Final Exam Questions
1) Which of the following is a factor considered when a customer is evaluated based on RFM formula?
the mode of payment used by the customer
the amount of time passed after the customer's last visit
the type of feedback provided by the customer
the product categories purchased by the customer
the location from which the customer has bought goods
2) Buzz and viral marketing both try to ______.
create a splash in the marketplace to showcase a brand
market products by providing free samples to customers
use unethical methods to popularize a brand
induce impulse sales by displaying products close to the pay counters
market products to customers without their knowledge
3) A banner ad is a(n) ________.
small, rectangular box containing text and perhaps a picture
advertisement that comes up when viewing a Web site
advertisement that appears before displaying a Web page
advertisement that is put up on hoardings
large ad shown on the screen for complementary products
4) Albert Hawkins is a famous writer. He has authored more than fifteen books in Spanish. He publishes his thoughts online and updates the pages periodically. This online account has generated much public interest in Spain and has many readers. Hawkins's online journal is an example of a(n) ________.
microsite
blog
online magazine
buzz spot
interstitial
5) ________ is a social network that concentrates majorly on music and entertainment.
Twitter
Orkut
MySpace
Facebook
LinkedIn
6) Which of the following is a disadvantage of using Web for interactive marketing?
Online marketing limits the possibilities of personalization.
An average customer spends very little time on Internet.
Internet selling and advertising is costlier than other advertising media.
Consumers can effectively screen out most messages.
It is unable to create long-term marketing assets.
7) During which of the following stages in new product development decision making do managers analyze if they can find a good thought consumers say they would try?
idea screening
product development and testing
concept development and testing
idea generation
business analysis
8) After creating a product prototype, a company tests it within the firm to see how it performs in different applications. The company refines the prototype to correct the mistakes found in in-house testing. What should be the next step?
commercializing the product
performing concept testing
conducting beta testing with customers
performing business analysis
creating a marketing strategy for the product
8) A(n) ________ is a possible product the company might offer to the market.
alpha product
product concept
beta version product
test brand
product idea
9) The trade-off approach may be easier to use when there are/is ________.
many variables
only one highly desirable solution
observers that are biased
only a few alternatives
possible offers that are limited
10) ________ contribution lists the changes in income to other company products caused by the introduction of a new product.
Gross
Dragalong
Cumulative
Supplementary
Net
11) Most new-product activities are devoted to ________.
improving existing products
changing the target markets
changing the existing market dynamics
introducing backward integration
developing new-to-the-world products
12) Modern firms use the ________ concept testing tool to design products on a computer and then produce rough models to show potential consumers for their reactions.
rapid prototyping
perceptual mapping
conjoint analysis
concept testing
morphological analysis
12) Gordon Apparel, Inc. engages in the design, manufacture, and retail of fashion apparel for women, men, children, and pets. The company is known for its timely launch of apparels and stylish designer clothing. The company believes a new product has to create needs and not just satisfy the existing needs. To achieve this goal it engages in controlled idea generation techniques such as brainstorming while creating new designs. Which of the following parts of the DIG framework is given prominence here?
opportunity space
internal design analysis
strategic blueprint
business analysis
demand landscape
13) ________ means inviting the Internet community to help create content or software, often with prize money or a moment of glory involved.
Microstocking
Stage-gating
Crowdsourcing
Buzzing
Cocreation
14) ________ exhibit replacement cycles dictated by physical wear or obsolescence associated with changing style, features, and performance.
Infrequently purchased products
High-moving goods
Frequently purchased products
Commodity products
Inexpensive products
15) What is the weighted number of exposures of a media schedule that reaches 80 percent of the target audience, with an exposure frequency of 4 and impact value of 2?
320
240
640
10
160
16) ________ aims to create brand awareness and knowledge of new products or new features of existing products.
