Combo with "marketing test 3" and 27 others
In which of the following does the salesperson join with people from the firm's financial, engineering, and other functional areas to engage in the personal selling process?
Team Selling
In which of the following does the salesperson join with people from the firm's financial, engineering, and other functional areas to engage in the personal selling process?
Team selling
Which of the following is particularly appropriate for pricey high-tech business products, such as jet aircraft and medical equipment?
Team selling
A support salesperson who usually advises customers on product characteristics and application, system design, and installation procedures is a(n)
Technical salesperson
a
The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line. Its basic promotional tool is the discount. These discounts offered to middlemen for performing certain channel activities are referred to as ____________ discounts. a) trade b) cumulative c) noncumulative d) push e) intermediary
c
The amount of profit a channel member expects depends on a) the amount of discounts for large orders provided by the producers. b) the number of channel support activities provided by the producers. c) what the intermediary could earn if it were handling a competing product instead. d) the type of distribution channels involved. e) the amount of effort required to carry the product.
What is meant by the level of quality?
The amount of quality a product possesses. How high should the level of quality be?
c
When marginal cost is equal to marginal revenue, the firm should a) produce more to increase profits. b) produce less to decrease total costs. c) stop producing additional units to maximize profits. d) provide discounts to encourage purchases. e) intensify distribution to increase sales.
Free merchandise
Which of the following is an example of a trade sales promotion method
c
Which of the following is most likely to be a fixed cost? a) Component parts b) Raw materials c) Rent d) Electricity e) Transportation
e
Which of the following is most likely to have an inelastic demand curve? a) Automobile b) Vacation c) Nonelective surgery d) Recreational vehicle e) Computer
relationship selling
The building of mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time
a
The decision of Macy's to use even prices such as $60 for a Ralph Lauren Polo shirt is an application of odd-even pricing, and even prices are often used to a) give a product an upscale or exclusive image. b) show customers products are priced based on tradition. c) coordinate efforts with a promotional campaign. d) indicate prices have been cut to the last penny. e) facilitate comparison to competitors' prices.
Distribution (13)
The decisions and activities that make products available to customers when and where they want to purchase them
a
The degree to which the price of a product enhances a customer's satisfaction with the purchase experience and with the product after the purchase is part of their a) response. b) reference. c) interpretation. d) price satisfaction. e) price-consciousness.
Personal selling is changing in today's marketplace due to several factors. Which of the following is not a factor that impacts today's promotion through personal selling?
The difficulty in keeping customers because they are fickle.
Routing and Scheduling Salespeople
The geographic size and share of a sales territory are the most important factors
c
The manager at Best Buy puts a sign up next to a Pioneer audio system that reads, "Only $199.99! $60 less than Circuit City." This is an example of what type of pricing strategy? a) Random discounting b) Periodic discounting c) Comparison discounting d) Penetration pricing e) Everyday low prices
d
The oldest form of exchange—trading of products—is known as a) credit. b) buying. c) purchasing. d) barter. e) pricing.
What is Quality?
The overall characterustucs of a product that allow it to perform as expectes in satisfying customers needs.
a
The perception of price depends on a a) product's actual price and consumers' expectations regarding price. b) consumer's analysis of competitive prices. c) consumer's reference price. d) consumer's expectation of price. e) product's actual price in comparison with the manufacturer's suggested price.
b
The point at which the costs of producing a product equal the revenue earned from selling the product is a) elasticity of demand. b) the breakeven point. c) variable costs. d) price elasticity. e) the sum of fixed and variable costs.
What is Optional-Product Pricing?
The pricing of optional or accessory products along with a main product. Many companies use optional-product pricing offering to sell optional or accessory products along with their main product. For example: a car buyer may choose to order a GPS navigation system and Bluetooth wireless communication. Refrigerators come with optional ice makers, water dispenser, or just basic. A Stove can be self-cleaning, convection, gas or electric.
a
The pricing strategy that assumes that demand is relatively inelastic over certain price ranges is called a) price lining. b) odd-even pricing. c) price skimming. d) prestige pricing. e) customary pricing.
e
To attract customers into a store, Safeway advertises its milk at less than cost, hoping that customers will purchase other groceries as well. This pricing strategy is called a) price lining. b) special-event pricing. c) differential pricing. d) comparison discounting. e) price leader pricing.
"Mrs. Brucker, you would agree that this is the most attractive car interior in this price range, wouldn't you?" Cliff Davis, a salesperson at Midtown Ford, was using a(n) ___________ when he made this statement.
Trial close
When a salesperson asks the customer to buy the product several times throughout the sales presentation in an effort to uncover hidden objections, it is called
Trial closing
b
When an organization sets a number of prices for selected groups of merchandise, this is commonly referred to as a) prestige pricing. b) price lining. c) customary pricing. d) odd-even pricing. e) ethical pricing.
d
When businesses charge the highest possible price that customers who really want the new product will pay, they are using a) premium pricing. b) prestige lining. c) captive pricing. d) price skimming. e) penetration pricing.
Differential Pricing: Random Discounting
Temporarily reduce prices on an unsystematic basis (to combat consumers predicting when discounts will come) Since it is random and impossible to predict, consumers will not delay their purchase This method is also used to atract new customers
Differential Pricing: Periodic Discounting
Temporary reduction of prices on a patterned or systematic basis ex. annual holiday sales The problem with this for marketers is that the discounts follow a pattern and customers can predict when the reductions will come and delay purchase till then Placing a time limit on periodic discounts doesn't seem to affect customer's perception of value or purchase behavior
In designing sales territories, a sales manager considers several major factors. The territories must be constructed so that sales potential can be measured; the shape of the territories should facilitate salespeople's activities to provide the best possible coverage of customers; and
Territories should be designed to minimize selling costs
c
The "White Sale" that many department stores have every year a few weeks after Christmas is an example of a) secondary pricing. b) off-peak pricing. c) periodic discounting. d) random discounting. e) captive pricing.
The fact that a gas station in Texas pays less for fuel than a gas station in Maine from a producer in Louisiana suggests that refineries are using which of the following pricing methods?
Zone pricing
Premium
____ our items offer free or at minimal cost as a bonus for purchasing a product
c
___________ consumers are concerned about both the price and the quality aspects of a product. a) Price-conscious b) Prestige-sensitive c) Value-conscious d) Price-conscious and prestige-sensitive e) Quality-conscious
One advantage of nonprice competition is that
a firm can build customer loyalty
One advantage of nonprice competition is that
a firm can build customer loyalty.
Dealer loader
a gift given to a retailer that purchases a specified quantity of merchandise. Dealer loaders are often used to coerce special display efforts out of retailers by offering parts of the display to the retailers.
A dealer loader is
a gift to a retailer who purchases a specified quantity of merchandise.
dealer loader
a gift, often part of a display, given to a retailer that purchases a specified quantity of merchandise
A missionary salesperson is usually employed by
a manufacturer
merchandise allowance
a manufacturer's agreement to pay resellers certain amount of money for providing special promotional efforts, such as setting up and maintaining a display
Merchandise allowance
a manufacturer's agreement to pay resellers certain amounts of money for providing special promotional efforts such as advertising or displays, although manufacturers should verify a retailers' performance before paying them. This is best suited to high-volume, high-profit, easily handled products.
An agreement in which the products of one organization are distributed through the marketing channel of another organization is called
a strategic channel alliance
After compiling a list of potential customers, a salesperson must a) evaluate whether each prospect is able, willing, and authorized to buy the product. b) determine whether or not each prospect is really in his target market. c) find and analyze information about each prospect's specific needs and current brand choices. d) develop a presentation for each of the potential customers on his list. e) contact each of the prospects to get an initial feel for how likely they are to purchase his products.
a
Although many U.S. firms want to expand their sales in nations with high populations, they face some challenges in doing so, including the fact that in many of these nations the a) purchasing power of most citizens is very low. b) governments strongly favor socialist economic policies. c) rate of economic growth is much slower than the growth of less populous nations. d) citizens aren't as interested in material goods as U.S. citizens
a
Cheyenne calls to see if her customer's new hardwood floors were installed correctly a) during the follow-up step. b) immediately after the closing. c) near the end of the sales presentation. d) the next time she makes a sales call to that customer. e) after she receives cash payment from that customer.
a
Dorothy won a hot-air balloon ride and dinner for two for being the top revenue-producing mortgage loan officer at her company for the month of October. This contest exemplifies a company's efforts at a) motivating salespeople. b) compensating salespeople. c) providing training for the sales force. d) managing sales territories. e) selecting salespeople.
a
If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should use a) penetration pricing. b) random discounting. c) captive pricing. d) price skimming. e) everyday low prices.
a
In which of the following does the salesperson join with people from the firm's financial, engineering, and other functional areas to engage in the personal selling process? a) Trade selling b) Missionary selling c) Relationship selling d) Team selling e) Technical selling
a
Markup is measured either as a percentage of _____ or a percentage of _____. a) selling price; cost b) cost; profit c) revenue; contribution margin d) resources used; cost e) demand; competition
a
The pricing strategy that assumes that demand is relatively inelastic over certain price ranges is called a) price lining. b) odd-even pricing. c) price skimming. d) prestige pricing. e) customary pricing.
a
Customers who purchase encyclopedias from door-to-door salespeople are acquiring products through
a direct marketing channel
Which of the following purchases would most likely require a consumer to use extended problem solving? a) Audio equipment b) Shaving cream c) Cereal d) Kitchen napkins e) Gasoline
a) Audio equipment
After compiling a list of potential customers, a salesperson must a) evaluate whether each prospect is able, willing, and authorized to buy the product. b) determine whether or not each prospect is really in his target market. c) find and analyze information about each prospect's specific needs and current brand choices. d) develop a presentation for each of the potential customers on his list. e) contact each of the prospects to get an initial feel for how likely they are to purchase his products.
a) evaluate whether each prospect is able, willing, and authorized to buy the product.
Candy bars and chewing gum are most likely to be distributed through _____ and _____. a) selective distribution; multiple channels b) intensive; dual distribution c) strategic channel alliances; intensive d) exclusive; a single channel e) dual distribution; convenience channels
b) intensive; dual distribution
Most marketers operate in a competitive environment of either a) oligopoly or monopoly. b) oligopoly or monopolistic competition. c) oligopoly or pure competition. d) monopoly or pure competition. e) pure competition or monopolistic competition.
b) oligopoly or monopolistic competition.
Creative selling, which requires that salespeople recognize a potential buyer's needs and then provide the prospect with the necessary information, is performed by a) order takers. b) order getters. c) missionary salespeople. d) trade salespeople. e) technical salespeople.
b) order getters.
Although Maybelline would like to use ______ as a consumer sales promotion method, this method has extremely high labor costs that are more affordable for higher-end make-up companies such as Clinique and Estée Lauder. a) frequent-user incentives b) demonstrations c) coupons d) rebates e) consumer contests
b
Amtrak prices its tickets so that it is less expensive to travel on weekends than during the week when there is heavy business travel. This illustrates ___________ pricing. a) cost-plus b) demand-based c) competitive d) secondary markup e) seasonal
b
Bundle pricing may be perceived to be of value by customers because a) they always pay a lower price per item than they would have if they bought each item separately. b) they prefer buying a combination of bundled products in a single transaction, which saves time, effort, and perhaps money. c) the companies selling the products can sell them at a lower price because their costs of packaging are lower. d) they are purchasing complementary products, which is convenient for them. e) they can purchase items that are consumed frequently in larger quantities.
b
Carlos generally makes cold calls on businesses to look for new prospects. He has many satisfied customers, but like many salespeople, he does not frequently utilize one of the best ways to find new prospects, which is through a) telephone directories. b) customer referrals. c) trade shows. d) local restaurants. e) other employees.
b
Gambrell Designs thinks its new product, the Automatic Dog Walker, will have a short product life cycle; therefore, its marketing department sets its primary pricing objective as a) market share. b) cash flow. c) profit. d) product quality. e) status quo.
b
If a manager tries to form territories with equal sales potential, the territories will usually be unequal in geographic size; this will cause the salespeople with larger territories to a) develop larger income potentials. b) have to work longer and harder to generate a certain sales volume. c) work about the same amount, since potential is the same. d) have much larger sales than those salespeople with smaller territories. e) be limited to a smaller income potential.
b
If a product is priced based on how many or how few people want it at a particular time and place, ______ pricing is being used. a) markup b) demand-based c) competitive d) peak e) differential
b
Lexmark sells some of its color printers for about $100, but the refill cartridges cost over $30 each. Lexmark's pricing strategy would be best labeled as a) bait pricing. b) captive pricing. c) customary pricing. d) price lining. e) complementary pricing.
b
Marketers improve their ability to establish prices appropriately when a) there is nonprice competition. b) they know prices charged for competing brands. c) their products are of better quality than the competition's. d) the main objective is image building. e) using psychological pricing.
b
Marketers must take steps to make sure that the pricing objectives they set are consistent with the organization's ___________ objectives and ___________ objectives. a) advertising; marketing b) overall; marketing c) marketing; promotional d) overall; promotional e) overall; revenue
b
Michelle works for a company that sells rotisseries for chicken and other foods. She answers phone calls from customers who see infomercials on TV and call to order the product. Michelle is considered a(n) a) order getter. b) inside order taker. c) support person. d) field order taker. e) trade salesperson.
b
Salespeople receive a set salary plus a commission based on sales with a a) straight salary compensation plan. b) combination compensation plan. c) cafeteria plan. d) straight commission compensation plan. e) salary plus bonus program.
b
The _____ stage of the personal selling process is when the salesperson asks the prospect to buy the product. a) proposal b) closing c) overcoming objections d) approach e) trial
b
The pricing of Clinique makeup considerably higher than brands such as Cover Girl, Revlon, and Maybelline is used to communicate ______, which is the company's primary pricing objective. a) market share b) product quality c) status quo d) profitability e) cash flow
b
Tim has just finished compiling a list of potential customers and evaluating their ability, willingness, and authority to buy. He knows his next step in the personal selling process is to a) approach. b) preapproach. c) make the presentation. d) prospect. e) overcome objections.
b
When Mia and Shane are planning their honeymoon, their travel agent tells them that if they buy a special package, their trip to Paris will include meals, tickets to the theater, and a rental car in addition to airfare and a hotel. This is an example of the use of a) multiple-unit pricing. b) bundle pricing. c) prestige pricing. d) price lining. e) price packaging.
b
When an organization sets a number of prices for selected groups of merchandise, this is commonly referred to as a) prestige pricing. b) price lining. c) customary pricing. d) odd-even pricing. e) ethical pricing.
b
When determining markup as a percentage of cost, divide the markup amount by a) price. b) cost. c) quantity. d) revenue. e) 100.
b
When establishing prices, a marketer's first step is to a) determine demand. b) develop pricing objectives. c) select a pricing policy. d) evaluate competitors' prices. e) determine a pricing method.
b
Which of the following would be used in setting the price of a new product if considerable competition is expected? a) Psychological pricing b) Penetration pricing c) Odd-even pricing d) Price skimming e) Prestige pricing
b
While anticipating objections and countering them before they are asked is a good idea, one negative consequence of doing so is that the salesperson may a) annoy the customer. b) mention objections the customer had not thought of. c) take too long in trying to sell the product, and the customer may stop listening. d) not emphasize its features and benefits enough. e) begin to lie about the product.
b
___________ are items offered free or at minimal cost as a bonus for purchasing a product. a) Rebates b) Premiums c) Samples d) Merchandise allowances e) Coupons
b
Advertising that encourages customers to send in reply cards for additional information aids salespeople in achieving which goal of personal selling? a) Convincing prospects to buy b) Finding prospects c) Keeping customers satisfied d) Making the presentation e) Following up the sale
b) Finding prospects
Kellogg's is introducing a new bran waffle for toasters. Television commercials will be a key element in communicating the benefits associated with this product. Based on that decision, Kellogg's is expecting consumers to engage in what form of problem solving? a) Routinized response behavior b) Limited problem solving c) Extended problem solving d) Impulse buying e) Extensive response behavior
b) Limited problem solving
Which of the following countries was the world's first service economy? a) England b) United States c) Sweden d) Canada e) Germany
b) United States
The D-Lite Corporation produces a unique type of light bulb that is used in refrigerator manufacturing. D-Lite is the only maker of this light bulb, and there are no close substitutes for it. In this case, the D-Lite Corporation would be a) an oligopoly. b) a monopoly. c) involved in monopolistic competition. d) involved in perfect competition. e) involved in a perfect oligopoly.
b) a monopoly.
The ability of a marketer to identify customers before they make a purchase is called a) connectivity. b) addressability. c) interactivity. d) accessibility. e) control.
b) addressability.
According to the Boston Consulting Group, marketers may classify their products as all of the following except a) dogs. b) cash contributors. c) question marks. d) stars. e) cash cows.
b) cash contributors.
The Boston Consulting Group classifies products that have a dominant market share but low prospects for growth and that generate more cash than is required to maintain market share as a) dogs. b) cash cows. c) stars. d) cash contributors. e) question marks.
b) cash cows.
The _____ stage of the personal selling process is when the salesperson asks the prospect to buy the product. a) proposal b) closing c) overcoming objections d) approach e) trial
b) closing
In establishing sales promotion objectives, a marketer should always
align objectives with the organization's overall objectives.
A concession in price in business markets to achieve a desired goal is called a(n)
allowance
Salespeople receive a set salary plus a commission based on sales with a a) straight salary compensation plan. b) combination compensation plan. c) cafeteria plan. d) straight commission compensation plan. e) salary plus bonus program.
b) combination compensation plan.
All of the following are key areas of sales force management except a) compensating salespeople. b) coordinating sales promotion efforts. c) recruiting salespeople. d) training sales personnel. e) motivating sales personnel.
b) coordinating sales promotion efforts.
Relationship Selling
also known as consultative selling, involves building mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time. It is especially used in business-to-business marketing and can be enhanced through technology that improves interactive communications.
A television advertisement for Miracle-Gro lawn fertilizer indicates that the product is available at Kmart and Wal-Mart. This form of sales promotion is called a(n) a) cooperative advertising. b) dealer listing. c) push money. d) dealer loader. e) advertising allowance.
b) dealer listing.
Free Samples
are given out to stimulate trial of a product, increase sales volume in the early stages of the product's life cycle, or obtain desirable distribution.
Creating Sales Territories
are often selected because they have similar sales potential or require about the same amount of work. should also help the sales force provide the best possible customer coverage and should minimize selling costs.
If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85, then
average total cost is at its lowest level.
Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Caterpillar is producing at the ___________ point.
breakeven
Barnes and Noble sells online through its website, while also selling through physical store locations. This type of retailing is referred to as:
bricks-and-clicks.
If Green Giant wants to provide its resellers with a secondary incentive to stimulate repurchases after an initial consumer coupon campaign for its latest product, it can offer resellers a sum of money for each unit purchased. This type of sales promotion is a
buy-back allowance
If Green Giant wants to provide its resellers with a secondary incentive to stimulate repurchases after an initial consumer coupon campaign for its latest product, it can offer resellers a sum of money for each unit purchased. This type of sales promotion is abuy-back allowance.
buy-back allowance
An attempt to create a trend or acceptance of a product through word-of-mouth communication is called:
buzz marketing.
Some grocery stores collect data on competitive prices
by using full-time comparison shoppers
Justin Franklin's company is interested in locating areas where the average income is high, the average age range is 25-35 years, and the lifestyles of the people involve extreme adventures and dangerous leisure activities. His company would most likely find possible markets through a) U.S. Census Bureau information. b) geographic segmentation variables. c) geodemographic segmentation. d) climate information. e) psychographic segmentation.
c) geodemographic segmentation.
A major disadvantage of personal selling is that it a) is not remembered as well by consumers as advertising messages are. b) cannot easily adjust the message to satisfy a customer's information needs. c) is very expensive per contact. d) does not provide immediate feedback. e) is not compatible with other promotional activities.
c) is very expensive per contact.
A major determining factor in deciding which type of problem-solving process should be used depends on the individual's intensity of interest in a product and the importance of the product for that person. This is known as an individual's a) motivational structure. b) routinized response behavior. c) level of involvement. d) cognitive dissonance. e) evaluative criteria.
c) level of involvement.
Recruiting and selection of salespeople should include enough steps to yield the information needed to make accurate selection decisions. However, the stages of the process should be sequenced so that the more expensive steps are a) near the beginning. b) always completed before anything else. c) near the end. d) paid by the prospects rather than the company. e) never reached.
c) near the end.
A person who primarily seeks repeat sales is called a(n) a) current customer order getter. b) order recorder. c) order taker. d) follow-up salesperson. e) missionary salesperson.
c) order taker.
The target audience for an advertising campaign is the a) information base on which to develop the campaign. b) geographic distribution of persons. c) people toward whom the advertisements are directed. d) overall goal of the advertising campaign. e) sales objective to be achieved by the campaign.
c) people toward whom the advertisements are directed.
At one time, Wheaties offered two free golf balls with the purchase of a twin pack of Wheaties cereal featuring Tiger Woods. This is an example of a a) consumer prize. b) rebate. c) premium. d) free sample. e) free merchandise.
c) premium.
An analysis of ___________ examines internal factors that give the organization certain advantages and disadvantages in meeting the needs of its target markets. a) opportunities and threats b) market opportunities c) strengths and weaknesses d) activities and responsibilities e) organizational resources
c) strengths and weaknesses
The type of salesperson that usually requires training in physical science or engineering is the a) trade salesperson. b) missionary salesperson. c) technical salesperson. d) order taker. e) order getter.
c) technical salesperson.
Companies that focus on particular product categories and rely on everyday low pricing to acquire a large market share through aggressive and competitive pricing strategies are often referred to as
category killers
Ryan Amerson leads his company's clients through the installation procedure of their new industrial equipment. He also helps answer their questions about product characteristics and system design both before and after their purchases. Ryan is a a) trade salesperson. b) missionary salesperson. c) technical salesperson. d) systems engineer. e) field order taker.
c
Sherry Sullivan, Kevin Miller's sales manager, points out to him that his last shopper in the housewares department didn't seem involved as he explained the new food processor to her. She suggests that he use a ___________ as part of his presentation next time. a) video b) referral c) demonstration d) trial close e) qualification
c
Creating a favorable impression and developing rapport with prospective customers is a critical part of the ______ step of personal selling. a) following up b) making the presentation c) approach d) prospecting e) preapproach
c) approach
Customer density and distribution are important factors in a) prospecting. b) motivating salespeople. c) creating sales territories. d) compensating salespeople. e) establishing sales force objectives.
c) creating sales territories.
Sherry Sullivan, Kevin Miller's sales manager, points out to him that his last shopper in the housewares department didn't seem involved as he explained the new food processor to her. She suggests that he use a ___________ as part of his presentation next time. a) video b) referral c) demonstration d) trial close e) qualification
c) demonstration
Which of the following refers to the strategic process of distributing, promoting, pricing products, and discovering the desires of customers using digital marketing. a) digital orientation b) digital media c) electronic marketing d) digital electronics e) electronic processing
c) electronic marketing
When more information is needed about a problem and a tentative hypothesis needs to be made more specific, marketers usually conduct _________ research. a) descriptive b) experimental c) exploratory d) analytical statistical e) conclusive
c) exploratory
Jamba Juice offers its customers a stamp card that allows them to receive a free smoothie after they have filled an entire card. This is an example of a a) free sample. b) rebate. c) frequent-user incentive. d) premium. e) consumer contest.
c) frequent-user incentive.
Salespeople receive a set salary plus a commission based on sales with a
combination compensation plan.
During July and August, Lakewood Links Golf Course, located in South Carolina, offers weekday rates of $13 for a round of golf with a cart. During the rest of the year, the weekday rates are between $25 and $35. This is an example of the use of a) differential pricing. b) incentives. c) competition-based pricing. d) demand-based pricing. e) random discounting.
d
During his presentation to Mrs. French about a high-end gourmet oven, Brian asks, "Would you prefer black or stainless steel?" This is an example of a a) referral. b) recommendation. c) follow up. d) trial close. e) closing argument.
d
If PepsiCo sets its twelve-pack price at $3.99 to match the price charged by Coca-Cola, Pepsi is using which of the following pricing methods? a) Demand-based b) Cost-based c) Reference pricing d) Competition-based e) Price leader
d
If Wrigley set its pricing objective as attaining 38 percent of the chewing gum market, what else would be needed to make this a true pricing objective? a) Statement of demand elasticities b) Identification of cost structure c) Breakeven analysis d) Identification of a time period for accomplishment e) Establishment of a subsequent pricing policy
d
When better market conditions prevail or when company growth occurs, a company may suffer if it
cut back the size of its sales force
When better market conditions prevail or when company growth occurs, a company may suffer if it
cut back the size of its sales force.
Retail salespeople are classified as a) order getters. b) support personnel. c) trade salespeople. d) inside order takers. e) field order takers.
d
Stacey's client group has been gradually shrinking and she is looking for new prospective clients. She has decided to spend a couple of days approaching potential customers without any prior consent. Stacey's method of approach is known as a) referral approach. b) ambulance chasing. c) door-to-door selling. d) cold canvass. e) repeat contact.
d
A graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a
demand curve.
Primary demand is defined as:
demand for a product category.
The three primary bases for developing prices are
demand, competition, and cost
Although Maybelline would like to use ______ as a consumer sales promotion method, this method has extremely high labor costs that are more affordable for higher-end make-up companies such as Clinique and Estée Lauder.
demonstrations
Which of the following products would probably require extended problem solving before a purchase? a) Products purchased frequently b) Products to be purchased in the future c) Products that are purchased routinely d) Expensive products e) Products purchased as a result of social influences
d) Expensive products
Sales objectives for individual salespeople can be stated in several ways. Which of the following would least likely be used for stating an individual salesperson's goal? a) Dollar volume sales b) Unit volume sales c) Average order size d) Ratio of profits relative to number of sales calls e) Average number of calls per time period
d) Ratio of profits relative to number of sales calls
The Common Market of the Southern Cone (MERCOSUR) includes countries from a) Africa. b) Asia. c) Central America. d) South America. e) the Pacific Islands.
d) South America.
Jose Suarez has been hired as sales manager at a new firm and is trying to come up with a sales force compensation method. He would like to have selling expenses relate directly to sales resources, an aggressive sales force, and minimization of nonselling tasks. What compensation method(s) would best fulfill his requirements? a) Combination b) Straight salary c) Straight salary plus generous fringe benefits d) Straight commission e) Salary plus a bonus
d) Straight commission
Zack Freedman is an experienced salesperson who has worked for the same company for 20 years. When he is informed that he must attend a training seminar the following Tuesday, he believes it will most likely be about a) the company. b) his customers' companies. c) basic selling methods. d) new-product information. e) prospecting.
d) new-product information.
A television advertisement for Miracle-Gro lawn fertilizer indicates that the product is available at Kmart and Wal-Mart. This form of sales promotion is called a(n)
dealer listing.
A __________ is a gift to a retailer who purchases a specified quantity of merchandise.
dealer loader
Both the Federal Trade Commission Act and the Wheeler-Lea Act prohibit
deceptive pricing.
Prospecting
developing a database of potential customers
Executives in Japan decided to price Lexus luxury cars in the US at $55,000 while pricing them at $66,000 in their own country. This is an example of
differential
What is a functional discount (also called a trade discount)?
discount is offered by the seller to trade channel members who perform certain functions, such a selling, storing, and record keeping.
The purpose of the ___________ stage in personal selling is to determine customers' problems and questions about using the product.
follow-up
The final stage of the selling process is
follow-up.
The final stage of the selling process is:
follow-up.
Reductions for transportation and other costs related to the physical distance between buyer and seller are known as
geographic pricing.
A penetration pricing strategy is particularly appropriate when demand is
highly elastic
Consumer Contests,
individuals compete for prizes based on their analytical or creative skills.
Consumer Games
individuals compete for prizes based primarily on chance.
The first stage in the development of any advertising campaign is:
identifying the target audience.
Promotion helps consumers because it:
informs consumers and places them in a position to specify the products that they seek.
promotes organizational images, ideas, political issues
institutional advertising
used to create or maintain an organizational image
institutional advertising
In recent years the proportion of promotional dollars spent on sales promotion has
increased relative to advertising.
In recent years, the proportion of promotional dollars spent on sales promotion has:
increased relative to advertising.
Order Getters
increases sales by selling 2 new customers & increasing sales 2 present customers, which is sometimes called "creative selling."
What is a quantity discount?
is a price reduction to buyers who buy large volumes. Such discounts provide an incentive to the customer to buy more from one given seller, rather than from many different sources.
In establishing sales promotion objectives, a marketer should always a) concentrate on activities that will increase consumer demand. b) focus on consumers. c) focus on resellers. d) be defensive in the methods used. e) align objectives with the organization's overall objectives.
e
Janetta Light tells her sales manager that she will be devoting more effort to ___________ in the coming weeks, as her list of potential customers has dwindled below the level of 30 firms recommended by the selling plan. a) approaching customers b) preapproaching c) closing the sale d) following up e) prospecting
e
Maintaining a certain market share, meeting competitors' prices, maintaining a favorable image, and achieving price stability are all associated with a _____ pricing objective. a) product quality b) market share c) survival d) profit e) status quo
e
Mrs. Brucker, you would agree that this is the most attractive car interior in this price range, wouldn't you?" Cliff Davis, a salesperson at Midtown Ford, was using a(n) ___________ when he made this statement. a) referral b) objective c) bandwagon approach d) follow-up e) trial close
e
On a break between classes, Kelley Macon selects two magazines and mails the Publishers Clearing House entry form. She doubts that she will win $10 million, but she never passes up a chance to participate in a a) premium. b) consumer contest. c) sampling. d) sales contest. e) sweepstakes.
e
Signs, counter pieces, racks, and self-service cartons are all forms of a) in-store attention grabbers. b) demonstrations. c) retail media. d) premiums. e) point-of-purchase displays.
e
When a company attempts to influence a consumer's perception of price to make a product's price more attractive and reduce "sticker shock," it is using a ______ pricing strategy. a) competition-based b) professional c) promotional d) comparison e) psychological
e
Which of the sales force compensation methods is easy to administer, yields more predictable selling expenses, and provides sales managers with a large degree of control over salespeople? a) Straight commission b) Salary plus bonus c) Salary and commission d) Straight commission and combination e) Straight salary
e
Yolanda's job is to find new customers for her company's telecommunication services. She encourages existing customers to add more services and finds customers who are completely new to the company. Yolanda would best be classified as a(n) a) order taker. b) order generator. c) missionary salesperson. d) technical salesperson. e) order getter.
e
Public relations:
is an element of promotion that should be handled on a continuous basis.
Jennifer Clarkson, a sales representative for a publisher of college textbooks, had the southern half of the state as a sales territory. Last year, the director of marketing for the publishing company told Jennifer's sales manager to increase her territory to the entire state. Now Jennifer's customers are less satisfied with the company. They are most likely to blame ___________ for their reduced level of customer satisfaction. a) the textbook authors b) the company's chief executive officer c) the marketing manager d) the sales manager e) Jennifer
e) Jennifer
Which of the following actions is illegal? a) Political officials influencing how much a government agency purchases and from whom. b) Corporate contributions to candidates. c) Corporate contributions to elected officials. d) Political officials helping businesses secure foreign markets. e) Paying political officials not to enforce a particular law.
e) Paying political officials not to enforce a particular law.
___________ are offers of cash to customers who purchase a specific product, and ___________ are offers of cash to customers who purchase a specific quantity of a specific product. a) Rebates; reimbursements b) Cents-off; refunds c) Rebates; premiums d) Buy-back allowances; money refunds e) Rebates; money refunds
e) Rebates; money refunds
Which of the following is least likely to be directly involved in actually making sales? a) Order taker b) Current-customer salesperson c) Order getter d) Field order taker e) Support sales personnel
e) Support sales personnel
In establishing sales promotion objectives, a marketer should always a) concentrate on activities that will increase consumer demand. b) focus on consumers. c) focus on resellers. d) be defensive in the methods used. e) align objectives with the organization's overall objectives.
e) align objectives with the organization's overall objectives.
An arrangement in which a manufacturer pays a certain amount of a retailer's media costs for advertising that manufacturer's products is a) a buy-back allowance. b) a merchandise allowance. c) premium money. d) push money. e) cooperative advertising.
e) cooperative advertising.
If Pacific Power and Light increased its rates 10 percent and experienced only a 2 percent reduction in the demand for power, the demand would be a) elastic. b) prestige. c) common. d) horizontal. e) inelastic.
e) inelastic.
Favorable conditions in the marketplace environment that could produce business rewards for the organization if acted upon properly are called a) strengths. b) market strategies. c) market niches. d) threats. e) opportunities.
e) opportunities
Yolanda's job is to find new customers for her company's telecommunication services. She encourages existing customers to add more services and finds customers who are completely new to the company. Yolanda would best be classified as a(n) a) order taker. b) order generator. c) missionary salesperson. d) technical salesperson. e) order getter.
e) order getter.
Signs, counter pieces, racks, and self-service cartons are all forms of a) in-store attention grabbers. b) demonstrations. c) retail media. d) premiums. e) point-of-purchase displays.
e) point-of-purchase displays.
Dividing the percentage change in quantity demanded by the percentage change in price gives the a) prestige demand curve. b) breakeven point. c) marginal cost curve. d) price sensitivity curve. e) price elasticity of demand.
e) price elasticity of demand.
The salesperson must attract and hold the prospect's attention, stimulate interest, and spark a desire for the product during the a) prospecting. b) preapproach. c) follow up. d) approach. e) sales presentation.
e) sales presentation.
After compiling a list of potential customers, a salesperson must
evaluate whether each prospect is able, willing, and authorized to buy the product.
Support Personnel
facilitate selling but usually are not involved solely with making sales.
What is product mix pricing strategies?
The strategy for setting a product's price often has to be changed when the product is part of a product mix. In this case, the firm looks for a set of prices that maximizes the profits on the total product mix.
What are Specialty Retailers?
Emphasize narrow and deep assortments. Despite their name, specialty retailers do not sell specialty items. Instead they offer substantial assortments in a few product lines.
A major disadvantage of personal selling is that it
is very expensive per contact.
A major disadvantage of personal selling is that it
it is very expensive per contact
Personal selling goals include finding prospects, convincing prospects to buy, and:
keeping customers satisfied
Recruiting and selection of salespeople should include enough steps to yield the information needed to make accurate selection decisions. However, the stages of the process should be sequenced so that the more expensive steps are
near the end.
Marketers at organization engaged in nonprice competition
need competitive price information to make sure that their products are priced at approximately the same levels as the prices of competing brands
Maria recently put her house on the market at an asking price of $260,000. She realizes, however, that in order to sell the house, she may have to use
negotiated pricing
Price skimming and penetration pricing are both strategies used for
new-product pricing
The public relations department at Lowe's Home Improvement submits one page of typewritten copy to national newspapers and news web sites to announce its one-day, nationwide clean-up-local-parks event. This is an example of a:
news release.
Anything that reduces the accuracy and clarity of communication is called:
noise
Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing
nonprice competition.
A firm might temporarily sell products below their cost in order to
match competition or generate cash flow.
All of the following are pricing strategies used by companies establishing prices of multiple products within a product line except: -premium pricing -price lining -captive pricing -bait pricing -penetration pricing
penetration pricing
If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should use
penetration pricing
While sales contests can motivate employees at all levels to participate, a disadvantage of this method of sales promotion is that
people often discontinue their positive behavior after the contest is over
While sales contests can motivate employees at all levels to participate, a disadvantage of this method of sales promotion is that
people often discontinue their positive behavior after the contest is over.
The target audience for an advertising campaign is the:
people toward whom the advertisements are directed.
Marketers have no flexibility in setting prices under conditions of
perfect competition.
stimulates demand for a product category by informing buyers about the product
pioneer advertising
Garrett Almar tells a fellow buyer at Robins Wholesale Parts that the last salesperson who called on him before lunch was a real loser: "He has done a poor job of ____. He didn't even know what brands we carry or what types of retailers we service!"
preapproach
Garrett Almar tells a fellow buyer at Robins Wholesale Parts that the last salesperson who called on him before lunch was a real loser: "He has done a poor job of ___________. He didn't even know what brands we carry or what types of retailers we service!"
preapproach
Tim has just finished compiling a list of potential customers and evaluating their ability, willingness, and authority to buy. He knows his next step in the personal selling process is to
preapproach
Before contacting prospects, a salesperson for an industrial cleaning equipment company analyzes information about the prospects' product needs, feelings about brands, and personal characteristics. This process is called
preapproach.
Tim has just finished compiling a list of potential customers and evaluating their ability, willingness, and authority to buy. He knows his next step in the personal selling process is to
preapproach.
Tim has just finished compiling a list of potential customers and evaluating their ability, willingness, and authority to buy. He knows his next step in the personal selling process is to:
preapproach.
At one time, Wheaties offered two free golf balls with the purchase of a twin pack of Wheaties cereal featuring Tiger Woods. This is an example of a
premium
The types of prices that appear least often in ads are ___________ prices.
premium
A product that has more features than those of its competition, or that is perceived to be higher quality, warrants using which type of pricing strategy?
premium pricing
At one time, Wheaties offered two free golf balls with the purchase of a twin pack of Wheaties cereal featuring tiger woods. This is an example of a:
premium.
To increase sales of Chex cereals, Ralston Purina offered a free pound of bananas to customers who bought the large-size box. This form of sales promotion is called a
premium.
French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night. This is an indication that suites at this hotel are apparently an example of a(n) ___________ product.
prestige
If REVO sets the price for its sunglasses at $240, it is using psychological pricing to convey
prestige
A customer who is ___________ is likely to say, "People notice when you buy the most expensive brand of a product."
prestige-sensitive
Buyers who focus on purchasing products that signify prominence and status are
prestige-sensitive buyers.
Advertisements for Suave shampoos emphasize that other shampoos may cost more but don't work any better than Suave. In this example, Suave is competing on the basis of
price
The tuition and fees each student paid for this semester of college are both terms for
price
For most consumers, there is an assumed relationship between
price and quality.
When marketers emphasize price as an issue and match or beat the prices of other companies, they are using
price competition.
If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage, it is committing
price discrimination.
A measure of sensitivity of demand in relation to changes in price is
price elasticity of demand.
Dividing the percentage change in quantity demanded by the percentage change in price gives the
price elasticity of demand.
Which of the following pricing strategies often results in a retailer losing money on the product?
price leader
To attract customers into a store, Safeway advertises its milk at less than cost, hoping that customers will purchase other groceries as well. This pricing strategy is called
price leader pricing
When an organization sets a number of prices for selected groups of merchandise, this is commonly referred to as
price limiting
The pricing strategy that assumes that demand is relatively inelastic over certain price ranges is called
price lining
To determine the breakeven point in units, divide the fixed costs by
price minus variable costs.
All of the following are psychological techniques except -customary pricing -prestige pricing -reference pricing -odd-even pricing -price skimming
price skimming
If Norelco introduced a new electric razor that sonically removes hair and priced is first at $175 and then at $150 before reducing the price to $100, the firm's initial pricing strategy is known as
price skimming
When Sharp first introduced its line of graphing calculators, it set the price quite high; it has lowered the price as competitors have entered the market. The pricing strategy initially used by Sharp is called
price skimming
When business charge the highest possible price that customers who really want the new product will pay, they are using
price skimming
When businesses charge the highest possible price that customers who really want the new product will pay, they are using
price skimming.
A danger associated with engaging in price competition is that competitors can also change prices quickly and aggressively, which can result in a(n) _____ that will be harmful to both companies.
price war
Advertisements for Suave shampoos emphasize that other shampoos may cost more but don't work any better than Suave. In this example, Suave is competing on the basis of
price.
Reference pricing is
pricing a product at a moderate level and positioning it next to a more expensive model or brand
What is marketing skimming pricing?
pricing is setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales
Product Line Pricing: Captive Pricing
pricing the basic product in a product line low, while pricing related items higher Items required to operate or that enhance the primary item are priced higher e. Printer and print toner
Order Takers
primarily seeks repeat sales.
promotes the uses, features, and benefits of products
product advertising
Sales objectives can do all of the following except
serve as a deterrent both to salespeople and their clients.
Scott Bartello, a salesperson for Xerox, develops a list of potential customers and evaluates them on the basis of their ability, willingness, and authority to purchase copy machines. This process is called
prospecting.
IHOP is active on Facebook, Twitter, and YouTube in order to communicate with its customers, conduct a video contest, and generally find out the customers' likes and dislikes. IHOP in this example, is engaging in ___ marketing.
relationship
An ad for a multivitamin that claims, "We still bring you everything you need to get through your day in one vitamin," would most likely be considered ____ advertising.
reminder
advertising used to remind consumers about an established brand is still around
reminder advertising
The degree to which the price of a product enhances a customer's satisfaction with the purchase experience and with the product after the purchase is part of their
response.
Direct selling, direct marketing, and vending machines are all examples of:
retailing.
Subway is conducting a contest in which customers are asked to name a new sandwich. The winner gets a free sandwich each day for one year and an appearance in one of the company's TV commercials. This contest illustrates Subway's use of the ___ elements of the promotion mix.
sales promotion
demonstrations
sales promotion methods a manufacturer uses temporarily to encourage trial use and purchase of a product or to show how a product works
consumer contests
sales promotion methods in which individuals compete for prizes based on their analytical or creative skills
field order takers
salespeople who travel to customers. Customers and ___ develop independent relationships.
Straight commission compensation plan
salespeople's compensation is determined solely by sales for a given period. A commission may be based on a single percentage of sales or on a sliding scale which involves several sales levels and percentage rates.
The greatest amount of responsibility for providing customer satisfaction falls on the shoulders of
salespeople.
Making the Presentation
salesperson must attract & hold the prospect's attention, stimulate interest, & spark a desire 4 the product.
free samples
samples of a product given out to encourage trial and purchase
Premium-priced products are usually marketed through
selective or exclusive distribution.
group of people at whom the ads are aimed
target audience
Natalie is a sales representative with Nike. In a few days, she will join with people from the firm's financial, engineering, and other functional areas to engage in the personal selling process. Natalie is engaged in:
team selling.
The step of the personal selling process in which a salesperson contacts a potential customer is called
the approach
The step of the personal selling process in which a salesperson contacts a potential customer is called
the approach.
The point at which the costs of producing a product equal the revenue earned from selling the product is
the breakeven point.
Two trends that have caused consumer-generated information to gain importance is:
the increase of consumers sharing their opinions through digital media and the consumer's mistrust of information from corporations.
A price-skimming strategy assumes that
the initial demand is highly inelastic
Price is
the value that is exchanged for products in a marketing transaction
Price is
the value that is exchanged for products in a marketing transaction.
Consumers are changing ____ and consumption behaviors as a result of emerging technologies.
their information searches
During the personal selling process, a salesperson, if possible, should handle objections when
they arise.
Generally, customers are most likely to rely on the price-quality association when
they cannot judge the quality of the product for themselves.
Having products available when the customer wants them is called
time utility
When consumers are making do with less expensive products and shopping more selectively, manufacturers and retailers must focus on the ___ of their products
value
Price is
value that is exchanged for products in a marketing transaction
Costs that vary directly with changes in the number of units produced or sold are called
variable costs.
