MKT EXAM 3

Assume a retailer purchases a can of premium dog food at $2.25 and adds 75 cents to the cost, making the price $3. What is the markup as a percentage of selling price?

25%

Which of the following is NOT one of the developers of an advertising campaign?

An accounting firm

Spacely Inc.'s sprockets have inelastic demand. If Spacely raises the price of sprockets, what will be the result?

An increase in total revenue

Which personal selling process step may involve calling on customers without prior consent?

Approach

Which of the following should be accomplished after developing pricing objectives?

Assessing the target market's evaluation of price

Which of the following is calculated by dividing the variable costs by the number of units produced?

Average variable cost

Which of the following is the point at which the costs of producing a product equals the revenue made from selling the product?

Breakeven point

Which of the following is a major advantage of nonprice competition?

Building customer loyalty toward the brand

Which of the following pricing strategies sets the basic product in a product line low, but the price on the items required to operate or enhance it are higher?

Captive pricing

ACME Corp. offers a price discount to encourage prompt payment. Which of the following is it likely to use?

Cash discount

Which of the following contrasts the promoted brand with one or more identified competing brands on the basis of one or more product characteristics?

Comparative advertising

Which of the following is NOT a factor affecting the routing and scheduling of sales calls?

Compensation method

Which of the following is often used by producers of relatively homogeneous products, especially when the target market considers price to be an important purchase consideration?

Competition-based pricing

Which of the following price bases is mostly likely to be used for commercial construction projects or custom-made equipment?

Cost-plus pricing

Which of the following is the most widely used sales promotion technique?

Coupons

The Federal Trade Commission (FTC) is investigating ACME Corp. for using misleading price tags at its outlet stores to deceive customers into believing they are getting a bargain on Wile E. branded items. Which of the following does the FTC believe ACME is guilty of?

Deceptive pricing

Which of the following shows the quantity of products a firm expects to sell at various prices if other factors remain constant?

Demand curve

Which of the following is NOT one of the factors that influence the assessment of value?

Elasticity of demande. Elasticity of demand

Kara Thrace operates a service business that engages in systematically collecting data on brands and prices at competitors' stores. For which stage of the price establishment process would this service be most appropriate?

Evaluating competitors' prices

Which of the following is the most expensive sales promotion method?

Free samples

Which of the following support personnel or take orders, follow up on deliveries, and provide technical information?

Inside salespeople

During which step in the personal selling process is listening especially important?

Making the presentation

Maria receives a fixed salary plus a commission based on sales volume after she sells $20,000 worth of merchandise for her company. Which of the following best describes her compensation?

Maria receives a fixed salary plus a commission based on sales volume after she sells $20,000 worth of merchandise for her company. Which of the following best describes her compensation?

Which of the following trade sales promotion methods is best suited to high-volume, high-profit, easily handled products?

Merchandise allowance

Which of the following is NOT one of the four elements of the promotion mix?

New introductory promotion

Which of the following is appropriate for stimulating primary demand?

New introductory promotion

Which of the following publicity-based public relations tool is most common?

News release

Which of the following appropriation techniques is most logical?

Objective-and-task approach

Which of the following is the most important with business-to-business transactions involving the purchase of expensive products?

Personal selling

Which of the promotion methods is the most precise?

Personal selling

Which of the following focuses on a product category rather than a specific brand?

Pioneer advertising

Which pricing strategy provides the most flexible introductory base price?

Price skimming

Which of the following has become important due to the increasing fragmentation of television viewers who have ever-expanding viewing options and technology that can screen advertisements?

Product placement

Which of the following objectives is likely to be more expensive for a firm as the cost of materials and research and development may be greater?

Product quality

Which of the following is NOT one of the criticisms of promotion cited in your text?

Promotion lowers prices

Which of the following product-line pricing strategies is NOT generally used for business products?

Psychological pricing

Which of the following is a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders?

Public relations

Which of the following uses tools such as annual reports, brochures, event sponsorship, and sponsorship of socially responsible programs?

Public relations

Which of the following is used to assess an organization's image among the public or to evaluate the effect of a specific public relations program?

Public relations audit

Which of the following trade sales promotion methods is appropriate when personal selling is an important part of the marketing effort?

Push money

ACME Corp. has a promotion strategy that involves promoting its widgets through personal selling and sales promotion to the wholesalers that handle its products. Which channel promotion policy is ACME using?

Push policy

Which of the following pass on to a business customer the cost savings gained through economies of scale?

Quantity discounts

ACME Corp. is evaluating the effectiveness of a recent campaign by showing selected consumers the actual advertisement and asking whether they recognize it. ACME is probably using which method to evaluate its campaign?

Recognition test

Which of the following pricing objectives can reduce a firm's risks by helping to stabilize demand for its products?

Status quo

Which of the following is NOT a public relations tool?

TV commercial

Which of the following involves the salesperson joining with people from the firm's financial, engineering, and other functional areas?

Team selling

Which of the following are likely to restock shelves, obtain more shelf space, set up displays, provide in-store demonstrations, and distribute samples to store customers?

