Marketing Chapters 18-20

A business's rental of production space is an example of a _____. a. variable cost b. break-even point c. marginal cost d. fixed cost e. total cost

d. fixed cost

Which personal selling process step may involve calling on customers without prior consent? a. overcoming objections b. approach c. preapproach d. prospecting e. making the presentation

b. approach

Check My Work Which of the following pass on to a business customer the cost savings gained through economies of scale a. allowances b. quantity discounts c. cash discounts d. trade discounts e. seasonal discounts

b. quantity discounts

Sales force objectives for the entire force are normally stated in terms of all of the following EXCEPT _____. a. market share b. sales territory c. dollar sales volume d. unit sales volume e. profit

b. sales territory

Which of the following product-line pricing strategies is NOT generally used for business products? a. bait pricing b. price lining c. captive pricing d. premium pricing e. psychological pricing

e. psychological pricing

Which of the following pricing objectives can reduce a firm's risks by helping to stabilize demand for its products? a. profit b. cash flow c. market share d. product quality e. status quo

e. status quo

Which pricing strategy provides the most flexible introductory base price? a. price skimming b. penetration pricing c. captive pricing d. periodic discounting e. premium pricing

a. price skimming

Price is a key element in the marketing mix because it relates directly to the generation of total _____. a. profits b. price competition c. elasticity of demand d. revenue e. market share

d. revenue

Which of the following is the most expensive sales promotion method? a. free samples b. consumer contests c. premiums d. coupons e. point-of-purchase materials

a. free samples

During which step in the personal selling process is listening especially important? a. making the presentation b. following up c. prospecting d. overcoming objectives e. approach

a. making the presentation

Firefly Space Shuttles is using a strategy of maximizing revenues by making numerous price changes in response to demand, competitors' prices, or environmental conditions. This is best described as _____. a. yield management b. competition-based pricing c. cost-plus pricing d. cost-based pricing e. markup pricing

a. yield management

Which of the following is NOT a factor affecting the routing and scheduling of sales calls? a. number of customers in the territory b. sales call duration c. compensation method d. sales call frequency e. sales territory size and shape

c. compensation method

Sleep Train's Presidents Day sales are an example of _____. a. negotiated pricing b. penetration pricing c. periodic discounting d. price skimming e. secondary-market pricing

c. periodic discounting

Check My Work Which of the following is the point at which the costs of producing a product equals the revenue made from selling the product? a. demand curve b. marginal revenue c. fixed cost d. break-even point e. marginal cost

d. break-even point

Which of the following is NOT one of the factors that influence the assessment of value? a. price levels b. motivations to use available information about prices c. perceived quality d. elasticity of demand e. time constraints

d. elasticity of demand

ACME Corp. offers a price discount to encourage prompt payment. Which of the following is it likely to use? a. allowance b. quantity discount c. seasonal discount d. cash discount e. trade discount

e. trade discount

Which of the following are likely to restock shelves, obtain more shelf space, set up displays, provide in-store demonstrations, and distribute samples to store customers? a. missionary salespeople b. technical salespeople c. inside salespeople d. support personnel e. trade salespeople

e. trade salespeople

In the absence of government controls, pricing is a(n) ____ and ____ way to adjust the marketing mix. a. flexible; convenient b. rigid; convenient c. ethical; convenient d. flexible; ill-timed e. flexible; challenging

a. flexible; convenient

A price developed in the buyer's mind through experience with the product is a(n) _____. a. internal reference price b. experience price c. trade discount d. external reference price e. break-even point

a. internal reference price

Which of the following trade sales promotion methods is best suited to high-volume, high-profit, easily handled products? a. merchandise allowance b. scan-back allowance c. buy-back allowance d. dealer loader e. cooperative advertising

a. merchandise allowance

Assume a retailer purchases a can of premium dog food at $2.25 and adds 75 cents to the cost, making the price $3. What is the markup as a percentage of selling price? a. 5% b. 25% c. 100% d. 50% e. 33%

b. 25%

Kara Thrace operates a service business that engages in systematically collecting data on brands and prices at competitors' stores. For which stage of the price establishment process would this service be most appropriate? a. assessing the target market's evaluation of price b. evaluating competitors' prices c. selecting a basis for pricing d. developing pricing objectives e. selecting a pricing strategy

b. evaluating competitors' prices

Which of the following support personnel or take orders, follow up on deliveries, and provide technical information? a. missionary salespeople b. inside salespeople c. trade salespeople d. technical salespeople e. support personnel

b. inside salespeople

Josh, who has an engineering degree, gives practical assistance to ACME Corp.'s current customers, advising them on product characteristics and applications, system designs, and installation procedures. Josh is best described as a(n) _____. a. missionary salesperson b. technical salesperson c. trade salesperson d. inside salesperson e. support person

b. technical salesperson

Spacely Inc.'s sprockets have inelastic demand. If Spacely raises the price of sprockets, what will be the result? a. a decrease in market share b. a decrease in product inventory c. an increase in total revenue d. an increase in market share e. a decrease in total revenue

c. an increase in total revenue

Which of the following objectives is likely to be more expensive for a firm as the cost of materials and research and development may be greater? a. cash flow b. market share c. profit d. product quality e. status quo

d. product quality

Maria is concerned about both price and quality of a product. Marketers would best describe her as which of the following? a. price-conscious b. prestige-sensitive c. price-obsessed d. value-conscious e. utility-sensitive

