Question 1

Which business activity relates to small business marketing?

Accepted Answer

Small business marketing involves determining the target market potential and identifying the most effective ways to reach the target market, such as through advertising, promotions, and public relations. Manufacturing the product, negotiating terms with suppliers, and arranging financing for expansion are important business activities, but they do not specifically relate to marketing.

Question 2

Which strategy involves pricing products or services at a lower than normal,long-range market price in order to gain more rapid market acceptance or to increase existing market share?

Accepted Answer

Penetration pricing involves setting a lower price than the established or long-range market price in order to gain more rapid market acceptance and increase market share. This strategy is typically used by businesses entering a new market or launching a new product. It can help attract price-sensitive consumers and encourage them to switch from competitors, thus increasing market share.

Question 3

One of the reasons why a car manufacturer sells so well is because the company allows customers to return the vehicle at any time within the first 30 days of purchase for a full refund.What motivates customers to purchase this brand?

Accepted Answer

The answer of One of the reasons why a car...

Question 4

SL Inc.will offer a lower price to customers that order online or have the potential to purchase larger volumes.What pricing strategy does SL use?

Accepted Answer

Flexible pricing allows for different prices based on certain conditions, such as ordering method or purchase volume, which matches the description given.

Question 5

What is a specification of what a seller requires in exchange for transferring ownership or use of a product or service?

Accepted Answer

The answer of What is a specification of what a...

Question 6

Tranh has identified potential customers who would likely have a desire for his personal fitness program and who also have the disposable income to afford his service.What is another name for this group of potential customers?

Accepted Answer

The answer of Tranh has identified potential customers who would...

Question 7

Victor has noticed some of his customers bypassing his café at lunch and going to an organic grocer that opened across the street.How would Victor classify the organic grocer in relation to his cafe?

Accepted Answer

The organic grocer is a direct competitor because they are offering similar products and services as Victor's café, and are located in close proximity, which is causing customers to choose one over the other.

Question 8

Elle is looking to grow her cycling association.She has created a logo to symbolize health through activity to be placed on jerseys members receive with their membership fee.A lawyer has been hired to register the symbol.What is this symbol called?

Accepted Answer

The symbol that Elle has created and is registering with the help of a lawyer is a trademark. A trademark is a recognizable symbol, design, or expression that distinguishes a particular product or service from those of others. In this case, the logo will help distinguish the cycling association from other similar groups and help build brand recognition.

Question 9

Josephine is creating a description of the ideal shopper for her energy bars based on age,gender,behaviours,and income.What is Josephine creating?

Accepted Answer

Josephine is creating a customer profile which includes specific details about the ideal shopper for her energy bars. A market profile would be more general and include information about the overall market for energy bars, while a customer analysis and market analysis are broader terms that could include multiple factors beyond just age, gender, behaviors, and income.

Question 10

Describe the ingredients that make up a market.

Accepted Answer

The answer of Describe the ingredients that make up a...

Question 11

What should an entrepreneur do to provide a hedge against volatile shifts in market demand?

Accepted Answer

The answer of What should an entrepreneur do to provide...

Question 12

In the wake of a major competitor going out of business,BBC Transit has dropped prices to grab market share quickly before the remaining competition.What pricing strategy is BBC using?

Accepted Answer

BBC is using a penetration pricing strategy, which involves setting low prices to quickly gain market share and drive out competitors. This strategy is often used in competitive markets or during times of economic downturn.

Question 13

Peter sells a line of security surveillance cameras that most of his customers set up in their homes.What type of customer does Peter mostly sell to?

Accepted Answer

Since Peter's customers are setting up the security surveillance cameras in their homes, it is most likely that he is selling to individuals who are looking to improve the security of their personal residences.

Question 14

Roger wants to develop a reputation for his company so that when people hear its name they think quality,service,and satisfaction.What is Roger concerned with?

Accepted Answer

Roger is concerned with building the company's brand reputation.

Question 15

High Energy,a local supplier of sport drinks,initially sold its product at a premium price of $5 because the company believed consumers would view sport drinks as a prestigious item.The company decided that when start-up costs had been recovered and competition grew,the company would reduce the price to a more reasonable $3.What strategy is High Energy implementing?

Accepted Answer

High Energy is implementing a skimming price strategy, where they initially set a high price to maximize profits from segments willing to pay the premium, and then lower the price over time to attract more price-sensitive customers.

Question 16

Roslyn makes unique frames for photos and mirrors with real decorative rocks and shells.The frames can become heavy.Where should Roslyn place instructions for mounting and cautionary information?

Accepted Answer

Instructions for mounting and cautionary information should be placed on a label so that they can be easily read and understood by the customer.

Question 17

A local theatre charges $10 admission.However,seniors only pay $7.50 and all patrons only pay $7.00 for matinee times before 5pm.What strategy is the theatre using?

Accepted Answer

The answer of A local theatre charges $10 admission.However,seniors only...

Question 18

Robert successfully sells a line of baby seats to young families in rural areas promoting its high rating for safety.What variable is Robert focusing on to make sales?

Accepted Answer

Robert is focusing on the geographic variable of the young families living in rural areas.

Question 19

In the auto industry,when one dealership offers a promotion such as zero-percent financing the competitors soon offer the same promotion.What pricing strategy is common in this industry?

Accepted Answer

This is an example of follow-the-leader pricing, where competitors imitate each other's pricing strategies in order to remain competitive in the market.

Question 20

Cheryl is evaluating the market through segmentation,research,and forecasting.What activity is Cheryl engaged in?

Accepted Answer

Cheryl is engaged in market analysis, which involves evaluating the market through segmentation, research, and forecasting to understand market conditions and trends.

Quiz 6: Small Business Marketing, Product, and Pricing Strategies