Chapter 4 Test

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 charing for each individual part, this is called price skimming

False

Publicity

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

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

Penetration pricing

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

True

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

advertising

Examples of promoting include

advertising, sales promotion, publicity

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

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

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

A disadvantage of radio advertising is that

it is 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

Creating an image for a product in the customers mind is called

positioning

Cost-based pricing is determined by

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