Question 1

Sales personnel employed by companies, such as IBM and Microsoft, who offer technical assistance through consulting in order to promote goodwill for their employers are primarily involved in _____.
A) missionary selling
B) creative selling
C) nonpersonal selling
D) order processing

Accepted Answer

Missionary selling involves promoting goodwill and creating a favorable image or reputation for a company or its products through personal contacts with customers or potential customers. In this case, the sales personnel are offering technical assistance and consulting services to promote goodwill for their employers, which aligns with the definition of missionary selling. Choice B, creative selling, involves developing unique and innovative sales presentations to persuade customers, while choice C, nonpersonal selling, refers to promotion that does not involve face-to-face interaction with customers, such as advertising or direct mail. Finally, choice D, order processing, involves handling orders and facilitating transactions, which is not applicable to the scenario described.

Question 2

Don-its, a coffee shop, uses _____ advertising when it tells people that "hard-working" people prefer its coffee over the coffee sold by its competitor, Moon-beverage.
A) comparative
B) informative
C) reminder-oriented
D) corporate

Accepted Answer

The advertising strategy used by Don-its is comparative advertising, as it directly compares its coffee to that of its competitor, Moon-beverage, in terms of quality and preference.

Question 3

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 _____.
A) comparative advertising
B) reminder-oriented advertising
C) a pushing strategy
D) advocacy advertising

Accepted Answer

The manufacturer is using comparative advertising, as they are differentiating their price with that of a leading competitor.

Question 4

Businesses often spend _____ as much on personal selling as on advertising.
A) twice
B) almost
C) five to ten times
D) over twenty times

Accepted Answer

According to marketing research, businesses often spend five to ten times more on personal selling than on advertising.

Question 5

A paid, nonpersonal sales communication usually directed at a large number of potential buyers is known as _____.
A) the media mix
B) sales promotion
C) advertising
D) publicity

Accepted Answer

Advertising is a paid, nonpersonal sales communication that is typically directed at a large group of potential buyers through various media channels such as TV, newspaper, magazines, billboards, and online platforms. Sales promotion usually involves short-term incentives to boost sales, while publicity is any nonpaid media exposure that can be positive or negative. The media mix refers to the combination of different advertising and promotional channels used to reach the target audience.

Question 6

Trade promotion is _____.
A) often used to promote goods or services to ultimate consumers
B) used to promote goods or services to marketing intermediaries
C) used to increase investments at the manufacturers' facilities
D) only used to build goodwill

Accepted Answer

Trade promotion is a marketing tool used to promote goods or services to marketing intermediaries such as wholesalers or retailers. It includes activities like trade shows, discounts, and incentives to motivate intermediaries to promote and sell a manufacturer's product to consumers.

Question 7

_____ advertising is used promote a specific viewpoint on a public issue as a way to influence public opinion and the legislative process about issues such as literacy, hunger and poverty, and alternative energy sources.
A) Effect
B) Cause
C) Persuasive
D) Comparative

Accepted Answer

Cause advertising is used to promote a specific viewpoint on a public issue to influence public opinion and the legislative process.

Question 8

Television is an attractive advertising medium because it _____.
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 effectiveness

Accepted Answer

Television offers mass coverage and flexibility, meaning that it can reach a large and diverse audience and can be tailored to specific time slots, demographics, and programming. While television advertising can be expensive, it is often considered a worthwhile investment due to its potential reach and impact. Television advertising does not provide instant feedback, as it can take time to gauge the effectiveness of a campaign through measures such as sales data and brand recognition studies.

Question 9

A disadvantage of using _____ as an advertising medium is their short lifespan.
A) magazines
B) newspapers
C) outdoor ads
D) internet ads

Accepted Answer

Newspapers have a short lifespan as they are typically only read once and then discarded. Magazines can have a longer lifespan as they are often kept by readers for reference or entertainment. Outdoor ads have a potentially longer lifespan depending on their location and level of exposure. Internet ads have the potential to be seen repeatedly, but their effectiveness can be hindered by ad-blocking software and the fast-paced nature of online content consumption.

Question 10

Drelfin Community College purchases golf balls engraved with the words "Drelfin Community College," which are distributed at various college fairs in which it participates. These engraved golf balls are considered _____.
A) point-of-purchase advertising
B) samples
C) premiums
D) specialty advertising

Accepted Answer

Engraved golf balls are a type of specialty advertising, which involves branding promotional products with a company's name or logo for long-term visibility and use by customers.

Question 11

Fish Filler, a seafood restaurant, provides free drinks with each meal. Fish filler is using _____ to promote its sales.
A) premiums
B) samples
C) rebates
D) coupons

Accepted Answer

Premiums are items given away for free to customers who purchase a product or service. In this case, Fish Filler is giving away free drinks with each meal, which can be considered a premium. Samples are small amounts of a product given away for free to customers to try before making a purchase, which is not the case here. Rebates are a partial refund of a purchase price offered to customers who submit proof of purchase, which is also not applicable here. Coupons are discounts offered to customers for a specific product or service, but in this case, Fish Filler is not offering a discount, but rather a free item.

Question 12

Companies typically prefer sweepstakes to games or contests because:
A) they can predict the number of winners in sweepstakes.
B) organizing sweepstakes require less advertising.
C) sweepstakes require product purchase to enter.
D) courts and rulings have favored the use of sweepstakes.

