When Cadillac buys headlights from Delco, both of which are divisions of General
Motors,_________pricing occurs.
a. base-point
b. zone
c. transfer
d. geographic
e. matrix
The absolute dollar outlay for advertising is usually low.
a. True
b. False
The promotional method most commonly used for highly personal items is personal
selling.
a. True
b. False
Distribution-related ethical issues arise when marketers:
a. do not provide intermediaries with enough information about how a product is priced.
b. force channel intermediaries to behave in a specific manner.
c. bribe salespeople to push one product over another.
d. fail to disclose information to consumers about the risks associated with using a
product.
e. distribute a product that is very similar to a competing product.
Ideally, a pricing strategy has little relation to a firm’s marketing objectives. a. True
b. False
Dan is responsible for developing the promotional campaign for Under Armour’s new
line of footwear for teens.
He will be writing advertising campaign objectives that are aimed at making the target
customers’ attitudes more favorable toward Under Armour, which should be stated in
terms of .
a. communication
b. sales
c. demand d. market
e. survey
A major reason why retailers use markup pricing is that it is convenient.
a. True
b. False
Dial Soap’s advertising slogan “Aren’t you glad you use Dial? Don’t you wish
everybody did?” exemplifies the use of advertising.
a. reinforcement
b. offensive
c. comparative
d. institutional
e. defensive
Sophia is the new marketing manager for a new line of laptop, MP3, and smartphone
accessories made by the company, Skull Candy. These accessories are trendy, colorful,
and more expensive than others on the market. After considering the target market for
the products, Sophia has decided not to use marketing-related activities conducted
through telemarketing, and instead use vending, a type of____________.
a. e-marketing
b. direct-response marketing
c. nonstore retailing
d. online retailing
e. specialty marketing
If local Shell gasoline stations look at BP stations’ prices as the primary method of
determining its own prices, Shell is most likely using:
a. price fixing; which considers competition to be less important than costs.
b. price fixing; which considers costs to be less important than competitor’s prices. c.
market share pricing; which considers competition to be the ultimate pricing goal.
d. competition-based pricing, which considers profit to be the ultimate pricing goal.
e. competitionÂbased pricing, which considers costs to be less important than
competitor’s prices.
Factors affecting pricing decisions can include demand, distribution, and the way in
which the product is promoted.
a. True
b. False
The Sherman Antitrust Act is a procompetitive law.
a. True
b. False
One trend that has caused consumer-generated information to gain importance is:
a. an increase in mobile digital technology.
b. consumers’ tendencies to trust other consumers over corporations.
c. the cultural trend of consumers being influenced by the “village.”
d. the increase in adults other than parents influencing children.
e. a reduction in advertising expenditures.
It is easy to distinguish between legal and ethical issues.
a. True
b. False