Basic Marketing Concepts
• Question 1
When determining markup as a percentage of cost, divide the markup amount by
• Question 2
The "White Sale" that many department stores have every year a few weeks after Christmas is an example of
• Question 3
A sale that advertised prices "up to 65 percent off" the original price uses
• Question 4
If Kroger Food Stores advertises 2-liter bottles of Pepsi for 89 cents to generate store traffic that will purchase other items at regular prices, the grocer is using
• Question 5
Price leaders, comparison discounting, and special-event pricing are applications of
• Question 6
Most pricing objectives based on ____ are achieved by trial and error because not all cost and revenue data are available when prices are set.
• Question 7
A problem associated with ____ is that consumers can predict when prices will be lowered and delay purchases until that time.
• Question 8
What type of pricing objective would an organization use if it were in a favorable position and desired nothing more?
• Question 9
Markup is measured either as a percentage of ____ or a percentage of ____.
• Question 10
Kohls pays $16.50 for a six-ounce bottle of cologne and sells it for $25.95. Its markup as a percentage of cost is approximately ____ percent for this product.
• Question 11
A product is a price leader when
• Question 12
A manager at Kohls discovers that Macy's has reduced the price of its children's Levi's from $31.99 to $24.99, according to an advertisement in the Sunday newspaper. She immediately phones her store and instructs the salesperson on duty to put a sign up next to their children's Levi's that reads, "SALE: $24.99." This is an example of what pricing strategy?
• Question 13
A Macy's manager designs the casual clothing department such that one of Macy's private label pairs of jeans, priced at $24.99, is positioned next to a national brand of jeans, such as Levis, priced at $39.99. What is the manager attempting to accomplish?
• Question 14
Companies that focus on particular product categories and rely on everyday low pricing to acquire a large market share through aggressive and competitive pricing strategies are often referred to as
• Question 15
To attract customers into a store, Safeway advertises its milk at less than cost, hoping that customers will purchase other groceries as well. This pricing strategy is called
• Question 16
Products such as light bulbs, canned soft drinks, and ice cream sandwiches are usually priced using ______ usually resulting in a ____
• Question 17
A price-skimming strategy assumes that
• Question 18
A company may determine how many sales calls per year it needs to serve customers effectively and divide that by the average number of sales calls made by one salesperson in order to
• Question 19
Sales objectives can do all of the following except
• Question 20
A salesperson finds and analyzes information about each prospect's specific product needs, current use of and feeling about brands, and personal characteristics during
• Question 21
When Levi's agrees to pay JC Penney's money for providing television advertising and Sunday newspaper sales fliers emphasizing Levi's jeans, Levi's is offering
• Question 22
The salesperson must attract and hold the prospect's attention, stimulate interest, and spark a desire for the product during the
• Question 23
Which of the following best characterizes the function of recruiting and selecting a sales force?
• Question 24
The final stage of the selling process is
• Question 25
Sales objectives for individual salespeople can be stated in several ways. Which of the following would least likely be used for stating an individual salesperson's goal?
• Question 26
Creating a favorable impression and developing rapport with prospective customers is a critical part of the ____ step of personal selling.
• Question 27
Jin Xiao, a trained engineer, is a salesperson for a chemical manufacturer. He provides current customers with advice about a product's characteristics and applications. He is a(n)
• Question 28
Rick is a sales representative for Lucent Technologies. He has reviewed a prospect's account and credit history, identified product needs, and gathered the appropriate literature he needs. Rick feels he is ready for the ____ step of the personal selling process.
• Question 29
During his presentation to Mrs. French about a high-end gourmet oven, Brian asks, "Would you prefer black or stainless steel?" This is an example of a
• Question 30
Which of the following is an example of a trade sales promotion method?
• Question 31
Tony tells his wife, Camilla, that his last sales call of the day at DuPont was a disaster. He explains that he never really figured out what the purchasing agent was looking for. Camilla, a sales trainer for another firm, hands Tony a book on
• Question 32
Dylan is a sales person for Whole Foods. In his position, he is primarily responsible for seeking repeat sales. Dylan is most likely a(n)
• Question 33
Doug travels around to various established customers to see what new office supplies they need. His customers have come to depend on him to check their supplies. Doug is a(n)
• Question 34
The most common sales force evaluation practices are for sales managers to compare a salesperson's performance with other salespeople operating under similar selling conditions, or to compare
• Question 35
The amount of profit a channel member expects depends on
• Question 36
Which of the following is not a discount provided to business customers?
• Question 37
Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of a ____ discount.
• Question 38
If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the
• Question 39
Abby is marketing consultant who specializes in small businesses. Her current client is very interested in estimating the costs for the coming year, in order to find the breakeven point. Abby knows this is an important financial statistic because below the breakeven point, the firm is operating
• Question 40
At what point does a firm maximize profit?
• Question 41
For most consumers, there is an assumed relationship between
• Question 42
In the long run, the J. F. Smucker Company must view ____ as the absolute lowest price for its Jif brand peanut butter.
• Question 43
What equation shows organizations the relationship between price and profit?
• Question 44
Jared is developing a business plan for a new type of bicycle helmet. He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product. Jared is interested in finding the
• Question 45
A concession in price in business markets to achieve a desired goal is called a(n)
• Question 46
Which of the following statements about price elasticity is false?
• Question 47
Buyers who focus on purchasing products that signify prominence and status are
• Question 48
A product under nonprice competition would most likely not succeed in the market if
• Question 49
If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ____ discount.
• Question 50
French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night. This is an indication that suites at this hotel are apparently an example of a(n) ____ product.