Review for final

?Indicate the answer choice that best completes the statement or answers the question.1.?A _____ occurs when a company's management decides to add products to an existing product line in order to compete more broadly in the industry.?a.??product line reeling?b.??product line extension?c.??product line classification?d.??product line contraction2.?Consumers usually buy a _____ only after comparing several brands or stores on style, practicality, price, and lifestyle compatibility.?a.??major product?b.??specialty product?c.??convenience product?d.??shopping product3.?Product line depth refers to the number of:?a.??competitors present in the market for a particular product line.?b.??product lines an organization offers.?c.??market segments a firm is willing to target or serve.?d.??product items in a product line.4.?_____ occurs when two brands receiving equal treatment borrow from each other's brand equity.?a.??Ingredient branding?b.??Cooperative branding?c.??Complementary branding?d.??Family branding5.?_____ is designed to help consumers make proper product selections and lower their cognitive dissonance after a purchase.?a.??Informational labeling?b.??Persuasive labeling?c.??Perspective labeling?d.??Promotional labeling6.?Which of the following statements is true of an implied warranty??a.??It prohibits other firms from using a brand or part of a brand without permission.?b.??It gives the impression of environmental friendliness to a product.?c.??It ranges from simple statements to extensive documents written in technical language.?d.??It comes with the sale of every product under the Uniform Commercial Code.7.?Identify a true statement about specialty products.?a.??They are made directly available to a consumer through direct mail.?b.??They are relatively inexpensive and merit little shopping effort.?c.??They are easily substituted with other products.?d.??They are distributed to only a few outlets in a geographic area.8.?Which of the following statements is true of an organization's product mix??a.??Firms widen their product mix to capitalize on established reputations.?b.??A wide product mix decreases sales and profit-making potential.?c.??A wide product mix means that the product line is deep.?d.??All product items in a product mix follow a standard marketing strategy.9.?Identify a true statement about a product.?a.??An excellent distribution channel can compensate for an inferior product.?b.??A consumer product and an industrial product is differentiated based on the price of a product.?c.??It is the marketing mix that can be decided after choosing a promotion strategy.?d.??It is usually the starting point in creating a marketing mix for a market segment.10.?Reducing a product's quality:?a.??provides new opportunities for market segmentation.?b.??lets a firm's manufacturer lower the price.?c.??results in increased brand loyalty or new opportunities for market segmentation.?d.??helps firms cater to the upper classes effectively.11.?Which of the following statements is true of product lines??a.??They limit the product choices offered to customers to one or two product items.?b.??They provide economies of scale in advertising.?c.??They require greater transportation and warehousing costs than product items.?d.??They increase a firm's manufacturing and inventory costs.12.?Which of the following statements is true of an unsought product???a.??Marketers of unsought products often use selective, status-conscious advertising to maintain the product's exclusive image.?b.??Consumers buy unsought products regularly, usually without much planning, and at inexpensive prices.?c.??New products are categorized as unsought products until advertising and distribution increase consumer awareness of them.?d.??Consumers usually buy an unsought product only after comparing several brands or stores on style, practicality, price, and lifestyle compatibility.13.?Zingz is a soft drink that is widely distributed across cities. It is available at gas stations, department stores, and vending machines. Consumers buy the soft drink without much thought or effort. Zingz is an example of a _____.??a.??unsought major product?b.??specialty product?c.??convenience product?d.??shopping product14.?A cell phone manufacturing company is said to functionally modify one of its products if it:?a.??introduces a sleek and stylish version of the cell phone with the same specifications.?b.??reduces the price of the cell phone ahead of a sale.?c.??introduces stylish headphones for the cell phone.?d.??releases a software update to fix the cell phone's heating problem.15.?The most obvious function of packaging is to:?a.??secure the right of a company to use a brand or part of a brand.?b.??protect a brand name from being declared a generic product name.?c.??even out seasonal sales patterns.?d.??contain products that are liquid, granular, or otherwise divisible.16.?Which of the following statements is true of a specialty product??a.??It is widely distributed in a geographic area in order to sell sufficient quantities.?b.??It is marketed using selective, status-conscious advertising to maintain its exclusive image.?c.??It is easily substituted with products that have the same features.?d.??It is unknown to a potential buyer or a known product that the buyer does not actively seek.17.?Micron Processors is a computer manufacturing company. Its computers do not have technical specifications written on the packages and instead have words such as "fastest" and "energy efficient."In this case, Micron Processors is using _________.??a.??persuasive labeling?b.??informational labeling?c.??complementary branding?d.??cooperative branding18.?Three years after Leslette Inc., a home appliances manufacturer, launched its sleek pop-up bread toaster, the competition intensified, and other manufacturers came up with sleeker and more stylish models of pop-up toasters. The loyal customers of Leslette continued to get their toasters serviced, but the sales started increasing only at a decreasing rate. In the context of the product life cycle, Leslette's toasters were going through the _____.??a.??maturity stage?b.??growth stage?c.??decline stage?d.??introductory stage19.?Gloria, a graduate in fashion designing, wants to open her own tailoring shop. She estimated the preliminary figures for demand, cost, sales, and profitability for the first financial year of running her shop. After much deliberation, she decided to borrow money from her friends and family who have offered to invest in her business. Gloria is currently at the _____ of the new-product development process.??a.?commercialization stage??b.??business analysis stage?c.??idea generation stage?d.??test marketing stage20.?Due to her tight work schedule, Melanie neither finds time to follow the latest trends in technology nor has an aptitude for it. As a result, she mostly ends up buying a cell phone model that is on the verge of getting outdated. She does not realize her mistake until she finds it hard to find accessories and parts for the device. Melanie would belong to the category of _____ in the diffusion process.??a.??early adopters?b.??innovators?c.??the early majority?d.??laggards21.?Coreynd Corp., a paper manufacturing