, or assessing the buying situation

Reference Prices

__________ advertising is more suitable for mature products.

Reminder

Failure to enter the current price into a retailer's system may result in charges of ______.

Scanner Fraud

Persuasive advertising is used to build _________________, which is demand for a specific product or brand

Selective Demand

Which of the following is NOT a major public relations tool?

Annual reports and brochures

John Deere does very little promoting of its lawn​ mowers, garden​ tractors, and other residential consumer products to final consumers.​ Instead, John​ Deere's sales force works with​ Lowe's, The Home​ Depot, and other channel members. This is an example of using​ __________for promotion.

A Push Strategy

The Kmart commercials depicted in the video utilized both advertising and entertainment. This is known as which of the​ following? A. Madison​ & Vine B. Public relations C. Personal selling D. Lifestyle advertisement E. Brand integration

A. Madison & Vine

_________ tend to be straightforward outlines of benefits and positioning points that the advertiser wants to stress.

Advertainment statements

Any paid form of nonpersonal presentation and promotion of​ ideas, goods, or services by an identified sponsor is considered​ __________.

Advertising

Kmart did not create the​ "Ship My​ Pants" and​ "Big Gas​ Savings" commercials.​ Instead, they hired​ a(n) __________ named Draftfcb.

Advertising Agency

When the product differs greatly from those of competitors, ___________.

Advertising can point out the differences to consumers

A(n) __________ refers to promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way.

Allowance

Persuasive advertising is used when products are ___________ and competition is still _______________

Established; Entering the Market

Customers located close to a firm are less likely to benefit from FOB-origin pricing than customers located farther away.

False

When iPhone was first introduced into the​ market, Apple highlighted its benefits and qualities. This type of advertising is referred to as​ __________.

Informative Advertising

How can public relations have a strong impact at a much lower cost than advertising?

Interesting brand stories, events, videos, or other content can be shared by sources out of the company's control, but to its benefit.

Which of the following statements about magazines as an advertising medium is true?

Magazines cannot offer high geographic selectivity

Reminder advertising is used for ______________ to mainstream existing customer awareness and loyalty.

Mature Products

Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

Monopolistic Competition

In which type of competition do​ fast-food restaurants​ operate?

Monopolistic competition

Which of the following is the most logical budget-setting method?

Objective-and-task method

Despite its potential​ strengths, public relations are occasionally described as a marketing stepchild because of all of the following reasons except​ __________.

PR practitioners consider their job as simply communication

Which of the following media options would be the LEAST costly for Second Avenue's promotional efforts?

Periodic advertising in a local newspaper that forms a regular monthly schedule

To which category of the marketing communication mix do sales​ presentations, trade​ shows, and incentive programs​ belong?

Personal Selling

the first step in creating effective advertising messages is ______.

Planning a message strategy

A large ink jet printing company enters the letter press market and sells its printing services at a loss just to drive Hammerpress out of business. This is an example of​ _________.

Predatory pricing

Which of the following statements does NOT describe​ price?

Price is the only element in the marketing mix that represents costs.

Informative advertising is used to build ______________ for an overall product category

Primary Demand

A supermarket places its store brand of blackberry jam priced at $5 per jar in the fruit preserves aisle, alongside the jam jars of a better known brand-whose products are priced at $8 apiece. Store managers reason that customers are more likely to choose the store brand instead of the better-known brand when they realize the price difference. what price adjustment strategy is evident in the supermarket's reasoning?

Psychological Pricing

In Vina del Mar, Chile, a large number of shops specialize in selling the same quality of seafood products along the beach frequented by tourists. No individual shop dares to charge more than the going price without fearing loss of business to other shops. This exemplifies __________.

Pure Competition

Market skimming prices are preferred in all of the following conditions except​ __________.

an initial low price is set by the companies

Among the buyer-readiness stages, the first stage is ________.

awareness

Companies that make products that must be used along with a main product are using​ __________.

captive-product pricing

Techniques that can be used by sellers for avoiding​ customers' perception of price gouging includes all of the following except​ __________.

low-price fighter items

Major factors for changing the face of​ today's marketing communications include all of the following except​ __________.

marketers are going for mass marketing

The reasons for considering public​ relations, which has a greater impact at a much lower cost than​ advertising, include​ __________.

the possibility of stories to be picked up by different media

The "bottom of the pyramid" refers to ___________

the world's poorest consumers