Accepted Answer

Companies prefer sweepstakes because they can predict the number of winners, which allows them to better plan and allocate prizes and resources. Games and contests are dependent on the skill of the participants, which can make it more difficult for the company to determine the number of winners and prizes needed.

Question 13

Sales of intangible products or services such as insurance often rely heavily on _____.
A) order processing
B) sales promotion
C) missionary selling
D) creative selling

Accepted Answer

Creative selling is crucial for intangible products or services like insurance because it involves persuasive communication and the ability to convey the benefits of something that cannot be seen or touched.

Question 14

The goal of_____ advertising is to maintain awareness of the usefulness of a product.
A) advocacy
B) comparative
C) persuasive
D) reminder-oriented

Accepted Answer

Reminder-oriented advertising aims to remind consumers of the usefulness and benefits of a product. It is used to keep the brand or product in the consumer's mind and to encourage repeat purchases.

Question 15

Bell Inc., a computer manufacturer, is offering $100 cash back on the purchase of a computer. This is an example of _____.
A) specialty advertising
B) a rebate
C) a sample
D) a premium

Accepted Answer

This is a rebate offer where the customer will receive $100 back after the purchase of a computer.

Question 16

The Federated Credit Union, through its direct-mail promotion, encourages its members to write letters to members of Congress asking them to pass legislation favorable to credit unions. Such promotion is a form of _____ advertising.
A) advocacy
B) public
C) institutional
D) comparative

Accepted Answer

The direct-mail promotion encouraging members to write letters to members of Congress in order to pass legislation favorable to credit unions is a form of advocacy advertising. This form of advertising aims to persuade and influence public opinion or government policy on a specific issue or cause, in this case, promoting credit unions.

Question 17

Companies that provide _____ for NASCAR teams are eager to spend millions in exchange for a direct association with the biggest spectator sport in the United States.
A) public relations
B) sponsorships
C) specialty advertising
D) product advertising

Accepted Answer

The sentence directly mentions companies that provide sponsorships for NASCAR teams, indicating that sponsorships are the correct choice. The other options (public relations, specialty advertising, product advertising) are not specifically mentioned in relation to NASCAR teams in the sentence.

Question 18

Although a salesperson's work can vary significantly from one company to another, it usually involves a mix of creative selling, missionary selling, and _____.
A) personal selling
B) product samples
C) order processing
D) indirect selling

Accepted Answer

The answer of Although a salesperson's work can vary significantly...

Question 19

Informative advertising is most apt to be used in which stage of the product life cycle?
A) The growth stage
B) The maturity stage
C) The introductory stage
D) The decline stage

Accepted Answer

Informative advertising is most commonly used during the introductory stage of the product life cycle to build awareness and increase consumer knowledge about a new product or service. This type of advertising is used to educate consumers about the features, benefits, and uses of the product, and to create a consumer base. As the product moves through the growth and maturity stages, companies may switch to other types of advertising such as persuasive or reminder advertising. By the decline stage, companies may reduce or stop advertising altogether if the product is being phased out.

Question 20

Craig, a public relations manager of GBS bank, creates an advertisement that explains how GBS bank has positively influenced the economy of his country. Craig has used _____ advertising.
A) institutional
B) cause
C) product
D) corporate

Accepted Answer

Institutional advertising, also known as corporate advertising, is used to create a favorable image or reputation for a company or organization, rather than promoting a specific product or service. In this case, the advertisement focuses on how GBS bank has contributed positively to the economy of the country, which is an example of institutional advertising.

Quiz 13: Promotion and Pricing Strategies

Sales personnel employed by companies, such as IBM and Microsoft, who offer technical assistance through consulting in order to promote goodwill for their employers are primarily involved in _____.

Don-its, a coffee shop, uses _____ advertising when it tells people that "hard-working" people prefer its coffee over the coffee sold by its competitor, Moon-beverage.

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 _____.

Businesses often spend _____ as much on personal selling as on advertising.

A paid, nonpersonal sales communication usually directed at a large number of potential buyers is known as _____.

Trade promotion is _____.

_____ advertising is used promote a specific viewpoint on a public issue as a way to influence public opinion and the legislative process about issues such as literacy, hunger and poverty, and alternative energy sources.

Television is an attractive advertising medium because it _____.

A disadvantage of using _____ as an advertising medium is their short lifespan.

Drelfin Community College purchases golf balls engraved with the words "Drelfin Community College," which are distributed at various college fairs in which it participates. These engraved golf balls are considered _____.

Fish Filler, a seafood restaurant, provides free drinks with each meal. Fish filler is using _____ to promote its sales.

Companies typically prefer sweepstakes to games or contests because:

Sales of intangible products or services such as insurance often rely heavily on _____.

The goal of_____ advertising is to maintain awareness of the usefulness of a product.

Bell Inc., a computer manufacturer, is offering $100 cash back on the purchase of a computer. This is an example of _____.

The Federated Credit Union, through its direct-mail promotion, encourages its members to write letters to members of Congress asking them to pass legislation favorable to credit unions. Such promotion is a form of _____ advertising.

Companies that provide _____ for NASCAR teams are eager to spend millions in exchange for a direct association with the biggest spectator sport in the United States.

Although a salesperson's work can vary significantly from one company to another, it usually involves a mix of creative selling, missionary selling, and _____.

Informative advertising is most apt to be used in which stage of the product life cycle?

Craig, a public relations manager of GBS bank, creates an advertisement that explains how GBS bank has positively influenced the economy of his country. Craig has used _____ advertising.