company, launched Censer Notes, which is a new product line of scented sticky notes. Five years after its launch, the new product line broke even, and Coreynd's profits rose rapidly. The company increased its distribution channels and currently exports Censer Notes to various countries. In the context of the product life cycle, Censer Notes is in its _____.??a.??maturity stage?b.??growth stage?c.??decline stage?d.??introductory stage22.?The marketing team of Mariantel Pharma requested its research and development (R&D) team to develop new medicines that can cater to the minor ailments of the working population. Accordingly, Philip, the head of R&D team, scheduled a team meeting. In the meeting, he asked all members to come up with as many product development ideas as they could. Philip neither discouraged any idea nor let any of the members criticize another member's ideas. In this scenario, the R&D team at Mariantel Pharma is engaged in _____.??a.??idea screening?b.??brainstorming?c.??beta testing?d.??concept testing23.?Suntacte, a sunscreen brand, was one of the most popular cosmetic brands in the late 1900s. With increasing number of sunscreen products entering the market, Suntacte lost its market share to competing brands. In early 2005, Suntacte relaunched its products with an attractive squeeze bottle packaging. This increased the sales of Suntacte substantially. In this scenario, the newly packaged Suntacte products best exemplify _____.??a.??new-to-the-world products?b.??new and improved products?c.??repositioned products?d.??new product lines24.?Hariette Inc., an apparel manufacturer, has been famous for its pleated maxi skirts that recently went out of fashion. Since the last quarter, Hariette has had large amount of unsold inventories, and therefore, a drop in sales revenue. In the context of the product life cycle, the pleated maxi skirts sold by Hariette Inc. are going through the _____.??a.??maturity stage?b.??growth stage?c.??decline stage?d.??introductory stage25.?Steven, a construction worker, always buys new gadgets because most of his friends have them. Besides, he relies on reviews from his friends rather than on the mass media to make his purchase decisions. It can be inferred that Steven belongs to the category of _____ in the diffusion process.?a.??laggards?b.??innovators?c.??the late majority?d.??the early majority26.?Irene, an affluent fashion enthusiast, closely follows five popular international fashion brands. She buys every new design from all those brands on the day it is launched. She purchases fashion magazines to read about the latest launches every season. Irene would belong to the category of _____ in the diffusion process.??a.?the late majority??b.??innovators?c.??the early majority?d.??early adopters27.?Steve, a retired man, wants to open a day care facility for dogs with his savings. After deciding on the services that he would be providing to his customers, he calculates the preliminary figures for demand, cost, sales, and profitability. After extensive deliberation, Steve decides to take credit from the bank for opening the facility as the initial investment cost estimates are too high. Steve is currently at the _____ of the new-product development process.?a.??commercialization stage?b.??business analysis stage?c.??idea generation stage?d.??test marketing stage28.?Regina, a model for an online fashion website, follows the latest trends in handbags and buys a couple of them every season before the styles become too common. She compares every choice with similar models and designs offered by competing brands, discusses what her friends recommend, and then eventually buys the products. Regina would belong to the category of _____ in the diffusion process.??a.??the late majority?b.??innovators?c.??the early majority?d.??laggards29.?Daleroes, a luxury leather footwear brand, launches Kidsnow, a new range of party footwear for kids. The company heavily invests in advertising campaigns with the tagline "Kids can't stop partying," for promoting the new product line. Despite these efforts, Kidsnow experiences slow sales with negative profits due to the heavy investment in the new product line. In the context of the product life cycle, Kidsnow is in its _____.??a.??maturity stage?b.??growth stage?c.??decline stage?d.??introductory stage30.?Audrette, a luxury handbag brand, decided to boost its declining sales by introducing a sub-brand, Gannette, a new range of affordable handbags for students. Its tag line for Gannette, "Unveiling college fashion," changed the market perception of Audrette. In this scenario, Gannette is an example of _____.??a.?convenience products??b.??repositioned products?c.??discontinuous innovations?d.??new-to-the-world products31.??Hakimo Corp., a manufacturer of audio equipment, has developed a unique wireless speaker system that runs on solar power. The speakers can operate for sixteen hours after being exposed to the sun for two hours. This new product, which is radically different from anything currently available in the market, would fall in the new product category of a:?a.??repositioned product.?b.??revised product.?c.??discontinuous innovation.?d.??new and improved product.32.?Nutrioats, an oatmeal cookie product, has been in the market for over seven years. However, the product is now in its decline stage. In this case, which of the following will be a successful strategy to market Nutrioats??a.??Lengthening the product line?b.??Focusing on adding new users?c.??Spending heavily on advertising to educate consumers about the product's benefits?d.??Eliminating all nonessential marketing expenses and letting sales decline33.?_____ is the degree to which a product can be sampled on a limited basis.?a.??Compatibility?b.??Trialability?c.??Observability?d.??Complexity34.?Which of the following statements best describes simultaneous product development??a.??It is a strategy that provides general guidelines for generating, screening, and evaluating new-product ideas.?b.??It is used to determine the reactions of potential customers in a market situation.?c.??It is the process where all the involved areas work together rather than sequentially during a product's development.?d.??It is a strategy that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation.35.?In the context of the product life cycle, a long-run drop in a product's sales signals the beginning of the _____.?a.??introductory stage?b.??growth stage?c.?maturity stage??d.??decline stage36.?In the context of the rate of adoption, relative advantage is defined as the degree to which:?a.??a product is perceived as superior to existing substitutes.?b.??a new product is consistent with existing values and product knowledge, past experiences, and current needs.?c.??the benefits of using a product can be communicated to target customers.?d.??a product can be tried on a limited basis.37.?In the context of the product characteristics that can be used to predict and explain the rate of acceptance and diffusion, the degree of difficulty involved in understanding and using a new product is known as _____.?a.??complexity?b.??compatibility?c.??observability?d.??trialability38.?A _____ is an announcement that promotes a program of a federal, state, or local government or of a nonprofit organization.?a.??public service advertisement?b.??commercial advertisement?c.??retail advertisement?d.??surrogate advertisement39.?