Business Management Chapter 4 Test

Which of the following pricing techniques is often used in the introductory stage of a product?

Penetration pricing

advantages and disadvantages of publicity

advantage-free. there is no cost. free promotion disadvantage-not always good publicity. no control of what the publicity looks like

A paid form of communication sent out by a business about a product or service is:

advertising

examples of promotion include:

advertising sales promotion publicity

list three methods for determine the price to charge for a product

demand based pricing-how much consumers are willing to pay for a product(survey) cost based pricing-by using wholesale cost of an item as a basis for price charged(Markup=wholesale times % markup/ Markdown=retail price times % of markdown) competition based pricing-what competitors charge for the same product or service

The branding, packaging, and labeling of your product should accomplish all of the following except:

describe the company's product mix

Which of the following would be the best way for you to promote your barber shop business?

discount coupon

Agents/wholesalers serve as intermediaries that facilitate the flow of goods through direct channels of distribution.

false

Not every product has features.

false

The return on investment (ROI) is the amount earned as a result of the investment and is expressed in fractions.

false

When services are combined under one charge, opposed to charging for each individual part, this is called price skimming

false

To successfully use the marketing concept, a business must do which of the following?

identify what will satisfy the customers' needs and wants develop and market products that customers consider better than others operate profitably

some public relations activities that businesses in your area have performed

investing in sports team(sponsor) tents at turkey trot with merchandise donation to local high school being involved with internship at high school

Publicity:

is generated by media coverage may involve staging an event or bringing in a celebrity may be favorable or unfavorable

A disadvantage of radio advertising is that:

it is a purely audio message

Which channel of distribution would be best for someone who makes and sells artwork at his or her home?

manufacturer to consumer

Which of the following type of business is least likely to distribute its products or services directly to consumers?

manufacturing business

various advertising methods that a business can use for promotion

online-expensive television-expensive, reaches broad audience radio-inexpensive. no visual newspaper-oldest form, not targeting specific audience direct-low response rate transit-public transportation, more info

Creating an image for a product in the customer's mind is called:

positioning

what are two strategies used in the introduction of pricing

price skimming price penetration

How can a business compete against similar well-established businesses in a community?

they could have a better customer service, have a different product that us more new, they could have a better location or have a low price better than their competition.

For many businesses, a small percentage of their product mix often makes up the majority of the sales revenue.

true

penetration pricing

uses a low introductory price with a goal of building stronger consumer base. The low prices discourage competition

Cost-based pricing is determined by:

using the wholesale cost of an item as the basis for the price charged

price skimming

when a product is new and unique so the price starts high to recover the cost in developing the product. Then where there is more competitors, the price is dropped