MKTG Exam 4
Some manufacturers give ______________ to retailers to pass on to the retailers' salesclerks to encourage aggressive selling of specific items or lines.
"push money"
Consider the following demand schedule for a product:
$150
Consider the following demand schedule for a product: As the quantity demanded/sold increases from 3 units to 4 units, what is the marginal revenue?
$150
Which of the following prices is most likely to be seen if a firm is using odd-even pricing?
$99.95
Which of the following is likely to have the lowest total personal selling expenses?
A company with straight commission salespeople and low sales volume
What is the objective of a target return strategy?
A specific level of profit
A firm's sales training should cover:
All of these alternatives are correct
Marginal analysis:
All of these alternatives are correct
A technical specialist:
All of these alternatives are correct.
Customers are likely to be more price sensitive when:
All of these alternatives are correct.
Marketing managers should make specific strategy decisions about:
All of these alternatives are correct.
Quantity discounts are offered by sellers to:
All of these alternatives are correct.
Even though commissions are often based on a percentage of dollar sales, they can be based on _____________ instead.
All of these alternatives are true
People who help order-oriented salespeople—but don't try for orders themselves are:
All of these are correct.
Which of the following is not an example of price?
All of these are examples of price.
What does the AIDA concept stand for?
Attention, Interest, Desire, Action
Which of the following costs decrease with increase in output?
Average fixed cost per unit
Pioneering ads for a product work best in which stage of the adoption process?
Awareness
A paving contractor wants to work on road construction contracts administered and paid for by the state government. The contractor submits a sealed proposal to the state department of transportation for each construction job. The proposal contains a description of how the contractor will fulfill the specifications for the job at a specified price. The contractor is engaging in:
Bid pricing
_____ means offering a specific price for each possible job rather than setting a price that applies for all customers.
Bid pricing
Reminder ads for a product work best in which stage of the adoption process?
Confirmation
With the ___________ approach, the sales rep begins by making some general benefit statements to get the customer's attention and interest.
Consultative selling
Point-of-purchase ads for a product work best in which stage of the adoption process?
Decision
Persuading ads for a product work best in which stage of the adoption process?
Evaluation and Trial
Comparative ads for a product work best in which stage of the adoption process?
Evaluation and trial
In the United States, the _____ has the power to control unfair or deceptive business practices, including deceptive advertising.
FTC
Sales-oriented pricing objectives include:
Growth in unit sales, dollar sales, or share of market.
______________ advertising tries to develop goodwill for a company or even an industry—instead of a specific product.
Institutional
Identify a disadvantage of break-even analysis.
It does not consider the effect of price on the quantity that consumers will want.
A __________ is a written statement of what a salesperson is expected to do.
Job description
Which of the following is an example of a cost-oriented price setting approach?
Markup pricing
Which of the following is a status quo pricing objective?
Meeting competition
All of the following publicity tools are examples of one-way communication from a company to consumers or business customers EXCEPT:
MySpace.
A prepared sales presentation:
None of these alternatives is correct.
Which of the following is a status quo oriented pricing objective?
Nonprice competition
Which of the following is an example of a variable cost for a producer?
Packaging materials
A jewelry store advertises a one-carat diamond engagement ring as being discounted 50 percent off the original price of $10,000, for a sale price of $5,000. However, the ring was never put on sale at the original price, and its actual cost to the retailer was only $1,500. This jewelry store could be accused of using:
Phony list prices
____________ advertising tries to develop primary demand for a product category rather than demand for a specific brand.
Pioneering
With the ___________ approach, the salesperson assumes that a customer faced with a particular stimulus will say yes to his request for an order.
Prepared sales
With the ____________ approach, the salesperson uses a memorized presentation that is not adapted to each individual customer.
Prepared sales
Which of the following sales approaches is most to be suitable for simple order-taking?
Prepared sales presentation
Which sales presentation would be "best" for convenience (food) store clerks?
Prepared sales presentation
Elise Noble works as a telephone salesperson for the Catalog Division of JC Penney. Her primary job is to call customers with Penney charge accounts to inform them about sale items and ask if they would like to order the sale items. Which of the following kinds of sales presentations would be best for Elise to use?
Prepared sales presentation.
Some consumers maintain a "price-quality association," meaning that if a product has a high price, they assume the product must have high quality. This "price-quality association" is the basis for the use of:
Prestige pricing
_____ is what a customer must give up to get the benefits offered by the rest of a firm's marketing mix.
Price
_____ is setting a few price levels for a product line and then marking all items at these prices.
Price lining
_____ involves setting one price for a set of products.
Product bundle pricing
__________ involves following all the leads in the target market to identify potential customers.
Prospecting
Which of the following advertising approaches delivers ads to consumers based on the interactions they exhibit in media such as Facebook, Pinterest, and Twitter?
Social targeting
The _________ compensation plan increases the amount of sales supervision needed.