_____ refers to the inability of services to be stored, warehoused, or inventoried.?a.??Variability?b.??Reliability?c.??Heterogeneity?d.??Perishability40.?_____ is defined as the variability of inputs and outputs of services, which makes services less standardized and uniform than goods.?a.??Heterogeneity?b.??Inseparability?c.??Perishability?d.??Intangibility41.?In the context of evaluating service quality, _____ refers to the knowledge and courtesy of employees and their ability to convey trust.?a.??heterogeneity?b.??responsiveness?c.??assurance?d.??tangibility42.?Which of the following is the most important factor influencing the distribution strategy of a time-dependent service provider??a.??Scheduling?b.??Tangible cues?c.??Price bundling?d.??Customization43.?In the context of evaluating service quality, _____ refers to the ability to provide prompt service.?a.??responsiveness?b.??empathy?c.??tangibility?d.??assurance44.?Which of the following statements is true of nonprofit organizations??a.??They can measure their success and failure in strictly financial terms.?b.??They seek to make a profit for redistribution to owners or shareholders.?c.??They have a financial bottom line that simplifies decision-making processes for nonprofit managers.?d.??They focus on generating enough funds to cover the organization's expenses.45.?When Natalie visited Elsand, a beauty salon, she insisted that she wanted a senior hairstylist to give her a haircut and color her hair. Which of the following characteristics of service is best illustrated in this scenario??a.?Search quality?b.?Inseparability?c.?Tangibility?d.?Heterogeneity46.?Felix, a taxi driver, makes sure that his car always looks appealing. He gets the car serviced on time, changes the car perfume before it gets over, leaves a magazine or two on the back seat for customers, and keeps the upholstery clean. In this scenario, which of the following promotion strategies is adopted by Felix???a.??Boundary spanning?b.??Stressing tangible cues?c.??End-cap marketing?d.??Engaging in postpurchase communication47.?Which of the following is a characteristic that distinguishes the pricing decisions of nonprofit organizations from those of profit organizations??a.?Consumers are charged a monetary price and do not absorb monetary costs.?b.?Their services are priced higher than the costs incurred.?c.?Their services are paid for by people who are better off financially.?d.?Indirect payment is not a common practice in nonprofit organizations.48.?To close the gap between what a company provides and what the customer is told it provides, the company must:?a.??ensure that employees have the skills and the proper tools to perform their jobs.?b.??create realistic customer expectations through honest, accurate communication.?c.??encourage teamwork and train employees so that they know what the management expects.?d.??stay attuned to customer wishes by researching customer needs and satisfaction.49.?According to the gap model of service quality, the gap between what management thinks customers want and the quality specifications that management develops to provide the service results from:?a.??the inability of management and employees to do what should be done.?b.??a lack of understanding or a misrepresentation of the customers' needs, wants, or desires.?c.??misleading or deceptive advertising campaigns that promise more than what the firm can deliver.?d.??the inability of management to translate customers' needs into delivery systems within the firm.50.?A _____ is a business structure of interdependent organizations that reaches from the point of production to the consumer and facilitates the downstream physical movement of goods through the supply chain.??a.??market grouping?b.?common trade alliance??c.?retailer monopoly??d.?marketing channel?51.?_____ is a form of distribution aimed at maximum market coverage.??a.??Narrow distribution?b.?Intensive distribution??c.?Selective distribution??d.?Exclusive distribution?52.?_____ refers to the elements of the composition and appearance of a product that make it desirable.??a.??Form utility?b.?Time utility??c.?Exchange utility??d.?Place utility?53.?_____ negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving finished goods from the manufacturer into the hands of the final consumer.??a.??Intermediaries?b.?Laggards??c.?Early adopters??d.?Innovators?54.?Under the _____ philosophy, functional areas in a company such as marketing, sales, or research/development communicate frequently and are synchronized with purchasing, manufacturing, and logistics.??a.??demand chain orientation?b.?supply chain agility??c.?demand-supply integration??d.?supply chain analytics?55.?Identify a true statement about supply chain management.??a.??It reflects a completely employee-driven management philosophy.?b.?It enables supply chain managers to focus on pushing products down the marketing channels to consumers.??c.?It enables supply chain managers to respond quickly to sudden changes in supply or demand.??d.?It gives assembly line employees total control of materials, processes, money, and finished products.?56.?Which of the following statements is true of channel members???a.??They provide contact efficiency.?b.?Agents and brokers take ownership of goods in the marketing channel.??c.?They provide generalization of labor.??d.?Merchant wholesalers create form utility.?57.?The most prominent difference separating intermediaries is whether they:??a.??use a "push" strategy.?b.?lower average production costs.??c.??raise profit margins for independent middlemen.?d.??take title to the products they sell.58.?In the context of supply chain integration, relationship integration:??a.??makes performance assessments transparent and measurable across the borders of different firms.?b.?is a type of internal integration sought by firms interested in providing top-level service to customers.??c.?enables companies to act as multiple individual units.??d.?includes ways in which companies collaborate on activities or projects.?59.?Which of the following is an advantage of offshoring???a.??It reduces supply chain risks for a company.?b.?It decreases labor costs incurred by a company.??c.?It enables a company to relocate outsourced operations closer to home.??d.??It reduces the fuel costs spent on transporting goods.60.?Unlike in the mass production era, in today's marketplace:??a.??supply chain management reflects a completely employee-driven management philosophy.?b.?standardized products are "pushed" down through marketing channels to consumers.??c.?businesses focus on partnering with members of the supply chain to enhance customer value.??d.?companies that focus on supply chain management commonly report high inventory costs.?61.?Which of the following is an advantage of supply chain globalization???a.??It helps in delivering products that have highly consistent quality standards.?b.?It provides consistency in transportation service.??c.?It lowers labor rates and material costs.??d.?It reduces competition from domestic suppliers.?62.?Identify