Trade salespeople

Which of the following charges the same price to all customers regardless of geographic location, and the price is based on average shipping costs for all customers?

Uniform geographic pricing

Maria is concerned about both price and quality of a product. Marketers would best describe her as which of the following?

Value-conscious

Which of the following types is NOT an example of noise in the communication channel?

When a source uses an emoji that are understood by the receiver

ACME Corp.'s widgets have elastic demand. If ACME raises the price of widgets, what will be the result?

a decrease in total revenue

ACME Corp. and Spacely Inc. are engaged in intense price competition in order to boost market share of their widgets. This is best described as _______.

a price war

When a product's target market consists of millions of customers, organizations tend to rely on _______ and _______.

advertising; sales promotion

To compete effectively on a price basis, a firm should _______.

be the low-cost seller of the product

ACME Corp. is running a sales promotion in which it offers to give retailers $1 for each case of widgets purchased during the promotion. This best describes _______.

buying allowance

The limit on the volume of information a communications channel can handle effectively is known as _______.

channel capacity

The Federal Trade Commission has established guidelines for _______. If the higher price against which the comparison is made is the price formerly charged for the product, the seller must have made the previous price available to customers for a reasonable time period.

comparison discounting

To boost sales, ACME Corp. launched a sales promotion effort that required individuals to compete for a free iPad by collecting stickers on the inside of packaging of ACME widgets. This best describes a _______.

consumer game

A major goal of integrated marketing communications is to send a consistent message to _______.

customers

Some types of promotion—such as free samples, coupons, test drives, or limited free-use offers, contests, and games—are employed to _______.

encourage product trial

Sales promotion can increase sales by providing _______.

extra purchasing incentives

A company's rental of production space is an example of a _______.

fixed cost

In the absence of government controls, pricing is a(n) _______ and _______ way to adjust the marketing mix.

flexible; convenient

Hallmark is using a strategy of running advertisements for set periods of time, alternating with periods in which no ads run. This is best described as _______.

flighting

The most critical copy in an advertisement is the _______.

headline

To prevent unfavorable public relations or at least lessen its effect, the first thing a firm should do is _______.

implement safety programs, inspections, training, and effective quality control procedures

Urban Outfitters is coordinating promotion and other marketing efforts to ensure maximum informational and persuasive impact on customers. This is best described as _______.

integrated marketing communications

A price developed in the buyer's mind through experience with the product is a(n) _______.

internal reference price

Relationship selling differs from traditional personal selling due to its adoption of a(n) _______.

long-term perspective

If promotion is used to successfully stimulate demand, the producer should be able to produce and market products in larger quantities and thus reduce per-unit production research and development, overhead, and marketing costs, which can result in _______.

lower prices

ACME Corp. has a pricing objective to increase its primary product's sales relative to total industry sales. This is best described as a(n) _______.

market share objective

Digital advertising that matches the appearance and purpose of the content in which it is embedded is called _______.

native advertising

Word-of-mouth communication is most effective for _______ and _______.

new-to-market products; expensive products

Chevrolet's Presidents' Day sales are an example of _______.

periodic discounting

If a company's promotional budget is extremely limited, the firm is likely to rely on _______.

personal selling

Whenever ACME Corp. introduces a new product, it sends out a single page with typewritten copy containing fewer than 300 words and describing a company event or product called a(n) _______ and a photograph with a brief description explaining its contents, called a(n) _______.

press release; captioned photograph

Salespeople from ACME Corp. are searching for potential customers from company sales records, trade shows, commercial databases, newspaper announcements, public records, telephone directories, trade association directories, and many other sources. This is best described as _______.

prospecting

In the communication process, the _______ is the individual, group, or organization that decodes a coded message.

receiver

Toastie's restaurant is developing a frequent-user program that asks customers to input their phone number each time they order and then rewards them with free drinks or chips after they have spent $50 at the restaurant. This best illustrates the promotional objective of _______.

retain loyal customers

Price is a key element in the marketing mix because it relates directly to the generation of total _______.

revenue

Sales force objectives for the entire force are normally stated in terms of all of the following, except _______.

sales territory

Leonard is a salesperson for ACME Motors. He always tries to shake hands with potential new customers and to "seal the deal" when they sign a sales contract. In personal selling, handshaking is an example of _______.

tactile communication

The group of people at whom advertisements are aimed is called the _______.

target audience

Josh, who has an engineering degree, gives practical assistance to ACME Corp.'s current customers, advising them on product characteristics and applications, system designs, and installation procedures. Josh is best described as a(n) _______.

technical salesperson

At ACME Corp., managers are using a strategy of trying to get consumers to share the firm's message via a quirky online YouTube video in a way that spreads dramatically and quickly. This is best described as _______.

viral marketing

Personal, informal exchanges of communication that customers share with one another about products, brands, and companies are best described as _______.

word-of-mouth communication

Firefly Space Shuttles is using a strategy of maximizing revenues by making numerous price changes in response to demand, competitors' prices, or environmental conditions. This is best described as _______.

yield management