QUIZ 1: Ch14 n Ch16: answer any 20 questions.
QUIZ 2: Ch 17 n Ch 18: answer any 20 questions.
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All answers turned in must be on a piece of paper and on one page only. Make sure the chapters and numbering are correctly written.
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Chapter 14—Integrated Marketing Communications.
1.Promotion basically refers to firms communicating with their target markets.
2.The marketing mix is the combination of promotion tools used to reach the target market and fulfill the organization's overall goals.
3.Advertising is any form of impersonal, one-way mass communication in which the sponsor is identified.
4.Publicity is free.
5.Sales promotion is generally a short-run tool used to stimulate immediate increases in product demand.
6.When a marketer sends a message to its target market, the marketer must first decode the symbols used
7.All promotions perform one or more of the following three tasks: to inform, to persuade, or to remind the target audience.
8.AIDA stands for Attitudes-Involvement-Decision-Action.
9.The AIDA concept can be used to explain how all promotions influence purchase decisions.
Chapter 16—Sales Promotion and Personal Selling
10.A sales promotion campaign could include any (or all) of the four promotional elements of the promotional mix.
11.Advertising is generally cheaper than sales promotions, and its results are easier to measure.
12.Sales promotion consists of promotional activities designed to encourage product trial and repeat purchase behavior in the long term of a product's life.
13.Coupons are more likely to be encourage repeat purchases by regular users than stimulate product trial by nonusers.
14.When Intel offers to pay $100 to customers who buy a computer with an Intel Celeron processor, it is an example of a premium offer.
15.Point-of-purchase promotions are an extremely important sales promotion tool because up to 70 percent of all purchase decisions are made in the store.
16.A trade allowance is a price reduction offered by retailers to customers who are buying homogeneous shopping goods.
17.Trade shows are an excellent place to introduce new products to the marketplace.
18.Trade promotions are popular among manufacturers because they help manufacturers gain new distributors, obtain intermediary support for consumer promotions, and improve trade relations.
19.Personal selling becomes a more important promotional tool as product complexity and buyer risk diminish.
20.Consultative selling is also called relationship selling.
21.Relationship selling is more typically found in selling situations for industrial type goods, such as equipment used to build highways.
22.With relationship selling the salesperson would spend most of his or her contact time with the prospect talking about the product because the salesperson does not want to waste the customer's time.
23.In relationship selling, salespeople focus more time on qualifying leads than on generating leads.
Chapter 17—Pricing Concepts
1.Price is best described as:
a.the perceived value of a good or service
b.money exchanged for a good or service
c.the psychological results of purchasing
d.the cost in dollars for a good or service as set by the producer
e.the value of a barter good in an exchange
a.equals quantity sold times profit margin
b.equals price minus costs
c.equals return on investment
d.is synonymous with profit
e.equals price of goods times quantity sold
3.What is left over after paying for company activities is:
a.return on investment
e.a current asset
4.Why are marketing managers finding it more difficult to set prices in today's environment?
a.Inflationary and recessionary periods have made customers less price-sensitive.
b.Fewer dealer and generic brands are available because the competition has been eliminated.
c.The high rate of new product introductions has led to careful reevaluation by consumers.
d.Marketing managers are finding it difficult to compare prices between suppliers.
e.Buyers are less informed and are less price-sensitive.
5.For convenience, pricing objectives can be divided into three categories. They are:
a.returnable, competitive, and attainable
b.measurable, competitive, and unique
c.general, attainable, and unique
d.profit-oriented, sales-oriented, and status quo
e.competitive, fixed, and variable
6.An organization is using _____ when it sets its prices so that total revenue is as large as possible relative to total costs.
b.market share pricing
e.status quo pricing
7._____ measures the overall effectiveness of management in generating profits with its available assets.