Yolanda's job is to find new customers for her company's telecommunication services. She encourages existing customers to add more services and finds customers who are completely new to the company. Yolanda would best be classified as a(n) a) order taker. b) order generator. c) missionary salesperson. d) technical salesperson. e) order getter.
w
In the long run, the J. F. Smucker Company must view ___________ as the absolute lowest price for its Jif brand peanut butter.
total costs
If a product has an inelastic demand and the manufacturer raises its price,
total revenue will increase.
The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line. Its basic promotional tool is the discount. These discounts offered to middlemen for performing certain channel activities are referred to as ____________ discounts.
trade
Jana works for Hormel Foods and she frequently sets up special displays and distributes samples of Hormel products to customers in supermarkets. Jana would best be classified as a(n)
trade salesperson
Suppose that the frozen foods division of Swanson purchases food trays and boxes from the packaging division. The form of pricing used to charge the frozen foods division is called
transfer pricing.
Field Order Takers
travel 2 customers & often develop interdependent relationships with them; they may also be referred to as outside order takers.
"Mrs. Brucker, you would agree that this is the most attractive car interior in this price range, wouldn't you?" Cliff Davis, a salesperson at Midtown Ford, was using a(n) ___________ when he made this statement.
trial close
During his presentation to Mrs. French about a high-end gourmet oven, Brian asks, "Would you prefer black or stainless steel?" This is an example of a
trial close.
When a salesperson asks the customer to buy the product several times throughout the sales presentation in an effort to uncover hidden objections, it is called
trial closing.
inside order takers
work in sales offices, receive orders my mail, telephone, and internet. Sale within the firm, face to face with customers. ex. retail salespeople
coupons
written price reductions used to encourage consumers to buy a specific product
What equation shows organizations the relationship between price and profit?
(Price x Quantity sold)-Total costs=Profits
What equation shows organizations the relationship between price and profit?
(Price × Quantity Sold) Total Costs = Profits
What is a seasonal discount -
A seasonal price is a price reduction to buyers who buy merchandise or services out of seasons. For example, lawn and garden equipment manufacturers offer seasonal discounts to retailers during the fall and winter months to encourage early ordering in anticipation of a heavy spring and summer selling seasons. Seasonal discounts allow the seller to keep production steady during the entire year.
Communications (15)
A sharing of meaning through the transmission of information
Markum Industries determines that for its air compressors the following results are achieved at a price of $250: total costs = $250,000; variable costs per unit = $100; fixed costs = $175,000. Given these figures, Markum would break even at ___________ units.
1,167
Markum would break even at ___________ units.
1,167
What are the Three types of Non-store Retailing:
1. Direct Selling 2. Direct Marketing 3. Automatic Vending
What are the five product mix pricing strategies?
1. Product line pricing 2. Optional- product pricing 3. Captive-product pricing 4. Product bundle pricing 5. Bait Pricing
General Steps in the Personal Selling Process (7)
1. Prospecting 2. Preapproach 3. Approach 4. Making the presentation 5. Overcoming objectives 6. Closing the sale 7. Following up
Many large corporations track three different types of emissions. All of the following emissions are tracked EXCEPT a) emissions from employee homes. b) emissions from vending machines. c) emissions from employee commutes. d) emissions from fertilizer.
A
Marketers see product placement as a way to prevent consumers from skipping their ads while watching TV. Media experts estimate that product placement in TV shows will be close to ____ by 2014. a) doubling b) tripling c) quadrupling d) fading away
A
During the 1990s, Levi Strauss discovered that two of its suppliers were not living up to their code of conduct. Instead of firing the workers, Levi Strauss developed a creative win-win situation. The type of worker issues the leaders of Levi Strauss were concerned with included a) child labor. b) the migration of workers from agrarian jobs to urban jobs. c) the formation of labor unions. d) religious preferences.
A
Fiat's primary reason for acquiring the U.S auto giant Chrysler was to a) gain a foothold in and more fully exploit the U.S market. b) decrease Chrysler's presence in the U.S. c) increase Chrysler's presence in Italy. d) help the U.S. during the Great Recession.
A
Foreign _____ is contracting with foreign suppliers to produce products usually at a fraction of the cost of domestic production a) outsourcing b) importing c) direct investment d) market manipulation
A
Foreign licensing involves _____ risk and _____ control than foreign direct investment. a) lower; less b) higher; more c) lower; more d) more; less
A
Honda's construction of automobile assembly plants in the United States is an example of foreign _____ for Honda Corporation. a) direct investment b) outsourcing c) importing d) licensing
A
If trade restrictions among nations were eliminated, economists predict a) competition would increase, resulting in lower prices and increased choices for consumers. b) the total volume of trade would decline. c) all nations would experience an increase in their foreign debt. d) revenues from tariffs would increase.
A
What is a Catalog Showrooms?
A form of a warehouse showroom where consumers shop from a catalog and products are stored out of the buyer's reach. In a catalog showroom, one item of each product is put on display and all others are out of the buyer's reach. Customers can place orders by phone or in person using catalogs that have been mailed to the house or are on store counters.
dealer loader
A gift, often part of a display, given to a retailer that purchases a specified quantity of merchandise
e
A graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a a) price graph. b) supply curve. c) price/quantity graph. d) marginal revenue curve. e) demand curve.
Marketing Channel (13)
A group of individuals and organization that directs the flow of products from producers to consumers
A missionary salesperson is usually employed by
A manufacturer
If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85, then
Average total cost is at its lowest level
A country has a comparative advantage in the production of a good if it can produce that good _____ than other nations. a) at a lower dollar cost b) at a lower opportunity cost c) using more labor and less capital d) using fewer natural resources
B
Which of the following serves as a good example of a proactive socially responsible approach toward global marketing? a) Offering bribes to those international clients who accept large gifts as common business practices. b) Establishing codes of conduct for vendors, setting clear policies for human rights policies, wages, safety rules, and environmental impact. c) Partnering with the low-cost providers of goods and services, because this strategy serves the interests of stakeholders and stockholders. d) Providing one's customers with the best value at the lowest cost and doing what it takes to make that happen.
B
With the passage of the Sarbanes-Oxley Act, the U.S. government now provides more protection to workers who engage in a) risky types of green investing. b) whistle-blowing. c) dangerous occupations. d) union organizing campaigns.
B
_____ apply to everyone across a broad spectrum of situations regardless of political, religious, class, and ethnic divisions. a) Transnational ethical standards b) Universal ethical standards c) Ethical citizenship d) Ethical touchpoints
B
_____ are items consumers receive free of charge in return for making a purchase. a) Samples b) Premiums c) Coupons d) Rebates
B
_____ expresses the value of one nation's currency in terms of another nation's currency. a) liquidity ratio b) exchange rate c) countertrade ratio d) discount rate
B
_____ is the most basic level of international market development and involves shipping domestically produced products overseas. a) Importing b) Exporting c) Franchising d) Licensing
B
_____ is the nonpersonal, paid communication a company places to influence consumer purchases. a) Advergaming b) Advertising c) Publicity d) A sponsorship
B
_____ is the social movement supporting the consumer's right to be informed, to be safe, to choose, and to be heard. a) Cause-related marketing b) Consumerism c) Social marketing d) Customers First
B
What is bait pricing?
Bait pricing occurs when a marketer prices an item in the product line low with the intention of selling a higher-priced item in the line. The lower-priced item will attract customers into the store, while the marketer hopes that once in the store, the customer will purchase the higher-priced one.
The type of prices most likely to appear in advertising is
Bargain
The oldest form of exchange—trading of products—is known as
Barter
Apple and Lady Gaga have a shared interest in the paid integration of branded products into movies and online videos known as a) advergaming. b) sponsorship. c) product placement. d) trade promotions.
C
Companies use _____ to coordinate their messages through every promotional vehicle. a) virus detection software b) a positioning statement c) integrated marketing communication d) promotional channels
C
Globalization has made ethics and social responsibility _____ for workers at every level. a) less complicated b) easier to monitor c) even more complicated d) a nonissue
C
In the business world, social responsibility refers to a) decisions individuals make about what is right and wrong. b) attempts to earn the highest possible return for the owners of a business. c) the obligation of a business organization to contribute to society. d) the obligation to obey the law.
C
On average, people spend a total of ___ hours a week surfing the Web and watching TV. a) 30 b) 32 c) 62 d) 50
C
Product defects have forced the U.S. to recall a host of toy products from China. The popular Polly Pocket dolls were recalled because they posed what problem? a) toxic lead paint b) eyeballs filled with kerosene c) swallowing hazard d) sharp corners
C
___________ are designed to identify the customers called on and to present detailed information about interaction with those clients.
Call reports
Stacey's client group has been gradually shrinking and she is looking for new prospective clients. She has decided to spend a couple of days approaching potential customers without any prior consent. Stacey's method of approach is known as
Cold canvass
Sherry Sullivan, Kevin Miller's sales manager, points out to him that his last shopper in the housewares department didn't seem involved as he explained the new food processor to her. She suggests that he use a ___________ as part of his presentation next time.
Demonstration
Although Maybelline would like to use ______ as a consumer sales promotion method, this method has extremely high labor costs that are more affordable for higher-end make-up companies such as Clinique and Estée Lauder.
Demonstrations
Harbor Paint Products, Inc. proactively implemented an incentive program that rewarded employees for soliciting customer feedback on its new deck stain product. Outside sales professionals, inside customer service representatives, and partner retail associates were asked to contribute a minimum of seven customer impressions (positive or negative) each week into a company marketing data base. The program promoted a) the use of new technology for efficiency. b) the creation of worthy jobs. c) consumerism and safe work environments. d) consumerism and the right to be heard.
D
Ian has decided to start a business installing voice over Internet protocol (VOIP) software on computers that allows individuals to make phone calls via the Internet. To get his business up and running, Ian has decided to place an ad in the paper. He does not have any money, so he has to put the cost of the ad on his credit card. Ian will spend more money than he will make in the first three months due to the fact that his VOIP business is in the _____ stage of its life cycle. a) decline b) maturity c) growth d) introduction
D
If a product increases its sales during the _____ stage, it is doing so by capturing market share from competitors. a) introduction b) growth c) decline d) maturity
D
Imports and exports enhance international trade, while creating growing opportunities for nations. Which of the following is NOT a benefit of global trade? a) inflow of new ideas b) access to factors of production c) reduced risk d) less competition
D
In promotion, the positioning statement a) is the same as the tag line on a message. b) can be found in magazine print and TV ads for the same product. c) is always word-of-mouth. d) describes the marketer's intent—what he or she wants the consumer to envision about the product as compared to the competition.
D
In regard to social responsibility, _____ is the most ethically responsive economic system. a) a centrally planned economy in which the State can enforce morality b) pure capitalism c) communism, ensuring equal results for all d) a free market economy based on capitalism, steered by ethical people, is the most agile economic system ever conceived
D
Which of the following is the best example of a well-stated sales objective?
Each salesperson should bring in $25,000 in new sales by Nov. 15th
Which of the following is the best example of a well-stated sales objective?
Each salesperson should bring in $25,000 in new sales by November 15.
Stage For Establishing Prices: Evaluation of Competitor's Prices (3)
Easier to set your prices when you know the prices charged for competing products Discovering competitor prices may be a function of marketing research ex. comparative shoppers do this for co's all day Can buy purchase price lists Not always easy to find out this info; especially in producer and resell markets (closely guarded) If price competition prevails then you need to know competitor prices so you can price, just at, below, or above their prices Above comp's prices: try to give products an exclusive image Below comp's prices use it as a competitive tool
Managing the Sales Force
Effective sales force management is an important determinant of a firm's success because the sales force is directly responsible for generating an organization's primary inputs—sales revenue. A firm's reputation is often determined by the ethical behavior of its sales force, making a positive ethical corporate culture imperative.
Psychological Pricing: Odd Even Pricing
Ending the price with certain numbers to influence buyers' perceptions of the price or product Assumes more will be sold at 99.95 than at 100 Customers may think retailer cut price as much as it could Women are more likely to respond to this type of pricing Pricing at even prices, gives the product an upscale feel/image (ex. 100)
Selection of Pricing Strategy: Professional Pricing
Fees set by people with great skill or experience in a particular field Ex. Doctors, lawyers fees etc. This strategy carries with it the idea that professionals have the ethical responsibility not to overcharge customers Drug companies (especially life giving drugs ex. insulin)-> ethical prices
b
Research indicates that both market share and ___________ are good indicators of profitability. a) low pricing b) product quality c) limited competition d) sales growth e) ROI pricing
d
Roberts Electronics calculates that if it produces 15 radar detectors, its costs are $1,500, and if it produces 16 radar detectors, its costs are $1,590. In this instance, $90 is the firm's ___________ cost. a) average b) fixed c) variable d) marginal e) average variable
c
Running a big sale in order to generate enough cash flow to pay creditors is typical in a situation in which a firm's primary pricing objective is a) status quo. b) profit. c) survival. d) market share. e) recovery.
What is Captive-product pricing?
Setting a price for products that must be used along with a main product, such as blades for a razor and film for a camera. Captive pricing also involves pricing the basic product in a product line low, but pricing related items at a higher level. Pricing products that must be used with the main product is known as captive-product pricing.
Psychological Pricing: Prestige Pricing
Setting prices artificially high to convey prestige or a quality image Often used for perfumes, liquor, jewelry, and cars Appliances too; Whirlpool, Viking, Subzero
Coupons
Fraudulent usage, inability to attract potentially brand loyal customers, and used by current customers but not new customers are believed to be disadvantages of
Which of the following is an example of a trade sales promotion method?
Free merchandise
Which of the following is most likely to stimulate customer loyalty?
Frequent-user incentive
Which of the following is most likely to stimulate customer loyalty?
Frequent-user incentives
A marketer sometimes uses temporary price reductions to
Gain market share
Pricing Objectives: Status Quo
Identify price levels that help stabilize demand and sales Good for orgs in a favorable positions; desire nothing more and may set this as their goal Can focus on maintaining market share, meeting competitor prices, maintaining favorable image etc. Status quo pricing can reduce risk by helping to stabilize demand for its product Accountants and attorneys often operate in this environment
c
If Carnival Cruise Lines increased the price of its seven-day cruise package by 10 percent and, as a result, experienced a 20 percent decline in customer bookings, Carnival's demand would be a) steady. b) inelastic. c) elastic. d) prestige. e) marginal.
d
If Colgate-Palmolive wants to maximize profit on its toothpaste, it should operate at the point where a) total costs and total revenues are equal. b) marginal revenue is at its highest level. c) marginal revenue exceeds marginal cost. d) marginal revenue equals marginal cost. e) demand is most elastic.
e
If General Mills looks at Kellogg's cereal prices as the primary method of determining its own prices, General Mills is using a) price fixing. b) price discrimination. c) demand-based pricing. d) market share pricing. e) competition-based pricing.
e
If General Motors determines that it wants to sell 200,000 Chevrolet Acadias and sets the price at $29,500 because it knows that at that price it will reach that goal, the firm would be using a ___________ pricing method. a) cost-plus b) competition-based c) psychological d) comparison e) demand-based
d
If Wrigley set its pricing objective as attaining 38 percent of the chewing gum market, what else would be needed to make this a true pricing objective? a) Statement of demand elasticities b) Identification of cost structure c) Breakeven analysis d) Identification of a time period for accomplishment e) Establishment of a subsequent pricing policy
b
If a business decides to reduce its prices once in a while on an unsystematic basis, it is using a) price reduction planning. b) random discounting. c) bait pricing. d) periodic discounting. e) penetration pricing.
A primary goal of routing and scheduling decisions in personal selling is to
Minimize nonselling time
Sean has narrowed his list and is preparing a packet of information about Jafrum and its products to send to the prospects. He also includes a letter of introduction and says he will contact them within the next two weeks to set up a sales visit. In this scenario, Sean is all of the following except
Missionary salesperson
What assumption does breakeven analysis make that limits its overall usefulness?
It relies on demand for a product being inelastic
What assumption does breakeven analysis make that limits its overall usefulness?
It relies on demand for a product being inelastic.
Justin Caprese phones Ben Kirkland of Southside Furniture to inform him that if he will increase his recent order of 15 mattress sets to 20, he will receive a 14 percent price reduction. This offer is due to a recent overstock condition at the factory and will not be available in the future. The discount offered here is
Noncumulative
Which of the following is most likely to have an inelastic demand curve?
Nonelective surgery
Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing
Nonprice competition
Signs, counter pieces, racks, and self-service cartons are all forms of
Point-of-purchase displays
b
Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's a) average revenue. b) marginal revenue. c) price elasticity. d) average variable revenue. e) average total cost.
e
Price is a) money paid in a transaction. b) not important to buyers. c) of limited interest to sellers. d) the most inflexible marketing mix decision variable. e) the value that is exchanged for products in a marketing transaction.
d
Price is a key element in the marketing mix because it relates directly to a) the size of the sales force. b) the speed of an exchange. c) quality controls. d) the generation of total revenue. e) brand image.
Selection of Pricing Strategy: Promotional Pricing
Price is often coordinated with promotion Price leaders, special event pricing, and comparison discounting are promotional pricing strategies
d
Price skimming and penetration pricing are both strategies used for a) product-line pricing. b) business products only. c) psychological pricing. d) new-product pricing. e) promotional pricing.
New Product Pricing: Penetration Pricing
Prices are set below those of competing brands to penetrate a market and gain a large market share quickly Less flexible bc it's hard to raise prices later if ou need to Good if you think competitors may come into the market-> you build up market share and make it unattractive to other firms
Psychological Pricing: Reference Pricing
Pricing a product at a moderate level and displaying it net to a more expensive model or brand. The hope is that customers will use the higher price as a reference and view the moderate price more favorably
What is reference pricing?
Pricing a product at a moderate level and positioning it next to a more expensive model or brand
Stage For Establishing Prices: Determination of Specific Price (6)
Pricing strategies should help in setting a final price Pricing remains a flexible and convenient way to adjust the marketing mix Flexibility is unique to this component of the marketing mix
c
Pricing the basic product in a product line low while pricing related items at a higher level is called a) premium pricing. b) bait pricing. c) captive pricing. d) price skimming. e) price lining.
Promotional Pricing: Comparison Discounting
Setting a price at a specific level and comparing it with a higher price Higher price could be a competitor's price, price at another retailer, a previous price, or a manufacturer's suggested retail price Can be very informative and have significant impact on customer purchases FTC guidelines to prevent deceptive practices: higher price must be similar to the price at which a reasonable proportion of the product was sold Previous price needs to have been made available for a reasonable period of time
Which of the following is most likely to be a fixed cost?
Rent
A sales career can offer all of the following except a
Structured, inflexible workday
A sales career can offer all of the following except a
structured, inflexible workday.
Closing the Sale
the stage n the selling process when the salesperson asks the prospect 2 buy the product(s).
Integrated Marketing (15)
Coordination of promotion and other marketing efforts for maximum informational and persuasive impact
If a company increased its price from $100 to $120 and the percentage change in quantity demanded was 40 percent, the price elasticity of demand for this product is
-2
If a company increased its price from $100 to $120 and the quantity demanded fell by 40 percent, the price elasticity of demand for this product is
-2
Suggestions for Attracting and Retaining a Top Sales Force (4)
-training and development -compensation -work/life autonomy -product quality and service
Derishia has a toothache and has set up an appointment with Dr. Smiley, her dentist. She isn't looking forward to the trip, but she knows that Dr. Smiley can't fix her tooth unless she pays him a visit. This illustrates the _____ characteristic of services. a) inseparability b) tangibility c) artificiality d) compoundability
A
Name the Five Characteristics of a Warehouse Showroom:
1.Minimal services 2.Large on-premise inventory 3.Vertical merchandise displays 4.Warehouse materials handling technology 5.Large, low cost buildings
There are Three kinds of Specialty Retailers:
1.Traditional Specialty Retailers 2.Off-price retailers 3. Category Killers
Vocabulary from Chapter 17 are:
2 - 42
If the product price is $100, average variable cost $40 per unit, and the total fixed costs are $120,000, what is the breakeven point?
2,000 units
A retailer of Real Dry deodorant prices it at $2.00; it costs the retailer $1.40. What is the approximate markup as a percentage of selling price?
30 percent
A certain location of O'Charley's Restaurant has annual fixed costs of $200,000. If an average tab at the restaurant is $60 and the variable costs per tab is $20, how many groups of customers must O'Charley's serve per year in order to break even?
5,000
How many groups of customers must O'Charley's serve per year in order to break even?
5,000
J.C. Penny's 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 ___ percent for this product
57
Doing business to meet the needs of the current generation without harming the ability of future generations to meet their needs is called a) sustainable development. b) cause-related marketing. c) green marketing. d) the carbon footprint.
A
The new-product development process is a______ phase process for introducing products
7
What is the growth stage of the product life cycle?
: is a period of rapid market acceptance and increasing profits. During this stage of a product's life cycle sales rise rapidly and profits reach a peak and then start to decline
2008 Transparency International indicated that firms from ____ were most likely to offer or accept bribes. a) Russia, China, and Mexico b) United States, China, and Mexico c) United States, Canada, and Mexico d) Russia, Japan, and Mexico
A
e
A Macy's manager designs the casual clothing department such that one of Macy's private label pairs of jeans, priced at $24.99, is positioned next to a national brand of jeans, such as Levis, priced at $39.99. What is the manager attempting to accomplish? a) Everyday low prices strategy b) Odd-even pricing strategy c) Prestige pricing strategy d) Special-event pricing strategy e) Reference pricing strategy
Safe Auto advertises its low-cost automobile insurance as "minimum coverage for minimum budgets." Safe Auto is engaging in
Price competition
A temporary price reduction to resellers for purchasing specified quantities of a product is
A buying allowance
b
A certain location of O'Charley's Restaurant has annual fixed costs of $200,000. If an average tab at the restaurant is $60 and the variable costs per tab is $20, how many groups of customers must O'Charley's serve per year in order to break even? a) 2,000 b) 5,000 c) 10,000 d) 3,333 e) 2,500
b
A company trying to position itself as value oriented should not a) set prices that are reasonable relative to product quality. b) use premium pricing for its products. c) set prices similar to those of its competitors. d) use any advertising for its products. e) consider costs when determining the price of products.
a
A concession in price in business markets to achieve a desired goal is called a(n) a) allowance. b) objective-oriented discount. c) cash discount. d) trade discount. e) cumulative discount.
e
A cost-based pricing method commonly used in retail is called a) value pricing. b) cost-plus pricing. c) cost discounting. d) differential pricing. e) markup pricing.
e
A customer who is ___________ is likely to say, "People notice when you buy the most expensive brand of a product." a) price-conscious b) quality-conscious c) value-conscious d) socially conscious e) prestige-sensitive
e
A market share objective a) is not recommended when sales for the total industry are declining. b) is not especially useful when sales for the total industry are increasing. c) is not especially useful when sales for the total industry are flat. d) is useful primarily in an industry where total sales are increasing. e) can be used effectively whether total industry sales are rising or falling.
c
A marketer is most likely to set prices according to a cash-flow objective when a a) trial-and-error approach to the market is acceptable. b) certain market share must be maintained. c) quick return on investment is desired. d) higher price is acceptable to the firm. e) product is expected to have a long life cycle.
b
A marketer sometimes uses temporary price reductions to a) increase the number of competitors. b) gain market share. c) decrease volume sold. d) increase revenue per item. e) control demand.
d
A measure of sensitivity of demand in relation to changes in price is a) a demand curve. b) a prestige graph. c) marginal analysis. d) price elasticity of demand. e) quantity elasticity.
To gain market share, when Hyundai first entered the U.S. car market it did so with a comparatively low price strategy. One of the negative side effects of making this pricing decision is
A negative impact on the consumers' perception of quality
b
A penetration pricing strategy is particularly appropriate when demand is a) increasing. b) highly elastic. c) highly inelastic. d) decreasing. e) inefficient.
Source (15)
A person, group, or organization with a meaning it tries to share with a receiver or an audience
a
A sale that advertised prices "up to 65 percent off" the original price uses a) tensile pricing. b) random discounting. c) periodic discounting. d) bait pricing. e) psychological pricing.
consumer sweepstakes
A sales promotion in which entrants submit their names for inclusion in a drawing for prizes
e
A price developed in the consumer's mind through experience with the product is called a(n) a) external reference price. b) value-price guideline. c) frame of reference. d) internalized price. e) internal reference price.
e
A price-skimming strategy assumes that a) the initial demand is highly elastic. b) the product is efficient. c) it will be difficult to recoup development costs. d) all consumers have homogeneous tastes. e) the initial demand is highly inelastic.
c
A retailer of Real Dry deodorant prices it at $2.00; it costs the retailer $1.40. What is the approximate markup as a percentage of selling price? a) 3 percent b) 14.3 percent c) 30 percent d) 70 percent e) 20 percent
What is discount pricing?
A straight reduction in price on purchases during a stated period of time. The many forms of discounts include cash discount, a price reduction to buyers who pay their bills promptly.
buy-back allowance
A sum of money given to a reseller for each unit bought after an initial promotion deal is over
buying allowance
A temporary price reduction to resellers purchasing specified quantities of a product
Viral marketing
Andrew receives an email from her sister in law that is actually a recommendation for a website with a demonstration of a new home hair coloring system. She later discovers her sister in law received a free trial kit for passing on Dreas and 4 other friends email address is a long to the marketer. This is known as
If Seagram's marketers found that the firm's Crown Royal bourbon was a prestige product and raised its price, which of the following would most likely happen?
Above some price level, the quantity demanded would begin to decrease
Selection of a Basis for Pricing: Cost Based Pricing
Adding a dollar or % amount to the cost of the product Doesn't really take into account economic conditions of supply and demand There are two types: cost plus pricing & markup pricing
b
Amtrak prices its tickets so that it is less expensive to travel on weekends than during the week when there is heavy business travel. This illustrates ___________ pricing. a) cost-plus b) demand-based c) competitive d) secondary markup e) seasonal
Retailing (14)
An organization that purchases products for the purpose of reselling them to ultimate consumers.
Dual distribution
Apple makes its computers available through its own stores its website and some major retailers this is an example of
Creating a favorable impression and developing rapport with prospective customers is a critical part of the ______ step of personal selling.
Approach
Below the breakeven point, a firm is operating
At a loss
In this stage: The product idea is evaluated to determine its potential contribution to the firm's sales, costs, and profits.
Business Analysis
Which of the following pricing objectives sets prices to recover cash as quickly as possible?
Cash flow
Which of the following pricing objectives sets prices to recover cash as quickly as possible?
Cash-flow
New Product Pricing: Price Skimming
Charging the highest possible price that buyers who most desire the product will pay Most flexible approach bc prices can always be lowered Helps keep demand low enough to be consistent with firm's production capability Provides needed initial cash flows to offset product development costs May make the market seem attractive to a competitor bc of high prices
Provisions of the Robinson-Patman Act, as well as those of the ___________, limit the use of price differentials.
Clayton Act
The _____ stage of the personal selling process is when the salesperson asks the prospect to buy the product.
Closing
In this stage: Plans for full-scale manufacturing and marketing must be refined and settled and budgets for the project is prepared
Commercialization
b
Companies that focus on particular product categories and rely on everyday low pricing to acquire a large market share through aggressive and competitive pricing strategies are often referred to as a) pioneers. b) category killers. c) comparison discounters. d) price leaders. e) category leaders.
What can Consolidated conclude?
Consolidated mustard is a prestige good
When marketers at Consolidated Mustard Company tried to determine demand for their product, they found that at 50 cents, consumers wanted 2,000 jars; at $1.00, they wanted 6,000 jars; and at $1.50, they wanted 4,000 jars. What can Consolidated conclude?
Consolidated mustard is a prestige good.
When using the _____________ approach to selling, the salesperson will ask questions in order to better understand what problem the customer is trying to solve with the purchase?
Consultative selling
Heinz uses various techniques such as coupons, free samples, and consumer contests to encourage consumers to try its products. All of these marketing activities are considered
Consumer sales promotion methods
The difference between consumer sales promotion methods and trade sales promotion methods is
Consumer sales promotions focus on getting customers to buy their products, whereas trade sales promotions focus on getting wholesalers and retailers to buy
Decoding Process (15)
Converting signs or symbols into concepts and ideas
What does a living wage mean globally? a) enough to support an individual b) enough to support a family c) enough to subsist day-to-day d) companies must base their decision on their own values and the laws of both the U.S. and their host country
D
Creating top-ten lists, establishing an industry Hall of Fame, or launching a petition drive are all ways that marketers can a) make effective use of push strategies. b) engage in secondary advertising. c) improve the morale of the sales force. d) generate publicity.
D
When a company designs a product to fail in order to shorten the time between consumer repurchases. This practice is referred to as a) planned destruction. b) planned elimination. c) early retirement. d) planned obsolescence.
D
Ellen is in charge of developing a promotional strategy for a new product her company will soon introduce. She thinks word-of-mouth promotion is likely to be very effective and wants to keep the cost of the campaign relatively low. A key component of her campaign is likely to be a) television advertisements. b) sponsorships of major sporting events. c) magazine advertisements. d) buzz marketing.
D
CPM
Cost per thousand Cost of ad X 1000 (CPM)/by the audiance
Marketers generally view _____ as the minimum price a product can be sold for.
Costs
a
Costs that do not vary with changes in the number of units produced and sold are called ____ costs. a) fixed b) total c) invariable d) variable e) set
b
Costs that vary directly with changes in the number of units produced or sold are called a) changeables. b) variable costs. c) direct costs. d) fixed costs. e) marginal costs.
A television advertisement for Miracle-Gro lawn fertilizer indicates that the product is available at Kmart and Wal-Mart. This form of sales promotion is called a(n)
Dealer listing
A __________ is a gift to a retailer who purchases a specified quantity of merchandise
Dealer loader
Both the Federal Trade Commission Act and the Wheeler-Lea Act prohibit
Deceptive pricing
A graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a
Demand curve
A company may determine how many sales calls per year it needs to serve customers effectively and divide that by the average number of sales calls made by one salesperson in order to
Determine sales force size
prospecting
Developing a database of potential customers
recruiting
Developing a list of qualified applicants for sales positions
Six Stages for Price Establishment
Development of Pricing Objectives Assessment of Target Market's Evaluation of Price Evaluation of Competitor's Price Selection of a Basis For Pricing Selection of a Pricing Strategy Determination of a Specific Price
What do all of the following have in common: tuition, fee, premium, retainer, dues?
Different terms for the concept of price
Which of the following is not a discount provided to business customers?
Differentiated
____ uses the Internet, mobile, and interactive channels to develop communication and exchanges with customers.
Digital marketing
. How can Direct marketing occur?
Direct marketing can occur in five ways: 1. Catalog Marketing 2. Direct-Response Marketing 3. Telemarketing 4. Television Home Shopping 5. Online retailing
After compiling a list of potential customers, a salesperson must
Evaluate whether each prospect is able, willing and authorized to buy the product
a
Executives in Japan decided to price Lexus luxury cars in the United States at $55,000 while pricing them at $66,000 in their own country. This is an example of a) secondary-market pricing. b) price skimming. c) bait pricing. d) prestige pricing. e) random discounting.
When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on
External reference prices
Lucy buys a new dress at T.J. Maxx that has a price tag with "Compare at $50.00. Our Price $29.99." This is an example of the use of
External references prices
Costs that do not vary with changes in the number of units produced and sold are called ____ costs
Fixed
Which of the following is not a concern of the practice of price competition?
Focus on product features
The final stage of the selling process is:
Follow-Up
The ____________ stage of the personal selling process involves making sure that any promises made to the customer are kept in order to develop a relationship with the customer.
Follow-up
The final stage of the selling process is
Follow-up
Pretest
General Mills used a panel of consumers to evaluate its Cheerios campaign featuring children who read the cereal box and try to persuade their parents to watch the cholesterol these consumers judge the advertisements prior to the execution of the advertising campaign this is an example of _____
a
Generally, customers are most likely to rely on the price-quality association when a) they cannot judge the quality of the product for themselves. b) the product is a well-known brand. c) customers can judge the product's quality for themselves. d) the product is purchased through the use of the Internet. e) products are being purchased from well-established retailers that are familiar to customers.
Which of the following is one of the three primary roles for a salesperson as discussed in class?
Generating transactions
Price is a key element in the marketing mix because it relates directly to
Generation of total revenue
If a manager tries to form territories with equal sales potential, the territories will usually be unequal in geographic size; this will cause the salespeople with larger territories to
Have to work longer and harder to generate a certain sales volume
Exclusive distribution
Honey Farms is a market of fine chocolate. The company's latest product, fudge - dipped line. The product is very expensive and targeted to upscale consumers. Which of the following forms of distribution would honey farms be likely to use for this new product.
Reach (16)
How many people do you reach in total with the campaign
In this stage: Businesses and other organizations seek product ideas that will help them to achieve their objectives
Idea Generation
If Wrigley set its pricing objective as attaining 38 percent of the chewing gum market, what else would be needed to make this a true pricing objective?
Identification of a time period for accomplishment
Pricing Objectives: Profit
Identify price and cost levels that allow the firm to maximize profit Profit objectives may be stated in dollar amounts or percentage of sales revenues Often difficult to know how much, so tend to be set at levels that owner and top management agree as satisfactory
The premise behind sales teams is that?
It is difficult to find one person who has all of the skills it takes to be a good salesperson.
A product under nonprice competition would most likely not succeed in the market if
It is easy to duplicate
What does the marketing strategy and development stage consist of?
In the Marketing Strategy and Development stage the company designs an initial marketing strategy for a new product based on the product concept
Contractual
In the distribution channel for Domino's Pizza channel members are linked by legal agreements that spell out the obligation and rights of each number this is an example of _____ vertical marketing system
c
In the long run, the J. F. Smucker Company must view ___________ as the absolute lowest price for its Jif brand peanut butter. a) a 10 percent return on investment b) product development costs c) total costs d) advertising expenditures e) Nestlé's prices
In recent years the proportion of promotional dollars spent on sales promotion has
Increased relative to advertising
Tony tells his wife, Camilla, that his last sales call of the day at DuPont was a disaster. He explains that he never really figured out what the purchasing agent was looking for. Camilla, a sales trainer for another firm, hands Tony a book on
Listening skills
If Pacific Power and Light increased its rates 10 percent and experienced only a 2 percent reduction in the demand for power, the demand would be
Inelastic
Michelle works for a company that sells rotisseries for chicken and other foods. She answers phone calls from customers who see infomercials on TV and call to order the product. Michelle is considered
Inside order taker
Retail salespeople are classified as
Inside order taker
The two groups of order takers in personal selling are
Inside order takers and field order takers
A price developed in the consumer's mind through experience with the product is called a(n)
Internal reference price
What is the first stage of the product's life cycle?
Introduction-, The 1st stage in a product's life cycle- beginning with its first appearance in the marketplace- when sales start at zero and profits are negative
For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded.
Inverse
A major disadvantage of personal selling is that it
Is very expensive per contact
What is psychological Pricing?
It attempts to influence a customer's perception of price to make the product's price more attractive
What does the demand curve for a prestige product look like?
It forms a curve where the greatest quantity sold comes at a medium price and the quantities fall as the price increases or decreases.
Which of the following best characterizes the function of recruiting and selecting a sales force?
It should be a continuous, systematic attempt to match applicants' characteristics to the firm's needs
Which of the following best characterizes the function of recruiting and selecting a sales force?
It should be a continuous, systematic attempt to match applicants' characteristics to the firm's needs.
premiums
Items offered free or at a minimal cost as a bonus for purchasing a product
d
J.C. Penney's 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 ___________ percent for this product. a) 64 b) 36 c) 18 d) 57 e) 45
Jennifer Clarkson, a sales representative for a publisher of college textbooks, had the southern half of the state as a sales territory. Last year, the director of marketing for the publishing company told Jennifer's sales manager to increase her territory to the entire state. Now Jennifer's customers are less satisfied with the company. They are most likely to blame ___________ for their reduced level of customer satisfaction.
Jennifer
Straight commission
Jose Suarez has been hired as sales manager at a new form and is trying to come up with Salesforce conversation message. You would like to have selling expenses related directly to sales resources, and aggressive sales force, and minimization of non selling tasks. What compensation message with the best fill his requirements?
A salesperson will be better able to determine the prospect's specific needs by
Listening carefully to questions and comments and watching reactions during the sales presentation
b
Justin Caprese phones Ben Kirkland of Southside Furniture to inform him that if he will increase his recent order of 15 mattress sets to 20, he will receive a 14 percent price reduction. This offer is due to a recent overstock condition at the factory and will not be available in the future. The discount offered here is a) cash. b) noncumulative. c) seasonal. d) trade. e) cumulative.
Personal selling goals include finding prospects, convincing prospects to buy, and
Keeping customers satisfied
Advertising
Kyle is preparing the promotional plan for JanSport backpacks in early May. This promotion will be executed in the month of August and will be a paid form of non personal communication. It will be communicated to a target audience through a mass medium. Kyle is using the ___ form of promotion
d
Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of a ___________ discount. a) quantity b) cash c) seasonal d) trade e) complementary
To maintain market share and revenue in an increasingly price-sensitive market, companies have focused on quality, used labor-saving technologies, and used efficient manufacturing processes. These tactics have provided gains in productivity that have translated into ___________ for the consumer.
Lower costs for the company and lower prices
e
Lucy buys a new dress at T.J. Maxx that has a price tag with "Compare at $50.00. Our Price $29.99." This is an example of the use of a) internal referencing. b) cumulative discounts. c) seasonal discounts. d) base-point pricing. e) an external reference price.
Roberts Electronics calculates that if it produces 15 radar detectors, its costs are $1,500, and if it produces 16 radar detectors, its costs are $1,590. In this instance, $90 is the firm's ___________ cost.
Marginal
If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur
Marginal cost
Nike
NikeiD positive or emotional appeal Posative : love, sex, joy, humor, patriotism
c
Most pricing objectives based on ___________ are achieved by trial and error because not all cost and revenue data are available when prices are set. a) market share b) cash flow c) return on investment d) survival e) profit
Straight salary
Olivia is the manager of human resources for Zappos. Com. She is currently reviewing the Salesforce compensation method used as apple.com to determine if there is a better way to manage compensation. Olivia knows that the _____ method is easy to administer, yields more predictable selling expenses, and provide sales managers with a large degree of control over sales people.
c
One advantage of nonprice competition is that a) a firm can react quickly to competitive efforts. b) market share becomes less important. c) a firm can build customer loyalty. d) marketing efforts are completely eliminated. e) pricing is no longer a factor.
Yolanda's job is to find new customers for her company's telecommunication services. She encourages existing customers to add more services and finds customers who are completely new to the company. Yolanda would best be classified as a(n)
Order getter
Creative selling, which requires that salespeople recognize a potential buyer's needs and then provide the prospect with the necessary information, is performed by
Order getters
A person who primarily seeks repeat sales is called a(n)
Order taker
Psychological Pricing: Bundle Pricing
Packaging together two or more complementary products and selling them at a single price Ex. combo meals Single bundled price is usually considerably less than the sum of the prices of the individual products Opportunity to purchase combo of products in one transaction may be valued by customers too Can help stimulate sales and increase revenues (bundle slow moving products with higher turnover products)
Psychological Pricing: Multiple Unit Pricing
Packaging together two or more identical products and selling them at a single price Lower per-unit price ex. 4 packs of light bulbs or twin packs of chips Can increase consumption and exposure to new brands When bought in larger quantities, consumption might increase Won't work for some products like salt (can't increase its consumption) Discount stores and warehouse clubs really use this strategy
Personal Selling (17)
Paid personal communication that attempts to inform customers and persuade them to buy products in an exchange situation
personal selling
Paid personal communication that attempts to inform customers and persuade them to buy products in an exchange situation
To determine the breakeven point in units, divide the fixed costs by
Price - VC
combination compensation plan
Paying salespeople a fixed salary plus a commission based on sales volume
straight salary compensation plan
Paying salespeople a specific amount per time period, regardless of selling effort
straight commission compensation plan
Paying salespeople according to the amount of their sales in a given period
Which of the following would be used in setting price of a new product if considerable competition is expected? -psychological pricing -penetration pricing -odd-even pricing -price skimming -prestige pricing
Penetration pricing
While sales contests can motivate employees at all levels to participate, a disadvantage of this method of sales promotion is that
People often discontinue their positive behavior after the contest is over
Marketers have no flexibility in setting prices under conditions of
Perfect competition
For most consumers, there is an assumed relationship between
Price and quality
In this stage: The organization determines if it is technically feasible to produce the product and if it can be produced at costs low enough to make the final price reasonable.
Product Development
Promotional Pricing: Price Leaders
Product priced below the usual markup, near cost, or below cost Hope is that sales of regularly priced products will more than offset reduced revenues from price leaders
Customary pricing?
Products are priced primarily on the basis of tradition. I.e. Gum, candy bars, etc.
a
Products such as light bulbs, canned soft drinks, and ice cream sandwiches are usually priced using a) multiple-unit pricing. b) reference pricing. c) price lining. d) bundle pricing. e) odd-even pricing.
Company sales records, commercial databases, newspaper announcements, telephone directories, and public records are all sources used for
Prospecting
Developing a list of potential customers is called
Prospecting
Janetta Light tells her sales manager that she will be devoting more effort to ___________ in the coming weeks, as her list of potential customers has dwindled below the level of 30 firms recommended by the selling plan.
Prospecting
Sayyid's company has launched a new product line, and he is put in charge of sales. He decides his first step will be to find potential customers in the company's sales records. Sayyid is
Prospecting
Scott Bartello, a salesperson for Xerox, develops a list of potential customers and evaluates them on the basis of their ability, willingness, and authority to purchase copy machines. This process is called
Prospecting
The ___________ stage of the sales process deals with creating the opportunity to make your presentation to the appropriate person?
Prospecting
Sean is developing his list of potential new retail customers by accessing the yellow pages online. Here he finds the contact information for every motorcycle store in the 48 contiguous states, and eliminates those who currently are his customers. Sean is involved in which step of the personal selling process?
Prospecting and evaluating
d
Provisions of the Robinson-Patman Act, as well as those of the ___________, limit the use of price differentials. a) Simpson-Marshall Act b) Federal Trade Commission Act c) Wheeler-Lea Act d) Clayton Act e) Sherman Antitrust Act
____ is a broad set of communication efforts used to create and maintain favorable relationships between a company and its stakeholders.
Public relations
Aaron Epstein tells his fellow retail salesperson at Zales Jewelers that during the second quarter he is going to sell all the Alance watches he can and use his extra earnings to go to Cancun. He exclaims, "Can you believe the __________ program they have on for this quarter?"
Push money
If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ____________ discount.
Quantity
The degree to which the price of a product enhances a customer's satisfaction with the purchase experience and with the product after the purchase is part of their
Response
The salesperson must attract and hold the prospect's attention, stimulate interest, and spark a desire for the product during the
Sales presentation
In this stage, the ideas with the greatest potential are selected.
Screening
Stage For Establishing Prices: Selection of a Basis for Pricing(4)
Select a basis of price: cost, demand, and/or competition Is affected by the type of product, the market structure of the industry, the brand's market share position relative to competing brands and customer characteristics An organization typically considers two or all of the following dimensions
Premium-priced products are usually marketed through
Selective or exclusive distribution
Sales objectives can do all of the following except
Serve as a deterrent both to salespeople and their clients
The key to success with the ____________ approach to selling is to contact as many people as possible and hope that one of them will be interested in your product?