Corporate advertising
Persuasive advertising
Reinforcement advertising
Reminder advertising
Informative advertising
17) Which of the following is a disadvantage of using newsletters as an advertising medium?
lack of adequate control
lack of interactive possibilities
low audience selectivity
relatively high costs
high chances of runaway costs
18) Under which of the following conditions is the reach of media the most important factor in media selection?
when there are strong competitors to a brand
when introducing frequently purchased brands
when there is high consumer resistance to the product
when going into a defined target market
when launching extensions of well-known brands
19) Advertisements for which of the following products categories would merit a continuous advertising timing pattern the most?
air conditioners
holiday package tours
breakfast cereal
automobiles
life insurance
20) TV advertising is considered to be particularly advantageous because ________.
it provides detailed product information and effectively communicates user and usage imagery
it can vividly demonstrate product attributes and persuasively explain their corresponding consumer benefits
TV channels are very targeted, ads are relatively inexpensive to produce and place, and short closings allow for quick response
it lets companies achieve a balance between broad and localized market coverage
the low volume of nonprogramming material on television makes it difficult for consumers to ignore or forget ads
21) Which of the following is a disadvantage of using magazines as an advertising medium?
long ad purchase lead time
lack of credibility
low geographic and demographic selectivity
low-quality reproduction
small "pass-along" readership
22) Which of the following is an advantage of using magazines as an advertising medium?
no ad competition in same medium
low cost of advertising
high efficiency in circulation
short ad purchase lead time
high-quality reproduction
23) Which of the following statements is true of the factors that affect an advertising budget?
Established brands usually are supported with high advertising budgets, measured as a ratio to sales.
Brands in less-differentiated or commodity-like product classes require very less advertising to establish a unique image.
High-market-share brands usually require proportionately high advertising expenditure as a percentage of sales to maintain share.
In a market with few competitors and moderate advertising spending, a brand must advertise more heavily to be heard.
New products typically merit large advertising budgets to build awareness and to gain consumer trial.
24) Podcasts are ________.
digital media files created for playback
advertisements that pop up between Web pages
advertisements that alter the contents of the Web page
digital representations of animated pictures
dynamic advertisements that change color and fonts while being displayed
25) Individual Web pages or clusters of pages that function as supplements to a primary Web site are called ________.
pop-ups
microsite
interstitial
interstitials
banners
26) Which of the following is a major advantage of using direct mails?
Campaign testing is not needed for direct mails.
It is the best method to sell industrial products.
Direct mails have very high conversion rates.
Direct mails permit target market selectivity.
It is the best suited tool for selling complex products.
27) Which of the following is a disadvantage of direct marketing?
invasion of privacy
low chances of customers avoiding messages
inability to build brand awareness
inability to control marketing communication
inability to maintain information security
28) A ________ is a storeless retailer serving a specific clientele usually employees of large organizations who are authorized to buy from a list of retailers that have agreed to give discounts in return for inclusion on the list.
direct-selling vendor
automatic vendor
corporate retailer
buying service
direct marketing vendor
29) Which of the following is a prepurchase service offered by retailers?
accepting orders over the telephone
interior decoration of the retail outlet
shipping the product
general information
delivery to the customer's doorstep
30) Which of the following is true for direct product profitability analysis?
It is highly correlated with the gross margin on a product.
It bears little relation to the gross margin on a product.
It is exactly the same as the gross margin on a product.
It is significantly lower than the gross margin on a product.
It is negligible compared to the gross margin on a product.
31) Which of the following marketing communications principles implies that communicators can use their good image to reduce some negative feelings toward a brand but in the process might lose some esteem with the audience?
principle of duality
principle of neutrality
principle of congruity
principle of delegation
principle of closure
32) The starting point in planning marketing communications is a ________ that profiles all interactions customers in the target market may have with the company and all its products and services.
publicity campaign
market research program
marketing budget
product launch
communications audit
33) One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following relevant brand needs is most likely emphasized by an advertisement for a luxury car?
intellectual stimulation
sensory gratification
problem removal
normal depletion
problem avoidance
34) One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following is a positively oriented relevant brand need?
problem avoidance
problem removal
social approval
normal depletion
incomplete satisfaction
35) Which of the following is an example of a personal selling communication platform?
telemarketing
sales presentations
company blogs
press kits
TV shopping
36) According to the hierarchy-of-effects model, which of the following corresponds to the behavioral stage that a buyer passes through?
purchase
awareness
knowledge
conviction
preference
37) Which of the following is the marketing communications objective for a new-to-the-world product, such as electric cars?
establishing category need
developing brand attitude
increasing brand purchase intention
enhancing brand awareness
encouraging repeat purchases
38) Which of the following personal communications channels consist of family members, neighbors, friends, and associates talking to target buyers?
social channels
formal channels
sponsored channels
advocate channels
expert channels
39) LCH is a leading electronics company that produces and markets its own brand of desktop and laptop computers, for both individual consumers and businesses. Which of the following sequences of consumer responses is relevant as a marketing communications model for LCH's products?
learn-do-feel
do-feel-learn
feel-do-learn
feel-learn-do
do-learn-feel
40) ________ is an element of the marketing communications mix that involves people-to-people oral, written, or electronic communications that relate to the merits or experiences of purchasing or using products or services.