a true statement about agile companies.??a.??They increase the complexity of the supply chain.?b.?They use a "pull" strategy instead of a "push" strategy to market their products.??c.?They spend less time than their competitors on activities that create direct customer benefits.??d.?They partner closely with suppliers and service providers to reduce customer wait times for products.?63.?The logistical function of intermediaries in marketing channels involves:??a.??sorting, accumulation, and consolidation of products.?b.?researching about channel members and consumers??c.?explaining a product's features, advantages, and benefits.??d.?contacting prospective buyers to make them aware of existing products.?64.?The best order fulfillment processes:??a.??manage volumes of returned product efficiently.?b.?increase inventory levels of the firm.??c.?reduce the time between order and customer receipt.??d.?reduce coordination between multiple companies.?65.?Which of the following statements is true of multichannel marketing???a.??Customers are offered information, goods, services, and/or support through one or more synchronized channels.?b.?It becomes difficult to find the channel responsible for discrepancies in the inventory.??c.?It unifies transportation and distribution systems of different channels.??d.?It creates a main channel which acts as the sale and profit center.?66.?Outsourcing enables companies to:??a.??locate stocks at fewer plants and distribution centers.?b.?focus investment on their logistical functions rather than on core business.??c.?lengthen the order-to-cash cycle.??d.?eliminate the need of using a third-party logistics company.?67.?Companies are globalizing their supply chains because:??a.??of increasing demand for imported products worldwide.?b.?it helps reduce transportation and warehousing costs.??c.?of a decrease in the length and risk of supply chains globally.??d.?it helps standardize the quality of the products produced.?68.?Which of the following statements is true of retailers???a.??They provide contact efficiency for consumers.?b.?They provide time and place utility to agents and brokers.??c.?They facilitate exchanges of ownership between buyers and sellers.??d.?They facilitate the movement of products from the manufacturer to producers and resellers.?69.?Which of the following is a disadvantage of supply chain globalization???a.??It restricts companies from availing trade tariff.?b.?It increases labor costs and materials costs for companies.??c.?It exposes companies to risks associated with geopolitical conflict.??d.?It leads to stagnation in the company's technology or knowledge.?70.?Delta Graphics Inc., a company specializing in publishing educational books, recruits and trains college students to sell its products door-to-door. Which of the following forms of nonstore retailing is illustrated in the scenario???a.??Direct retailing?b.?Telemarketing??c.?Automatic vending??d.?E-tailing?71.?Asif, a member of a local baseball team, broke his bat during a practice match. With the final match scheduled for the next day, Asif urgently required a new bat. Therefore, he placed an order on , an online portal for sports goods, and he dropped in at its nearest physical store to pick up his order. This is an example of the use of _____.??a.??microtargeting?b.?click-and-collect??c.?telemarketing??d.?e-tailing?72.?A difference between supermarkets and convenience stores is that unlike supermarkets, convenience stores:??a.??charge lower prices.?b.?carry a much more limited line of high-turnover convenience goods.??c.?enable customers to shop without visiting a physical store location.??d.?offer no service to customers.?73.?The Hunt, a liquor store, is famous for its unique and extensive collection of alcoholic beverages. Moreover, its employees possess up-to-date knowledge of the liquor available in the store, which allows them to assist customers in their purchasing decisions. The Hunt is an example of a _____.??a.??supermarket?b.?specialty store??c.?warehouse club??d.?convenience store?74.??Henry operates an outlet of Moonlight Café, a world renowned fast-food restaurant, in his locality. He started the restaurant after getting a license from the owners of Moonlight Café and by regularly paying them a fee for the right to use their brand name, products, and methods of operation. Henry most likely operates a(n) _____.?a.??independent retail store?b.??warehouse club?c.??chain store?d.??franchise75.?Benitoss Inc. is a large retail bookseller with its headquarters in the country of Hopstonia. The company owns and operates 105 bookshops of the brand Bennd Books, which are spread across seven countries. In this scenario, Bennd Books is a(n) _____.??a.??independent retail store?b.??warehouse club?c.??chain store?d.??franchise76.?Nicolle, an amateur baker, went to a supermarket to buy baking powder. A salesman at the supermarket asked her if she also wanted fondant paste, icing syringes, rolling pins, pastry brushes, and edible colors along with it. According to this scenario, which of the following selling techniques did the salesman use???a.??Shopper marketing?b.??Microtargeting?c.??Trading up?d.??Suggestion selling77.?Glassuct, a glassware manufacturing company, sells a range of glassware including drinkware and tableware through its Web site. It uses Web banner advertising and mobile advertising to reach its prospective customers. According to this scenario, Glassuct is most likely a(n) _____.??a.??telemarketer?b.??direct retailer?c.??online retailer?d.??category killer78.?Trevinsse, an old restaurant in a coastal town, is famous for its local cuisine. The restaurant is highly recommended to tourists who want to some authentic local food. Given this information, Trevinsse is mostly likely to be a(n) _____.??a.??independent retailer?b.??warehouse club?c.??chain store?d.??franchise outlet79.?Lenspertise is a famous electronics shop that sells only cameras and camera accessories. People travel across town to shop at this store because of the expert knowledge that Lenspertise possesses. Lenspertise is most likely a _____.??a.??supermarket?b.??specialty store?c.??warehouse club?d.?convenience store?80.?_____ is a selling technique that seeks to broaden customers' original purchases with related items.??a.??Suggestion selling?b.?Co-marketing??c.?Shopper marketing??d.?Benefit selling?81.?