d. value-conscious

Relationship selling differs from traditional personal selling due to its adoption of a _____. a. recovery behavior b. automation technology c. team approach d. short-term perspective e. long-term perspective

e. long-term perspective

Which of the following is a major advantage of nonprice competition? a. building customer loyalty toward the brand b. exceeding the breakeven point c. fostering a value-conscious mindset d. building market share e. fostering a price-conscious mindset

a. building customer loyalty toward the brand

ACME Corp. is running a sales promotion in which it offers to give retailers $1 for each case of widgets purchased during the promotion. This best describes _____. a. buying allowance b. dealer loader c. dealer listing d. cooperative advertising e. free merchandise

a. buying allowance

To boost sales, ACME Corp. launched a sales promotion effort that required individuals to compete for a free iPad by collecting stickers on the inside of packaging of ACME widgets. This best describes a _____. a. consumer game b. consumer contest c. coupon d. rebate e. sweepstakes

a. consumer game

Which of the following price bases is mostly likely to be used for commercial construction projects or custom made equipment? a. cost-plus pricing b. yield management c. demand-based pricing d. markup pricing e. competition-based pricing

a. cost-plus pricing

Which of the following shows the quantity of products a firm expects to sell at various prices if other factors remain constant? a. demand curve b. demand line c. marginal analysis d. reference price e. break-even point

a. demand curve

Which of the following pricing strategies sets the basic product in a product line low, but the price on the items required to operate or enhance it are higher? a. price lining b. captive pricing c. bait pricing d. reference pricing e. premium pricing

b. captive pricing

Which of the following charges the same price to all customers regardless of geographic location, and the price is based on average shipping costs for all customers? a. base-point pricing b. uniform geographic pricing c. freight absorption pricing d. zone pricing e. F.O.B. destination pricing

b. uniform geographic pricing

Which of the following should be accomplished after developing pricing objectives? a. selecting a basis for pricing b. evaluating competitors' prices c. assessing the target market's evaluation of price d. selecting a pricing strategy e. determining a specific price

c. assessing the target market's evaluation of price

Which of the following is often used by producers of relatively homogeneous products, especially when the target market considers price to be an important purchase consideration? a. demand-based pricing b. cost-plus pricing c. competition-based pricing d. markup pricing e. cost-based pricing

c. competition-based pricing

The Federal Trade Commission is investigating ACME Corp. for using misleading price tags at its outlet stores to deceive customers into believing they are getting a bargain on Wile E. branded items. Which of the following does the FTC believe ACME is guilty of? a. price discrimination b. nonprice competition c. deceptive pricing d. price fixing e. price competition

c. deceptive pricing

Sales promotion can increase sales by providing _____. a. opportunities to win more products b. greater social media exposure c. extra purchasing incentives d. a reduced price e. sales deterrents

c. extra purchasing incentives

Maria receives a fixed salary plus a commission based on sales volume after she sells $20,000 worth of merchandise for her company. Which of the following best describes her compensation? a. salary plus compensation plan b. salary benefits compensation plan c. straight commission compensation plan d. combination compensation plan e. straight salary compensation plan

d. combination compensation plan

Which of the following is the most important with business-to-business transactions involving the purchase of expensive products? a. advertising b. sales promotion c. public relations d. personal selling e. publicity

d. personal selling

Which of the promotion methods is the most precise? a. advertising b. public relations c. publicity d. personal selling e. sales promotion

d. personal selling

ACME Corp.'s widgets have elastic demand. If ACME raises the price of widgets, what will be the result? a. a decrease in market share b. a decrease in product inventory c. an increase in total revenue d. an increase in market share e. a decrease in total revenue

e. a decrease in total revenue

ACME Corp. and Spacely Inc. are engaged in intense price competition in order to boost market share of their widgets. This is best described as _____. a. nonprice competition b. elasticity of demand c. price discrimination d. bartering e. a price war

e. a price war

Which of the following is calculated by dividing the variable costs by the number of units produced? a. average total cost b. marginal cost c. average fixed cost d. break-even point. e. average variable cost

e. average variable cost

To compete effectively on a price basis, a firm should ____. a. have the highest quality b. be the high-cost seller of the product c. have the highest market share d. have the lowest market share e. be the low-cost seller of the product

e. be the low-cost seller of the product

The Federal Trade Commission has established guidelines for _______: If the higher price against which the comparison is made is the price formerly charged for the product, the seller must have made the previous price available to customers for a reasonable time period. a. reference pricing b. special-event pricing c. price leaders d. bait pricing e. comparison discounting

e. comparison discounting

Which of the following is the most widely used sales promotion technique? a. rebates b. samples c. incentives d. premiums e. coupons

e. coupons

ACME has a pricing objective to increase its primary product's sales relative to total industry sales. This is best describe as a(n) _____. a. product quality objective b. return-on-investment objective c. status quo objective d. cash flow objective e. market share objective

e. market share objective

Salespeople from ACME Corp. are searching for potential customers from company sales records, trade shows, commercial databases, newspaper announcements, public records, telephone directories, trade association directories, and many other sources. This is best described as _____. a. presenting b. approaching c. closing the sale d. following up e. prospecting

e. prospecting

Which of the following trade sales promotion methods is appropriate when personal selling is an important part of the marketing effort? a. free merchandise b. dealer loader c. merchandise allowance d. buy-back allowance e. push money

e. push money

Which of the following involves the salesperson joining with people from the firm's financial, engineering, and other functional areas? a. traditional selling b. relationship selling c. missionary selling d. sales force management e. team selling

e. team selling