Question 1

What is the ultimate objective of any type of promotion?
Image enhancement
Creative selling
To increase sales
To advertise
To increase consumer knowledge of the product

Accepted Answer

The answer of What is the ultimate objective of any...

Question 2

What term identifies a company's policy of offering all items in certain categories (e.g., men's suits) at a limited number of prices?
Price skimming
Boundary pricing
Discounting
Penetration pricing
Price lining

Accepted Answer

The answer of What term identifies a company's policy of...

Question 3

Julia, owner of Julia's Craft Supply Store would like to take advantage of the fact that customers are not completely rational when making buying decisions and may prefer prices that are not stated in even dollar amounts. Which pricing tactic is she interested in?
Discounting
Price skimming
Psychological pricing
Skewed pricing
Price lining

Accepted Answer

The answer of Julia, owner of Julia's Craft Supply Store...

Question 4

When Burger King tells you about a new restaurant that it is opening near you, it is attempting to fulfill which promotional objective?
Remind you about the product
Communicate information
Positioning products
Controlling sales volume
Eliminate competition

Accepted Answer

The answer of When Burger King tells you about a...

Question 5

A ________ strategy is a promotional strategy designed to encourage wholesalers and retailers to market those products to the consumer.
push
position
product
pull
place

Accepted Answer

The answer of A ________ strategy is a promotional strategy...

Question 6

Searchmont Ski Resort was finding that spring was a particularly slow time for chalet rentals. In order to increase the occupancy rate, Searchmont implemented a(n)
advertising campaign.
seasonal discount.
skimming pricing strategy.
penetration pricing strategy.
trade credit policy.

Accepted Answer

The answer of Searchmont Ski Resort was finding that spring...

Question 7

Which promotional strategy appeals directly to the consumer who demands the product from retailers, who, in turn, demand the product from wholesalers?
Product positioning
Layered promotion
Pull strategy
Contests
Push strategy

Accepted Answer

The answer of Which promotional strategy appeals directly to the...

Question 8

Which of the following is correct with regard to the pricing of new products?
There are two basic strategies available: follow-the-leader and price leadership.
Price skimming is more effective than penetration pricing.
Penetration pricing is generally more effective than price skimming.
Price skimming involves trying to sell a new product only to customers with the highest income levels.
Penetration pricing is designed to stimulate trial purchase.

Accepted Answer

The answer of Which of the following is correct with...

Question 9

Which of the following is correct with regard to the issue of fixed versus dynamic pricing?
When launching new products, startup firms generally use dynamic pricing until they get a better understanding of the market.
In the digital marketplace, dynamic pricing is the norm.
Amazon.com uses fixed pricing as its pricing strategy for its millions of retail items.
The reverse auction is one type of fixed pricing.
All of these are correct.

Accepted Answer

The answer of Which of the following is correct with...

Question 10

Penetration pricing involves
setting prices in uneven dollar amounts.
setting an initial low price to establish a new product in the market.
taking advantage of the fact that consumers do not always respond rationally to stated prices.
setting an initial high price to cover new product costs and generate a profit.
setting a limited number of prices for certain categories of products.

Accepted Answer

The answer of Penetration pricing involves
setting prices in uneven dollar...

Question 11

Promotion seeks to accomplish all of the following with potential customers except
persuade them to purchase products.
persuade them to dislike all other competitors' products.
make them aware of products.
make them knowledgeable about products.
persuade them to like products.

Accepted Answer

The answer of Promotion seeks to accomplish all of the...

Question 12

Psychological pricing involves
setting an initial low price to establish a new product in the market.
setting prices in uneven dollar amounts.
setting a limited number of prices for certain categories of products.
setting an initial high price to cover new product costs and generating a profit.
taking advantage of the fact that consumers do not always respond rationally to stated prices.

Accepted Answer

The answer of Psychological pricing involves
setting an initial low price...

Question 13

If Louisa's Craft Supply Store uses odd-even psychological pricing, then it would likely price its yarn at
$4.50 per ball.
$4 per ball.
$5 per ball.
$4.95 per ball.
$6 per ball.

Accepted Answer

The answer of If Louisa's Craft Supply Store uses odd-even...