_____ is a form of nonstore retailing that entails the use of machines to offer goods for sale.??a.??Direct retailing?b.?Telemarketing??c.?Automatic vending??d.?E-tailing?82.??Which of the following is true of click-and-collect??a.??It requires representatives to sell products door-to-door, in offices, or at in-home sales parties.?b.?It employs outbound and inbound telephone contacts to sell directly to customers.??c.?It enables consumers to make their purchases online and pick up their orders from physical stores.??d.?It allows customers to shop over the Internet and have items delivered directly to their door.?83.?Which of the following statements is true of specialty stores???a.??They have the widest product assortment among other retail establishments.?b.?They offer virtually no service to customers.??c.?They use low prices and discounts to lure shoppers.??d.?They carry narrow product lines that are considerably deep.?84.?Which of the following is a disadvantage of a freestanding store location???a.??It has reduced visibility.?b.?It faces stiff competition from retailers.??c.?It has high site cost and rent and a lot of nearby competitors.??d.?It may be hard to attract customers to a freestanding location.?85.?Which items are still dominated by "brick and mortar" stores?a.?food?b.?cups?c.?diapers?d.?coffee86.?Which items do consumers still "prefer" to buy in person at a regular store??a.?clothes?b.?electronics?c.?kindle readers?d.?phones87.?Who is the largest in e-commerce??a.?Macy's?b.?Walmart?c.?Amazon?d.?Target88.?Robin and his friends developed a low-cost antivirus software with superior ability to protect computers from the latest viruses and malware. They printed flyers and distributed it in their neighborhood. The flyers, though very informative, were full of computer jargons, and a majority of the target audience was not able to understand it. In the context of the communication process, the given scenario exemplifies a failure in _____.??a.??intrapersonal communication?b.??upselling?c.??interpersonal communication?d.??decoding89.?Threads Inc., an apparel manufacturing company, employs personal selling to market goods. Its employees handcraft products that are then marketed by a professional team. In this case, which of the following strategies can be adopted by Threads Inc.???a.??Generating large amounts of publicity quickly?b.??Refraining from educating the public about the company's goals and objectives?c.??Making planned presentations to prospective buyers?d.??Refraining from advertising and public relations90.?Natasha, a food enthusiast and an amateur chef, bought a newly launched food processor. It exceeded her expectations. She posted a short review of the food processor on a popular social networking website. Her post was later picked up by a popular food blogger, and it went viral. Which of the following promotional tactics does the given scenario exemplify???a.??Paid media?b.??Earned media?c.?Owned media??d.??Controlled media91.?Dernz Inc., a food manufacturing company, markets tomato ketchup globally. As its consumers are well aware of the uses of ketchup, the company does not have to generate product awareness. The company, however, wishes to focus on convincing consumers to buy Dernz's ketchup instead of other brands' ketchup. In this scenario, Dernz Inc. must employ _____.??a.??reminder promotion?b.??persuasive promotion?c.??informative promotion?d.??connective promotion92.??Velocity Automobiles Inc. has recently launched a sedan with a biometric vehicle access lock. This feature provides better anti-theft protection than the current locks being offered by other sedans in its class. As a result, the demand for this model is higher than the others. In the context of a promotional strategy, the unique feature of the sedan exemplifies _____.?a.??brand harmonization?b.??a touch point?c.??a competitive advantage?d.??product parity93.?Bag TV, a commercial television broadcast network, uses billboards, television, magazines, and newspaper advertising to create awareness about upcoming shows and to inform viewers about the new episodes of its existing shows. Bag TV uses _____ to promote its television programs.??a.??intrapersonal communication?b.??mass communication?c.??intergroup communication?d.??interpersonal communication94.?Robert is a salesperson at Sepia Furnishings, a mattress store. He is knowledgeable about the products and helps customers understand technical differences between the various models of the mattresses. If the customers look convinced, he encourages them to lie down on the mattresses and try them. In the given scenario, Robert is engaged in _____.??a.??personal selling?b.??advertising?c.??public relations?d.??sales promotion95.?SuperPure, a multimillion-dollar bottled water company, donates regularly to various environmental organizations. It periodically issues press releases outlining the latest environment-friendly methods used in its plants. The customers of SuperPure feel good to be associated with the brand name. Which of the following elements of the promotion mix does SuperPure's effort exemplify???a.??Advertising?b.??Personal selling?c.??Sales promotion?d.??Public relations96.?The managers at Pork Farm Inc., a meat packing company, want to create more consumer demand for the company's products that are being overshadowed by its competitors. They have a meeting to decide the effective communication strategies that can be used to increase the popularity of Pork Farm Inc.'s products among customers by highlighting their company's products. In this scenario, the managers at Pork Farm Inc. are developing a _____.??a.??promotional strategy?b.??distribution strategy?c.??service strategy?d.??price strategy97.?A difference between paid media and earned media is that unlike paid media, earned media:??a.??is based on the traditional advertising model.?b.??requires a brand to purchase media space.?c.??uses display advertising on Web sites for promotion.?d.??is created when people talk and share content on social media.98.?Which of the following is a difference between a push and a pull strategy???a.??Social media is used in a push strategy, while personal selling is used in a pull strategy.?b.??Wholesalers are targeted in a push strategy, while end consumers are targeted in a pull strategy.?c.??A push strategy focuses on content marketing, while a pull strategy focuses on offering aggressive discounts.?d.??No intermediaries are involved in a push strategy, while wholesalers and retailers are involved in a pull strategy.99.?Beberse, a soda company, launched iced teas in exotic flavors. The drinks did not do very well in the first couple of months after the launch. The management decided to give out free samples of the iced teas in strategically chosen spots in large shopping malls. This gave the shoppers a chance to sample the drinks before buying them. In the given scenario, the management's decision to give free samples is an example of _____.??a.???advertising?b.??personal selling?c.??content marketing?d.??sales promotion100.?PowertoU has developed an organic and natural energy drink. Before launching the drink in the market, the management of PowertoU decides to release a teaser video about the product and its contents and benefits. In the context of the goals of promotion, this an example of _____.??a.??informative promotion?b.??persuasive promotion?c.??reminder promotion?d.??relationship promotion101.?Megan owns a popular café. Although the café has many loyal customers who love the coffee and sandwiches, Megan frequently advertises in the local newspapers and on the radio. This is an example of _____.??a.??informative promotion?b.??relationship promotion?c.??reminder promotion?d.??persuasive promotion102.?King's Crown, a beverage company, launches a new energy drink. It sponsors a marathon in the city as part of its promotional strategy. Moreover, it issues a press release about the sponsorship and persuades media reporters of different newspapers to print it. King's Crown is generating _____.??a.??marketing mix?b.??loyalty?c.??sales response?d.??publicity103.?Which of the following is a difference between social media and personal selling???a.??Social media can disperse a message quickly to a wide audience, while personal selling is very slow in dispersing a message to a large audience.?b.??Social media entails two-way communication, while personal selling entails one-way communication.?c.??Social media is a means of interpersonal communication, while personal selling is a means of mass communication.?d.??Social media provides opportunity for immediate feedback, while personal selling does not provide opportunity for direct feedback.104.?