Question 1

Advertising is a global activity.

Accepted Answer

A) True 
 B)False

Question 2

Hoplan, a motel chain, utilizes a pricing strategy of maintaining continuous low prices rather than relying on sales. This strategy is an example of _____ pricing.

Accepted Answer

A)   skimming
B)   psychological
C)   everyday low
D)   penetrationE) All of the above
F) B) and C)

Question 3

Viral advertising is often quite expensive.

Accepted Answer

A) True 
 B)False

Question 4

Personal selling is often used for products that are technically complex.

Accepted Answer

A) True 
 B)False  True

Question 5

A recent newspaper article reported that the CEO of Lake-Marker Corporation has been accused of accounting fraud. This article is an example of publicity.

Accepted Answer

A) True 
 B)False  True

Question 6

Sally is an account representative for an office supply corporation who frequently provides demonstrations to business professionals. When a prospect complains about the company's fax machine, Sally should view the situation as an opportunity to _____.

Accepted Answer

A)   determine if the prospect has the ability to pay for the machine
B)   propose alternative purchases
C)   revise her approach to the prospect
D)   extend the presentation and answer questionsE) All of the above
F) None of the above

Question 7

A leading manufacturer of exercise bicycles ran a full-page advertisement in a health magazine differentiating the price of its bicycle with that of a leading competitor. The manufacturer is using _____.

Accepted Answer

A)   comparative advertising
B)   reminder-oriented advertising
C)   a pushing strategy
D)   advocacy advertisingE) B) and D)
F) B) and C)

Question 8

A company's employee volunteers clean up a neighborhood playground. In the process, employees hand out free company product samples. This is an example of a publicity campaign.

Accepted Answer

A) True 
 B)False

Question 9

Greta is a marketing manager of a bank who regularly sends materials to various companies to participate in credit card promotions. Greta is employing a _____ strategy.

Accepted Answer

A)   rebate
B)   pulling
C)   public relations
D)   pushingE) A) and B)
F) A) and D)

Question 10

Discuss how integrated marketing communications relate to a firm's overall promotional strategy.

Accepted Answer

In practicing integrated marketing commu...

Question 11

Kristen and Jack have had an in-ground swimming pool installed in their back yard. About one week after the installation, the salesperson that facilitated the installation telephoned and asked if everything about the pool met with their expectations. The salesperson is _____.

Accepted Answer

A)   conducting a follow-up
B)   trying to get a repeat order
C)   prospecting
D)   overcoming objectionsE) A) and D)
F) All of the above

Question 12

Volume objectives base pricing decisions on _____.

Accepted Answer

A)   image goals and status quo pricing
B)   supply and demand
C)   market share
D)   breakeven analysisE) All of the above
F) B) and D)

Question 13

Micord, an automobile manufacturer, is running ads emphasizing that it offers longer warranties than other automobile companies. This is an example of which of the following promotional strategy objectives?

Accepted Answer

A)   Accentuating the product's value
B)   Providing information
C)   Stabilizing sales
D)   Differentiating the productE) None of the above
F) B) and C) A

Question 14

In breakeven analysis, total cost is composed of _____.

Accepted Answer

A)   total sales minus expenses
B)   variable costs minus fixed costs
C)   price divided by number of units sold
D)   total variable costs and total fixed costsE) A) and C)
F) A) and B)

Question 15

Television is an attractive advertising medium because it _____.

Accepted Answer

A)   is relatively inexpensive
B)   offers a constantly growing network audience
C)   offers mass coverage and flexibility
D)   provides instant feedback that can be used to measure effectivenessE) A) and D)
F) B) and C)

Question 16

Consumers generally associate lower prices with higher quality.

Accepted Answer

A) True 
 B)False

Question 17

Public relations only refers to an organization's paid communications.

Accepted Answer

A) True 
 B)False

Question 18

Jonathan is planning on setting up a small-scale guitar manufacturing company. Jonathan isn't well versed in economics, so he doesn't understand the concept of supply and demand very well. What pricing strategy must Jonathan adopt?

