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1. The type of advertising that seeks to develop initial demand for a newly
introduced good, service, organization, person, place, idea, or cause is known as
_____ advertising.
reminder
informative
comparative
advocacy
2. Persuasive advertising:
reinforces the effect of previous promotional activity.
increases demand for an existing good or service, organization, or other concept.
develops initial demand for a newly introduced product.
is used primarily in the maturity and decline stages of the product life cycle.
3. Coke and Pepsi feature nearly three dozen movie stars, athletes, musicians,
and television personalities as spokespeople in their effort to increase cola sales.
Such promotional efforts are called:
comparative advertising.
advocacy statements.
celebrity testimonials.
cooperative advertising.
9. The role of a sales representative in the promotion process has changed from
that of persuader to that of:
a technician and expert on product repair.
a process designer.
a consultant and problem solver.
a close friend and confidant.
12. One important advantage of personal selling over most advertising is:
the cost factor; personal selling is much cheaper.
the ability to actually demonstrate the good or service.
the minimal dependence on technology.
the low requirement for skilled salespersons.
13. Many credit cards offer so-called "teaser" rates -- low introductory rates
that rise after a few months. The use of teaser rates is an example of which type
of pricing objective?
Profitability
Volume
Meeting the competition
Prestige
14. Which market structure best describes the U.S. auto industry?
Pure competition
Monopolistic competition
Monopoly
Oligopoly
16. Which of the following products will have a high price elasticity of demand?
Daily food items
Life saving drugs
Luxury cars
Dental care
20. A strategy of offering prices that are consistently lower than those of
competitors is called _____ pricing.
penetration
skimming
everyday low
competitive
24. Consumers today perceive that, within price limits, there is:
a need for discounts and incentives.
obvious opportunity for psychological pricing.
a direct relationship between the quality and price of a product.
no perceivable difference in major product brands.
25. Retailers such as Home Depot and Lowe's, who offer to meet or beat the
best price offered by their competitors, use the strategy of _____ pricing.
skimming
penetration
competitive
cost-plus