_____ is based on the traditional advertising model, whereby a brand offers money for media space.??a.??Paid media?b.??Owned media?c.??Earned media?d.??Free media105.?The _____ is a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with a promotional message.??a.??BCG matrix?b.??IMC model?c.??AIDA model?d.??SWOT matrix106.?A _____ requires a manufacturer to focus its promotional efforts on end consumers.??a.??push strategy?b.??print marketing strategy?c.??pull strategy?d.??service strategy107.?The basic goal of promotion during the introduction stage of the product life cycle is:??a.?to limit personal selling at the retail level.??b.??to target advertising to specific potential buyers.?c.??to reduce the costs incurred in mass advertising.?d.??to inform the target audience that the product is available.108.?A benefit of advertising is that:??a.??it has a very low cost per contact.?b.??it facilitates consumer empowerment.?c.??it provides opportunity for immediate feedback from consumers.?d.??it creates a long-term, committed relationship between a salesperson and a customer.109.?Which of the following strategies can be used by a firm that uses a pull strategy???a.??Offering aggressive discounts for retailers to buy its products?b.??Using trade advertising?c.??Offering heavy sampling and introductory consumer advertising?d.??Selling products to wholesalers110.?As a product reaches the growth stage of its life cycle, _____.??a.?sales promotion can be reduced??b.??advertising and public relations play no role in the promotional mix?c.??early trial of the product is encouraged?d.??mass advertising is used rather than target marketing111.?The objective of public relations is:??a.??to create the promotional mix for an organization.?b.??to educate the public about a company's goals and objectives.?c.??to receive direct feedback from customers.?d.??to facilitate consumer empowerment.112.?Laelle Corp., a furniture manufacturing company, uses marketing efforts like paid television commercials and magazine inserts to publicize its products. These are examples of activities associated with:?a.??advertising.?b.??franchising.?c.??personal selling.?d.??nonstore retailing.113.?Advertisements of Brita LED Lightings are in the form of comparative advertising to emphasize the benefits of using LEDs over CFLs. The ads emphasize that Brita's LEDs cost less than CFLs or other brands' LEDs, last longer, consume lesser energy, and need to be replaced fewer times than CFLs. In this case, which of the following advertising appeals is used in these ads??a.??Admiration?b.??Profit?c.??Vanity and egotism?d.??Health114.?Kriyoto Inc. is a manufacturer of printers, scanners, and other office equipment. It announced a cash refund for corporate purchases in quantities more than ten. Rick purchased 20 color printers for his office from Kriyoto during this sale. To avail the cash refund, he had to mail in a proof of purchase, purpose of purchase, proof of his company's legality, and his cash register receipt. In this case, Rick has received a:?a.??premium.?b.??bonus.?c.??push money.?d.??rebate.115.?Smithy Writing Implements has launched a range of markers with gel inks that show up brightly on dark surfaces. The pens have special writing tips and specially designed caps to prevent the ink from drying. The ad campaign for the pens, however, focuses only on their capability to write on dark surfaces as this feature is not offered by any of their competitors. In the given scenario, this feature is an example of _________.??a.??a unique selling proposition?b.??a consumer stimulant?c.??an advertising specialty?d.??product parity116.?Olivia recently opened a salon. She strategically priced her salon's services slightly lower than that of other popular salons in the neighborhood. Subsequently, she handed her customersa flyer that listed the prices of various services that she offered in her salon. It also listed the prices charged by two other salons in the area for the same services. The given scenario exemplifies _________.??a.??comparative advertising?b.??pioneering advertising?c.??institutional advertising?d.??advocacy advertising117.?Nikki owns a small plant nursery. Every spring, when people start planting their gardens, she frequently advertises in the local newspaper. In the context of media scheduling, which of the following types of media schedule does the given scenario exemplify???a.??A continuous media schedule?b.??A flighted media schedule?c.??A pulsing media schedule?d.??A seasonal media schedule118.?Fournotts Corp., a sports shoe manufacturer, launched a new sports shoe. As a part of publicity, it invited its customers to try the shoes and get a feel of its features. This is an example of _____.??a.??corporate communication?b.??sponsorship?c.??product placement?d.??experiential marketing119.?Which of the following is a difference between an attribute and a benefit of a product??a.??An attribute includes pleasure or improved health, while a benefit includes an easy-open package or a special formulation.?b.??An attribute cannot be experienced by consumers, while a benefit is tangible and can be experienced.?c.??An attribute is bought by consumers, while a benefit is not bought by consumers.?d.??An attribute is simply a feature of a product, while a benefit is what consumers receive by using a product.120.?Michael is the managing director of Centaurus Communications, a smartphone marketing company. When his media planning team suggested placing an advertisement on a billboard on the busiest route in the city, he rejected the idea. He felt that there were too many billboards on that route, and Centaurus's advertisement might not get noticed. In the given context, billboards have a high ________.??a.??recency effect?b.??primacy effect?c.??feedback loop?d.??noise level121.?When Jacob opened agaming lounge in his town, it was the only one of its kind for two years. When other clubs opened in the area, he hired an advertising agency to create a campaign to promote his lounge. The campaign focused on reminding consumers of the good times they had had at his club. He also hired a local celebrity to endorse his club. The ad campaign's appeal to the emotions of the consumers is an example of __________.??a.??pioneering advertising?b.??comparative advertising?c.??institutional advertising?d.??competitive advertising122.?Nureno Automobiles is launching a new electric car, Gepard. The ad campaign of Gepard includes a series of television ads that give detailed information about the car and enumerate the benefits of driving an electric car. The ad campaign of Gepard is an example