Question

Multiple –Choice: Choose the letter that best fits the statements provided.

1. Hawlett Packard computers are price lower than other brands in the market but the cartridge are much expensive , so in this case it only offsets the lower price by its accessory. This is an example of :

1. product line pricing
2. Optional pricing strategy
3. Captive pricing strategy
4. Pricing penetration strategy

2. In consumer behavior, ___________ is more often the sole criteria of a consumer in buying the product or sometimes the amount of money charge to a commodity.

1. Discounting
2. Sales promotion
3. Price concept
4. Value concept

3. A good brand campaign is something that stimulates urgent and aggressive response from the audience normally communicated in the form of:

1. Sales promotion
2. Public Relations
3. Advertising
4. Publicity and Event activities

4. If personal selling is actually pull strategy due to its heavy efforts in convincing the client or sometimes called “hard selling”, which of the following can be in a “push strategy” method in communicating and motivating person to buy?

1. Multi media advertising
2. Retail sales promotion
3. Events activity
4. PR and Publicity

5. Advertising is said to be “any paid form” of NON-PERSONAL COMMUNICATION about a product, service or idea , because advertisng :

1. is never free in whatever form
2. It uses media channel to deliver its message
3. Advertising is a push strategy that motivates consumer to urgently buy
4. Advertising is a very expensive strategty

Answer 1

1.    Captive pricing strategy

With this strategy, companies use captive products to maximize their profits. In this method, the company sells a core product as well as a captive product without which the core product cannot be used. The core product is kept at a low price but the captive product is placed at a higher price. This pricing strategy is mainly utilized in the case of short-lived products. For example, razors and a razor blade, smartphone and wireless plans, printers and ink cartridges etc.

1.    Value concept

For any customer, the value of any product depends on how much the consumer is willing to pay for that product or service. It is irrelevant if the product is worth Rs 100 or Rs 1000. If the customer believes that the product is valuable and it is worth shelling extra cash then he will do it. If a business finds that its product possesses this perceived value among the customers, then they can set the price by keeping this factor in mind.

1.    Sales promotion

Sales promotions are strategies utilized by a brand to achieve a temporary increase in its sales volume. These campaigns are implemented in such a way that they encourage an urgent response from customers. This can be in the form of discounts, free samples, gift vouchers, etc. Sales promotion can be carried out to attract new customers, hold existing customers or it can be simply done to clear the existing inventory.

1.   Multimedia advertising

Advertising can be divided into two categories, Pull marketing and Push marketing. Pull marketing aims at getting the customers to you, hence the term pull. It does not create awareness and is simply utilized to attract consumers that have already expressed interest in the product e.g. sales promotions. Push marketing on the other hand is utilized to convey a message in front of potential customers who have not yet expressed any interest in the product. It requires a lot of reach, and multimedia advertising like radio, tv, and social media ads are good examples of push marketing.