Accepted Answer

A)   Skimming pricing
B)   Prestige pricing
C)   Psychological pricing
D)   Cost-based pricingE) A) and D)
F) None of the above

Question 19

In an effort to boost the entire pork industry in the U.S., the National Pork Board sponsors an advertisement stating, "Pork: The Other White Meat." This type of promotion is trying to develop _____.

Accepted Answer

A)   primary demand
B)   media containment
C)   name recognition
D)   media dominanceE) All of the above
F) C) and D)

Question 20

MATCHING
Complete the following using the terms listed.
-A(n)  _____relies on personal selling and sales promotion to market an item to wholesalers and retailers in a company's distribution channels.

Accepted Answer

A)  breakeven analysis
B)  promotional mix
C)  Volume objectives
D)  Institutional advertising
E)  discount pricingF) Creative sellingG) Point-of-purchase advertisingH) skimming pricingI) pushing strategyJ) penetrationK) integrated marketing communicationsL) cooperative advertisingM) odd pricingN) D) and E)
O) B) and D)

Exam 13: Promotion and Pricing Strategies

Advertising is a global activity.

Correct AnswerverifiedShow Answer

Hoplan, a motel chain, utilizes a pricing strategy of maintaining continuous low prices rather than relying on sales. This strategy is an example of _____ pricing.

Correct AnswerverifiedShow Answer

Viral advertising is often quite expensive.

Correct AnswerverifiedShow Answer

Personal selling is often used for products that are technically complex.

Correct AnswerverifiedTrue

A recent newspaper article reported that the CEO of Lake-Marker Corporation has been accused of accounting fraud. This article is an example of publicity.

Correct AnswerverifiedTrue

Sally is an account representative for an office supply corporation who frequently provides demonstrations to business professionals. When a prospect complains about the company's fax machine, Sally should view the situation as an opportunity to _____.

Correct AnswerverifiedShow Answer

A leading manufacturer of exercise bicycles ran a full-page advertisement in a health magazine differentiating the price of its bicycle with that of a leading competitor. The manufacturer is using _____.

Correct AnswerverifiedShow Answer

A company's employee volunteers clean up a neighborhood playground. In the process, employees hand out free company product samples. This is an example of a publicity campaign.

Correct AnswerverifiedShow Answer

Greta is a marketing manager of a bank who regularly sends materials to various companies to participate in credit card promotions. Greta is employing a _____ strategy.

Correct AnswerverifiedShow Answer

Discuss how integrated marketing communications relate to a firm's overall promotional strategy.

Correct AnswerverifiedIn practicing integrated marketing commu...View AnswerShow Answer

Kristen and Jack have had an in-ground swimming pool installed in their back yard. About one week after the installation, the salesperson that facilitated the installation telephoned and asked if everything about the pool met with their expectations. The salesperson is _____.

Correct AnswerverifiedShow Answer

Volume objectives base pricing decisions on _____.

Correct AnswerverifiedShow Answer

Micord, an automobile manufacturer, is running ads emphasizing that it offers longer warranties than other automobile companies. This is an example of which of the following promotional strategy objectives?

Correct AnswerverifiedA

In breakeven analysis, total cost is composed of _____.

Correct AnswerverifiedShow Answer

Television is an attractive advertising medium because it _____.

Correct AnswerverifiedShow Answer

Consumers generally associate lower prices with higher quality.

Correct AnswerverifiedShow Answer

Public relations only refers to an organization's paid communications.

Correct AnswerverifiedShow Answer

Jonathan is planning on setting up a small-scale guitar manufacturing company. Jonathan isn't well versed in economics, so he doesn't understand the concept of supply and demand very well. What pricing strategy must Jonathan adopt?

Correct AnswerverifiedShow Answer

In an effort to boost the entire pork industry in the U.S., the National Pork Board sponsors an advertisement stating, "Pork: The Other White Meat." This type of promotion is trying to develop _____.

Correct AnswerverifiedShow Answer

MATCHING Complete the following using the terms listed. -A(n) _____relies on personal selling and sales promotion to market an item to wholesalers and retailers in a company's distribution channels.

Correct AnswerverifiedShow Answer

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In practicing integrated marketing commu...
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