of ________.??a.??competitive advertising?b.??institutional advertising?c.?pioneering advertising??d.??comparative advertising123.?Duski, a very expensive brand of clothing and accessories, promotes its products by using advertisements that feature beautiful women clothed in its brands. Given this information, which of the following advertising appeals is used by Duski??a.??Health?b.??Environmental consciousness?c.??Profit?d.??Vanity and egotism124.?Serona Computers has launched a new range of extremely lightweight tablet computers. These computers have high speed processors with a large RAM capacity, and they come preloaded with some of the most popular software. However, the ad campaign for these computers revolves around their lightweight construction. Almost all the ads in the campaign point out the ease of carrying them. In the given scenario, the lightweight construction of the tablet computers exemplifies ________.??a.??a consumer stimulant?b.??an advertising specialty?c.??an advertising appeal?d.??an in-pack premium125.?Kelly's Kitchen, a popular chain of fast food restaurants, offers a kids' meal pack free with every purchase of its newly introduced luxury meal pack. This is an example of a:?a.??trade allowance.?b.??loyalty marketing program.?c.??rebate.?d.??premium.126.?The ad campaign of Ivre, a beer company, focuses on promoting responsible drinking. The company airs short ads on television appealing to the public to drink responsibly and always designate a driver. The ad campaign of Ivre exemplifies _________.??a.??institutional advertising?b.??product advertising?c.??pioneering advertising?d.??competitive advertising127.?_____ is the element in the promotional mix that evaluates people's attitudes, identifies issues that may elicit their concern, and executes programs to gain their understanding and acceptance.??a.??Personal selling?b.??Advertising?c.??Sales promotion?d.??Public relations128.?_____ is a public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product; on the Internet; or at special events.??a.??Audience selectivity?b.??Product placement?c.??Corporate communication?d.??Advergaming129.?Pioneering advertising is heavily used during the _____ of the product life cycle.?a.??introductory stage?b.??growth stage?c.??formative stage?d.??conception stage130.?Which of the following is an example of unmeasured media ad spending??a.??Cable TV?b.??Magazines?c.??Catalogs?d.??Newspapers131.?_____ is the channel used to convey a message to a target market.?a.??A medium?b.??An advertising appeal?c.??Reach?d.??Audience selectivity132.?Firms use competitive or brand advertising when a product enters the _____ of the product life cycle and other companies begin to enter the marketplace.?a.??introductory stage?b.??growth stage?c.??formative stage?d.??decline stage133.?New brands with a small market share tend to spend proportionately more for advertising and sales promotion than those with a large market share because:?a.??a certain minimum level of exposure is needed to measurably affect purchase habits.?b.??spending more will prevent advertising response function.?c.??returns multiply beyond a certain level of spending.?d.??product sales and market share improve drastically and keep increasing with more spending.134.?Which of the following is an advantage of using cost per contact to determine the media mix for a product??a.??It allows advertisers to increase an ad's effectiveness by reaching potential customers.?b.??It enables an advertiser to compare the relative expenses of specific media vehicles.?c.??It requires advertisers to pay only for the customers who view their ad.?d.??It allows marketers to minimize the cost of advertising by reaching a large number of people.135.?_____ is a form of advertising designed to influence demand for a specific brand.?a.??Institutional advertising?b.??Advocacy advertising?c.??Competitive advertising?d.??Pioneering advertising136.?Fresnas Designs Inc. is a company known for its quality interior decorations, customized service, and affordable prices. Given the high demand in the market for its service, the management of Fresnas Designs Inc. could price its products higher, but it prefers to price its products such that it will earn a reasonable revenue. In this case, the management of Fresnas Designs Inc. bases its pricing policy on:??a.??sales maximization.?b.??earning satisfactory profits.?c.??creating retained earnings.?d.??status quo pricing.137.?Kylerd, a mobile phone brand, has been facing a lot of competition from rival phone companies and is losing money. Therefore, it plans to maximize sales by flooding the market with its products, including excess inventory. In this scenario, which pricing objective does Kylerd plan to use???a.??A status quo pricing objective?b.??A profit-oriented pricing objective?c.??A bait-and-switch pricing objective?d.??A sales-oriented pricing objective138.?99-Center Inc. is a retail store where all its merchandise is priced at 99 cents. This retailer uses a _____.??a.??single-price tactic?b.??flexible pricing tactic?c.??price lining tactic?d.??price bundling tactic139.?Galloren Inc., a firm that sells greeting cards, plans to counter high competition during Christmas by selling its products at a 15 percent discount. It believes that this strategy will help the business to effectively get rid of excess inventory during this period of high demand. According to this scenario, Galloren Inc.'s pricing objective is _____.??a.??market share maximization?b.??profit maximization?c.??asset maximization?d.??sales maximization140.?Raviant Airways slashed its international ticket prices so low that none of its competitors could match it. As a result, the firm gained a huge market share and some of the smaller competitors went out of business. After a year, Raviant Airways moved back to its original prices. However, the firm continued to enjoy a large share of the market. According to this scenario, Raviant Airways used the strategy of _____.??a.?anchor pricing??b.??predatory pricing?c.??price fixing?d.??status quo pricing141.?Severallest, a supermarket, ran into losses in the last financial year and its management wanted to ensure that it did not happen again this year. Therefore, the firm laid off several employees and introduced a customer loyalty program in which loyalty cardholders could earn points on each purchase. In this scenario, Severallest aimed at achieving _____.??a.?market share pricing??b.??profit maximization?c.??demand orientation?d.??sales maximization142.?During off-season, the Rues Hotel offers a 25 percent reduction on its rooms to attract guests. Given this information, which of the following is illustrated in this scenario???a.??The power of yield management systems?b.??The advantage of markup pricing?c.??The relationship between price and quality?d.??The use of price as a promotional tool143.?Nerissa owns a shop that sells a wide range of souvenirs. Her suppliers also service most of her competitors. Therefore, she prices her products in the same range as that of her competitors. Which pricing objective does Nerissa follow???a.??Status quo pricing?b.??Survival pricing?c.??Sales-oriented pricing?d.??Profit-oriented pricing144.?Unlike even-numbered