Public relations
Advertising
Word-of-mouth marketing
Personal selling
Sales promotion
41) Which of the following is an advantage of using radio as an advertising medium?
high geographic selectivity
higher attention than television
long duration of ad exposure
standardized rate structures
high quality reproduction
42) Spike Inc. is a sportswear manufacturer that recently launched its new line of customizable running shoes. The shoes come with a digital component that allows them to adapt to the runner's biomechanics. To promote this new product, Spike launches an advertising campaign and also ropes in a famous athlete to endorse the product. This is an example of a ________.
pull strategy
backward flow
reverse flow
push strategy
trade promotion
44) A jobber in a three-level marketing channel is a(n) ________.
advertising agent
external broker
independent evaluator
communication channel
small-scale wholesaler
45) What is the major difference between a conventional marketing channel and a vertical marketing system (VMS)?
A VMS is characterized by an independent producer whereas a conventional marketing channel is characterized by multiple producers.
Producers have complete control over the other members in a conventional marketing channel whereas this control is minimal in a VMS.
Elements in a conventional marketing channel act as separate businesses whereas the elements in a VMS act as a unified system.
A VMS has many intermediaries whereas a conventional marketing channel has a limited number of intermediaries.
A conventional marketing channel has elements such as retailers and wholesalers whereas these elements are not present in a VMS.
46) A(n) ________ includes the producer, wholesaler(s), and retailer(s) acting as a unified system.
conventional marketing channel
extensive marketing channel
internal marketing system
vertical marketing system
parallel marketing channel
47) An intensive distribution strategy serves well for ________.
newspapers
premium cars
commercial trucks
industrial equipment
private label products
48) Using the push strategy is most appropriate when ________.
consumers choose the brand before they go to the store
the product being sold is an impulse item
there is high brand loyalty for the product
consumers are able to perceive differences between brands
the product is a high involvement purchase
49) Which marketing channel is associated with the highest value added per sale?
distributors
Internet
telemarketing
retail stores
sales force
50) Which of the following types of distribution involves severely limiting the number of channel intermediaries?
aggressive
exclusive
retail
selective
intensive
51) In ________, a salesperson goes to the home of a host who has invited friends, demonstrates the products and takes orders.
catalog marketing
network marketing
franchising
direct-response selling
direct marketing
52) American businessman King Gillette pioneered the sales model in which razor handles were given away for free or sold at a loss, but sales of disposable razor blades were very profitable. This is known as the _______ model.
cross selling
predatory pricing
loss leading
product churning
two-tiered pricing
53) Which of the following is an example of a limited-service retailer?
Salespeople at Eli are always on hand to offer shoppers advice and assistance in choosing products.
Customers at TAB pick out the products they want and pay at the checkout counter.
Mina's allows customers to checkout their own purchases in order to reduce the staff count.
As CLO's offers a number of merchandise-return privileges, customers need information and assistance while shopping.
Alison's stocks a number of specialty products and the store's salespeople generally help shoppers with all their needs.
54) Though it is sold only in Wal-Mart stores, Wal-Mart's Ol'Roy dog food has surpassed Nestl 's Purina brand as the top-selling dog food. Ol'Roy is an example of a ________.
copy-cat brand
franchise
national brand
private label
generic product
55) Reynold's is a grocery chain that has always catered to mid-market customers. However, the owner, Mal, has noticed that an influx of new residents are buying mostly the lower-cost products and products on discount. To attract customers, Mal decides to make a gradual switch to the discount store format, but to do this, he will have to cut costs wherever possible. Which of the following types of service should Mal avoid in order to lower costs?
self-service
full-service
self-selection
limited service
limited-selection
56) Which of the following is the strongest differentiator for brick-and-mortar stores who want to emphasize their superiority over online retailers?
product range
product quality
the retailer's reputation
pricing
the shopping experience
57) Which of the following is true for franchisors?
The franchisor has to pay the franchisee to be part of the franchise system.
The franchisor collects royalty payments from the franchisee.
The franchisor licenses the trade mark from the franchisee.
The franchisor must change its operations to suit those of the franchisee's.
The franchisor pays start-up costs for the franchisee
58) Cocktail lounges in restaurants are examples of ________.
shared services
cultivating nonpeak demand
complementary services
differential pricing
reservation systems
59) BRZ Shoes targets the youth market with vibrant, visually appealing ads in modern styles. BRZ ads appeal to the ________ dimension of brand experience.
behavioral
intellectual
sensory
affective
social
60) Which of the following is an example of a complementary service?
Chesterton College hires part-time teachers when enrollment goes up.
The Caesar Park Hotel generally caters to business customers during the week, but has now decided to promote minivacation weekends for non-business customers as well.
AXA Bank set up automated teller machines so that its customers could avoid standing in line.
Big department stores usually hire extra staff to handle the rush during the holiday season.
More paramedics are on hand to assist physicians during times when emergency admissions are highest.
61) When a theater sells matinee movie tickets at low prices, it aims to shift some demand from the peak to the off-peak period. What is the strategy that the theater is said to be adopting?
It is providing complementary services.
It is using linear pricing.
It is sharing services.
It is increasing peak-time efficiency.
It is using differential pricing.
62) Deducting the desired profit margin from the price at which a product will sell, given its appeal and competitors' prices, is known as ________.
benefit analysis
activity based costing
estimate costing
target costing
overhead costing
63) After estimating the demand and costs associated with alternative prices, a company has chosen to price its product in such a way that it gains the highest rate of return on its investment. The company is looking to ________.
maximize its current profit
maximize its market share
skim the market
survive in the market
become a product-quality leader
64) In which of the following auctions does the auctioneer first announce a high price for a product and then slowly decreases the price until a bidder accepts?
a sealed-bid auction
an ascending bid auction
a Dutch auction with one seller and many buyers
an English auction with one seller and many buyers
a Dutch auction with one buyer and many sellers
65) In ________, the firm bases its price largely on competitor's prices.
markup pricing
auction-type pricing
perceived-value pricing
target-return pricing
going-rate pricing
66) When Apple introduced its iPhone, it was priced at $599. This allowed Apple to earn the maximum amount of revenue from the various segments of the market. Two months after the introduction, the price has come down to $399. What kind of a pricing did Apple adopt?
market-skimming pricing
loss-leader pricing
target-return pricing
market-penetration pricing
value pricing
67) Matt's retail store offers all its products at $2 lesser than its competitors throughout the year. The store never runs any promotional campaigns or offers any additional special discounts. Matt's retail store is following a(n) ________.
everyday low pricing policy
target-plus pricing policy
going-rate pricing policy
auction-type pricing policy
high-low pricing policy
68) Which of the following auctions is characterized by one seller and many buyers?
closed auctions
sealed-bid auctions
ascending bid auctions
reverse auctions
Walrasian auctions
69) ________ pricing takes into account a host of inputs, such as the buyer's image of the product performance, the channel deliverables, the warranty quality, customer support, and attributes such as the supplier's reputation, trustworthiness, and esteem.
Auction-type
Markup
Perceived-value
Value
Going-rate
70) A retailer who holds on to a(n) ________ policy charges a constant low price with little or no price promotions and special sales.
low cost
everyday low pricing
high-low pricing
auction-type pricing
going-rate pricing
71) Experience-curve pricing ________.
assumes competitors are weak followers
focuses on reducing fixed costs
is generally risk-free
allows products to project a high quality image
is applicable only to manufacturing costs
72) A computer manufacturing company allows customers to place orders online, which they can later pick up from a convenient retail location. Which of the following terms best represents this practice?
push strategy
online personalization
channel integration
internal marketing
mass customization
73) Which of the following entities is present in a zero-level marketing channel?
jobbers
wholesalers
consumers
brokers
retailers
74) A customer judges a product offering by three basic elements: product features and quality, services mix and quality, and ________.
performance
availability
price
tangibility
utility
75) It was sunny when Jenny went to class, but by the time class was over it was raining heavily, so Jenny stopped by the student store to buy an umbrella before she walked back to her dorm. In this case, the umbrella is an example of a(n) ________.
specialty good
heterogeneous shopping good
impulse good
emergency good
homogeneous shopping good
76) Which of the following actions would result in the elimination of uncontrollable returns of products in the short run?
improved transportation
improved handling
proper storage
better packaging
cannot be eliminated
77) Because ________ are purchased frequently, marketers should make them available in many locations, charge only a small markup, and advertise heavily to induce trial and build preference.
