Business

Which of the following is an advantage of personal selling?

it allows business owners to find out the buyers' main concerns and address them

Which of the following is true of advertising?

it involves presentation of a company's image

An item's capability of being touched, seen, tasted, or felt is called ____.

tangibility

The group of people on which a marketer focuses promotion and sales efforts is called ____.

target market

If a business owners track sales by purchase basis

they can easily decide which marketing efforts to continue

Business owners can figure how to better target ads or promotions to particular types of customers if:

they link sales and purchase basis to the type of customer

Advertising is often used to support the corporate identity and value propositions that are established through public relations efforts.

true

it costs five times as much to get a purchase from a new customer to an existing one

true

Choose two (2) price lowering techniques that a small business owner can adopt without starting price wars or reducing the quality perception of his or her products? Give a real world examples of each. Ex. Macy's Big Blowout Sale in May, why in May???

A small business can offer referral services to their customers, for instance if they bring in a new paying customer, a discount can be given for doing so. The business can also offer coupons for a limited time, to attract customers.

What is segmentation? what are the typical ways of dividing the market into different segments?

Segmentation is the process of dividing the market into smaller portions of people who have certain common characteristics. Dividing the market into different segments can be done in a number of ways. Some of the more typical ways include geographically (in a certain city or neighborhood), demographically (income, age, religion, ethnicity, and many others), or by the benefits sought (clothing that is practical, stylish, for a particular sport, etc.). Most companies will use several ways of segmenting to come up with their final target market.

Which of the following is most likely to be an example for an elastic product?

T-shirts

What does total product mean? How does this approach help a small business owner?

The total product means the entire bundle, including extras such as service, warranty, delivery and what the product means to the customer. This approach helps the small business owner by looking at the whole picture of the value of the product and not just the marked price.

What are the four key factors for determining an optimum price?

Timing, Competition, Location, and Condition

Setting prices higher than the competition without providing the customers with the perception of receiving greater value will lead to overall volume.

True

Trendiness refers to:

a concept in public recognition which alludes to the fit of the topic to current fashion or public interest

Buy one large pizza and get a 25 percent off on the next purchase, is an example of

a loyalty program

Diversification is a strategy whose goal is growth, based on:

adding new products or services to the firm's existing collection of offerings.

By adopting the pricing technique of loss leaders, a firm most likely aims to:

attract traffic towards its products.

Shop Sure Inc. sells five bars of bathing soap for the price of four and three bottles of room freshener for the price of two. This is an example of____.

bonus-back pricing

a __ is defined as a Web-based program that uses artificial intelligence techniques to automate tasks such as searches

bot

A clothing company that divides its market using characteristics of clothing such as practical, stylish, or for a particular sport, etc. is segmenting the market ____.

by benefits sought

An inconsistency between experience and belief refers to:

cognitive dissonance

Doubt that occurs after a purchase has been made is called____.

cognitive dissonance

The prices of chewing gums, candy bars are traditionally fixed at 50 cents; this limits the industry from raising its prices beyond a certain level. This pricing is an example of ___.

customary pricing

Dividing the market into different segments by income, age, or religion constitutes segmenting the market___.

demographically

Entrepreneurs can use the AIDA formula to write press releases well. In this AIDA formula, "D" stands for ____.

desire

a __ is best described as a small group (8-20 people) that is asked to meet to discuss a series of questions about a particular product or service

focus group

A(n) ___ is best defined as a product for which there are few substitutes for and for which a change in price makes very little difference in quantity purchased.

inelastic product

Smart Home, a retailer for consumer electronics, sells a reputed brand's desktops at near cost price. These desktops are located at the end of the store so that the customers notice the other products in the store before they pick the desktop. As a result the sales of printers, USB devices, web cameras, and other electronic products in the store have increased. This is an example for _____ pricing technique. Answer

loss leaders

if a business is trying to grow, the right price for its products is one that is

necessary to capture a desired market share given an anticipated level of sales volume.

Charging lower prices at certain times to encourage customers to come during slack periods is known as__.

off-peak pricing

In personal selling, _____ means finding out about the clients before approaching them.

preperation

In personal selling, ___ means cleaning up the list to remove potential clients that are unable or unlikely to buy a business owner's product.

prequalifying

Key chains, pens, coffee mugs, or embossed briefcases are examples of___.

promotional nolveties

Which of the following is most likely to be an example of a good-dominated product?

purchasing a sewing machine with a warranty

Paying for a local organizations needs in exchange for recognition is referred to as

sponsership

The primary goal of penetration is to:

steal competitors' market share

A(n)__ typically means the core product plus features that tend to differentiate the product from competition.

augmented product

the close of a sale is the end of a sale

false

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

markup pricing