MKTG 304 Exam 4

JCPenney 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 ____% for this product.

57

After selecting a pricing strategy, what is the next step in the establishment of prices?

Determining a specific price

Kinesic communication is an element in which type of promotional method?

Personal selling

If Albertsons Market advertise 2-liter bottles of Coca-Cola for 89 cents to generate store traffic so that shoppers will purchase other items at regular prices, the grocer is using

a price leader

Odd-even pricing is

a psychological pricing strategy

Xander is preparing the promotional plan for Wenger Swiss Gear backpacks in early May. This promotion will be executed in the month of August and will be a paid form of nonpersonal communication. It will be communicated to a target audience through mass media. Xander is using the ______ form of promotion.

advertising

If a product's target market consists of millions of people, marketers are most likely to focus promotional efforts on

advertising and sales promotion

A market share objective

can be used effectively whether total industry sales are rising or falling

Pricing the basic product in a product line low while pricing products that go with the basic product at a higher level is called

captive pricing

Samsung has been relatively happy with sales of its Galaxy S9 phone. However, when Apple came out with the newest iPhone X, Samsung released advertisements marketing all of the features and benefits its Galaxy phone has to offer. Samsung's promotional objective is to

combat competitive promotional efforts

A common form of tactile communication in U.S. business activities is

handshaking

The coordination of promotion and other marketing efforts for maximum informational and persuasive impact defines

integrated marketing communications.

New introductory promotion is most likely to be used during the ____ stage of the product life cycle.

introduction

A product is a price leader when

it is sold at less than cost in the hope that sales of other products will increase

Adidas is establishing a ______ pricing objective to maintain or increase its product's sales in relation to total industry sales.

market share

Anything that reduces the accuracy and clarity of communication is called

noise

All of the following are pricing strategies used by companies establishing prices of multiple products within a product line except

penetration pricing

If Kashi wants to gain a large market share quickly with its new line of reduced-fat snack crackers, it should use

penetration pricing

The "White Sale" that many department stores have every year a few weeks after Christmas is an example of

periodic discounting

What type of pricing strategy is used in a situation where the seller has an ethical responsibility not to overcharge the client and the fees do not relate directly to the time and/or effort spent in specific cases?

professional pricing

If the push policy is used in promoting a product, the firm

promotes primarily to the next marketing institution down the marketing channel (intermediaries/wholesalers and retailers).

Advertising, personal selling, sales promotion, and public relations are called

promotion mix elements

When a salesperson varies the physical distance between himself and a customer he is using

proxemic communication

____ is a broad set of communication efforts used to create and maintain favorable relationships between a company and its stakeholders.

public relations

Toasties offers customers a card that allows them to have a free sandwich for every seven that have been purchased and provides various discounts throughout the year. The primary promotional objective of programs such as this is

retaining existing customers

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.

selective

When LG promotes the benefits and strengths of its LG brand appliances, it is attempting to build

selective demand

In the GEICO advertisement that claims, "15 minutes can save you 15% or more," GEICO is the communication

source

What type of pricing objective would an organization use if it were in a favorable position and desired nothing more?

status quo

A price-skimming strategy assumes that

the initial demand is highly inelastic

Integrated marketing communications allow an organization to coordinate and manage its promotional efforts to

transmit consistent messages to its current and potential customers..

Pepsi-Cola has just released a new line of sparkling water called Bubly. To encourage customers to start adopting the new brand, Pepsi-Cola should engage in promotions that focus on

creating awareness

Primary demand is defined as

demand for a product category

The three primary bases for developing prices are

demand, competition, and cost

When establishing prices, a marketer's first step is to

develop pricing objectives

High-end luxury products that will be priced high do not need to evaluate their competitor's prices.

false

Which of the following would be used in setting the price of a new product if considerable competition is expected?

penetration pricing

To attract customers into a store, Kroger advertises its milk at less than cost, hoping that customers will purchase other groceries as well. This pricing strategy is called

price leader pricing

Which type of pricing objective can reduce a firm's risk by helping to stabilize demand for its products?

status quo

As their meeting concludes, Jacob rises and thanks Esme for taking the time to come by and explain her firm's new line of industrial fasteners. A handshake, which is best described as a form of _____ communication, concludes the session.

tactile