prices, odd-numbered prices:??a.??make consumers feel they are paying a higher price for a product.?b.??are used for "prestige" items.?c.??have elastic demand.?d.??connote a bargain.145.?Most demand curves slope:?a.?upward and to the right?b.?downward and to the right?c.?upward and to the right?d.?upward and to the left146.?At a price of $2,000 per unit, the demand for Ranger 60 mountain bikes from Cloyd's Inc. is 300 units, which is same as the number of bikes manufactured every year. If the marketing managers at Cloyd's Inc. decide to sell each bike at a price lower than $2,000 per unit, _____.??a.??a shortage of bikes will be created?b.??the number of bikes being made will increase drastically?c.??an inelastic demand for the bikes will be created?d.??the demand and supply for the bike will attain equilibrium147.?Pedro owns the only silver jewelry shop in a small rural neighborhood. He sells his products at double their cost. Pedro's practice is known as _____.??a.??keystoning?b.??status quo pricing?c.??predatory pricing?d.??economy of scale148.?Demand for a product will be inelastic if:?a.??its price is so low that it is an inconsequential part of an individual's budget.?b.??the product has a number of different uses.?c.??many substitute products are available in the market.?d.??the product can be repaired and replaced or prolonged in its use.149.?When the price of a product is set at a level where demand and supply are the same, price??? has been achieved.?a.?stability?b.?status quo?c.?equilibrium?d.?symmetry150.?If price goes up or down and revenue stays the same:?a.?elasticity is solitary??b.?elasticity is quantum?c.?elasticity is universal?d.?elasticity is unitary151.?The two types of costs a marketer needs to consider when setting prices are:?a.?fixed and variable?b.?elastic and inelastic?c.?long term short term?d.?marginal and absolute152.?Your Memory Lane creates custom art prints that use graphs and icons in a street scene to commemorate special occasions. Suppose that Your Memory Lane has priced its product at $350 per print. Further, it has determined that the company’s fixed cost is $12,500, with average variable costs per print of $250. What is the fixed cost contribution per print??a.?$100?b.?$700?c.?$11,900?d.?$12,250153.?Brettend Corp., a car manufacturer, launched its premium hatchback in the country of Leslania before any of its competitors did. Although the car was priced unreasonably high, it was a success because it was perceived as a luxury hatchback. In this scenario, Brettend Corp. adopted the strategy of _____.??a.??penetration pricing?b.??price skimming?c.??status quo pricing?d.??bait-and-switch pricing154.?_____ is a pricing policy whereby a firm charges a relatively low price for a product when it is first rolled out as a way to reach the mass market.??a.??Penetration pricing?b.??Price skimming?c.??Price discrimination?d.??Status quo pricing155.?Your Memory Lane produces custom? made art prints that include graphics and icons to celebrate life’s special moments. For example, on his wedding anniversary, David had an art print produced that celebrated highlights of ??his ten years with his wife, Kathy. Suppose that Your Memory Lane sells the custom artwork for $500. It estimates its average variable costs to be $200 per unit produced. It figures its fixed costs to be $900,000 per year. How many prints does it have to sell to break even??a.?1800?b.?4500?c.?3000?d.?1286156.?Using this table - at what price?is equilibrium?PRICEQUANTITY DEMANDEDQUANTITY SUPPLIED1.0010090090200800803007007040060060500500506004004070030030800200?a.?80?b.?50?c.?30?d.?60157.?

?a.?15; 500?b.?10; 300?c.?20; 250?d.?5; 1000158.?For convenience, pricing objectives can be divided into three categories, which are:??a.??refundable, competitive, and attainable.?b.??perceived, actual, and situational.?c.??differentiated, niche, and undifferentiated.?d.??profit oriented, sales oriented, and status quo.159.?_____ is a method of determining what sales volume must be reached before total revenue equals total costs.??a.??Break-even analysis?b.??Markup pricing?c.??Opportunity analysis?d.??Fixed-cost pricing160.?A cost that changes with the level of output is called a(n) _____.??a.??liquid cost?b.??variable cost?c.??independent cost?d.??indirect cost161.?_____ does not change as output is increased or decreased.??a.??Marginal cost?b.??Dependentcost?c.??Fixed cost?d.??Opportunity cost162.?_____ is the quantity of a product that will be offered to the market by a supplier at various prices for a specified period.??a.??Demand?b.??Supply?c.??Market share?d.??Product share163.?Inelastic demand is a situation in which:??a.??an increase or a decrease in price does not significantly affect the demand for a product.?b.??prices are adjusted over time to maximize a company's revenues.?c.??demand is created for new products by aggressive brand awareness campaigns.?d.??consumers' demand is sensitive to price changes.164.?Return on investment (ROI) for a firm:??a.??is the margin of profit earned by the firm inclusive of the taxes payable by the firm.?b.??is its total assets multiplied by the net profits after taxes.?c.??measures management’s overall effectiveness in generating profits with the available assets.?d.??will be lower than the previous year if the firm performs better in the market.165.??Which of the following happens if demand is elastic??a.??As price goes up, consumer demand changes.?b.??The competition between organizations reduces.?c.??There is no substitute for a product in such case.?d.??Purchasing power of the consumer decreases.166.?When there are many substitutes available for a particular product, consumers:??a.??judge the quality of the substitute product based on supply of each substitute.?b.??perceive individual products to have poor durability.?c.??can easily switch from one product to another.?d.??are sensitive to changes in supply of substitute products belonging to new brands.167.?A price skimming strategy is most often used for a new product when:??a.??competition in the market is abundant.?b.??customers are unwilling to spend a large amount of money on the product.?c.??its supply is greater than its demand.?d.??the product is perceived by the target market as having unique advantages.Answer Key1.?b2.?d3.?d4.?b5.?a6.?d7.?d8.?a9.?d10.?b11.?b12.?c13.?c14.?d15.?d16.?b17.?a18.?a19.?b20.?d21.?b22.?b23.?b24.?c25.?c26.?b27.?b28.?c29.?d30.?b31.?c32.?d33.?b34.?c35.?d36.?a37.?a38.?a39.?d40.?a41.?c42.?a43.?a44.?d45.?d46.?b47.?c48.?b49.?d50.?d51.?b52.?a53.?a54.?c55.?c56.?a57.?d58.?d59.?b60.?c61.?c62.?d63.?a64.?c65.?a66.?a67.?a68.?a69.?c70.?a71.?b72.?b73.?b74.?d75.?c76.?d77.?c78.?a79.?b80.?a81.?c82.?c83.?d84.?d85.?a86.?a87.?c88.?d89.?c90.?b91.?b92.?c93.?b94.?a95.?d96.?a97.?d98.?b99.?d100.?a101.?c102.?d103.?a104.?a105.?c106.?c107.?d108.?a109.?c110.?a111.?b112.?a113.?b114.?d115.?a116.?a117.?d118.?d119.?d120.?d121.?d122.?c123.?d124.?c125.?d126.?a127.?d128.?b129.?a130.?c131.?a132.?b133.?a134.?b135.?c136.?b137.?d138.?a139.?d140.?b141.?b142.?d143.?a144.?d145.?b146.?a147.?a148.?a149.?c150.?d151.?a152.?a153.?b154.?a155.?c156.?d157.?a158.?d159.?a160.?b161.?c162.?b163.?a164.?c165.?a166.?c167.?d ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download