Price
When are consumers most likely to rely on price as an indicator of quality?
When they are uncertain about a product
What are the four goals of advertising/promotion?
Inform, remind, persuade, connect
Which level of distribution intensity refers to screening dealers to eliminate all but a few in any single area?
Selective distribution
What part of social media is particularly important for marketers to address?
Negative comments & complaints
This type of pricing strategy occurs when a firm charges a high introductory price, often coupled with heavy promotion.
Price skimming
This tool for fine-tuning base price involves comparing the store's current selling price with another external or internal price.
Reference pricing
This element of consumer sales promotion is designed to foster long term relationships with customers.
Loyalty marketing programs
What channel intermediaries are involved in a direct marketing channel?
Producer (manufacturer) and consumer
What are the two extra Ps of the retail marketing mix?
Personnel & presentation
In the communication process, this is the person who decodes the message.
Receiver
A store offers consumers a 50% discount when they purchase over 10 packets of tuna. This is an example of what tool used to fine-tune base price?
Quantity discounts
This tool of consumer sales promotion involves allowing consumers to try the product for free before purchase.
Sampling
This alternative channel arrangement involves using more than one distribution channel structure that must then be carefully managed to avoid competition between channels and cannibalization.
Dual or multiple distribution
Sandy owns a bakery where she sells several items including cookies. Her most popular cookies are her homemade chocolate chip cookies. Each cookie sells for $4.50. Sandy generated this price after aiming for a 25% margin on each cookie. What is the cost of each cookie?
$3.38
This form of advertising is designed to enhance company’s image rather than promote a particular product.
Institutional advertising
What is price elasticity?
Customers' responsiveness or sensitivity to price changes
This tool of consumer sales promotion includes a physical or electronic version of a price reduction that consumers can redeem for a certain time period.
A sofa is manufactured by ABC Furniture Company. ABC starts selling their sofa to Walmart where consumers can purchase the sofa. ABC also begins selling their sofa from their website. Consumers who purchase sofas on the website receive it at their door and are in charge of getting the sofa into their home on their own. Which channels is the ABC Furniture Company using to sell their sofa?
Retailer channel & direct channel
A store sells a product for $87.00. The store charges this price in order to receive the 54% margin they aim for regularly. What mark-up does the store apply to the product to receive this margin?
Mark-up = 117.4%
This ethical theory states that people should adhere to their obligations and duties when analyzing an ethical dilemma.
Deontological theory
A woman walks into an office supply store looking for a planner. She notices there is an entire aisle filled with several options. After scanning her options, she decides on the planner with the lowest price compared to the many other options in the aisle. In this case, her demand for a planner was very price elastic. Which factor of price elasticity most likely led to her elastic demand?
Availability of substitutes
This element of public relations involves handling negative publicity that a brand may encounter.
Crisis management
A car manufacturer sells their cars to a car rental company in an effort to engage a segment of people who might not otherwise experience their cars. What channel is this manufacturer using?
Secondary channels
Calculate the selling price of a product that cost the retailer $98.35 to purchase and lead to a 57% gross profit margin for the retailer.
Price = $228.72
Type of ownership, level of service, product assortment, price.