Shotgun selling
Comparative
Soft drink companies advertise that their products beat the competition in national taste test and they refer to the rival brand by name this type of advertisement is best described as
e
Some grocery stores collect data on competitive prices a) by calling their competitors. b) on a quarterly basis. c) through stores' purchase data. d) from their resellers. e) by using full-time comparison shoppers.
c
Steinway produces concert grand pianos, often using the custom materials and designs desired by a specific customer. The average price of these pianos runs about $50,000 depending on the exact piano. What type of pricing does Steinway most likely use for these pianos? a) Markup b) Competition-based c) Cost-plus d) Demand-based e) Secondary-market
The ___________ sales presentation format involves asking a series of questions hoping that one of them will appeal to the customer?
Stimulus-response
Tying agreements occur when a
Supplier furnishes a product to a channel member with the stipulations that the Channel member must purchase other products as well
Which of the following is least likely to be directly involved in actually making sales?
Support sales personel
c
The Highland Racquet Club found that with annual fixed costs of $60,000, its breakeven point is 2,000 members when the membership charge is $60 per person per year. What is the variable cost per person for Highland? a) $45 b) $50 c) $30 d) $25 e) $40
a
The ___________ prohibits price fixing among firms in an industry. a) Sherman Antitrust Act b) Federal Trade Commission Act c) Wheeler-Lea Act d) Robinson-Patman Act e) Clayton Act
Channel Power (13)
The ability of one channel member to influence another member's goal achievement
Receiver (15)
The individual, group, or organization that decodes a coded message
Which of the following is not true when making the sales presentation?
The salesperson should focus on anticipating questions and answering them before they're asked.
What is Nonstore Retailing:
The selling of products outside the confines of a retail facility. There are three factors that are contributing to the increase in this type of selling.
c
The three primary bases for developing prices are a) profit, demand, and competition. b) supply, demand, and marketing objectives. c) demand, competition, and cost. d) markup, cost, and cost-plus. e) negotiation, periodicity, and randomness.
New-Business Sales
These sales personnel are responsible 4 locating prospects & converting them into buyers.
Inside Order Takers
These salespeople work n sales offices & receive orders by mail, telephone, & the Internet. That does not mean, however, that inside order takers never communicate w/customers face 2 face. Retail salespeople are classified as inside order takers
What do all of the following have in common: tuition, fee, premium, retainer, dues?
They are different terms for the concept of price.
During the personal selling process, a salesperson, if possible, should handle objections when
They arise
Many sales people prefer outside selling because?
They can make more money
Generally, customers are most likely to rely on the price-quality association when
They cannot judge the quality of the product themselves
Many sales people prefer inside selling because?
They don't like to travel
e
Tim O'Brien gets the invoice for a load of gravel he purchased last week. The price of the gravel was $55, and the terms are 2/10, n/45. If Tim pays the invoice in five weeks, he will owe a) a penalty. b) $53.90. c) $56.10. d) $58.30. e) $55.00.
In the long run, the J. F. Smucker Company must view ___________ as the absolute lowest price for its Jif brand peanut butter.
Total costs
If a product has an inelastic demand and the manufacturer raises its price,
Total revenue will increase
Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of a ___________ discount.
Trade
The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line. Its basic promotional tool is the discount. These discounts offered to middlemen for performing certain channel activities are referred to as ____________ discounts.
Trade
What type of discount is given to a business purchaser for performing activities such as transporting, storing, and selling?
Trade
Any marketing tactic used to stimulate wholesalers and retailers to carry a producer's products and market those products more aggressively is a
Trade sales promotion method
Maria Martinez works for a cosmetics manufacturer and is responsible for ensuring that retailers have adequate quantities of products when they need them. However, she is directing much of her effort toward helping the retailers promote the products. She would be characterized as belonging to which group of salespeople?
Trade salespeople
Jana works for Hormel Foods and she frequently sets up special displays and distributes samples of Hormel products to customers in supermarkets. Jana would best be classified as a(n)
Trade salesperson
Wholesaling (14)
Transactions in which products are bought for resale, for making other products, or for general business operations.
When deciding on sales promotion methods to employ, marketers take several factors into consideration. Which factor below is unlikely to affect decisions regarding sales promotion methods?
Type of package
Tensile Pricing
Type of pricing often used with Random an Periodic Differential Discounting. Refers to a broad statement about price reductions as opposed to detailing specific price discounts ex. 20-50% off
___________ consumers are concerned about both the price and the quality aspects of a product.
Value-conscious
Costs that vary directly with changes in the number of units produced or sold are called
Variable costs
c
What assumption does breakeven analysis make that limits its overall usefulness? a) It focuses on how to achieve a price objective. b) It assumes a company wants to gain a certain market share. c) It relies on demand for a product being inelastic. d) It focuses only on competitive factors and not costs. e) It assumes demand is elastic for the product.
d
What do all of the following have in common: tuition, fee, premium, retainer, dues? a) They all must be paid in cash. b) They are forms of exchange similar to, but not identical with, money. c) They are forms of exchange similar to, but not identical with, barter. d) They are different terms for the concept of price. e) They have nothing in common.
According to your instructor, which of the following is a strategic issue relating to personal selling a marketing executive needs to address?
What is the role of the salesforce in the promotional mix?
e
What type of discount is given to a business purchaser for performing activities such as transporting, storing, and selling? a) Quantity b) Cash c) Geographic d) Service e) Trade
Which of the following is not true when making the sales presentation? a) The salesperson should focus on anticipating questions and answering them before they're asked. b) The salesperson must spark interest in the product. c) The salesperson should not only talk but also listen to the customer. d) The salesperson should involve the customer by having him or her hold, touch, or use the product. e) A salesperson should not sound like he or she is just reading a script (i.e., he or she should be flexible and respond to the customers' comments).
a
Mary's profits would equal
a loss of $32,000
In conducting an assessment of her accounting firm, Pauline Santana discovers the following annual results: average charge per customer = $250; rent = $12,000; total billings = $150,000; employee compensation and benefits = $60,000; and other costs = $110,000. Given these results, Mary's profits would equal
a loss of $32,000.
When Levi's agrees to pay JC Penney's money for providing television advertising and Sunday newspaper sales fliers emphasizing Levi's jeans, Levi's is offering
a merchandise allowance.
To gain market share, when Hyundai first entered the U.S. car market it did so with a comparatively low price strategy. One of the negative side effects of making this pricing decision is
a negative impact on consumers' perceptions of quality.
As Emily prepares the script for a radio commercial for her boutique, she is engaging in the____ stage of the communication process.
encoding
If Kroger Food Stores advertises 2-liter bottles of Pepsi for $0.89 to generate store traffic that will purchase other items at regular prices, the grocer is using
a price leader
Recruiting and Selecting Salespeople
a process by which the sales manager develops a list of qualified applicants for sales positions.
Odd-even pricing is
a psychological printing strategy
Presto's use of a free trip to New York is an example of ____________, while the $5 discount to its retail stores is an example of _______________.
a sales contest; a buy back allowance
consumer sweepstakes
a sales promotion in which entrants submit their names for inclusion in a drawing for prizes
Demonstrations
a sales promotion method that manufacturers offer temporarily to encourage trial use and purchase of the product or to show how the product actually works.
sales contest
a sales promotion method used to motivate distributors, retailers, and sales personnel through recognition of outstanding achievements
All of the following describe the demand for business products except a) elastic. b) derived. c) joint. d) inelastic. e) fluctuating.
a) elastic.
buy-back allowance
a sum of money given to a reseller for each unit bought after an initial promotion deal is over
Buy-back allowance
a sum of money that a producer gives to a reseller for each unit the reseller buys after an initial promotional deal is over. This method is a secondary incentive in which the total amount of money resellers can receive is proportional to their purchases during the initial promotional effort.
Buying allowance
a temporary price reduction offered to resellers for purchasing specified quantities of a product.
buying allowance
a temporary price reduction to resellers for purchasing specified quantities of a product
Another name for the European Union is a) the Common Market. b) the European Market. c) the Euro. d) NAFTA. e) AECO.
a) the Common Market.
During the personal selling process, a salesperson, if possible, should handle objections when a) they arise. b) the salesperson begins the trial close. c) the sales presentation is approximately half completed. d) when the customer appears to be unhappy or agitated. e) when the salesperson begins the sales presentation.
a) they arise.
Sales promotion is defined as a(n)
activity used as a direct inducement to resellers, salespeople, or consumers.
Premium (Push) Money
additional compensation to salespeople offered by the manufacturer as an incentive to push a line of goods. This is a good method when personal selling is an important part of the marketing effort.
Dealer listings
advertisements promoting a product and identifying the names of participating retailers that sell the product.
dealer listing
advertisements that promote a product and indentify the names of participating retailers that sell the product
creating a series of advertisements and placing then in various advertising media to reach a particular target audience
advertising campaign
sales promotion
an activity and or material intended to induce resellers or salespeople to sell a product or consumers to buy it
Cooperative advertising
an arrangement in which a manufacturer agrees to pay a certain amount of a retailer's media costs for advertising the manufacturer's products. The amount usually allowed is based on the quantities purchased.
cooperative advertising
an arrangement in which a manufacturer agrees to pay a certain amount of a retailer's media costs for advertising the manufacturers product
Lucy buys a new dress at T.J. Maxx that has a price tag with "Compare at $50.00. Our Price $29.99." This is an example of the use of
an external reference price.
Overcoming Objections
anticipate a prospect's objections in order to address and counter them before the prospect has an opportunity 2 raise them
A firm operating below the breakeven point is operating
at a loss
Exterior and interior characteristics such as layout, displays, color, and lighting are all elements of a store's:
atmospherics.
Trade Sales Promotion Methods
attempt to persuade wholesalers and retailers to carry and aggressively market a producer's product.
If General Mills looks at Kellogg's cereal prices as the primary method of determining its own prices, General Mills is using
competition-based pricing
Maintaining or increasing market share
can be achieved even if industry sales are flat or decreasing
A market share objective
can be used effectively whether total industry sales are rising or falling
Training Sales Personnel
can concentrate on the company, its products, its selling methods, or all three. can be aimed at newly hired salespeople, experienced salespeople, or both. may be performed in the field, at educational institutions, in company facilities, and/or by using web-based technology.
Lexmark sells some of its color printers for about $100, but the refill cartridges cover over $30 each. Lexmark's pricing strategy would be best labeled as
captive pricing
At the _____ stage of the personal selling process, a salesperson asks the prospect to buy the product.
closing
The ____ stage of the personal selling process is when the salesperson asks the prospect to buy the product.
closing
The _____ stage of the personal selling process is when the salesperson asks the prospect to buy the product.
closing
The process of putting one's thoughts (meaning) into signs (symbols) is called the:
coding (encoding) process.
Stacey and Evan are preparing budgets for a new product as well as finalizing plans for the full-scale marketing and manufacturing of the new Genie-Vac. They are in the ____ phase of the new-product development process.
commercialization
if the goal is to increase product awareness, the objectives are stated in terms of
communication
Radio and television signals as well as ink on the paper of a magazine or newspaper are all considered:
communication channels.
"comparing a sponsored brands with another" competing brand on the product characteristics
comparative advertising
Showing a product's price along with its previous price, the price of a competing brand, or the price at another retail outlet is called
comparison discounting
ACE Electronics introduces a new voice-activated personal computer that no longer requires a keyboard. ACE charges the high price of $11,000 per unit, thus generating large profits because it has a 20 percent market share. ACE's major problem in the future will most likely be
competition
Current-Customer Sales
concentrate on current customers, calling on people & organizations which have purchased products from the firm before.
An arrangement in which a manufacturer pays a certain amount of a retailer's media costs for advertising that manufacturer's products is
cooperative advertising.
All of the following are key areas of sales force management except
coordinating sales promotion efforts.
A firm establishes which of the following pricing objectives to maintain or increase its product's sales in relation to total industry sales? a) Cash flow b) Sales potential c) Product quality d) Market share e) Status quo
d
For most firms in the United States, demand curves are
downward sloping.
Cheyenne calls to see if her customer's new hardwood floors were installed correctly
during the follow-up step.
"Mrs. Brucker, you would agree that this is the most attractive car interior in this price range, wouldn't you?" Cliff Davis, a salesperson at Midtown Ford, was using a(n) ___________ when he made this statement. a) referral b) objective c) bandwagon approach d) follow-up e) trial close
e
When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on
external reference prices.
premium money (push money)
extra compensation to salespeople for purchasing a line of goods
A sales representative for Coca-Cola travels to various restaurants to determine how much syrup the customer needs for the coming period. This sales representative would be classified as a(n)
field order taker
Doug travels around to various established customers to see what new office supplies they need. His customers have come to depend on him to check their supplies. Doug is a(n)
field order taker
Doug Browton travels around to various established customers to see what new office supplies they need. His customers have come to depend on him to check their supplies. Doug is a(n)
field order taker.
A common form of tactile communications in U.S. business activities is:.
handshaking
If a manager tries to form territories with equal sales potential, the territories will usually be unequal in geographic size; this will cause the salespeople with larger territories to
have to work longer and harder to generate a certain sales volume.
Pricing strategies and methods
help direct and structure the selection of a final price
To expand the number of its retail outlets in the Washington, D.C., area, the Dress Barn bought out a small chain of women's apparel stores in northern Virginia. This type of integration is called
horizontal
Competitors' prices, along with the marketing variables they emphasize, are determining factors in
how important price will be to customers
What is product positioning?
refers to the decisions and activities intended to create and maintain a certain concept of the firm's product (relative to competitive brands) in the minds of the customers.
Point-of-purchase (P-O-P) materials
include outside signs, window displays, counter pieces, display racks, and self-service cartons. These items attract attention, inform customers, and encourage retailers to carry particular products.
The coordination of promotion and other marketing efforts for maximum informational and persuasive impact defines:
integrated marketing communications.
A price developed in the consumer's mind through experience with the product is called a(n)
internal reference price.
What a price means or what it communicates to customers is called
interpretation.
For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded.
inverse
Most marketing channels have marketing intermediaries. A marketing intermediary's role is to
link producers to other middlemen or to consumers
A salesperson will be better able to determine the prospect's specific needs by
listening carefully to questions and comments and watching reactions during the sales presentation.
Tony tells his wife, Camilla, that his last sales call of the day at DuPont was a disaster. He explains that he never really figured out what the purchasing agent was looking for. Camilla, a sales trainer for another firm, hands Tony a book on
listening skills.
Location is important to a retailer because:
location determines the trading area from which the store must draw its customers
To maintain market share and revenue in an increasingly price-sensitive market, companies have focused on quality, used labor-saving technologies, and used efficient manufacturing processes. These tactics have provided gains in productivity that have translated into ___________ for the consumer.
lower costs for the company and lower prices
Suppose that the watchband department of Timex sells completed watchbands to the finished watch department. The finished watch department is charged the price it would have to pay an outside watchband manufacturer less a discount to reflect low sales and transportation costs. This method of pricing is called _______ pricing.
market-based cost
Immediately after the breakeven point, a firm starts to
make profits.
The best advice for recruiting and selecting salespeople for one's organization would be
make recruitment a continuous activity aimed at seeking out the best applicants.
The best advice for recruiting and selecting salespeople for one's organization would be to:
make recruitment a continuous activity aimed at seeking out the best applicants.
The stage of the personal selling process in which the salesperson attempts to make a favorable impression, gather information about the customer's needs and objectives, and build a rapport with the prospective customers is called
making the presentation.
Roberts Electronics calculates that if it produces 15 radar detectors, its costs are $1,500, and if it produces 16 radar detectors, its costs are $1,590. In this instance, $90 is the firm's ___________ cost.
marginal
If Colgate-Palmolive wants to maximize profit on its toothpaste, it should operate at the point where
marginal revenue equals marginal cost.
While anticipating objections and countering them before they are asked is a good idea, one negative consequence of doing so is that the salesperson may
mention objections the customer had not thought of.
trade sales promotion methods
methods intended to persuade wholesalers and retailers to carry a producer's products and market them aggressively
A primary goal of routing and scheduling decisions in personal selling is to
minimize nonselling time.
Assisting the producer's customers in selling to their own customers is the major purpose of a(n) _____.
missionary salesperson
Assisting the producer's customers in selling to those customers is the major purpose of which type of salesperson?
missionary salesperson
Daphne King of Cleborn Pharmaceuticals tells a sales management class at the state university that her job is to call on doctors and explain the benefits of new prescription drugs that her firm develops. Daphne would call herself a(n)
missionary salesperson.
Products such as light bulbs, canned soft drinks, and ice cream sandwiches are usually priced using
multiple-unit pricing
Yolanda's job is to find new customers for her company's telecommunication services. She encourages existing customers to add more services and finds customers who are completely new to the company. Yolanda would best be classified as a(n)
order getter.
Creative selling, which requires that salespeople recognize a potential buyer's needs and then provide the prospect with the necessary information, is performed by
order getters.
Dylan is a sales person for Whole Foods. In his position, he is primarily responsible for seeking repeat sales. Dylan is most likely a(n)
order taker
A person who primarily seeks repeat sales is called a(n)
order taker.
Dylan is a sales person for Whole Foods. In his position, he is primarily responsible for seeking repeat sales. Dylan is most likely a(n):
order taker.
personal selling
paid personal communication that attempts to inform customers and persuade them to buy products in an exchange situation
Personal selling
paid personal communication that attempts to inform customers and persuade them to purchase products in an exchange situation.
Selective demand is demand for a:
particular brand
combination compensation plan
paying salespeople a fixed salary plus a commission based on sales volume
straight salary compensation plan
paying salespeople a specific amount per time period, regardless of selling effort
straight commission compensation plan
paying salespeople according to the amount of their sales in a given time period
A problem associated with ___ is that consumers can predict when prices will be lowered and delay purchases until that time
periodic discounting
The "White Sale" that many department stores have every year a few weeks after Christmas is an example of
periodic discounting
Paid personal communication that attempts to inform and persuade customers to purchase products in an exchange situation is called:
personal selling
Paid personal communication that attempts to inform and persuade customers to purchase products in an exchange situation is called
personal selling.
Signs, counter pieces, racks, and self-service cartons are all forms of
point-of-purchase displays.
If a business decides to reduce its prices once in a while on unsystematic basis, it is using
random discounting
The percentage of consumers in the target audience actually exposed to a particular advertisement in a stated period of time is the definition of:
reach
Alton is reading a magazine ad for a new cologne. In the ad, he sees little more than a photo of a man riding horseback on a beach, and the name of the new cologne, Rugged. In this situation, Alton is a ___, one who ___.
receiver, decodes
Coupons
reduce a product's price and aim to prompt consumers to try new or established products, increase sales volume quickly, attract repeat purchasers, or introduce new package sizes or features.
Dial Soap's advertising slogan "Aren't you glad you use Dial? Don't you wish everybody did?" exemplifies the use of ___ advertising.
reinforcement
Assures customers that they chose the right brand
reinforcement advertising
point of purchase (POP) materials
signs, window displays, display racks, and similar devices used to attract customers
A person, group, or organization that has a meaning it intends and attempts to share with a receiver or an audience is a:
source.
A sale at The Bon Marche the day after Thanksgiving to kick off the Christmas season would be considered
special-event pricing
Which of the following is least likely to be directly involved in actually making sales?
support sales personnel
A support salesperson who usually advises customers on product characteristics and application, system design, and installation procedures is a(n)
technical salesperson
A support salesperson who usually advises customers on product characteristics and application, system design, and installation procedures is a(n)
technical salesperson.
Ryan Amerson leads his company's clients through the installation procedure of their new industrial equipment. He also helps answer their questions about product characteristics and system design both before and after their purchases. Ryan is a
technical salesperson.
Approach
the manner in which a salesperson contacts a potential customer
approach
the manner in which a salesperson contacts a potential customer
At the breakeven point,
the money a company brings in from selling products equals the amount spent producing the products.
Which of the following is a requirement for setting pricing objectives?
the objectives should be explicitly stated
Sales force objectives are generally established for:
the total sales force and each salesperson.
Sales force objectives are generally established for
the total sales force and for each salesperson.
team selling
the use of a team of experts from all functional areas of a firm, led by a salesperson, to conduct the personal selling process
why do advertisers analyze target markets?
to gain information about the target group (demographic factors)
A company trying to position itself as value oriented should not
use premium pricing for its products.
Suppose Tommy Hilfiger is introducing a new line of men's ties. The designer believes that the target market for these ties comprises men who are very status-conscious. In keeping with this assessment, department stores selling the ties should
use price symbolically.
Sales Contests
used to motivate distributors, retailers, and sales personnel through the recognition of outstanding achievements. This method must be equitable for everyone involved.
Sweepstakes
used to stimulate lagging sales and may be used in conjunction with other sales promotion methods.
Competition-based pricing is
used when costs and revenues are secondary to competitors' prices
Missionary Salespeople
usually employed by manufacturers, assist the producer's customers in selling 2 their own customers.
Marginal analysis involves examining
what happens to a firm's costs and revenues when production is changed by one unit.
The amount of profit a channel member expects depends on
what the intermediary could earn if it were handling a competing product instead.
What is premium pricing?
Pricing higher quality or more versatile products higher than other models in the product line.
What is comparison discounting?
Pricing of a product at a specific level & comparing it to a higher price.
What is captive pricing?
Pricing the basic product in a product line low, but pricing related items at a higher level.
What is professional pricing?
Pricing used by people who have great skill or experience in a particular filed of activity.
d
A firm establishes which of the following pricing objectives to maintain or increase its product's sales in relation to total industry sales? a) Cash flow b) Sales potential c) Product quality d) Market share e) Status quo
To capitalize on the rapid growth and increase demand in India, _______ introduced a mobile phone that can be charged with solar power. a) Apple b) Samsung c) Verizon d) Nokia
B
Advertisements for Suave shampoos emphasize that other shampoos may cost more but don't work any better than Suave. In this example, Suave is competing on the basis of
Price
The tuition and fees each student paid for this semester of college are both terms for
Price
Which of the following is the most flexible variable in the marketing mix?
Price
When marketers emphasize price as an issue and match or beat the prices of other companies, they are using
Price competition
If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage, it is committing
Price discrimination
A measure of sensitivity of demand in relation to changes in price is
Price elasticity of demand
Dividing the percentage change in quantity demanded by the percentage change in price gives the
Price elasticity of demand
d
The tuition and fees each student paid for this semester of college are both terms for a) expenses. b) charges. c) bills. d) price. e) exchange valuations.
Ryan Amerson leads his company's clients through the installation procedure of their new industrial equipment. He also helps answer their questions about product characteristics and system design both before and after their purchases. Ryan is a
Technical salesperson
The type of salesperson that usually requires training in physical science or engineering is the
Technical salesperson
What is Periodic discounting?
Temporary lowering of prices on a patterned or systematic basis
a
Temporary price reductions through sales, rebates, and special discounts are often used to a) raise cash quickly. b) decrease costs. c) increase profitability. d) run off the competition. e) create a value image.
c
The type of prices most likely to appear in advertising is a) prestige. b) future. c) bargain. d) internal reference. e) cost-plus.
c
The types of prices that appear least often in ads are ___________ prices. a) reference b) discount c) premium d) comparison e) sale
team selling
The use of a team of experts from all functional areas of a firm, led by a salesperson, to conduct the personal selling process
Which of the following statements about markup pricing is correct?
The use of similar markups reduces price competition
What is direct marketing?
The use of the telephone and non-personal media to introduce products to consumers, who then can purchase them via mail, telephone, or the Internet
If Nabisco had established a pricing objective of selling one out of every three crackers consumed in the world, it would have established an objective based on
market share
approach
The manner in which a salesperson contacts a potential customer
Sales force objectives are generally established for
The total sales force and for each salesperson
What is Catalog Marketing:
A type of marketing in which an organization provides a catalog form which customers make selections and place orders by mail, telephone, or the Internet.
Retail
An organization that purchases products for the purpose of reselling them to ultimate consumers.
What is by-product bundle pricing?
Combining several products and offering the bundle at a reduce price.Using product bundle pricing, sellers often combine several of their products and offer the bundle at a reduced price.
b
Gambrell Designs thinks its new product, the Automatic Dog Walker, will have a short product life cycle; therefore, its marketing department sets its primary pricing objective as a) market share. b) cash flow. c) profit. d) product quality. e) status quo.
b
If Nabisco had established a pricing objective of selling one out of every three crackers consumed in the world, it would have established an objective based on a) cash flow. b) market share. c) survival. d) return on investment. e) dollar sales volume.
What are Department Stores?
Large retail organizations characterized by wide product mixes and employing at least 25 people. Related product lines are organized into separate departments such as cosmetics, toys, home furnishings, appliances, and apparel. They are service oriented. Total product tends to include credit, delivery, personal assistance, merchandise returns, and a pleasant atmosphere. Department stores are considered retailing leaders in a community and are found in places with over 50,000 people. Examples of such stores are Macys, JC Penney, Sears, Marshall Field's, and Neiman Marcus.
e
Maintaining a certain market share, meeting competitors' prices, maintaining a favorable image, and achieving price stability are all associated with a _____ pricing objective. a) product quality b) market share c) survival d) profit e) status quo
What are Warehouse Showrooms?
Retail facilities in large, low-cost buildings with large on-premise inventories and minimal services. Showrooms keep costs low by having the consumer transport, finance, and store merchandise. Most consumers carry their product home in the manufacturer's box. Examples include Wickes Furniture, and IKEA.
Discount Stores
Self-service, general merchandise stores offering brand names and private brand products at a low price. Discounters accept lower margins than conventional retailers do in exchange for high sales volume. Most discount stores carry a wide, but carefully selected assortment of products.
What is direct selling?
The marketing of products to ultimate consumers through face to face sales presentations at home or in the workplace. Traditionally called "door to door selling."
b
The pricing of Clinique makeup considerably higher than brands such as Cover Girl, Revlon, and Maybelline is used to communicate ______, which is the company's primary pricing objective. a) market share b) product quality c) status quo d) profitability e) cash flow
What are the 3 factors that contribute to nonstore retailing?
There are three factors that are contributing to the increase in this type of selling. They are: 1.Consumers, especially women, because of their increased participation in the workforce, have less time to shop in retail stores. 2.Some retail store salespeople are poorly informed. This makes them less able to assist customers. 3.The number of older consumers, who tend to shop less in large stores, is rising.
Head nodding, winking, hand gestures, and arm motions are all forms of ___ communication.
kinesic
The Highland Racquet Club found that with annual fixed costs of $60,000, its breakeven point is 2,000 members when the membership charge is $60 per person per year. What is the variable cost per person for Highland?
$30
What is the variable cost per person for Highland?
$30
Tim O'Brien gets the invoice for a load of gravel he purchased last week. The price of the gravel was $55, and the terms are 2/10, n/45. If Tim pays the invoice in five weeks, he will owe
$55.00.
Tim O'Brien gets the invoice for a load of gravel he purchased last week...If Tim pays the invoice in five weeks, he will owe
$55.00.
A trade ____ occurs when a country imports more goods and services than it exports. a) deficit b) surplus c) dividend d) credit
A
A company with international operations may rely on universal ethical standards to guide a) legal decisions in the nations where they operate. b) decision making across a broad spectrum of situations. c) ethics in a wide range of operational areas, except those issues that result from differences due to religious preferences and gender issues. d) all decisions because ethical standards should never vary from one operation to the next, even if the operations are in several nations. B A nonprofit, nonpartisan organization, Character Counts has created a set of universal ethical standards that transcend cultures. Which of the following is not a universal ethical standard? a) religion b) citizenship c) caring d) respect
A
A comparison of economic indicators among the six most populous nations indicates that the a) U.S. has by far the largest per capita GDP. b) U.S. has the fastest rate of economic growth. c) economy of Brazil is growing the fastest. d) size of the Chinese economy is the second largest, but it is growing very slowly.
A
A nation's legal system provides businesses with _____ for examining ethical standards. a) a starting point b) very little useful guidance c) comprehensive guidelines d) a way to distinguish between ethical issues and nonethical issues
A
A(n)_____ is the systematic evaluation of how well a firm is meeting its goals of ethics and social responsibility. a) social audit b) SRPC (Social Responsibility Progress Checklist) c) social-commercial correlation analysis d) balanced performance report
A
According to research by the Ethics Resource Center (ERC), the most important influence on ethical behavior in the workplace is a) organizational culture. b) enforcement of federal laws. c) a well written code of ethics. d) random punishment of employees who violate ethical norms.
A
All of the following are ways to extend the product life cycle EXCEPT a) change the look of the product's packaging. b) find new uses for the product. c) change the product d) change the marketing mix
A
Although technology can help marketers reach larger target markets, it also presents new challenges such as a) technology-savvy consumers who can control whether the message is received. b) consumers who move around too much. c) store owners who do not display promotional material on time. d) consumers wanting more information than is available.
A
As producers of sophisticated military hardware, companies like Boeing and General Dynamics are restricted from exporting to governments such as Cuba and North Korea. This total ban on exporting of sophisticated technology is an example of a(n) a) embargo. b) nontariff trade barrier. c) tariff trade barrier. d) voluntary export restraints.
A
As the Director of Global Markets for Two Hot to Handle, Inc. Oznur Kaya is always looking to expand the company into large and growing international markets. Two Hot to Handle, Inc. benefits from international trade in all of the following ways EXCEPT a) the international market provides employees with travel opportunities. b) reduced risk. c) inflow of innovation. d) better access to factors of production.
A
Buck Knight of Apollo Athletic Wear, Inc. was caught off guard when a reporter from a national media outlet questioned his company's policy of outsourcing various stages of the production process. The reporter was concerned about the working conditions inside Apollo's network of foreign suppliers that produce the company's products. It appears that Buck Knight was unaware of the major pitfall of foreign outsourcing: a) that companies using foreign outsourcing have an obligation to maintain ethical standards b) that companies using foreign outsourcing give the customer the impression the product was produced in the United States c) that companies using foreign outsourcing can pay labor rates in other countries, which exceed those in the United States when productivity rates are factored into the wage rate d) that companies using foreign outsourcing can lead to the loss of company profits due to increased shipping cost
A
Changes in the amount of foreign aid the U.S. provides to developing nations would directly affect a) the U.S. balance of payments, but would not directly influence its balance of trade. b) the U.S. balance of trade, but would not directly affect its balance of payments. c) both the U.S. balance of payments and its balance of trade by roughly equal amounts. d) neither the U.S. balance of payments nor its balance of trade.
A
Companies with a worldwide presence such as Toyota and Sony actually thrived when the Japanese economy entered a deep, sustained economic slump in the 1990s for the following reason: a) global trade reduced their dependence on the Japanese economy. b) travelers to Japan continued to buy their products. c) the Japanese government fixed the Yen to the United States Dollar. d) although the Japanese economy suffered, the Japanese continued to buy their products.
A
Define joint venture. a) two or more companies sharing resources, risks, and profits without merging b) a formal, long-term agreement c) an agreement that is not all encompassing and is not entirely formal d) when a strong firm buys a controlling interest in a weak firm without approval from its board
A
Deliberately designing a product to fail in order to shorten the time between consumer purchase and repurchase is known as a) planned obsolescence. b) repurchase-driven marketing. c) market-timing production. d) cause-related marketing.
A
In 2009, Amazon remotely and abruptly deleted some digital editions of books from the Kindle devices of customers who had already purchased them. Amazon chose to handle this situation by a) refunding the purchase price and issuing a personal apology by the founder and CEO. b) only refunding the purchase price. c) only issuing a public apology. d) doing nothing.
A
In late 2002, a euro cost $1.00 of U.S. currency. In late 2007, a euro cost $1.49. This indicates that the a) U.S. dollar weakened relative to the euro. b) U.S. dollar strengthened relative to the euro. c) exchange rate between the dollar and the euro deviated significantly from its market equilibrium. d) euro weakened relative to the U.S. dollar.
A
In the introduction stage of the product life cycle, marketing efforts are focused on a) building customer awareness of the product. b) reinforcing brand positioning. c) dynamic innovation. d) protecting market share from competitors.
A
In the promotional effort, a positioning statement a) marks the beginning of the creative development process. b) is the end result of the firm's creative development process. c) usually translates directly into the firm's advertising message. d) is the same thing as the firm's "big idea."
A
Janet reasons, "It's wrong to lie, However, it's okay to overstate my expense account on my last trip because I really need the money, and the company hasn't given me a raise in the past year." This is an example of an employee who applies _____ to fit the situation at hand. a) a universal code of ethics b) relative ethical standards c) a value-weighted ethical approach d) pragmatically justified code of ethics B The nonprofit, nonpartisan organization Character Counts has worked with educators, community leaders, and experts in the field to establish a set of a) core ethical values that transcend political, ethnic, class, and religious differences. b) legal standards for ethical business behavior, which it is urging all states to adopt in order to reduce the complexity of ethical compliance. c) simple rules that can be used to solve common ethical dilemmas. d) ethical benchmarks that can be used to rate companies during a social audit.
A
McDonald's has worked hard to reduce waste by shipping orange juice as frozen concentrate, reducing orange juice packaging by 75%. The company has developed an extensive recycling program. These actions are examples of a) sustainable development. b) social audit. c) corporate code of environmentalism. d) sustainability audit.
A
Motors. On several occasions he has noticed company executives behaving legally but unethically. When he mentioned this behavior and inquired about the company's code of ethics to a coworker she just laughed, "Code of ethics? There is no code of ethics—this is just how this place operates—get used to it." Based on research done by the Ethics Resource Center, Ram Rod Motors will likely experience a) ethical lapses throughout the organization, since organizational culture greatly influences the conduct of employees. b) no impact, since ethical behavior starts and ends with the individual. c) little affect, since the actions witnessed by Homer Watkins are legal. d) a sizable increase in revenue, since the products made by Ram Rod Motors are in demand.
A
Nashika spent a two-week vacation in Africa and purchased more than $4,000 worth of African tribal art. Upon returning to the U.S., she was required to pay a(n) _____ on the artwork. a) tariff b) quota c) embargo d) customs charge
A
One of the major advantages of publicity is that it a) is often viewed by consumers as more credible than advertising. b) gives marketers the maximum possible control over the message. c) targets the intended audience more accurately than other promotional tools. d) has the power to stimulate an immediate desire to buy the product.
A
One reason Apple's iPhone might have high diffusion rate is because a) its use is highly observable. b) it involves highly complex technology. c) it represents discontinuous innovation. d) most consumers view cell phones as convenience goods
A
Pandy's, an American restaurant chain, promotes its business in Latin America with the hopes of offering prospective buyers the opportunity to open and operate Pandy's restaurants in their countries. Pandy's corporate management offers financial and marketing assistance to ensure success within established guidelines. The prospective buyer is the _____ and Pandy's Corporation is the _____. a) franchisee; franchisor b) franchisor; franchisee c) licensee; licensor d) licensor; licensee
A
Pat has noticed some of his company's sales representatives behaving in an unethical manner with clients. He intends to report this ethical lapse through his company's anonymous ethics hotline. If he reports this unethical behavior, he would be a a) whistle-blower. b) scab. c) bell-ringer. d) ringleader.
A
Procter & Gamble's Tremor marketing group has had a great deal of success with its use of a) buzz marketing. b) sponsorship arrangements. c) advergaming. d) integrated marketing approaches.
A
Rapper MC Chillz Lite has a multi-platinum record on the charts. He has built his Hip Hop empire from the ground up on his line of signature assault weapon toys and sugar-free candy. As he relaxes in his enormous house, he gets a call from his agent, who wants him to volunteer at the local Boys and Girls Club. He agrees, but when he arrives there he finds the cash box unattended and steals about $200 before volunteering and leaving. A few days later, his agent calls asking for information about the incident, and MC Chillz Lite accuses the Director of the Boys and Girls Club of falsely accusing him of theft and threatens litigation. He does not know that they have him on camera stealing. What are the ethical implications? a) You are who you are when nobody is looking. MC Chillz Lite not only discredited himself, but also damaged his own company. In addition, he besmirched the reputation of a large charity organization. b) If MC Chillz Lite can get away with it, who cares? Lots of other people do this kind of thing everyday, so what does it matter? c) Since MC Chillz Lite is so rich and such a self-made man, people are just jealous of that and want to take him down for no reason. So what if he slipped up? d) MC Chillz Lite ought to pay back the money he stole, but continue the lawsuit on the basis of defamation of character. Sometimes people hate for no good reason.
A
Researchers have identified five product characteristics that affect the rate of adoption and diffusion. Which of the following is NOT one of these five characteristics? a) stability b) trialability c) observability d) compatibility
A
Since 1946, advances in technology and the overall decline in worldwide trade barriers have resulted in a) more market opportunities but companies are experiencing greater market competition. b) countries like China and India have experienced no economic growth. c) trade in commodities such as oil and corn is becoming nonexistent as all countries move to produce technology-related products. d) the U.S. has experienced persistent balance of payments surplus.
A
Sponsorships are one of the a) fastest growing categories of promotional spending. b) newest forms of product promotion. c) least effective promotional channels when it comes to reaching a specific target market. d) promotional channels that are slowly losing favor as more firms turn to the Internet to reach their target audience.
A
Tanya Osborne, the chief executive officer of Osborne Computer recently announced she was considering using foreign licensing to enter the Chinese market. What is one problem Osborne Computer might experience when using foreign licensing as an international entry strategy? a) Unethical licensees may become competitors in the future. b) Lack of foreign exchange may hurt the license agreement. c) Foreign licensing eliminates the need countertrade. d) Environmental standards might be increased in the future.
A
The Drof Motor Company has created an exciting new vehicle, the Terminator. One reason that the company is so excited about this vehicle is that once the 60,000-mile warranty ends, the vehicle will begin to experience mechanical problems generating more service income for the company. This behavior is a) legal and unethical. b) legal and ethical. c) illegal and unethical. d) illegal and ethical.
A
The _____ is a theoretical model that includes the stages of introduction, growth, maturity, and decline. a) product life cycle b) product diffusion cycle c) product adoption cycle d) product sustainability cycle
A
The difference between consumer products and business products is a) consumer products are for personal use and business products are for a business's operation and/or production. b) consumer products offer a service component while business products do not offer a service component. c) consumer products are specialty products and business products are shopping products. d) consumer goods tend to be consumed quickly, thus having short product lives. Business goods tend to last much longer.
A
The emerging promotional tool with the most impressive return on investment is a) social media. b) paid search advertising. c) search engine advertising. d) online video advertising.
A
The outdoor clothing company Patagonia, Inc. pledges one percent of the company's annual revenue to environmental causes around the world. Founders of the company believe they have an obligation to contribute to society. This is an example of a) social responsibility. b) ethical relativity. c) moral responsibility. d) self-motivated ethics.
A
The prime minister of Equalia has asked that you prepare a report on the nation's competitive strengths and weaknesses. In your report, you detail the nation's comparative advantage in certain industries but warn the prime minister that the nation's advantage is not static. Due to this fact, you recommend that the prime minister: a) place special emphasis on investing in infrastructure and institutions of higher education in order to maintain its comparative advantage. b) not worry about specifics since the invisible hand will guide the economy. c) focus only on exports and try to restrict imports, since imports result in an outflow of currency. d) seek loans from the World Bank in an effort to host the upcoming Olympic games.
A
The purpose of missionary selling is to a) create goodwill by providing information and assistance to customers. b) introduce a brand new product that is unknown to customers. c) market an existing product in new countries. d) stimulate interest in a product among new customers who are not part of the original target audience.
A
The purpose of the General Agreement on Tariffs and Trade (GATT) was to a) encourage worldwide trade. b) prevent wars based on trade issues. c) create intellectual property regulations. d) ensure that every nation receives its fair share of any revenues generated from international trade and tariffs.
A
The sales process follows six key stages, but before the process begins, salespeople must have a) an understanding of the product, industry, and competition. b) completed sales training in the use of effective prospecting techniques. c) an understanding of sales channel marketing tactics. d) an understanding of missionary, personal, and consultative selling practices.
A
The spectrum of how firms address issues concerning social responsibility ranges a) from firms that never contribute to socially responsible causes to firms that choose to integrate social responsibility into their strategic plans. b) from firms that tolerate social ambiguity in their strategic plans to firms who never tolerate social ambiguity in their strategic plans. c) from employees who choose not to support social causes in any way to those who donate not only money to social causes but also their own time and effort. d) from firms that do not spend any profits on socially responsible causes to firms that are willing to be unprofitable for the sake of socially responsible causes.
A
Tim is not a well-rounded salesman. He is still in training, and hasn't closed a whole lot of sales to begin with. But when he scored a huge order, his focus was on getting it out the door, and he forgot what is perhaps the most important step. What is it? a) follow-up b) handle objections c) team selling d) prepare
A
Wallace manufactures tarpaulins for various uses. His are the absolute industry standard, featuring high-end, weather-resistant fabrics and oversized titanium grommets. He wants a larger market share and to do that he needs to offer tarps as convenience or shopping products, not just as specialty products. Wallace decides to manufacture plastic tarps with cheap grommets for sale at every retail outlet he can find. But he doesn't want to rebrand and start over; he'd rather play on the strength of the name he's already built for himself. Which choice best reflects the direction in which he is taking his company? a) Wallace is performing a line extension. b) Wallace is performing a brand extension. c) Wallace is repackaging his product. d) Wallace is cobranding.
A
What do gasoline for a car, ketchup for french fries, and a lady's scarf have in common? a) They are pure goods. b) They are inseparable services. c) They are all in the growth stage of their product life cycle. d) They are "mixed message" products.
A
What is the balance of trade? a) a measurement of the difference between exports and imports b) a measure of the total flow of money into or out of a country c) the measurement of the barter of products for products d) the relative value of one currency to that of another
A
When a country lacks hard currency, it must use _____ to complete international trade. a) countertrade b) importing c) licensing d) exporting
A
When comparing a nation's balance of trade with its balance of payments, it is important to realize that a) the balance of payments includes the balance of trade, but it also includes other financial flows such as foreign borrowing and lending. b) the two concepts should yield the same value, because the value of goods traded must equal the total payments made to buy those goods. c) these two concepts are totally unrelated, so such a comparison is not really meaningful. d) the balance of trade only includes exports and imports of goods, while the balance of payments includes exports and imports of both goods and services.
A
When purchasing raw materials, businesses are most concerned with a) price and service. b) quantity and brand. c) customization. d) image.
A
Which of the following is NOT an important step in the successful implementation of a code of ethics? a) Establish different standards for workers in different regions or countries in order to take cultural differences into account. b) Ensure that top management repeatedly and forcefully emphasizes the importance of ethical behavior. c) Be sure that outside parties, such as supplies, distributors, and customers understand the code. d) Set up a system that allows workers to report illegal or unethical behavior anonymously.
A
Which of the following is most ethical, globally speaking? a) Low wages and working conditions for unskilled labor in developing countries are relative. If it is socially acceptable for a worker to earn less than he would in America, but his wage is fair, there is no harm being done. b) What is happening in developing countries is the enslavement of the world's lower class, and it should be stopped at any cost. c) Unskilled workers in India should earn at least an American minimum wage. d) Workers earning low wages in developing countries turn to the sex trade for relief.
A
Which type of protectionism would actually be advisable? a) A trade embargo on goods produced by known sponsor-states of terrorist organizations. b) A quota set by a government agency in Lithuania that limits imports of coffee. c) High tariffs by the U.S. on crude oil produced by OPEC members. d) VER requirements in Ethiopia that limit the export of coffee to the U.S. and Europe.
