FINAL

Name:

FINAL

True/False

Indicate whether the sentence or statement is true or false.

In November, some supermarkets offer consumers a free turkey if the consumers purchase $200 worth of groceries during the month. This offer is an example of loyalty marketing programs.

A company’s news releases should have a variety of themes so that the public doesn’t become bored and lose interest in the company’s activities.

An advantage of publicity is that its costs are lower than other forms of promotion.

Some companies foster community relations by giving their employees leave from job responsibilities in order to head large-scale charitable efforts.

Businesses spend more money promoting to consumers than to other businesses.

Advertising demonstrates the features and benefits of a product or service.

Within a specific geographical area, newspapers appeal to a greater number of people than magazines do.

A return of 10 percent for printed direct mail is usually considered excellent.

According to the text, less than half of adults in the U.S. read the newspaper every day.

10.

A business can receive a free listing of its name, address, and phone number in the White Pages of a telephone directory.

11.

The purpose of a headline is to draw potential customers into reading the ad’s copy.

12.

Some companies have products whose features are very similar to the products of their competitors. Such companies can successfully compete by adding place utility to their products.

13.

Retailers who are in business in states with minimum price laws are prohibited from using the loss leader technique to attract customers.

14.

E-tailing has increased the popularity of flexible pricing.

15.

Penetration pricing encourages volume sales which increase a company’s profit margin but also increase its fixed costs.

16.

Outdated technology in the U.S. may be in the growth stage in other global markets.

17.

It is not possible to set a price too low because a target market will always be attracted to low-cost items.

18.

Very little price changes will be made for products introduced with skimming prices.

19.

A manicure, a karate lesson, and a pencil are all products.

20.

Test marketing in specific geographic areas is an indispensable (or absolutely necessary) part of the product development process.

21.

Ready Writers has just introduced a ballpoint pen that is very similar to older pen models except that the new pen’s casing comes in a variety of fashion colors. Despite its similarity to existing products, it is likely that the new pen will be sold successfully at a 10 percent higher price than the older products.

22.

Technical problems are detected at the idea stage of new product development.

23.

Lil’ Stampers is a store that features 527 varieties of signature, business, and novelty stamps. The store also sells inked stamp pads in 64 different colors. Thus, the store offers its customers great product depth.

24.

Because brand names are so important, many marketing researchers test market brand names before using them for product promotion.

25.

About one-third of a product’s retail price pays for the product’s packaging design and development.

26.

A branded product costs more than an unbranded one because the brand product is advertised more widely.

27.

A private brand is required by law to include the manufacturer’s name on the product.

28.

According to public opinion surveys, Americans will buy products with environmentally friendly packaging even if they have to pay more for such products.

29.

In determining needs listening to the customer is important.

30.

Because more than 80 percent of print advertisement readers only read the headlines, the headline should contain the ad’s main selling message.

31.

Coupons are certificates that entitle customers to cash discounts.

32.

The actors on a TV crime drama drank coffee from paper cups with the Starbucks Coffee logo clearly visible. This is a promotion form called product placement.

33.

An assortment display features items that are meant to be used together.

34.

Expensive, jeweled watches are best presented in an open, imaginative display.

35.

Research has shown that people cannot process more than five words at a time.

36.

During special sales, the departments in some large department stores offer graduated discount percentages based on the total amount of merchandise a customer buys from the department in one shopping visit. This discount policy is known as cumulative.

37.

When a consumer wishes to purchase a product and “price is no object,” that consumer’s demand is inelastic.

38.

Martha Sue’s Bakery sells doughnuts for $.59 apiece or three for $1.50. This is an example of promotional pricing.

39.

Paul likes to snack on granola bars, but he doesn’t really care what brand of bar he eats. Therefore, Paul’s demand for granola bars is inelastic.

40.

Price lining makes it easier for salespeople to demonstrate to a customer the advantages of better quality items.

41.

The price of a product will often establish the image of the company that created the product.

Multiple Choice

Identify the letter of the choice that best completes the statement or answers the question.

42.

The Natural Place is a gift store selling items that focus on the environment and ecological concerns. Chris coordinates all of the physical elements in The Natural Place so that the store projects the right image to its customers. What is Chris directly involved in?

a.	personal selling	c.	publicity
b.	sales promotion	d.	advertising

43.

The business often has the least control over which type of promotion?

a.	publicity	c.	personal selling
b.	advertising	d.	sales promotion

44.

As Marianna opened a new box of tissue, she noticed a card inside listing prizes she could win if she wrote her name and address on a piece of paper and mailed it to the tissue manufacturer, who would pull 10,000 names of winners out of an enormous collection bin. What is the tissue manufacturer promoting sales through?

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