Like any planning activity, a pricing strategy begins with a clear statement of objectives and ends with an adaptive or corrective mechanism.

True or False

If marketing research shows that a large proportion of the target market has not reached the awareness stage, the company needs to...

A. emphasize comparative advertising

B. generate primary demand

C. obtain consumer preference

D. obtain favorable attitudes

A research study indicates a large market segment exists for a new product, but that this segment is highly price elastic.  An appropriate pricing strategy is...

A. penetration pricing

B. skimming pricing

C. price lining

D. broad price policy

Which statement about publicity's characteristics is NOT correct?

A. Publicity presents a uniform message to an audience

B. Message credibility in publicity is lower than in advertising

C. There is no formal sponsor for publicity since the media are not paid

D. There is no control over media content and placement for publicity

A broad price policy attempts to match a firm's pricing approach with target market needs.

True or False

A magazine has a circulation of 5,000,000 and a reach of 20,000,000.  Its passalong rate...

A. is .25

B. is 3

C. is 25

D. cannot be determined

The success of a firm's nonprice strategy is mostly based on...

A. The firm's long-term cost advantages relative to competitors

B. How quickly competitors can match its prices

C. How quickly competitors can start a price war

D. Consumer perceptions about the uniqueness of that firm's products

Channel cooperation is illustrated by the use of...

A. vertical cooperative advertising

B. horizontal cooperative advertising

C. narrowcasting by franchisors

D. multiunit advertising

A skimming price is best used to attact the price-sensitive market segment.

True or False

A television station can significantly reduce waste by...

A. reducing clutter

B. increasing its persuasive impact

C. using narrowcasting to better focus on a narrow target market

D. reducing the amount of advertising relative to programming

A firm sold 100,000 pens at a price of $.50 each.  When it reduced its price to $.40, 200,000 pens were sold.  Its price elasticity (expressed as a positive number) is...

A. 0.11

B. 0.33

C. 3.0

D. 3.3

A firm experiences a price elasticity of .3 (expressed as a positive number) as it drops a brand's price from a high to a medium price level.  This price elasticity percentage suggest that the brand...

A. is in a market dominated by price shoppers

B. is in a market characterized by low brand loyalty

C. has elastic demand

D. has strong product differentiation

Which demand stimulaton method should be used during the introductory stage of the product life cycle?

A. Selective demand ads

B. Primary demand ads

C. Subliminal ads

D. Institutional ads

When using odd pricing, firms should recognize that...

A. Small price increases usually have a large positive effect on sales and profits

B. Flexible pricing increases transaction costs

C. Flexible pricing undermines consumer confidence

D. Sales tax may undermine the effectiveness of this practice

Marketers have the LEAST degree of control with which promotional form?

A. Subliminal advertising

B. Publicity 

C. Public Relations

D. Personal Selling

A consumer may believe that a low price represents a good buy or inferior quality, or that a high price represents status or poor value-- depending on his/her perception.

True or False

Which type of shopper has elastic demand?

A. Price shopper

B. Status seeker

C. Convenience shopper

D. Service/features shopper

Which form of communication is NOT marketer-controlled?

A. Word-of-mouth

B. Store displays

C. Personal selling

D. Advertising

A firm using a strategy of nonprice competition should seek to attract which market segment?

A. Service/features shopper

B. Subjective price shopper

C. Price shopper

D. Price elastic shopper

A price war is most likely to occur when the price elasticity of demand is...

A. inelastic

B. moderately elastic

C. highly elastic

D. unitary

An integrated marketing communications plan should use both pushing and pulling strategies.

True or False

In the United States, firms that use advertising have both high total ad costs and high costs per viewer or listener.

True or False

Generally, a medium with high frequency has...

A. a large waste circulation

B. high reach

C. high persuasive impact

D. short lead time

A magazine's circulation is 100,000. It has a passalong rate of 4.  The magazines reach is...

A. 100,000

B. 500,000

C. 600,000

D. 5,000,000

Trade and professional associations generally do not allow their members to discuss prices, and will not distribute data on price changes, for fear of being involved in...

