Question 1
When considering the advertising medium of magazine, which of the following advantages and disadvantages apply?
- Very targeted, good detail, good "pass along," but inflexible and long lead times
- Flexible, timely, local market, but may be expensive, have short life, and no "pass along"
- Flexible, repeat exposure, inexpensive, but "mass market" and very short exposure
- Selected audience, flexible, can be personalized, but relatively expensive per contact and hard to retain attention
Question 2
Which pricing policy is BEST for a profit-oriented, low-cost producer who is introducing a new product into a market with elastic demand and is expecting strong competition very soon after product introduction?
- Skimming pricing
- Introductory price dealing
- Meeting competition pricing
- Penetration pricing
Question 3
The following terms appeared on an invoice dated May 22nd, which was sent by a manufacturer to a retail store: 2/10, net 30. The amount of the invoice was $2,000. Assuming the retailer paid the invoice on June 1 (within 10 days after the products were delivered), how much should he have paid?
- $1,900
- $1,800
- $2,040
- $1,960
Question 4
The marketing manager for Aerial Photography, Inc. says his sales reps have gotten in the habit of setting prices for products that do not produce a profit. Aerial Photography apparently is using:
- penetration pricing.
- introductory price dealing.
- administered pricing.
- flexible pricing.