MGT 351 exam #3

The two-way flow of between a salesperson and a customer that is paid for by the firm and seeks to influence the customer's purchase decision is referred to as... A) advertising B) personal selling C) sales promotion D) publicity

B) personal selling

Since consumers have the tendency to compare prices on almost everything they buy, marketers setting prices should attempt to capitalize on this tendency by determining the price consumers will consider fair and reasonable for a product. This is known as the... A) dynamic price B) reference price C) benchmark price D) reasonable price

B) reference price

A measure of how often the audience is exposed to a promotional message during a specific time period is referred to as... A) reach B) duration C) frequency D) depth

C) Frequency

Prestige pricing involves... A) pricing generic label goods at the same price as designer goods B) adding a certain amount to the cost of each item in a product set C) pricing a product higher than competitors to signal that it is of higher quality D) constantly updating prices to reflect changes in supply or demand

C) Pricing a product higher than competitors to signal that it is of higher quality

What is calculated in a break-even analysis... A) How many units of product must be sold to cover fixed costs B) The difference between marginal revenue and marginal cost C) The sales volume needed to achieve a profit of zero D) The point at which fixed costs and variable costs are equal

C) The sales volume needed to achieve a profit of zero.

Disseminating unpaid news items through some form of media to gain attention or support is referred to as... A) public relations B) sales promotion C) publicity D) media-controlled content

C) publicity

Which element of the promotion mix refers to the set of nonpersonal communication tools designed to stimulate quicker and more frequent purchases of a product? A) advertising B) internet ordering C) sales promotion D) public relations

C) sales promotion

Firms typically determine their promotional budget using one of three methods: the affordable method, the percentage-of-sales method, and the... A) objective-and-task method B) cost-per-media method C) market demand method D) total sales method

A) objective-and-task method

All the activities that communicate the value of a product and persuade customers to but it is referred to as... A) promotion B) salesmanship C) advertising D) positioning

A) promotion

Which cost would be considered a fixed cost? A) raw material B) advertising C) sales commissions D) delivery costs

B) advertising

Which public relations tool provides a forum for the organization to share with its stakeholders what it has achieved over the past year? A) media kits B) annual reports C) brochures D) blogs

B) annual reports

What is the most common type of sales promotion? A) rebates B) coupons C) samples D) contests and sweepstakes

B) coupons

One of the advantages of radio as an advertising medium is that it... A) is audio-only B) is cost-effective C) doesn't require marketers to segment an audience D) is good for complex messages

B) is cost-effective

A strategy in which two or more products are packaged together and sold at a single price is called price... A) packaging B) pushing C) grouping D) bundling

D) Bundling

Because it could be considered an attempt to create a monopoly, which pricing strategy is illegal under U.S. law but is difficult to prove? A) price inflation. B) price discrimination C) deceptive pricing D) predatory pricing

D) Predatory pricing

Variable costs are defined as costs that... A) Vary depending on the advertising budget for the product B) Vary depending on the type of material used in production C) Change only during economic downturns D) Vary depending on the number of units produced or sold

D) Vary depending on the number of units produced or sold.

According to your text, which element of the marketing mix is one of the most watched and regulated activities? A) promotion B) product C) place D) price

D) price

The three primary objectives of an advertising campaign are... A) to entertain, to remind, and to sell B) to inform, to entertain, and to influence C) to excite, to entice, and to engage D) to inform, to persuade, and to remind

D) to inform, to persuade, and to remind