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100. When deciding on sales promotion methods to employ, marketers take several factors into consideration. Which factor below is unlikely to affect decisions regarding sales promotion methods? a) Type of package b) Product characteristics c) Target market characteristics d) Types of resellers e) Competitive forces in the environment

101. In recent years the proportion of promotional dollars spent on sales promotion has a) increased relative to advertising. b) remained constant. c) declined slightly, and the proportion spent on advertising has increased. d) declined slightly, and the proportion spent on advertising has declined as well. e) increased, and the proportion spent on advertising has risen as well.

102. If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage, it is committing a) price discrimination. b) price-consciousness. c) functional discounting. d) price competition. e) price fixing.

106. As a promotional strategy, using coupons strives to achieve all of the following except a) show how a product is used. b) increase sales volume quickly. c) introduce new package sizes. d) prompt trial usage of a new product. e) attract repeat users.

107. The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line. Its basic promotional tool is the discount. These discounts offered to middlemen for performing certain channel activities are referred to as ____________ discounts. a) trade b) cumulative c) noncumulative d) push e) intermediary

109. If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ____________ discount. a) quantity b) cash c) seasonal d) trade e) complementary

The federal government often uses _____ pricing when it grants defense contracts. a) markup b) differential c) breakeven d) cost-plus e) competition-based

The last stage in the development of any advertising campaign is a) creating the advertising platform. b) developing the media plan. c) creating the advertising message. d) evaluating the effectiveness of advertising. e) defining the advertising objectives.

The management at Allied Electronics is having difficulty in raising the introductory price on system components to cover the increased costs of producing the sensing devices for home security systems. Apparently, Allied used a(n) ___________ strategy in pricing these components. a) odd-even b) skimming c) lining d) penetration e) psychological

The owner of a professional baseball team asks the account representative of an advertising agency to develop an advertising campaign to bring more teenagers to the ballpark. At this point, the account representative logically begins to discuss establishing __________ for the campaign. a) the target audience b) a budget c) a media plan d) objectives e) advertising directives

The physical arrangement of the illustration, headline, subheadline, body copy, and the signature is called the a) artwork. b) copy. c) art design. d) layout. e) storyboard.

The three general types of media schedules are a) pulsing, beating, and continuous. b) short, medium, and long-term. c) morning, afternoon, and evening. d) pulsing, continuous, and flighting. e) light, heavy, and alternating.

Threatt Production makes low-priced, convenience products that are widely available. It is most likely to focus its promotion efforts on a) public relations. b) personal selling. c) viral marketing. d) advertising. e) sales promotion.

To gain maximum benefit from promotional efforts, marketers must strive to a) become directly involved rather than indirectly involved. b) obtain information about the marketing environment through their MIS. c) realize the needs of their target market and try to meet them. d) properly plan, implement, coordinate, and control communications. e) use promotion during the growth stage of the product's life cycle.

Toyota's act of giving the opinion leaders a new vehicle for two weeks is best described as an example of a) advertising. b) personal selling. c) sales promotion. d) buzz marketing. e) push marketing.

Westin Inc. has an objective of achieving a 25 percent return from its overall sales. This is an example of a ______ pricing objective. a) market share b) cash flow c) return on investment d) profit e) status quo

What is the primary justification marketers use for conducting recognition and recall tests? a) Researchers find that recalling an advertisement has a strong link to purchasing a product. b) People have unfavorable views of advertising and are unlikely to purchase advertised products. c) Consumers tend to enjoy participating in these tests and are likely to purchase the products as a result. d) People are more likely to buy a product they have seen advertised than one they have not seen advertised. e) There is a strong link between advertisement recall/recognition and word-of-mouth communication.

What type of pricing objective would an organization use if it were in a favorable position and desired nothing more? a) Return on investment b) Cash flow c) Profit d) Status quo e) Survival

When Hershey Dark Chocolate Kisses were introduced, Hershey promoted directly to consumers and told them to ask for the product at their favorite stores. This is an example of a _________ policy. a) reseller promotional b) push c) customer promotional d) pull e) channel promotional

When Sharp first introduced its line of graphing calculators, it set the price quite high; it has lowered the price as competitors have entered the market. The pricing strategy initially used by Sharp is called a) customary pricing. b) odd-even pricing. c) penetration pricing. d) price skimming. e) prestige pricing.

23. The final stage of the selling process is a) closing. b) trial close. c) presentation. d) follow-up.

112. Realizing that her firm's sales promotion budget was small and cut by 30 percent for the coming year, Stacey Baronas rules out ___________ as playing a role in her sales promotion plan. a) samples b) coupons c) point-of-purchase materials d) money refunds e) premiums

113. To increase sales of Chex cereals, Ralston Purina offered a free pound of bananas to customers who bought the large-size box. This form of sales promotion is called a a) premium. b) coupon. c) cents-off offer. d) free sample. e) money refund.

114. A concession in price in business markets to achieve a desired goal is called a(n) a) allowance. b) objective-oriented discount. c) cash discount. d) trade discount. e) cumulative discount.

118. Any marketing tactic used to stimulate wholesalers and retailers to carry a producer's products and market those products more aggressively is a a) trade sales promotion method. b) point-of-purchase material. c) consumer sales promotion method. d) merchandise allowance. e) dealer loader.

121. Which of the following is not a method used to determine transfer prices? a) Discounted standard cost b) Actual full cost c) Standard full cost d) Cost plus investment e) Market-based cost

125. If Concession Supply increased its price by 10 percent and experienced only a 2 percent decrease in the demand for hotdogs, the demand would be a) inelastic. b) common. c) prestige. d) elastic. e) marginal.

127. A __________ is a gift to a retailer who purchases a specified quantity of merchandise. a) dealer loader b) premium c) dealer listing d) merchandise allowance e) count and recount

128. BASF is considering the problem of actual distance in delivering its product from the plant in Germany to some of its customers in China. Which pricing strategy would help overcome this problem? a) Geographic b) Transfer c) Commercial d) Transit e) Factory

131. Sean is developing his list of potential new retail customers by accessing the yellow pages online. Here he finds the contact information for every motorcycle store in the 48 contiguous states, and eliminates those who currently are his customers. Sean is involved in which step of the personal selling process? a) Prospecting and evaluating b) Preapproach c) Overcoming objections d) Closing e) Following up

136. Presto appears to be using ______________ to educate its sales force. a) formal sales training b) on-the-job training c) negative motivation d) territorial meetings e) recruiting training

18. A sales career can offer all of the following except a a) structured, inflexible workday. b) high income. c) great deal of freedom. d) high level of training. e) high level of job satisfaction.

22. Sayyid's company has launched a new product line, and he is put in charge of sales. He decides his first step will be to find potential customers in the company's sales records. Sayyid is a) prospecting. b) screening. c) researching. d) pre-approaching. e) surveying.

25. When marketers emphasize price as an issue and match or beat the prices of other companies, they are using a) price competition. b) nonprice competition. c) comparative pricing strategies. d) demand-based pricing. e) supply-based pricing.

29. After compiling a list of potential customers, a salesperson must a) evaluate whether each prospect is able, willing, and authorized to buy the product. b) determine whether or not each prospect is really in his target market. c) find and analyze information about each prospect's specific needs and current brand choices. d) develop a presentation for each of the potential customers on his list. e) contact each of the prospects to get an initial feel for how likely they are to purchase his products.

31. Which of the following statements about nonprice competition is false? a) Companies that use nonprice competition do not need to keep track of their competitor's prices. b) A company must be able to distinguish its brand through some unique feature in order to successfully engage in nonprice competition. c) A firm using nonprice competition can build loyalty to both its company and its products. d) When using nonprice competition, a company should promote the distinguishing characteristics of its brand. e) Buyers must view the distinguishing characteristics of a product offered through nonprice competition as being important.

34. If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the a) quantity demanded goes down. b) demand remains constant. c) quantity demanded increases. d) demand increases. e) breakeven increases.

42. Which of the following is not true when making the sales presentation? a) The salesperson should focus on anticipating questions and answering them before they're asked. b) The salesperson must spark interest in the product. c) The salesperson should not only talk but also listen to the customer. d) The salesperson should involve the customer by having him or her hold, touch, or use the product. e) A salesperson should not sound like he or she is just reading a script (i.e., he or she should be flexible and respond to the customers' comments).

43. A salesperson will be better able to determine the prospect's specific needs by a) listening carefully to questions and comments and watching reactions during the sales presentation. b) waiting until after the sale to see how the client is enjoying the use of the product. c) doing extensive research before the approach and making the sales presentation without adjustment. d) using trial closings throughout the sales presentation. e) making a very thorough and detailed sales presentation about the products and services being offered.

44. Tony tells his wife, Camilla, that his last sales call of the day at DuPont was a disaster. He explains that he never really figured out what the purchasing agent was looking for. Camilla, a sales trainer for another firm, hands Tony a book on a) listening skills. b) overcoming objections. c) prospect evaluation. d) product demonstrations. e) closing.

45. If a product has an inelastic demand and the manufacturer raises its price, a) total revenue will increase. b) quantity demanded will decrease. c) the demand schedule will shift. d) the demand will become more inelastic. e) total revenue will decrease.

46. During the personal selling process, a salesperson, if possible, should handle objections when a) they arise. b) the salesperson begins the trial close. c) the sales presentation is approximately half completed. d) when the customer appears to be unhappy or agitated. e) when the salesperson begins the sales presentation.

50. Marginal analysis involves examining a) what happens to a firm's costs and revenues when production is changed by one unit. b) the extra revenue produced by the sale of one more product. c) the extra cost incurred by the production of one more unit. d) the difference between marginal revenue and total revenue. e) the difference between marginal cost and total cost.

51. Costs that do not vary with changes in the number of units produced and sold are called ____ costs. a) fixed b) total c) invariable d) variable e) set

53. Cheyenne calls to see if her customer's new hardwood floors were installed correctly a) during the follow-up step. b) immediately after the closing. c) near the end of the sales presentation. d) the next time she makes a sales call to that customer. e) after she receives cash payment from that customer.

58. At what point does a firm maximize profit? a) The point at which marginal cost equals marginal revenue b) The point at which the firm sells its product at the highest price c) The breakeven point plus the adjusted marginal cost d) The point at which marginal profits equal marginal revenue e) The point at which marginal cost equals marginal profits

61. At the breakeven point, a) the money a company brings in from selling products equals the amount spent producing the products. b) the total fixed costs are exactly equal to the total variable costs. c) profits are exactly equal to the difference between revenue and total variable costs. d) the marginal revenue of a product is exactly equal to the marginal cost of producing one more unit. e) the marginal cost curve and the average cost curve will be identical for a particular product.

62. Doug Browton travels around to various established customers to see what new office supplies they need. His customers have come to depend on him to check their supplies. Doug is a(n) a) field order taker. b) current customer order getter. c) missionary salesperson. d) inside order taker. e) trade salesperson.

63. Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Caterpillar is producing at the ___________ point. a) breakeven b) marginal revenue less than marginal cost c) profit margin d) competitive price e) profit maximizing

66. Jin Xiao, a trained engineer, is a salesperson for a chemical manufacturer. He provides current customers with advice about a product's characteristics and applications. He is a(n) a) missionary salesperson. b) trade salesperson. c) field order taker. d) inside order taker. e) technical salesperson.

66. Markum Industries determines that for its air compressors the following results are achieved at a price of $250: total costs = $250,000; variable costs per unit = $100; fixed costs = $175,000. Given these figures, Markum would break even at ___________ units. a) 1,167 b) 1,000 c) 1,750 d) 2,500 e) 700

68. Maria Martinez works for a cosmetics manufacturer and is responsible for ensuring that retailers have adequate quantities of products when they need them. However, she is directing much of her effort toward helping the retailers promote the products. She would be characterized as belonging to which group of salespeople? a) Trade salespeople b) Field order takers c) Advisory salespeople d) Technical salespeople e) Order getters

69. Jana works for Hormel Foods and she frequently sets up special displays and distributes samples of Hormel products to customers in supermarkets. Jana would best be classified as a(n) a) trade salesperson. b) technical salesperson. c) inside order taker. d) field order taker. e) missionary salesperson.

74. Which of the following is particularly appropriate for pricey high-tech business products, such as jet aircraft and medical equipment? a) Team selling b) Relationship selling c) Trade selling d) Technical selling e) Missionary selling

75. Temporary price reductions through sales, rebates, and special discounts are often used to a) raise cash quickly. b) decrease costs. c) increase profitability. d) run off the competition. e) create a value image.

77. Sales objectives can do all of the following except a) serve as a deterrent both to salespeople and their clients. b) give the sales force direction and purpose. c) serve as a standard for evaluating salesperson performance. d) let the sales force know what is expected of them. e) help to control the sales force.

79. For most consumers, there is an assumed relationship between a) price and quality. b) value and cost. c) internal and external reference prices. d) value and price consciousness. e) prestige prices and value.

85. Which of the following best characterizes the function of recruiting and selecting a sales force? a) It should be a continuous, systematic attempt to match applicants' characteristics to the firm's needs. b) It is a process that should be set up that incorporates at least two steps: an interview and a written application. c) Sources of applicants should be limited, since the recruitment process is expensive and more applicants mean greater expense. d) After interviewing applicants, the manager should attempt to find a position that can be tailored to fit applicants' qualifications. e) It should not be made from personnel in other departments in the firm, as this would necessitate training two people rather than one.

86. The degree to which the price of a product enhances a customer's satisfaction with the purchase experience and with the product after the purchase is part of their a) response. b) reference. c) interpretation. d) price satisfaction. e) price-consciousness.

87. Generally, customers are most likely to rely on the price-quality association when a) they cannot judge the quality of the product for themselves. b) the product is a well-known brand. c) customers can judge the product's quality for themselves. d) the product is purchased through the use of the Internet. e) products are being purchased from well-established retailers that are familiar to customers.

88. To gain market share, when Hyundai first entered the U.S. car market it did so with a comparatively low price strategy. One of the negative side effects of making this pricing decision is a) a negative impact on consumers' perceptions of quality. b) competitive matching. c) a high return on investment level affecting tax balances owed. d) poor survival chances. e) higher developmental costs.

91. In designing sales territories, a sales manager considers several major factors. The territories must be constructed so that sales potential can be measured; the shape of the territories should facilitate salespeople's activities to provide the best possible coverage of customers; and a) territories should be designed to minimize selling costs. b) all territories should be of similar size. c) the territorial pattern should consist of concentric circles. d) the density of potential customers should be minimized. e) the distribution of customers should be relatively equal.

92. The perception of price depends on a a) product's actual price and consumers' expectations regarding price. b) consumer's analysis of competitive prices. c) consumer's reference price. d) consumer's expectation of price. e) product's actual price in comparison with the manufacturer's suggested price.

98. Dorothy won a hot-air balloon ride and dinner for two for being the top revenue-producing mortgage loan officer at her company for the month of October. This contest exemplifies a company's efforts at a) motivating salespeople. b) compensating salespeople. c) providing training for the sales force. d) managing sales territories. e) selecting salespeople.

99. The ___________ prohibits price fixing among firms in an industry. a) Sherman Antitrust Act b) Federal Trade Commission Act c) Wheeler-Lea Act d) Robinson-Patman Act e) Clayton Act

A firm can identify changes in public opinion that affect it by conducting a) environmental monitoring. b) consumer polling. c) a consumer jury. d) a communications audit. e) press conferences.

A paid form of nonpersonal communication about an organization and/or its products that is transmitted to a target audience through a mass medium is a) advertising. b) public relations. c) sales promotion. d) personal selling. e) campaigning.

A sale that advertised prices "up to 65 percent off" the original price uses a) tensile pricing. b) random discounting. c) periodic discounting. d) bait pricing. e) psychological pricing.

A television advertisement showing the safety features of the Volvo "Cross Country" Wagon would be best classified as which of the following? a) Product advertising b) Pioneer advertising c) Defensive advertising d) Societal marketing e) Publicity

A tool that allows an advertiser to compare the costs of several media vehicles within a specific medium relative to the number of persons reached by each vehicle is called a(n) a) cost comparison indicator. b) media comparison selector. c) unit-price selector. d) cost/person index. e) vehicle/price indicator.

Advertising campaign objectives that are aimed at making customers' attitudes more favorable are stated in ________ terms. a) communication b) sales c) demand d) market e) survey

Advertising that aims to create a more favorable view of a company as a whole in the eyes of various stakeholders is called __________ advertising. a) institutional b) product c) organizational d) pioneer e) advocacy

Advertising that focuses on stimulating demand for a product category is called _____ advertising. a) pioneer b) competitive c) institutional d) categorical e) product

Advertising, personal selling, sales promotion, and public relations are called a) promotion mix ingredients. b) marketing mix components. c) characteristics of a product. d) advertising tools. e) nonpersonal communication.

