Question 1

Setting a price that depends on generally accepted industry standards is known as keystone pricing.

Accepted Answer

Keystone pricing is a pricing strategy where the price of a product is set at a fixed percentage above its cost. This percentage is typically set by industry standards.

Question 2

Penetration pricing occurs when you set the highest price your target consumers will pay for a product or service given their needs and values and the competitive options.

Accepted Answer

Penetration pricing involves setting a low initial price to attract customers and gain market share, not the highest price.

Question 3

An example of guerrilla marketing is the 1-800-GOT-JUNK? junk motorcades (Chapter 6 case study).

Accepted Answer

Guerrilla marketing involves unconventional and creative strategies to promote a product or service, and the 1-800-GOT-JUNK? junk motorcades are an example of such a strategy, as they use attention-grabbing tactics to increase brand visibility.

Question 4

Smart entrepreneurs figure out ways to make themselves-and their businesses-distinctive. This is called ____________.

Accepted Answer

The answer of Smart entrepreneurs figure out ways to make...

Question 5

The art or science of moving the image of your business into the forefront of a prospective customer's mind is the definition of _______________.

Accepted Answer

The answer of The art or science of moving the...

Question 6

All of the elements that you blend to maximize communication with your target customer comprise your __________ __________.

Accepted Answer

The answer of All of the elements that you blend...

Question 7

The image of your business to a support group of non-competitive helpers is known as __________.

Accepted Answer

The answer of The image of your business to a...

Question 8

A statement about the benefits of your product or service directed to your target market is called a ____________ ____________ ______________.

Accepted Answer

The answer of A statement about the benefits of your...

Question 9

The highest price that target consumers will pay for a product or service, given their needs, values, and the competitive options, is called a ___________ _________.

Accepted Answer

The answer of The highest price that target consumers will...

Question 10

A percentage of your cost of sales (sometimes the selling price), which is added to the cost in order to determine your selling price, is called a _______.

Accepted Answer

The answer of A percentage of your cost of sales...

Question 11

A key small business promotional strategy, which refers to unconventional methods of getting customer attention at minimal cost, is called ____________ _________.

Accepted Answer

The answer of A key small business promotional strategy, which...

Question 12

Explain the promotional term free ink.

Accepted Answer

The answer of Explain the promotional term free ink....

Question 13

A major marketing strategy of 1-800-GOT-JUNK? was to focus on a specific market segment, create uniqueness, and differentiate its service as perceived by the customer. How would this marketing strategy affect GOT-JUNK?'s pricing policy?

Accepted Answer

The answer of A major marketing strategy of 1-800-GOT-JUNK? was...

Question 14

How can a small business develop a mailing list?

Accepted Answer

The answer of How can a small business develop a...

Question 15

According to the text, your marketing strategy will include an analysis of four major elements. What are these four elements?

Accepted Answer

The answer of According to the text, your marketing strategy...

Question 16

Explain how a point-of-purchase (POP) display could help sell a retail customer product.

Accepted Answer

The answer of Explain how a point-of-purchase (POP) display could...

Question 17

Briefly explain the four common methods of pricing for small business.

Accepted Answer

The answer of Briefly explain the four common methods of...

Question 18

Briefly explain the meaning and purpose of the marketing concept of markups.

Accepted Answer

The answer of Briefly explain the meaning and purpose of...

Quiz 6: Marketing: Pricing and Promoting