Exam III
The goal of the competition-based pricing is __________.
not to match or beat competitors' price
When companies set their promotion budgets to match competitor's outlays, they are using the __________ method.
Competitive-parity
__________ uses buyers' perceptions of value as the key to pricing.
Customer value-based pricing
The FTC has adopted a three-day cooling rule to give special protection to __________.
Customers who were not seeking a product
Mass marketers can expect consumers to distinguish between commercial message sources to maintain a clear image of a company and its brands
False
Price is the most inflexible of the marking mix elements.
False
The affordable method of setting advertising budgets takes into consideration the effects of promotion on sales.
False
While regulations exist to prohibit deceptive pricing practices, in reality, most reputable sellers do the minimum required to meet the regulations
False
A(n) ________ is a set of symbols that the sender transmits.
Feedback loop
A manufacturer has fixed costs of $100,000, a variable cost of $10 per unit of output, and break-even volume of 50,000 units. What should the manufacturer's unit cost be in order to break even?
$12
The fixed cost in manufacturing a single LED monitor is $40 and the variable cost is $12. If the company expects to manufacture 5,000 monitors, the total costs would be __________.
$260,000
What is predatory pricing?
Selling below cost with the intention of punishing a competitor
Which of the following statements does not accurately reflect PR's role in marketing?
As the use of earned and shared digital content grows rapidly, PR is playing a smaller role in marketing content management.
The six stages consumers normally pass through on their way to making a purchase are known as the _________ stages.
Buyer-readiness
Netflix recruits "Grammasters," influencers who have large Instagram followings. They travel around the world taking photos and creating videos. This is an example of using __________ as a personal communication channel.
Buzz Marketing
Marketing management must first __________ when developing an advertising program.
Set advertising objectives
__________ and __________ are core PR strengths and that plays well into the use of online, mobile, and social media.
Storytelling; engagement
Under oligopolistic competition ___________.
The market consists of only a few large sellers
Advertising has numerous goals. Which of the following is NOT one of those goals?
To work with lobbyists and legislators in developing industry regulations
Changing technologies, especially with digital content, is significantly increasing the role of public relations is a firm's integrated marketing communications program.
True
Companies use PR to build good relations with consumers, investors, the media, and their communities.
True
Direct and digital marketing includes catalogs, e-mail, direct mail, social media, and mobile marketing.
True
Direct marketing includes catalogs, direct-response TV, kiosks, the internet, and mobile marketing.
True
If a company faces competition, its demand at different prices will depend on whether competitors' prices stay constant or change with the company's own prices
True
If demand is elastic rather inelastic, sellers will consider lowering their prices
True
The percentage-of-sales budget is based on the availability of funds rather than on opportunities.
True
Factors a company considers in setting its price include all of the following EXCEPT
Value of the product on the pre-owned market
Beach Heaven uses two-part pricing for its holiday resort charges. Because this is a service, the price is broken into fixed fee for the room plus a(n) _____________ usage rate for activities, including kite-sailing and child care.
Variable
When does persuasive advertising become comparative advertising?
When a company directly or indirectly compares its brand to others
Market penetration prices are preferred in all of the following conditions except __________.
enough buyers must want the product at a higher price
The first task for a communicator in preparing marketing communications is to __________.
identify the target audience
As marketers adopt richer but more fragmented media and promotion mixes to reach their diverse markets, they risk creating a communications hodgepodge for consumers. To prevent this, companies have adopted the concept of __________.
integrated marketing communications (IMC)
Federal legislation on __________ states that sellers must set prices without talking to competitors.
price-fixing
The pricing method in which sellers combine several products and offer a reduced price is known as __________.
product bundle pricing
What sets the floor for product prices?
product costs
Some sellers use 00-cent endings on regularly priced items and 99-cent endings on discount merchandise. This is an example of pricing referred to as __________.
psychological pricing
Under __________, the market consists of many buyers and sellers trading in a uniform commodity.
pure competition
Techniques that can be used by sellers for avoiding customers' perception of price gouging includes all of the following except __________.
rationing products to customers
In __________pricing, the company sells a product or service at two or more prices, even though the difference in prices is not based on differences in costs.
segmented
Informative Advertising is often used in the _________________ of the product life cycle
Introduction Stage
Which of the following is true of product bundle pricing?
It promotes the sale of products that consumers might not otherwise buy.
__________ reverses the usual process of first designing a new product, determining its cost, and then asking, "Can we sell it for that?"