Straight salary
Which of the following pricing objectives is a producer seeking when the producer tries to obtain some percent return on his investment?
Target return
These salespeople are often science or engineering graduates with the know-how to understand the customer's applications and explain the advantages of the company's product.
Technical specialists
The advertising medium of __________ has a wide reach, is good for getting attention and for demonstrations, but it is expensive, has a lot of clutter, and in many cases has a less selective audience.
Television
A cash discount of 3/15, net 30 means that:
The buyer gets a 3 percent discount off the face value of the invoice if the invoice is paid within 15 days.
Which of the following costs do not change with an increase in output?
Total fixed cost
When considering the advertising medium of magazines, which of the following advantages and disadvantages apply?
Very targeted, good detail, good "pass along," but inflexible and long lead times.
The most popular sales force payment method is:
a combination plan
The Robinson-Patman Act says that to be legal, price differences must be based on:
a need to meet competition and cost differences
Trying to sell a firm's new product to a large market at one low price is known as:
a penetration pricing policy
A rebate is:
a refund paid to consumers after a purchase.
A discount that is offered to encourage buyers to stock earlier than present demand requires is:
a seasonal discount
Cooperative advertising is:
a way for a producer to get more promotion for its advertising dollar.
Price reductions given to channel members to encourage them to advertise or otherwise promote a firm's products locally are:
advertising allowances
A salesperson who seeks possible buyers with a well-organized sales presentation designed to get new business is:
an order getter.
"Cooperative advertising" involves producers:
and intermediaries sharing in the cost of local advertising.
Salespeople are likely to be responsible for:
any or all of these are correct
Noncumulative quantity discounts
apply only to individual orders.
Antidumping laws:
are used in an effort to control the minimum price of imported products.
Setting prices by adding a "reasonable" markup to a firm's average cost is called:
average-cost pricing
________ ads are small rectangular boxes that usually include text, graphics, and sometimes video to create interest.
banner
Final customers or users are normally asked to pay ______________ prices for products they buy.
basic list
When an online ad is delivered to a person's computer based on previous websites that person has visited, this is called:
behavioral targeting
When a company includes "stories" and/or videos on its website of how it has helped individual customers solve an important problem, this is an example of a:
case study.
A _____ is the salesperson's request for an order.
close
With the ___________ method of payment, some salary and some commission are included.
combination
The ____________ method of payment uses a percentage of dollar sales in calculating compensation.
commission
Break-even analysis can be useful for:
comparing pricing alternatives
Advertising which tries to develop selective demand for a specific brand rather than a product category is called ______________ advertising.
competitive
An ad stressing the advantages of one brand of cookware—compared to similar (but unnamed) competitive products—is an example of ______________ advertising.
competitive
"Price fixing" means:
competitors getting together to raise, lower, or stabilize prices.
Reminder ads come under which stage of the adoption process in advertising?
confirmation
With the ___________ approach, the customer and the salesperson work together to satisfy the customer's needs and solve the problem.
consultative selling
The __________ involves developing a good understanding of the individual customer's needs before trying to close the sale.
consultative selling approach
When a website places a small file (containing information about the visitor) on the computer of people who visit its site, this file is called a(n):
cookie
A producer and intermediaries sharing the cost of ads in local media is called:
cooperative advertising
"Push money" is most likely to be offered to:
cosmetics salespeople at a department store
According to the text, the two basic approaches to price setting are
cost-oriented and demand-oriented price setting
According to the text, the two basic approaches to price setting are:
cost-oriented and demand-oriented price setting.
The _____ type of competitive advertising aims for immediate buying action.
direct
A supermarket manager should use ______________ advertising to increase store traffic during the middle of the week.
direct competitive
A typical retailer's newspaper ad stressing "today's" sale prices on "regular" stock is an example of ______________ advertising.
direct competitive
______________ are reductions from list price that are given by a seller to a buyer who either gives up some marketing function or provides the function himself.
discounts
The basic problem with the average-cost approach is that it
does not consider cost variations at different levels of output.
Offering a CUMULATIVE quantity discount seeks to:
encourage the buyer to make additional purchases.
Prices are called "administered" when:
firms set their own prices for some period of time—rather than letting daily market forces determine their prices.
A trade discount is also called a _____.
functional discount
"Technical specialists":
help explain technical details as needed.
Total cost:
increases directly with increases in total variable cost
The National Cheese Association's ad theme "We are making better cheese for you" is an example of:
institutional advertising
Total fixed cost:
is the sum of those costs which do not change in total no matter how much is produced.
The two basic decisions to be made in developing a compensation plan are the method of payment and
level of compensation.
Pioneering advertising is often needed during the ______________ stage of the product life cycle.
market introduction
A _____ is a dollar amount added to the cost of products to get the selling price.
markup
The sequence of markups firms use at different levels in a channel is referred to as a
markup chain
The sequence of markups firms use at different levels in a channel is referred to as a:
markup chain
Price discrimination:
may be legal if the firm can prove that different prices were set based on different costs.