A
_____ are the characteristics of the product that companies offer the consumer. If a product is well-designed, each element corresponds to meaningful _____. a) Product features; customer benefits b) Product layers; product perceptions c) Pure services; sensory experience d) Hedonic attributes; product categories
A
_____ consist(s) of small ticket items that businesses consume on an ongoing basis but are not needed to develop a final product. a) Maintenance, repair, and operating products b) Accessory equipment c) Convenience goods d) "Category B" inventory items
A
_____ involves making slight modifications to existing products in an effort to distinguish a product from the competition. a) Continuous innovation b) Discontinuous innovation c) Dynamically continuous innovation d) Disconnected innovation
A
_____ is buying products from overseas markets that are manufactured overseas. a) Importing b) Exporting c) Dumping d) Outsourcing
A
_____ reduce the risk of purchasing something new by allowing consumers to try the product before making a purchase. a) Samples b) Rebates c) Coupons d) Premiums
A
_______ has experienced a rapid increase in the use of credit cards for purchases. a) Asia b) Vietnam c) Thailand d) Africa
A
b
A danger associated with engaging in price competition is that competitors can also change prices quickly and aggressively, which can result in a(n) _____ that will be harmful to both companies. a) reduction in cost b) price war c) competitive draw d) industry collapse e) advertising battle
c
A deduction from list price for purchasing large quantities aggregated over a stated period of time is a a) noncumulative quantity discount. b) additive cash discount. c) cumulative quantity discount. d) cumulative discount allowance. e) additive quantity reduction.
d
A manager at JC Penney discovers that Sears has reduced the price of its children's Levi's from $31.99 to $24.99, according to an advertisement in the Sunday newspaper. She immediately phones her store and instructs the salesperson on duty to put a sign up next to their children's Levi's that reads, "SALE: $24.99." This is an example of what pricing strategy? a) Secondary-market pricing b) Bait-pricing c) Reference pricing d) Random discounting e) Comparison discounting
merchandise allowance
A manufacturer's agreement to pay resellers certain amounts of money for providing special promotional efforts, such as setting up and maintaining a display
free merchandise
A manufacturer's reward given to resellers that purchase a stated quantity of products
scan-back allowance
A manufacturer's reward to retailers based on the number of pieces scanned
e
A problem associated with _____ is that consumers can predict when prices will be lowered and delay purchases until that time. a) random discounting b) penetration pricing c) reference pricing d) everyday low pricing e) periodic discounting
d
A product is a price leader when a) it is sold at the highest price. b) its price maximizes profits. c) an increase or decrease in price leads to increased revenue or lower costs. d) it is sold at less than cost in the hope that sales of other products will increase. e) its price leads the industry in sales.
c
A product that has more features than those of its competition, or that is perceived to be of higher quality, warrants using which type of pricing strategy? a) Custom pricing b) Special-event pricing c) Premium pricing d) Price lining e) Bait pricing
b
A product under nonprice competition would most likely not succeed in the market if a) a new advertising campaign is established for it. b) it is easy to duplicate. c) it is packaged differently from similar products. d) it is priced near the competitors' price. e) its quality has been upgraded.
What is a General Merchandise Retailer?
A retail establishment that offers a variety of product lines that are stocked in depth. The types of customer service, products offered, and operating styles of these retailers vary widely. The types of stores that fall under this category are department stores, discount stores, supermarkets, superstores, hypermarkets, warehouse clubs, and warehouse and catalog showrooms.
d
A sale at The Bon Marche the day after Thanksgiving to kick off the Christmas season would be considered a) psychological pricing. b) comparison discounting. c) customary pricing. d) special-event pricing. e) captive pricing.
sales contest
A sales promotion method used to motivate distributors, retailers, and sales personnel through recognition of outstanding achievements
Flighting
A schedule in which advertisement run for a set period of time, alternating with periods in which no ads run is known as_____ schedule.
What is Direct Response Marketing:
A type of marketing that occurs when a retailer advertises a product and makes it available through mail or telephone orders. Examples of direct response marketing include a billboard promoting floral services by calling 1-800-FLOWERS. Direct response marketing is also conducted by sending letters, brochures, samples, or booklets to consumers on a mailing list. Usually the product price must be at least $20.00 in order to justify the advertising and distribution costs.
What are Category Killers
A very large specialty store concentrating on a major product category and competing on the basis of low prices and product availability. These stores are known as category killers because they expand rapidly and gain sizeable market shares. Examples of category killers include Home Depot, Office Depot, Toys "R" Us, and Best Buy.
c
ACE Electronics introduces a new voice-activated personal computer that no longer requires a keyboard. ACE charges the high price of $11,000 per unit, thus generating large profits because it has a 20 percent market share. ACE's major problem in the future will most likely be a) survival. b) cash flow. c) competition. d) return on investment. e) profit.
If Seagram's marketers found that the firm's Crown Royal bourbon was a prestige product and raised its price, which of the following would most likely happen?
Above some price level, the quantity demanded would begin to decrease.
Physical Distribution (13)
Activities used to move products from producers to consumers and other end users.
Which of the following characteristics distinguish online media from traditional marketing?
Addressability, interactivity, accessibility, connectivity, and control
Pricing Objectives: Survival
Adjust price levels so the firm can increase sales volume to match organizational expenses Tolerate some set back its it means that the company will survive A&F ex. lower prices in recession to survive
Pricing Objectives: Market Share
Adjust price levels so the firm can maintain or increase sales relative to competitor's sales Also to maintain or increase a product's share relative to the total industry sales, market share High relative market shares often translate into higher profits Can increase market share even when total industry sales are flat or declining Sales volume may increase while it's market share decreases, if the overall market is growing
Frequency (16)
Ads take more than once to resonate with people, this is how often these ads appear.
Pro/Con radio
Advantage: reaches percent of consumers; highly mobile and flexible; very low relative cost; add can be changed quickly; high level of geographic and demographic selectivity; encourages use of imagination. Disadvantages: Black visual imagery semicolon short life of message; listeners attention limited because of their activities; market segmentation; difficult buying procedures; limited media and audience research.
Pro/Con tv
Advantages: researches large audience, high-frequency available impact of audio and video, highly visible, highly prestige, geographic and demographic selectivity, difficult to ignore Disadvantages: very expensive, highly perishable message, size of audience not guaranteed, an ounce of prime time limited, lack of sensitivity in the market
Promotional Pricing: Special Event Pricing
Advertised sales or price cutting linked to a holiday, a season, or an event When a sales lag occurs this should be considered Requires a lot of coordination between production, scheduling, storage, and physical distribution
c
Advertisements for Suave shampoos emphasize that other shampoos may cost more but don't work any better than Suave. In this example, Suave is competing on the basis of a) service. b) market share. c) price. d) selection. e) packaging.
dealer listings
Advertisements that promote a product and identify the names of participating retailers that sell the product
________________ is any form of nonpersonal communication about an organization, a good, a service, or an idea by an identified sponsor?
Advertising
Which of the following products is most likely to have an elastic demand curve?
Airline tickets for vacation travel
In establishing sales promotion objectives, a marketer should always
Align objectives with the organization's overall objectives
According to the material presented in class, which of the following is a selling situation?
All of the above are selling situations.
e
All of the following are pricing strategies used by companies establishing prices of multiple products within a product line except a) premium pricing. b) price lining. c) captive pricing. d) bait pricing. e) penetration pricing.
e
All of the following are psychological techniques except a) customary pricing. b) prestige pricing. c) reference pricing. d) odd-even pricing. e) price skimming.
Which of the following services is a full-service advertising agency likely to provide?
All of these - that is why they call it a full-service agency
Which of the following is an inside sales job?
All of these are inside sales jobs
According to your instructor, why do telemarketers keep calling you during dinner to sell you things you don't want even though everybody will tell you that they dislike telemarketers.
All of these are reasons why telemarketers continue to call even when people say they dislike telemarketers
A concession in price in business markets to achieve a desired goal is called a(n)
Allowance
sales promotion
An activity and/or material intended to induce resellers or salespeople to sell a product or consumers to buy it
Cooperative advertising
An arrangement in which a manufacture agrees to pay a certain amount of a retailers media cost for advertising the manufacturer's product. The amount allowed is usually based on the quantities purchased
cooperative advertising
An arrangement in which a manufacturer agrees to pay a certain amount of a retailer's media costs for advertising the manufacturer's products
A person who reports illegal or unethical behavior within an organization is known as a a) horn tooter. b) whistle-blower. c) stakeholder. d) grandstander.
B
Effective motivation of a sales force is best achieved through
An organized set of activities performed continuously
According to your instructor, many inexperienced sales reps fail to establish rapport with the customer in the __________ stage of the personal selling process, making it difficult to uncover needs during the presentation?
Approach
It is not unusual for experienced salespeople to tell a joke or an interesting anecdote before 'getting down to business' with the customer. These people recognize the importance of the ___________ stage of the personal selling process?
Approach
Rick has reviewed a prospect's account and credit history, identified product needs, and gathered the appropriate literature. He feels he is ready for the ____ step of the personal selling process.
Approach
The goal during the __________ of the personal selling process is gain the customer's attention and build the foundation for the sales presentation?
Approach
The step of the personal selling process in which a salesperson contacts a potential customer is called
Approach
Dealer listings
Are advertisements promoting a product and Identifying participating retailers that sell the product. Dealer listings can influence retailers to carry the product, build traffic at the retail level, and encourage consumers to buy the product at participating dealers.
a
At the breakeven point, a) the money a company brings in from selling products equals the amount spent producing the products. b) the total fixed costs are exactly equal to the total variable costs. c) profits are exactly equal to the difference between revenue and total variable costs. d) the marginal revenue of a product is exactly equal to the marginal cost of producing one more unit. e) the marginal cost curve and the average cost curve will be identical for a particular product.
a
At what point does a firm maximize profit? a) The point at which marginal cost equals marginal revenue b) The point at which the firm sells its product at the highest price c) The breakeven point plus the adjusted marginal cost d) The point at which marginal profits equal marginal revenue e) The point at which marginal cost equals marginal profits
Selection of Pricing Strategy: Psychological Pricing
Attempts to influence a customer's perception of price to make a product's price more attractive Help to prevent "sticker shock" This includes reference pricing, bundle pricing, multiple unit pricing, everyday low prices (EDLP), odd even pricing, customary pricing, and prestige pricing
A canoe and recreation club recently filed suit against a number of manufacturing plants located along the Missouri River. In the suit, the club claimed that the plants failed to adequately treat the waste that is being dumped into the streams and waterways, thus adversely affecting the recreatonal opportunities available to club members. The canoe and recreation club is an example of a(n) _____ of the manufacturing companies that operate these plants. a) quasi-customer b) stakeholder c) supplier d) external user
B
A code of ethics should include a) executive exemptions, because they make decisions based on information other employees don't often have. b) executive buy-in and top management communication and leading by example. c) vague representations of ethical st andards, since everybody is different. d) a tolerant approach to enforcement.
B
A couple of weeks ago, your boss had a private conversation with you. She explained that the company's financial performance is poor, and the firm is looking at the possibility of layoffs. She then asked for you to help her determine whether positions in your division should be cut—and if so, which ones. After analyzing the situation, you believe that cutting jobs would almost certainly improve the company's profitability. However, several of the workers who are most likely to be cut are good friends, and you know they would suffer significant financial hardship if they lost their jobs. Your report to your boss is due tomorrow. It appears that you are facing a(n) a) ethical lapse. b) ethical dilemma. c) situation that requires the use of relative ethical standards. d) ethical moot point.
B
A product _____ is a group of products offered by a firm that are closely related to each other, either in terms of how they work, or the customers they serve. a) mix b) line c) spectrum d) category
B
A product in the _____ stage is experiencing periods of rising sales and profits. a) introduction b) growth c) maturity d) decline
B
A study by Transparency International of bribery by firms operating in foreign countries found that U.S. multinational firms were a) among the least likely to pay bribes. b) less likely to pay bribes than Russian, Chinese, or Mexican companies but more likely to pay bribes than companies from most Western European nations. c) among the most likely to pay bribes. d) less likely to pay bribes than German, French, and Spanish firms, but more likely to pay bribes than Chinese, Japanese, and Italian firms.
B
A study by Transparency International suggests that most of the world's poorer nations have business cultures that a) do an excellent job of encouraging entrepreneurship. b) are characterized by rampant corruption. c) strongly encourage ethical behavior. d) believe profits are immoral.
B
A(n) _____ is an agreement among two or more two companies to join forces to pursue specific opportunities without actually merging their operations. a) limited venture b) joint venture c) acquisition d) collusive alliance
B
All of the following are characteristics of services EXCEPT a) variability. b) permanence. c) inseparability. d) intangibility.
B
As a product moves through the stages of the product life cycle, marketers normally will find that a) sales and profits tend to increase at a constant rate. b) they must adjust their marketing strategies to reflect changing market conditions. c) they can maximize profits by sticking to a consistent marketing strategy. d) sales peak well before profits.
B
As the head of a new product development team at McDonald's, you've worked hard to come up with healthy new foods to put on the company's menu. Now you want to promote your new menu options. In order to differentiate your new menu from the competition, your _____ must reflect your vision for a healthier lifestyle. a) big idea b) positioning statement c) personal selling effort d) discontinuous innovation
B
Bean's Crazy is a coffee shop specializing in organically grown coffee and bagels. The founders of the company are interested in quickly expanding into the international marketplace with little risk to their capital holdings. At a recent meeting, they asked you to come up with the best strategy for reaching the global market. After giving it much thought you suggest the company's best option would be a) outsourcing. b) franchising. c) foreign direct investment. d) exporting.
B
Ben & Jerry's is recognized for being a socially conscious trendsetter. As a socially responsible company, this maker of high-quality ice cream is likely to focus on a) putting the needs of other stakeholders above the needs of the owners and employees of their company. b) finding the proper balance between earning profits and meeting responsibilities to other stakeholders. c) providing its ice cream at the lowest possible price. d) partnering with nondairy manufacturers.
B
By definition, a(n) ____ satisfies consumer wants and needs. a) payable b) product c) survey d) prototype
B
Compared to the U.S., the nations of China and India have a) much larger populations, but are lagging in terms of economic growth. b) larger populations and more rapid economic growth. c) higher per capita GDPs. d) very limited market potential.
B
Corporate _____ is the donation of time and/or money to nonprofit organizations in an effort to support charitable causes. a) responsibility b) philanthropy c) remuneration d) marketing
B
DeBeers, the diamond distributor, ran ads in Japan using a marketing strategy that proved popular in the West. The result was a) extremely effective, demonstrating that Japanese culture is becoming more "Westernized." b) ineffective, because the ad showed Japanese women responding in unrealistic ways when their husbands gave them diamonds. c) a government reprimand for inappropriate advertising. d) extremely effective, despite the fact that it had to overcome initial resistance from Japanese diamond merchants.
B
Due to the rising prices of gasoline, Harleen is looking for a car with better gas mileage. She hopes to purchase the newest Preo, an imported car using hybrid technology. But Preos are hard to find, because the government in Harleen's country has limited the number of them that can be imported each year. Harleen is witnessing the impact of a(n) a) tariff. b) quota. c) voluntary export restriction. d) embargo.
B
Establishing a code of conduct for vendors in foreign nations a) is the easiest way for American firms to ensure these vendors produce products that meet U.S. consumer expectations. b) requires American firms to deal with a wide range of issues involving human rights, wages, worker safety, and environmental protection. c) is more likely to be successful if the company works through the foreign government's legislative body. d) is a nice idea in practice, but so far no American firms have been able to actually establish a comprehensive code.
B
Expensive products that consumers purchase infrequently and are unwilling to accept substitutes for are _____. On the other hand, _____ are widely distributed and widely promoted by the product producers. a) unsought products; shopping products b) specialty products; convenience products c) pure goods; pure services d) consumer products; business products
B
Filbertina, a company that markets nuts and other healthy snack foods, has always tried to project an upscale image. However, the company has decided to develop another product line of less expensive snacks. Marketing manager, Joseph Hampton, generally supports the strategy but is concerned that the new line will decrease sales of the company's current brand. Joseph worries about the possibility of: a) market diffusion. b) cannibalization. c) brand confusion. d) brand dispersion.
B
Foreign _____ involves a firm buying the rights to produce, promote, and use the domestic firm's trademark/patents in a defined geographical area as long as there is agreement on specific operating procedures. a) strategic contracting b) licensing c) exporting d) outsourcing
B
Foreign _____ may help a domestic company enter a foreign market with little or no investment costs, but there are other control risks that should be taken into consideration. a) franchising b) licensing c) direct investment d) outsourcing
B
Foreign outsourcing provides numerous benefits to companies involved in the process, but also to consumers. However, the process is not without issues. One key issue is a) while the production cost are lower, the cost to ship the goods can be quite high. b) quality control can be compromised. c) environmental standards are more strict outside the United States. d) foreign outsourcing will cause unemployment to rise causing an economic collapse.
B
Generally speaking, marketers can directly control the promotional tools they use. The tool that they cannot directly control is a) the development of a marketing plan. b) publicity. c) personal selling. d) advertising messages and their placement in the media.
B
If a company wanted to get the most bang for its advertising buck, what might be the best idea? a) television ads b) a viral Web campaign c) a full-page newspaper ad d) NASCAR sponsorship
B
In China and India, conventional landline telephone networks a) make up the vast majority of all phone connections. b) are no longer considered a necessity as these nations move directly to cell phone networks. c) have provided the infrastructure for their Internet backbone and so remain a top investment priority. d) represent the best hope to have a truly connected economy given the lack of sophisticated cell phone technology in these nations.
B
In countries like China and India, the availability of cell phones a) lags far behind their availability in South America. b) has enabled these nations to greatly improve telecommunications without investment in conventional landlines. c) is quite high at present, but further growth in cell phone usage seems to be limited by the fear of citizens that the government will monitor their private conversations. d) is quite high at present, but further growth in cell phones usage is likely to be limited by stringent government regulations.
B
In marketing, promotion refers to a) the paid placement of advertising where consumers shop. b) communication intended to influence consumer purchase decisions through information, persuasion, and reminders. c) efforts that focus more on building goodwill among all stakeholders than on generating immediate sales by final consumers. d) any activities designed to increase sales that don't involve advertising or personal selling.
B
In the growth stage of the product life cycle, competition a) is virtually nonexistent because competitors had enough time to introduce their own products. b) will begin as competing firms introduce their own versions of the product. c) has already become well-established, with many weaker firms already leaving the market. d) will spur major price cuts that dramatically cut into profits.
B
In the late 1970s, Pepsi Cola wanted to enter the Russian marketplace but faced a significant hurdle. Due to the Russian lack of a tradable currency, Pepsi Cola would not be able to receive payment in the traditional sense. Ultimately a deal was struck in which Pepsi Cola traded Pepsi product for Russian-made vodka. This transaction is an example of a) outsourcing. b) countertrade. c) balance of payments. d) licensing.
B
India and the Philippines consistently attract sizeable amounts of foreign investment for services performed in the domestic market and sold internationally. The main reason for this foreign interest is that a) these countries have outstanding infrastructure, with world class transportation and power supply facilities. b) these nations have large numbers of highly educated workers who are paid much less than American workers. c) The dollar's value is higher in the Asian market than in the American market. d) the average income of consumers in these nations is among the highest in the world, so these markets have a lot of potential.
B
International trade provides businesses with access to new customers through a) onshoring and protectionism. b) outsourcing, importing, exporting, licensing, franchising, and foreign direct investment. c) embargoes and licensing. d) networks of global franchising organizations.
B
Kelly has a conundrum: he has an amazingly earth-friendly product that nobody is buying. In his zealotry for mother earth he forgot to ask himself what the real world applications might be for a reusable hemp toilet roll. What might the problem be, from a product perspective? a) Perhaps he needs to tweak it a little bit; make it more mainstream. Maybe, just maybe, it should be made of cotton, for instance. b) His product has negative interest. Since it's an unsought product, he really ought to ratchet down the green zealotry and try something less extreme. c) He has a specialty product. He should conduct some primary research so that he can locate his target demographic. d) He has a shopping product. Since it's a premium product, he should raise the price and place the product at Sharper Image.
B
Language, customs, educational background, social values, and religious holidays need to be understood and respected by foreign businesses in considering a) economic differences. b) sociocultural differences. c) political differences. d) legal differences.
B
MBI's sales strategy is based on having its sales representatives take the time to develop lasting relationships with their customers. The focus is on obtaining a thorough understanding of the needs of each customer so that the representatives can provide practical ways to meet these needs with MBI's products and services. This is an example of a form of promotion known as a) preemptive selling. b) consultative selling. c) tactical promotion. d) customer advocacy.
B
Mary found out that there is a management position available at competitor's store and has applied for it. During the interview process, the prospective new employer asks Mary if she has access to her company's client list. The prospective new employer implies that Mary would be guaranteed the position with a sizable compensation package if she would be willing to bring the client list with her. Mary really could use the extra money. Mary has encountered an ethical dilemma, what should she do? a) Mary should take the position and bring the client list. No one has loyalty to his or her current company anymore. b) Mary should decline to bring the client list with her, since this request is unethical. c) Mary should say she would bring the client list to be hired for the position, but not actually bring it. d) Mary should accept the position, but only bring part of the client list. Her new employer would never know the client list was not complete.
B
NAFTA critics believe Mexico and Canada have contributed to the United States trade deficit because a) our exports have grown faster than our imports. b) our imports have grown faster than our exports. c) our importing and exporting is static. d) we no longer import goods from them.
B
Reasons to eliminate trade restrictions include all of the following EXCEPT a) reduced prices and increased choices for consumers. b) protect national security. c) increase domestic jobs in industries with a comparative advantage. d) use resources more efficiently.
B
Research indicates that the organizational culture a) has very little impact on the individual employee's ethical behavior. b) has significant influence on the individual employee's ethical behavior. c) influences the behavior of individual employees only if it involves clearly illegal behavior, such as stealing or committing fraud. d) will tolerate ethical abuses on the part of top management, but not ethical abuses committed by middle management or lower-level managers.
B
Ross has two different projects he would like to work on this weekend; he wants to paint the spare bedroom or perform some minor repairs on his old '83 Chevy. Unfortunately, he doesn't have time to do both this weekend. The fact that Ross must give up one thing in order to do something else illustrates the concept of a) diminishing returns. b) opportunity cost. c) comparative advantage. d) the hierarchy of needs.
B
Shasta is a plucky young girl who has chosen to make her mark in outdoor fashion and what she defines as "practical clothing." As she prepares to take her ensemble to market, she reflects on what she believes is the defining feature: In order to achieve market differentiation, she has constructed her clothing line primarily of highly reflective and bright materials. In her mind, the clothing line will contribute to society by reducing the risk of silly people becoming lost in the woods by making them highly visible to search and rescue operations. In her effort to grab market differentiation by the horns, what has she probably ignored? a) Typically, outdoors men do not like to walk around looking like Zardo Zap, the tin-foil-bedecked alien from The Wiggles children's program. It does keep them safer, however, and her efforts to change the world are noble. b) Clearly, she has her own ideas about the relationship between product features and customer benefits. Perhaps if she made the reflective features optional and focused on comfort and utility, she could gain both differentiation and market share. c) She should focus on the aspects of quality that the products possess. If she can convince the customer that the price will be forgotten long before quality becomes apparent, she will have a success on her hands. d) She needs to finance her efforts with enough cash to enable her to buy enough time to build brand equity. The Green movement is evidence enough that people will believe anything if it is forcibly advertised enough times.
B
The International Monetary Fund's (IMF) basic mission is to promote international economic cooperation and stable growth. To achieve these goals, the IMF does all of the following EXCEPT a) supports stable exchange rates. b) provides technical advice on building a functioning court system. c) facilitates a smooth system of international payments. d) promotes international trade.
B
The big idea that results from a successful creative development process is a) usually based on a humorous exaggeration of the firm's core values. b) a meaningful, believable, and distinctive concept that cuts through the clutter of promotional messages. c) a message that is easily transferable to other cultures. d) a single key concept that is both rational and emotional in its appeal.
B
The double bottom line social audit procedure a) measures both sales and profits. b) measures both a firm's financial performance and its efforts to meet social responsibilities. c) develops financial rewards for managers whose fundraising contributions to community-based organizations exceed expectations. d) indicates a preference for meeting profit goals and de-emphasizes any company social contributions that would cut into profits.
B
The fact that your favorite ice cream company regularly releases new flavors indicates that it is following a strategy of _____. Sampling the ice cream in the store is part of what will diffuse the product more quickly because of its _____. a) dynamically continuous innovation; complexity b) continuous innovation; trialability c) discontinuous innovation; complexity d) dynamically discontinuous innovation; trialability
B
The global recession decreased the sale of _____ brands and increased the sale of _____ brands. a) store, national b) national, store c) private label, manufacturers' d) national, manufacturers'
B
The more difficult it is for consumers to grasp what a product does and how it works, the slower that product's _____ tends to be. a) movement through the product life cycle b) rate of diffusion c) business cycle d) rate of market separability
B
The number of cell phones in India is a) extremely low, and unlikely to increase. b) currently much lower than in China, but has been growing rapidly in recent years—a trend that is likely to continue. c) the largest in the world, and is expected to continue growing rapidly. d) the fifth largest among the world's nations, but the growth rate is expected to slow considerably over the next few years.
B
The physical good or delivered service that provides a core benefit is called the a) pure product. b) actual product. c) promised product. d) augmented product.
B
The spectrum of socially responsible behavior of firms may vary from a) no profits, to reasonable profits, to generous profits. b) no contributions, to responsive contributions, to proactive contributions. c) intangible ideas, to tangible ideas, to durable ideas. d) developing innovative business initiatives, to reactive business dealings, to proactive business dealings.
B
The stage of the selling process where the salesperson actually asks the customer to make the purchase is known as a) prospecting. b) closing. c) qualifying. d) following up.
B
The stages of the new product development process are a) idea generation, idea screening, analysis, development, testing, and promotional planning. b) idea generation, idea screening, analysis, development, testing, and commercialization. c) idea generation, idea screening, market research, focus groups, intercept surveys, and observation research. d) idea generation, idea screening, market research, development, testing, and observation research.
B
To create a coordinated marketing message, marketers must have information about the consumer, the a) message, the market, and the competition. b) competition, the product, the market, and the strategy of the organization. c) message, the competition, and the intent of the product's use. d) competition, the message, the market, and the store selling the product.
B
Trading blocs are groups of countries a) that are freely trading. b) that have reduced or eliminated tariffs allowing for a free flow of goods among member nations. c) using a common currency in order to borrow from member nations. d) prohibiting trade with nonmember nations.
B
Transparency International's yearly index of "perceived corruption" showed which country has the lowest score, suggesting that rampant corruption is part of their business culture? a) China b) India c) United States d) Russia
B
Utilized by businesses, _____ include(s) small, movable capital purchases, designed for a relatively short productive life. a) unsought products b) accessory equipment c) raw materials d) installations
B
What are some of the current business opportunities in the world economy? a) Finding new ways to use fossil fuels in developing nations is an important aspect of the global economy. b) Underdeveloped nations can leapfrog technologies by eliminating unnecessary steps in the chain of development. c) The U.S. economy is the world's standard bearer, with low taxes and regulation. The cost of doing business here is second to none. d) Countries like Vietnam will not prosper unless they get on board with UN resolutions on climate change. This is the key to good business.
B
What was the predicted result of NAFTA? a) unfair job gains for Canada's technology market b) significant job loss for the U.S. economy c) significant risk to the Mexican peso d) Canadian currency fluctuations
B
When an organization develops a code of ethics, research has indicated that it is important to integrate the code of ethics into which of the following areas? a) new employee orientation only, since employees are new they will pay better attention b) new employee orientation as well as ongoing training c) upper management only, since lower-level employees do not have access to sensitive data d) vendors and suppliers
B
When the Congress of the United States passed an economic stimulus bill with the hope of jump starting the economy, one provision of the bill contained a "Buy American" provision. This provision is an example of a(n) a) tariff. b) nontariff barrier. c) embargo. d) quota.
B
When the total value of exports is higher than the total value of imports, a country experiences a a) trade exchange. b) trade surplus. c) trade deficit. d) countertrade.
B
Which of the following is a benefit of global trade to producers? a) protection from competitive pressures b) inflow of innovative ideas c) simplified operations d) ability to avoid ethical issues
B
e
Below the breakeven point, a firm is operating a) with fixed costs only. b) with minimal variable costs. c) with no revenue. d) profitably. e) at a loss.
c
Both the Federal Trade Commission Act and the Wheeler-Lea Act prohibit a) freezing prices. b) independent pricing policies. c) deceptive pricing. d) price fixing. e) price differentials.
Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Caterpillar is producing at the ___________ point.
Breakeven
c
Breyer's produces a variety of ice cream flavors and lines of varying qualities. The higher quality ice cream varieties are priced higher than the basic ones. Breyer's is using _____ to price its ice cream. a) captive pricing b) price baiting c) premium pricing d) bait pricing e) differential pricing
b
Bundle pricing may be perceived to be of value by customers because a) they always pay a lower price per item than they would have if they bought each item separately. b) they prefer buying a combination of bundled products in a single transaction, which saves time, effort, and perhaps money. c) the companies selling the products can sell them at a lower price because their costs of packaging are lower. d) they are purchasing complementary products, which is convenient for them. e) they can purchase items that are consumed frequently in larger quantities.
d
Buyers who focus on purchasing products that signify prominence and status are a) value-conscious consumers. b) price-conscious consumers. c) socially elite buyers. d) prestige-sensitive buyers. e) brand aware consumers.
Sometimes retailers are offered temporary price reductions for purchasing specified quantities of a product. These offers are used to provide an incentive to handle a new product, to achieve a temporary price reduction, or to stimulate the purchase of an item in large quantities. What is this sales promotion?
Buying allowance
A growing number of companies have begun outsourcing their customer service to foreign call centers. The primary reason is a) greater customer satisfaction. b) it is more efficient. c) low cost. d) better quality service.
C
A product has three product layers. They are the a) implied benefit, explicit benefit, and combined benefit. b) physical form, intangible form, and perceived form. c) core benefit, actual product, and augmented product. d) external layer, internal layer, and environmental layer.
C
A review of the recent experience of the United States economy in the global markets reveals that the United States has a) had a positive impact on the nations' currency b) maintained a trade surplus with all nations except China. c) run a persistent trade deficit since the 1970s. d) attracted little foreign capital.
C
A small mountain kingdom in the south of Africa, Lesotho is primarily an agrarian economy. If its king and political leadership made decisions that sank the kingdom into unmanageable debt through loans it could not hope to repay, to which international body would the king appeal for debt forgiveness? a) NAFTA b) WTO c) IMF d) The World Bank
C
Amy is working with a proprietary primary data set that was commissioned directly by her office. For reasons of competitive secrecy, she has not allowed any of her staff or subordinates access to it as they work on a new ad campaign. Why might this be a particularly bad idea? a) Secrets within corporations are perfectly fine, but Amy should consider that there's more to life than having her firm be first-to-market. b) Amy's paranoid behavior is perfectly justifiable in the modern era. Competitors would eat up her advantage along with her and her company. c) Amy would do well to be mindful of how successful coordination of communication works best when it flows both ways vertically, as well as laterally. d) The new ad campaign can be guided successfully in secrecy. The military operates this way all the time.
C
As a distinctive concept attached to one particular product, the _____ is a phrase that is typically based on either a rational or an emotional premise. a) positioning statement b) promotional message c) big idea d) hook
C
As a technology driven company, Google, Inc.'s corporate code of conduct is quite simple, "Do No Evil." Google, Inc. is using _____ that applies to everyone across the organization to ensure ethical behavior. a) the principle of reciprocity b) a stakeholder value statement c) a universal ethical standard d) a statement of beliefs
C
As gas prices rise, hybrid vehicles are being considered by more consumers. This is because the _____ of hybrid cars rises in comparison to standard cars when gasoline becomes more expensive. a) separability b) trialability c) relative advantage d) variability
C
At the most fundamental level, a consumer buys a product to obtain a) status. b) its implicit benefit. c) a core benefit. d) a lifestyle enhancement.
C
Business ethics and individual ethics differ based on the fact that a) business ethics focus on profits while individual ethics focus on discretionary income. b) individual ethics focus on work-life balance, while business ethics focus on staying within the legal limits of the law. c) business ethics focus on the application of right and wrong in a business setting, while individual ethics are one's personal standards of right and wrong. d) individual ethics focus on personal contributions, while business ethics focus on stockholder contributions.
C
Companies that do business with customers in developing nations that lack access to hard currencies are likely to make extensive use of a) goodwill payment schedules. b) foreign exchange. c) countertrading. d) accumulated bank reserves.
C
Consumer product classifications include a) tangible products, augmented products, limited-use products, and intangible products. b) accessories, maintenance goods, and material goods. c) convenience products, shopping products, specialty products, and unsought products. d) primary products, intermediate products, and final products.
C
Consumerism is a widely accepted social movement. Proponents of this movement believe _____ is a right of all consumers. a) the right to the lowest price b) the right to purchase an extended warranty c) the right to be informed d) the right to return the product in seven days for a full refund
C
D Fizzle is the chief executive officer of Pop Rocks Mining Company. He has convinced the company's board of directors to implement a program which reduces the company's impact on the environment in which it operates, although this program will negatively impact the company's net income in the short term. The company is making an effort to meet the needs of all a) shareholders. b) community members. c) stakeholders. d) regulatory bodies.
C
Dale owns a heavy-haul trucking company specializing in the transportation of dimensional lumber products and other building materials. His company is typically cheaper and faster than his competitors. He's looking for the right positioning statement. Which might be best? a) "Breaking the speed limit for you." b) Dale's trucking provides better service at lower cost. c) Faster service, lower cost, no job too big. d) "Haulin' planks, baby."
C
Decisions of the World Trade Organization in settling trade disputes are a) applied only on a voluntary basis. b) applied only in cases where it can show that both parties will benefit. c) binding on all parties involved in the dispute. d) only relevant to issues involving the World Bank.
C
Developing and promoting environmentally sound products and practices to gain a competitive edge is called a) sustainable development. b) cause-related marketing. c) green marketing. d) consumerism.
C
Due to technological changes, pagers and videocassettes are slowly phasing out. These products are in the _____ stage of the product life cycle. a) recession b) secondary c) decline d) retrograde
C
Explain the steps involved in a social audit, in proper order. a) Establish a double bottom line, set goals, determine how to meet them. b) Set goals, determine how to meet them, and establish a double standard of excellence that allows for multiple ways to achieve success and minimize failures. c) Set goals, determine how to meet them, establish a double bottom line that allows for balance between profit and social responsibility. d) Define the company's PR strategy, formulate an action plan for damage control, and find a way to help customers feel served.
C
Firms that participate in cause-related marketing a) usually find that benefits fall short of costs but pursue these efforts anyway. b) usually can take advantage of significant tax deductions. c) often find that such programs help build their brands and increase sales. d) do so primarily to avoid increased government regulation of their activities.
C
Homer Watkins is in middle management at Ram Rod As Chair of the Board of Directors, Susan Waskal is concerned about the ethical standards at InKlone, Inc. She has asked you to create a standard by which employees have the information they need to make ethical decisions across a range of situations. Susan has asked you to create a(n) a) mission statement. b) ethical resource database. c) code of ethics. d) statement of right and wrong.
C
In an effort to embrace _____, a large community college system recently built a new "green" campus where facilities were designed and constructed to use energy and water more efficiently in order to conserve the environment and its resources for future generations. a) new product development b) profitable land-use c) sustainable development d) cause-related marketing
C
It often takes a pharmaceutical firm 15 or more years to develop a new drug. The sales from these new drugs must recover the expenses of research and development. Many of these pharmaceutical firms want to support socially responsible causes. When they are asked to lower the price of drugs distributed to third world nations, it becomes a(n) _____. Do they forego profits for investors and to fund additional research in order to help those in need? a) cause-related quest b) philanthropic concern c) ethical dilemma d) patent fiasco
C
J.H. Marshall, the CEO of ANS Oil Drilling, Inc., has decided to set aside $100,000 of company profit each year to donate to nonprofit organizations in the local area. These donations are an example of a) corporate responsibility. b) stakeholder philanthropy. c) corporate philanthropy. d) stakeholder responsibility
C
Key areas of interest for a company's office of ethics and compliance would include all of the following EXCEPT a) mitigating employee-filed lawsuits. b) monitoring employee use of the Internet. c) setting goals for a social audit. d) overseeing corporate compliance with legislation.
C
Key infrastructure challenges to consider when entering a foreign market include: a) language, attitudes, and values. b) laws and regulations the government creates. c) transportation, communication, and energy. d) civil war, riots, and economic viability.
C
Paula Populist is a member of the United States Congress representing the City of Steelville and the surrounding area. She has argued that cheap foreign steel has hurt the major employer in her district, Steel City Steel. Paula is championing a bill in Congress to increase tariffs on imported steel. The likely impact of the tariff on imported steel is a) lower prices of steel for United States consumers. b) no impact since foreign currency exchange rates will offset the impact of the tariff. c) higher prices of steel for United States consumers. d) loss of jobs in the United States steel industry.
C
PepsiCo recently calculated the carbon footprint for its Tropicana orange juice brand and was surprised to learn that one-third of its emissions came from a) distributing the orange juice. b) corporate operations. c) applying fertilizer to the orange groves. d) purchased electricity, heat, and steam
C
Quest Systems, a local information technology firm, donates old computer equipment to a recycling company. Quest is demonstrating a) corporate standards. b) corporate philanthropy. c) corporate responsibility. d) cause-related marketing.
C
Relative to other nations, the United States appears to have an advantage in the amount of a) low cost labor. b) petroleum. c) capital. d) uranium.
C
Ron Merlot of the News Network on Cable (NNC) reported the price of Australian wine had greatly increased along with most other Australian-made products imported into the United States. Listening to this report, Maria Garcia can conclude the United States dollar has _____ when compared to the Australian dollar. a) strengthened b) been fixed c) weakened d) achieved parity
C
Successful product differentiation requires that the a) differences must be real rather than merely perceived. b) marketers put most of their efforts into developing an appropriate brand name. c) product must not only be different from those of competitors, it must also be better. d) products have both higher quality and lower cost than those of the competition.
C
Suppose the value of the U.S. dollar strengthened considerably against the euro. Who would be most likely to benefit from this result? a) European tourists traveling in America. b) American manufacturers trying to expand their exports to European markets. c) European firms exporting goods to America. d) European firms operating production facilities in the United States.
C
The European Union created a common currency that 12, member states have since adopted. This common currency is referred to as the a) franc. b) European dollar. c) euro. d) shekel.
C
The Foreign Corrupt Practices Act a) protects American consumers from fraudulent foreign business practices. b) imposes penalties on foreign firms that try to bribe U.S. officials. c) forbids U.S. companies from offering bribes when engaged in foreign business transactions. d) clearly states that all gifts that the representatives of a firm receive abroad constitute a form of bribery.
C
The International Monetary Fund (IMF) implemented a debt relief program to benefit a) automobile manufacturers. b) banks. c) poor countries. d) wealthy countries.
C
The South Korean automobile company Hyundai enjoys a 17% share of the passenger car market in India. They were able to beat the competition by changing subtle aspects of the Hyundais sold in India such as the roof lines to accommodate motorists wearing a turban. The company has shown that understanding a nation's _____ can lead to business success. a) political differences b) economic differences c) sociocultural differences d) legal differences
C
The _____ influences the global economy by providing technical advice to the governments of developing countries for projects in a range of areas including infrastructure and education. a) International Monetary Fund b) World Trade Organization c) World Bank d) General Agreement on Tariffs and Trade
C
The logic behind international trade, in regard to the factors of production, is a) an intergovernmental body such as the UN should regulate international trade so that a more equitable distribution of trade results. Developed nations should not be allowed to "run the table" by dictating terms to poorer nations. b) if an underdeveloped country has the factor of a skilled labor force in abundance, it should withhold this resource and create demand, thereby driving up wages and increasing the quality of life for its citizens. c) international trade allows increased access to the factors. For instance, the U.S. has capital, India and China have inexpensive skilled labor, and OPEC nations have vast reserves of natural resources. d) if there is an imbalance of trade between nations, treaties should be drafted and signed so as to allow the equalization of factors in the international community.
C
The manager of your local Starbucks is trying to increase store traffic on Friday nights from 8 to 10 p.m. She has decided to offer live music by local musicians and to promote this change mostly through publicity and word-of-mouth. Which of the following statements about this decision is most accurate? The use of publicity and word-of-mouth a) is likely to be ineffective because it does not create as powerful an impact as advertising. b) will increase promotional expenses dramatically. c) is likely to have a powerful impact, but the manager will have little direct control over the message it creates. d) will only work if it creates a different message than the message that is created by the store's other promotional tools.
C
The nation with the highest number of cell phone users is a) the United States. b) Russia. c) China. d) Japan.`
C
The net result of all money that flows into and out of a nation due to international payments is measured by the nation's a) balance of trade. b) surplus account. c) balance of payments. d) net national payment.
C
The primary duty of socially responsible companies to their investors is to a) consistently pursue the maximum possible profit each and every period. b) expand the business to achieve a monopoly position. c) seek to generate long-term profits while meeting responsibilities to all stakeholders. d) meet its legal requirements to accurately report on its financial performance
C
The purpose of a written code of ethics is to a) satisfy the requirements of the Sarbanes-Oxley Act. b) eliminate the need for top management to monitor ethical behavior, thus giving these managers more time to deal with other issues. c) provide guidance to help employees make sound ethical decisions across a range of situations. d) explain how the organization will go about satisfying its social responsibilities to each major type of stakeholder.
C
The three countries participating in the North American Free Trade Agreement (NAFTA) are a) Panama, Canada, and the United States. b) Canada, Nicaragua, and Mexico. c) Canada, Mexico, and the United States. d) Mexico, Panama, and Canada.
C
Uberholtz, a German company, has granted Sistec, an American company, the right to manufacture Uberholtz's product and use the Uberholtz trademark in return for a fee. Sistec is the _____ and Uberholtz is the _____. a) franchisee; franchisor b) franchisor; franchisee c) licensee; licensor d) licensor; licensee
C
What is countertrade? a) a measurement of the difference between exports and imports b) a measure of the total flow of money into or out of a country c) the measurement of the barter of products for products d) the relative value of one currency to that of another
C
What is the European Union? a) a trade bloc b) a world trade organization c) a common market d) a free trade alliance
C
What is the difference between outsourcing and importing? a) Outsourcing is when a firm buys foreign products that have already been produced, and importing is when a firm contracts with foreign vendors to produce products. b) Importing is when a firm licenses its product to a foreign firm for production, and outsourcing is when a firm buys foreign property for the express purpose of producing the product. c) Importing is when a firm buys foreign products that have already been produced, and outsourcing is when a firm contracts with foreign vendors to produce products. d) Outsourcing is when a firm licenses its product to a foreign firm for production, and importing is when a firm buys foreign property for the express purpose of producing the product.
C
Which of the following actions best demonstrates the practice of corporate responsibility? a) A company donates $10,000 to a local charity. b) The CEO of a corporation announces that his company has increased its profit margin to investors for the sixth straight year. c) A company changes its business practices to serve its low-income customers better . d) A company gives its employees paid time off to work for nonprofits.