An advertising campaign is typically developed by an individual or a few persons within the firm, an advertising department within the organization, or a) an advertising agency. b) a group of media specialists. c) a group of multiskilled managers. d) a "special projects" group. e) freelance advertising consultants.

An advertising platform is the a) basic issue or selling point that an advertiser wishes to include in an advertising campaign. b) objective of the advertising campaign, stated in precise and measurable terms. c) form in which the basic issues of the campaign should be presented. d) broad objectives of the advertising campaign. e) consumer advertising research conducted.

An advertising platform should consist of issues that are important to consumers. Selling features should be important to consumers and should be features that a) competitive products lack. b) can be seen easily in a photograph. c) are familiar concepts to those in the target market. d) competitive products have as well. e) are reasonably inexpensive to develop.

If a pull policy is to be used in promoting a product, the firm a) promotes directly to consumers. b) promotes only to the next marketing institution down the marketing channel. c) promotes the product to retail stores only. d) promotes the product to wholesalers only. e) must also use the push policy to be effective.

Andrea receives an e-mail from her sister-in-law that is actually a recommendation for a website with a demonstration of a new home hair-coloring system. She later discovers that her sister-in-law received a free trial kit for passing Andrea's and four other friends' e-mail addresses along to the marketer. This is known as a) viral marketing. b) buzz marketing. c) guerilla marketing. d) a word-of-mouth pyramid. e) personal advertising.

As Emily Jeffries prepares the script for a radio commercial for her boutique, she is engaging in the _______ stage of the communication process. a) encoding b) sourcing c) decoding d) sending e) receiving

As Oscar Meyer puts together its advertising campaign for the summer, it will need to keep in mind that its desire to use outdoor advertising will have strong effects on its selection of the advertising a) message. b) budget. c) platform. d) audience analysis. e) objectives.

By promoting the fact that "orange juice is not just for breakfast anymore," the Florida Orange Growers Association attempted to stimulate a) primary demand. b) secondary demand. c) competition. d) comparison of orange juices. e) demand elasticity.

Carla is stopped by a researcher at a shopping mall and asked what was last television commercial she remembers seeing was. This is an example of a(n) a) unaided recall test. b) pretest. c) recognition test. d) aided recall test. e) memory test.

Colin McKinney, director of marketing for Greenwald Industrial Products, complains to his advertising director that the continuing slump in orders has apparently been perpetuated by the firm's failure to have the necessary advertising expenditures. Based on this information, Greenwald is most likely using the __________ approach to determine its advertising expenditures. a) percent-of-sales b) objective-and-task c) competition-matching d) arbitrary e) judgmental

Communication can be viewed as a circular process because a) during feedback, the receiver can be viewed as the source of the message while the original source becomes the receiver. b) the message goes from encoding by the source to decoding by the receiver. c) during a personal selling situation, both verbal and nonverbal feedback can be very fast and immediate. d) channel capacity is determined by the least efficient component. e) the message goes from person to person.

Competition-based pricing is a) used when costs and revenues are secondary to competitors' prices. b) not useful as a method of increasing market share. c) not useful if the competing products are homogeneous. d) not able to increase sales. e) used when competing products are heterogeneous.

Dial Soap's advertising slogan "Aren't you glad you use Dial? Don't you wish everybody did?" exemplifies the use of ___________ advertising. a) reinforcement b) offensive c) comparative d) institutional e) defensive

Domino's is looking into magazine advertising for its pizza. The company wants to reach as many people as possible, but due to budget constraints Domino's must reach consumers as efficiently as possible. What can Domino's use to evaluate various magazines? a) A cost comparison indicator b) The total circulation of the magazines c) A list of the costs of a one-page ad in various magazines d) The advertising appropriations for each magazine e) An index of advertisement exposure

Executives in Japan decided to price Lexus luxury cars in the United States at $55,000 while pricing them at $66,000 in their own country. This is an example of a) secondary-market pricing. b) price skimming. c) bait pricing. d) prestige pricing. e) random discounting.

For customers, value is a function of the product's a) quality attributes. b) price. c) price and durability. d) quality and functional attributes. e) quality relative to the quality of competing brands.

For many consumers, the pages near the back of magazines with dozens of very small black and white advertisements exceed their a) channel capacity. b) threshold of awareness. c) decoding abilities. d) transmission limitations. e) noise limit.

General Mills used a panel of consumers to evaluate its Cheerios campaign featuring children who read the cereal box and try to persuade their parents to watch their cholesterol. These consumers judged the advertisements prior to the execution of the advertising campaign. This is an example of a(n) a) pretest. b) inquiry. c) recognition test. d) recall test. e) posttest.

Head nodding, winking, hand gestures, and arm motions are all forms of _________ communication. a) kinesic b) spacing c) proxemic d) touching e) tactile

Home Depot is interested in knowing how its efforts to act in a socially responsible manner through its Habitat for Humanity and disaster relief efforts have affected stakeholders' views of the company. Home Depot should conduct a(n) a) social audit. b) publicity audit. c) environmental audit. d) communications audit. e) environmental impact study.

If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should use a) penetration pricing. b) random discounting. c) captive pricing. d) price skimming. e) everyday low prices.

If a marketer of a perfume ad develops a commercial involving a man being attracted to a woman who wears a particular perfume, it is attempting to influence one's need for a) love and affection. b) safety. c) self-esteem. d) self-actualization. e) respect from others.

If promotion does not do its job of stimulating demand, then the a) price of the promoted product is likely to increase. b) price of the promoted product will remain reasonably stable. c) price of the promoted product will decrease. d) cost of promotion will decline. e) cost will remain about the same.

Maintaining or increasing market share a) can be achieved even if industry sales are flat or decreasing. b) is an infrequently used pricing objective in most industries. c) depends upon the overall growth of the total industry. d) is a profit-related objective based on price. e) is directly tied to leading an industry in product quality.

Markup is measured either as a percentage of _____ or a percentage of _____. a) selling price; cost b) cost; profit c) revenue; contribution margin d) resources used; cost e) demand; competition

OES Office Systems' use of fax machines to carry its advertising messages to its business customers is which component of the communication process? a) Communication channel b) Decoding process c) Encoding process d) Sharing of meaning e) Noise minimization

Often when a company introduces a new product or line extension, its promotion will focus on _____ in order to initiate the product-adoption process. a) creating awareness b) stimulating demand c) retaining loyal customers d) combating competitive promotional efforts e) identifying prospects

Pricing strategies and methods a) help direct and structure the selection of a final price. b) are the last decisions made for a new product. c) are the same for all of a company's products. d) are the most important decisions made for a product. e) require limited planning on the part of management.

Primary demand is defined as a) demand for a product category. b) demand for a new product. c) consumer awareness of a product category. d) stimulating demand for any products. e) demand for a particular brand.

Products such as light bulbs, canned soft drinks, and ice cream sandwiches are usually priced using a) multiple-unit pricing. b) reference pricing. c) price lining. d) bundle pricing. e) odd-even pricing.

Reba Vincent is employed as a consultant for Mary Kay Cosmetics. This illustrates a) personal selling. b) retailing. c) public relations. d) advertising. e) sales promotion.

Retro64 distributes free downloadable versions of its computer games for a short time. These efforts have a primary promotional objective of a) encouraging product trial. b) stimulating demand. c) identifying prospects. d) creating awareness. e) reducing sales fluctuations.

Sierra is driving to work on I-95 and notices a billboard for new salads at Wendy's. She reads the message and sees the pictures of the new salads. In this case, Sierra is the _____ and Wendy's is the _____ of this communication. a) receiver; source b) audience; promoter c) decoder; coder d) communicatee; communicator e) feedback; noise

Slow feedback, high absolute-dollar outlay, and difficulty in measuring effects on sales are disadvantages of which promotion mix ingredient? a) Advertising b) Public relations c) Sales management d) Sales promotion e) Personal selling

Some of the posttest methods for measuring advertising effectiveness are based on how well consumers remember advertising and include (1) recognition tests and (2) recall tests. What is the basic difference between these two approaches? a) The actual ads are shown in the former but not in the latter. b) The former method relies on memory alone, and the latter shows the actual ads. c) One uses a consumer jury; the other uses random individuals. d) The respondents are given class clues in the latter but not in the former. e) One is used primarily by the government, and the other is used by private businesses.

Subway decided to run its new commercials several times a day for three weeks and then not at all for two weeks. It will then run the commercials again for three more weeks. Subway is using a _____ schedule for its advertising. a) flighting b) varying c) continuous d) pulsing e) beating

The decision of Macy's to use even prices such as $60 for a Ralph Lauren Polo shirt is an application of odd-even pricing, and even prices are often used to a) give a product an upscale or exclusive image. b) show customers products are priced based on tradition. c) coordinate efforts with a promotional campaign. d) indicate prices have been cut to the last penny. e) facilitate comparison to competitors' prices.

The pricing strategy that assumes that demand is relatively inelastic over certain price ranges is called a) price lining. b) odd-even pricing. c) price skimming. d) prestige pricing. e) customary pricing.

The receiver's response to a message is ___________ for the source. a) feedback b) the communications channel c) noise d) channel capacity e) decoding

The use of a pull policy may require heavy expenditures for a) advertising and sales promotion. b) public relations and distribution. c) personal selling and public relations. d) distribution and advertising. e) sales promotion and personal selling.

Which of the following is not an advantage of using publicity-based public relations tools? a) Control by media personnel of the content and timing of messages b) Credibility c) Strong news value d) Follow-up word-of-mouth communications e) A favorable perception of being endorsed by the media

To determine how much money to spend on advertising, marketers for a new brand of caffeinated energy drink decided that they wanted the advertising to create awareness of the new flavor in 80 percent of the energy drink market within one month of introduction. The marketers then determined how much it would cost to reach this goal. This is an example of which one of the following approaches to determining advertising budgets? a) Objective-and-task b) Percent of sales c) Competition matching d) Arbitrary allocation e) Past-year comparison

Troy Products Company advertises a specific product heavily, and Carbone Products Company wants to offset the effects of that advertising. In this case, Carbone would most likely employ ___________ advertising. a) competitive b) pioneer c) institutional d) primary e) target

What design element is used to attract attention, communicate an idea quickly, or communicate ideas that are difficult to put into words? a) Illustrations b) Headlines c) Copy d) Layout e) Signature

What is an advertising platform most commonly based upon? a) The opinions of employees within the firm or the advertising agency b) Data collected from past marketing research about the brand c) Customer surveys about what they consider the most important issues d) Retailer information about potential consumers of the product e) The advertising appropriation for that particular ad campaign

What is the overall role of promotion? a) To stimulate product demand b) To identify prospects c) To retain loyal customers d) To encourage product trial e) To reduce sales fluctuations

When Hamburger Helper introduced its Oven Varieties, it gave special offers to supermarkets to purchase the new product and supplemented these offers with consumer advertising. Hamburger Helper's primary objective is to a) facilitate reseller support. b) reduce sales fluctuations. c) combat competitive promotional efforts. d) encourage product trial. e) retain loyal customers.

When McDonald's uses the Monopoly game in which customers receive game pieces with each visit and try to assemble a set of properties to win prizes, McDonald's is utilizing a) sales promotion. b) advertising. c) guerilla marketing. d) personal selling. e) public relations.

When a company prices one item in a line low with the intention of selling a higher-priced item in the same line, it is using a) bait pricing. b) a price leader. c) penetration pricing. d) price lining. e) captive pricing.

When deciding on its advertising allocation for the coming year, State Farm Insurance could choose to spend the same amount as Safe Auto, another auto insurance company. This method of advertising appropriation is known as the _________________ approach. a) competition-matching b) arbitrary c) objective-and-task d) goals e) percent-of-sales

When products in an industry are relatively homogeneous and price is a key purchase consideration, a) competition-based pricing becomes more important. b) demand-based pricing dominates pricing decisions. c) firms tend to use secondary-market pricing. d) cost-based methods like markup pricing are dominant. e) customary pricing is often used.

When the CEO or chief financial officer of a company states how much the company should spend on advertising for the coming period, the company is using the a) arbitrary approach. b) executive decision process. c) objective-and-task approach. d) percentage-of-sales approach. e) competition-matching approach.

Which of the following industries is most likely to employ combative promotional efforts? a) Fast food b) Computer processors c) Tax-preparation services d) Television producers e) Automotive paints

Which of the following is the most commonly used type of publicity-based public relations tool? a) News release b) Captioned photograph c) Feature article d) Press conference e) Letter to the editor

Which of the following is the most important consideration when choosing an event to sponsor? a) Reasonable association between the event and the company's product b) The length of the event c) When the event occurs d) Whether or not the event is a national event e) The specific name of the event

Which of the following pricing strategies often results in a retailer losing money on the product? a) Price leader b) Psychological discounting c) Penetration pricing d) Special-event pricing e) Ethical pricing

Which of the following statements about markup pricing is correct? a) The use of similar markups reduces price competition. b) Markup pricing is inconvenient to use. c) Markup pricing results in a high price when demand is high and a low price when demand is low. d) Markup pricing is a demand-based pricing method. e) Using markups makes pricing a time-consuming, difficult process.

Which of the following target market characteristics are most important to consider before determining the promotion mix ingredients? a) The size, geographic distribution, and demographic characteristics b) The cultural diversity and population size c) The age, sex, religion, and race characteristics d) Existing product adoption categories e) Existing levels of price consciousness

Which pricing objective de-emphasizes price and can lead to a climate of nonprice competition in an industry? a) Status quo b) Return on investment c) Market share d) Survival e) Cash flow

Which type of pricing objective can reduce a firm's risk by helping to stabilize demand for its products? a) Status quo b) Market share c) Survival d) Cash flow e) Return on investment

74. A marketer sometimes uses temporary price reductions to a) increase the number of competitors. b) gain market share. c) decrease volume sold. d) increase revenue per item. e) control demand.

103. Which of the following prohibits price discrimination that lessens competition among wholesalers and retailers? a) Sherman Antitrust Act b) Robinson-Patman Act c) Lanham Trademark Act d) Federal Trade Commission Act e) Wheeler-Lea Act

111. Although Maybelline would like to use ______ as a consumer sales promotion method, this method has extremely high labor costs that are more affordable for higher-end make-up companies such as Clinique and Estée Lauder. a) frequent-user incentives b) demonstrations c) coupons d) rebates e) consumer contests

111. Justin Caprese phones Ben Kirkland of Southside Furniture to inform him that if he will increase his recent order of 15 mattress sets to 20, he will receive a 14 percent price reduction. This offer is due to a recent overstock condition at the factory and will not be available in the future. The discount offered here is a) cash. b) noncumulative. c) seasonal. d) trade. e) cumulative.

114. ___________ are items offered free or at minimal cost as a bonus for purchasing a product. a) Rebates b) Premiums c) Samples d) Merchandise allowances e) Coupons

116. If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges, the retailer is paying a(n) ___________ price. a) F.O.B. destination b) F.O.B. factory c) transfer d) postage-stamp e) base-point

123. To break even, Concession Supply should sell ___________ cases of hot dogs per day at Wrigley Field. a) 13 b) 120 c) 40 d) 200 e) 60

126. A television advertisement for Miracle-Gro lawn fertilizer indicates that the product is available at Kmart and Wal-Mart. This form of sales promotion is called a(n) a) cooperative advertising. b) dealer listing. c) push money. d) dealer loader. e) advertising allowance.

132. Sean selects several motorcycle stores who are not currently his customers. He then obtains and analyzes information about the current brands of motorcycle accessories they stock, their sales trends, and credit history. Sean is engaged in which of the following? a) prospecting. b) the preapproach. c) approaching the customer. d) making the presentation. e) overcoming objections.

135. Kerry and the other salesforce members are best described as a ______________ sales force. a) technical b) missionary c) trade d) field e) pioneer

20. The greatest amount of responsibility for providing customer satisfaction falls on the shoulders of a) chief executive officers. b) salespeople. c) sales managers. d) quality control experts. e) marketing directors.

20. Which of the following is the most flexible variable in the marketing mix? a) Product b) Price c) Advertising d) Personal selling e) Distribution

23. In conducting an assessment of her accounting firm, Pauline Santana discovers the following annual results: average charge per customer = $250; rent = $12,000; total billings = $150,000; employee compensation and benefits = $60,000; and other costs = $110,000. Given these results, Mary's profits would equal a) a loss of $20,000. b) a loss of $32,000. c) $28,000. d) $40,000. e) $222,000.