A "penetration pricing policy":
may be wise if a firm expects strong competition very soon after its product introduction
Gross margin is expressed as
net sales minus cost of goods sold
Some retailers commonly use prices that end in certain numbers. They seem to assume that their customers see prices with these numbers as substantially lower. This is
odd-even pricing
Some retailers commonly use prices that end in certain numbers. They seem to assume that their customers see prices with these numbers as substantially lower. This is:
odd-even pricing
A straight salary
offers the most security for the salesperson
A _____ policy means offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities.
one-price
A Wendy's fast-food restaurant needs ______________ to serve its customers.
order takers
The three basic sales tasks are:
order-taking, supporting, and order-getting
When an advertiser pays a fixed amount (e.g. 70 cents) each time a Web surfer clicks on the advertiser's ad and links to the advertiser's website, this process is called a(n):
pay-per-click
Some customers encourage the use of ______________ by paying more attention to supposed price discounts than to the actual prices (and values).
phony list prices
A sales presentation in which the sales rep does most of the talking, using a "canned" presentation to obtain a "yes" answer to a "trial close" is a:
prepared sales presentation
A lawn care firm selling by phone to people listed in the telephone directory should use which of the following sales presentations?
prepared sales presentation.
Setting relatively high prices to suggest high-quality or high-status is:
prestige pricing
The idea that people will pay extra for "quality" and status is the idea behind
prestige pricing
Over time, a skimming policy usually involves
price movement down the demand curve.
An "all the traffic will bear" pricing objective is a ______________ objective.
profit maximization
A focus on a target return or return on investment are characteristic of _____ pricing objectives.
profit-oriented
"Unfair trade practice acts":
protect certain limited-line retailers from "ruinous" price competition.
When a producer has won brand insistence in its target market—and just wants to keep the product's name before the public—it can use:
reminder advertising
Order taking involves:
routinely completing sales made regularly to target customers.
___________ is the specific sales or profit objective a salesperson is expected to achieve.
sales quota
Profit maximization pricing objectives:
seek to get as much profit as possible
The text says "markup" means percent of:
selling price - unless otherwise stated
The typical markup (percent) is the:
selling price minus the cost of the item, divided by the selling price- times 100.
Order takers are concerned with:
selling to regular customers, completing most sales transactions, and maintaining relationships with their established customers.
Value in use pricing
sets a price that will capture some of what customers will save by substituting the firm's product for the one currently being used.
"Comparative advertising":
should be supported by research evidence
A _____ price policy tries to sell the top of the demand curve at a high price before aiming at more price-sensitive customers.
skimming
When Apple first introduced its iPhone in the U.S. market, it priced it at $600. Several months later, Apple reduced the price to $400. And several months after that, it reduced the price again to $200. What pricing policy was Apple using in its initial price strategy?
skimming price
Total fixed cost
stays the same even if production stops temporarily.
A reduction from list price given to intermediaries to get shelf space for a product is a:
stocking allowance
A salesperson on a(n) ________ earns the same amount regardless of how he or she spends time.
straight salary
A salesperson who earns the same gross pay each month is in what type of compensation program?
straight salary
Which of the following is a profit-oriented pricing objective?
target return
A pricing objective that seeks a specific level of profit is a:
target return objective
All of the following are payment methods for personal selling except
tax deductions
At break-even point (BEP),
the firms total cost will equal its total revenue
The stock turn rate is
the number of times the average inventory is sold in a year
The stockturn rate is
the number of times the average inventory is sold in a year.
A flexible-price policy means offering
the same product and quantities to different customers at different prices.
"Don't-rock-the-boat" thinking is most common when
the total market is not growing.
Skimming may maximize profits in the market introduction stage for an innovation, especially if
there are few substitutes.
Average cost is obtained by dividing:
total cost by the related quantity.
The price that maximizes profit is the one that results in the greatest difference between
total revenue and total cost.
A telecommunications company offers its salespeople a traditional straight commission compensation plan based on a percentage of dollar sales. The company will incur the highest total personal selling expenses when:
total sales revenue is at its highest.
The sum of those changing expenses which are closely related to output is called:
total variable cost.
Competitive advertising
tries to develop selective demand for a specific brand.
Reminder advertising
tries to keep the products name before the public
A penetration pricing policy
tries to sell the whole market at one low price.
A "skimming pricing policy":
usually involves a slow reduction in price over time
A firm that sets prices such that consumers will save 15% of their fuel costs by buying its products is employing _____.
value in use pricing
_____ means setting a fair price level for a marketing mix that really gives the target market superior customer value.
value pricing
"Copy thrust" refers to:
what is to be communicated by the words and illustrations.
Missionary salespeople
work for producers calling on their intermediaries and their customers
Customer service reps
work with customers to resolve problems that arise with a purchase, usually after the purchase has been made.