C
Which of the following groups does NOT benefit when a nation has a weak currency? a) domestic firms that want to export goods to foreign markets b) foreign firms that operate facilities within the nation c) domestic firms with operations in foreign countries d) foreign tourists who are visiting the country
C
Which of the following is an example of a big idea based on a rational premise? a) Budweiser: "Whassssuuup?!?! b) GE: "We bring good things to life" c) "Got Milk?" d) Motel 6: "We'll leave the light on for you."
C
Which of the following would be described as an ethical dilemma? a) Johnny, the accountant, has been cooking the books for about five years and is now in danger of being found out. b) Sarah got caught pilfering office supplies. Her justification was that the Bible says you're not supposed to muzzle the ox that treads the grain. Her manager replied that she shouldn't bite the hand that feeds. Now her job may be at stake. c) Horatio is in middle management and has to assign a project to his team. He wants the best results he can get, but also knows that the company will roll out a new downsizing strategy after the project is turned in, and most of his team will be terminated. Now one of them has asked him for advice about a confidential job offer from a competitor. d) Consuela has always wanted to be a used car salesperson. She envisions that it would be an easy way to gain power over people, and she enjoys that.
C
Which scenario is preferable, ethically speaking, for stakeholder groups? a) An unsafe pharmaceutical is released to the public because controlled testing is too expensive. Besides, all the other Big Pharma companies are doing it, and the FDA just looks the other way at what amounts to industry norms. Investors would freak and the stock price would plummet if testing procedures were altered now—it's simply too late. b) Toys manufactured in China are coated in toxic paint. Executives know of this, but decide to delay action until their hand is forced by the press, if that ever happens—because the company really needs this product to sell big if it is to survive the recession. c) Organic juice manufacturer Odwalla finds e.coli bacteria in its product, but not before it hits the market. Several people become ill, and one little girl dies. The CEO shuts down all production, recalls all product, conducts an investigation to fix the problem, resumes production, and attends the girl's funeral all before FDA intervention occurs. d) The local coffee shop uses Styrofoam cups because they're cheap and insulate the coffee better. They do sell their used coffee grounds to gardeners, however.
C
While most consumers care about the environment, green marketing has presented a tough challenge for the following reason: a) consumers find environmentally sensitive products difficult to use. b) green products are not sold in most communities. c) consumers will not sacrifice price, performance or convenience to buy green products. d) green products are cheaper but not as effective as other products.
C
Who holds the record for the most humorous Super Bowl ads? a) Frito Lay b) Big Daddy c) Budweiser d) E-trade
C
You are a salesperson for a local company. You've just finished presenting your sales message to a consumer. The next step in the selling process is to a) close the sale by asking for payment. b) follow up with additional opportunities. c) handle objections. d) provide the potential customer with brochures, videos, or other materials that reinforce your message.
C
____ focuses on business contributions to the community through the actions of the business itself rather than donations of money and time. a) Cause-related marketing b) Corporate philanthropy c) Corporate responsibility d) Middle management
C
____ is the use of marketing partnerships between businesses and nonprofit organizations. The partnerships are designed to spike sales for the company and raise money for the nonprofit organization. a) Consumerism b) Sustainable development c) Cause-related marketing d) Corporate philanthropy
C
_____ are used to encourage consumers to purchase higher-priced items and are commonly used in the car and electronics industries. a) Premiums b) Coupons c) Rebates d) Samples
C
_____ concern(s) the obligation of a business to contribute to society. a) Business ethics b) Relative ethics c) Social responsibility d) Antitrust enforcement
C
_____ occurs when established brands from different companies join forces in an effort to market the same product. a) Cannibalization b) Convenience products c) Cobranding d) Diffusion
C
_____ offer consumers immediate price reductions. a) Rebates b) Samples c) Coupons d) Premiums
C
One of the techniques used during the _________ stage of the personal selling process is to assume that the customer will place an order and begin to discuss the details of the order?
Close
Salespeople receive a set salary plus a commission based on sales with a
Combination compensation plan
Cost Based Pricing: Markup Pricing
Commonly used by retailers. A product's price is derived by adding a predetermined % of the cost, called a markup, to the cost of the product ex. Costco has set their's to 11% markup Using this rigid % markup makes pricing a very routine task that can be easily performed Markup can be stated as a % of cost or as a % of the selling price Important to know which one you're being told ex. retailer pays 45 cents, adds 15 cents and sells for 60 cents Markup as % of cost: Markup/Cost-> (15/45)=33.33% Markup as % of selling price: Markup/Selling Price-> (15/60)=25% This method is convenient which is why it is so often used by retailers who face many pricing decisions
Which of the following statements about nonprice competition is false?
Companies that use nonprice competition do not need to keep track of their competitor's prices
Which of the following statements about nonprice competition is false?
Companies that use nonprice competition do not need to keep track of their competitor's prices.
The manager at Best Buy puts a sign up next to a Pioneer audio system that reads, "Only $199.99! $60 less than Circuit City." This is an example of what type of pricing strategy?
Comparison Discounting
In dealing with the ____________ issue in sales management, there is a tradeoff between salary and commission?
Compensation
If PepsiCo sets its 12-pack at $3.99 to match the price charged by Coca-Cola, Pepsi is using which pricing method?
Competition-based
a
Competition-based pricing is a) used when costs and revenues are secondary to competitors' prices. b) not useful as a method of increasing market share. c) not useful if the competing products are homogeneous. d) not able to increase sales. e) used when competing products are heterogeneous.
e
Competitors' prices, along with the marketing variables they emphasize, are determining factors in a) the instability of prices in a particular industry. b) using markup pricing for consumer goods. c) how much marketing research a firm needs to collect. d) using differential pricing to demonstrate quality differences. e) how important price will be to customers.
In this stage - A small sample of potential buyers is presented with a product idea through a written or oral description to determine their attitudes and initial buying intentions regarding a product
Concept Testing
Coding Process (15)
Converting meaning into a series of signs or symbols
An arrangement in which a manufacturer pays a certain amount of a retailer's media costs for advertising that manufacturer's products is
Cooperative advertising
All of the following are key areas of sales force management except
Coordinating sales promotional efforts
Fraudulent usage, inability to attract potentially brand-loyal customers, and use by current customers but not new customers are believed to be disadvantages of which of the following?
Coupons
Quaker Oats decides to use _____, which are the most widely used form of consumer sales promotion.
Coupons
Customer density and distribution are important factors in
Creating sales territories
A deduction from list price for purchasing large quantities aggregated over a stated period of time is a
Cumulative quantity discount
The most common sales force evaluation practices are for sales managers to compare a salesperson's performance with other salespeople operating under similar selling conditions, or to compare
Current with past performance
Order-getting activities are divided into two categories:
Current-customer and new-business sales
Carlos generally makes cold calls on businesses to look for new prospects. He has many satisfied customers, but like many salespeople, he does not frequently utilize one of the best ways to find new prospects, which is through
Customer referrals
A _____ establishes expectations for ethical behavior at all levels of the organization. a) code of integrity b) social responsibility c) business ethic d) code of ethics
D
A firm's _____ is a brief statement articulating how the marketer wants the target market to envision his or her product relative to the competition. a) promotional prospectus b) consumer vision statement c) brand statement d) positioning statement
D
A unifying written document that articulates a firm's ethical priorities is described as the company's a) human resources brochure. b) compliance manual. c) social contract. d) code of ethics.
D
AIG's CEO, Edward Liddy, demonstrated his lack of personal commitment to high ethical standards by a) flying his employees on corporate jets to visit Washington, D.C. b) giving himself a generous financial retirement package. c) giving the $85 billion back to the FED. d) spending more than $440,000 of the company's bailout money on a sales retreat. D The role of the CEO in setting the ethical tone for a company is a) less important than the role of the company's chief ethics compliance officer. b) no greater and no smaller than the role of every other employee of the company; where ethical behavior is concerned; everyone has an equal responsibility. c) limited to making sure that the written code of ethics is enforced throughout the organization. d) to establish high ethical standards, clearly communicate these standards, and demonstrate a strong personal commitment to them.
D
Airlines recently announced it would serve Starbucks coffee on its flights. This is an example of a) creating a private label. b) brand extension. c) joint venturing. d) cobranding.
D
Apple, Inc. has used foreign outsourcing to construct its iPod. The main advantage to foreign outsourcing is a) the positive impact on a nation's balance of payment. b) increased risk of production. c) improved product quality. d) lower production cost.
D
As the chief of strategy for Paradigm Software, Bill Fence has decided the risks of software piracy in Indonesia are too high to justify a continued presence in that country. The barrier to international trade that Bill Fence is most concerned about is _____ in Indonesia. a) heavy international trade restriction b) economic difference c) infrastructure d) political climate
D
BMW is busy working on rolling out a new model. They've worked everything out "on paper" and pared down a list of groundbreaking new ideas, and culled that into a working prototype that is ready for testing. Not only will their internal team of experts run the new car through its paces in this stage of development, but it will also be tested by consumers in limited informal groups. What stage of the new product development process is BMW at? a) idea screening b) commercialization c) testing d) development
D
BOGO—Buy One, Get One free—at Payless Shoes is a great example of what kind of promotion? a) trade promotion b) samples c) promotional promotion d) premium promotion
D
Based on the size of its population, which of the following countries presents the most attractive market opportunities? a) Costa Rica b) Norway c) Singapore d) China
D
Cell phone penetration is skyrocketing in many developing nations. Which of the following developing nations decided to forgo the conventional phone service of landlines by moving directly to cell phone networks? a) Japan b) Europe c) United States d) Africa
D
Chris just signed off on a large corporate bank loan that infuses badly needed capital into his fledgling startup company. As a matter of tax planning, his strategy has always been to categorize anything he can as a business expense—from games of golf, to meals where the company is even briefly mentioned, to a company lease on a new BMW. But the bank loan was specifically written to provide capital for his current project, and with payments and interest included, he really can't afford much else. Which answer is the most true? a) Chris is being irrational. b) Once the loan is written and funded, it doesn't matter what Chris does with it. He's not doing anything wrong. c) Chris may be engaging in illegal behavior because he is, in effect, lying to the bank. d) Chris's behavior is both stupid and unethical, because he is being dishonest while simultaneously diverting funds from the project that will enable his company to survive.
D
Cigarettes have become very expensive in the past ten years or so, due to punitive government taxation. They are still sold primarily at convenience stores and enjoy highly dispersed placement, however. In addition, they are usually sold to lower class members of society. In light of all of this, how can we (re)classify cigarettes as a product? a) They are unsought products. b) They are specialty products. c) They are shopping products. d) They are still convenience products.
D
Companies that want to develop socially responsible objectives a) should seek out other firms in their area and imitate their approach. b) should focus their attentions on meeting the needs of investors, because the only legitimate social responsibility of a firm is to protect the interests of those who have invested money in the company. c) should scan the competitive environment. d) should identify key stakeholders and consider their priorities.
D
Ethical challenges in business include all of the following, EXCEPT a) ethical dilemmas. b) individual ethics. c) social responsibility. d) code of ethics.
D
Home Depot employs more Olympic hopefuls than any other U.S. company through its Olympic Job Opportunities Program. The business offers athletes full-time pay and benefits for a flexible 20-hour work week in order to accommodate demanding training schedules. This is an example of: a) corporate philanthropy. b) corporate development. c) corporate code of ethics. d) corporate responsibility.
D
In 2002, the United States steel industry lobbied the United States government to place a tax on the importation of foreign-produced steel. The goal was to make imported foreign steel more expensive, thus giving economic relief to U.S. steel producers through a(n) a) embargo. b) nontariff trade barrier. c) quota. d) tariff.
D
In its broadest sense, _____ refers to an organization's ongoing efforts to create positive relationships with its consumers, employees, suppliers, the community, the general public, and the government. a) publicity b) advertising c) sales promotion d) public relations
D
In regard to sustainability, which scenario is the most ethical? a) Environmental concerns dealing with carbon footprint and global warming ought to take precedence over profitability, even if the company goes out of business—gross polluters will be weeded out this way, and run out of business for good. b) Green is in, and people are clamoring for all things environmentally responsible. Oil companies, if they know what is good for them, ought to find ways to transition to other technologies or face backlash from consumers who will simply refuse to buy gas anymore. c) The government should draft new aggressive regulations that allow for tighter controls on businesses and how they impact the environment. Global warming is a frightening reality, and only government can solve the crisis. d) Companies should be proactive in how their operations could impact all stakeholders, environmental concerns included.
D
In today's business environment many businesses are monitoring themselves conducting a systematic evaluation of how well the business is meeting its ethics and social responsibilities. This process is referred to as a(n): a) annual audit. b) social progress report c) annual activist progress check. d) social audit.
D
Internet advertising has seen tremendous growth in the last year. Industry expert eMarketer estimates U.S spending on Internet advertising will double by 2013 in the area of a) paid search advertising. b) online video advertising. c) social media advertising. d) search engine optimization.
D
McDonald's uses foreign _____ to build its corporate presence worldwide. a) licensing b) direct investment c) outsourcing d) franchising
D
Ministers of the World Trade Organization (WTO) meet every two years to address current world trade issues. With a global shift to services rather than goods, the WTO has and will continue to work toward controlling a) the needs of farmers in Africa. b) interest rates at the World Bank. c) nothing, but will instead maintain the status quo. d) piracy of intellectual property and reducing subsidies.
D
Recently, Estée Lauder announced that it will donate a portion of each sale of its Gwyneth Paltrow-endorsed perfume to breast cancer research. This is an example of a) new product extensions. b) marketing development. c) green marketing. d) cause-related marketing.
D
Socially responsible companies should establish codes of conduct for their ______ that set clear policies for human rights, wages, safety, and environmental impact. a) employees b) customers c) competitors d) vendors
D
Socially responsible employers a) act in compliance with all employment laws. b) embrace diversity in the workplace by respecting and valuing each employee. c) advocate balance between work and family commitments. d) all of the above.
D
Stakeholders are a) customers and competitors who interact with the business. b) vendors and suppliers who do not provide services to the business. c) the direct competitors of the business. d) groups or individuals with a personal interest in the performance and actions of a business.
D
a
For most consumers, there is an assumed relationship between a) price and quality. b) value and cost. c) internal and external reference prices. d) value and price consciousness. e) prestige prices and value.
The World Bank is an international cooperative comprised of 187 member countries who a) promote international trade. b) are referred to as the lender of last resort. c) promote international economic cooperation and stable growth. d) provide financial assistance with conditional low-interest loans.
D
The _____ of a company that produces gourmet coffee include its employees, coffee bean growers who supply the company, people who drink its gourmet coffee, and the people who live in the community where the company produces the coffee. a) stockholders b) investors c) philanthropists d) stakeholders
D
The fastest growing category of promotional spending is a) search engine optimization. b) product placement. c) social media. d) sponsorship.
D
The function of laws in the United States is to establish and enforce _____ that apply to everyone in society. a) social norms b) financial norms c) advanced standards d) ethical norms
D
The global trade recovery began in 2010. What one underlining factor may dampen the recovery over the long term? a) housing market b) bank failings c) continued big business bailouts d) low employment
D
The goal of _____ is to meet the needs of the current generation without harming the ability of future generations to meet their needs. a) universal ethical standards b) corporate responsibility c) socially optimal pricing d) sustainable development
D
The goal of universal ethical standards is to a) demonstrate to employees that most ethical dilemmas fall neatly into a handful of categories. b) allow the United States to establish legal standards that are applicable to all firms. c) help people base ethical decisions on relative standards. d) provide guidelines that apply to everyone across a broad spectrum of situations.
D
The idea behind integrated marketing communication is to a) make sure every advertising medium is used to the fullest possible extent. b) channel every customer to the sales department. c) hit each potential customer with a highly personalized "package" of advertising messages. d) create a unified message across multiple channels of communication.
D
The size of the Chinese population gives the country a(n) _____ as compared to the United States since it can produce more of a good than other nations, using the same amount of resources. a) opportunity cost b) comparative advantage c) innovation advantage d) absolute advantage
D
Unilever was able to acquire 50% of its sales from rural India by selling their product a) in large quantities in warehouse chains. b) by vendors in small boats. c) with online distributors. d) in retail outlets who offer in it in tiny, individual quantities.
D
We see the Nike Swoosh on athletic shoes, as well as on an assortment of athletic apparel for almost every sport. Lately, the company has begun branching out into several entirely new product categories, such as MP3 players. This indicates that Nike has decided to pursue a strategy of a) brand equity. b) line extension. c) cobranding. d) brand extension.
D
What best defines comparative advantage? a) a static relationship between nations, wherein one has an opportunity cost advantage over another b) a static relationship between nations, wherein one can produce more of a good than another c) a nonstatic relationship between nations, wherein one can produce more of a good than another d) a nonstatic relationship between nations, wherein one has an opportunity cost advantage over another
D
What do Uno's Pizzeria and LensCrafters have in common? a) They provide pure services. b) Their products are examples of intermediate goods. c) They offer pure goods. d) Their products are a mix of goods and services.
D
When marketers characterize quality, they are concerned with two dimensions. The dimension that refers to how well the product performs its core function is _____, while the dimension that refers to how well the product repeatedly performs is _____. a) reliability; product differentiation b) product consistency; variability c) the level of separability; the quality level d) the quality level; product consistency
D
Which of the following is the most accurate statement about trends affecting promotion? a) Promotional strategies that worked well in the past are likely to be successful in the future. b) Promotion is likely to become much less important in the future. c) Changes in technology have made it important for firms to focus their promotional efforts on passive forms of entertainment. d) Changes in technology are creating both major threats and major new opportunities for those creating promotional messages.
D
Why bother about ethics? a) If a company and its officers are unethical, their behavior could impact the bottom line. b) Ethics are largely irrelevant in a society where right and wrong shift their meaning depending upon the situation. c) One should be more concerned about what is legal than what is ethical. d) The idea of doing good ought to be worthy for its own sake, especially today.
D
With a given amount of labor and other resources, producers in the nation of Alphania can produce either 100 widgets or 50 wackets. Thus, in Alphania two widgets must be given up to produce each wacket. Using the same amount of labor and resources, producers in Betania can produce 40 widgets or 40 wackets—so one widget must be given up for each wacket produced. Based on this information, a) Alphania has a comparative advantage in producing both goods. b) Betania has an absolute advantage in producing both goods. c) Alphania has a comparative advantage in producing wackets but Betania has an absolute advantage in producing wackets. d) Betania has a comparative advantage in producing wackets.
D
With the invention of the telephone, Alexander Graham Bell created a completely new way for people to communicate over long distances. His invention demonstrates a) bleeding edge innovation. b) nonderivative innovation. c) dynamically continuous innovation. d) discontinuous innovation.
D
With their extended hours and numerous locations in a given community, 7-Eleven stores offer _____ to consumers, who find it easy to stop in and make this type of purchase. a) unsought products b) shopping products c) specialty products d) convenience products
D
e
For most firms in the United States, demand curves are a) upward sloping. b) completely horizontal. c) completely vertical. d) c-shaped. e) downward sloping.
You are a manager for a large financial services firm whose brokers trade stocks and bonds for individual customers. Your boss has provided you with your team's sales goals for the following six months. You know that the fastest way to achieve the lofty numbers is to recruit experienced brokers from competitor firms to join your firm. These professionals are likely to bring loyal clients who initiate a lot of trades, making you a clear winner in the eyes of top management. The current brokers in your department are good. They've worked hard and done everything you've asked of them. But they are young and inexperienced. There is a good chance they can achieve the sales goals, but it's not a sure thing. If you seek to recruit new brokers, your current brokers will move down in the ranks and will earn smaller commissions. a) This action is certain to have legal consequences, so you should clear it with your human resources department. b) This is an example where your values and top management's values are clearly in sync. You should follow the easier route to achieving your sales goals because profit is the highest ethical goal in any organization. c) A manager should always consider his team of employees first and go down with the ship, if need be. d) This describes an ethical dilemma between your personal goals and your responsibility as a manager of others.
D
_____ are among the most challenging issues faced by companies and individuals that are involved in international businesses. a) Unethical behaviors of worldwide suppliers b) Socially irresponsible vendors c) Cause-related marketing issues d) Bribery and corruption
D
_____ are the moral principles that govern behavior, while a(n) _____ occurs when the behavior results in a choice among alternatives, each of which has negative consequences. a) Codes of conduct; fatal error b) Social responsibilities; universal ethic c) Business ethics; code of ethics d) Ethics; ethical dilemma
D
_____ integrates advertising of branded products into interactive games. a) Intertising b) E-vertising c) Adactive promotion d) Advergaming
D
_____ involves purchasing the right to use another company's brand name or symbol. a) Diffusion b) Line extension c) Branding d) Licensing
D
_____ is the paid integration of branded products in movies and on television. a) Advertising b) Publicity c) Promotional mix d) Product placement
D
Which of the following is not a method used to determine transfer prices?
Discounted standard cost
e
Dividing the percentage change in quantity demanded by the percentage change in price gives the a) prestige demand curve. b) breakeven point. c) marginal cost curve. d) price sensitivity curve. e) price elasticity of demand.
For most firms in the United States, demand curves are
Downward sloping
b
For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded. a) inelastic b) inverse c) positive d) unknown e) elastic
d
During July and August, Lakewood Links Golf Course, located in South Carolina, offers weekday rates of $13 for a round of golf with a cart. During the rest of the year, the weekday rates are between $25 and $35. This is an example of the use of a) differential pricing. b) incentives. c) competition-based pricing. d) demand-based pricing. e) random discounting.
If Carnival Cruise Lines increased the price of its seven-day cruise package by 10 percent and, as a result, experienced a 20 percent decline in customer bookings, Carnival's demand would be
Elastic
Selection of Pricing Strategy: Product Line Pricing
Establishing and adjusting prices of multiple products within a product line Goal is to maximize profits for the entire product line rather than just one individual product Need to evaluate relationship among the products in the line before making a decision Complementary products; sales increases in one product raise demand for other items (ex. printers and print toners) Substitute Products: buyers of one product in the line are unlikely to purchase one of the other products in the same line ex. Tide, Cheer, Bold, an Gain -> All P&G Several strategies for this: captive pricing, premium pricing, bait pricing, price lining
premium money (push money)
Extra compensation to salespeople for pushing a line of goods
Rob Johnson orders 16 dozen fishing lures from Strike Right for $375. When he gets the invoice, he is furious that $25 in freight charges has been tacked onto his bill because he thought the price included freight costs. Rob should have been certain that the order terms were
F.O.B. destination.
If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges, the retailer is paying a(n) ___________ price.
F.O.B. factory
Rob Johnson orders 16 dozen fishing lures from Strike Right for $375. When he gets the invoice, he is furious that $25 in freight charges has been tacked onto his bill because he thought the price included freight costs. Rob should have been certain that the order terms were
FOB destination
If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges, the retailer is paying a(n) ___________ price.
FOB factory
A sales representative for Coca-Cola travels to various restaurants to determine how much syrup the customer needs for the coming period. This sales representative would be classified as a(n)
Field order taker
Doug Browton travels around to various established customers to see what new office supplies they need. His customers have come to depend on him to check their supplies. Doug is a(n)
Field order taker
Advertising that encourages customers to send in reply cards for additional information aids salespeople in achieving which goal of personal selling?
Finding prospects
Stage For Establishing Prices: Development of Pricing Objectives (1)
First step is to set pricing objectives: goals that describe what a firm wants to achieve through pricing Important tool bc its used as the basis for decisions in other stages of the pricing process Should be stated explicitly and should include the time frame by which you plan to have them accomplished
The purpose of the ___________ stage in personal selling is to determine customers' problems and questions about using the product.
Follow-up
e
For custom-made equipment or commercial construction projects, which pricing method is most likely used? a) Prestige b) Premium c) Differential d) Return-on-investment e) Cost-plus
a
For customers, value is a function of the product's a) quality attributes. b) price. c) price and durability. d) quality and functional attributes. e) quality relative to the quality of competing brands.
Presto appears to be using ______________ to educate its sales force.
Formal sales training
The ___________ sales presentation format, frequently used with inexperienced sales representatives involves memorizing a standardized sales presentation?
Formula selling
e
French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night. This is an indication that suites at this hotel are apparently an example of a(n) ___________ product. a) reverse-demand b) inferior c) standard d) secondary-demand e) prestige
Distribution center
Garcia wholesale plumbing has seen its sales in south-east triple in the past two years. Materials handling director barb Peterson announces plan to the board for an Atlanta facility that will combined shipments received from Garcia's 25 suppliers for nearly an immediate shipment to Plumbing stores and instructors in the region this new facility would best classified as a _____
Reductions for transportation and other costs related to the physical distance between buyer and seller are known as
Geographic pricing
What are Superstores
Giant retail outlets that carry food and non-food products found in supermarkets, as well as most routinely purchased consumer products. Superstores originated in Europe. In addition to food, they carry hardware, small appliances, housewares, clothing, personal care, and shoes. Superstores typically carry 4 times as much merchandise as supermarkets do.
Which of the following products is most likely to have an inverted C-shaped demand curve?
Giorgio perfume
e
Goods that are priced primarily based on the way they have always been priced are examples of a) traditional pricing. b) professional pricing. c) everyday low prices. d) price lining. e) customary pricing.
______________ is still used successfully today, especially when dealing with expensive, one-time purchases; even though most marketers consider it incompatible with relationship building?
High pressure sales
Pricing Objectives: Return on Investment
Identify price levels so the firm can maintain or increase sales relative to competitor's sales Most objective setting based on ROI is done via trial and error bc not all cost and revenue data needed to project the ROI are available when projecting prices
b
If Kroger Food Stores advertises 2-liter bottles of Pepsi for 89 cents to generate store traffic that will purchase other items at regular prices, the grocer is using a) reference pricing. b) a price leader. c) special-event pricing. d) comparison discounting. e) professional pricing.
d
If Norelco introduced a new electric razor that sonically removes hair and priced it first at $175 and then at $150 before reducing the price to $100, the firm's initial pricing strategy is known as a) penetration pricing. b) psychological pricing. c) price lining. d) price skimming. e) odd-even pricing.
e
If Pacific Power and Light increased its rates 10 percent and experienced only a 2 percent reduction in the demand for power, the demand would be a) elastic. b) prestige. c) common. d) horizontal. e) inelastic.
d
If PepsiCo sets its twelve-pack price at $3.99 to match the price charged by Coca-Cola, Pepsi is using which of the following pricing methods? a) Demand-based b) Cost-based c) Reference pricing d) Competition-based e) Price leader
d
If REVO sets the price for its sunglasses at $240, it is using psychological pricing to convey a) thrift. b) cost cutting. c) value. d) prestige. e) availability.
a
If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ____________ discount. a) quantity b) cash c) seasonal d) trade e) complementary
e
If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85, then a) its marginal costs are falling. b) average total cost is at its maximum. c) average total costs are rising. d) demand is elastic. e) average total cost is at its lowest level.
c
If Seagram's marketers found that the firm's Crown Royal bourbon was a prestige product and raised its price, which of the following would most likely happen? a) The quantity demanded would immediately fall. b) The quantity demanded would always increase. c) Above some price level, the quantity demanded would begin to decrease. d) The demand curve for the product would always shift to the right. e) The demand curve for the product would always shift to the left.
a
If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the a) quantity demanded goes down. b) demand remains constant. c) quantity demanded increases. d) demand increases. e) breakeven increases.
d
If a company increased its price from $100 to $120 and the quantity demanded fell by 40 percent, the price elasticity of demand for this product is a) 2. b) 1/2. c) -1/2. d) -2. e) 4.
a
If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage, it is committing a) price discrimination. b) price-consciousness. c) functional discounting. d) price competition. e) price fixing.
d
If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur a) more fixed costs. b) higher average fixed costs. c) fewer variable costs. d) a marginal cost. e) higher average variable costs.
a
If a product has an inelastic demand and the manufacturer raises its price, a) total revenue will increase. b) quantity demanded will decrease. c) the demand schedule will shift. d) the demand will become more inelastic. e) total revenue will decrease.
b
If a product is priced based on how many or how few people want it at a particular time and place, ______ pricing is being used. a) markup b) demand-based c) competitive d) peak e) differential
b
If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges, the retailer is paying a(n) ___________ price. a) F.O.B. destination b) F.O.B. factory c) transfer d) postage-stamp e) base-point
d
If an organization sets prices to recover research and development expenses and establish a premium quality image for its product, it would be using a _________ pricing objective. a) survival b) return on investment c) market share d) product quality e) cash flow
b
If the product price is $100, average variable cost $40 per unit, and the total fixed costs are $120,000, what is the breakeven point? a) 500 units b) 2,000 units c) 1,200 units d) 300 units e) 3,000 units
e
If the terms of a business exchange are 2/10 net 30, this means that the transaction a) involves a cumulative discount if paid in 30 days. b) involves a noncumulative discount. c) offers a discount if the buyer lives within a ten-mile radius. d) price does not include the cost of freight. e) involves a cash discount if paid within ten days.
b
In conducting an assessment of her accounting firm, Pauline Santana discovers the following annual results: average charge per customer = $250; rent = $12,000; total billings = $150,000; employee compensation and benefits = $60,000; and other costs = $110,000. Given these results, Mary's profits would equal a) a loss of $20,000. b) a loss of $32,000. c) $28,000. d) $40,000. e) $222,000.
What a price means or what it communicates to customers is called
Interpretation
According to your instructor, when is it appropriate to ask for the order when closing a sales call.
It is always appropriate to ask for the order
What areWarehouse Clubs?
Large scale, members only establishments that combine features of cash and carry wholesaling with discount retailing. Use of a warehouse club includes an annual fee of about $35.00. Small retailers and ultimate consumers affiliated with government agencies, credit unions, banks, schools, and hospitals can also shop at warehouse clubs.
What are Supermarkets?
Large, self-service stores that carry a complete line of food products, along with some non-food products (cosmetics and nonprescription drugs). Supermarkets are arranged for maximum efficiency in stocking and handling products. They offer lower prices than smaller neighborhood grocery stores, usually provide free parking, and some cash checks.
b
Lexmark sells some of its color printers for about $100, but the refill cartridges cost over $30 each. Lexmark's pricing strategy would be best labeled as a) bait pricing. b) captive pricing. c) customary pricing. d) price lining. e) complementary pricing.
Marketing Intermediaries (13)
Links producers to other intermediaries or to ultimate consumers through contractual arrangements or through the purchasing and reselling products.
At what point does a firm maximize profit?
MC = MR
a
Maintaining or increasing market share a) can be achieved even if industry sales are flat or decreasing. b) is an infrequently used pricing objective in most industries. c) depends upon the overall growth of the total industry. d) is a profit-related objective based on price. e) is directly tied to leading an industry in product quality.
The stage of the personal selling process in which the salesperson attempts to make a favorable impression, gather information about the customer's needs and objectives, and build a rapport with the prospective customers is called
Making the presentation
a
Marginal analysis involves examining a) what happens to a firm's costs and revenues when production is changed by one unit. b) the extra revenue produced by the sale of one more product. c) the extra cost incurred by the production of one more unit. d) the difference between marginal revenue and total revenue. e) the difference between marginal cost and total cost.
Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's
Marginal revenue
c
Maria recently put her house on the market at an asking price of $260,000. She realizes, however, that in order to sell the house, she may have to use a) secondary-market pricing. b) reference pricing. c) negotiated pricing. d) price lining. e) professional pricing.
According to the material discussed in class, in addition to the three primary sales roles, salespeople are often asked to engage in?
Market research
A firm establishes which of the following pricing objectives to maintain or increase its product's sales in relation to total industry sales?
Market share
Suppose that the watchband department of Timex sells completed watchbands to the finished watch department. The finished watch department is charged the price it would have to pay an outside watchband manufacturer less a discount to reflect low sales and transportation costs. This method of pricing is called _______ pricing.
Market-based cost
What is market penetration pricing?
Market-penetration pricing is setting a low-price for a new product in order to attract a large number of buyers and a large market share
Dorothy won a hot-air balloon ride and dinner for two for being the top revenue-producing mortgage loan officer at her company for the month of October. This contest exemplifies a company's efforts at
Motivating salespeople
c
Marketers at organizations engaged in nonprice competition a) are more concerned about knowing competitors' prices than are marketers in organizations that are engaged in price competition. b) are not concerned about the prices of competing brands. c) need competitive price information to make sure that their products are priced at approximately the same level as the prices of competing brands. d) rely on customers to help them gather information regarding the prices of competing brands. e) experience high levels of price instability.
d
Marketers generally view _____ as the minimum price a product can be sold for. a) fixed costs b) variable costs c) profits d) costs e) moderate losses
c
Marketers have no flexibility in setting prices under conditions of a) a monopoly. b) an oligopoly. c) perfect competition. d) monopolistic competition. e) no competition.
b
Marketers improve their ability to establish prices appropriately when a) there is nonprice competition. b) they know prices charged for competing brands. c) their products are of better quality than the competition's. d) the main objective is image building. e) using psychological pricing.
b
Marketers must take steps to make sure that the pricing objectives they set are consistent with the organization's ___________ objectives and ___________ objectives. a) advertising; marketing b) overall; marketing c) marketing; promotional d) overall; promotional e) overall; revenue
Why are marketing intermediaries needed
Marketing intermediaries facilitate exchange efficiencies, often reducing the costs of exchanges by performing certain services and functions because intermediaries serve both producers and Buyer, they reduce the total number of transactions that otherwise MS Distribution of business products differs from that of consumer products in the types of channels use a direct distribution channel is most common in business marketing
a
Markum Industries determines that for its air compressors the following results are achieved at a price of $250: total costs = $250,000; variable costs per unit = $100; fixed costs = $175,000. Given these figures, Markum would break even at ___________ units. a) 1,167 b) 1,000 c) 1,750 d) 2,500 e) 700
a
Markup is measured either as a percentage of _____ or a percentage of _____. a) selling price; cost b) cost; profit c) revenue; contribution margin d) resources used; cost e) demand; competition
Consumer jury
Matt was in a group considered to be actual or potential purchasers of a new mountain bike produced by specialist sports. He and the other consumers were shown three different advertisements and asked to judge several dimensions of each one. Matt was part of an
Selection of Pricing Strategy: Differential Pricing
Means charging different prices to different buyers for the same quality and quantity of a product Single price has many advantages, the primary of which is simplicity Challenge is that it may leave some people out of the market or causes the org to lose some revenue bc it could have charged more for some people (a solution is differential pricing) Customers who are paying lower prices must not be able to resell the product to those paying a higher price A segmented market must exist each with different price sensitivities There are several types of differential pricing: negotiated pricing, secondary-market discounting, periodic discounting, and random discounting
While anticipating objections and countering them before they are asked is a good idea, one negative consequence of doing so is that the salesperson may
Mention objections the customer had not thought of
When Levi's agrees to pay JC Penney's money for providing television advertising and Sunday newspaper sales fliers emphasizing Levi's jeans, Levi's is offering
Merchandise allowance
trade sales promotion methods
Methods intended to persuade wholesalers and retailers to carry a producer's products and market them aggressively
Kerry and the other salesforce members are best described as a ______________ sales force
Missionary
Assisting the producer's customers in selling to those customers is the major purpose of which type of salesperson?
Missionary salesperson
Daphne King of Cleborn Pharmaceuticals tells a sales management class at the state university that her job is to call on doctors and explain the benefits of new prescription drugs that her firm develops. Daphne would call herself a(n)
Missionary salesperson
Jin Xiao, a trained engineer, is a salesperson for a chemical manufacturer. He provides current customers with advice about a product's characteristics and applications. He is a(n)
Missionary salesperson
b
Monopolies usually keep their prices at a level that generate a reasonable, but not excessive, return primarily because a) they want to avoid new competitors entering their market. b) they want to avoid government regulations on their pricing. c) they try to satisfy the demands of value-conscious consumers. d) firms can increase market share more rapidly this way. e) customers will discontinue use of these products if prices rise.
Stage For Establishing Prices: Assessment of the Target Market's Evaluation of Price (2)
Must assess target market's evaluation of price Price is important but it depends on the type of product, the type of target markets, and the purchase situation That is, price isn't end all, be all Ex. Purchase situation-> pay much more at movies for concessions and you wouldn't do it at most other places Many companies are focusing on value (bc consumers are shopping more selectively and looking for less expensive items) Value combines a product's price and quality attributes-helps customer differentiate among competing brands Highly desirable attributes, ex. organic milk, can command higher prices Low prices and high quality companies, like Target have altered perceptions of quality & price
Recruiting and selection of salespeople should include enough steps to yield the information needed to make accurate selection decisions. However, the stages of the process should be sequenced so that the more expensive steps are
Near the end
Stage For Establishing Prices: Selection of Pricing Strategy (5)
Need to select a pricing strategy; an approach or course of action designed to achieve pricing and marketing objectives This helps marketers solve the problem of setting prices
Which of the following is one of the three primary roles for a salesperson as discussed in class?
New customer development.
Zack Freedman is an experienced salesperson who has worked for the same company for 20 years. When he is informed that he must attend a training seminar the following Tuesday, he believes it will most likely be about
New product information
Differential Pricing: Negotiated Pricing
Occurs when the final price is established through bargaining between seller and customer happens often with homes, cars, and used equip etc.
d
Odd-even pricing is a) a cost-based strategy. b) competition-based. c) a rarely used technique. d) a psychological pricing strategy. e) a form of unethical pricing.
Paid personal communication that attempts to inform and persuade customers to purchase products in an exchange situation is called
Personal selling
______________ is a purchase situation involving a paid-for communication between two people in an attempt to influence each other?
Personal selling
During the ________ stage of the personal selling process, it is important to learn as much about the customer as time and money allow you to do?
Pre approach
The McKay 66 is a list of questions every salesperson at the McKay envelope company was expected to know about his or her customers. Obviously the __________ stage of the personal selling process is important at this company?
Pre approach
A salesperson finds and analyzes information about each prospect's specific product needs, current use of and feeling about brands, and personal characteristics during
Preapproach
Before contacting prospects, a salesperson for an industrial cleaning equipment company analyzes information about the prospects' product needs, feelings about brands, and personal characteristics. This process is called
Preapproach
Garrett Almar tells a fellow buyer at Robins Wholesale Parts that the last salesperson who called on him before lunch was a real loser: "He has done a poor job of ___________. He didn't even know what brands we carry or what types of retailers we service!"
Preapproach
Sean selects several motorcycle stores who are not currently his customers. He then obtains and analyzes information about the current brands of motorcycle accessories they stock, their sales trends, and credit history. Sean is engaged in which of the following?
Preapproach
Tim has just finished compiling a list of potential customers and evaluating their ability, willingness, and authority to buy. He knows his next step in the personal selling process is to
Preapproach
At one time, Wheaties offered two free golf balls with the purchase of a twin pack of Wheaties cereal featuring Tiger Woods. This is an example of a
Premium
The types of prices that appear least often in ads are ___________ prices.
Premium
To increase sales of Chex cereals, Ralston Purina offered a free pound of bananas to customers who bought the large-size box. This form of sales promotion is called a
Premium
___________ are items offered free or at minimal cost as a bonus for purchasing a product.
Premium
Breyer's produces a variety of ice cream flavors and lines of varying qualities. The higher quality ice cream varieties are priced higher than the basic ones. Breyer's is using ___ to price its ice cream
Premium pricing
e
Premium-priced products are usually marketed through a) complex marketing channels. b) intensive or selective distribution. c) exclusive or intensive distribution. d) exclusive distribution only. e) selective or exclusive distribution.
___________ are items offered free or at minimal cost as a bonus for purchasing a product.
Premiums
The __________ is the heart of the personal selling process and the object is to convert a prospect into a customer?
Presentation
When using the consultative approach to selling, the first part of the _____________ stage of the personal selling process involves asking a series of questions so that the salesperson can understand the customer's needs?
Presentation
When using the consultative approach to selling, the second part of the _____________ stage of the personal selling process involves developing a proposed solution to the customers need?
Presentation
French Quarter Inns drops price...This is an indication that suites at this hotel are apparently an example of a(n) ___________ product.
Prestige
Which of the following is not a major factor for firms making price decisions?
Previous sales
e
Price leaders, comparison discounting, and special-event pricing are applications of a) psychological pricing. b) professional pricing. c) product-line pricing. d) bait-and-switch. e) promotional pricing.
A danger associated with engaging in price competition is that competitors can also change prices quickly and aggressively, which can result in a(n) _____ that will be harmful to both companies.
Price war
Product Line Pricing: Bait Pricing
Pricing an item in a product line low with the intention o selling a higher priced item in the line This is an acceptable strategy so long as retailer has enough quantities of the advertised product Bait and switch is similar but retailers have no intention of selling the bait product, they use the low price to bring in customers and then sell them higher priced products Considered unethical and is illegal in some states
Selection of a Basis for Pricing: Demand Based Pricing
Pricing based on the level of demand for the product Customers pay a higher price when demand for the product is strong and a lower price when demand is weak ex. hotels, airlines, cell minutes use this Another method is to sell a certain number of tickets at a set price then increase the price to reflect the demand for popular shows The effectiveness of this method depends on the marketer's ability to estimate demand accurately Does place firms in a better position to reach higher profit levels (as compared with cost based pricing)
Selection of a Basis for Pricing: Competition Based Pricing
Pricing is primarily influenced by competitor's prices Organization considers costs to be secondary to competitor's prices Important method when products are pretty homogeneous and the org is serving markets in which price is a key purchase consideration This method may necessitate frequent price adjustments ex. competitive airline routes use this
Psychological Pricing: Customary Pricing
Pricing on the basis of tradition ex. candy bars selling at a consistent rate
Psychological Pricing: Everyday Low Prices
Pricing products low on a consistent basis as opposed to setting higher prices and frequently discounting them Walmart does this Problem: Marketers have "trained" consumers to expect and seek out deeply discounted prices. So failure to provide deep discounts makes EDLP hard to believe and easy to see as a marketing gimmick
a
Pricing strategies and methods a) help direct and structure the selection of a final price. b) are the last decisions made for a new product. c) are the same for all of a company's products. d) are the most important decisions made for a product. e) require limited planning on the part of management.
Product Line Pricing: Premium Pricing
Pricing the highest quality or most versatile products higher than other models in the product line Ex. Corvette ZR1 which is more powerful and pricier than their other models If this strategy is used, a significant portion of their profits may come from these products
What is product line pricing?
Product-line pricing is the process of setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices. Setting prices across an entire product line. •For example, think of a mattress compan: Stearns and Foster: •Traditional mattress •Estate Mattress •Lux Estate Mattress/Luxury latex mattress/ Silver Drum Mattress, etc. You may charge a base price for a basic mattress, the next product up might have more features or be a better quality - it would be a higher price, and so on throughout the line.
What is allowance pricing?
Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's product in some way. Allowance are another type of reduction from the list price. For example, trade-in-allowances are price reductions given for turning in al old item when buying a new one. goods
cents-off offers
Promotions that allow buyers to pay less than the regular price to encourage purchase
If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the
Quantity demanded goes down
Temporary price reductions through sales, rebates, and special discounts are often used to
Raise cash quickly
A manager at JC Penney discovers that Sears has reduced the price of its children's Levi's from $31.99 to $24.99, according to an advertisement in the Sunday newspaper. She immediately phones her store and instructs the salesperson on duty to put a sign up next to their children's Levi's that reads, "SALE: $24.99." This is an example of what pricing strategy?
