Question 1

Manufacturers of B2B products typically spend more on personal selling than on advertising.

Accepted Answer

B2B products tend to have a longer sales cycle and a smaller target audience, which makes personal selling more effective in building relationships and closing deals. Therefore, manufacturers of B2B products usually allocate a higher portion of their marketing budget to personal selling rather than advertising.

Question 2

Which of the following is an example of odd pricing?

Accepted Answer

Odd pricing is a pricing strategy where the price of a product is set slightly below a round number, such as $119.99 instead of $120. This strategy is used to make the price seem lower and more appealing to customers, even though the difference is only one cent. The television set that costs $119.99 is an example of odd pricing as it is slightly below a round number. The mobile phone that costs $100, the dress that costs $17, and the pair of shoes that costs $10.2 are all examples of even pricing.

Question 3

When ridesharing service Uber employs surge pricing,it is implementing a(n)_____.

Accepted Answer

Surge pricing is a market-demand pricing structure, which means that the price of the ride is determined by the demand for rides at a particular time and in a particular area. When demand is high, like during rush hour or on holidays, prices go up to encourage more drivers to go to that area and provide more rides. This helps to balance the supply and demand of rides and ensure that customers can quickly and easily get a ride when they need one, even in high-demand situations.

Question 4

When automakers offer special price reductions on all their automobiles during holiday shopping seasons,they are using the _____ strategy.

Accepted Answer

Discount pricing involves offering lower prices or special deals to attract more customers. By offering special price reductions during holiday shopping seasons, automakers are using discount pricing to encourage more people to purchase their cars during this time.

Question 5

A major portion of the U.S.advertising is science-oriented.

Accepted Answer

Most U.S. advertising focuses on consumer benefits, emotional appeals, and brand differentiation rather than being primarily science-oriented.

Question 6

_____ is often used when there are few or no close competitors.

Accepted Answer

Skimming pricing is often used when there are few or no close competitors, allowing a company to set higher prices to maximize profits before other competitors enter the market.

Question 7

Which is the last step in the seven-step sales process?

Accepted Answer

The last step in the seven-step sales process is the follow-up. This step is crucial for ensuring customer satisfaction and laying the groundwork for future sales opportunities.

Question 8

Advertising is a form of nonpersonal selling.

Accepted Answer

Advertising refers to a paid form of communication that is directed towards a large audience through various media such as TV, radio, print, online, and outdoor advertising. It is a form of nonpersonal communication as it is not directed towards an individual or group of individuals in a face-to-face interaction.

Question 9

Which of the following can help create product prestige?

Accepted Answer

Limited availability creates an impression of exclusivity and scarcity which can increase the perceived value and prestige of a product. High quality is important, but on its own, it may not necessarily create prestige. Additional rebates and fixed costs are not directly related to creating product prestige.

Question 10

A chocolate manufacturing company places display bins of their products at the entry and exit points of a convenience store.The company is using the _____ strategy.

Accepted Answer

The company is using point-of-purchase advertising by placing display bins at the entry and exit points of a convenience store.

Question 11

Penetration pricing assumes that _____.

Accepted Answer

Penetration pricing assumes that a low price will make the product more attractive to customers, allowing the company to quickly gain market share. This is because lower prices can stimulate demand and encourage trial purchases. Therefore, option (D) is the correct answer. Options (A) and (B) are incorrect because the assumption of penetration pricing is not related to the quality of the product or the familiarity of customers. Option (C) is also incorrect because advertising can be targeted to specific regions or markets, rather than being a global activity.

Question 12

Mex,a restaurant,makes all its menu items from scratch and uses authentic Mexican herbs in its dishes.As a result of its focus on using specialty ingredients,prices are 75% higher than its competitors.Mex knows that_____.

Accepted Answer

Mex believes that the higher price is perceived as a sign of better quality, which justifies their decision to charge more due to their use of specialty ingredients.

Question 13

A promotional mix consists of two major components-personal selling and nonpersonal selling.

Accepted Answer

A promotional mix includes personal selling, advertising, sales promotion, direct marketing, and public relations as its major components. Personal selling is a type of personal communication between the salesperson and the potential customer, while nonpersonal selling includes all other forms of communication that are not face-to-face, such as advertising, sales promotion, and direct marketing.

Question 14

An integrated marketing communications strategy focuses on customer needs by creating unified promotional messages.

Accepted Answer

An integrated marketing communications strategy is all about creating a unified message that resonates with customers, meets their needs, and achieves business objectives. By combining various promotional tools such as advertising, public relations, sales promotions, and direct marketing, an integrated approach can help ensure consistency and effectiveness across different touchpoints with customers. This ultimately leads to better brand positioning, customer engagement, and business results.

Question 15

The fundamental purpose of promotion is to persuade and influence customers to purchase a product.

Accepted Answer

The primary goal of promotion is to persuade and influence customers to buy a product or service. By using advertising, personal selling, sales promotions, public relations, and direct marketing, marketers can increase consumer awareness and purchasing behavior.

Question 16

Clara owns an upscale accessory boutique and drastically reduced the price of some earrings to make room for new inventory.When the earrings didn't sell in the "discount basket," she put them back on the shelf at regular price and they sold within a month.Which of the following relationships explains her customers' perception of price?

Accepted Answer

The customers' perception of price can be explained by price-quality, as they did not see the discounted earrings as high quality and were willing to pay the regular price for them once they were back on the shelf.

Question 17

A sales executive working for a club identifies someone who frequently visits spa resorts on vacation as a prospective customer.He explains that the club has spa facilities and offers exclusive deals to its members.He compares the cost of membership with that of other clubs and the differences in facilities.In this scenario,the sales executive is implementing the _____ strategy.

Accepted Answer

The answer of A sales executive working for a club...

Question 18

To gain a competitive advantage,marketers that utilize integrated marketing communications should always narrow their focus on promotional strategies.

Accepted Answer

Integrated marketing communications involves using a variety of promotional tactics to create a cohesive and consistent message for customers. Instead of focusing solely on one promotional strategy, marketers should aim to use a mix of advertising, public relations, personal selling, and other tactics that work together to reach customers in different ways. By utilizing a range of strategies, marketers can increase the effectiveness of their promotional efforts and gain a competitive advantage.

Question 19

When a wafer-producing company decreases the quantity of wafers in the packet but retains the volume of the original packet,the company is trying to increase its revenues through _____.

Accepted Answer

The company is reducing the quantity of product while maintaining the same price, which is a strategy to increase profitability by reducing costs per unit sold.

Question 20

Andrew is allowed to purchase a reasonably priced notebook computer for graduation.He sees one at Excel Electronics for $999.99 and calls his parents to assure them the computer costs "less than a thousand." Both Andrew and Excel Electronics are using _____ to downplay the price of the computer.

Accepted Answer

Andrew and Excel Electronics are both using odd pricing strategy, which involves setting the price just below a round number to create the illusion of a lower price. In this case, the price of the computer is set at $999.99 to make it seem like it is less than $1000.

Quiz 13: Promotion and Pricing Strategies