28. A danger associated with engaging in price competition is that competitors can also change prices quickly and aggressively, which can result in a(n) _____ that will be harmful to both companies. a) reduction in cost b) price war c) competitive draw d) industry collapse e) advertising battle

28. Carlos generally makes cold calls on businesses to look for new prospects. He has many satisfied customers, but like many salespeople, he does not frequently utilize one of the best ways to find new prospects, which is through a) telephone directories. b) customer referrals. c) trade shows. d) local restaurants. e) other employees.

29. Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing a) product competition. b) nonprice competition. c) brand differentiation. d) price competition. e) competitor differentiation.

31. Tim has just finished compiling a list of potential customers and evaluating their ability, willingness, and authority to buy. He knows his next step in the personal selling process is to a) approach. b) preapproach. c) make the presentation. d) prospect. e) overcome objections.

32. A product under nonprice competition would most likely not succeed in the market if a) a new advertising campaign is established for it. b) it is easy to duplicate. c) it is packaged differently from similar products. d) it is priced near the competitors' price. e) its quality has been upgraded.

32. Before contacting prospects, a salesperson for an industrial cleaning equipment company analyzes information about the prospects' product needs, feelings about brands, and personal characteristics. This process is called a) prospecting. b) preapproach. c) approaching the customer. d) sales training. e) sales planning.

34. Garrett Almar tells a fellow buyer at Robins Wholesale Parts that the last salesperson who called on him before lunch was a real loser: "He has done a poor job of ___________. He didn't even know what brands we carry or what types of retailers we service!" a) prospecting b) preapproach c) follow-up d) presenting e) approach

35. For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded. a) inelastic b) inverse c) positive d) unknown e) elastic

41. Which of the following products is most likely to have an inverted C-shaped demand curve? a) Levi jeans b) Giorgio perfume c) Maxwell House coffee d) Pillsbury cake mix e) Ford Taurus

45. While anticipating objections and countering them before they are asked is a good idea, one negative consequence of doing so is that the salesperson may a) annoy the customer. b) mention objections the customer had not thought of. c) take too long in trying to sell the product, and the customer may stop listening. d) not emphasize its features and benefits enough. e) begin to lie about the product.

47. The _____ stage of the personal selling process is when the salesperson asks the prospect to buy the product. a) proposal b) closing c) overcoming objections d) approach e) trial

53. Costs that vary directly with changes in the number of units produced or sold are called a) changeables. b) variable costs. c) direct costs. d) fixed costs. e) marginal costs.

54. Creative selling, which requires that salespeople recognize a potential buyer's needs and then provide the prospect with the necessary information, is performed by a) order takers. b) order getters. c) missionary salespeople. d) trade salespeople. e) technical salespeople.

56. Order-getting activities are divided into two categories: a) missionary sales and technical sales. b) current-customer sales and new-business sales. c) order takers and trade sales. d) current sales and support sales. e) inside order sales and field order sales.

57. Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's a) average revenue. b) marginal revenue. c) price elasticity. d) average variable revenue. e) average total cost.

60. Michelle works for a company that sells rotisseries for chicken and other foods. She answers phone calls from customers who see infomercials on TV and call to order the product. Michelle is considered a(n) a) order getter. b) inside order taker. c) support person. d) field order taker. e) trade salesperson.

62. The point at which the costs of producing a product equal the revenue earned from selling the product is a) elasticity of demand. b) the breakeven point. c) variable costs. d) price elasticity. e) the sum of fixed and variable costs

65. If the product price is $100, average variable cost $40 per unit, and the total fixed costs are $120,000, what is the breakeven point? a) 500 units b) 2,000 units c) 1,200 units d) 300 units e) 3,000 units

67. A certain location of O'Charley's Restaurant has annual fixed costs of $200,000. If an average tab at the restaurant is $60 and the variable costs per tab is $20, how many groups of customers must O'Charley's serve per year in order to break even? a) 2,000 b) 5,000 c) 10,000 d) 3,333 e) 2,500

67. Daphne King of Cleborn Pharmaceuticals tells a sales management class at the state university that her job is to call on doctors and explain the benefits of new prescription drugs that her firm develops. Daphne would call herself a(n) a) technical salesperson. b) missionary salesperson. c) order taker. d) order getter. e) trade salesperson.

73. A company trying to position itself as value oriented should not a) set prices that are reasonable relative to product quality. b) use premium pricing for its products. c) set prices similar to those of its competitors. d) use any advertising for its products. e) consider costs when determining the price of products.

76. All of the following are key areas of sales force management except a) compensating salespeople. b) coordinating sales promotion efforts. c) recruiting salespeople. d) training sales personnel. e) motivating sales personnel.

78. Sales force objectives are generally established for a) the organization as a whole only. b) the total sales force and for each salesperson. c) just each salesperson but not the whole sales force. d) for each department or division of the company. e) long-term but not short-term salespeople.

83. Which of the following products is most likely to involve personal selling? a) Blenders b) Riding lawn mowers c) Fresh peaches d) Picture frames e) Footballs

89. Salespeople receive a set salary plus a commission based on sales with a a) straight salary compensation plan. b) combination compensation plan. c) cafeteria plan. d) straight commission compensation plan. e) salary plus bonus program.

92. If a manager tries to form territories with equal sales potential, the territories will usually be unequal in geographic size; this will cause the salespeople with larger territories to a) develop larger income potentials. b) have to work longer and harder to generate a certain sales volume. c) work about the same amount, since potential is the same. d) have much larger sales than those salespeople with smaller territories. e) be limited to a smaller income potential.

97. Monopolies usually keep their prices at a level that generate a reasonable, but not excessive, return primarily because a) they want to avoid new competitors entering their market. b) they want to avoid government regulations on their pricing. c) they try to satisfy the demands of value-conscious consumers. d) firms can increase market share more rapidly this way. e) customers will discontinue use of these products if prices rise.

A consumer contest is an example of a) personal selling. b) sales promotion. c) advertising. d) indirect selling. e) public relations.

A consumer jury is a a) group of consumers who have purchased the product before that evaluate its effectiveness. b) panel of potential buyers of the advertised product brought together to pretest an advertising message. c) panel of buyers who review and evaluate an advertising message after it has been circulated in certain regions. d) group of consumers who determine whether or not other consumers have been treated fairly by companies. e) panel of consumer experts who rank the effectiveness of advertisements.

A list of the exact magazines, newspapers, and television stations in which an advertisement will appear, along with the dates and times, is a(n) a) advertising plan. b) media plan. c) advertising message. d) advertising appropriation. e) media platform.

A penetration pricing strategy is particularly appropriate when demand is a) increasing. b) highly elastic. c) highly inelastic. d) decreasing. e) inefficient.

A person, group, or organization that has a meaning it intends and attempts to share with a receiver or an audience is a a) communications channel. b) source. c) relay channel. d) decoder. e) sender.

Pioneer promotion is most likely to be used during the _____ stage of the product life cycle. a) maturity b) decline c) growth d) introduction e) presentation

Advertising appropriations are largest for which type of product? a) Business products b) Convenience goods c) High-priced products d) Specialty goods e) Infrequently purchased goods

Advertising that lets consumers know that an established brand still offers certain uses, characteristics, and advantages is _____ advertising. a) repetitive b) reminder c) pioneer d) competitive e) reinforcement

After developing the budget for advertising GEO automobiles, marketing managers at General Motors then determined what proportion of that budget would be spent on magazine, television, and radio advertisements based on the cost effectiveness of each. This subsequent allocation of the budget is known as a(n) _________ plan. a) advertisement-allocation b) media c) arbitrary allocation d) objective-and-task e) percent-of-sales

Amtrak prices its tickets so that it is less expensive to travel on weekends than during the week when there is heavy business travel. This illustrates ___________ pricing. a) cost-plus b) demand-based c) competitive d) secondary markup e) seasonal

Artwork, a major part of most advertisements, consists of the a) illustration and the signature. b) illustration and the layout. c) illustration and type of print used in the headlines. d) layout and the signature. e) method by which all the components are put together.

Blockbuster offers its customers a Blockbuster Rewards Card that allows them to rent every sixth movie free and provides various discounts throughout the year. The primary promotional objective of programs such as this is a) encouraging product trial. b) retaining existing customers. c) stimulating demand. d) combating competitive promotional offers. e) reducing sales fluctuations.

Brandon walks around behind purchasing agent Shannon Wise as she looks at the pamphlet describing Hyster's new conveyer system. Shannon stands up and walks to a table on the other side of her office. Brandon follows, but he does not understand the ___________ communication Shannon is sending. a) tactile b) proxemic c) kinesic d) verbal e) promotional

Brands that are promoted through comparative advertising are most likely to be a) market leaders. b) brands that are attempting to compete with market leaders. c) primarily services rather than tangible goods. d) attempting to compete on a nonprice basis. e) competing in a less competitive market.

Bundle pricing may be perceived to be of value by customers because a) they always pay a lower price per item than they would have if they bought each item separately. b) they prefer buying a combination of bundled products in a single transaction, which saves time, effort, and perhaps money. c) the companies selling the products can sell them at a lower price because their costs of packaging are lower. d) they are purchasing complementary products, which is convenient for them. e) they can purchase items that are consumed frequently in larger quantities.

Channel capacity is determined by the a) most efficient component of the communication process. b) least efficient component of the communication process. c) source. d) receiver. e) meanings of the message.

Chelsea Collins walks her client, Kaptain Korn president Steve Gonski, through her agency's proposed television campaign for the product's introduction. In doing so, she moves from square to square on the a) copy. b) storyboard. c) illustrations chart. d) artwork. e) media plan.

Companies that focus on particular product categories and rely on everyday low pricing to acquire a large market share through aggressive and competitive pricing strategies are often referred to as a) pioneers. b) category killers. c) comparison discounters. d) price leaders. e) category leaders.

Coors advertises that its beer is the only one that is kept cold from the brewery to the store. This type of advertising is called a) pioneer. b) competitive. c) comparative. d) defensive. e) institutional.

Cost efficiency, repetition, and adding product value are all potential benefits of a) public relations. b) advertising. c) personal selling. d) promotion. e) guerilla marketing.

During the decoding process, the a) intensity of the transmission becomes stronger. b) receiver attempts to convert signs or symbols into concepts and ideas. c) source attempts to convert signs or symbols into concepts and ideas. d) source converts meaning into a series of signs or symbols that represent ideas or concepts. e) receiver filters noise from the feedback.

Effective management of integrated marketing communications is based upon a) consumer attitudes towards promotion. b) information about customers. c) the communication process model. d) budgetary allowances. e) the firm's organizational structure.

Frederick Griffith of Griffith's department stores tells his marketing director that he is tired of the constant price-centered advertising by the firm's agency. "We have the best customer service in town, and I feel that is what we should be hanging our hats on," he states. This statement is most appropriate for use in which of the following stages of campaign development? a) Determining the appropriations b) Creating the platform c) Identifying the target d) Defining objectives e) Developing the media plan

Gambrell Designs thinks its new product, the Automatic Dog Walker, will have a short product life cycle; therefore, its marketing department sets its primary pricing objective as a) market share. b) cash flow. c) profit. d) product quality. e) status quo.

Glenwood's closest competitor, The Hearthstone Pet Hospital, currently charges $60 for each basic office visit. If Glenwood were to price its basic office visit at $45, it would most likely be employing which of the following? a) customary pricing. b) penetration pricing. c) prestige pricing. d) price skimming. e) cost-based pricing.

High-priced products usually depend heavily on which promotion mix ingredient? a) Advertising b) Personal selling c) Public relations d) Sales promotion e) Telemarketing

Hunt's decided to put a much larger share of its promotion budget into ___________ because of the heavy reliance it will be placing on coupons in the second quarter. a) advertising b) sales promotion c) public relations d) telemarketing e) personal selling

If Kroger Food Stores advertises 2-liter bottles of Pepsi for 89 cents to generate store traffic that will purchase other items at regular prices, the grocer is using a) reference pricing. b) a price leader. c) special-event pricing. d) comparison discounting. e) professional pricing.

If Nabisco had established a pricing objective of selling one out of every three crackers consumed in the world, it would have established an objective based on a) cash flow. b) market share. c) survival. d) return on investment. e) dollar sales volume.

If Ray-Ban selected the prices for its new sunglasses to be $60, $70, or $80, this would most likely be an example of using __________ pricing to enhance its distinctive positioning strategy. a) product-line b) odd-even c) professional d) promotional e) penetration

If a business decides to reduce its prices once in a while on an unsystematic basis, it is using a) price reduction planning. b) random discounting. c) bait pricing. d) periodic discounting. e) penetration pricing.

If a company calls a meeting to announce a major news event, this is known as a a) media call. b) press conference. c) news release. d) press release. e) public service announcement.

If a manufacturer decides to use a push policy to promote its products, it is most likely to focus its efforts on a) retailers. b) wholesalers. c) ultimate consumers. d) other producers. e) institutional users.

If a product is priced based on how many or how few people want it at a particular time and place, ______ pricing is being used. a) markup b) demand-based c) competitive d) peak e) differential

If the manufacturers of Whizz were to partner with Whirlpool to place a bottle of Whizz in each new washer that is purchased during the first year, this would be an example of a) advertising. b) sales promotion. c) viral marketing. d) packaging. e) publicity-based public relations.

If the push policy is used in promoting a product, the firm a) promotes directly to consumers. b) promotes only to the next marketing institution down the marketing channel. c) promotes the product to wholesalers only. d) promotes the product to retailers only. e) will be assured of having an effective promotional mix.

In one corner of its magazine advertisement for office copiers, Epson places a small box asking for the names and addresses of individuals or companies seeking more information. Epson has included this box to facilitate ___________ for this communication. a) decoding b) feedback c) encoding d) perceptual attention e) noise reduction

Lexmark sells some of its color printers for about $100, but the refill cartridges cost over $30 each. Lexmark's pricing strategy would be best labeled as a) bait pricing. b) captive pricing. c) customary pricing. d) price lining. e) complementary pricing.

Marketers improve their ability to establish prices appropriately when a) there is nonprice competition. b) they know prices charged for competing brands. c) their products are of better quality than the competition's. d) the main objective is image building. e) using psychological pricing.

Marketers must take steps to make sure that the pricing objectives they set are consistent with the organization's ___________ objectives and ___________ objectives. a) advertising; marketing b) overall; marketing c) marketing; promotional d) overall; promotional e) overall; revenue

Marketers of highly seasonal products tend to have more irregular use of a) advertising. b) sales promotion. c) public relations. d) personal selling. e) marketing.

One of the biggest problems associated with ___________ as an element of promotion is the high absolute dollar outlay often required. a) personal selling b) advertising c) public relations d) sales promotion e) packaging

Promotion can help keep prices lower because a) demand for the product does not increase. b) promotion of prices intensifies price competition. c) promotion of prices leads to nonprice competition. d) promotion tends to reduce consumers' price sensitivity. e) promotion tends to stabilize a product's price elasticity of demand.

Promotion tends to a) create needs. b) capitalize on existing needs. c) be overly focused on the self-actualization needs. d) overemphasize physiological and safety needs. e) avoid focusing on people's needs.

Promotional efforts designed to reduce the risk to consumers for using a product for the first time seek to a) stimulate demand. b) encourage product trial. c) create awareness. d) combat competitive promotional efforts. e) retain loyal customers.

Public relations a) should be used mostly to counteract any competitive promotions or negative publicity. b) is an element of promotion that should be handled on a continuous basis. c) should be used solely to respond to emergencies that could significantly damage the company's reputation. d) is paid communication that helps enhance a company's image by highlighting its philanthropic efforts. e) is generally not given much weight because the information is generated by the company itself.

Ray-Ban's plan of gathering information about the other brands sold in department stores, including their prices, would most likely be used in a __________ basis for pricing. a) Cost b) Competition c) Demand d) Customer e) Market

Recognition and recall tests are posttest methods based on a) mail surveys. b) memory. c) inquiries. d) preferences. e) in-depth interviews.

Research indicates that both market share and ___________ are good indicators of profitability. a) low pricing b) product quality c) limited competition d) sales growth e) ROI pricing

Selective demand is demand for a a) general type of product. b) particular brand. c) new product. d) competitor's product. e) service.

Sony management decided to use skimming as a pricing strategy for its newest line of high-definition television (HDTV) sets. It should be aware that this strategy does not a) generate capital to cover research and development costs. b) discourage competitors from entering the market. c) provide flexibility in the introductory base price. d) protect the firm from covering costs if prices are set too low. e) reduce the stress that may be placed on the firm's production capabilities.

Sweepstakes, free samples, coupons, and rebates are examples of a) advertising. b) sales promotion techniques. c) publicity. d) personal selling techniques. e) packaging methods.