Random discounting
Sales objectives for individual salespeople can be stated in several ways. Which of the following would least likely be used for stating an individual salesperson's goal?
Ratio of profits relative to number of sales calls
___________ are offers of cash to customers who purchase a specific product, and ___________ are offers of cash to customers who purchase a specific quantity of a specific product.
Rebates; money refunds
Ray's evaluation of her performance for the prior year led to his conclusion that she lacked key product information. At their upcoming session, he will most likely do which of the following?
Recommend that she attend a training program
Ray Singh is preparing to evaluate one of his sales representatives, Julie Hill. His evaluation of her performance for the prior year led to his conclusion that she lacked key product information. At their upcoming session, he will most likely do which of the following?
Recommend that she attend a training program.
e
Reductions for transportation and other costs related to the physical distance between buyer and seller are known as a) base-point pricing. b) freight absorption pricing. c) price zoning. d) location pricing. e) geographic pricing.
d
Reference pricing is a) listing the manufacturer's suggested retail price on the price tag along with the store's lower price. b) mentioning the price that other retailers charge for the same product on the display for the product. c) using a consumer's internal perceptions of what the appropriate price should be to help price a firm's products. d) pricing a product at a moderate level and positioning it next to a more expensive model or brand. e) using prices in advertising so that customers will have a point of reference when they come to the retail facility.
A Macy's manager designs the casual clothing department such that one of Macy's private label pairs of jeans, priced at $24.99, is positioned next to a national brand of jeans, such as Levis, priced at $39.99What is the manager attempting to accomplish?
Reference pricing strategy
Which of the following involves building mutually beneficial long-term associations with a customer usually a business customer through regular communications over prolonged periods of time.
Relationship selling
Which of the following involves building mutually beneficial long-term associations with a customer⎯usually a business customer⎯through regular communications over prolonged periods of time?
Relationship selling
Which of the following involves building mutually beneficial long-term associations with a customer—usually a business customer—through regular communications over prolonged periods of time.
Relationships selling
What is Online Retailing:
Retailing that makes products available to buyers through computer connections. Most retailers have an Internet site. Hard to find items can usually be found somewhere on eBay. Online buying will escalate due to increases in computer technology and consumers lack of time to shop. Security is still the number 1 reason why consumers won't buy online.
Encouraging product trial
Retro 64 distributes free downloadable versions of its computer game for a very short time. These efforts have a primary promotional objective of
Which of the following products is most likely to involve personal selling?
Riding lawn mowers
e
Rob Johnson orders 16 dozen fishing lures from Strike Right for $375. When he gets the invoice, he is furious that $25 in freight charges has been tacked onto his bill because he thought the price included freight costs. Rob should have been certain that the order terms were a) F.O.B. origin. b) F.O.B. factory. c) C.O.D. d) 2/10, n/30. e) F.O.B. destination.
Which of the following prohibits price discrimination that lessens competition among wholesalers and retailers?
Robinson-Patman Act
e
Safe Auto advertises its low-cost automobile insurance as "minimum coverage for minimum budgets." Safe Auto is engaging in a) non-price competition. b) demand-based pricing. c) prestige pricing. d) price differentiation. e) price competition.
Currently, Sean's compensation is based on the ________ plan, however he is considering changing to the _________ plan.
Salary plus commission; straight commission
demonstrations
Sales promotion methods a manufacturer uses temporarily to encourage trial use and purchase of a product or to show how a product works
consumer contests
Sales promotion methods in which individuals compete for prizes based on their analytical or creative skills
consumer games
Sales promotion methods in which individuals compete for prizes based primarily on chance
rebates
Sales promotion techniques in which a consumer receives a specified amount of money for making a single product purchase
consumer sales promotion methods
Sales promotion techniques that encourage consumers to patronize specific stores or try particular products
money refunds
Sales promotion techniques that offer consumers a specified amount of money when they mail in a proof of purchase, usually for multiple product purchases
support personnel
Sales staff members who facilitate selling but usually are not involved solely with making sales
The major advantage of ____________ is that it allows salespeople to spend less time doing paperwork and more time in front of customers?
Salesforce automation
trade salespeople
Salespeople involved mainly in helping a producer's customers promote a product
Order Takers (17)
Salespeople who primarily seek repeat sales
order takers
Salespeople who primarily seek repeat sales
Order Getters (17)
Salespeople who sell to new customers and increase sales to current customers
order getters
Salespeople who sell to new customers and increase sales to current customers
Realizing that her firm's sales promotion budget was small and cut by 30 percent for the coming year, Stacey Baronas rules out ___________ as playing a role in her sales promotion plan.
Samples
free samples
Samples of a product given out to encourage trial and purchase
When a manufacturer rewards retailers based on the number of pieces moved through their scanners, this sales promotion method is known as a
Scan-back allowance
Cost Based Pricing: Cost-Plus Pricing
Seller's costs are determined (during or after a project is completed) and then a specified dollar amount or % of the cost is added to the seller's cost to establish a price This is a good method when costs are difficult to predict ex. custom made goods Problem: overhead (a cost) may be hard to determine
b
Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing a) product competition. b) nonprice competition. c) brand differentiation. d) price competition. e) competitor differentiation.
What is segmented pricing?
Selling a product or service at two or more prices, even though the difference in prices in not based on differences in costs. Segmented pricing takes several forms:
Pricing Objectives:Cash Flow
Set price levels to encourage rapid sales Allows recovery of cash as quickly as possible May be useful, but it oversimplifies the contribution of price to profits If this results in high price sets, then lower priced competitors may take market share
Pricing Objectives:: Product Quality
Set prices to recover research and development expenditures and establish a high quality image Normally a high price; need to cover R&D When both product quality and market share exist for a firm, its a good indicator of profitability
Product Line Pricing: Price Lining
Setting a limited number of prices for selected groups or lines of merchandise ex. have various styles of similar quality shirts sell for $15 and higher quality lines of shirts sell at $22 This method simplifies customers' decision making by holding constant one key variable in the final selection of style and brand within a line Basic assumption is that demand is inelastic for various groups or sets Demand curve looks like a series of steps ex. 85, 55, and 35 dollar products Subscription services often use this method
What is EveryDay Low Prices (EDLP)?
Setting a low price for products on a consistent basis.
Selection of Pricing Strategy: New Product Pricing
Setting base price for a new product is vital Base price is easily adjusted (so long as no govt. price controls) an its establishment is is one of the most fundamental decisions in the marketing mix
Differential Pricing: Secondary Market Pricing
Setting one price for the primary target market and a different price for another market Price in the secondary market is usually lower (unless costs for serving this market are higher than normal) Good for isolated markets, off peak times, etc. Ex. Matinee movie discounts, textbooks and pharmaceuticals are sold for less in other countries than in US
A salesperson should try to close the sale
Several times during the sales presentation
The ___________ prohibits price fixing among firms in an industry.
Sherman Antitrust Act
Which factor is least likely to affect pricing decisions?
Shifting stock values
As a promotional strategy, using coupons strives to achieve all of the following except
Show how a product is used
c
Showing a product's price along with its previous price, the price of a competing brand, or the price at another retail outlet is called a) competition-based pricing. b) reference pricing. c) comparison discounting. d) captive pricing. e) psychological pricing.
point-of-purchase (POP) materials
Signs, window displays, display racks, and similar devices used to attract customers
Which of the following acts does not directly affect pricing decisions?
Simpson-Marshall Act
b
Sony management decided to use skimming as a pricing strategy for its newest line of high-definition television (HDTV) sets. It should be aware that this strategy does not a) generate capital to cover research and development costs. b) discourage competitors from entering the market. c) provide flexibility in the introductory base price. d) protect the firm from covering costs if prices are set too low. e) reduce the stress that may be placed on the firm's production capabilities.
When marginal cost is equal to marginal revenue, the firm should
Stop producing additional units to maximize profits
What is a Traditional Specialty Retailers?
Stores that carry a narrow product mix with deep product lines. These stores may also be referred to as single line retailers and limited line retailers. The products most commonly found in a traditional specialty store are apparel, jewelry, sporting goods, fabric, computers, and pet supplies. Examples of this type of specialty store are The Limited, Hickory Farms, the Gap, and Footlocker.
What are Hypermarkets?
Stores that combine supermarket and discount shopping in one location. Larger than superstores, hypermarkets vary in size from 225,000 to 325,000 square feet. They usually offer 45,000-60,000 different types of low-priced products. They commonly allocate 40-50% of their space to grocery products and the remainder goes to general merchandise, including, athletic shoes, designer jeans, appliances, cameras, toys, hardware, jewelry, and automotive supplies.
Jose Suarez has been hired as sales manager at a new firm and is trying to come up with a sales force compensation method. He would like to have selling expenses relate directly to sales resources, an aggressive sales force, and minimization of nonselling tasks. What compensation method(s) would best fulfill his requirements?
Straight commission
Jose would like to have selling expenses relate directly to sales resources, an aggressive sales force, and minimization of nonselling tasks. What compensation method(s) would best fulfill his requirements?
Straight commission
Which of the sales force compensation methods is easy to administer, yields more predictable selling expenses, and provides sales managers with a large degree of control over salespeople?
Straight salary
Which of the following is least likely to be directly involved in actually making sales?
Support sales personnel
Which of the following types of salespeople facilitate the selling function but are not involved solely with making sales?
Support salespeople
technical salespeople
Support salespeople who give technical assistance to a firm's current customers
Missionary Salespeople (17)
Support salespeople, usually employed by a manufacturer, who assist the producer's customers in selling to their own customers
missionary salespeople
Support salespeople, usually employed by a manufacturer, who assist the producer's customers in selling to their own customers
e
Suppose Tommy Hilfiger is introducing a new line of men's ties. The designer believes that the target market for these ties comprises men who are very status-conscious. In keeping with this assessment, department stores selling the ties should a) charge a price based on their cost. b) charge prices consistent with their existing ties. c) discount the ties. d) negotiate the price with individual tie shoppers. e) use price symbolically.
a
Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Caterpillar is producing at the ___________ point. a) breakeven b) marginal revenue less than marginal cost c) profit margin d) competitive price e) profit maximizing
d
Suppose that the frozen foods division of Swanson purchases food trays and boxes from the packaging division. The form of pricing used to charge the frozen foods division is called a) zone pricing. b) base-point pricing. c) business-unit pricing. d) transfer pricing. e) price discrimination.
e
Suppose that the watchband department of Timex sells completed watchbands to the finished watch department. The finished watch department is charged the price it would have to pay an outside watchband manufacturer less a discount to reflect low sales and transportation costs. This method of pricing is called _______ pricing. a) zone b) actual full cost c) standard full cost d) cost plus investment e) market-based cost
On a break between classes, Kelley Macon selects two magazines and mails the Publishers Clearing House entry form. She doubts that she will win $10 million, but she never passes up a chance to participate in a
Sweepstakes
In this stage: The company introduces the product on a limited basis to measure the extent to which potential customers will actually buy it.
Test marketing
Managing Sales Territories
The effectiveness of a sales force which must travel to its customers depends on sales management's decisions regarding sales territories.
e
The fact that a gas station in Texas pays less for fuel than a gas station in Maine from a producer in Louisiana suggests that refineries are using which of the following pricing methods? a) Price differentiation b) Base-point pricing c) Freight absorption pricing d) Transfer pricing e) Zone pricing
d
The fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ___________ pricing. a) price-line b) promotional c) professional d) differential e) psychological
d
The federal government often uses _____ pricing when it grants defense contracts. a) markup b) differential c) breakeven d) cost-plus e) competition-based
Which of the following is not a reason why the proportion of promotional dollars spent on sales promotion has increased in recent years?
The greater emphasis on improving long term performance has resulted in an increased use of sales promotion methods
Which of the following is not a reason why the proportion of promotional dollars spent on sales promotion has increased in recent years?
The greater emphasis on improving long-term performance has resulted in an increased use of sales promotion methods.
What is Telemarketing:
The performance of marketing-related activities by phone. Some companies cold call consumers, while others have a prescreened calling list. Telemarketing can help generate sales leads, improve customer service, speed up payment on past due accounts, raise funds for non-profit organizations and gather marketing data. Telemarketing is usually joined with other marketing methods and is used by retailers and non-retailers alike
At what point does a firm maximize profit?
The point at which marginal cost equals marginal revenue
closing
The stage in the personal selling process when the salesperson asks the prospect to buy the product
c
To determine the breakeven point in units, divide the fixed costs by a) total costs. b) variable costs time price. c) price minus variable costs. d) price per unit. e) total revenue minus fixed costs.
a
To gain market share, when Hyundai first entered the U.S. car market it did so with a comparatively low price strategy. One of the negative side effects of making this pricing decision is a) a negative impact on consumers' perceptions of quality. b) competitive matching. c) a high return on investment level affecting tax balances owed. d) poor survival chances. e) higher developmental costs.
Premium
To increase sales of Chex cereal, Ralston Purina offered a free pound of bananas to customers who bought the large size box. This form of sales promotion is called a
b
Which of the following would be used in setting the price of a new product if considerable competition is expected? a) Psychological pricing b) Penetration pricing c) Odd-even pricing d) Price skimming e) Prestige pricing
c
To maintain market share and revenue in an increasingly price-sensitive market, companies have focused on quality, used labor-saving technologies, and used efficient manufacturing processes. These tactics have provided gains in productivity that have translated into ___________ for the consumer. a) higher costs for the company and higher prices b) higher costs for the company and lower prices c) lower costs for the company and lower prices d) lower costs for the company and higher prices e) no change in the costs for either the company or
What is the overall role of promotion?
To stimulate product demand.
What is retailing?
Transactions in which ultimate consumers are the buyers. It includes all transactions that are being used for personal and household purposes
When Cadillac buys headlights from Delco (both of which are divisions of General Motors), ___________ pricing occurs.
Transfer
Suppose that the frozen foods division of Swanson purchases food trays and boxes from the packaging division. The form of pricing used to charge the frozen foods division is called
Transfer pricing
During his presentation to Mrs. French about a high-end gourmet oven, Brian asks, "Would you prefer black or stainless steel?" This is an example of a
Trial close
New products may also arise from sources outside the firm, customers, competitors, consultants agencies and private research organizations
True
`A product can be viewed as new when it is brought to one or more markets from another market
True
A company trying to position itself as value oriented should not
Use premium pricing for its products
Tommy Hilfiger, in keeping with this assessment, department stores selling the ties should
Use price symbolically
According to your instructor, the first thing to do when a customer asks a difficult question during the sales presentation is to?
Validate the objection
Creating a favorable impression and developing rapport with prospective customers is a critical part of the ______ step of personal selling.
approach
d
Westin Inc. has an objective of achieving a 25 percent return from its overall sales. This is an example of a ______ pricing objective. a) market share b) cash flow c) return on investment d) profit e) status quo
c
What a price means or what it communicates to customers is called a) reference. b) response. c) interpretation. d) internalization. e) signaling.
c
What does the demand curve for a prestige product look like? a) It is a straight line where the quantity sold continues to increase as the price of each product increases. b) It is a curve where the highest and the lowest prices yield the greatest quantity sold and mid-range prices produce the fewest sales. c) It forms a curve where the greatest quantity sold comes at a medium price and the quantities fall as the price increases or decreases. d) It forms a straight vertical line because of the prestige of the product, and quantity sold will remain stable regardless of the price. e) It slopes from left to right at a very mild slope; that is, as quantity increases, price decreases slowly.
c
What equation shows organizations the relationship between price and profit? a) Total Variable Costs + Total Fixed Costs = Sales - Profit b) Price = Profit per Item × Number of Units Sold c) (Price × Quantity Sold) - Total Costs = Profits d) (Price - Profits) × Total Costs = Sales e) Total Costs = (Price × Quantity Sold) - Profits
Marginal analysis involves examining
What happens to a firm's costs and revenues when production is changed by one unit
d
What type of pricing objective would an organization use if it were in a favorable position and desired nothing more? a) Return on investment b) Cash flow c) Profit d) Status quo e) Survival
c
What type of pricing strategy is used in a situation where demand for a product is price inelastic and the seller has an ethical responsibility not to overcharge the client? a) Price lining b) Prestige pricing c) Professional pricing d) Customary pricing e) Price skimming
c
When Cadillac buys headlights from Delco (both of which are divisions of General Motors), ___________ pricing occurs. a) base-point b) zone c) transfer d) uniform geographic e) matrix
e
When Gabriella logs on to Dell's website, she sees a notebook model priced well below $1,000. As she continues through the site to view the other options, she realizes the first one she saw was the cheapest model available, but she of course wants more features. Dell is utilizing a) bait and switch. b) price lining. c) captive pricing. d) penetration pricing. e) bait pricing.
b
When Mia and Shane are planning their honeymoon, their travel agent tells them that if they buy a special package, their trip to Paris will include meals, tickets to the theater, and a rental car in addition to airfare and a hotel. This is an example of the use of a) multiple-unit pricing. b) bundle pricing. c) prestige pricing. d) price lining. e) price packaging.
d
When Sharp first introduced its line of graphing calculators, it set the price quite high; it has lowered the price as competitors have entered the market. The pricing strategy initially used by Sharp is called a) customary pricing. b) odd-even pricing. c) penetration pricing. d) price skimming. e) prestige pricing.
d
When a company adjusts price levels so that it can increase sales volume to levels that match the organization's expenses, it is said to employ a _________ objective. a) market share b) cash flow c) return on investment d) survival e) profit
e
When a company attempts to influence a consumer's perception of price to make a product's price more attractive and reduce "sticker shock," it is using a ______ pricing strategy. a) competition-based b) professional c) promotional d) comparison e) psychological
a
When a company prices one item in a line low with the intention of selling a higher-priced item in the same line, it is using a) bait pricing. b) a price leader. c) penetration pricing. d) price lining. e) captive pricing.
e
When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on a) internal reference prices. b) symbol prices. c) high value products. d) discounted reference prices. e) external reference prices.
According to your instructor what is it that causes salespeople to be so annoying, especially for postponable purchases such as used cars?
When a salesperson is on 100% commission, they have nothing to lose by trying to convince you to buy the product, even after you have indicated you are not interested.
d
When a seller's costs are usually determined during or after a product is made and then a specified percentage or dollar amount is added to the cost to establish a price, an organization is using _____ pricing. a) markup b) demand-based c) differential d) cost-plus e) expensed-based
A contractual vms
When channel members are linked by legal agreements that specify each members rights and responsibilities, ______ exists.
d
When consumers are making do with less expensive products and shopping more selectively, manufacturers and retailers must focus on the ___________ of their products. a) price b) quality c) availability d) value e) image
b
When determining markup as a percentage of cost, divide the markup amount by a) price. b) cost. c) quantity. d) revenue. e) 100.
b
When establishing prices, a marketer's first step is to a) determine demand. b) develop pricing objectives. c) select a pricing policy. d) evaluate competitors' prices. e) determine a pricing method.
d
When marketers at Consolidated Mustard Company tried to determine demand for their product, they found that at 50 cents, consumers wanted 2,000 jars; at $1.00, they wanted 6,000 jars; and at $1.50, they wanted 4,000 jars. What can Consolidated conclude? a) Consolidated did poor market demand research. b) Consolidated has an elastic product. c) Consolidated has an inelastic product. d) Consolidated mustard is a prestige good. e) Consolidated mustard has a normal demand curve.
a
When marketers emphasize price as an issue and match or beat the prices of other companies, they are using a) price competition. b) nonprice competition. c) comparative pricing strategies. d) demand-based pricing. e) supply-based pricing.
Which of the following statements about price elasticity is false?
When price is raised on a product that has an inelastic demand, then total revenue will decrease
Which of the following statements about price elasticity is false?
When price is raised on a product that has an inelastic demand, then total revenue will decrease.
a
When products in an industry are relatively homogeneous and price is a key purchase consideration, a) competition-based pricing becomes more important. b) demand-based pricing dominates pricing decisions. c) firms tend to use secondary-market pricing. d) cost-based methods like markup pricing are dominant. e) customary pricing is often used.
e
Which factor is least likely to affect pricing decisions? a) Competitive prices b) Legal and regulatory issues c) Organizational and marketing objectives d) Customers' interpretation and response e) Shifting stock values
e
Which of the following acts does not directly affect pricing decisions? a) Sherman Antitrust Act b) Federal Trade Commission Act c) Wheeler-Lea Act d) Clayton Act e) Simpson-Marshall Act
e
Which of the following is a requirement for setting pricing objectives? a) The objectives should be short-term oriented. b) There should be only one pricing objective. c) An evaluation of competitors' prices should be made. d) The cost structure should be identified. e) The objectives should be explicitly stated.
e
Which of the following is not a discount provided to business customers? a) Trade b) Cumulative c) Cash d) Seasonal e) Differentiated
c
Which of the following is not a major factor for firms making price decisions? a) Costs b) Competition c) Previous sales d) Channel member expectations e) Legal and regulatory issues
a
Which of the following is not a method used to determine transfer prices? a) Discounted standard cost b) Actual full cost c) Standard full cost d) Cost plus investment e) Market-based cost
News release
Which of the following is the most commonly used type of publicity based public relations tool
b
Which of the following is the most flexible variable in the marketing mix? a) Product b) Price c) Advertising d) Personal selling e) Distribution
c
Which of the following pricing objectives sets prices to recover cash as quickly as possible? a) Market share b) Profit c) Cash flow d) Return on investment e) Product quality
a
Which of the following pricing strategies often results in a retailer losing money on the product? a) Price leader b) Psychological discounting c) Penetration pricing d) Special-event pricing e) Ethical pricing
b
Which of the following products is most likely to have an inverted C-shaped demand curve? a) Levi jeans b) Giorgio perfume c) Maxwell House coffee d) Pillsbury cake mix e) Ford Taurus
b
Which of the following products is most likely to involve personal selling? a) Blenders b) Riding lawn mowers c) Fresh peaches d) Picture frames e) Footballs
b
Which of the following prohibits price discrimination that lessens competition among wholesalers and retailers? a) Sherman Antitrust Act b) Robinson-Patman Act c) Lanham Trademark Act d) Federal Trade Commission Act e) Wheeler-Lea Act
a
Which of the following statements about markup pricing is correct? a) The use of similar markups reduces price competition. b) Markup pricing is inconvenient to use. c) Markup pricing results in a high price when demand is high and a low price when demand is low. d) Markup pricing is a demand-based pricing method. e) Using markups makes pricing a time-consuming, difficult process.
a
Which of the following statements about nonprice competition is false? a) Companies that use nonprice competition do not need to keep track of their competitor's prices. b) A company must be able to distinguish its brand through some unique feature in order to successfully engage in nonprice competition. c) A firm using nonprice competition can build loyalty to both its company and its products. d) When using nonprice competition, a company should promote the distinguishing characteristics of its brand. e) Buyers must view the distinguishing characteristics of a product offered through nonprice competition as being important.
d
Which of the following statements about price elasticity is false? a) Steak is an example of a product that has an elastic demand for most people, because when price goes up quantity demanded goes down proportionally more. b) Elasticity of demand is the relative responsiveness of a change in quantity demanded to changes in price. c) If marketers can determine price elasticity, then setting prices at optimum levels is much easier. d) When price is raised on a product that has an inelastic demand, then total revenue will decrease. e) A product like electricity has an inelastic demand.
Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coke, to name a few. These are examples of
line extensions
a
Which pricing objective de-emphasizes price and can lead to a climate of nonprice competition in an industry? a) Status quo b) Return on investment c) Market share d) Survival e) Cash flow
a
Which type of pricing objective can reduce a firm's risk by helping to stabilize demand for its products? a) Status quo b) Market share c) Survival d) Cash flow e) Return on investment
Which of the following are personal informal exchanges of communication that customers share with one another about products, brands, and companies?
Word-of- mouth communication.
coupons
Written price reductions used to encourage consumers to buy a specific product
What is customer services
______ includes human or mechanical efforts or activities a company provides that add value to a product. Examples of customer services include delivery and installation, financing arrangements, customer training, warranties and guarantees, repairs, layaway plans, convenient hours of operation, adequate parking and information through toll-free numbers.
A __________ is a gift to a retailer who purchases a specified quantity of merchandise. a) dealer loader b) premium c) dealer listing d) merchandise allowance e) count and recount
a
A sale that advertised prices "up to 65 percent off" the original price uses a) tensile pricing. b) random discounting. c) periodic discounting. d) bait pricing. e) psychological pricing.
a
A sales career can offer all of the following except a a) structured, inflexible workday. b) high income. c) great deal of freedom. d) high level of training. e) high level of job satisfaction.
a
A salesperson will be better able to determine the prospect's specific needs by a) listening carefully to questions and comments and watching reactions during the sales presentation. b) waiting until after the sale to see how the client is enjoying the use of the product. c) doing extensive research before the approach and making the sales presentation without adjustment. d) using trial closings throughout the sales presentation. e) making a very thorough and detailed sales presentation about the products and services being offered
a
A salesperson will be better able to determine the prospect's specific needs by a) listening carefully to questions and comments and watching reactions during the sales presentation. b) waiting until after the sale to see how the client is enjoying the use of the product. c) doing extensive research before the approach and making the sales presentation without adjustment. d) using trial closings throughout the sales presentation. e) making a very thorough and detailed sales presentation about the products and services being offered.
a
Any marketing tactic used to stimulate wholesalers and retailers to carry a producer's products and market those products more aggressively is a a) trade sales promotion method. b) point-of-purchase material. c) consumer sales promotion method. d) merchandise allowance. e) dealer loader.
a
As a promotional strategy, using coupons strives to achieve all of the following except a) show how a product is used. b) increase sales volume quickly. c) introduce new package sizes. d) prompt trial usage of a new product. e) attract repeat users.
a
Competition-based pricing is a) used when costs and revenues are secondary to competitors' prices. b) not useful as a method of increasing market share. c) not useful if the competing products are homogeneous. d) not able to increase sales. e) used when competing products are heterogeneous.
a
Doug Browton travels around to various established customers to see what new office supplies they need. His customers have come to depend on him to check their supplies. Doug is a(n) a) field order taker. b) current customer order getter. c) missionary salesperson. d) inside order taker. e) trade salesperson.
a
During the personal selling process, a salesperson, if possible, should handle objections when a) they arise. b) the salesperson begins the trial close. c) the sales presentation is approximately half completed. d) when the customer appears to be unhappy or agitated. e) when the salesperson begins the sales presentation.
a
Executives in Japan decided to price Lexus luxury cars in the United States at $55,000 while pricing them at $66,000 in their own country. This is an example of a) secondary-market pricing. b) price skimming. c) bait pricing. d) prestige pricing. e) random discounting.
a
For customers, value is a function of the product's a) quality attributes. b) price. c) price and durability. d) quality and functional attributes. e) quality relative to the quality of competing brands.
a
In designing sales territories, a sales manager considers several major factors. The territories must be constructed so that sales potential can be measured; the shape of the territories should facilitate salespeople's activities to provide the best possible coverage of customers; and a) territories should be designed to minimize selling costs. b) all territories should be of similar size. c) the territorial pattern should consist of concentric circles. d) the density of potential customers should be minimized. e) the distribution of customers should be relatively equal.
a
In recent years the proportion of promotional dollars spent on sales promotion has a) increased relative to advertising. b) remained constant. c) declined slightly, and the proportion spent on advertising has increased. d) declined slightly, and the proportion spent on advertising has declined as well. e) increased, and the proportion spent on advertising has risen as well.
a
Jana works for Hormel Foods and she frequently sets up special displays and distributes samples of Hormel products to customers in supermarkets. Jana would best be classified as a(n) a) trade salesperson. b) technical salesperson. c) inside order taker. d) field order taker. e) missionary salesperson.
a
Jin Xiao, a trained engineer, is a salesperson for a chemical manufacturer. He provides current customers with advice about a product's characteristics and applications. He is a(n) a) missionary salesperson. b) trade salesperson. c) field order taker. d) inside order taker. e) technical salesperson.
a
Maintaining or increasing market share a) can be achieved even if industry sales are flat or decreasing. b) is an infrequently used pricing objective in most industries. c) depends upon the overall growth of the total industry. d) is a profit-related objective based on price. e) is directly tied to leading an industry in product quality.
a
Maria Martinez works for a cosmetics manufacturer and is responsible for ensuring that retailers have adequate quantities of products when they need them. However, she is directing much of her effort toward helping the retailers promote the products. She would be characterized as belonging to which group of salespeople? a) Trade salespeople b) Field order takers c) Advisory salespeople d) Technical salespeople e) Order getters
a
Pricing strategies and methods a) help direct and structure the selection of a final price. b) are the last decisions made for a new product. c) are the same for all of a company's products. d) are the most important decisions made for a product. e) require limited planning on the part of management.
a
Products such as light bulbs, canned soft drinks, and ice cream sandwiches are usually priced using a) multiple-unit pricing. b) reference pricing. c) price lining. d) bundle pricing. e) odd-even pricing.
a
Realizing that her firm's sales promotion budget was small and cut by 30 percent for the coming year, Stacey Baronas rules out ___________ as playing a role in her sales promotion plan. a) samples b) coupons c) point-of-purchase materials d) money refunds e) premiums
a
Sales objectives can do all of the following except a) serve as a deterrent both to salespeople and their clients. b) give the sales force direction and purpose. c) serve as a standard for evaluating salesperson performance. d) let the sales force know what is expected of them. e) help to control the sales force.
a
Sayyid's company has launched a new product line, and he is put in charge of sales. He decides his first step will be to find potential customers in the company's sales records. Sayyid is a) prospecting. b) screening. c) researching. d) pre-approaching. e) surveying.
a
The decision of Macy's to use even prices such as $60 for a Ralph Lauren Polo shirt is an application of odd-even pricing, and even prices are often used to a) give a product an upscale or exclusive image. b) show customers products are priced based on tradition. c) coordinate efforts with a promotional campaign. d) indicate prices have been cut to the last penny. e) facilitate comparison to competitors' prices.
a
To increase sales of Chex cereals, Ralston Purina offered a free pound of bananas to customers who bought the large-size box. This form of sales promotion is called a a) premium. b) coupon. c) cents-off offer. d) free sample. e) money refund.
a
Tony tells his wife, Camilla, that his last sales call of the day at DuPont was a disaster. He explains that he never really figured out what the purchasing agent was looking for. Camilla, a sales trainer for another firm, hands Tony a book on a) listening skills. b) overcoming objections. c) prospect evaluation. d) product demonstrations. e) closing.
a
When a company prices one item in a line low with the intention of selling a higher-priced item in the same line, it is using a) bait pricing. b) a price leader. c) penetration pricing. d) price lining. e) captive pricing.
a
When deciding on sales promotion methods to employ, marketers take several factors into consideration. Which factor below is unlikely to affect decisions regarding sales promotion methods? a) Type of package b) Product characteristics c) Target market characteristics d) Types of resellers e) Competitive forces in the environment
a
When products in an industry are relatively homogeneous and price is a key purchase consideration, a) competition-based pricing becomes more important. b) demand-based pricing dominates pricing decisions. c) firms tend to use secondary-market pricing. d) cost-based methods like markup pricing are dominant. e) customary pricing is often used.
a
Which of the following best characterizes the function of recruiting and selecting a sales force? a) It should be a continuous, systematic attempt to match applicants' characteristics to the firm's needs. b) It is a process that should be set up that incorporates at least two steps: an interview and a written application. c) Sources of applicants should be limited, since the recruitment process is expensive and more applicants mean greater expense. d) After interviewing applicants, the manager should attempt to find a position that can be tailored to fit applicants' qualifications. e) It should not be made from personnel in other departments in the firm, as this would necessitate training two people rather than one.
a
Which of the following is particularly appropriate for pricey high-tech business products, such as jet aircraft and medical equipment? a) Team selling b) Relationship selling c) Trade selling d) Technical selling e) Missionary selling
a
Which of the following pricing strategies often results in a retailer losing money on the product? a) Price leader b) Psychological discounting c) Penetration pricing d) Special-event pricing e) Ethical pricing
a
Which of the following statements about markup pricing is correct? a) The use of similar markups reduces price competition. b) Markup pricing is inconvenient to use. c) Markup pricing results in a high price when demand is high and a low price when demand is low. d) Markup pricing is a demand-based pricing method. e) Using markups makes pricing a time-consuming, difficult process.
a
Which pricing objective de-emphasizes price and can lead to a climate of nonprice competition in an industry? a) Status quo b) Return on investment c) Market share d) Survival e) Cash flow
a
Which type of pricing objective can reduce a firm's risk by helping to stabilize demand for its products? a) Status quo b) Market share c) Survival d) Cash flow e) Return on investment
a
Tyler is a purchasing agent for Kellogg's. He is currently negotiating with his suppliers to receive a _______, which is a temporary price reduction to resellers for purchasing specified quantities of a product.
a buying allowance
A temporary price reduction to resellers for purchasing specified quantities of a product is
a buying allowance.
Scan-back allowance
a manufacturer's reward to retailers based on the number of pieces moved through their scanners during a specific time period. Retailers are expected to pass savings to consumers through special pricing.
scan-back allowance
a manufacturer's reward to retailers based on the number of pieces scanned
free merchandise
a manufacturers reward given to a retailer that purchases a specified quantity of merchandise
If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur
a marginal cost.
McDonald's uses a segmentation strategy for its sandwiches based on market characteristics such as age, gender, or income. Which of the following segmentation variables is McDonald's using? a) Demographic b) Geographic c) Psychographic d) Product-related e) Education
a) Demographic
Which of the following best characterizes the function of recruiting and selecting a sales force? a) It should be a continuous, systematic attempt to match applicants' characteristics to the firm's needs. b) It is a process that should be set up that incorporates at least two steps: an interview and a written application. c) Sources of applicants should be limited, since the recruitment process is expensive and more applicants mean greater expense. d) After interviewing applicants, the manager should attempt to find a position that can be tailored to fit applicants' qualifications. e) It should not be made from personnel in other departments in the firm, as this would necessitate training two people rather than one.
a) It should be a continuous, systematic attempt to match applicants' characteristics to the firm's needs.
Toyota has developed aluminum car bodies that are 100 percent recyclable and light enough to help conserve fuel. What kind of response is this to environmental forces? a) Proactive b) Competitive c) Reactive d) Inactive e) Controllable
a) Proactive
The ___________ prohibits price fixing among firms in an industry. a) Sherman Antitrust Act b) Federal Trade Commission Act c) Wheeler-Lea Act d) Robinson-Patman Act e) Clayton Act
a) Sherman Antitrust Act
Which of the following is particularly appropriate for pricey high-tech business products, such as jet aircraft and medical equipment? a) Team selling b) Relationship selling c) Trade selling d) Technical selling e) Missionary selling
a) Team selling
Which of the following agreements provides a forum for tariff negotiations, reducing trade restrictions, resolution of international trade problems, and ground rules for international trade? a) The World Trade Organization b) The North American Free Trade Agreement c) The Latin American Free Trade Agreement d) The European Union Free Trade Agreement e) The General Agreement on Tariffs and Trade
a) The World Trade Organization
Which of the following is not true when making the sales presentation? a) The salesperson should focus on anticipating questions and answering them before they're asked. b) The salesperson must spark interest in the product. c) The salesperson should not only talk but also listen to the customer. d) The salesperson should involve the customer by having him or her hold, touch, or use the product. e) A salesperson should not sound like he or she is just reading a script (i.e., he or she should be flexible and respond to the customers' comments).
a) The salesperson should focus on anticipating questions and answering them before they're asked.
Maria Martinez works for a cosmetics manufacturer and is responsible for ensuring that retailers have adequate quantities of products when they need them. However, she is directing much of her effort toward helping the retailers promote the products. She would be characterized as belonging to which group of salespeople? a) Trade salespeople b) Field order takers c) Advisory salespeople d) Technical salespeople e) Order getters
a) Trade salespeople
When deciding on sales promotion methods to employ, marketers take several factors into consideration. Which factor below is unlikely to affect decisions regarding sales promotion methods? a) Type of package b) Product characteristics c) Target market characteristics d) Types of resellers e) Competitive forces in the environment
a) Type of package
The Foreign Corrupt Practices Act of 1977 makes it illegal for U.S. firms to a) attempt to make large payments or bribes to influence policy decisions of foreign governments. b) offer foreign businesses any type of incentive for purchasing their company's products and services. c) change their ethical standards when dealing with foreign firms. d) give even small tips or gifts in countries where such gifts are customary business practices. e) introduce any type of corruption into foreign businesses that have higher ethical standards than those of the U.S. firm.
a) attempt to make large payments or bribes to influence policy decisions of foreign governments.
An advertising platform is the a) basic issue or selling point that an advertiser wishes to include in an advertising campaign. b) objective of the advertising campaign, stated in precise and measurable terms. c) form in which the basic issues of the campaign should be presented. d) broad objectives of the advertising campaign. e) consumer advertising research conducted.
a) basic issue or selling point that an advertiser wishes to include in an advertising campaign.
Advertising campaign objectives that are aimed at making customers' attitudes more favorable are stated in ________ terms. a) communication b) sales c) demand d) market e) survey
a) communication
When managers at Logistics Pro are developing their strategic plan, they use a market orientation as a guide to ensure that ________ is an integral part of the process. a) customer satisfaction b) employee satisfaction c) the best use of their marketing resources d) the marketing mix e) the marketing function
a) customer satisfaction
A __________ is a gift to a retailer who purchases a specified quantity of merchandise. a) dealer loader b) premium c) dealer listing d) merchandise allowance e) count and recount
a) dealer loader
Kelly's Kids is a home-based business that sells high-quality children's clothing at premium prices using in-home parties. These in-home parties typically cater to families with small children and middle- to upper-middle-class income. Kelly's Kids is using _____ variables to segment its market. a) demographic b) psychographic c) sociographic d) behavioristic e) geographic
a) demographic
A targeting strategy in which an organization directs its marketing efforts at several segments is called a(n) ___________ targeting strategy. a) differentiated b) total market c) concentrated d) undifferentiated e) integrated
a) differentiated
Del Monte markets ketchup for household use to supermarkets through grocery wholesalers. It markets ketchup for institutional use through industrial distributors and food brokers. Del Monte is using a) dual distribution. b) industrial distribution. c) strategic channel alliance. d) supply chain management. e) an unethical marketing channel.
a) dual distribution.
Gateway Computer makes computers available through its own stores, its toll-free telephone line, and a website. This is an example of a) dual distribution. b) vertical integration. c) horizontal integration. d) tying agreements. e) exclusive dealing.
a) dual distribution.
Cheyenne calls to see if her customer's new hardwood floors were installed correctly a) during the follow-up step. b) immediately after the closing. c) near the end of the sales presentation. d) the next time she makes a sales call to that customer. e) after she receives cash payment from that customer.
a) during the follow-up step.
Doug Browton travels around to various established customers to see what new office supplies they need. His customers have come to depend on him to check their supplies. Doug is a(n) a) field order taker. b) current customer order getter. c) missionary salesperson. d) inside order taker. e) trade salesperson.
a) field order taker.
Costs that do not vary with changes in the number of units produced and sold are called ____ costs. a) fixed b) total c) invariable d) variable e) set
a) fixed
An unplanned buying behavior resulting from a powerful urge to buy something immediately is called a) impulse buying. b) habitual buying. c) compulsive response behavior. d) non-problem solving. e) cognitive dissonance.
a) impulse buying.
In recent years the proportion of promotional dollars spent on sales promotion has a) increased relative to advertising. b) remained constant. c) declined slightly, and the proportion spent on advertising has increased. d) declined slightly, and the proportion spent on advertising has declined as well. e) increased, and the proportion spent on advertising has risen as well.
a) increased relative to advertising.
Cameron Inc. is a very profitable automobile repair shop. The company is well known for its great service and involvement in the community, but it fails to properly dispose of its used oil as outlined in environmental regulations. Cameron is failing in its ______ responsibilities. a) legal b) ethical c) economic d) philanthropic e) strategic
a) legal
A salesperson will be better able to determine the prospect's specific needs by a) listening carefully to questions and comments and watching reactions during the sales presentation. b) waiting until after the sale to see how the client is enjoying the use of the product. c) doing extensive research before the approach and making the sales presentation without adjustment. d) using trial closings throughout the sales presentation. e) making a very thorough and detailed sales presentation about the products and services being offered.
a) listening carefully to questions and comments and watching reactions during the sales presentation.
Tony tells his wife, Camilla, that his last sales call of the day at DuPont was a disaster. He explains that he never really figured out what the purchasing agent was looking for. Camilla, a sales trainer for another firm, hands Tony a book on a) listening skills. b) overcoming objections. c) prospect evaluation. d) product demonstrations. e) closing.
a) listening skills.
Jin Xiao, a trained engineer, is a salesperson for a chemical manufacturer. He provides current customers with advice about a product's characteristics and applications. He is a(n) a) missionary salesperson. b) trade salesperson. c) field order taker. d) inside order taker. e) technical salesperson.
a) missionary salesperson.
In product modification, three conditions must be met to improve a firm's product mix: the product must be modifiable, customers must be able to perceive that a modification has been made, and a) modification should make the product more consistent with customers' desires. b) competing companies should not be aware of planned product modifications. c) modification should change customers' desires to provide greater satisfaction. d) management must perceive the modification as a reasonable and necessary action. e) production costs and materials needed should be limited.
a) modification should make the product more consistent with customers' desires.
Dorothy won a hot-air balloon ride and dinner for two for being the top revenue-producing mortgage loan officer at her company for the month of October. This contest exemplifies a company's efforts at a) motivating salespeople. b) compensating salespeople. c) providing training for the sales force. d) managing sales territories. e) selecting salespeople.
a) motivating salespeople.
To increase sales of Chex cereals, Ralston Purina offered a free pound of bananas to customers who bought the large-size box. This form of sales promotion is called a a) premium. b) coupon. c) cents-off offer. d) free sample. e) money refund.
a) premium.
Advertising, personal selling, sales promotion, and public relations are called a) promotion mix ingredients. b) marketing mix components. c) characteristics of a product. d) advertising tools. e) nonpersonal communication.
a) promotion mix ingredients.
Sayyid's company has launched a new product line, and he is put in charge of sales. He decides his first step will be to find potential customers in the company's sales records. Sayyid is a) prospecting. b) screening. c) researching. d) pre-approaching. e) surveying.
a) prospecting.
For customers, value is a function of the product's a) quality attributes. b) price. c) price and durability. d) quality and functional attributes. e) quality relative to the quality of competing brands.
a) quality attributes.
Marketers who view political forces as being beyond their control are taking a ___________ response toward these forces. a) reactive b) aggressive c) proactive d) competitive e) liberal
a) reactive
Marketing researchers at Essex Co. repeated a particular experiment several times and discovered that the results produced each time were nearly identical. This phenomenon would indicate that the results were a) reliable. b) valid. c) unusable. d) predictable. e) compatible.
a) reliable.
Stacy is going to the store to buy a gallon of milk. She will most likely use ___________ in her consumer decision-making process. a) routinized response behavior b) limited problem solving c) extended problem solving d) perceptual scanning e) evaluation of alternatives
a) routinized response behavior
While shopping at a Kroger grocery store, Tom sees a display of his favorite brand of diet cola. He buys a six-pack to take home for the weekend. This purchase process would be described as a) routinized response behavior. b) extended problem solving. c) limited problem solving. d) situational perception. e) enduring involvement.
a) routinized response behavior.