Question 14

Odd-even pricing involves
setting a limited number of prices for certain categories of products.
setting an initial high price to cover new product costs and generating a profit.
taking advantage of the fact that consumers do not always respond rationally to stated prices.
setting prices in uneven dollar amounts.
setting an initial low price to establish a new product in the market.

Accepted Answer

The answer of Odd-even pricing involves
setting a limited number of...

Question 15

"Sears Good," "Sears Better," and "Sears Best" are examples of
market pricing.
price fixing.
psychological pricing.
price lining.
price discounting.

Accepted Answer

The answer of "Sears Good," "Sears Better," and "Sears Best"...

Question 16

Why would a business firm want to use controlling sales volume as a promotional objective?
A company will aggressively push its products through wholesalers and retailers who persuade customers to buy it.
The production and distribution systems will run more smoothly when the firm achieves a more stable sales volume during the year.
The company is trying to appeal to a specific segment of the market.
Consumers are more likely to purchase a product when they have been informed about it.
The company wants to be able to communicate information to consumers when it is more economical to do so.

Accepted Answer

The answer of Why would a business firm want to...

Question 17

When is discounting used to set prices?
When attempting to stimulate sales
When odd-even psychological pricing is not successful
When conducting a break-even analysis
When a price-skimming strategy is used
When profit margins are too low

Accepted Answer

The answer of When is discounting used to set prices?
When...

Question 18

Many e-tailers, such as eBay and Priceline, use ________ pricing.
penetration
skimming
dynamic
psychological
odd-even

Accepted Answer

The answer of Many e-tailers, such as eBay and Priceline,...

Question 19

Mega Computers, a computer manufacturer, has decided to promote its new line of computers by offering its wholesalers and retailers an additional 5 percent off list prices. This strategy is called a ________ strategy.
product
pull
push
place
position

Accepted Answer

The answer of Mega Computers, a computer manufacturer, has decided...

Question 20

Mega Computer, a computer manufacturer, is using direct mail to send 10 percent off coupons to its list of potential customers. This strategy is called a ________ strategy.
pull
product
position
push
place

Accepted Answer

The answer of Mega Computer, a computer manufacturer, is using...

Quiz 13: Pricing, Promoting, and Distributing Products

What is the ultimate objective of any type of promotion? Image enhancement Creative selling To increase sales To advertise To increase consumer knowledge of the product

What term identifies a company's policy of offering all items in certain categories (e.g., men's suits) at a limited number of prices? Price skimming Boundary pricing Discounting Penetration pricing Price lining

When Burger King tells you about a new restaurant that it is opening near you, it is attempting to fulfill which promotional objective? Remind you about the product Communicate information Positioning products Controlling sales volume Eliminate competition

A ________ strategy is a promotional strategy designed to encourage wholesalers and retailers to market those products to the consumer. push position product pull place

Searchmont Ski Resort was finding that spring was a particularly slow time for chalet rentals. In order to increase the occupancy rate, Searchmont implemented a(n) advertising campaign. seasonal discount. skimming pricing strategy. penetration pricing strategy. trade credit policy.

Which promotional strategy appeals directly to the consumer who demands the product from retailers, who, in turn, demand the product from wholesalers? Product positioning Layered promotion Pull strategy Contests Push strategy

Promotion seeks to accomplish all of the following with potential customers except persuade them to purchase products. persuade them to dislike all other competitors' products. make them aware of products. make them knowledgeable about products. persuade them to like products.

If Louisa's Craft Supply Store uses odd-even psychological pricing, then it would likely price its yarn at $4.50 per ball. $4 per ball. $5 per ball. $4.95 per ball. $6 per ball.

"Sears Good," "Sears Better," and "Sears Best" are examples of market pricing. price fixing. psychological pricing. price lining. price discounting.

When is discounting used to set prices? When attempting to stimulate sales When odd-even psychological pricing is not successful When conducting a break-even analysis When a price-skimming strategy is used When profit margins are too low

Many e-tailers, such as eBay and Priceline, use ________ pricing. penetration skimming dynamic psychological odd-even

Mega Computers, a computer manufacturer, has decided to promote its new line of computers by offering its wholesalers and retailers an additional 5 percent off list prices. This strategy is called a ________ strategy. product pull push place position

Mega Computer, a computer manufacturer, is using direct mail to send 10 percent off coupons to its list of potential customers. This strategy is called a ________ strategy. pull product position push place