The advertising mentioned above in which Toyota features all brands of the company would be an example of a) competitive advertising. b) institutional advertising. c) comparative advertising. d) pioneer advertising. e) product advertising.

The coordination of promotion and other marketing efforts for maximum informational and persuasive impact defines a) communication. b) integrated marketing communications. c) tactile communication. d) kinesic communication. e) proxemic communication.

The cost per thousand (CPM) indicator shows a) the cost to expose 1,000 people to a television commercial. b) the cost to expose 1,000 people to a one-page magazine advertisement. c) the return on investment marketers get for their advertising dollar. d) the cost to expose a million people to any type of advertisement. e) how one media source compares to a different source for reaching target markets.

The identification of an advertisement's sponsor is the a) copy. b) signature. c) trademark. d) layout. e) subheadline.

The individual or group that decodes a coded message is called a a) sender. b) receiver. c) source. d) decoder. e) receptor.

The makers of Whizz have decided to go to several different colleges and have a contest for the dirtiest shirt. While at the colleges, they will set up several washing machines near the campus bookstore, demonstrating the power of Whizz to get these dirty shirts clean. Each contestant in the dirtiest shirt contest will receive a coupon for a free bottle of Whizz. The winner of the contest will receive a $50 gift card for the college bookstore. This method of promotion is an example of _____, and is used to stimulate _______ demand. a) viral advertising; primary b) sales promotion; selective c) sales promotion; primary d) product placement; selective e) product placement; primary

The message that a source originally encodes and the meaning a receiver ultimately decodes a) contain circular feedback. b) may be different because of noise. c) are usually exactly the same. d) rarely are similar because of feedback. e) are collectively termed the communications channel.

The pricing of Clinique makeup considerably higher than brands such as Cover Girl, Revlon, and Maybelline is used to communicate ______, which is the company's primary pricing objective. a) market share b) product quality c) status quo d) profitability e) cash flow

The total amount of money a marketer allocates for advertising for a specific time period is the a) marketing budget. b) advertising appropriation. c) objective-and-task approach. d) promotion grant. e) finances for advertising.

The two major types of product advertising are a) institutional and advocacy. b) pioneer and competitive. c) competitive and comparative. d) advocacy and competitive. e) informative and comparative.

The use of heavy advertising in the promotion mix is least likely to occur in which product life cycle stage? a) Introduction b) Decline c) Maturity d) Growth e) Plateau

The verbal portion of an advertisement, including headlines, body, and signature, is called the a) artwork. b) copy. c) storyboard. d) layout. e) script.

Toyota's sponsorship of a major Professional Golf Association tournament would be an example of a(n) ______ tool. a) advertising b) public relations c) sales promotion d) publicity e) personal selling

When Blue-ray disc players were first introduced to the market, what would the logical choice for promotion have been? a) Selective demand b) Pioneer promotion c) Comparative promotion d) Primary demand promotion e) Retention promotion

When Mia and Shane are planning their honeymoon, their travel agent tells them that if they buy a special package, their trip to Paris will include meals, tickets to the theater, and a rental car in addition to airfare and a hotel. This is an example of the use of a) multiple-unit pricing. b) bundle pricing. c) prestige pricing. d) price lining. e) price packaging.

When a source converts meaning into a series of signs or symbols representing ideas or concept, the source is undergoing a) communication. b) the coding process. c) the decoding process. d) the conversion process. e) communications channel.

When an organization sets a number of prices for selected groups of merchandise, this is commonly referred to as a) prestige pricing. b) price lining. c) customary pricing. d) odd-even pricing. e) ethical pricing.

When an organization uses an advertising agency, who usually develops the advertising campaign? a) The agency's specialists b) The firm and the agency working jointly c) The agency suggests ideas and the firm chooses among them d) The advertising department within an organization e) An individual or a few persons within the firm

When determining markup as a percentage of cost, divide the markup amount by a) price. b) cost. c) quantity. d) revenue. e) 100.

When establishing prices, a marketer's first step is to a) determine demand. b) develop pricing objectives. c) select a pricing policy. d) evaluate competitors' prices. e) determine a pricing method.

When individuals' behaviors are tracked from television sets to checkout counters using equipment provided by the marketer, this is known as a) family behavior recording. b) single-source data. c) individual consumer jury. d) advertisement exposure data. e) detailed market research.

Which of the following are personal informal exchanges of communication that customers share with one another about products, brands, and companies? a) Guerilla communication b) Word-of-mouth communication c) Buzz marketing d) Viral marketing e) Conversational promotion

Which of the following statements applies to media planning? a) Characteristics of the product are the most important consideration in selecting the media for a campaign. b) The message content affects the types of media used for an advertising campaign. c) The location of the advertising target is irrelevant in media planning. d) Total media dollars spent on advertising have decreased over the last 30 years. e) Regardless of the message to be conveyed, newspapers are one medium that is appropriate for almost any circumstances.

Which of the following would be used in setting the price of a new product if considerable competition is expected? a) Psychological pricing b) Penetration pricing c) Odd-even pricing d) Price skimming e) Prestige pricing

Why is the headline of a print advertisement such a critical component of the copy? a) It determines the final layout design. b) It is often the only part of the advertisement that is read. c) It takes up the most space. d) It links the copy to the signature. e) It links the artwork to the signature.

___________ is communication in news story form about an organization or its products that is transmitted through a mass medium at no charge. a) Advertising b) Publicity c) Public relations d) Sales promotion e) Personal selling

17. The oldest form of exchange—trading of products—is known as a) credit. b) buying. c) purchasing. d) barter. e) pricing.

___________ links the purchase of an organization's products to support of philanthropic organizations favored by the target market. a) Promotion b) Cause-related marketing c) Charity-related promotion d) Selective demand promotion e) Charitable nonprofit marketing

70. The type of salesperson that usually requires training in physical science or engineering is the a) trade salesperson. b) missionary salesperson. c) technical salesperson. d) order taker. e) order getter.

101. Both the Federal Trade Commission Act and the Wheeler-Lea Act prohibit a) freezing prices. b) independent pricing policies. c) deceptive pricing. d) price fixing. e) price differentials.

102. Which of the following is not a reason why the proportion of promotional dollars spent on sales promotion has increased in recent years? a) Retailers have become more powerful relative to manufacturers and are demanding more trade sales promotion efforts. b) Because of an increased focus on value, consumers are more responsive to promotional offers. c) The greater emphasis on improving long-term performance has resulted in an increased use of sales promotion methods. d) Sales promotions aimed at convincing customers to change brands are more effective because of declines in brand loyalty in general. e) All of these are reasons for the increasing proportion of promotional dollars being spent on sales promotion efforts.

108. Which of the following is most likely to stimulate customer loyalty? a) Coupons b) Sweepstakes c) Frequent-user incentives d) Samples e) Premiums

109. Jamba Juice offers its customers a stamp card that allows them to receive a free smoothie after they have filled an entire card. This is an example of a a) free sample. b) rebate. c) frequent-user incentive. d) premium. e) consumer contest.

110. A deduction from list price for purchasing large quantities aggregated over a stated period of time is a a) noncumulative quantity discount. b) additive cash discount. c) cumulative quantity discount. d) cumulative discount allowance. e) additive quantity reduction.

115. At one time, Wheaties offered two free golf balls with the purchase of a twin pack of Wheaties cereal featuring Tiger Woods. This is an example of a a) consumer prize. b) rebate. c) premium. d) free sample. e) free merchandise.

120. A temporary price reduction to resellers for purchasing specified quantities of a product is a) premium money. b) a merchandise allowance. c) a buying allowance. d) a buy-back allowance. e) a money refund.

120. When Cadillac buys headlights from Delco (both of which are divisions of General Motors), ___________ pricing occurs. a) base-point b) zone c) transfer d) uniform geographic e) matrix

121. Sometimes retailers are offered temporary price reductions for purchasing specified quantities of a product. These offers are used to provide an incentive to handle a new product, to achieve a temporary price reduction, or to stimulate the purchase of an item in large quantities. What is this sales promotion? a) Push money b) Buy-back allowance c) Buying allowance d) Cents-off offer e) Money refund

129. Aaron Epstein tells his fellow retail salesperson at Zales Jewelers that during the second quarter he is going to sell all the Alance watches he can and use his extra earnings to go to Cancun. He exclaims, "Can you believe the __________ program they have on for this quarter?" a) buying allowance b) merchandise allowance c) push money d) dealer loader e) sweepstakes

129. If BASF were to employ pricing that includes the price at the factory plus freight charges from a chosen point nearest the buyer, this would be an example of ___________ pricing. a) factory plus b) dispersion c) base-point d) freight absorption e) uniform geographic

130. While sales contests can motivate employees at all levels to participate, a disadvantage of this method of sales promotion is that a) they are often too complicated. b) they are not taken seriously by the employees. c) people often discontinue their positive behavior after the contest is over. d) many point-of-purchase display materials are needed to implement a contest. e) people often feel they are not being recognized enough.

133. Sean has narrowed his list and is preparing a packet of information about Jafrum and its products to send to the prospects. He also includes a letter of introduction and says he will contact them within the next two weeks to set up a sales visit. In this scenario, Sean is all of the following except a) a trade salesperson. b) a field order taker. c) a missionary salesperson. d) an order getter. e) a new business salesperson.

134. Currently, Sean's compensation is based on the ________ plan, however he is considering changing to the _________ plan. a) straight salary; salary plus commission b) straight commission; straight salary c) salary plus commission; straight commission d) salary plus bonus; straight bonus e) straight bonus; straight commission

137. Which of the following are consumer sales promotion methods that Presto is using for the new stovetop grill? a) television commercials and the customer contest b) television commercials and the in-store rebate c) the customer contest and the in-store rebate d) the sales force contest and the in-store rebate e) the sales force contest and the customer contest

17. A major disadvantage of personal selling is that it a) is not remembered as well by consumers as advertising messages are. b) cannot easily adjust the message to satisfy a customer's information needs. c) is very expensive per contact. d) does not provide immediate feedback. e) is not compatible with other promotional activities.

21. What equation shows organizations the relationship between price and profit? a) Total Variable Costs + Total Fixed Costs = Sales - Profit b) Price = Profit per Item x Number of Units Sold c) (Price x Quantity Sold) - Total Costs = Profits d) (Price - Profits) x Total Costs = Sales e) Total Costs = (Price x Quantity Sold) - Profits

27. Advertisements for Suave shampoos emphasize that other shampoos may cost more but don't work any better than Suave. In this example, Suave is competing on the basis of a) service. b) market share. c) price. d) selection. e) packaging.

30. One advantage of nonprice competition is that a) a firm can react quickly to competitive efforts. b) market share becomes less important. c) a firm can build customer loyalty. d) marketing efforts are completely eliminated. e) pricing is no longer a factor.

35. Rick has reviewed a prospect's account and credit history, identified product needs, and gathered the appropriate literature. He feels he is ready for the ____ step of the personal selling process. a) prospecting b) presentation c) approach d) preapproach e) closing

37. Creating a favorable impression and developing rapport with prospective customers is a critical part of the ______ step of personal selling. a) following up b) making the presentation c) approach d) prospecting e) preapproach

39. What does the demand curve for a prestige product look like? a) It is a straight line where the quantity sold continues to increase as the price of each product increases. b) It is a curve where the highest and the lowest prices yield the greatest quantity sold and mid-range prices produce the fewest sales. c) It forms a curve where the greatest quantity sold comes at a medium price and the quantities fall as the price increases or decreases. d) It forms a straight vertical line because of the prestige of the product, and quantity sold will remain stable regardless of the price. e) It slopes from left to right at a very mild slope; that is, as quantity increases, price decreases slowly.

40. If Seagram's marketers found that the firm's Crown Royal bourbon was a prestige product and raised its price, which of the following would most likely happen? a) The quantity demanded would immediately fall. b) The quantity demanded would always increase. c) Above some price level, the quantity demanded would begin to decrease. d) The demand curve for the product would always shift to the right. e) The demand curve for the product would always shift to the left.

41. Sherry Sullivan, Kevin Miller's sales manager, points out to him that his last shopper in the housewares department didn't seem involved as he explained the new food processor to her. She suggests that he use a ___________ as part of his presentation next time. a) video b) referral c) demonstration d) trial close e) qualification

43. If Carnival Cruise Lines increased the price of its seven-day cruise package by 10 percent and, as a result, experienced a 20 percent decline in customer bookings, Carnival's demand would be a) steady. b) inelastic. c) elastic. d) prestige. e) marginal.

44. Which of the following is most likely to have an inelastic demand curve? a) Automobile b) Vacation c) Nonelective surgery d) Recreational vehicle e) Computer

48. When a salesperson asks the customer to buy the product several times throughout the sales presentation in an effort to uncover hidden objections, it is called a) order taking. b) new-business selling. c) trial closing. d) order getting. e) overcoming objections.

52. Which of the following is most likely to be a fixed cost? a) Component parts b) Raw materials c) Rent d) Electricity e) Transportation

57. A person who primarily seeks repeat sales is called a(n) a) current customer order getter. b) order recorder. c) order taker. d) follow-up salesperson. e) missionary salesperson.

58. The two groups of order takers in personal selling are a) current customer salespeople and new-business salespeople. b) missionary salespeople and trade salespeople. c) inside order takers and field order takers. d) trade salespeople and technical salespeople. e) advisory order takers and support order takers.

59. When marginal cost is equal to marginal revenue, the firm should a) produce more to increase profits. b) produce less to decrease total costs. c) stop producing additional units to maximize profits. d) provide discounts to encourage purchases. e) intensify distribution to increase sales.

61. A sales representative for Coca-Cola travels to various restaurants to determine how much syrup the customer needs for the coming period. This sales representative would be classified as a(n) a) order getter. b) inside order taker. c) field order taker. d) missionary salesperson. e) trade salesperson.

64. To determine the breakeven point in units, divide the fixed costs by a) total costs. b) variable costs time price. c) price minus variable costs. d) price per unit. e) total revenue minus fixed costs.

65. Assisting the producer's customers in selling to those customers is the major purpose of which type of salesperson? a) Trade salesperson b) Technical salesperson c) Missionary salesperson d) Order getter e) Order taker

68. The Highland Racquet Club found that with annual fixed costs of $60,000, its breakeven point is 2,000 members when the membership charge is $60 per person per year. What is the variable cost per person for Highland? a) $45 b) $50 c) $30 d) $25 e) $40

70. What assumption does breakeven analysis make that limits its overall usefulness? a) It focuses on how to achieve a price objective. b) It assumes a company wants to gain a certain market share. c) It relies on demand for a product being inelastic. d) It focuses only on competitive factors and not costs. e) It assumes demand is elastic for the product.

72. Ryan Amerson leads his company's clients through the installation procedure of their new industrial equipment. He also helps answer their questions about product characteristics and system design both before and after their purchases. Ryan is a a) trade salesperson. b) missionary salesperson. c) technical salesperson. d) systems engineer. e) field order taker.

72. Which of the following is not a major factor for firms making price decisions? a) Costs b) Competition c) Previous sales d) Channel member expectations e) Legal and regulatory issues

77. In the long run, the J. F. Smucker Company must view ___________ as the absolute lowest price for its Jif brand peanut butter. a) a 10 percent return on investment b) product development costs c) total costs d) advertising expenditures e) Nestlé's prices

78. To maintain market share and revenue in an increasingly price-sensitive market, companies have focused on quality, used labor-saving technologies, and used efficient manufacturing processes. These tactics have provided gains in productivity that have translated into ___________ for the consumer. a) higher costs for the company and higher prices b) higher costs for the company and lower prices c) lower costs for the company and lower prices d) lower costs for the company and higher prices e) no change in the costs for either the company or

79. Which of the following is the best example of a well-stated sales objective? a) Companywide sales should increase by 25 percent. b) Each salesperson should increase his or her client group by 10 percent. c) Each salesperson should bring in $25,000 in new sales by November 15. d) The sales force should increase the market share in all markets by December 1. e) Each salesperson should increase the number of calls they make by 20 percent.

81. The type of prices most likely to appear in advertising is a) prestige. b) future. c) bargain. d) internal reference. e) cost-plus.

82. The types of prices that appear least often in ads are ___________ prices. a) reference b) discount c) premium d) comparison e) sale

83. Recruiting and selection of salespeople should include enough steps to yield the information needed to make accurate selection decisions. However, the stages of the process should be sequenced so that the more expensive steps are a) near the beginning. b) always completed before anything else. c) near the end. d) paid by the prospects rather than the company. e) never reached.