Realizing that her firm's sales promotion budget was small and cut by 30 percent for the coming year, Stacey Baronas rules out ___________ as playing a role in her sales promotion plan. a) samples b) coupons c) point-of-purchase materials d) money refunds e) premiums
a) samples
The process of dividing a total market into market groups because people within each group have relatively similar product needs is called a) segmentation. b) diversification. c) target marketing. d) concentration. e) customization.
a) segmentation.
Sales objectives can do all of the following except a) serve as a deterrent both to salespeople and their clients. b) give the sales force direction and purpose. c) serve as a standard for evaluating salesperson performance. d) let the sales force know what is expected of them. e) help to control the sales force.
a) serve as a deterrent both to salespeople and their clients.
As a promotional strategy, using coupons strives to achieve all of the following except a) show how a product is used. b) increase sales volume quickly. c) introduce new package sizes. d) prompt trial usage of a new product. e) attract repeat users.
a) show how a product is used.
Avon's Breast Cancer Awareness Crusade, which has raised nearly $400 million for community-based breast cancer education and early detection services, illustrates the positive consequences of a) social responsibility. b) corporate benevolence. c) green marketing. d) legal responsibility. e) economic responsibility.
a) social responsibility.
A sales career can offer all of the following except a a) structured, inflexible workday. b) high income. c) great deal of freedom. d) high level of training. e) high level of job satisfaction.
a) structured, inflexible workday.
In designing sales territories, a sales manager considers several major factors. The territories must be constructed so that sales potential can be measured; the shape of the territories should facilitate salespeople's activities to provide the best possible coverage of customers; and a) territories should be designed to minimize selling costs. b) all territories should be of similar size. c) the territorial pattern should consist of concentric circles. d) the density of potential customers should be minimized. e) the distribution of customers should be relatively equal.
a) territories should be designed to minimize selling costs.
If a product has an inelastic demand and the manufacturer raises its price, a) total revenue will increase. b) quantity demanded will decrease. c) the demand schedule will shift. d) the demand will become more inelastic. e) total revenue will decrease.
a) total revenue will increase
Any marketing tactic used to stimulate wholesalers and retailers to carry a producer's products and market those products more aggressively is a a) trade sales promotion method. b) point-of-purchase material. c) consumer sales promotion method. d) merchandise allowance. e) dealer loader.
a) trade sales promotion method.
Jana works for Hormel Foods and she frequently sets up special displays and distributes samples of Hormel products to customers in supermarkets. Jana would best be classified as a(n) a) trade salesperson. b) technical salesperson. c) inside order taker. d) field order taker. e) missionary salesperson.
a) trade salesperson.
When the needs of individual consumers in a target market for a specific product are similar and the organization can satisfy most customers with a single marketing mix, the best approach to use may be the ___________ strategy. a) undifferentiated b) differentiated c) segmented d) concentrated e) heterogeneous
a) undifferentiated
Motivating Salespeople
achieved through an organized set of activities continuously performed by the company's sales management.
basic issues of selling point to be included in an advertising campaign
advertising platform
When a company promotes its position on a public issue, this is specifically referred to as___ advertising.
advocacy
Advertising that can be used to promote socially approved behavior; alcohol, recycling
advocacy advertising
When Anheuser-Busch ran an advertising campaign featuring the slogan "Know when to say when," it was using:
advocacy advertising
promoting a public issue: taxes, abortion, gun control
advocacy advertising
The three major ways to modify a product include
aesthetic, quality, and functional changes
Determining Sales Force Size
affects the firm's ability to generate sales and profits, the compensation methods used, salespeople's morale, and overall sales force management.
Effective motivation of a sales force is best achieved through
an organized set of activities performed continuously.
Rick has reviewed a prospect's account and credit history, identified product needs, and gathered the appropriate literature. He feels he is ready for the ____ step of the personal selling process.
approach
What are product features?
are specific design characteristics that allows a product to perform certain tasks. By adding or subtracting features, a company can differentiate its products from those of the competition.
A penetration pricing strategy is particularly appropriate when demand is a) increasing. b) highly elastic. c) highly inelastic. d) decreasing. e) inefficient.
b
A television advertisement for Miracle-Gro lawn fertilizer indicates that the product is available at Kmart and Wal-Mart. This form of sales promotion is called a(n) a) cooperative advertising. b) dealer listing. c) push money. d) dealer loader. e) advertising allowance
b
Advertising that encourages customers to send in reply cards for additional information aids salespeople in achieving which goal of personal selling? a) Convincing prospects to buy b) Finding prospects c) Keeping customers satisfied d) Making the presentation e) Following up the sale
b
All of the following are key areas of sales force management except a) compensating salespeople. b) coordinating sales promotion efforts. c) recruiting salespeople. d) training sales personnel. e) motivating sales personnel.
b
Before contacting prospects, a salesperson for an industrial cleaning equipment company analyzes information about the prospects' product needs, feelings about brands, and personal characteristics. This process is called a) prospecting. b) preapproach. c) approaching the customer. d) sales training. e) sales planning.
b
Companies that focus on particular product categories and rely on everyday low pricing to acquire a large market share through aggressive and competitive pricing strategies are often referred to as a) pioneers. b) category killers. c) comparison discounters. d) price leaders. e) category leaders.
b
Creative selling, which requires that salespeople recognize a potential buyer's needs and then provide the prospect with the necessary information, is performed by a) order takers. b) order getters. c) missionary salespeople. d) trade salespeople. e) technical salespeople.
b
Daphne King of Cleborn Pharmaceuticals tells a sales management class at the state university that her job is to call on doctors and explain the benefits of new prescription drugs that her firm develops. Daphne would call herself a(n) a) technical salesperson. b) missionary salesperson. c) order taker. d) order getter. e) trade salesperson.
b
Garrett Almar tells a fellow buyer at Robins Wholesale Parts that the last salesperson who called on him before lunch was a real loser: "He has done a poor job of ___________. He didn't even know what brands we carry or what types of retailers we service!" a) prospecting b) preapproach c) follow-up d) presenting e) approach
b
If Kroger Food Stores advertises 2-liter bottles of Pepsi for 89 cents to generate store traffic that will purchase other items at regular prices, the grocer is using a) reference pricing. b) a price leader. c) special-event pricing. d) comparison discounting. e) professional pricing.
b
If Nabisco had established a pricing objective of selling one out of every three crackers consumed in the world, it would have established an objective based on a) cash flow. b) market share. c) survival. d) return on investment. e) dollar sales volume.
b
If a business decides to reduce its prices once in a while on an unsystematic basis, it is using a) price reduction planning. b) random discounting. c) bait pricing. d) periodic discounting. e) penetration pricing.
b
Order-getting activities are divided into two categories: a) missionary sales and technical sales. b) current-customer sales and new-business sales. c) order takers and trade sales. d) current sales and support sales. e) inside order sales and field order sales.
b
Research indicates that both market share and ___________ are good indicators of profitability. a) low pricing b) product quality c) limited competition d) sales growth e) ROI pricing
b
Sales force objectives are generally established for a) the organization as a whole only. b) the total sales force and for each salesperson. c) just each salesperson but not the whole sales force. d) for each department or division of the company. e) long-term but not short-term salespeople.
b
Sony management decided to use skimming as a pricing strategy for its newest line of high-definition television (HDTV) sets. It should be aware that this strategy does not a) generate capital to cover research and development costs. b) discourage competitors from entering the market. c) provide flexibility in the introductory base price. d) protect the firm from covering costs if prices are set too low. e) reduce the stress that may be placed on the firm's production capabilities.
b
The greatest amount of responsibility for providing customer satisfaction falls on the shoulders of a) chief executive officers. b) salespeople. c) sales managers. d) quality control experts. e) marketing directors.
b
Which of the following products is most likely to have an inverted C-shaped demand curve? a) Levi jeans b) Giorgio perfume c) Maxwell House coffee d) Pillsbury cake mix e) Ford Taurus
b) Giorgio perfume
___________ are items offered free or at minimal cost as a bonus for purchasing a product. a) Rebates b) Premiums c) Samples d) Merchandise allowances e) Coupons
b) Premiums
Order-getting activities are divided into two categories: a) missionary sales and technical sales. b) current-customer sales and new-business sales. c) order takers and trade sales. d) current sales and support sales. e) inside order sales and field order sales.
b) current-customer sales and new-business sales.
Carlos generally makes cold calls on businesses to look for new prospects. He has many satisfied customers, but like many salespeople, he does not frequently utilize one of the best ways to find new prospects, which is through a) telephone directories. b) customer referrals. c) trade shows. d) local restaurants. e) other employees.
b) customer referrals.
Although Maybelline would like to use ______ as a consumer sales promotion method, this method has extremely high labor costs that are more affordable for higher-end make-up companies such as Clinique and Estée Lauder. a) frequent-user incentives b) demonstrations c) coupons d) rebates e) consumer contests
b) demonstrations
The exchange rates of several European countries are linked together to a common currency, the a) lira. b) euro. c) dollar. d) peso. e) ropea.
b) euro.
If a manager tries to form territories with equal sales potential, the territories will usually be unequal in geographic size; this will cause the salespeople with larger territories to a) develop larger income potentials. b) have to work longer and harder to generate a certain sales volume. c) work about the same amount, since potential is the same. d) have much larger sales than those salespeople with smaller territories. e) be limited to a smaller income potential.
b) have to work longer and harder to generate a certain sales volume.
Demand for a business product is ___________ if a price increase or decrease will not significantly affect that demand. a) elastic b) inelastic c) derived d) joint e) separate
b) inelastic
Michelle works for a company that sells rotisseries for chicken and other foods. She answers phone calls from customers who see infomercials on TV and call to order the product. Michelle is considered a(n) a) order getter. b) inside order taker. c) support person. d) field order taker. e) trade salesperson.
b) inside order taker.
The World Trade Organization accomplishes all of the following except a) educating companies about international trade rules. b) lending money to businesses interested in developing international markets. c) serving as a forum for trade negotiations. d) helping settle trade disputes. e) providing legal ground rules for international commerce.
b) lending money to businesses interested in developing international markets.
In contrast to extended problem solving, routinized response behavior requires a) careful deliberation before making a choice. b) less information about products. c) more time. d) considerable thought. e) more money.
b) less information about products.
When a new variety of Kashi whole-grain breakfast cereals is first introduced, consumers will most likely engage in______ when deciding whether or not to purchase this new product. a) extended problem solving b) limited problem solving c) situational solving behavior d) routinized response behavior e) automatic processing behavior
b) limited problem solving
If the manufacturer of Cool Whip were to introduce an orange-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of a) a brand extension. b) line extension. c) functional modification. d) quality modification. e) a new-to-the-world product.
b) line extension.
While anticipating objections and countering them before they are asked is a good idea, one negative consequence of doing so is that the salesperson may a) annoy the customer. b) mention objections the customer had not thought of. c) take too long in trying to sell the product, and the customer may stop listening. d) not emphasize its features and benefits enough. e) begin to lie about the product.
b) mention objections the customer had not thought of.
Daphne King of Cleborn Pharmaceuticals tells a sales management class at the state university that her job is to call on doctors and explain the benefits of new prescription drugs that her firm develops. Daphne would call herself a(n) a) technical salesperson. b) missionary salesperson. c) order taker. d) order getter. e) trade salesperson.
b) missionary salesperson.
Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and a) labor-intensiveness. b) orientation toward value. c) homogeneity. d) heterogeneity. e) specialization.
b) orientation toward value.
Raython Hardware and Thames Industrial Supplier have worked closely for many years and have a mutually beneficial relationship in which Raython provides all of Thames's hardware needs in a timely manner. Raython and Thames's relationship could be best characterized as a(n) a) reciprocity agreement. b) partnership. c) intra-organizational group. d) alliance. e) tying arrangement.
b) partnership.
Garrett Almar tells a fellow buyer at Robins Wholesale Parts that the last salesperson who called on him before lunch was a real loser: "He has done a poor job of ___________. He didn't even know what brands we carry or what types of retailers we service!" a) prospecting b) preapproach c) follow-up d) presenting e) approach
b) preapproach
Before contacting prospects, a salesperson for an industrial cleaning equipment company analyzes information about the prospects' product needs, feelings about brands, and personal characteristics. This process is called a) prospecting. b) preapproach. c) approaching the customer. d) sales training. e) sales planning.
b) preapproach.
Tim has just finished compiling a list of potential customers and evaluating their ability, willingness, and authority to buy. He knows his next step in the personal selling process is to a) approach. b) preapproach. c) make the presentation. d) prospect. e) overcome objections.
b) preapproach.
Marketing ethics a) refers to laws and regulations that govern marketing. b) refers to principles and standards that define acceptable conduct in marketing. c) maximizes an organization's positive impact and minimizes its negative impact on society. d) is most important for advertising agencies. e) applies well-defined rules for appropriate marketing behavior.
b) refers to principles and standards that define acceptable conduct in marketing.
The greatest amount of responsibility for providing customer satisfaction falls on the shoulders of a) chief executive officers. b) salespeople. c) sales managers. d) quality control experts. e) marketing directors.
b) salespeople.
Within a business organization, a profit center that is self-supporting in terms of sales, markets, production, and other resources is known as a a) profit entity. b) strategic business unit. c) marketing program. d) small business. e) diversified corporation.
b) strategic business unit.
Sales force objectives are generally established for a) the organization as a whole only. b) the total sales force and for each salesperson. c) just each salesperson but not the whole sales force. d) for each department or division of the company. e) long-term but not short-term salespeople.
b) the total sales force and for each salesperson.
Bundle pricing may be perceived to be of value by customers because a) they always pay a lower price per item than they would have if they bought each item separately. b) they prefer buying a combination of bundled products in a single transaction, which saves time, effort, and perhaps money. c) the companies selling the products can sell them at a lower price because their costs of packaging are lower. d) they are purchasing complementary products, which is convenient for them. e) they can purchase items that are consumed frequently in larger quantities.
b) they prefer buying a combination of bundled products in a single transaction, which saves time, effort, and perhaps money.
If Morton Salt saw all table salt customers as pretty much alike and thus offered only one marketing mix, it would be using the ___________ strategy. a) directed b) undifferentiated c) segmented d) differentiated e) product-use
b) undifferentiated
Costs that vary directly with changes in the number of units produced or sold are called a) changeables. b) variable costs. c) direct costs. d) fixed costs. e) marginal costs.
b) variable costs.
When Gabriella logs on to Dell's website, she sees a notebook model priced will below $1,000. As she continues through the site to view the other options, she realizes the first one she saw was the cheapest model available, but she of course wants more features. Dell is utilizing
bait pricing
When a company prices one item in a line low with the intention of selling a higher-priced item in the same line, it is using
bait pricing
The type of prices most likely to appear in advertising are
bargain.
The oldest form of exchange trading of products is known as
barter.
What is product development?
begins when the company finds and develops a new-product idea. During product development, sales are zero and the company's investment costs mount.
When Mia and Shane are planning their honeymoon, their travel agent tells them that if they buy a special package, their trip to Paris includes meals, tickets to the theater, and a rental car in addition to airfare and a hotel. This is an example of the use of
bundle pricing
If Green Giant wants to provide its resellers with a secondary incentive to stimulate repurchases after an initial consumer coupon campaign for its latest product, it can offer resellers a sum of money for each unit purchased. This type of sales promotion is a
buy-back allowance.
Cents-Off Offers
buyers pay a certain amount less than the regular price shown on the label or package.
How does a company develop new products?
by enhancing its product mix and adding depth to a product line.
A major disadvantage of personal selling is that it a) is not remembered as well by consumers as advertising messages are. b) cannot easily adjust the message to satisfy a customer's information needs. c) is very expensive per contact. d) does not provide immediate feedback. e) is not compatible with other promotional activities.
c
A marketer is most likely to set prices according to a cash-flow objective when a a) trial-and-error approach to the market is acceptable. b) certain market share must be maintained. c) quick return on investment is desired. d) higher price is acceptable to the firm. e) product is expected to have a long life cycle.
c
A person who primarily seeks repeat sales is called a(n) a) current customer order getter. b) order recorder. c) order taker. d) follow-up salesperson. e) missionary salesperson.
c
A primary goal of routing and scheduling decisions in personal selling is to a) determine the sequence in which customers will be called on. b) use existing transportation facilities. c) minimize nonselling time. d) determine duration of sales calls. e) provide salespeople with an opportunity to plan their own routes and schedules.
c
A product that has more features than those of its competition, or that is perceived to be of higher quality, warrants using which type of pricing strategy? a) Custom pricing b) Special-event pricing c) Premium pricing d) Price lining e) Bait pricing
c
A retailer of Real Dry deodorant prices it at $2.00; it costs the retailer $1.40. What is the approximate markup as a percentage of selling price? a) 3 percent b) 14.3 percent c) 30 percent d) 70 percent e) 20 percent
c
A sales representative for Coca-Cola travels to various restaurants to determine how much syrup the customer needs for the coming period. This sales representative would be classified as a(n) a) order getter. b) inside order taker. c) field order taker. d) missionary salesperson. e) trade salesperson.
c
A temporary price reduction to resellers for purchasing specified quantities of a product is a) premium money. b) a merchandise allowance. c) a buying allowance. d) a buy-back allowance. e) a money refund.
c
Aaron Epstein tells his fellow retail salesperson at Zales Jewelers that during the second quarter he is going to sell all the Alance watches he can and use his extra earnings to go to Cancun. He exclaims, "Can you believe the __________ program they have on for this quarter?" a) buying allowance b) merchandise allowance c) push money d) dealer loader e) sweepstakes
c
Assisting the producer's customers in selling to those customers is the major purpose of which type of salesperson? a) Trade salesperson b) Technical salesperson c) Missionary salesperson d) Order getter e) Order taker
c
At one time, Wheaties offered two free golf balls with the purchase of a twin pack of Wheaties cereal featuring Tiger Woods. This is an example of a a) consumer prize. b) rebate. c) premium. d) free sample. e) free merchandise.
c
Breyer's produces a variety of ice cream flavors and lines of varying qualities. The higher quality ice cream varieties are priced higher than the basic ones. Breyer's is using _____ to price its ice cream. a) captive pricing b) price baiting c) premium pricing d) bait pricing e) differential pricing
c
Creating a favorable impression and developing rapport with prospective customers is a critical part of the ______ step of personal selling. a) following up b) making the presentation c) approach d) prospecting e) preapproach
c
Customer density and distribution are important factors in a) prospecting. b) motivating salespeople. c) creating sales territories. d) compensating salespeople. e) establishing sales force objectives.
c
Effective motivation of a sales force is best achieved through a) annual retreats at resort locations open to families. b) emphasizing sales force objectives and their connection to compensation. c) an organized set of activities performed continuously. d) motivation meetings when sales have declined. e) daily pep talks before the sales force makes sales calls.
c
Jamba Juice offers its customers a stamp card that allows them to receive a free smoothie after they have filled an entire card. This is an example of a a) free sample. b) rebate. c) frequent-user incentive. d) premium. e) consumer contest.
c
Maria recently put her house on the market at an asking price of $260,000. She realizes, however, that in order to sell the house, she may have to use a) secondary-market pricing. b) reference pricing. c) negotiated pricing. d) price lining. e) professional pricing.
c
Marketers at organizations engaged in nonprice competition a) are more concerned about knowing competitors' prices than are marketers in organizations that are engaged in price competition. b) are not concerned about the prices of competing brands. c) need competitive price information to make sure that their products are priced at approximately the same level as the prices of competing brands. d) rely on customers to help them gather information regarding the prices of competing brands. e) experience high levels of price instability.
c
Most pricing objectives based on ___________ are achieved by trial and error because not all cost and revenue data are available when prices are set. a) market share b) cash flow c) return on investment d) survival e) profit
c
Paid personal communication that attempts to inform and persuade customers to purchase products in an exchange situation is called a) advertising. b) sales promotion. c) personal selling. d) target marketing. e) public relations.
c
Pricing the basic product in a product line low while pricing related items at a higher level is called a) premium pricing. b) bait pricing. c) captive pricing. d) price skimming. e) price lining.
c
Recruiting and selection of salespeople should include enough steps to yield the information needed to make accurate selection decisions. However, the stages of the process should be sequenced so that the more expensive steps are a) near the beginning. b) always completed before anything else. c) near the end. d) paid by the prospects rather than the company. e) never reached.
c
Rick has reviewed a prospect's account and credit history, identified product needs, and gathered the appropriate literature. He feels he is ready for the ____ step of the personal selling process. a) prospecting b) presentation c) approach d) preapproach e) closing
c
Running a big sale in order to generate enough cash flow to pay creditors is typical in a situation in which a firm's primary pricing objective is a) status quo. b) profit. c) survival. d) market share. e) recovery.
c
Showing a product's price along with its previous price, the price of a competing brand, or the price at another retail outlet is called a) competition-based pricing. b) reference pricing. c) comparison discounting. d) captive pricing. e) psychological pricing.
c
Sometimes retailers are offered temporary price reductions for purchasing specified quantities of a product. These offers are used to provide an incentive to handle a new product, to achieve a temporary price reduction, or to stimulate the purchase of an item in large quantities. What is this sales promotion? a) Push money b) Buy-back allowance c) Buying allowance d) Cents-off offer e) Money refund
c
Steinway produces concert grand pianos, often using the custom materials and designs desired by a specific customer. The average price of these pianos runs about $50,000 depending on the exact piano. What type of pricing does Steinway most likely use for these pianos? a) Markup b) Competition-based c) Cost-plus d) Demand-based e) Secondary-market
c
The "White Sale" that many department stores have every year a few weeks after Christmas is an example of a) secondary pricing. b) off-peak pricing. c) periodic discounting. d) random discounting. e) captive pricing.
c
The manager at Best Buy puts a sign up next to a Pioneer audio system that reads, "Only $199.99! $60 less than Circuit City." This is an example of what type of pricing strategy? a) Random discounting b) Periodic discounting c) Comparison discounting d) Penetration pricing e) Everyday low prices
c
The three primary bases for developing prices are a) profit, demand, and competition. b) supply, demand, and marketing objectives. c) demand, competition, and cost. d) markup, cost, and cost-plus. e) negotiation, periodicity, and randomness.
c
The two groups of order takers in personal selling are a) current customer salespeople and new-business salespeople. b) missionary salespeople and trade salespeople. c) inside order takers and field order takers. d) trade salespeople and technical salespeople. e) advisory order takers and support order takers.
c
The type of salesperson that usually requires training in physical science or engineering is the a) trade salesperson. b) missionary salesperson. c) technical salesperson. d) order taker. e) order getter.
c
What type of pricing strategy is used in a situation where demand for a product is price inelastic and the seller has an ethical responsibility not to overcharge the client? a) Price lining b) Prestige pricing c) Professional pricing d) Customary pricing e) Price skimming
c
When a salesperson asks the customer to buy the product several times throughout the sales presentation in an effort to uncover hidden objections, it is called a) order taking. b) new-business selling. c) trial closing. d) order getting. e) overcoming objections.
c
Which of the following is most likely to stimulate customer loyalty? a) Coupons b) Sweepstakes c) Frequent-user incentives d) Samples e) Premiums
c
Which of the following is not a reason why the proportion of promotional dollars spent on sales promotion has increased in recent years? a) Retailers have become more powerful relative to manufacturers and are demanding more trade sales promotion efforts. b) Because of an increased focus on value, consumers are more responsive to promotional offers. c) The greater emphasis on improving long-term performance has resulted in an increased use of sales promotion methods. d) Sales promotions aimed at convincing customers to change brands are more effective because of declines in brand loyalty in general. e) All of these are reasons for the increasing proportion of promotional dollars being spent on sales promotion efforts.
c
Which of the following is the best example of a well-stated sales objective? a) Companywide sales should increase by 25 percent. b) Each salesperson should increase his or her client group by 10 percent. c) Each salesperson should bring in $25,000 in new sales by November 15. d) The sales force should increase the market share in all markets by December 1. e) Each salesperson should increase the number of calls they make by 20 percent.
c
Which of the following pricing objectives sets prices to recover cash as quickly as possible? a) Market share b) Profit c) Cash flow d) Return on investment e) Product quality
c
While sales contests can motivate employees at all levels to participate, a disadvantage of this method of sales promotion is that a) they are often too complicated. b) they are not taken seriously by the employees. c) people often discontinue their positive behavior after the contest is over. d) many point-of-purchase display materials are needed to implement a contest. e) people often feel they are not being recognized enough.
c
Which of the following characteristics distinguish online media from traditional marketing? a) Experience, networking, and personal contact b) Social networking, personal contacts, control, and salesmanship c) Addressability, interactivity, accessibility, connectivity, and control d) Environment, responsiveness, customization, and affordability e) Dynamic responsiveness, control, friendliness, and attention-getting
c) Addressability, interactivity, accessibility, connectivity, and control
Sometimes retailers are offered temporary price reductions for purchasing specified quantities of a product. These offers are used to provide an incentive to handle a new product, to achieve a temporary price reduction, or to stimulate the purchase of an item in large quantities. What is this sales promotion? a) Push money b) Buy-back allowance c) Buying allowance d) Cents-off offer e) Money refund
c) Buying allowance
Which of the following lists forms of competitive advertising? a) Pioneer, comparative, reminder b) Reminder, repetitive, reinforcement c) Comparative, reminder, reinforcement d) Institutional, product, comparative e) Product, pioneer, reminder
c) Comparative, reminder, reinforcement
Which of the following is the best example of a well-stated sales objective? a) Companywide sales should increase by 25 percent. b) Each salesperson should increase his or her client group by 10 percent. c) Each salesperson should bring in $25,000 in new sales by November 15. d) The sales force should increase the market share in all markets by December 1. e) Each salesperson should increase the number of calls they make by 20 percent.
c) Each salesperson should bring in $25,000 in new sales by November 15.
Beth Hines is buying furniture for her apartment for the first time. She is spending considerable time and effort comparing the products that different stores offer. Which type of problem-solving process is she using? a) Selective b) Intensive c) Extended d) Shopping e) Routinized
c) Extended
Which of the following are the most frequently sentenced organizational crimes? a) False advertising and price discrimination b) Price discrimination and fraud c) Fraud and antitrust violations d) Price fixing and antitrust violations e) Fraud and price fixing
c) Fraud and antitrust violations
Which of the following is most likely to stimulate customer loyalty? a) Coupons b) Sweepstakes c) Frequent-user incentives d) Samples e) Premiums
c) Frequent-user incentives
What does the demand curve for a prestige product look like? a) It is a straight line where the quantity sold continues to increase as the price of each product increases. b) It is a curve where the highest and the lowest prices yield the greatest quantity sold and mid-range prices produce the fewest sales. c) It forms a curve where the greatest quantity sold comes at a medium price and the quantities fall as the price increases or decreases. d) It forms a straight vertical line because of the prestige of the product, and quantity sold will remain stable regardless of the price. e) It slopes from left to right at a very mild slope; that is, as quantity increases, price decreases slowly.
c) It forms a curve where the greatest quantity sold comes at a medium price and the quantities fall as the price increases or decreases.
The trade alliance that includes Brazil, Argentina, Chile, and other countries is known as a) OPEC. b) APEC. c) MERCOSUR. d) NAFTA. e) the Common Market.
c) MERCOSUR.
Assisting the producer's customers in selling to those customers is the major purpose of which type of salesperson? a) Trade salesperson b) Technical salesperson c) Missionary salesperson d) Order getter e) Order taker
c) Missionary salesperson
Which of the following statements about social responsibility is correct? a) Social responsibility dimensions do not include philanthropic concerns. b) Social responsibility does not deal with the total effect of all marketing decisions on society. c) Social responsibility refers to a company's obligation to maximize its positive impact and minimize its negative impact on society. d) Social responsibility dimensions do not include economic concerns. e) Social responsibility refers to principles and standards that define acceptable conduct in marketing as determined by various stakeholders.
c) Social responsibility refers to a company's obligation to maximize its positive impact and minimize its negative impact on society.
Which of the following is not a reason why the proportion of promotional dollars spent on sales promotion has increased in recent years? a) Retailers have become more powerful relative to manufacturers and are demanding more trade sales promotion efforts. b) Because of an increased focus on value, consumers are more responsive to promotional offers. c) The greater emphasis on improving long-term performance has resulted in an increased use of sales promotion methods. d) Sales promotions aimed at convincing customers to change brands are more effective because of declines in brand loyalty in general. e) All of these are reasons for the increasing proportion of promotional dollars being spent on sales promotion efforts.
c) The greater emphasis on improving long-term performance has resulted in an increased use of sales promotion methods.
A temporary price reduction to resellers for purchasing specified quantities of a product is a) premium money. b) a merchandise allowance. c) a buying allowance. d) a buy-back allowance. e) a money refund.
c) a buying allowance.
Inelastic demand simply means that a) buyers will not make a modified rebuy purchase. b) demand depends on how many items are purchased. c) a price increase or decrease will not significantly change the demand for an item. d) when price goes up, demand goes down. e) when supply is reduced, the price will increase.
c) a price increase or decrease will not significantly change the demand for an item.
Effective motivation of a sales force is best achieved through a) annual retreats at resort locations open to families. b) emphasizing sales force objectives and their connection to compensation. c) an organized set of activities performed continuously. d) motivation meetings when sales have declined. e) daily pep talks before the sales force makes sales calls.
c) an organized set of activities performed continuously.
Rick has reviewed a prospect's account and credit history, identified product needs, and gathered the appropriate literature. He feels he is ready for the ____ step of the personal selling process. a) prospecting b) presentation c) approach d) preapproach e) closing
c) approach
Soft drink companies advertise that their products beat the competition in national "taste tests," and they refer to the rival brands by name. This type of advertising is best described as a) pioneer. b) competitive. c) comparative. d) defensive. e) selective.
c) comparative.
In general, differences between goods and services are determined by the a) degree of labor intensiveness. b) type of target market. c) degree of tangibility. d) type of provider. e) degree of consumer contact.
c) degree of tangibility.
After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is a) determining the demographic variables of the target market. b) developing market segment profiles. c) determining which segmentation variables to use. d) selecting specific target markets. e) evaluating relevant market segments.
c) determining which segmentation variables to use.
If Carnival Cruise Lines increased the price of its seven-day cruise package by 10 percent and, as a result, experienced a 20 percent decline in customer bookings, Carnival's demand would be a) steady. b) inelastic. c) elastic. d) prestige. e) marginal.
c) elastic.
Suppose that marketers at Lever Bros. are trying to determine whether the use of free samples of Snuggle fabric softener was the reason for a sales increase in a particular store. The type of research conducted to answer this question is a) exploratory. b) descriptive. c) experimental. d) informal. e) qualitative.
c) experimental.
A sales representative for Coca-Cola travels to various restaurants to determine how much syrup the customer needs for the coming period. This sales representative would be classified as a(n) a) order getter. b) inside order taker. c) field order taker. d) missionary salesperson. e) trade salesperson.
c) field order taker.
The two groups of order takers in personal selling are a) current customer salespeople and new-business salespeople. b) missionary salespeople and trade salespeople. c) inside order takers and field order takers. d) trade salespeople and technical salespeople. e) advisory order takers and support order takers.
c) inside order takers and field order takers.
A major disadvantage of personal selling is that it a) is not remembered as well by consumers as advertising messages are. b) cannot easily adjust the message to satisfy a customer's information needs. c) is very expensive per contact. d) does not provide immediate feedback. e) is not compatible with other promotional activities.
c) is very expensive per contact
A primary goal of routing and scheduling decisions in personal selling is to a) determine the sequence in which customers will be called on. b) use existing transportation facilities. c) minimize nonselling time. d) determine duration of sales calls. e) provide salespeople with an opportunity to plan their own routes and schedules.
c) minimize nonselling time.
While sales contests can motivate employees at all levels to participate, a disadvantage of this method of sales promotion is that a) they are often too complicated. b) they are not taken seriously by the employees. c) people often discontinue their positive behavior after the contest is over. d) many point-of-purchase display materials are needed to implement a contest. e) people often feel they are not being recognized enough.
c) people often discontinue their positive behavior after the contest is over.
Kathy Adkins, owner of Adkins Styling Salon, looks at the day's appointment schedule and notices that it is completely full. She wishes some of the empty slots from earlier in the week were available on this Saturday afternoon. Her thoughts deal with the ___________ characteristic of services. a) credence b) heterogeneity c) perishability d) search e) inseparability
c) perishability
Paid personal communication that attempts to inform and persuade customers to purchase products in an exchange situation is called a) advertising. b) sales promotion. c) personal selling. d) target marketing. e) public relations.
c) personal selling.
Aaron Epstein tells his fellow retail salesperson at Zales Jewelers that during the second quarter he is going to sell all the Alance watches he can and use his extra earnings to go to Cancun. He exclaims, "Can you believe the __________ program they have on for this quarter?" a) buying allowance b) merchandise allowance c) push money d) dealer loader e) sweepstakes
c) push money
When marginal cost is equal to marginal revenue, the firm should a) produce more to increase profits. b) produce less to decrease total costs. c) stop producing additional units to maximize profits. d) provide discounts to encourage purchases. e) intensify distribution to increase sales.
c) stop producing additional units to maximize profits.
Ryan Amerson leads his company's clients through the installation procedure of their new industrial equipment. He also helps answer their questions about product characteristics and system design both before and after their purchases. Ryan is a a) trade salesperson. b) missionary salesperson. c) technical salesperson. d) systems engineer. e) field order taker.
c) technical salesperson.
When a salesperson asks the customer to buy the product several times throughout the sales presentation in an effort to uncover hidden objections, it is called a) order taking. b) new-business selling. c) trial closing. d) order getting. e) overcoming objections.
c) trial closing.
A firm has conducted market research and found that customer satisfaction with its product is quite high. Nonetheless, repurchase behavior is very low. The research design evidently has a problem with a) secondary data. b) reliability. c) validity. d) reporting findings. e) generalizability.
c) validity.
Pricing the basic product in a product line low while pricing related items at a higher level is called
captive pricing
Gambrell Designs thinks its new product, the Automatic Dog Walker, will have a short product life cycle; therefore, its marketing department sets its primary pricing objective as
cash flow
When Yoplait Yogurt gives a portion of its profits to Breast Cancer Research, it is using:
cause-related marketing.
In order to encourage purchases of consumer products, marketers may offer to let buyers pay less than the regular price shown, a consumer sales promotion method known as
cents-off offers.
Claire Nevsky is in charge of advertising for her company and has produced a 30-second television spot to promote one of the company's new products. One of her assistants just out of college believes that the commercial has too much visual and audio information packed into such a small amount of time. The assistant is specifically concerned about limits in the receiver's:
channel capacity.
A single leader who controls and organizes a marketing channel is called a
channel captain
Stacey's client group has been gradually shrinking and she is looking for new prospective clients. She has decided to spend a couple of days approaching potential customers without any prior consent. Stacey's method of approach is known as:
cold canvas.
Stacey's client group has been gradually shrinking and she is looking for new prospective clients. She has decided to spend a couple of days approaching potential customers without any prior consent. Stacey's method of approach is known as
cold canvass.
When products in an industry are relatively homogeneous and price is a key purchase consideration,
competition based-pricing becomes more important
"stimulates demand for a specific brand" by promoting its features,uses, advantages relative to competing brands
competitive advertising
Heinz uses various techniques such as coupons, free samples, and consumer contests to encourage consumers to try its products. All of these marketing activities are considered
consumer sales promotion methods.
The difference between consumer sales promotion methods and trade sales promotion methods is
consumer sales promotions focus on getting consumers to buy their products, whereas trade sales promotions focus on getting wholesalers and retailers to buy.
The difference between consumer sales promotion methods and trade sales promotion methods is:
consumer sales promotions focus on getting consumers to buy their products, whereas trade sales promotions focus on getting wholesalers and retailers to buy.
Money Refunds
consumers submit proof of purchase and are mailed a specific amount of money.
When determining markup as a percentage of cost, divide the markup amount by
cost
For custom-made equipment or commercial construction projects, which pricing method is most likely used?
cost-plus
Steinway produces concert grand pianos, often using the custom materials and designs desired by a specific customer. The average price of these pianos runs about $50,000 depending on the exact piano. What type of pricing does Steinway most likely use for these pianos?
cost-plus
The federal government often uses ___ pricing when it grants defense contracts
cost-plus
When a seller's costs are usually determined during or after a product is made and then specified percentage or dollar amount is added to the cost to establish a price, an organization is using ___ pricing.
cost-plus
Marketers generally view _____ as the minimum price a product can be sold for.
costs
As Quaker Oats tries to decide how to introduce its new line of breakfast bars, it considers all the advantages and disadvantages of the various consumer sales promotion methods. After careful consideration, Quaker Oats decides to use _____, which are the most widely used form of consumer sales promotion.
coupons
What is product differentiation
creating and designing products so that customers perceive them as different from competing products
Often when a company introduces a new product or line extension, its promotion will focus on ____ in order to initiate the product-adoption process.
creating awareness
Customer density and distribution are important factors in
creating sales territories.
A deduction from list price for purchasing large quantities aggregated over a stated period of time is a
cumulative quantity discount.
The most common sales force evaluation practices are for sales managers to compare a salesperson's performance with other salespeople operating under similar selling conditions, or to compare
current performance with past performance.
Order-getting activities are divided into two categories:
current-customer sales and new-business sales.
Goods that are priced primarily based on the way they have always been priced are examples of
customary pricing
Carlos generally makes cold calls on businesses to look for new prospects. He has many satisfied customers, but like many salespeople, he does not frequently utilize one of the best ways to find new prospects, which is through
customer referrals.
A dealer loader is a) additional compensation to salespeople from the manufacturer to promote a line of goods. b) an agreement in which a producer offers free merchandise to a retailer. c) an advertisement that promotes a product and identifies retailers who sell the product. d) a gift to a retailer who purchases a specified quantity of merchandise. e) a temporary price reduction to resellers for purchasing a certain quantity of merchandise.
d
A manager at JC Penney discovers that Sears has reduced the price of its children's Levi's from $31.99 to $24.99, according to an advertisement in the Sunday newspaper. She immediately phones her store and instructs the salesperson on duty to put a sign up next to their children's Levi's that reads, "SALE: $24.99." This is an example of what pricing strategy? a) Secondary-market pricing b) Bait-pricing c) Reference pricing d) Random discounting e) Comparison discounting
d
A missionary salesperson is usually employed by a) a retailer. b) a wholesaler. c) either a retailer or a producer. d) a manufacturer. e) an independent intermediary.
d
A product is a price leader when a) it is sold at the highest price. b) its price maximizes profits. c) an increase or decrease in price leads to increased revenue or lower costs. d) it is sold at less than cost in the hope that sales of other products will increase. e) its price leads the industry in sales.
d
A sale at The Bon Marche the day after Thanksgiving to kick off the Christmas season would be considered a) psychological pricing. b) comparison discounting. c) customary pricing. d) special-event pricing. e) captive pricing.
d
As Quaker Oats tries to decide how to introduce its new line of breakfast bars, it considers all the advantages and disadvantages of the various consumer sales promotion methods. After careful consideration, Quaker Oats decides to use _____, which are the most widely used form of consumer sales promotion. a) free samples b) rebates c) point-of-purchase displays d) coupons e) cents-off offers
d
Developing a list of potential customers is called a) preapproaching. b) surveying. c) scouting. d) prospecting. e) screening.
d
Fraudulent usage, inability to attract potentially brand-loyal customers, and use by current customers but not new customers are believed to be disadvantages of which of the following? a) Sweepstakes b) Money refunds c) Frequent-user incentives d) Coupons e) Premiums
d
If Green Giant wants to provide its resellers with a secondary incentive to stimulate repurchases after an initial consumer coupon campaign for its latest product, it can offer resellers a sum of money for each unit purchased. This type of sales promotion is a a) buying allowance. b) count-and-recount allowance. c) scan-back allowance. d) buy-back allowance. e) coupon follow-up campaign.
d
If Norelco introduced a new electric razor that sonically removes hair and priced it first at $175 and then at $150 before reducing the price to $100, the firm's initial pricing strategy is known as a) penetration pricing. b) psychological pricing. c) price lining. d) price skimming. e) odd-even pricing.
d
If REVO sets the price for its sunglasses at $240, it is using psychological pricing to convey a) thrift. b) cost cutting. c) value. d) prestige. e) availability.
d
If an organization sets prices to recover research and development expenses and establish a premium quality image for its product, it would be using a _________ pricing objective. a) survival b) return on investment c) market share d) product quality e) cash flow
d
In which of the following does the salesperson join with people from the firm's financial, engineering, and other functional areas to engage in the personal selling process? a) Trade selling b) Missionary selling c) Relationship selling d) Team selling e) Technical selling
d
J.C. Penney's 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 ___________ percent for this product. a) 64 b) 36 c) 18 d) 57 e) 45
d
Jose Suarez has been hired as sales manager at a new firm and is trying to come up with a sales force compensation method. He would like to have selling expenses relate directly to sales resources, an aggressive sales force, and minimization of nonselling tasks. What compensation method(s) would best fulfill his requirements? a) Combination b) Straight salary c) Straight salary plus generous fringe benefits d) Straight commission e) Salary plus a bonus
d
Odd-even pricing is a) a cost-based strategy. b) competition-based. c) a rarely used technique. d) a psychological pricing strategy. e) a form of unethical pricing.
d
Price skimming and penetration pricing are both strategies used for a) product-line pricing. b) business products only. c) psychological pricing. d) new-product pricing. e) promotional pricing.
d
Ray Singh is preparing to evaluate one of his sales representatives, Julie Hill. His evaluation of her performance for the prior year led to his conclusion that she lacked key product information. At their upcoming session, he will most likely do which of the following? a) Decrease the size of her territory. b) Increase her sales quotas. c) Terminate her. d) Recommend that she attend a training program. e) Ignore this problem given that her sales results were good.
d
Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's
marginal revenue.
