Question 1
The LCV concept supports all of the following propositions EXCEPT:
A. every customer must be served.
B. marketing effort should not be unprofitable.
C. the marketer should decide which customers to keep.
D. the marketer should decide how much to spend on customer retention.
E. the LCV concept requires all of the above.
Question 2
Sales promotion is likely to be emphasized if:
A. the marketing budget is small.
B. the product is a low-involvement, routine purchase.
C. the goal is to induce short-term brand switching.
D. all of the above
E. none of the above
Question 3
The MOST important factor in setting price is:
A. customer value.
B. fixed costs.
C. variable costs.
D. profit.
E. competitive prices.
Question 4
Programs that sift through vast amounts of customer information are used to:
A. conduct data mining.
B. create demographic data.
C. create database programs.
D. build websites.
E. assess trade show costs.
Question 5
The MOST common type of "deal" used for grocery products is based on:
A. features.
B. price cuts.
C. display.
D. store coupons.
E. manufacturer coupons.
Question 6
The product manager:
A. should view the retailer as a needed ally.
B. is successful only if retailers are successful.
C. seeks to discourage the practice of forward buying.
D. relies upon retailers for support and redemption.
E. all of the above
Question 7
Individual customer profitability may be increased by:
A. increasing cross-selling.
B. increasing up-selling.
C. reducing marketing costs.
D. increasing the time periods the customer purchases.
E. all of the above
The likelihood of competitive response to promotional activity is affected by the fact that MOST markets are:
A. oligopolies.
B. monopolies.
C. monopolistically competitive.
D. perfectly competitive.
E. none of the above
Question 9
Couponing may:
A. accelerate regular purchases.
B. accelerate captured purchases.
C. award price cuts to regular buyers.
D. attract brand switchers.
E. any/all of the above
Question 10
Trade promotions may seek to:
A. increase stocking levels.
B. increase sales levels.
C. build relationships.
D. any/all of the above
E. none of the above
Question 11
A high price can:
A. reduce the quantity demanded.
B. project a quality image.
C. generate profits based on margin.
D. increase the quantity demanded.
E. any of the above
Question 12
Web sites are customized through the process of:
A. personalization.
B. adaptation.
C. cosmetics.
D. transparency.
E. collaboration.
Question 13
Mass customization allows customers to choose from a "menu" of:
A. product attributes.
B. components.
C. prices.
D. delivery options.
E. all of the above
Question 14
In recent years, the balance of power in consumer product channels has increasingly favored:
A. large manufacturers.
B. large retailers.
C. large wholesalers.
D. large agents.
E. large representatives
Question 15
Price perceptions are the result of comparing price against:
A. perceived product value.
B. expected product benefits.
C. historical prices.
D. expected future prices.
E. any/all of the above
Question 16
Cost has become the traditional basis for pricing because:
A. of its simplicity.
B. no firm can survive selling below cost.
C. the data required is readily available.
D. all of the above
E. none of the above
Question 17
According to the DuPont approach, customer and value-in-use would be stressed during the ______________ stage of the PLC.
A. maturity
B. saturation
C. growth
D. introduction
E. decline
Question 18
The spending plan, or advertising budget,:
A. divides the budget among the costs of the media vehicles selected.
B. specify production costs.
C. identify testing methods to be used.
D. all of the above
E. none of the above
Question 19
All of the following are examples of physiological methods used to evaluate advertising EXCEPT:
A. pupil dilation.
B. brains cans.
C. theater tests.
D. eye tracking.
E. GSR/EDR
Question 20
The CIF consists of
A. response information.
B. customer value.
C. contact history.
D. customer descriptors.
E. all of the above
Question 21
Price variations exist within segments as a result of:
A. brand loyalty.
B. loyalty to a supplier.
C. price differences are not obvious.
D. differences in competitive intensity.
E. any/all of the above
Question 22
Which of the following pricing approaches is often used to "move" slow sellers by packaging them with more desirable items?
A. price bundling
B. line pricing
C. substitution pricing
D. complimentary pricing
E. value pricing
Question 23
In the CIF, the customer's purchase history consists of:
A. products purchased.
B. channels used.
C. prices paid.
D. margins earned (if possible).
E. all of the above
Question 24
Channel arrangements should cover:
A. service expectations.
B. delivery expectations.
C. return/allowance policy.
D. degree of exclusivity.
E. all of the above
Question 25
Which of the following is MOST consistent with a strategy of "value pricing"?
A. perceived value >price>variable cost.
B. price >perceived value>perceived cost.
C. price>variable cost>perceived value.
D. value
E. none of the above
Question 26
Customer service is a MAJOR part of the:
A. manufactured product.
B. core product.
C. expected product.
D. augmented product.
E. platform product.
Question 27
"Loyal" customers:
A. produce a profitable revenue stream over time.
B. stimulate revenue growth.
C. are less expensive to serve.
D. will often pay premium prices.
E. all of the above
Question 28
The MOST common objective of a consumer promotion is to:
A. build customer loyalty.
B. generate more short-term sales.
C. introduce new products.
D. support JIT programs.
E. replace expensive advertising programs.
Question 29
Most loyalty programs are best described by the term:
A. frequency marketing.
B. quality marketing.
C. service recovery.
D. guarantees.
E. chat services.
Question 30
Which of the following advertising objectives is EASIEST to assess/measure?
A. exposure
B. awareness
C. attitude
D. store visits
E. sales/profits
Question 31
Customer satisfaction is a function of:
A. pre-purchase expectations.
B. post-purchase performance.
C. how well the product is perceived to perform relative to its expected performance.
D. all of the above
E. none of the above
Question 32
The PC impacted distribution channels by:
A. encouraging the emergence of mass retailers.
B. inspiring direct sales.
C. supporting the growth of computer supermarkets.
D. supporting the emergence of the internet as a retail "site".
E. all of the above
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Question 33
Perhaps the fastest growing channel used by product managers is:
A. direct marketing.
B. television.
C. radio.
D. print.
E. publicity.
Question 34
All of the following statements about the web are true EXCEPT:
A. It is not the first new communication technology.
B. It is not the first interactive technology.
C. It is a sufficient channel for most products.
D. Its widespread availability is limited.
E. All of the above are true.
Question 35
The choice between direct and indirect channels may be impacted by:
A. the likelihood of future competition from a channel member.
B. the locus of customer loyalty.
C. the impact f information technology.
D. all of the above
E. none of the above
Question 36
The highest price the consumer is willing to pay for a product or service is called the:
A. discrimination price.
B. segmentation price.
C. reservation price.
D. preservation price.
E. threshold price.
Question 37
Which of the following approaches to budgeting for advertising is MOST logical?
A. percent of sales
B. objective and task
C. competitive parity
D. affordable
E. experimentation
Question 38
Customer satisfaction is a function of:
A. perception.
B. manufacturing processes.
C. quality control.
D. monopoly power.
E. price.
Question 39
All of the following factors favor direct channels EXCEPT:
A. high information needs.
B. product customization is important.
C. purchase orders are large.
D. quality assurance matters.
E. availability is important.
Question 40
Which of the following is the MOST expensive way to regain market share losses?
A. improve product quality
B. lower price
C. enhance pre-/post-sale service
D. enhance product image
E. enhance sales force quality/training
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