84. The amount of profit a channel member expects depends on a) the amount of discounts for large orders provided by the producers. b) the number of channel support activities provided by the producers. c) what the intermediary could earn if it were handling a competing product instead. d) the type of distribution channels involved. e) the amount of effort required to carry the product.

85. What a price means or what it communicates to customers is called a) reference. b) response. c) interpretation. d) internalization. e) signaling.

90. Effective motivation of a sales force is best achieved through a) annual retreats at resort locations open to families. b) emphasizing sales force objectives and their connection to compensation. c) an organized set of activities performed continuously. d) motivation meetings when sales have declined. e) daily pep talks before the sales force makes sales calls.

93. Customer density and distribution are important factors in a) prospecting. b) motivating salespeople. c) creating sales territories. d) compensating salespeople. e) establishing sales force objectives.

93. ___________ consumers are concerned about both the price and the quality aspects of a product. a) Price-conscious b) Prestige-sensitive c) Value-conscious d) Price-conscious and prestige-sensitive e) Quality-conscious

94. A primary goal of routing and scheduling decisions in personal selling is to a) determine the sequence in which customers will be called on. b) use existing transportation facilities. c) minimize nonselling time. d) determine duration of sales calls. e) provide salespeople with an opportunity to plan their own routes and schedules.

96. ACE Electronics introduces a new voice-activated personal computer that no longer requires a keyboard. ACE charges the high price of $11,000 per unit, thus generating large profits because it has a 20 percent market share. ACE's major problem in the future will most likely be a) survival. b) cash flow. c) competition. d) return on investment. e) profit.

98. Marketers have no flexibility in setting prices under conditions of a) a monopoly. b) an oligopoly. c) perfect competition. d) monopolistic competition. e) no competition.

A commercial for a weight-loss program that explains that the customer pays only one dollar for every pound he or she wants to lose but specifies in fine print that the cost of meals is extra exemplifies ____________ advertising. a) unfair b) illegal c) deceptive d) push e) pull

A common form of tactile communication in U.S. business activities is a) hugging. b) kissing. c) handshaking. d) eye contact. e) head nodding.

A major benefit of using event sponsorship is that it a) enhances personal selling efforts. b) provides excellent support for advertisements. c) can provide large amounts of free media coverage. d) is cost-free. e) neutralizes the effects of unfavorable public relations.

A marketer is most likely to set prices according to a cash-flow objective when a a) trial-and-error approach to the market is acceptable. b) certain market share must be maintained. c) quick return on investment is desired. d) higher price is acceptable to the firm. e) product is expected to have a long life cycle.

A product that has more features than those of its competition, or that is perceived to be of higher quality, warrants using which type of pricing strategy? a) Custom pricing b) Special-event pricing c) Premium pricing d) Price lining e) Bait pricing

A retailer of Real Dry deodorant prices it at $2.00; it costs the retailer $1.40. What is the approximate markup as a percentage of selling price? a) 3 percent b) 14.3 percent c) 30 percent d) 70 percent e) 20 percent

After the target audience for an advertising campaign has been identified and analyzed, marketers should then proceed by a) creating the advertising platform. b) determining the financial resources available. c) defining the advertising objectives. d) developing a media plan. e) creating an advertising message.

An ad's ___________ is designed to attract readers' attention and develop interest so that they will read the entire advertisement. a) signature b) layout c) headline d) artwork e) subheadline

An advertisement from a ski lodge extolling the benefits of a summer getaway in the mountains uses promotion to a) combat competitive promotional efforts. b) stimulate demand. c) reduce sales fluctuations. d) encourage product trial. e) retain loyal customers.

An attempt to create a trend or acceptance of a product through word-of-mouth communication is called a) guerilla marketing. b) viral marketing. c) buzz marketing. d) personal publicity. e) conversational promotion.

As their meeting concludes, Jamal rises and thanks Gina for taking the time to come by and explain her firm's new line of industrial fasteners. A(n) ___________, which is a form of tactile communication, concludes the session. a) smile b) walk to the door c) handshake d) exchange of business cards e) pleasant good-bye

As they walk to the car, Erin Brandeis tells her sales representative, Joachin Perez, that they may need to modify the price structure they just presented to the prospect. Erin bases her statement on the way the prospect folded his arms when Joachin quoted him the prices on the new system. Joachin says he didn't notice. Erin recommends a book on ___________ communication to Joachin. a) tactile b) proxemic c) kinesic d) verbal e) signal

Matt was in a group considered to be actual or potential purchasers of a new mountain bike produced by Specialized. He and the other consumers were shown three different advertisements and asked to judge several dimensions of each one. Matt participated in a(n) a) posttest consumer group. b) panel of advertising experts. c) consumer jury. d) customer ad panel. e) ad preview group.

Before launching a new advertising campaign, marketers for Healthy Choice frozen dinners must determine the selling points that they want to include in the advertisements. The identification and organization of these selling points is called the a) advertising appropriation. b) objective-and-task approach. c) advertising platform. d) advertising objective. e) advertising budget.

Bowflex uses infommercials to demonstrate its fitness products and encourage customers to call and receive a free video with more information about its products. This promotional effort is directed at a) creating awareness. b) encouraging product trial. c) identifying prospects. d) stimulating demand. e) retaining loyal customers.

Breyer's produces a variety of ice cream flavors and lines of varying qualities. The higher quality ice cream varieties are priced higher than the basic ones. Breyer's is using _____ to price its ice cream. a) captive pricing b) price baiting c) premium pricing d) bait pricing e) differential pricing

Brian and Tiffany are discussing the media plan for the opening of their new bar/laundromat called Soap and Suds. He tells her that while he agrees that __________ has tremendous impact, he does not feel that the upfront costs for such a campaign are in the modest budget that presently exists. a) radio b) outdoor c) television d) direct mail e) newspaper

Chris sees a television commercial for Arby's promoting its roast beef sandwiches at 5 for $5.95. Later that day he goes to the nearest Arby's for a roast beef feast, but is told that the special offer is not available at that location. Arby's seems to lack a) communication. b) promotional efforts. c) integrated marketing communications. d) channel capacity. e) coordinated awareness.

Communication that builds and maintains favorable relationships by informing and persuading one or more audiences to view an organization more positively and to accept its product is the role of a) the vice president of sales. b) manipulation. c) promotion. d) information. e) sales promotion.

Companies tend to view promotion from many vantage points. Which of the following alternatives is most accurate? a) Promotion costs cause product costs to be higher. b) Promotion activities make up the bulk of marketing. c) The role of promotion is to stimulate product demand. d) Promotion should be directed toward numerous audiences. e) Most promotional efforts are performed through advertising.

Darcy presents an identification card at the supermarket checkout and has a microcomputer attached to her TV. Information from both of these is sent to a research facility. Darcy is providing a) family behavior recording. b) individual consumer jury. c) single-source data. d) advertisement exposure data. e) detailed market research.

During a one-minute television ad for Nike, the National Weather Service interrupts to announce a flash flood warning for surrounding counties. Such an occurrence is an example of ___________ in the communication process. a) encoding b) bad luck c) noise d) deflected transmission e) poor implementation

During the duration of an advertising campaign, Verizon Wireless ran television advertisements at a steady rate throughout the week and intensified its message with newspaper advertising in many major newspapers in the Sunday paper. Verizon Wireless used a(n)______ media schedule. a) flighting b) continuous c) pulsing d) alternating e) multimedia

Frequently, Burger King restaurants offer 32-ounce glasses depicting currently popular movie characters free with the purchase of a large drink. This example illustrates Burger King's use of which one of the following elements of the promotion mix? a) Packaging b) Personal selling c) Sales promotion d) Public relations e) Telemarketing

Given Ray-Ban's plan for positioning the new sunglass line, they should use a __________ strategy when introducing their new product. a) promotional b) penetration c) price-skimming d) reference e) secondary-market

If State Farm Bank decided that it wanted to increase its number of bank customers by 10% in the coming year, it would most likely use the ______________ approach to advertising allocation. a) arbitrary b) competition-matching c) objective-and-task d) percent-of-sales e) percent-of-customer

If a consumer is shown a particular advertisement and asked if she has seen it before, a(n) _____ is being performed. a) pretest b) consumer jury test c) recognition test d) unaided recall test e) aided recall test

If children and teenagers are insisting on wearing expensive name-brand apparel, a criticism of promotion can be made that promotion a) forces people to spend too much. b) forces prices to go up. c) encourages materialism. d) creates needs. e) can be harmful.

In many instances the most appropriate way for a firm to cope with an event that leads to negative public relations is to a) discourage news coverage of the event. b) deny that the event occurred. c) facilitate news coverage of the event. d) hire a public relations firm. e) refrain from publicity that reports the event.

Kinesic communication is an element in which type of promotional method? a) Advertising b) Public relations c) Personal selling d) Packaging e) Sales promotion

Maria recently put her house on the market at an asking price of $260,000. She realizes, however, that in order to sell the house, she may have to use a) secondary-market pricing. b) reference pricing. c) negotiated pricing. d) price lining. e) professional pricing

Marketers at organizations engaged in nonprice competition a) are more concerned about knowing competitors' prices than are marketers in organizations that are engaged in price competition. b) are not concerned about the prices of competing brands. c) need competitive price information to make sure that their products are priced at approximately the same level as the prices of competing brands. d) rely on customers to help them gather information regarding the prices of competing brands. e) experience high levels of price instability.

Most pricing objectives based on ___________ are achieved by trial and error because not all cost and revenue data are available when prices are set. a) market share b) cash flow c) return on investment d) survival e) profit

Paid personal communication that attempts to inform and persuade customers to purchase products in an exchange situation is called a) advertising. b) sales promotion. c) personal selling. d) target marketing. e) public relations.

Paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation is a) personal promotion. b) advertising. c) personal selling. d) public relations. e) individual promotion.

Pricing the basic product in a product line low while pricing related items at a higher level is called a) premium pricing. b) bait pricing. c) captive pricing. d) price skimming. e) price lining.

Procter & Gamble periodically sends out coupons and free samples of products like Downy fabric softener. This illustrates P&G's use of which of the following elements of the promotion mix? a) Advertising b) Personal selling c) Sales promotion d) Public relations e) Telemarketing

Rachel is considering advertising her new restaurant on the radio to attract more customers. She knows that in order to attract listeners' attention on the radio it will be important for her to a) use a high level of repetition. b) buy a really long time slot to get all the information in. c) be both informal and conversational in tone. d) use a quick speaker to attract attention to the commercial. e) say the restaurant's name and location three separate times.

Running a big sale in order to generate enough cash flow to pay creditors is typical in a situation in which a firm's primary pricing objective is a) status quo. b) profit. c) survival. d) market share. e) recovery.

Showing a product's price along with its previous price, the price of a competing brand, or the price at another retail outlet is called a) competition-based pricing. b) reference pricing. c) comparison discounting. d) captive pricing. e) psychological pricing.

Soft drink companies advertise that their products beat the competition in national "taste tests," and they refer to the rival brands by name. This type of advertising is best described as a) pioneer. b) competitive. c) comparative. d) defensive. e) selective.

Some critics, including consumer groups and government officials, suggest that certain products should not be promoted because they a) cost too much. b) are illegal. c) are potentially harmful. d) do not last. e) are not competitive.

Sonya is watching the six o'clock news as she prepares dinner. As commercial breaks come on, Sonya's dinner preparation would be considered a) a communication inhibitor. b) feedback. c) noise. d) decoding blocker. e) interference.

Steinway produces concert grand pianos, often using the custom materials and designs desired by a specific customer. The average price of these pianos runs about $50,000 depending on the exact piano. What type of pricing does Steinway most likely use for these pianos? a) Markup b) Competition-based c) Cost-plus d) Demand-based e) Secondary-market

Suppose that Toyota has decided to contract with the producer of the next James Bond 007 movie to use one of its new vehicles in a chase scene. This would best be an example of a) sales promotion. b) word-of-mouth promotion. c) product placement. d) viral marketing. e) publicity.

The "White Sale" that many department stores have every year a few weeks after Christmas is an example of a) secondary pricing. b) off-peak pricing. c) periodic discounting. d) random discounting. e) captive pricing.

The Barrister's Deli decides to run advertisements for its lunch specials on a local FM radio station. Marketing research later reveals that the restaurant's target market listens primarily to satellite radio stations. This promotion program suffered from an error in the selection of a) shared symbols. b) targeted customers. c) communication channel. d) decoded meanings. e) noise minimizers.

The advertising department for the Pennzoil Corporation is working on a print advertisement for a new product. At this point, the layout contains a phrase to attract attention, an additional phrase to provide an explanation, an illustration to show the product, and a paragraph to explain the advantages and benefits of the product. What other important element should be included? a) Headline b) Subheadline c) Signature d) Artwork e) Body copy

The cost of _____ is usually substantially lower than the cost of _____. a) stimulating primary demand; stimulating selective demand b) identifying prospects; encouraging product trial c) retaining existing customers; acquiring new customers d) comparative advertising; pioneer promotion e) personal selling; public relations

The first stage in the development of any advertising campaign is a) creating the message. b) setting the budget. c) identifying the advertising target audience. d) defining the advertising objectives. e) creating the advertising platform.

The maker of Huggies diapers is developing a media plan that involves trying to expose its target audience to its new advertisement about ten times. This is advertising a) reach. b) repetition. c) frequency. d) targeting. e) exposure.

The manager at Best Buy puts a sign up next to a Pioneer audio system that reads, "Only $199.99! $60 less than Circuit City." This is an example of what type of pricing strategy? a) Random discounting b) Periodic discounting c) Comparison discounting d) Penetration pricing e) Everyday low prices

The most effective method of determining platform issues is to use a survey of a) personnel within the firm. b) individuals at the advertising agency. c) customers. d) marketers in the industry. e) advertising experts.

The percentage of consumers in the target audience actually exposed to a particular advertisement in a stated period of time is the definition of a) frequency. b) exposure. c) reach. d) targeting. e) push.

The public relations department at Lowe's Home Improvement submits one page of typewritten copy to national newspapers and news web sites to announce its one-day, nationwide clean-up-local-parks event. This is an example of a a) feature article. b) public update. c) news release. d) media bulletin. e) publicity stunt.

The target audience for an advertising campaign is the a) information base on which to develop the campaign. b) geographic distribution of persons. c) people toward whom the advertisements are directed. d) overall goal of the advertising campaign. e) sales objective to be achieved by the campaign.

The three primary bases for developing prices are a) profit, demand, and competition. b) supply, demand, and marketing objectives. c) demand, competition, and cost. d) markup, cost, and cost-plus. e) negotiation, periodicity, and randomness.

Toyota's television advertisements for the new Venza are examples of a) publicity. b) institutional advertising. c) product advertising. d) comparative advertising. e) pioneer advertising.

What type of advertising points out a brand's features and advantages that fit consumers but may not be available in other brands? a) Reminder b) Reinforcement c) Competitive d) Defensive e) Institutional

What type of pricing strategy is used in a situation where demand for a product is price inelastic and the seller has an ethical responsibility not to overcharge the client? a) Price lining b) Prestige pricing c) Professional pricing d) Customary pricing e) Price skimming

When a company promotes its position on a public issue, this is specifically referred to as ______ advertising. a) institutional b) product c) advocacy d) issue e) competitive

When a marketer makes an effort in promotion to point out the strengths and benefits of a specific brand, it is an attempt to build _________ demand. a) primary b) secondary c) selective d) economic e) competitive

When developing an advertising campaign, benchmarks need to be included in the a) campaign platform. b) evaluation of the advertising effectiveness. c) statement of advertising objectives. d) media plan. e) budget.

Which is the best example of noise that originates with the receiver in the communication process? a) Sarah drives through a tunnel, and her radio signals become very weak. b) Maria has been studying English for two years and does not understand the symbolism being used in a commercial. c) Kevin simply tunes out pop-up ads on the Internet so that they don't even enter his awareness. d) Because of poor printing, Claire cannot read an advertisement in her local newspaper. e) A mother fails to hear a new commercial for diapers because her new baby is crying.