8.The Dockside Restaurant managed to exceed its target ROI for the current fiscal year. The following results were found on its financial statements:
9.Mikell has recently opened a n athletic equipment store near a college campus. He cannot decide whether to base his firm's pricing objectives on market share, dollar sales, or unit sales. Regardless of which he chooses, his firm's pricing objective can be categorized as:
10.Market share pricing is a:
a.profit-oriented pricing technique
e.status quo pricing technique
11.As a short-term pricing objective, _____ can be effectively used on a temporary basis to sell off excessive inventory.
c.status quo pricing
e.market share pricing
12.If a company's pricing objective is to meet the competition or to maintain existing prices, it is using _____ pricing.
b.target return on investment
13.One of the advantages associated with status quo pricing is that it:
a.is based on actual costs of manufacturing
b.maintains the organization's differential advantage
c.is active, not reactive
d.causes price wars
e.requires little planning
14.Although many factors can influence price, the primary determinants are:
a.costs of manufacturing and distribution
b.the demand for the good and the cost to the seller
c.demand by the consumer and perceived quality
d.distribution and promotion strategies
e.stage of the product life cycle and costs to the consumer
15.The quantity of a product that people will buy depends on its price, but the quantity of product that will be sold in the market at various prices for a specified period is called:
16.The price of the good or service is a key decision for a marketer because it most significantly and directly affects the product's:
17.The quantity of a product that people will buy/demand is most dependent on its:
Chapter 18—Setting the Right Price
18.A company's pricing strategy should do all of the following EXCEPT:
a.give direction for price movements over the product life cycle
b.define the initial price
c.ignore the targeting and positioning strategy of the company
d.set a competitive price
e.interact with the other elements of the marketing mix
19.A 16-ounce bottle of Prairie Herb vinegar sells for $4.95, and a 16-ounce bottle of Heinz vinegar costs $1.05. Prairie Herb vinegar is new to the market, perceived to be of higher quality and provides a unique flavor to foods even though it is used in the same way as Heinz vinegar. Prairie Herb vinegar is most likely using a _____ pricing policy.
20.A shortage of blood for transfusions for injured animals has resulted in the introduction of a synthesized product called Oxyglobin, which can be used effectively as a blood replacement. The manufacturer of the product has put a high price on the product in order to recoup its research and development costs. The manufacturer of Oxyglobin is using a _____ policy.
21.The price-skimming strategy is sometimes called a "market-plus" approach to pricing because it denotes a high price relative to the prices of competing products. This strategy works best when:
a.competition is abundant
b.revenues are equal to expenses
c.supply is greater than demand
d.production capacity is large and flexible
e.demand is greater than supply
22.When a firm introduces a new product at a relatively low price because it hopes to reach the mass market, it is following a _____ strategy. The low price is designed to capture a large share of a substantial market and produce lower production costs.
23.A penetration strategy tends to be effective in a price-sensitive market. Thus, one of the purposes of penetration pricing is to:
a.recoup product development costs quickly
b.discourage competitors from entering the market
c.produce a large margin of profit per unit
d.develop exclusive distribution
e.attract the price-insensitive buyer who demands the latest in technology.
24.Penetration pricing means charging a relatively low price for a product as a way to reach the mass market. The low price is designed to capture a large share of a substantial market. Thus, penetration pricing:
a.tends to be more effective in a less price-sensitive market
b.tempts competitors to enter the market
c.provides a large profit per unit sold
d.recoups product development costs quickly
e.tends to lower production costs
25.To achieve its status as the industry's second fastest-growing personal computer manufacturer, Dell Computer set a relatively low introductory price for its computers as a way to reach the mass market. Dell used a _____ pricing policy.
26.A penetration pricing strategy tends to be most effective:
a.when demand is relatively inelastic
b.under unitary conditions
c.in price-sensitive markets
d.when the company can only perform small production runs
e.if unit costs are high
27.A firm charging a price identical to or very close to the competition's price is using a _____ strategy.
d.status quo pricing
28.The Association of Specialty Surgical Practice has published a minimum fee schedule for services and distributed this schedule throughout the medical profession. Specialty Surgical is engaged in:
c.unfair trade practices
29.Hayward Distributors sells name-brand kitchen appliances to businesses and institutions. It charges a substantially lower price to companies that operate multiple locations where its appliances can be used -such as a restaurant chain. It charges a higher price to companies that have fewer than three operations because there is much less opportunity for repeat business. Hayward Distributors is engaging in:
a.unfair trade practices
30.The Sharp Razor Company sells its disposable razors to several large discount retailers but gives special allowances only to one retailer. Sharp Razor is practicing:
a.unfair trade practices
31.If Microsoft Computers suddenly started to charge very low prices for their software with the intention of driving smaller competitors out of the market, Microsoft would be guilty of:
b.unfair trade practices
32.After mangers understand both the legal and the marketing consequences of price strategies, they should set a(n) _____ price, the general level at which a company expects to sell a good or service.
33.When a buyer pays a lower price for buying in multiple units or above a specified dollar amount, the buyer is receiving a: