A concession in price in business markets to achieve a desired goal is called a(n):
a. allowance.
b. objective-oriented discount.
c. cash discount.
d. trade discount.
e. cumulative discount.
Advertising is one element of the promotion mix that is too expensive for small
business firms.
a. True
b. False
Relationship selling is used especially in consumer marketing.
a. True
b. False
Recently the local television station communicated a news story about the new
specialized medical mart opened by Cleveland Clinic. The story provided information
about the various services that the new medical mart would offer and how to get in
touch with the service providers. This story is most likely an example of _____.
a. institutional advertising
b. publicity
c. public announcement d
. sales promotion
e. direct marketing
Marginal analysis involves examining:
a. what happens to a firm’s costs and revenues when production is changed by one unit.
b. the sensitivity of consumer demand for a product or product category.
c. the quantity of products expected to be sold at different prices.
d. the difference between marginal revenue and total revenue.
e. the difference between marginal cost and total cost.
If a restaurant, known for its delicious food and fun entertainment, does not serve
alcohol, it is displaying advocacy advertising.
a. True
b. False
If the manufacturer of Cool Whip were to introduce a chocolate-flavored whipped
cream and still continue to produce its existing flavors of whipped cream, this would be
an example of a:
a. brand extension.
b. line extension.
c. functional modification.
d. quality modification.
e. product bundling.
A firm’s organizational goals should be derived from its opportunities.
a. True
b. False
A reference group acts as a point of comparison and as a source of information for an
individual.
a. True
b. False
When using personality characteristics as a market segmentation variable, marketers
generally:
a. conduct personality assessments of their potential target market to determine which
personality characteristics they possess.
b. use research developed by clinical psychologists to determine which personality
characteristics consumers using their products are most likely to have.
c. use generic characteristics that all members of the population have.
d. use a positively viewed characteristic they assume much of their target market has or
would like to have.
e. conduct a series of focus groups to determine both the positive and negative
characteristics members of their target market are perceived to have.
Ryan orders 16 dozen fishing lures from Strike Right for $375. When he gets the
invoice, he is furious that $25 in freight charges has been tacked on to his bill because
he thought the price included freight costs. Ryan should have been certain that the order
terms were:
a. F.O.B. origin.
b. F.O.B. factory.
c. cumulative
d. noncumulative
e. F.O.B. destination.