Which of the following is not an integrated communications tactic used by Toyota? a) word-of-mouth communication b) advertising c) publicity d) personal selling e) sales promotion

Which of the following lists forms of competitive advertising? a) Pioneer, comparative, reminder b) Reminder, repetitive, reinforcement c) Comparative, reminder, reinforcement d) Institutional, product, comparative e) Product, pioneer, reminder

Which of the following pricing objectives sets prices to recover cash as quickly as possible? a) Market share b) Profit c) Cash flow d) Return on investment e) Product quality

____ provide businesses with copywriters, artists, production coordinators, media experts, researchers, and other highly skilled specialists. a) Public relation firms b) Media companies c) Advertising agencies d) Production companies e) Promotion experts

104. As Quaker Oats tries to decide how to introduce its new line of breakfast bars, it considers all the advantages and disadvantages of the various consumer sales promotion methods. After careful consideration, Quaker Oats decides to use _____, which are the most widely used form of consumer sales promotion. a) free samples b) rebates c) point-of-purchase displays d) coupons e) cents-off offers

104. Provisions of the Robinson-Patman Act, as well as those of the ___________, limit the use of price differentials. a) Simpson-Marshall Act b) Federal Trade Commission Act c) Wheeler-Lea Act d) Clayton Act e) Sherman Antitrust Act

105. Fraudulent usage, inability to attract potentially brand-loyal customers, and use by current customers but not new customers are believed to be disadvantages of which of the following? a) Sweepstakes b) Money refunds c) Frequent-user incentives d) Coupons e) Premiums

108. Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of a ___________ discount. a) quantity b) cash c) seasonal d) trade e) complementary

117. The difference between consumer sales promotion methods and trade sales promotion methods is a) with consumer sales promotion, marketers try to persuade retailers to carry their products. b) with trade sales promotion, marketers focus on trading with consumers. c) consumer and trade sales promotions aim at retailers, but only trade sales promotions aim at wholesalers. d) consumer sales promotions focus on getting consumers to buy their products, whereas trade sales promotions focus on getting wholesalers and retailers to buy. e) trade sales promotions attempt to persuade people to buy at particular stores, whereas consumer sales promotions focus on persuading people to buy particular products.

119. Suppose that the frozen foods division of Swanson purchases food trays and boxes from the packaging division. The form of pricing used to charge the frozen foods division is called a) zone pricing. b) base-point pricing. c) business-unit pricing. d) transfer pricing. e) price discrimination.

119. Which of the following is an example of a trade sales promotion method? a) Frequent-user incentives b) Point-of-purchase displays c) Retailer coupons d) Free merchandise e) Money refund

122. If Green Giant wants to provide its resellers with a secondary incentive to stimulate repurchases after an initial consumer coupon campaign for its latest product, it can offer resellers a sum of money for each unit purchased. This type of sales promotion is a a) buying allowance. b) count-and-recount allowance. c) scan-back allowance. d) buy-back allowance. e) coupon follow-up campaign.

123. When a manufacturer rewards retailers based on the number of pieces moved through their scanners, this sales promotion method is known as a a) merchandise allowance. b) count-and-recount allowance. c) buy-back allowance. d) scan-back allowance. e) scan-count allowance.

124. What is the breakeven point in dollar sales volume? a) $1,200 b) $1,440 c) $3,000 d) $1,920 e) $1,600

128. A dealer loader is a) additional compensation to salespeople from the manufacturer to promote a line of goods. b) an agreement in which a producer offers free merchandise to a retailer. c) an advertisement that promotes a product and identifies retailers who sell the product. d) a gift to a retailer who purchases a specified quantity of merchandise. e) a temporary price reduction to resellers for purchasing a certain quantity of merchandise.

130. If BASF were to price its product in barrels from the factory, before it is loaded on the carrier, this would be an example of _________ pricing. a) buy-back allowance b) geographic c) F.O.B destination d) F.O.B. factory e) base-point

138. Presto's use of a free trip to New York is an example of ____________, while the $5 discount to its retail stores is an example of _______________. a) a trade allowance; a buy-back allowance b) a buying allowance; a dealer loader c) a dealer loader; a buy-back allowance d) a sales contest; a buy-back allowance e) a sales contest; a buying allowance

18. What do all of the following have in common: tuition, fee, premium, retainer, dues? a) They all must be paid in cash. b) They are forms of exchange similar to, but not identical with, money. c) They are forms of exchange similar to, but not identical with, barter. d) They are different terms for the concept of price. e) They have nothing in common.

19. The tuition and fees each student paid for this semester of college are both terms for a) expenses. b) charges. c) bills. d) price. e) exchange valuations.

22. Price is a key element in the marketing mix because it relates directly to a) the size of the sales force. b) the speed of an exchange. c) quality controls. d) the generation of total revenue. e) brand image.

24. Developing a list of potential customers is called a) preapproaching. b) surveying. c) scouting. d) prospecting. e) screening.

36. The step of the personal selling process in which a salesperson contacts a potential customer is called a) making the presentation. b) cold calling. c) the preapproach. d) the approach. e) prospecting.

37. When marketers at Consolidated Mustard Company tried to determine demand for their product, they found that at 50 cents, consumers wanted 2,000 jars; at $1.00, they wanted 6,000 jars; and at $1.50, they wanted 4,000 jars. What can Consolidated conclude? a) Consolidated did poor market demand research. b) Consolidated has an elastic product. c) Consolidated has an inelastic product. d) Consolidated mustard is a prestige good. e) Consolidated mustard has a normal demand curve.

38. Stacey's client group has been gradually shrinking and she is looking for new prospective clients. She has decided to spend a couple of days approaching potential customers without any prior consent. Stacey's method of approach is known as a) referral approach. b) ambulance chasing. c) door-to-door selling. d) cold canvass. e) repeat contact.

39. The stage of the personal selling process in which the salesperson attempts to make a favorable impression, gather information about the customer's needs and objectives, and build a rapport with the prospective customers is called a) prospecting. b) preapproach. c) approach. d) making the presentation. e) overcoming objections.

42. A measure of sensitivity of demand in relation to changes in price is a) a demand curve. b) a prestige graph. c) marginal analysis. d) price elasticity of demand. e) quantity elasticity.

46. Which of the following statements about price elasticity is false? a) Steak is an example of a product that has an elastic demand for most people, because when price goes up quantity demanded goes down proportionally more. b) Elasticity of demand is the relative responsiveness of a change in quantity demanded to changes in price. c) If marketers can determine price elasticity, then setting prices at optimum levels is much easier. d) When price is raised on a product that has an inelastic demand, then total revenue will decrease. e) A product like electricity has an inelastic demand.

48. If a company increased its price from $100 to $120 and the quantity demanded fell by 40 percent, the price elasticity of demand for this product is a) 2. b) 1/2. c) -1/2. d) -2. e) 4.

50. During his presentation to Mrs. French about a high-end gourmet oven, Brian asks, "Would you prefer black or stainless steel?" This is an example of a a) referral. b) recommendation. c) follow up. d) trial close. e) closing argument.

52. The purpose of the ___________ stage in personal selling is to determine customers' problems and questions about using the product. a) prospecting b) approach c) overcoming-objections d) follow-up e) closing

54. If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur a) more fixed costs. b) higher average fixed costs. c) fewer variable costs. d) a marginal cost. e) higher average variable costs.

55. Roberts Electronics calculates that if it produces 15 radar detectors, its costs are $1,500, and if it produces 16 radar detectors, its costs are $1,590. In this instance, $90 is the firm's ___________ cost. a) average b) fixed c) variable d) marginal e) average variable

59. Retail salespeople are classified as a) order getters. b) support personnel. c) trade salespeople. d) inside order takers. e) field order takers.

60. If Colgate-Palmolive wants to maximize profit on its toothpaste, it should operate at the point where a) total costs and total revenues are equal. b) marginal revenue is at its highest level. c) marginal revenue exceeds marginal cost. d) marginal revenue equals marginal cost. e) demand is most elastic.

63. A missionary salesperson is usually employed by a) a retailer. b) a wholesaler. c) either a retailer or a producer. d) a manufacturer. e) an independent intermediary.

73. In which of the following does the salesperson join with people from the firm's financial, engineering, and other functional areas to engage in the personal selling process? a) Trade selling b) Missionary selling c) Relationship selling d) Team selling e) Technical selling

76. Marketers generally view _____ as the minimum price a product can be sold for. a) fixed costs b) variable costs c) profits d) costs e) moderate losses

80. Sales objectives for individual salespeople can be stated in several ways. Which of the following would least likely be used for stating an individual salesperson's goal? a) Dollar volume sales b) Unit volume sales c) Average order size d) Ratio of profits relative to number of sales calls e) Average number of calls per time period

84. The best advice for recruiting and selecting salespeople for one's organization would be a) follow a clear set of generally accepted job characteristics when determining an applicant's qualifications. b) keep the expensive stages near the beginning of the recruiting process. c) find out how long the applicant plans to stay with the company. d) make recruitment a continuous activity aimed at seeking out the best applicants. e) recruit primarily from educational institutions.

86. Zack Freedman is an experienced salesperson who has worked for the same company for 20 years. When he is informed that he must attend a training seminar the following Tuesday, he believes it will most likely be about a) the company. b) his customers' companies. c) basic selling methods. d) new-product information. e) prospecting.

88. Jose Suarez has been hired as sales manager at a new firm and is trying to come up with a sales force compensation method. He would like to have selling expenses relate directly to sales resources, an aggressive sales force, and minimization of nonselling tasks. What compensation method(s) would best fulfill his requirements? a) Combination b) Straight salary c) Straight salary plus generous fringe benefits d) Straight commission e) Salary plus a bonus

94. Buyers who focus on purchasing products that signify prominence and status are a) value-conscious consumers. b) price-conscious consumers. c) socially elite buyers. d) prestige-sensitive buyers. e) brand aware consumers.

95. ___________ are designed to identify the customers called on and to present detailed information about interaction with those clients. a) Invoices b) Feedback notices c) Work schedules d) Call reports e) Recall files

96. The most common sales force evaluation practices are for sales managers to compare a salesperson's performance with other salespeople operating under similar selling conditions, or to compare a) the size of sales territories. b) selling expenses by various members of the sales force. c) the amount of new business generated. d) current performance with past performance. e) the ratio of costs to profits.

97. Ray Singh is preparing to evaluate one of his sales representatives, Julie Hill. His evaluation of her performance for the prior year led to his conclusion that she lacked key product information. At their upcoming session, he will most likely do which of the following? a) Decrease the size of her territory. b) Increase her sales quotas. c) Terminate her. d) Recommend that she attend a training program. e) Ignore this problem given that her sales results were good.

A content analysis of an organization's messages, readability studies, and readership surveys are all tools used to conduct a(n) a) consumer survey. b) public relations audit. c) environmental audit. d) communications audit. e) social audit.

A firm establishes which of the following pricing objectives to maintain or increase its product's sales in relation to total industry sales? a) Cash flow b) Sales potential c) Product quality d) Market share e) Status quo

A manager at JC Penney discovers that Sears has reduced the price of its children's Levi's from $31.99 to $24.99, according to an advertisement in the Sunday newspaper. She immediately phones her store and instructs the salesperson on duty to put a sign up next to their children's Levi's that reads, "SALE: $24.99." This is an example of what pricing strategy? a) Secondary-market pricing b) Bait-pricing c) Reference pricing d) Random discounting e) Comparison discounting

A marketer that wanted to include detailed information in advertisements would most likely use a) radio. b) television. c) outdoor displays. d) magazines. e) mass transit.

A product is a price leader when a) it is sold at the highest price. b) its price maximizes profits. c) an increase or decrease in price leads to increased revenue or lower costs. d) it is sold at less than cost in the hope that sales of other products will increase. e) its price leads the industry in sales.

A sale at The Bon Marche the day after Thanksgiving to kick off the Christmas season would be considered a) psychological pricing. b) comparison discounting. c) customary pricing. d) special-event pricing. e) captive pricing.

A schedule in which advertisements run for set periods of time, alternating with periods in which no ads run is known as a) continuous. b) skipping. c) pulsing. d) flighting. e) intervals.

A single page of typewritten copy that has 300 words or less and describes a company event or product is called a a) press story. b) feature article. c) captioned paragraph. d) news release. e) publicity bulletin.

All of the following are examples of publicity-based public relations tools except a) press conferences. b) feature articles. c) news releases. d) annual reports. e) news stories.

An activity and/or material that offers added value or incentive to resellers, salespeople, or consumers is a) advertising. b) personal selling. c) public relations. d) sales promotion. e) packaging.

An ad for a multivitamin that claims, "We still bring you everything you need to get through your day in one vitamin," would most likely be considered ______ advertising. a) reinforcement b) competitive c) comparative d) reminder e) institutional

An evaluation performed before an advertising campaign begins is a a) consumer exam. b) posttest. c) recognition test. d) pretest. e) recall test.

Belinda works for Burger King and her responsibilities include maintaining favorable relationships between the organization and its stakeholders. Belinda works in a) sales. b) advertising. c) human resources. d) public relations. e) imaging.

Claire Nevsky is in charge of advertising for her company and has produced a 30-second television spot to promote one of the company's new products. One of her assistants just out of college believes that the commercial has too much visual and audio information packed into such a small amount of time. The assistant is specifically concerned about limits in the receiver's a) noise. b) coding process. c) encoding. d) channel capacity. e) feedback.

Cooperative advertising efforts between manufacturers and retailers demonstrate the promotional objective of a) stimulating demand. b) reducing sales fluctuations. c) combating competitive promotional efforts. d) facilitating reseller support. e) retaining loyal customers.

During July and August, Lakewood Links Golf Course, located in South Carolina, offers weekday rates of $13 for a round of golf with a cart. During the rest of the year, the weekday rates are between $25 and $35. This is an example of the use of a) differential pricing. b) incentives. c) competition-based pricing. d) demand-based pricing. e) random discounting.

During the introduction stage of the product life cycle, which type of promotion would a firm focus on? a) Reminder b) Competitive c) Comparative d) Pioneer e) Repetitive

First Union Bank airs a series of radio ads that claim, "We are the friendly bank." This campaign would best be described as __________ advertising. a) pioneer b) target c) product d) institutional e) comparative

Generally, promotion mixes for companies with extremely limited promotional budgets tend to concentrate on a) advertising. b) publicity. c) sales promotions. d) personal selling. e) distributor incentives.

Glenwood has decided that it is going to offer a special package offer if the prevention plan is purchased within the first 30 days of each year's time for vaccinations. This type of pricing strategy would be an example of a) customary pricing. b) secondary-market pricing. c) introductory pricing. d) periodic discounting. e) random discounting.

Glenwood's previous pricing strategy is an example of __________ pricing, while the new strategy is an example of __________ pricing. a) percentage; cost-based b) cost-based; psychological c) sales-based; customary d) a la carte; bundle e) demand-based; bundling

If Norelco introduced a new electric razor that sonically removes hair and priced it first at $175 and then at $150 before reducing the price to $100, the firm's initial pricing strategy is known as a) penetration pricing. b) psychological pricing. c) price lining. d) price skimming. e) odd-even pricing.

If PepsiCo sets its twelve-pack price at $3.99 to match the price charged by Coca-Cola, Pepsi is using which of the following pricing methods? a) Demand-based b) Cost-based c) Reference pricing d) Competition-based e) Price leader

If REVO sets the price for its sunglasses at $240, it is using psychological pricing to convey a) thrift. b) cost cutting. c) value. d) prestige. e) availability.

If State Farm were to decide that its previous method of appropriating the advertising budget was ineffective, it could decide to allocate 2 percent of its total annual sales to advertising. However, one problem with this method is that a) it makes the bookkeeping too difficult. b) it is tied too closely to sales forecasts. c) a sales decline leads to an increase in the advertising appropriation. d) a drop in sales would cause a drop in the advertising budget. e) competitors may have different advertising objectives.

If Wrigley set its pricing objective as attaining 38 percent of the chewing gum market, what else would be needed to make this a true pricing objective? a) Statement of demand elasticities b) Identification of cost structure c) Breakeven analysis d) Identification of a time period for accomplishment e) Establishment of a subsequent pricing policy

If a firm's promotional budget were extremely limited, for which of the following reasons would it be more likely to rely on personal selling as its main promotional tool? a) People are more likely to believe a human being than a print ad. b) TV and radio ads are not feasible for smaller companies. c) It can achieve more sales through business customers than through individual consumers. d) It is easier to measure a salesperson's effects on sales than advertising's effects on sales. e) The firm is charging a higher price to cover the expensive salaries of its salespeople.

If an advertising campaign is aimed at increasing brand awareness and consumers' knowledge of a product's features, the advertising objective should be stated in terms of a) market share. b) dollar sales. c) unit sales. d) communication. e) long-run goals.

If an organization sets prices to recover research and development expenses and establish a premium quality image for its product, it would be using a _________ pricing objective. a) survival b) return on investment c) market share d) product quality e) cash flow

If the ads include both the Venza and the Ford Edge, they would be examples of a) institutional advertising. b) public relations. c) product advertising. d) comparative advertising. e) competitive advertising.