A. unfair-sales acts

B. horizontal price-fixing violations

C. vertical price-fixing violations

D. Robinson-Patman Act violations

A dog food manufacturer's distributing coupons that can be redeemed for free samples of dog food is an example of which promotional type?

A. Advertising

B. Personal selling

C. Publicity

D. Sales promotion

The Marketing 320 final exam...

A. will be taken online

B. will be taken in ECOB 411 on Wednesday

C. is optional

D. is essay

e. none of the above

Advertisers have no control over message content in word-of-mouth communication and publicity.

True or False

If the role of primary demand is to increase the overall size of the market, then the role of selective demand is to increase...

A. the industry's growth rate

B. sales for the industry leader

C. an individual firm's market share

D. the market share of domestic suppliers

The optimal promotional budgeting is the percentage-of-sales technique.

True or False

For the same good or service, demand elasticity can be inelastic at very low prices and elastic at very high prices.

True or False

Public relations efforts include...

A. image-oriented advertising, personal selling, sales promotion, and publicity

B. product ads, word-of-mouth communications, and publicity

C. personal selling, publicity, and advertising

D. word-of-mouth communication, sales promotion, and cooperative advertising

When Newsweek publishes regional editions, it is illustrating the concept of...

A. narrowcasting

B. multiunit advertising

C. Message permanence

D. Persuasive impact

Penetration pricing is best used with which pricing objective?

A. Status quo-based

B. Sales-based

C. Broad-based

D. Profit-based

In a channel of communication, the audience is generally...

A. The source

B. Opinion leaders

C. The target market

D. The mass market

A college uses an ad campaign geared to potential sutdents and their parents to reinforce its image.  It also sends admissions personnel to high schools to give talks on federal government-based financial aid opportunities.  These actions involve...

A. Public relations

B. Advertising

C. Publicity

D. Sales promition

Which of these concepts suggests that consumers may not buy goods or services when prices are considered too low?

A. Price lining

B. Prestige pricing

C. Leader pricing

D. Price bundling

Research evidence suggests that subliminal advertising is effective in influencing consumer behavior.

True or False

A company interested in communicating and reinforcing its new organizational mission should use ___ ads.

A. selective demand

B. primary demand

C. subliminal

D. institutional 

At very low prices, a firm cannot stimulate demand further because market saturation is reached and consumers begin to perceive quality to be inferior.  Thus, the price elasticity of demand at these low price levels is...

A. reversed

B. unitary

C. elastic

D. inelastic

To increase sales by a specified percent over the same period last year is the most appropriate objective for an office-equipment manufacturer's public relations efforts.

True or False

The success of a nonprice-competition strategy will be directly related to consumer perceptions as to the distinctiveness of a company and its goods and services.

True or False

Advertising, publicity, personal selling, and sales promotion are all forms of promotion.

True or False

A firm that properly balances each element of the promotional mix...

A. Utilizes integrated marketing communications

B. Minimizes promotional expenditures

C. Uses the percentage-of-sales method in promotional budgeting

D. Balances the use of primary demand and selective demand

Which of these is an indication that a pricing strategy may be performing poorly?

A. A firm is unable to match a competitor's price due to its high overall cost structure

B. A manufacturer has to frequently change its prices to match those of competitors

C. Consumers appear to be overwhelmed by the number of products offered and the differences among them

D. Foreign currency fluctuations increase the economic uncertainty for an importer of electronic goods

An advertisement by Whirlpool, with the slogan "Quality you can count on...today," represents an institutional appeal.

True or False

An emphasis on personal selling in the promotion mix is most desirable when...

A. the target market is large and dispersed

B. the firm has a large promotion budget

C. competitors stress advertising

D. products are highly technical

The demand for an emergency good can be classified as

A. elastic

B. inelastic

C. unitary

D. derived

According to the hierarchy-of-effects model, the generation of favorable attitudes in consumers may lead to future purchases.

True or False

For 2010 projections, newspapers and televisions are the two most preferred media (in terms of advertising expenditures) in the United States.

True or False