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Exam 13: Small Business Marketing: Price and Promotion

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Question 1

Multiple Choice

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______ advertisements get customers to take immediate action, such as buying the product.

A) Informational
B) Persuasion
C) Reminder
D) Perception changing

Correct Answer

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Question 2

Multiple Choice

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The value of a product depends on the benefits received compared to the ______.

A) quality of the product
B) quantity purchased of the product
C) monetary cost
D) raw materials used to produce the product

Correct Answer

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Question 3

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When considering a product, consumers typically look for the cheapest product available.

When the goals of a business are stabilizing market prices, establishing market position, building an image, and developing a reputation, which of the following strategies should be used?

Product is one of the most flexible components of the marketing mix.

Jewelry, perfume, beer, and law firm services all use prestige pricing as a pricing strategy.

The last step in the personal selling process is closing the deal.

Explain the importance of having a collection system for extended credit.

Personal selling involves a personal presentation by the salesperson for the purpose of making sales and building relationships with customers.

______ are a common advertising strategy that uses an authority to present the message.

Setting prices higher than expected in order to recover developmental costs is known as penetration pricing.

______ are a good place to get ads produced since their services usually cost less than advertising agencies.

Costs like rent, property taxes, and utilities are generally ______.

Setting the price of a new product below what is expected in order to gain faster market share is known as ______.

Describe at least three areas that are good places to start when thinking about what differentiates a product from the competition.

People often equate quality with price. This belief has led to which of the following pricing strategies?

Scenario 13-1. Merle is considering purchasing a new lawn mower. He wants a mower that is self-propelled, has a higher horsepower rating, and a high level of quality instilled in the workmanship. Merle begins his search by looking in the yellow pages of the local phone book. Several small lawn mower dealers are listed along with several big-name wholesalers such as Walmart. Merle is not sure where to begin. -In Scenario 13-1, if Merle saw that the price of lawn mowers had risen by 10 percent, but the overall sales volume of lawn mowers at local dealerships had fallen by only 1 percent, Merle could say that the demand for lawn mowers is ______.

Establishing the ______ for goods and services at appropriate levels of production is a critical component of the marketing mix.

Advantages of ______ advertising are that it is flexible, timely, covers local markets well, is believable, is relatively inexpensive, and can use inserts and coupons.

Scenario 13-1. Merle is considering purchasing a new lawn mower. He wants a mower that is self-propelled, has a higher horsepower rating, and a high level of quality instilled in the workmanship. Merle begins his search by looking in the yellow pages of the local phone book. Several small lawn mower dealers are listed along with several big-name wholesalers such as Walmart. Merle is not sure where to begin. -In Scenario 13-1, if Merle knew about the components of the marketing mix, he would realize that ______ is one of the most flexible components.