In 2008, Cal Ripken, Jr. and State Farm teamed up to promote State Farm's national teen driver safety program. The marketing division at State Farm produced a one-page document that described the partnership, which was then published in several national newspapers and on the internet. The document from State Farm is an example of ______, while the publication in the newspapers is an example of _________. a) public relations; publicity b) public relations; a news release c) publicity; advocacy advertising d) a news release; publicity e) publicity; a news release

In order for customers to receive greater customization and service, they must be willing to a) pay high prices for standard goods. b) give up all their rights to privacy. c) use the Internet for communication with companies. d) give information about themselves and their tastes. e) spend significant amounts of time to purchase products.

In the Gillette advertisement that claims, "Gillette, the best a man can get," Gillette is the communication a) receiver. b) transmitter. c) decoder. d) source. e) noise.

J.C. Penney's pays $16.50 for a six-ounce bottle of cologne and sells it for $25.95. Its markup as a percentage of cost is approximately ___________ percent for this product. a) 64 b) 36 c) 18 d) 57 e) 45

Measuring effectiveness during a campaign is usually accomplished by using a) pretests. b) posttests. c) consumer juries. d) inquiries. e) sales force surveys.

Odd-even pricing is a) a cost-based strategy. b) competition-based. c) a rarely used technique. d) a psychological pricing strategy. e) a form of unethical pricing.

One way for a company to measure the effectiveness of its publicity-based public relations efforts is to a) tabulate the equivalent in advertising dollars if the time and space were purchased. b) ask for return of reply cards. c) calculate market share increase. d) count the number of exposures in the media. e) conduct an environmental audit of media alternatives.

Price skimming and penetration pricing are both strategies used for a) product-line pricing. b) business products only. c) psychological pricing. d) new-product pricing. e) promotional pricing.

Promotion helps consumers because it a) costs billions of dollars each year, which stimulates the U.S. economy. b) always stresses wholesome values, which benefits society. c) persuades consumers to make the right choices. d) informs consumers and places them in a position to specify the products that they seek. e) tends to be informative and not persuasive.

Radio and television signals as well as ink on the paper of a magazine or newspaper are all considered a) noise. b) communication links. c) communication resources. d) communication channels. e) decoding sources.

Ray-Ban has decided to promote the new sunglass line as an "affordable luxury" and plans significant promotional expenditures. With these objectives, which of the following should Ray-Ban use to price its product line? a) competition-based pricing b) cost-plus pricing c) markup pricing d) demand-based pricing e) differential pricing

Reference pricing is a) listing the manufacturer's suggested retail price on the price tag along with the store's lower price. b) mentioning the price that other retailers charge for the same product on the display for the product. c) using a consumer's internal perceptions of what the appropriate price should be to help price a firm's products. d) pricing a product at a moderate level and positioning it next to a more expensive model or brand. e) using prices in advertising so that customers will have a point of reference when they come to the retail facility.

Since Whizz is a new product, which of the following promotional methods would you least recommend? a) magazine ads. b) viral marketing. c) television commercials. d) a price-reduction sales promotion. e) public relations.

Sony Corporation has a particular approach for determining its advertising appropriation. A problem with this technique, however, is that the people in the marketing department have difficulty estimating the level of effort needed to achieve certain goals. This problem is characteristic of the __________ approach. a) reliable-appropriation b) match-competition c) arbitrary d) objective-and-task e) percent-of-sales

Suppose State Farm Insurance stated, "We want our advertising to increase our customer base for home and automobile insurance 10 percent by the end of the fiscal year." This would be considered a(n) a) target audience goal. b) advertising platform. c) percent-of-sales approach. d) advertising objective. e) media plan goal.

Suppose Toyota also offered the dealership salespeople a trip to Hawaii for anyone who could sell ten of the new vehicles within the first month they were available? This tactic would be an example of _____ marketing, while the TV commercials described above would be an example of ________ marketing. a) pull; push b) personal selling; push c) pull; sales promotion d) push; pull e) personal selling; sales promotion

Th2e main problem with using the objective-and-task approach to setting an advertising budget is that a) sales create advertising rather than advertising creates sales. b) it often results in overspending or underspending of the firm's resources. c) it does not achieve full potential in terms of stimulating demand. d) the marketer may experience difficulty when trying to estimate accurately the level of effort needed to achieve goals. e) it is difficult to determine the objectives of the campaign.

The Sharper Image likes to use nonpersonal communication in news story form such as press releases for its new and improved products. This is an example of a) sales promotion. b) advertising. c) personal selling. d) publicity. e) kinetic communication.

The University of Iowa runs a series of ads throughout the Midwest on how friendly and helpful its faculty, staff, and students are as well as how outstanding its academic programs are. This type of promotion would best be characterized as a) public relations. b) product advertising. c) advocacy advertising. d) institutional advertising. e) comparative advertising.

The fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ___________ pricing. a) price-line b) promotional c) professional d) differential e) psychological

When a company adjusts price levels so that it can increase sales volume to levels that match the organization's expenses, it is said to employ a _________ objective. a) market share b) cash flow c) return on investment d) survival e) profit

When a copywriter and an artist combine the copy with the visual material for a television commercial, it usually is done through use of a a) parallel format. b) commercial layout. c) layout procedure. d) storyboard. e) visual-impact process.

When a seller's costs are usually determined during or after a product is made and then a specified percentage or dollar amount is added to the cost to establish a price, an organization is using _____ pricing. a) markup b) demand-based c) differential d) cost-plus e) expensed-based

When businesses charge the highest possible price that customers who really want the new product will pay, they are using a) premium pricing. b) prestige lining. c) captive pricing. d) price skimming. e) penetration pricing.

When consumers are making do with less expensive products and shopping more selectively, manufacturers and retailers must focus on the ___________ of their products. a) price b) quality c) availability d) value e) image

When encoding the message, the source should use signs that have a) new and exciting meanings. b) different meanings to different people. c) contemporary jargon. d) meanings that the target market will understand. e) broad interpretations.

When using the percentage-of-sales approach for determining the advertising appropriation, marketers a) base their funding on a percentage of the competitors' sales. b) multiply the firm's past sales by a set percentage they want to spend. c) set sales objectives for the upcoming period and base appropriations on these goals. d) multiply the firm's past sales plus a factor for expected changes in sales times a standard percentage. e) use an industry standard to determine what percentage of their profits they want to allocate to advertising.

Which of the following is the best example of the promotional objective of combating competitive promotional efforts? a) Joy advertises that its dish soap has more suds than Dawn, Sunlight, and other leading dish soaps. b) Joe Boxer and Kmart collaborate to promote Joe Boxer's lines of clothing and housewares. c) The Pork Council advertises pork as the "other white meat" and a healthier alternative to beef. d) After Ford promotes the towing capacity of its F-series trucks, DaimlerChrysler soon emphasizes the towing capacity of its Dodge trucks. e) Hyundai offers 10-year/100,000 mile warranties on its vehicles in order to give customers confidence in its brand name and automotive offerings.

Which of the following types of promotion informs potential customers about a product and what it is? a) Reminder b) Competitive c) Comparative d) Pioneer e) Repetitive

Which promotion mix ingredient costs considerably more than advertising to reach just one person but can provide more immediate feedback? a) Publicity b) Sales management c) Sales promotion d) Personal selling e) Public relations

Why should a benchmark statement be included in advertising objectives? a) Shareholders want to see where a company is in relation to competition. b) It is useful in determining whether retailers have increased their sales over the year. c) It gives an indication of how the advertising message is best presented. d) Without a reference point, it is difficult to determine to what degree objectives have been accomplished. e) Objectives become more easily attainable when such a statement is included.

___________ is a broad set of communication activities used to create and maintain favorable relations between the organization and its stakeholders. a) Advertising b) Selling c) A press strategy d) Public relations e) Publicity

116. On a break between classes, Kelley Macon selects two magazines and mails the Publishers Clearing House entry form. She doubts that she will win $10 million, but she never passes up a chance to participate in a a) premium. b) consumer contest. c) sampling. d) sales contest. e) sweepstakes.

100. Which of the following acts does not directly affect pricing decisions? a) Sherman Antitrust Act b) Federal Trade Commission Act c) Wheeler-Lea Act d) Clayton Act e) Simpson-Marshall Act

103. Heinz uses various techniques such as coupons, free samples, and consumer contests to encourage consumers to try its products. All of these marketing activities are considered a) trade sales promotion methods. b) consumer incentives. c) consumer sweepstakes. d) buying allowances. e) consumer sales promotion methods.

105. Which of the following is not a discount provided to business customers? a) Trade b) Cumulative c) Cash d) Seasonal e) Differentiated

106. What type of discount is given to a business purchaser for performing activities such as transporting, storing, and selling? a) Quantity b) Cash c) Geographic d) Service e) Trade

107. ___________ are offers of cash to customers who purchase a specific product, and ___________ are offers of cash to customers who purchase a specific quantity of a specific product. a) Rebates; reimbursements b) Cents-off; refunds c) Rebates; premiums d) Buy-back allowances; money refunds e) Rebates; money refunds

110. Signs, counter pieces, racks, and self-service cartons are all forms of a) in-store attention grabbers. b) demonstrations. c) retail media. d) premiums. e) point-of-purchase displays.

112. Tim O'Brien gets the invoice for a load of gravel he purchased last week. The price of the gravel was $55, and the terms are 2/10, n/45. If Tim pays the invoice in five weeks, he will owe a) a penalty. b) $53.90. c) $56.10. d) $58.30. e) $55.00.

113. If the terms of a business exchange are 2/10 net 30, this means that the transaction a) involves a cumulative discount if paid in 30 days. b) involves a noncumulative discount. c) offers a discount if the buyer lives within a ten-mile radius. d) price does not include the cost of freight. e) involves a cash discount if paid within ten days.

115. Reductions for transportation and other costs related to the physical distance between buyer and seller are known as a) base-point pricing. b) freight absorption pricing. c) price zoning. d) location pricing. e) geographic pricing.

117. Rob Johnson orders 16 dozen fishing lures from Strike Right for $375. When he gets the invoice, he is furious that $25 in freight charges has been tacked onto his bill because he thought the price included freight costs. Rob should have been certain that the order terms were a) F.O.B. origin. b) F.O.B. factory. c) C.O.D. d) 2/10, n/30. e) F.O.B. destination.

118. The fact that a gas station in Texas pays less for fuel than a gas station in Maine from a producer in Louisiana suggests that refineries are using which of the following pricing methods? a) Price differentiation b) Base-point pricing c) Freight absorption pricing d) Transfer pricing e) Zone pricing

122. Suppose that the watchband department of Timex sells completed watchbands to the finished watch department. The finished watch department is charged the price it would have to pay an outside watchband manufacturer less a discount to reflect low sales and transportation costs. This method of pricing is called _______ pricing. a) zone b) actual full cost c) standard full cost d) cost plus investment e) market-based cost

124. When Levi's agrees to pay JC Penney's money for providing television advertising and Sunday newspaper sales fliers emphasizing Levi's jeans, Levi's is offering a) premium money. b) cooperative advertising. c) a dealer loader. d) a buying allowance. e) a merchandise allowance.

125. An arrangement in which a manufacturer pays a certain amount of a retailer's media costs for advertising that manufacturer's products is a) a buy-back allowance. b) a merchandise allowance. c) premium money. d) push money. e) cooperative advertising.

126. If Concession Supply wanted to make a profit of $800 on each case, it would need to sell ___________ cases. a) 150 b) 300 c) 100 d) 75 e) 200

127. BASF has decided to offer discounts to its businesses customers in the form of the following: For each order of $100,000 or more during the next 90 days, the buyer will receive a rebate of 5 percent. This type of pricing would be an example of __________ discounts. a) allowance b) cash c) seasonal d) noncumulative e) cumulative

16. Price is a) money paid in a transaction. b) not important to buyers. c) of limited interest to sellers. d) the most inflexible marketing mix decision variable. e) the value that is exchanged for products in a marketing transaction.

19. Personal selling goals include finding prospects, convincing prospects to buy, and a) monitoring new products being developed. b) being aware of competitors' sales activities. c) seeking one-sale customers. d) avoiding repeat transactions. e) keeping customers satisfied.

21. Jennifer Clarkson, a sales representative for a publisher of college textbooks, had the southern half of the state as a sales territory. Last year, the director of marketing for the publishing company told Jennifer's sales manager to increase her territory to the entire state. Now Jennifer's customers are less satisfied with the company. They are most likely to blame ___________ for their reduced level of customer satisfaction. a) the textbook authors b) the company's chief executive officer c) the marketing manager d) the sales manager e) Jennifer

24. Suppose Tommy Hilfiger is introducing a new line of men's ties. The designer believes that the target market for these ties comprises men who are very status-conscious. In keeping with this assessment, department stores selling the ties should a) charge a price based on their cost. b) charge prices consistent with their existing ties. c) discount the ties. d) negotiate the price with individual tie shoppers. e) use price symbolically.

25. Scott Bartello, a salesperson for Xerox, develops a list of potential customers and evaluates them on the basis of their ability, willingness, and authority to purchase copy machines. This process is called a) customer search. b) preapproach. c) approaching the customer. d) audience selection. e) prospecting.

26. Company sales records, commercial databases, newspaper announcements, telephone directories, and public records are all sources used for a) surveying. b) screening. c) researching. d) preapproaching. e) prospecting.

26. Safe Auto advertises its low-cost automobile insurance as "minimum coverage for minimum budgets." Safe Auto is engaging in a) non-price competition. b) demand-based pricing. c) prestige pricing. d) price differentiation. e) price competition.

30. Janetta Light tells her sales manager that she will be devoting more effort to ___________ in the coming weeks, as her list of potential customers has dwindled below the level of 30 firms recommended by the selling plan. a) approaching customers b) preapproaching c) closing the sale d) following up e) prospecting

33. A salesperson finds and analyzes information about each prospect's specific product needs, current use of and feeling about brands, and personal characteristics during a) prospecting. b) the approach. c) presentation preparation. d) overcoming objections. e) the preapproach.

33. For most firms in the United States, demand curves are a) upward sloping. b) completely horizontal. c) completely vertical. d) c-shaped. e) downward sloping.

36. A graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a a) price graph. b) supply curve. c) price/quantity graph. d) marginal revenue curve. e) demand curve.

38. French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night. This is an indication that suites at this hotel are apparently an example of a(n) ___________ product. a) reverse-demand b) inferior c) standard d) secondary-demand e) prestige

40. The salesperson must attract and hold the prospect's attention, stimulate interest, and spark a desire for the product during the a) prospecting. b) preapproach. c) follow up. d) approach. e) sales presentation.

47. If Pacific Power and Light increased its rates 10 percent and experienced only a 2 percent reduction in the demand for power, the demand would be a) elastic. b) prestige. c) common. d) horizontal. e) inelastic.

49. "Mrs. Brucker, you would agree that this is the most attractive car interior in this price range, wouldn't you?" Cliff Davis, a salesperson at Midtown Ford, was using a(n) ___________ when he made this statement. a) referral b) objective c) bandwagon approach d) follow-up e) trial close

49. Dividing the percentage change in quantity demanded by the percentage change in price gives the a) prestige demand curve. b) breakeven point. c) marginal cost curve. d) price sensitivity curve. e) price elasticity of demand.

51. A salesperson should try to close the sale a) at the end of the sales presentation. b) during the preapproach. c) about halfway through the sales presentation. d) after overcoming the biggest objection. e) several times during the sales presentation.

55. Yolanda's job is to find new customers for her company's telecommunication services. She encourages existing customers to add more services and finds customers who are completely new to the company. Yolanda would best be classified as a(n) a) order taker. b) order generator. c) missionary salesperson. d) technical salesperson. e) order getter

56. If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85, then a) its marginal costs are falling. b) average total cost is at its maximum. c) average total costs are rising. d) demand is elastic. e) average total cost is at its lowest level.

64. Which of the following is least likely to be directly involved in actually making sales? a) Order taker b) Current-customer salesperson c) Order getter d) Field order taker e) Support sales personnel

69. Below the breakeven point, a firm is operating a) with fixed costs only. b) with minimal variable costs. c) with no revenue. d) profitably. e) at a loss.

71. A support salesperson who usually advises customers on product characteristics and application, system design, and installation procedures is a(n) a) trade salesperson. b) inside order taker. c) tech support worker. d) missionary salesperson. e) technical salesperson.

71. Which factor is least likely to affect pricing decisions? a) Competitive prices b) Legal and regulatory issues c) Organizational and marketing objectives d) Customers' interpretation and response e) Shifting stock values

75. Which of the following involves building mutually beneficial long-term associations with a customer—usually a business customer—through regular communications over prolonged periods of time. a) CRM selling b) Missionary selling c) Exclusive selling d) Team selling e) Relationship selling

80. Premium-priced products are usually marketed through a) complex marketing channels. b) intensive or selective distribution. c) exclusive or intensive distribution. d) exclusive distribution only. e) selective or exclusive distribution.

81. A company may determine how many sales calls per year it needs to serve customers effectively and divide that by the average number of sales calls made by one salesperson in order to a) recruit appropriate salespeople. b) set sales force calling objectives. c) compensate salespeople fairly. d) train its salespeople. e) determine sales force size.

82. When better market conditions prevail or when company growth occurs, a company may suffer if it a) lowered its sales force objectives. b) recruited additional salespeople. c) decided to use a combination compensation plan. d) provided additional training for its sales force. e) cut back the size of its sales force.

87. Which of the sales force compensation methods is easy to administer, yields more predictable selling expenses, and provides sales managers with a large degree of control over salespeople? a) Straight commission b) Salary plus bonus c) Salary and commission d) Straight commission and combination e) Straight salary

89. A price developed in the consumer's mind through experience with the product is called a(n) a) external reference price. b) value-price guideline. c) frame of reference. d) internalized price. e) internal reference price.

90. When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on a) internal reference prices. b) symbol prices. c) high value products. d) discounted reference prices. e) external reference prices.

91. Lucy buys a new dress at T.J. Maxx that has a price tag with "Compare at $50.00. Our Price $29.99." This is an example of the use of a) internal referencing. b) cumulative discounts. c) seasonal discounts. d) base-point pricing. e) an external reference price.

95. A customer who is ___________ is likely to say, "People notice when you buy the most expensive brand of a product." a) price-conscious b) quality-conscious c) value-conscious d) socially conscious e) prestige-sensitive

99. In establishing sales promotion objectives, a marketer should always a) concentrate on activities that will increase consumer demand. b) focus on consumers. c) focus on resellers. d) be defensive in the methods used. e) align objectives with the organization's overall objectives.

A Macy's manager designs the casual clothing department such that one of Macy's private label pairs of jeans, priced at $24.99, is positioned next to a national brand of jeans, such as Levis, priced at $39.99. What is the manager attempting to accomplish? a) Everyday low prices strategy b) Odd-even pricing strategy c) Prestige pricing strategy d) Special-event pricing strategy e) Reference pricing strategy

A cost-based pricing method commonly used in retail is called a) value pricing. b) cost-plus pricing. c) cost discounting. d) differential pricing. e) markup pricing.

Each communication channel has a limit on the volume of information it can handle effectively. This limit is called a) transmission load. b) feedback. c) encoding. d) noise. e) channel capacity.

A direct-response information form found in a magazine advertisement that allows customers to send for more information has a primary objective of a) encouraging product trial. b) retaining loyal customers. c) stimulating demand. d) creating awareness. e) identifying prospects.

A major reason why a substantial amount of publicity material is rejected by media personnel is that the material is a) too long. b) written at too high a reading level. c) submitted by organizations that the media do not like. d) not persuasive enough. e) not newsworthy.

A market share objective a) is not recommended when sales for the total industry are declining. b) is not especially useful when sales for the total industry are increasing. c) is not especially useful when sales for the total industry are flat. d) is useful primarily in an industry where total sales are increasing. e) can be used effectively whether total industry sales are rising or falling.

A price-skimming strategy assumes that a) the initial demand is highly elastic. b) the product is efficient. c) it will be difficult to recoup development costs. d) all consumers have homogeneous tastes. e) the initial demand is highly inelastic.

A problem associated with _____ is that consumers can predict when prices will be lowered and delay purchases until that time. a) random discounting b) penetration pricing c) reference pricing d) everyday low pricing e) periodic discounting

A sharing of meaning defines a) promotion. b) information. c) noise. d) interference. e) communication.

A spokesperson for Mott's apple juice encourages television audiences to use its juice in the winter by serving it hot with a cinnamon stick. In this instance, Mott's is using promotion to a) stimulate primary demand. b) offset competitors' promotional efforts. c) facilitate reseller support. d) retain loyal customers. e) reduce sales fluctuations.

Advertisements such as the one proposed above for the Camry and hybrid SUVs, are most likely an example of a) product advertising. b) comparative advertising. c) competitive advertising. d) institutional advertising. e) reminder advertising.

Advertising agencies typically receive a) large fees from the companies whose ads they develop and place. b) a 15 percent commission from the company whose product they are helping advertise. c) a 10 percent commission from the advertising company and 10 percent from the media they use. d) a 25 percent commission paid by the media from which it makes purchases. e) a 15 percent commission paid by the media from which it makes purchases.

After the advertising budget is determined, the next step in creating an advertising campaign is a) creating the advertising message. b) creating the advertising platform. c) evaluating the advertising objectives. d) executing the campaign. e) developing the media plan.

All of the following are pricing strategies used by companies establishing prices of multiple products within a product line except a) premium pricing. b) price lining. c) captive pricing. d) bait pricing. e) penetration pricing.

All of the following are psychological techniques except a) customary pricing. b) prestige pricing. c) reference pricing. d) odd-even pricing. e) price skimming.

Although a radio announcer can read several hundred words a minute, a one-minute advertising message should not exceed 150 words because most announcers cannot articulate words into understandable messages at faster rates. This illustrates the ___________ consideration in effective communication. a) transmission load b) feedback c) encoding d) noise e) channel capacity

An advantage of the arbitrary approach for determining the advertising appropriation is that it is a) objective. b) unique. c) profitable. d) effective. e) Expedient.

Anything that reduces the accuracy and clarity of communication is called a) distraction. b) feedback. c) interference. d) discordance. e) noise.

As Will Marcum reads the copy for South Beach Hotel's upcoming magazine ad in Southern Living, he worries that no one will spend the time to read all the details of the facilities his resort has to offer. Wanting to have the greatest impact, Will focuses his creative efforts on the a) copy. b) body. c) text. d) signature. e) headline.

Communication through the use of brochures, annual reports, event sponsorships, and news stores is referred to as a) advertising. b) personal selling. c) sales promotion. d) publicity. e) public relations.

Competitors' prices, along with the marketing variables they emphasize, are determining factors in a) the instability of prices in a particular industry. b) using markup pricing for consumer goods. c) how much marketing research a firm needs to collect. d) using differential pricing to demonstrate quality differences. e) how important price will be to customers.

Danielle Robinson, account representative for EXpert Advertising, tells D'Orazio Tile Products that she is proposing to use 5 full-page, four-color ads in home-decorating magazines to achieve an increase in consumer and builder inquiries of 15 percent. This approach is an example of which of the following methods of determining advertising expenditure levels? a) Competitive parity b) Percent of sales c) Arbitrary d) Affordability e) Objective-and-task

Factors such as climate, seasons, and holidays tend to lead to the promotional objective of a) combating competitive promotional offers. b) facilitating reseller support. c) encouraging product trial. d) retaining loyal customers. e) reducing sales fluctuations.

For custom-made equipment or commercial construction projects, which pricing method is most likely used? a) Prestige b) Premium c) Differential d) Return-on-investment e) Cost-plus

Generally, in small firms, ___________ create(s) and implement(s) advertising campaigns. a) an advertising agency b) a group of multiskilled managers c) an advertising department d) freelance specialists e) one or two individuals

Glenwood is considering a markup pricing basis, with the cost for office visit plus vaccines at $45. If Glenwood were to add a markup of 33.3 percent of the costs, its price would be _____. a) $79 b) $65 c) $55 d) $78 e) $60

Goods that are priced primarily based on the way they have always been priced are examples of a) traditional pricing. b) professional pricing. c) everyday low prices. d) price lining. e) customary pricing.

If FedEx-Kinko's decided to outsource all of its marketing efforts to the MaxPro Company, which specializes in advertising, sales promotion activities, and public relations, FedEx-Kinko's would likely be striving to practice a) one-stop shopping. b) more expertise. c) pioneer promotional efforts. d) competitive promotional programming. e) integrated marketing communications.

If General Mills looks at Kellogg's cereal prices as the primary method of determining its own prices, General Mills is using a) price fixing. b) price discrimination. c) demand-based pricing. d) market share pricing. e) competition-based pricing.

If General Motors determines that it wants to sell 200,000 Chevrolet Acadias and sets the price at $29,500 because it knows that at that price it will reach that goal, the firm would be using a ___________ pricing method. a) cost-plus b) competition-based c) psychological d) comparison e) demand-based

If Target were to base its advertising appropriation on the amount that WalMart spends, it would be using the ______ approach. a) objective-and-task b) percent-of-sales c) industry-standard d) arbitrary e) competition-matching

If during an advertising campaign a certain portion of advertising runs continuously, and then during specific periods additional advertising is used to intensify the level of communication, a(n) ______ media schedule is being used. a) beating b) alternating c) flighting d) continuous with emphasis e) pulsing

If researchers at Merck Pharmaceuticals develop a cure for prostate cancer, the best way to announce this to the public and get wide media coverage would be through a a) captioned paragraph. b) press release. c) feature article. d) sponsorship. e) press conference.

Julie Reese is working on developing a magazine advertisement for Curves For Women, the ladies' fitness chain. She knows what she wants the advertisement to say and the illustrations she wants to use, but she is having a tough time putting it all together. Julie is having trouble determining the a) storyboard. b) artwork. c) copy. d) presentation. e) layout.

Kohl's, a department store featuring clothing and housewares, communicates in news story form about its organization and its efforts to support local children's hospitals. This information is transmitted through mass media at no charge and is therefore called a) news reporting. b) public relations. c) mass communications. d) free advertising. e) publicity.

Maintaining a certain market share, meeting competitors' prices, maintaining a favorable image, and achieving price stability are all associated with a _____ pricing objective. a) product quality b) market share c) survival d) profit e) status quo

Mike Stevens wonders whether the creative idea of using the character "Tom T. Turtle" as an image for marketing a new line of running shoes will be successful. He should suggest to his account representative that a(n) __________ be used to pretest the campaign. a) storyboard b) survey c) experiment d) GSR test e) consumer jury

Newspaper ads for Blue Haven Pools offering discounted prices during October are examples of which of the following uses of promotion? a) Retaining loyal customers b) Promoting new product uses c) Making salespeople more effective d) Stimulating primary demand e) Reducing sales fluctuations

Organizations that sell products to industrial markets or a few wholesalers tend to focus their promotion efforts on a) advertising. b) word-of-mouth communication. c) public relations. d) sales promotion. e) personal selling.

Price leaders, comparison discounting, and special-event pricing are applications of a) psychological pricing. b) professional pricing. c) product-line pricing. d) bait-and-switch. e) promotional pricing.

Reinforcement advertising is primarily targeted at a) new potential target markets. b) users of competitors' brands and products. c) anyone who uses that type of product. d) all the stakeholders of an organization. e) the current users of a particular product.

Sara Dickson is concerned about the effectiveness of Magnum, Inc.'s promotional messages, and is seeking an approach with immediate feedback. Sara is most likely to achieve this through a) television advertising. b) newspaper advertising. c) public relations. d) sales promotion. e) personal selling.

Some grocery stores collect data on competitive prices a) by calling their competitors. b) on a quarterly basis. c) through stores' purchase data. d) from their resellers. e) by using full-time comparison shoppers.

The Bentley Agency places $2,500 in radio spots and $17,500 in television spots for Darnell Insurance in June. For its efforts this month, the agency "traditionally" would receive ___________ in compensation. a) $2,500 b) $10,000 c) $1,000 d) $5,500 e) $3,000

The basic issues or selling points that an advertiser wants to include in an advertising campaign is (are) the a) advertising objectives. b) target audience objectives. c) media plan. d) advertising message. e) advertising platform.

The basic promotional objective underlying a magazine advertisement with a direct-response information form that requests the reader to complete and mail the form to receive additional information is to a) retain loyal customers. b) facilitate reseller support. c) reduce sales fluctuations. d) stimulate primary demand. e) identify prospects.

The effectiveness of an advertising campaign can be measured a) only after the campaign has been carried out completely and results have been tabulated. b) only before the campaign begins, to prevent unnecessary expenditures. c) during the campaign to determine whether more or less funds should be allocated, but not after the campaign. d) several weeks after the beginning of the campaign to determine whether the campaign is headed in the right direction. e) before, during, and after the campaign through the use of pretests, inquiries, and posttests.

The limitations in using publicity-based public relations tools stem primarily from the fact that a) marketers alter the length of publicity releases. b) publicity is never properly managed by media personnel. c) media personnel consider only unfavorable messages as newsworthy. d) it is time-consuming to convince media personnel that the information is newsworthy. e) media personnel control the content of the communication.

The makers of Whizz considered a new promotional method for their product. A small box of Whizz was placed in the mailbox of college students as they came on campus in the fall. Along with the Whizz, the students received a coupon for $1.00 off their next purchase. They could receive another coupon for $3.00 off if they went online and emailed five friends at another college, telling them about Whizz. The friends could then go to a website and print a coupon for $2.00 off their next purchase. The sample boxes given to the college students are an example of ______, while the emails to the five friends are an example of _____. a) sales promotion; advertising b) sales promotion; personal selling c) publicity; sales promotion d) viral marketing; sales promotion e) sales promotion; viral marketing

The primary goal of a media planner is to a) choose the best commercial spots available. b) develop a message that works well with the firm's target market. c) achieve the appropriate message reach and frequency. d) use a wide variety of media to ensure the entire target audience is exposed. e) reach the largest number of people in the target market within the budget constraints.

The step in developing an advertising campaign that directly precedes campaign execution is a) defining advertising objectives. b) creating the advertising platform. c) evaluating advertising effectiveness. d) developing a media plan. e) creating the advertising message.

The two main reasons for criticism of promotional activities are that promotion a) has some flaws, and it is deceptive. b) is deceptive, and it causes prices to rise. c) pervades our daily lives, and it creates needs in us. d) creates needs in us, and it encourages materialism. e) has some flaws, and it pervades our daily lives.

The vehicle through which the coded message is transmitted from the source to the receiver is called a(n) a) coder. b) decoder. c) encoder. d) relay channel. e) communication channel.

To announce its development of a solid fuel titanium rocket for the U.S. missile defense system, Unijet management feels it needs to get wide media coverage. Under these circumstances, which of the following would be its best alternative? a) Captioned photograph b) Feature article c) Editorial letters d) Television advertisement e) Press conference

To attract customers into a store, Safeway advertises its milk at less than cost, hoping that customers will purchase other groceries as well. This pricing strategy is called a) price lining. b) special-event pricing. c) differential pricing. d) comparison discounting. e) price leader pricing.

When Anheuser-Busch ran an advertising campaign featuring the slogan, "Know when to say when," it was using a) competitive advertising. b) public relations. c) product advertising. d) public service awareness. e) advocacy advertising.

When Gabriella logs on to Dell's website, she sees a notebook model priced well below $1,000. As she continues through the site to view the other options, she realizes the first one she saw was the cheapest model available, but she of course wants more features. Dell is utilizing a) bait and switch. b) price lining. c) captive pricing. d) penetration pricing. e) bait pricing.

When Sears promotes the benefits and strengths of its Kenmore brand appliances, it is attempting to build a) primary demand. b) pioneer promotion. c) prospects. d) brand awareness. e) selective demand.

When Yoplait Yogurt gives a portion of its profits to Breast Cancer Research, it is using a) promotion. b) integrated marketing communications. c) charity marketing. d) charitable promotion. e) cause-related marketing.

When a company attempts to influence a consumer's perception of price to make a product's price more attractive and reduce "sticker shock," it is using a ______ pricing strategy. a) competition-based b) professional c) promotional d) comparison e) psychological

When a salesperson varies the physical distance between himself and a customer he is using a) kinesic communication. b) personal selling. c) tactile communication. d) comfort relations. e) proxemic communication.

When respondents are shown a list of various products, brands, and company names and then asked about advertisements they have seen lately, researchers are conducting a(n) a) unaided recall test. b) pretest. c) recognition test. d) aided recognition test. e) aided recall test.

Which of the following is a requirement for setting pricing objectives? a) The objectives should be short-term oriented. b) There should be only one pricing objective. c) An evaluation of competitors' prices should be made. d) The cost structure should be identified. e) The objectives should be explicitly stated.

Which of the following is not a public relations tool? a) Feature article b) Company magazine c) News release d) Annual report e) Product sample

_____ is a broad set of communication efforts used to create and maintain favorable relationships between a company and its stakeholders. a) Stakeholder management b) Personal selling c) Integrated marketing communications d) Sales promotion e) Public relations

The process of putting one's thoughts (meaning) into signs (symbols) is called a) decoding. b) noise. c) interference. d) transmission. e) the coding process.

Marketing Chapter 21, Marketing Chapter 20, Marketing Chapter 19, Marketing Chapter 18, Marketing Chapter 17

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