Reference pricing is a) listing the manufacturer's suggested retail price on the price tag along with the store's lower price. b) mentioning the price that other retailers charge for the same product on the display for the product. c) using a consumer's internal perceptions of what the appropriate price should be to help price a firm's products. d) pricing a product at a moderate level and positioning it next to a more expensive model or brand. e) using prices in advertising so that customers will have a point of reference when they come to the retail facility.
d
Sales objectives for individual salespeople can be stated in several ways. Which of the following would least likely be used for stating an individual salesperson's goal? a) Dollar volume sales b) Unit volume sales c) Average order size d) Ratio of profits relative to number of sales calls e) Average number of calls per time period
d
The best advice for recruiting and selecting salespeople for one's organization would be a) follow a clear set of generally accepted job characteristics when determining an applicant's qualifications. b) keep the expensive stages near the beginning of the recruiting process. c) find out how long the applicant plans to stay with the company. d) make recruitment a continuous activity aimed at seeking out the best applicants. e) recruit primarily from educational institutions.
d
The difference between consumer sales promotion methods and trade sales promotion methods is a) with consumer sales promotion, marketers try to persuade retailers to carry their products. b) with trade sales promotion, marketers focus on trading with consumers. c) consumer and trade sales promotions aim at retailers, but only trade sales promotions aim at wholesalers. d) consumer sales promotions focus on getting consumers to buy their products, whereas trade sales promotions focus on getting wholesalers and retailers to buy. e) trade sales promotions attempt to persuade people to buy at particular stores, whereas consumer sales promotions focus on persuading people to buy particular products.
d
The fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ___________ pricing. a) price-line b) promotional c) professional d) differential e) psychological
d
The federal government often uses _____ pricing when it grants defense contracts. a) markup b) differential c) breakeven d) cost-plus e) competition-based
d
The final stage of the selling process is a) closing. b) trial close. c) presentation. d) follow-up. e) overcoming objections.
d
The management at Allied Electronics is having difficulty in raising the introductory price on system components to cover the increased costs of producing the sensing devices for home security systems. Apparently, Allied used a(n) ___________ strategy in pricing these components. a) odd-even b) skimming c) lining d) penetration e) psychological
d
The most common sales force evaluation practices are for sales managers to compare a salesperson's performance with other salespeople operating under similar selling conditions, or to compare a) the size of sales territories. b) selling expenses by various members of the sales force. c) the amount of new business generated. d) current performance with past performance. e) the ratio of costs to profits.
d
The purpose of the ___________ stage in personal selling is to determine customers' problems and questions about using the product. a) prospecting b) approach c) overcoming-objections d) follow-up e) closing
d
The stage of the personal selling process in which the salesperson attempts to make a favorable impression, gather information about the customer's needs and objectives, and build a rapport with the prospective customers is called a) prospecting. b) preapproach. c) approach. d) making the presentation. e) overcoming objections.
d
The step of the personal selling process in which a salesperson contacts a potential customer is called a) making the presentation. b) cold calling. c) the preapproach. d) the approach. e) prospecting.
d
Westin Inc. has an objective of achieving a 25 percent return from its overall sales. This is an example of a ______ pricing objective. a) market share b) cash flow c) return on investment d) profit e) status quo
d
What type of pricing objective would an organization use if it were in a favorable position and desired nothing more? a) Return on investment b) Cash flow c) Profit d) Status quo e) Survival
d
When Sharp first introduced its line of graphing calculators, it set the price quite high; it has lowered the price as competitors have entered the market. The pricing strategy initially used by Sharp is called a) customary pricing. b) odd-even pricing. c) penetration pricing. d) price skimming. e) prestige pricing.
d
When a company adjusts price levels so that it can increase sales volume to levels that match the organization's expenses, it is said to employ a _________ objective. a) market share b) cash flow c) return on investment d) survival e) profit
d
When a manufacturer rewards retailers based on the number of pieces moved through their scanners, this sales promotion method is known as a a) merchandise allowance. b) count-and-recount allowance. c) buy-back allowance. d) scan-back allowance. e) scan-count allowance.
d
When a seller's costs are usually determined during or after a product is made and then a specified percentage or dollar amount is added to the cost to establish a price, an organization is using _____ pricing. a) markup b) demand-based c) differential d) cost-plus e) expensed-based
d
When businesses charge the highest possible price that customers who really want the new product will pay, they are using a) premium pricing. b) prestige lining. c) captive pricing. d) price skimming. e) penetration pricing.
d
When consumers are making do with less expensive products and shopping more selectively, manufacturers and retailers must focus on the ___________ of their products. a) price b) quality c) availability d) value e) image
d
Which of the following is an example of a trade sales promotion method? a) Frequent-user incentives b) Point-of-purchase displays c) Retailer coupons d) Free merchandise e) Money refunds
d
A cost-based pricing method commonly used in retail is called
mark-up prices
Zack Freedman is an experienced salesperson who has worked for the same company for 20 years. When he is informed that he must attend a training seminar the following Tuesday, he believes it will most likely be about a) the company. b) his customers' companies. c) basic selling methods. d) new-product information. e) prospecting.
d
___________ are designed to identify the customers called on and to present detailed information about interaction with those clients. a) Invoices b) Feedback notices c) Work schedules d) Call reports e) Recall files
d
___________ are designed to identify the customers called on and to present detailed information about interaction with those clients. a) Invoices b) Feedback notices c) Work schedules d) Call reports e) Recall files
d) Call reports
Fraudulent usage, inability to attract potentially brand-loyal customers, and use by current customers but not new customers are believed to be disadvantages of which of the following? a) Sweepstakes b) Money refunds c) Frequent-user incentives d) Coupons e) Premiums
d) Coupons
Identifying and analyzing a target market and developing a marketing mix to satisfy individuals in that market are essential elements of which of the following parts of strategic planning? a) Establishing marketing objectives b) Coordinating marketing activities c) Organizing marketing functions d) Developing a marketing strategy e) Planning marketing activities
d) Developing a marketing strategy
Which of the following is an example of a trade sales promotion method? a) Frequent-user incentives b) Point-of-purchase displays c) Retailer coupons d) Free merchandise e) Money refunds
d) Free merchandise
Zerex markets its radiator liquid as a coolant in the South and an antifreeze in the North. Which of the following segmentation variables is Zerex using? a) Demographic b) Psychographic c) Life cycle d) Geographic e) Product use
d) Geographic
Justin Abercrombie attends a seminar on just-in-time inventory management. Excited about the idea, he returns to his office at Atlanta Auto Supply to start designing such an inventory system. Which of the following steps must Justin take as he institutes this change? a) Increase safety stock b) Raise the reorder point c) Reduce customer service standard d) Increase order frequency e) Reduce estimates of inventory turnover rate
d) Increase order frequency
Ray Singh is preparing to evaluate one of his sales representatives, Julie Hill. His evaluation of her performance for the prior year led to his conclusion that she lacked key product information. At their upcoming session, he will most likely do which of the following? a) Decrease the size of her territory. b) Increase her sales quotas. c) Terminate her. d) Recommend that she attend a training program. e) Ignore this problem given that her sales results were good.
d) Recommend that she attend a training program.
If all the gas stations in a city collaborated to determine what gas prices should be charged, they would be violating the a) Wheeler-Lea Act. b) Clayton Act. c) Robinson-Patman Act. d) Sherman Antitrust Act. e) Celler-Kefauver Act.
d) Sherman Antitrust Act.
Which of the following is not one of the major categories of consumer market segmentation variables? a) Demographic characteristics b) Geographic variables c) Psychographic dimensions d) Situational variables e) Behavioristic characteristics
d) Situational variables
Which product listed would most likely be purchased through routinized response behavior? a) Car b) Desk c) Shirt d) Soft drink e) Television set
d) Soft drink
In which of the following does the salesperson join with people from the firm's financial, engineering, and other functional areas to engage in the personal selling process? a) Trade selling b) Missionary selling c) Relationship selling d) Team selling e) Technical selling
d) Team selling
What is the primary distinction between a line extension and a product modification? a) A product modification results in a completely new product while a line extension is simply changing an old product. b) In both cases an existing product is altered, but the alteration is more dramatic with a product modification than it is with a line extension. c) Line extensions are designed to better meet the needs of the existing market segment while product modifications target entirely new segments of the market. d) With product modifications, the original product is replaced in the product line while both the old and the new products remain in the case of line extension. e) Line extensions are strictly aesthetic changes to an existing product whereas product modifications consist of changes in quality and functionality.
d) With product modifications, the original product is replaced in the product line while both the old and the new products remain in the case of line extension.
A dealer loader is a) additional compensation to salespeople from the manufacturer to promote a line of goods. b) an agreement in which a producer offers free merchandise to a retailer. c) an advertisement that promotes a product and identifies retailers who sell the product. d) a gift to a retailer who purchases a specified quantity of merchandise. e) a temporary price reduction to resellers for purchasing a certain quantity of merchandise.
d) a gift to a retailer who purchases a specified quantity of merchandise.
A missionary salesperson is usually employed by a) a retailer. b) a wholesaler. c) either a retailer or a producer. d) a manufacturer. e) an independent intermediary.
d) a manufacturer.
If Green Giant wants to provide its resellers with a secondary incentive to stimulate repurchases after an initial consumer coupon campaign for its latest product, it can offer resellers a sum of money for each unit purchased. This type of sales promotion is a a) buying allowance. b) count-and-recount allowance. c) scan-back allowance. d) buy-back allowance. e) coupon follow-up campaign.
d) buy-back allowance.
Stacey's client group has been gradually shrinking and she is looking for new prospective clients. She has decided to spend a couple of days approaching potential customers without any prior consent. Stacey's method of approach is known as a) referral approach. b) ambulance chasing. c) door-to-door selling. d) cold canvass. e) repeat contact.
d) cold canvass.
If the ads include both the Venza and the Ford Edge, they would be examples of a) institutional advertising. b) public relations. c) product advertising. d) comparative advertising. e) competitive advertising.
d) comparative advertising.
The difference between consumer sales promotion methods and trade sales promotion methods is a) with consumer sales promotion, marketers try to persuade retailers to carry their products. b) with trade sales promotion, marketers focus on trading with consumers. c) consumer and trade sales promotions aim at retailers, but only trade sales promotions aim at wholesalers. d) consumer sales promotions focus on getting consumers to buy their products, whereas trade sales promotions focus on getting wholesalers and retailers to buy. e) trade sales promotions attempt to persuade people to buy at particular stores, whereas consumer sales promotions focus on persuading people to buy particular products.
d) consumer sales promotions focus on getting consumers to buy their products, whereas trade sales promotions focus on getting wholesalers and retailers to buy.
As Quaker Oats tries to decide how to introduce its new line of breakfast bars, it considers all the advantages and disadvantages of the various consumer sales promotion methods. After careful consideration, Quaker Oats decides to use _____, which are the most widely used form of consumer sales promotion. a) free samples b) rebates c) point-of-purchase displays d) coupons e) cents-off offers
d) coupons
The most common sales force evaluation practices are for sales managers to compare a salesperson's performance with other salespeople operating under similar selling conditions, or to compare a) the size of sales territories. b) selling expenses by various members of the sales force. c) the amount of new business generated. d) current performance with past performance. e) the ratio of costs to profits.
d) current performance with past performance.
The last stage in the development of any advertising campaign is a) creating the advertising platform. b) developing the media plan. c) creating the advertising message. d) evaluating the effectiveness of advertising. e) defining the advertising objectives.
d) evaluating the effectiveness of advertising.
A marketer that targets customers based on marital status and the presence and age of children is using a) behavioristic segmentation. b) lifestyle variables. c) psychographic variables. d) family life cycle. e) phase of life segmentation.
d) family life cycle.
The purpose of the ___________ stage in personal selling is to determine customers' problems and questions about using the product. a) prospecting b) approach c) overcoming-objections d) follow-up e) closing
d) follow-up
The final stage of the selling process is a) closing. b) trial close. c) presentation. d) follow-up. e) overcoming objections.
d) follow-up.
Retail salespeople are classified as a) order getters. b) support personnel. c) trade salespeople. d) inside order takers. e) field order takers.
d) inside order takers
Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coke, to name a few. These are examples of a) product modifications. b) functional modifications. c) aesthetic modifications. d) line extensions. e) product lining.
d) line extensions.
The best advice for recruiting and selecting salespeople for one's organization would be a) follow a clear set of generally accepted job characteristics when determining an applicant's qualifications. b) keep the expensive stages near the beginning of the recruiting process. c) find out how long the applicant plans to stay with the company. d) make recruitment a continuous activity aimed at seeking out the best applicants. e) recruit primarily from educational institutions.
d) make recruitment a continuous activity aimed at seeking out the best applicants.
The stage of the personal selling process in which the salesperson attempts to make a favorable impression, gather information about the customer's needs and objectives, and build a rapport with the prospective customers is called a) prospecting. b) preapproach. c) approach. d) making the presentation. e) overcoming objections.
d) making the presentation.
Roberts Electronics calculates that if it produces 15 radar detectors, its costs are $1,500, and if it produces 16 radar detectors, its costs are $1,590. In this instance, $90 is the firm's ___________ cost. a) average b) fixed c) variable d) marginal e) average variable
d) marginal
The type of competitive structure that exists in the case where there are almost no substitutes for a product is a(n) a) monopolistic competition. b) oligopoly. c) pure competition. d) monopoly. e) noncompetition.
d) monopoly.
The four major competitive structures are a) monopolies, oligopolies, oligopolistic monopolies, and pure competition. b) pure competition, heavy competition, moderate competition, and light competition. c) brand, product, total budget, and generic. d) oligopolies, monopolies, monopolistic competition, and pure competition. e) monopolies, limited competition, oligopolistic competition, and pure competition.
d) oligopolies, monopolies, monopolistic competition, and pure competition.
A business that contributes resources to the community to improve the quality of life is taking on a(n) ___________ responsibility. a) ethical b) legal c) cost d) philanthropic e) economic
d) philanthropic
Developing a list of potential customers is called a) preapproaching. b) surveying. c) scouting. d) prospecting. e) screening.
d) prospecting.
When a manufacturer rewards retailers based on the number of pieces moved through their scanners, this sales promotion method is known as a a) merchandise allowance. b) count-and-recount allowance. c) buy-back allowance. d) scan-back allowance. e) scan-count allowance.
d) scan-back allowance.
Temporary and dynamic factors that result from a particular set of circumstance a consumer is facing when making purchase decisions characterize a) enduring involvement. b) extended problem solving. c) selective exposure. d) situational involvement. e) selective retention.
d) situational involvement.
A salesperson finds and analyzes information about each prospect's specific product needs, current use of and feeling about brands, and personal characteristics during a) prospecting. b) the approach. c) presentation preparation. d) overcoming objections. e) the preapproach.
e
A salesperson should try to close the sale a) at the end of the sales presentation. b) during the preapproach. c) about halfway through the sales presentation. d) after overcoming the biggest objection. e) several times during the sales presentation.
e
Lauren is a concert promoter who works for pop star Justin Timberlake. She works very hard to make sure most of Justin's concerts are sold out because she understands the concept of perishability, which means a) because the concert is not tangible, customers will have a difficult time judging its quality in advance. b) the production of the concert and the consumption of the concert by the fans cannot be separated so tickets must be sold. c) a high level of interaction will exist between the customers and the musicians, which makes the customers' presence necessary. d) that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again. e) that each concert is different and customers will miss a unique experience if they are not present at the concert.
d) that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again
The step of the personal selling process in which a salesperson contacts a potential customer is called a) making the presentation. b) cold calling. c) the preapproach. d) the approach. e) prospecting.
d) the approach.
During his presentation to Mrs. French about a high-end gourmet oven, Brian asks, "Would you prefer black or stainless steel?" This is an example of a a) referral. b) recommendation. c) follow up. d) trial close. e) closing argument.
d) trial close.
Amtrak prices its tickets so that it is less expensive to travel on weekends than during the week when there is heavy business travel. This illustrates ___ pricing
demand-based
If General Motors determines that it wants to sell 200,000 Chevrolet Acadias and sets the price at $29,500 because it knows that at that price it will reach that goal, the firm would be using a ___ pricing method
demand-based
If a product is priced based on how many or how few people want it at a particular time and place, ___ pricing is being used
demand-based
During July and August, Lakewood Links Golf Course, located in S.C., offers weekday rates of $13 for a round of golf with a cart. During the rest of the year, the weekday rates are between $25 and $35. This is an example of the use of
demand-based pricing
Sherry Sullivan, Kevin Miller's sales manager, points out to him that his last shopper in the housewares department didn't seem involved as he explained the new food processor to her. She suggests that he use a ___________ as part of his presentation next time
demonstration
Although a cosmetics brand would like to use _____ as a consumer sales promotion method, this method has extremely high labor costs that are more affordable for higher-end make-up companies.
demonstrations
Following Up
determine if the order was delivered on time & was installed properly; whether the customer has problems or questions about the product; determine the customer's future product needs.
A company may determine how many sales calls per year it needs to serve customers effectively and divide that by the average number of sales calls made by one salesperson in order to
determine sales force size.
When establishing prices, a marketer's first step is to:
develop pricing objectives
prospecting
developing a data-base of potential customers
recruiting
developing a list of qualified applicants for sales positions
. What is customer-segmented pricing?
different customers pay different prices for the same product or service. i.e. Museum ,may charge a lower admission for students and seniors citizens
The fact that senior citizens are charged a lower price at movie theatres than younger adults is an example of ___ pricing
differential
Trade Salespeople
direct much of their efforts toward helping customers, especially retail stores & promoting the products. Food producers and processors commonly employ trade salespeople.
Technical Salespeople
direct their efforts toward the organization's current customers by giving technical assistance regarding applications of the product, system designs, and installation procedures. Technical sales personnel frequently are employed to sell technical industrial products.
Sony management decided to use skimming as a pricing strategy for its newest line of HDTV sets. It should be aware that this strategy does NOT
discourage competitors from entering the market
A Macy's manager designs the casual clothing department such that one of Macy's private label pairs of jeans, priced at $24.99, is positioned next to a national brand of jeans, such as Levis, priced at $39.99. What is the manager attempting to accomplish? a) Everyday low prices strategy b) Odd-even pricing strategy c) Prestige pricing strategy d) Special-event pricing strategy e) Reference pricing strategy
e
A company may determine how many sales calls per year it needs to serve customers effectively and divide that by the average number of sales calls made by one salesperson in order to a) recruit appropriate salespeople. b) set sales force calling objectives. c) compensate salespeople fairly. d) train its salespeople. e) determine sales force size.
e
A cost-based pricing method commonly used in retail is called a) value pricing. b) cost-plus pricing. c) cost discounting. d) differential pricing. e) markup pricing.
e
A market share objective a) is not recommended when sales for the total industry are declining. b) is not especially useful when sales for the total industry are increasing. c) is not especially useful when sales for the total industry are flat. d) is useful primarily in an industry where total sales are increasing. e) can be used effectively whether total industry sales are rising or falling.
e
A price-skimming strategy assumes that a) the initial demand is highly elastic. b) the product is efficient. c) it will be difficult to recoup development costs. d) all consumers have homogeneous tastes. e) the initial demand is highly inelastic.
e
A problem associated with _____ is that consumers can predict when prices will be lowered and delay purchases until that time. a) random discounting b) penetration pricing c) reference pricing d) everyday low pricing e) periodic discounting
e
A support salesperson who usually advises customers on product characteristics and application, system design, and installation procedures is a(n) a) trade salesperson. b) inside order taker. c) tech support worker. d) missionary salesperson. e) technical salesperson.
e
All of the following are pricing strategies used by companies establishing prices of multiple products within a product line except a) premium pricing. b) price lining. c) captive pricing. d) bait pricing. e) penetration pricing.
e
All of the following are psychological techniques except a) customary pricing. b) prestige pricing. c) reference pricing. d) odd-even pricing. e) price skimming.
e
An arrangement in which a manufacturer pays a certain amount of a retailer's media costs for advertising that manufacturer's products is a) a buy-back allowance. b) a merchandise allowance. c) premium money. d) push money. e) cooperative advertising.
e
Company sales records, commercial databases, newspaper announcements, telephone directories, and public records are all sources used for a) surveying. b) screening. c) researching. d) preapproaching. e) prospecting.
e
Competitors' prices, along with the marketing variables they emphasize, are determining factors in a) the instability of prices in a particular industry. b) using markup pricing for consumer goods. c) how much marketing research a firm needs to collect. d) using differential pricing to demonstrate quality differences. e) how important price will be to customers.
e
For custom-made equipment or commercial construction projects, which pricing method is most likely used? a) Prestige b) Premium c) Differential d) Return-on-investment e) Cost-plus
e
Goods that are priced primarily based on the way they have always been priced are examples of a) traditional pricing. b) professional pricing. c) everyday low prices. d) price lining. e) customary pricing.
e
Heinz uses various techniques such as coupons, free samples, and consumer contests to encourage consumers to try its products. All of these marketing activities are considered a) trade sales promotion methods. b) consumer incentives. c) consumer sweepstakes. d) buying allowances. e) consumer sales promotion methods.
e
If General Mills looks at Kellogg's cereal prices as the primary method of determining its own prices, General Mills is using a) price fixing. b) price discrimination. c) demand-based pricing. d) market share pricing. e) competition-based pricing.
e
If General Motors determines that it wants to sell 200,000 Chevrolet Acadias and sets the price at $29,500 because it knows that at that price it will reach that goal, the firm would be using a ___________ pricing method. a) cost-plus b) competition-based c) psychological d) comparison e) demand-based
e
Jennifer Clarkson, a sales representative for a publisher of college textbooks, had the southern half of the state as a sales territory. Last year, the director of marketing for the publishing company told Jennifer's sales manager to increase her territory to the entire state. Now Jennifer's customers are less satisfied with the company. They are most likely to blame ___________ for their reduced level of customer satisfaction. a) the textbook authors b) the company's chief executive officer c) the marketing manager d) the sales manager e) Jennifer
e
Personal selling goals include finding prospects, convincing prospects to buy, and a) monitoring new products being developed. b) being aware of competitors' sales activities. c) seeking one-sale customers. d) avoiding repeat transactions. e) keeping customers satisfied.
e
Price leaders, comparison discounting, and special-event pricing are applications of a) psychological pricing. b) professional pricing. c) product-line pricing. d) bait-and-switch. e) promotional pricing.
e
Scott Bartello, a salesperson for Xerox, develops a list of potential customers and evaluates them on the basis of their ability, willingness, and authority to purchase copy machines. This process is called a) customer search. b) preapproach. c) approaching the customer. d) audience selection. e) prospecting.
e
Some grocery stores collect data on competitive prices a) by calling their competitors. b) on a quarterly basis. c) through stores' purchase data. d) from their resellers. e) by using full-time comparison shoppers.
e
The salesperson must attract and hold the prospect's attention, stimulate interest, and spark a desire for the product during the a) prospecting. b) preapproach. c) follow up. d) approach. e) sales presentation.
e
To attract customers into a store, Safeway advertises its milk at less than cost, hoping that customers will purchase other groceries as well. This pricing strategy is called a) price lining. b) special-event pricing. c) differential pricing. d) comparison discounting. e) price leader pricing.
e
When Gabriella logs on to Dell's website, she sees a notebook model priced well below $1,000. As she continues through the site to view the other options, she realizes the first one she saw was the cheapest model available, but she of course wants more features. Dell is utilizing a) bait and switch. b) price lining. c) captive pricing. d) penetration pricing. e) bait pricing.
e
When Levi's agrees to pay JC Penney's money for providing television advertising and Sunday newspaper sales fliers emphasizing Levi's jeans, Levi's is offering a) premium money. b) cooperative advertising. c) a dealer loader. d) a buying allowance. e) a merchandise allowance.
e
When better market conditions prevail or when company growth occurs, a company may suffer if it a) lowered its sales force objectives. b) recruited additional salespeople. c) decided to use a combination compensation plan. d) provided additional training for its sales force. e) cut back the size of its sales force.
e
Which of the following involves building mutually beneficial long-term associations with a customer—usually a business customer—through regular communications over prolonged periods of time. a) CRM selling b) Missionary selling c) Exclusive selling d) Team selling e) Relationship selling
e
Personal selling goals include finding prospects, convincing prospects to buy, and
keeping customers satisfied.
Which of the following is a requirement for setting pricing objectives? a) The objectives should be short-term oriented. b) There should be only one pricing objective. c) An evaluation of competitors' prices should be made. d) The cost structure should be identified. e) The objectives should be explicitly stated.
e
Which of the following is least likely to be directly involved in actually making sales? a) Order taker b) Current-customer salesperson c) Order getter d) Field order taker e) Support sales personnel
e
___________ are offers of cash to customers who purchase a specific product, and ___________ are offers of cash to customers who purchase a specific quantity of a specific product. a) Rebates; reimbursements b) Cents-off; refunds c) Rebates; premiums d) Buy-back allowances; money refunds e) Rebates; money refunds
e
Which of the following is not true of NAFTA? a) The agreement has a long adjustment phase-in time period. b) Increased competition should lead to a more efficient market. c) It will provide additional opportunities for the United States in long-term affiliations with other countries in the Western hemisphere. d) It is controversial. e) Business licensing requirements have been increased.
e) Business licensing requirements have been increased.
Which of the following factors have contributed the least to the growth of services in the U.S. economy? a) Increased interest in travel and entertainment b) Increased number of women in the workforce c) Increased proportion of older people in the United States d) Increased interest of Americans in fitness and recreation e) Increased number of high-tech goods
e) Increased number of high-tech goods
Which of the following involves building mutually beneficial long-term associations with a customer—usually a business customer—through regular communications over prolonged periods of time. a) CRM selling b) Missionary selling c) Exclusive selling d) Team selling e) Relationship selling
e) Relationship selling
Which of the sales force compensation methods is easy to administer, yields more predictable selling expenses, and provides sales managers with a large degree of control over salespeople? a) Straight commission b) Salary plus bonus c) Salary and commission d) Straight commission and combination e) Straight salary
e) Straight salary
When Levi's agrees to pay JC Penney's money for providing television advertising and Sunday newspaper sales fliers emphasizing Levi's jeans, Levi's is offering a) premium money. b) cooperative advertising. c) a dealer loader. d) a buying allowance. e) a merchandise allowance.
e) a merchandise allowance.
Heinz uses various techniques such as coupons, free samples, and consumer contests to encourage consumers to try its products. All of these marketing activities are considered a) trade sales promotion methods. b) consumer incentives. c) consumer sweepstakes. d) buying allowances. e) consumer sales promotion methods.
e) consumer sales promotion methods.
When better market conditions prevail or when company growth occurs, a company may suffer if it a) lowered its sales force objectives. b) recruited additional salespeople. c) decided to use a combination compensation plan. d) provided additional training for its sales force. e) cut back the size of its sales force.
e) cut back the size of its sales force.
A company may determine how many sales calls per year it needs to serve customers effectively and divide that by the average number of sales calls made by one salesperson in order to a) recruit appropriate salespeople. b) set sales force calling objectives. c) compensate salespeople fairly. d) train its salespeople. e) determine sales force size.
e) determine sales force size
After the advertising budget is determined, the next step in creating an advertising campaign is a) creating the advertising message. b) creating the advertising platform. c) evaluating the advertising objectives. d) executing the campaign. e) developing the media plan.
e) developing the media plan.
When marketing researchers try to manipulate an independent variable and measure the resulting changes in a dependent variable, they are engaging in a) surveys. b) secondary data gathering. c) interviews. d) observation. e) experimentation.
e) experimentation.
Personal selling goals include finding prospects, convincing prospects to buy, and a) monitoring new products being developed. b) being aware of competitors' sales activities. c) seeking one-sale customers. d) avoiding repeat transactions. e) keeping customers satisfied.
e) keeping customers satisfied.
Janetta Light tells her sales manager that she will be devoting more effort to ___________ in the coming weeks, as her list of potential customers has dwindled below the level of 30 firms recommended by the selling plan. a) approaching customers b) preapproaching c) closing the sale d) following up e) prospecting
e) prospecting
Company sales records, commercial databases, newspaper announcements, telephone directories, and public records are all sources used for a) surveying. b) screening. c) researching. d) preapproaching. e) prospecting.
e) prospecting.
Scott Bartello, a salesperson for Xerox, develops a list of potential customers and evaluates them on the basis of their ability, willingness, and authority to purchase copy machines. This process is called a) customer search. b) preapproach. c) approaching the customer. d) audience selection. e) prospecting.
e) prospecting.
Age, rate of product use, location, and gender are all examples of common a) demographic variables. b) geographic characteristics. c) targeting strategies. d) psychographic variables. e) segmentation variables.
e) segmentation variables.
A salesperson should try to close the sale a) at the end of the sales presentation. b) during the preapproach. c) about halfway through the sales presentation. d) after overcoming the biggest objection. e) several times during the sales presentation.
e) several times during the sales presentation.
On a break between classes, Kelley Macon selects two magazines and mails the Publishers Clearing House entry form. She doubts that she will win $10 million, but she never passes up a chance to participate in a a) premium. b) consumer contest. c) sampling. d) sales contest. e) sweepstakes.
e) sweepstakes.
A support salesperson who usually advises customers on product characteristics and application, system design, and installation procedures is a(n) a) trade salesperson. b) inside order taker. c) tech support worker. d) missionary salesperson. e) technical salesperson.
e) technical salesperson.
A salesperson finds and analyzes information about each prospect's specific product needs, current use of and feeling about brands, and personal characteristics during a) prospecting. b) the approach. c) presentation preparation. d) overcoming objections. e) the preapproach.
e) the preapproach.
"Mrs. Brucker, you would agree that this is the most attractive car interior in this price range, wouldn't you?" Cliff Davis, a salesperson at Midtown Ford, was using a(n) ___________ when he made this statement. a) referral b) objective c) bandwagon approach d) follow-up e) trial close
e) trial close
Consumer Sales Promotion Methods
encourage or stimulate consumers to patronize a specific retail store or try a particular product.
Promotional efforts designed to reduce the risk to consumers for using a product for the first time seek to:
encourage product trial.
All of the following are major steps in developing a new product except
evaluation of competitors' efforts
Costs that do not vary with changes in the number of units produced and sold are called ____ costs.
fixed
Frequent-User Incentives
foster customer loyalty to a specific company or group of cooperating companies that provide extra incentives for patronage. reward loyal customers and also generate data that helps marketers foster desirable customer relationships.
Which of the following is an example of a trade sales promotion method?
free merchandise
The maker of Huggies diapers is developing a media plan that involves trying to expose its target audience to its new advertisement about ten times. This is advertising:
frequency.
Which of the following is most likely to stimulate customer loyalty?
frequent user incentives
Jamba Juice offers its customers a stamp card that allows them to receive a free smoothie after they have filled an entire card. This is an example of a
frequent-user incentive.
Merchant wholesalers can be divided into two basic categories:
full-service and limited service.
A marketer sometimes uses temporary price reductions to
gain market share.
The decision of Macy's to use even prices such as $60 for a Ralph Lauren Polo shirt is an application of odd-even pricing, and even prices are often used to
give a product an upscale or exclusive image
If Pacific Power and Light increased its rates 10 percent and experienced only a 2 percent reduction in the demand for power, the demand would be
inelastic.
Michelle works for a company that sells rotisseries for chicken and other foods. She answers phone calls from customers who see infomercials on TV and call to order the product. Michelle is considered a(n)
inside order taker.
Michelle works for a company that sells rotisseries for chicken and other foods. She answers phone calls from customers who see infomercials on TV and call to order the product. Michelle is considered a(n):
inside order taker.
The two groups of order takers in personal selling are
inside order takers and field order takers.
Retail salespeople are classified as
inside order takers.
The Robert Morris University runs a series of ads throughout the Mid Atlantic area on how friendly and helpful its faculty, staff, and students are as well as how outstanding its academic programs are. This type of promotion would best be characterized as:
institutional advertising.
If the terms of a business exchange are 2/10 net 30, this means that the transaction
involves a cash discount if paid within ten days
If the terms of a business exchange are 2/10 net 30, this means that the transaction
involves a cash discount if paid within ten days.
Team Selling
involves the salesperson joining with people from the firm's financial, engineering, and other functional areas, is appropriate for expensive, complex, high-tech business products. These products are so complex that a single salesperson can no longer be expert in all aspects of the product and purchase process.
What is the maturity stage of the product life cycle?
is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits level off or decline because if increased marketing outlays to defend the product against competition
Sales promotion
is an activity and/or material that acts as a direct inducement, offering added value or incentive for the product to resellers, salespeople, or consumers.
What is the decline stage of the product life cycle?
is the period when sales fall off and profits drop. When this happens, the marketer considers pruning items from the product line to eliminate those not earning a profit. The marketer may also cut promotion efforts, eliminate marginal distributors and finally, plan to phase out the product. In this stage, marketers must determine whether to eliminate the product or try to reposition it to extend its life.
A product under nonprice competition would most likely not succeed in the market if
it is easy to duplicate.
A product is a price leader when
it is sold at less than cost in the hope that sales of other products will increase
premiums
items offered free or at a minimal cost as a bonus for purchasing a product
Premiums
items offered free or at a minimum cost as a bonus for purchasing a product.
Daphne King of Cleborn Pharmaceuticals tells a sales management class at the state university that her job is to call on doctors and explain the benefits of new prescription drugs that her firm develops. Daphne would call herself a(n):
missionary salesperson.
Jin Xiao, a trained engineer, is a salesperson for a chemical manufacturer. He provides current customers with advice about a product's characteristics and applications. He is a(n)
missionary salesperson.
Zack Freedman is an experienced salesperson who has worked for the same company for 20 years. When he is informed that he must attend a training seminar the following Tuesday, he believes it will most likely be about
new-product information.
A single page of typewritten copy that has 300 words or less and describes a company event or product is called a:
news release.
Justin Caprese phones Ben Kirkland of Southside Furniture to inform him that if he will increase his recent order of 15 mattress sets to 20, he will receive a 14 percent price reduction. This offer is due to a recent overstock condition at the factory and will not be available in the future. The discount offered here is
noncumulative.
Marketers must take steps to make sure that the pricing objectives they set are consistent with the organization's ___ objectives and ___ objectives
overall; marketing
The management at Allied Electronics is having difficulty in raising the introductory price on system components to cover the increased costs of producing the sensing devices for home security systems. Apparently, Allied using a(n) ___ strategy in pricing these components
penetration
Paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation is:
personal selling.
The marketers of a particular brand of ice cream have decided to delete their line of ice cream bars. They will do so by letting the product decline, and they will not change the current marketing strategy. This method of deletion is called
phase-out
what are the two types of product advertising?
pioneer & competitive
Signs, counter pieces, racks, and self-service cartons are all forms of:
point-of-purchase displays.
At one time, Wheaties offered two free golf balls with the purchase of a twin pack of Wheaties cereal featuring Tiger Woods. This is an example of a
premium.
If researchers at Merck Pharmaceuticals develop a cure for prostate cancer, the best way to announce this to the public and get wide media coverage would be through a:
press conference.
If Ford adds a driver-side sliding door, side-impact airbags, and a small television with DVD player to its Freestar van, it is differentiating its product based on
product features
If an organization sets prices to recover research and development expenses and establish a premium quality image for its product, it would be using a ___ pricing objective
product quality
Research indicates that both market share and ___ are good indicators of profitability
product quality
The pricing of Clinique make up considerably higher than brands such as Cover Girl, Revlon, and Maybelline is used to communicate ___, which is the company's primary pricing objective
product quality
The perception of price depends on a
product's actual price and consumers' expectations regarding price
The perception of price depends on a
product's actual price and consumers' expectations regarding price.
What type of pricing strategy is used in situation where demand for a product is price inelastic and the seller has an ethical responsibility not to overcharge the client
professional pricing
One of Westin, Inc.'s objectives is to achieve a 25-percent return on its overall sales. This is an example of a ____ pricing objective.
profit
Westin Inc. has an objective of achieving a 25 percent return from its overall sales. This is an example of a ___ pricing objective
profit
If the push policy is used in promoting a product, the firm:
promotes only to the next marketing institution down the marketing channel.
Price leaders, comparison discounting, and special-event pricing are applications of
promotional pricing
cents-off offers
promotions that allow buyers to pay less than the regular price to encourage purchase
Janetta Light tells her sales manager that she will be devoting more effort to ___________ in the coming weeks, as her list of potential customers has dwindled below the level of 30 firms recommended by the selling plan.
prospecting
The first step in the selling process is
prospecting
Elements of the Personal Selling Process
prospecting, pre-approach, approach, presentation, overcoming objections, closing the sale & follow up
Company sales records, commercial databases, newspaper announcements, telephone directories, and public records are all sources used for
prospecting.
Company sales records, commercial databases, newspaper announcements, telephone directories, and public records are all sources used for:
prospecting.
Developing a list of potential customers is called
prospecting.
Sayyid's company has launched a new product line, and he is put in charge of sales. He decides his first step will be to find potential customers in the company's sales records. Sayyid is:
prospecting.
Scott Bartello, a salesperson for Lamkin Golf Products, develops a list of potential customers and evaluates them on the basis of their ability, willingness, and authority to purchase copy machines. This process is called:
prospecting.
When a company attempts to influence a consumer's perception of price to make a product's price more attractive and reduce "sticker shock," it is using a ___ pricing strategy.
psychological
Communication through the use of brochures, annual reports, event sponsorships, and news stores is referred to as:
public relations.
Sharper Image likes to use nonpersonal communication in news story form such as press releases for its new and improved products. This is an example of:
publicity.
Aaron Epstein tells his fellow retail salesperson at Zales Jewelers that during the second quarter he is going to sell all the Alance watches he can and use his extra earnings to go to Cancun. He exclaims, "Can you believe the __________ program they have on for this quarter?"
push money
For customers, value is function of the product's
quality attributes
If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ____________ discount.
quantity
If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the
quantity demanded goes down.
A marketer is most likely to set prices according to a cash-flow objective when a
quick return on investment is desired
Factors such as climate, seasons, and holidays tend to lead to the promotional objective of:
reducing sales fluctuations.
. What is meant by a product design?
refers to how a product is conceived, planned, and produced. Design is a very complex topic because it involves the total sum of all the product's physical characteristics.
What is meant by the consistency of quality?
refers to the degree to which a product has the same level of quality over time. Consistency means giving consumers the quality they expect every time they purchase the product.
Walmart, Macy's Nordstrom's and Toys R Us are examples of:
retailers.
Most pricing objectives based on ___ are achieved by trial and error because not all cost and revenue data are available when prices are set
return on investment
Controlling and Evaluating Sales Force Performance
sales management needs information, which can be obtained from salespersons' call reports, customer feedback, and invoices.
The salesperson must attract and hold the prospect's attention, stimulate interest, and spark a desire for the product during the _____ step.
sales presentation
The salesperson must attract and hold the prospect's attention, stimulate interest, and spark a desire for the product during the
sales presentation.
consumer games
sales promotion methods in which individuals compete for prizes based primarily on chance
rebates
sales promotion techniques in which a consumer receives s specified amount of money for making a single product purchase
consumer sales promotion methods
sales promotion techniques that encourage consumers to patronize specific stores or try particular products
money refunds
sales promotion techniques that offer consumers a specified amount of money when they mail in a proof of purchase, usually for multiple product purchases
An activity and/or material that offers added value or incentive to resellers, salespeople, or consumers is:
sales promotion.
When McDonald's uses the Monopoly game in which customers receive game pieces with each visit and try to assemble a set of properties to win prizes, McDonald's is utilizing
sales promotion.
support personnel
sales staff members who facilitate selling but usually are not involved solely with making sales.
The greatest amount of responsibility for providing customer satisfaction falls on the shoulders of
salespeople
Combination compensation plan
salespeople are paid a fixed salary plus a commission based on sales volume.
Straight salary compensation plan
salespeople are paid a specified amount per time period, regardless of selling effort, and this sum remains the same until they receive a pay increase or decrease.
trade salespeople
salespeople involved mainly in helping a producers customers promote a product
order takers
salespeople who primarily seek repeat sales
order getters
salespeople who sell to new customers and increase sales to current customers
Preapproach
salesperson finds & analyzes information about each prospect's specific product needs, current use of brands, feelings about available brands, & personal characteristics, identifying key decision makers, reviewing account histories & problems, contacting other clients 4 information, assessing credit histories & problems, preparing sales presentations, identifying product needs, & obtaining relevant literature.
Realizing that her firm's sales promotion budget was small and cut by 30 percent for the coming year, Stacey Baronas rules out ___________ as playing a role in her sales promotion plan.
samples
When a manufacturer rewards retailers based on the number of pieces moved through their scanners, this sales promotion method is known as a
scan-back allowance.
Markup is measured either as a percentage of ___ or a percentage of ___
selling price; cost
A salesperson should try to close the sale
several times during the sales presentation.
A retailer is an organization that purchases products for the purpose of reselling them to:
ultimate consumers.
Maintaining a certain market share, meeting competitors' prices, maintaining a favorable image, and achieving price stability are all associated with a ___ pricing objective
status quo
What type of pricing objective would an organization use if it were in a favorable position and desired nothing more?
status quo
Which pricing objective de-emphasizes price and can lead to a climate of nonprice competition in an industry?
status quo
Which type of pricing objective can reduce a firm's risk by helping to stabilize demand for its products?
status quo
When marginal cost is equal to marginal revenue, the firm should
stop producing additional units to maximize profits.
technical salespeople
support salespeople who give technical assistance to a firm's current customers
missionary salesperson
support salespeople, usually employed by a manufacturer, who assist the producer's customers in selling to their own customers
Running a bike sale in order to generate enough cash flow to pay creditors is typical in a situation in which a firm's primary pricing objective is
survival
When a company adjusts price levels so that it can increase sales volume to levels that match the organization's expenses, it is said to employ a ___ objective
survival
On a break between classes, Kelley Macon selects two magazines and mails the Publishers Clearing House entry form. She doubts that she will win $10 million, but she never passes up a chance to participate in a
sweepstakes.
On a break between classes, Kelley enters her contact information on the Publishers Clearing House site. She doubts that she will win $10 million, but she never passes up a chance to participate in a
sweepstakes.
On a break between classes, Kelly checks her smartphone and enters her contact information on the publishers clearing house site. She doubts that she will win $10 million, but she never passes up a chance to participate in a:
sweepstakes.
The type of salesperson that usually requires training in physical science or engineering is the
technical salesperson.
Establishing Sales Force Objectives
tell salespeople what they are expected to accomplish during a specified period. They give the sales force direction and purpose. should be stated in precise, measurable terms and be specific about the time period and geographic areas involved. are usually established for both the total sales force and each individual salesperson.
A sale that advertised prices "up to 65% off" the original prices uses
tensile pricing
In designing sales territories, a sales manager considers several major factors. The territories must be constructed so that sales potential can be measured; the shape of the territories should facilitate salespeople's activities to provide the best possible coverage of customers; and
territories should be designed to minimize selling costs.
relationship selling
the building of mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time
Rebates
the consumer is sent a specified amount of money for making a single product purchase.
Reinforcement advertising is primarily targeted at:
the current users of a particular product.
Which of the following are consumer sales promotion methods that Presto is using for the new stovetop grill?
the customer contest and the in-store rebate
Price is a key element in the marketing mix because it relates directly to
the generation of total revenue.
preapproach
the most successful salespeople are thorough in this. It involves identifying key decision makers, reviewing account histories and problems, contacting other clients for information, assessing credit histories and problems, preparing sales presentations, identifying product needs, and obtaining relevant literature.
A salesperson finds and analyzes information about each prospect's specific product needs, current use of and feeling about brands, and personal characteristics during
the preapproach.
A salesperson finds and analyzes information about each prospect's specific product needs, current use of and feeling about brands, and personal characteristics during:
the preapproach.
closing
the stage in the personal selling process when the salesperson asks the prospect to buy the product
Marketers improve their ability to establish prices appropriately when
they know prices charged for competing brands
Bundle pricing may be perceived to be of value by customers because
they prefer buying a combination of bundled products in a single transaction, which saves time, effort, and perhaps money
Monopolies usually keep their prices at a level that generate a reasonable, but not excessive, return primarily because
they want to avoid government regulations on their pricing.
Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of a ___________ discount.
trade
Any marketing tactic used to stimulate wholesalers and retailers to carry a producer's products and market those products more aggressively is a
trade sales promotion method.
Jana works for Hormel Foods and she frequently sets up special displays and distributes samples of Hormel products to customers in supermarkets. Jana would best be classified as a(n)
trade salesperson.
When Cadillac buys headlights from Delco (both of which are divisions of General Motors), ___________ pricing occurs.
transfer