Target costing
Which of the following is true of public policies and pricing?
The Robinson-Patman Act governs interstate commerce
Which of the following statements does not apply to the description of prices?
In recent decades price factors have gained increasing importance.
Which type of message appeal does OXO utilize?
Rational
__________ are formed by noting current prices, remembering past prices, or assessing the buying situation
Reference Prices
__________ advertising is more suitable for mature products.
Reminder
Failure to enter the current price into a retailer's system may result in charges of ______.
Scanner Fraud
Persuasive advertising is used to build _________________, which is demand for a specific product or brand
Selective Demand
Which of the following is NOT a major public relations tool?
Annual reports and brochures
John Deere does very little promoting of its lawn mowers, garden tractors, and other residential consumer products to final consumers. Instead, John Deere's sales force works with Lowe's, The Home Depot, and other channel members. This is an example of using __________for promotion.
A Push Strategy
The Kmart commercials depicted in the video utilized both advertising and entertainment. This is known as which of the following? A. Madison & Vine B. Public relations C. Personal selling D. Lifestyle advertisement E. Brand integration
A. Madison & Vine
_________ tend to be straightforward outlines of benefits and positioning points that the advertiser wants to stress.
Advertainment statements
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is considered __________.
Advertising
Kmart did not create the "Ship My Pants" and "Big Gas Savings" commercials. Instead, they hired a(n) __________ named Draftfcb.
Advertising Agency
When the product differs greatly from those of competitors, ___________.
Advertising can point out the differences to consumers
A(n) __________ refers to promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way.
Allowance
Persuasive advertising is used when products are ___________ and competition is still _______________
Established; Entering the Market
Customers located close to a firm are less likely to benefit from FOB-origin pricing than customers located farther away.
False
When iPhone was first introduced into the market, Apple highlighted its benefits and qualities. This type of advertising is referred to as __________.
Informative Advertising
How can public relations have a strong impact at a much lower cost than advertising?
Interesting brand stories, events, videos, or other content can be shared by sources out of the company's control, but to its benefit.
Which of the following statements about magazines as an advertising medium is true?
Magazines cannot offer high geographic selectivity
Reminder advertising is used for ______________ to mainstream existing customer awareness and loyalty.
Mature Products
Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.
Monopolistic Competition
In which type of competition do fast-food restaurants operate?
Monopolistic competition
Which of the following is the most logical budget-setting method?
Objective-and-task method
Despite its potential strengths, public relations are occasionally described as a marketing stepchild because of all of the following reasons except __________.
PR practitioners consider their job as simply communication
Which of the following media options would be the LEAST costly for Second Avenue's promotional efforts?
Periodic advertising in a local newspaper that forms a regular monthly schedule
To which category of the marketing communication mix do sales presentations, trade shows, and incentive programs belong?
Personal Selling
the first step in creating effective advertising messages is ______.
Planning a message strategy
A large ink jet printing company enters the letter press market and sells its printing services at a loss just to drive Hammerpress out of business. This is an example of _________.
Predatory pricing
Which of the following statements does NOT describe price?
Price is the only element in the marketing mix that represents costs.
Informative advertising is used to build ______________ for an overall product category
Primary Demand
A supermarket places its store brand of blackberry jam priced at $5 per jar in the fruit preserves aisle, alongside the jam jars of a better known brand-whose products are priced at $8 apiece. Store managers reason that customers are more likely to choose the store brand instead of the better-known brand when they realize the price difference. what price adjustment strategy is evident in the supermarket's reasoning?
Psychological Pricing
In Vina del Mar, Chile, a large number of shops specialize in selling the same quality of seafood products along the beach frequented by tourists. No individual shop dares to charge more than the going price without fearing loss of business to other shops. This exemplifies __________.
Pure Competition
Market skimming prices are preferred in all of the following conditions except __________.
an initial low price is set by the companies
Among the buyer-readiness stages, the first stage is ________.
awareness
Companies that make products that must be used along with a main product are using __________.
captive-product pricing
Techniques that can be used by sellers for avoiding customers' perception of price gouging includes all of the following except __________.
low-price fighter items
Major factors for changing the face of today's marketing communications include all of the following except __________.
marketers are going for mass marketing
The reasons for considering public relations, which has a greater impact at a much lower cost than advertising, include __________.
the possibility of stories to be picked up by different media
The "bottom of the pyramid" refers to ___________
the world's poorest consumers
