Pricing, Promotion & Distribution Quiz

1. One airline institutes a new charge for luggage, and the other airlines each begin to charge for this same item. In this scenario, what is the main factor affecting the price of the product?

• Demand for the product

• Cost of making the product

• Cost of running the business

•  Competitor's price

In order to increase customer traffic, you want to offer an immediate discount when they purchase a certain product. Which of these sales promotions would be used in this case?

•  Coupon

• Rebate

•  Premium

• Point-of-Sale display

What is the term that refers to the functions used to move products through the channel to the consumer?

•  Channel of distribution

• Breakeven analysis

• Promotion

• Physical distribution

What is the term for the path that the product follows from the producer to the customer?

• Market share

• Physical distribution

•  Channel of distribution

• Public relations

Which pricing method sets the price of the product on what the customer is willing to pay?

• Cost-oriented pricing

• Competition-oriented pricing

•  Market-share pricing

• Demand-oriented pricing

 Which pricing objective focuses on generating the highest possible profits?

• Increase market share

• Maximize profits

• Match the competition

• All of the above

 What is promotion?

• Determining how to get the product to the right people, in 

            the right amounts, at the right time and place

•  The value placed on a product, usually given in monetary 

           terms

• Any form of communication that a business uses to inform, 

           persuade, or remind potential customers about their products

• A company's portion of the total industry sales for a certain 

           type of product

Which of these activities is NOT included in physical distribution?

• Selling

• Order Processing

• Transportation

• Managing Inventory

Which of these statements about publicity is NOT TRUE?

• Publicity is free since the information appears in the news 

           media.

•  Marketers control how the information is presented.

• The information tends to be viewed as more credible.

•  Publicity is one part of public relations.

In terms of the marketing mix, distribution is represented by which "P?"

• Place

• Product

•  Price

• People