services
unsought goods
durable goods
specialty goods
nondurable goods
78) A ________ is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.
process
structure
benefit
product
function
79) Which of the following are tangible goods that normally survive many uses?
convenience goods
unsought goods
durable goods
core benefits
generic goods
80) Products such as insurance, cemetery plots, and smoke detectors are examples of ________ that are products that the consumer does not know about or does not normally think of buying.
convenience goods
homogeneous shopping goods
heterogeneous shopping goods
unsought goods
specialty goods
81) How a consumer shops for organic foods and how he or she uses and disposes of the product is part of the consumers' ________ that is important for marketers to consider.
value system
quality perception
value proposition
value chain
consumption system
82) ________ describes the employees' skill in serving the client.
Internal marketing
Promotional marketing
Direct marketing
Interactive marketing
External marketing
83) In order to map out the service process, the points of customer contact, and the evidence of service from the customer's point of view, service firms should develop a ________.
business plan
service blueprint
marketing plan
service floor plan
Gantt chart
84) Service quality depends on who provides them, when and where, and to whom. Thus, services are highly ________.
tangible
intangible
inseparable
perishable
variable
85) Walmart has decided to hire extra clerks during the holiday season. It is said to be ________.
matching its supply with the existing demand
generating non-peak demand
sharing its services
increasing its customer participation
facilitating for its future expansion
86) ________ refer(s) to logos, symbols, characters, and slogans that service providers use in order to make the service and its key benefits more tangible.
Brand elements
Brand loyalty
Brand orientation
Brand equity
Brand engagement
87) The fact that services are typically produced and consumed simultaneously is known as the ________ aspect of services.
heterogeneity
inseparability
intangibility
variability
perishability
88) A marketing manager has decided to "leapfrog" competition by moving into cutting-edge technologies. This indirect approach to attacking competition can be characterized as ________.
frontal attack
bypass attack
guerrilla warfare
encirclement attack
flank attack
89) A marketing manager has planned a strategy that will require the organization to erect outposts to protect its weak front-running brands. In this ________ defense, the outposts will be central to the organization's new competitive strategy.
flank
mobile
counteroffensive
position
preemptive
90) Aron, a company manufacturing snack food and soft drinks, replicates its product taste and packaging from Lay's, a market leader in snack food industry. Later, it sells these imitated products on the black market. This is an example of ________.
imitating
innovating
counterfeiting
cloning
adapting
91) As a market follower strategy, the ________ emulates the leader's products, name, and packaging, with slight variations.
cloner
counterfeiter
innovator
imitator
adapter
92) In ________, the market leader stretches its domain over new territories that can serve as future centers for defense and offense.
position defense
contraction defense
mobile defense
counteroffensive defense
flank defense
93) After Olay entered and took over the Indian market with its anti-aging lotion, Ponds decided to defend its home turf by investing heavily in a similar product, but that which used only natural ingredients. This is an example of a ________.
position defense
mobile defense
counteroffensive defense
contraction defense
flank defense
94) Sally Seabrook is an up-and-coming marketing manager for a large department store chain. Ms. Seabrook has distinguished herself with bold strategies such as launching attacks on her primary competitor from several fronts, including advertising, new store openings, and new distributor alliances. Which of the following market challenger attack strategies is Ms. Seabrook using to attack her competition?
frontal attack
guerrilla warfare
flank attack
encirclement attack
bypass attack
95) For a market challenger, attacking ________ is a high risk but potentially high payoff strategy, which also allows it to distance itself from other challengers.
a poorly performing firm
an underfinanced firm
a firm of its own size
the market leader
a regional firm
96) Market broadening and market diversification are likely tactics employed in ________ strategies.
position defense
mobile defense
preemptive defense
counteroffensive defense
flank defense
97) In his article, "Innovative Imitation", Theodore Levitt argues that ________.
imitation should be against the law because of the intellectual property decision involved
product imitation might be as profitable as product innovation
imitation is wrong and should be punished
innovation is not possible without substantial imitation
innovation cannot begin unless dissatisfaction with imitation occurs
98) What types of goods are purchased frequently, immediately, and with minimum effort by the consumers?
durable goods
shopping goods
convenience goods
specialty goods
unsought goods
99) ________ is the ability of a company to prepare on a large-scale basis individually designed products, services, programs, and communications.
Reverse engineering
Interoperability
Mass customization
Backward compatibility
Benchmarking.