Sm Bus Management Chapter 11

Which of the following describe a sales promotion that is likely to be used by businesses? (Check all that apply.)

Discounting using coupons, rebates, and other promotions. Introductory techniques like giveaways, samples, and tastings. Contests like sweepstakes and games that introduce the new product.

______ refers to sales conducted at predictable intervals, such as before major holidays.

Periodic discounting

Match the typical locations for services (in the left column) with their characteristics (in the right column).

At a client's location: Organizing of services into a rotating schedule At a mutually accessible location: Specialized equipment that cannot be readily transported At a remote location: Infrequent face-to-face meetings with a client

______ is a strategy where the price for an item is relatively low and then charging much higher prices for the expendables it uses.

Captive pricing

______ are the people and firms who connect producers of goods and services with customers.

Channels

Which of the following are examples of an external reference price? (Check all that apply.)

Comparison shopping. Advice from friends. Newspaper advertisements

Which of the following statements about odd-even pricing are correct? (Check all that apply.)

Consumers believe that products that are priced using an odd number cost less. Studies have found that customers positively react to odd prices. It is simply setting a price that ends with a 9, 7, or 5.

______ is an existing firm with the correct manufacturing capabilities that makes products for other businesses.

Contract manufacturer

______ exporting is exporting without using intermediaries.

Direct

______ is a method of selling in which catalogs, brochures, and other pieces of marketing materials are mailed directly to customers.

Direct mail

______ marketing is the use of creative and relatively inexpensive ways to reach your customers.

Guerrilla

In the context of traditional layouts for retail operations, which of the following are true of the free-form layout? (Check all that apply.)

It has visual impact. It lays out a store in sections with aisles meandering through the store.

Which of the following statements about optimum price are correct? (Check all that apply.)

It is the highest price that will generate the most income for a good or service. If sales are too high, the owner might ask whether a price is too low. If sales are too low, the owner might ask whether the price is too high.

Which of the following statements about telemarketing are correct? (Check all that apply.)

It is the most expensive form of direct marketing. It can be either inbound where customers call the company or outbound where the company calls the customer. Many consumers find this type of marketing annoying, but it is still a viable form of direct marketing.

Which of the following issues is a firm owner working out of a leased workspace likely to face in the context of day-to-day operations? (Check all that apply.)

Lack of specifications about operating hours Hidden charges that have not been added to a property's lease papers

Multiple Choice Question Blank______ are sales made from ads in newspapers or magazines, with purchases taken online or by phone as well as by mail.

Mail order

______ are sales made from ads in newspapers or magazines, with purchases taken online or by phone as well as by mail.

Mail order

______ marketing is using several different channels to reach your customers.

Multichannel

______ sets a price that ends in the number 5, 7, or 9.

Odd-even pricing

______ is a strategy where the price is set above the competitors' price to indicate that the firm's product is of higher quality.

Premium pricing

______ is a strategy where the price is set above the competitors' price to indicate that the firm's product is a status symbol.

Prestige pricing

______ is the practice of setting price points: good, better, and best.

Price lining

______ is contact via telephone for the purpose of selling a product or service.

Telemarketing

Which of the following statements about price skimming are correct? (Check all that apply.)

This strategy is used to recoup R&D and other costs. It is usually possible to do this only if the business is the only one to produce the product or service. It is usually a brand new product, for example when 4K televisions first were introduced.

Premium pricing is

a strategy where the price is set above the competitors' price to indicate that the firm's product is of higher quality.

The Blank______ is the highest price that will produce a desired level of sales in an intended market.

optimum price

Traffic generators are

other businesses that bring customers to the area.

Which of the following statements about direct mail are correct? (Check all that apply.)

It takes many forms including postcards, catalogs, and videos. One advantage of using the direct mail approach is the ability to sell on a business' schedule. Businesses don't have to make major inventory investments, thus there are low costs for getting started.

Captive pricing is a strategy

where the price for an item is relatively low and then charging much higher prices for the expendables it uses.

A(n) ______ is a nonprofit organization or institution that provides business services by using workers who have disabilities or who are rehabilitated.

sheltered workshop

True or false: Channels are important to a firm's marketing strategy and profits.

True

A consumer's mental image of what a product's price should be based on experience and the consumer's estimate of what the comparative value might be is called a(n) Blank______ reference price.

internal

Which of the following statements regarding multichannel marketing are correct? (Check all that apply.)

A business should include multiple ways for the customer to make contact including a phone number, website address, and email. It refers to using several outlets for contacting your customers. A business should clearly provide contact information on its product's packaging in case the retailer doesn't carry the product.

A ______________ promotion is a form of communication that encourages the customer to act immediately.

Blank 1: sales

______ is a price-setting method where an amount is added to the cost of a product to set the retail price and provide a profit

Markup pricing

______ is a price-setting method where an amount is added to the cost of a product to set the retail price and provide a profit.

Markup pricing

Which of the following objectives do small business look at to achieve to ensure their survival in the early years? (Check all that apply.)

Maximizing profits Increasing market share

Match the ways in which small businesses ensure their survival (in the left column) with their descriptions (in the right column).

Maximizing profits: The price of a firm's product or service should be above the average price as this adds to financial gains. Increasing market share: A firm's product or service should be priced lower than that of the competition to take the competitor's percentage of total sales amount.

Which of the following statements about guerrilla marketing are correct? (Check all that apply.)It

The key to it is to capture the customer's attention. It is a fairly new marketing concept. Its a unusual and nearly free form of advertising.

Which of the following layout formats are used for manufacturing operations? (Check all that apply.)

The process layout The production line layout

______ are other businesses that bring customers to a shopping area.

Traffic generators

Periodic discounting are sales

conducted at predictable intervals, such as before major holidays.

Which of the following statements regarding mail order are correct?

A company has customer service people to process phone, mail, and online purchases. Customers can read the advertisements at their leisure and have time to decide whether to make a purchase. These are sales made from ads in newspapers or magazines.

True or false: An internal reference price is founded on a consumer's expectation of what the price should be based on their own knowledge.

True

Markup pricing is a price-setting method where

an amount is added to the cost of a product to set the retail price and provide a profit.

A wholesaler is an intermediary business that

buys and sells to businesses rather than consumers.

An estimation of what a price should be based on information external to a consumer is called an Blank______ reference price.

external

Multiple Choice Question In the context of concessions associated with subletting properties, Blank______ refer to the permanent modifications made to a location to fit a business's needs.

leasehold improvements

Prestige pricing is a strategy

where the price is set above the competitors' price to indicate that the firm's product is a status symbol.

A(n) Blank______ is an intermediary business that buys and sells to businesses rather than consumers.

wholesaler

______ is setting a price at the highest level the market will bear.

Price skimming

Which of the following statements regarding price lining are correct? (Check all that apply.)

Often there are three levels: a bare bones, midrange, and high-end with the bells and whistles. This pricing strategy attempts to appeal to several different markets and budgets. Each product has a different level of quality or number of features.

Direct exporting is

exporting without using intermediaries.

Match the typical locations for services (in the left column) with their examples (in the right column).

At a client's location: Pest control At a mutually accessible location: Restaurants At a remote location: Fulfillment centers

In the context of concessions associated with subletting properties, Blank______ refer to the permanent modifications made to a location to fit a business's needs.

leasehold improvements