Question 1

When considering the advertising medium of magazine, which of the following advantages and disadvantages apply?

• Very targeted, good detail, good "pass along," but inflexible and long lead times
• Flexible, timely, local market, but may be expensive, have short life, and no "pass along"
• Flexible, repeat exposure, inexpensive, but "mass market" and very short exposure
• Selected audience, flexible, can be personalized, but relatively expensive per contact and hard to retain attention

Question 2

Which pricing policy is BEST for a profit-oriented, low-cost producer who is introducing a new product into a market with elastic demand and is expecting strong competition very soon after product introduction?

• Skimming pricing
• Introductory price dealing
• Meeting competition pricing
• Penetration pricing

Question 3

The following terms appeared on an invoice dated May 22nd, which was sent by a manufacturer to a retail store: 2/10, net 30. The amount of the invoice was $2,000. Assuming the retailer paid the invoice on June 1 (within 10 days after the products were delivered), how much should he have paid?

• $1,900
• $1,800
• $2,040
• $1,960

Question 4

The marketing manager for Aerial Photography, Inc. says his sales reps have gotten in the habit of setting prices for products that do not produce a profit. Aerial Photography apparently is using:

• penetration pricing.
• introductory price dealing.
• administered pricing.
• flexible pricing.