Question 1

Which of the following can help create product prestige?
A)High quality
B)Additional rebates
C)Fixed costs
D)Limited availability

Accepted Answer

Limited availability can create product prestige by making the product seem more exclusive and desirable.

Question 2

Sophia 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?
A)Prestige-value
B)Price-prestige
C)Price-quality
D)Value-quality

Accepted Answer

The customers likely perceived the earrings as being of higher quality because they were priced higher, which aligns with the price-quality relationship. When the earrings were discounted, customers may have doubted their quality, but once the price was restored, the perceived quality and desirability increased, leading to sales.

Question 3

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

Accepted Answer

A promotional mix typically includes both personal selling (direct interaction with customers) and nonpersonal selling (advertising, sales promotions, public relations, etc.).

Question 4

D-base,an audio equipment store,wants to price one of its products,a $200 turntable,in such a way that its customers would perceive the turntable's quality to be very high.Which of the following pricing must it use?
A)$203
B)$202
C)$202.22
D)$202.11

Accepted Answer

The answer of D-base,an audio equipment store,wants to price one...

Question 5

South Spice,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.South Spice knows that
A)the higher the price,the better its perceived quality.
B)people always pay more for items that are unfamiliar to them.
C)people think that the competitor's food is priced too low.
D)experience has taught consumers to ignore prices.

Accepted Answer

The perception of higher quality is often associated with higher prices, especially when it comes to food and the use of specialty or authentic ingredients, as is the case with South Spice. This can lead to consumers believing that the higher price is justified by the superior quality of the dishes.

Question 6

AB Chocolates,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.
A)trade promotion
B)personal selling
C)missionary selling
D)point-of-purchase advertising

Accepted Answer

Placing display bins at strategic points like entry and exit points of a store is a tactic used in point-of-purchase advertising, aimed at catching the customer's attention and encouraging impulse buys.

Question 7

Advertising is a form of nonpersonal selling.

Accepted Answer

Advertising is considered a form of nonpersonal selling because it involves mass communication with consumers or businesses, typically through media, without direct, face-to-face interaction between the advertiser and the audience.

Question 8

When automakers offer special price reductions on all their automobiles during holiday shopping seasons,they are using the _____ strategy.
A)discount pricing
B)prestige pricing
C)odd pricing
D)skimming pricing

Accepted Answer

Automakers are using the discount pricing strategy when they offer special price reductions on all their automobiles during holiday shopping seasons. This strategy involves temporarily reducing the price of products to attract more customers and increase sales volume.

Question 9

When ridesharing service Uber employs surge pricing,it is implementing a(n)
A)volume objective.
B)prestige pricing structure.
C)market-demand pricing structure.
D)profitability objective.

Accepted Answer

Surge pricing by Uber is an example of a market-demand pricing structure, where prices are adjusted in real time based on the demand and supply of rides. When demand is high and there are not enough drivers, prices go up to balance the demand with the supply.

Question 10

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.
A)creative selling
B)missionary selling
C)nonpersonal selling
D)consultative selling

Accepted Answer

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

Question 11

By creating unified promotional messages,an integrated marketing communications strategy focuses on customer needs.

Accepted Answer

An integrated marketing communications strategy aims to ensure that all forms of communications and messages are carefully linked together, focusing on customer needs to create a unified and seamless experience across all channels of communication.

Question 12

_____ is often used when there are few or no close competitors.
A)Skimming pricing
B)Penetration pricing
C)Prestige pricing
D)Odd pricing

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 13

Which of the following is an example of odd pricing?
A)A television set that costs $119.99
B)A mobile phone that costs $100
C)A dress that costs $17
D)A pair of shoes that costs $10.2

Accepted Answer

Odd pricing refers to the strategy of setting prices just below a round number, such as $119.99 instead of $120, to make the price seem lower to consumers.

Question 14

Marcello 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 Marcello and Excel Electronics are using _____ to downplay the price of the computer.
A)cost-based pricing
B)personal selling
C)price fixing
D)odd pricing

Accepted Answer

Marcello and Excel Electronics are using odd pricing, a strategy where items are priced just below a round number (in this case, $999.99 instead of $1000) to make the price seem lower or more attractive to consumers.

Question 15

Which is the last step in the seven-step sales process?
A)Close the sale
B)Follow-up
C)Demonstration
D)Prospecting and qualifying

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 16

Penetration pricing assumes that
A)the price of a product is directly proportionate to its quality.
B)people always pay more for items that are unfamiliar to them.
C)advertising is a global activity.
D)a low price will make the product more attractive.

Accepted Answer

Penetration pricing is a strategy where a product is introduced to the market at a low price to attract customers and gain market share. The assumption is that the low price will make the product more attractive to potential buyers, encouraging them to choose it over competitors' offerings.

Question 17

When ABC Wafers,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
A)nonpersonal selling.
B)prestige pricing.
C)profitability objectives.
D)volume objectives.

Accepted Answer

By reducing the quantity of wafers in the packet while maintaining the original packet size, ABC Wafers aims to sell less product for the same price, effectively increasing the price per wafer. This strategy is focused on enhancing profitability by reducing costs (less product per packet) or maintaining pricing, thereby aiming to increase the company's revenues through higher margins per sale. This approach is related to profitability objectives, as it directly impacts the company's bottom line by attempting to increase profit margins.

Question 18

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

Accepted Answer

Integrated marketing communications involve using a variety of promotional tools and channels in a coordinated manner to achieve broader reach and greater impact, rather than narrowing focus on specific strategies.

Question 19

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

Accepted Answer

Promotion aims to communicate the benefits and features of a product to potential customers, persuading and influencing their purchasing decisions.

Question 20

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

Accepted Answer

Manufacturers of B2B (Business-to-Business) products often prioritize personal selling over advertising because direct sales efforts allow for more personalized communication and relationship building with potential business clients, which is crucial in B2B transactions.

Quiz 13: Promotion and Pricing Strategies

Which of the following can help create product prestige?

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

D-base,an audio equipment store,wants to price one of its products,a $200 turntable,in such a way that its customers would perceive the turntable's quality to be very high.Which of the following pricing must it use?

South Spice,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.South Spice knows that

AB Chocolates,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.

Advertising is a form of nonpersonal selling.

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

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

By creating unified promotional messages,an integrated marketing communications strategy focuses on customer needs.

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

Which of the following is an example of odd pricing?

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

Penetration pricing assumes that

When ABC Wafers,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

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

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

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