Questions: 1. If E = 1, demand is said to be.
a. elastic
b. inelastic
c. unitary
d. invalid
2. What does it mean for demand to be "unitary?"
a. prices go up or down but revenues remain about the same
b. prices remain the same but revenue goes up and down
c. prices and revenue change unpredictably
d. there is never a change in price or revenue
3. Which of the following is NOT true about the price-sensitive segment?
a. They are deal-prone.
b. They will run to competitor if we raise prices.
c. If prices get too high, they may completely drop out of the category.
d. They'll buy our brand no matter what.
4. Which of the following is the formula for cost-plus pricing?
a. (unit cost) / (1-X%)
b. (unit cost) x (1-X%)
c. (unit cost) + (1-X%)
d. (unit cost) - (1-X%)
5. If your fixed costs (including marketing, advertising, R&D, depreciation, etc.) are high relative to variable costs (which include labor or unit components), the strategic objective is to:
a. maximize per unit margins
b. eliminate advertising
c. maximize sales volume
d. raise the price as much as possible
6. (Price - variable costs) is also called .
a. profit
b. contribution per unit to fixed costs
c. maximum sales volume
d. fixed price units per contribution
7. National Product Company is indecisive about what prices it should charge for items in its new product line. The company wants the most accurate data on customers' willingness-to-pay for its products. By using , which can yield very precise estimates of demand and price sensitivities at numerous price points, National Product Company can gather the data it needs to set prices.
a. survey data
b. conjoint analysis
c. online data
d. scanner data
8. All of the following are indicators of scanner data EXCEPT:
a. which brands are bought
b. the quantities bought
c. product advertising
d. the paid price
9. A survey asks the following two questions:
Q1) $25.00 definitely would not buy 1 2 3 4 5 6 7 definitely would buy
Q2) $35.00 definitely would not buy 1 2 3 4 5 6 7 definitely would buy
There is a segment of people who are not really interested in the product regardless of the price. What are their answers most likely to be?
a. Q1=2 or 3, and Q2=1 or 2
b. Q1=6 or 7, and Q2=5 or 6
c. Q1=4 or 5, and Q2=3 or 4
d. Q1=1 or 2, and Q2= 2 or 3
10. What is the marketing manager's favorite tool to study pricing?
a. conjoint
b. surveys
c. scanner data
d. meta-analysis
11. Most consumers wouldn't drive very far to buy a pack of gum since it's a lost-cost item that is often bought on impulse. Therefore, this product needs to be distributed _ .
a. intensively
b. selectively
c. paradoxically
d. partially
12. Some products are complicated and expensive, and require the help of a salesperson for a customer to make a purchase decision. These product, therefore, need to be distributed.
a. intensively
b. selectively
c. paradoxically
d. partially
13. What term refers to the extreme case of selectivity?
a. distribution channel
b. exclusive channel
c. monopolistic channel
d. intensively channel
14. In push marketing, the manufacturer targets rather than .
a. consumers, channel members
b. channel members, consumers
c. men, women
d. women, men
15. Channel design is an integral part of all of the following EXCEPT:
a. marketing
b. strategy
c. positioning
d. pricing
16. Consumers are said to pull goods through the channel, whereas trading partners
the goods from the manufacturer on down the food chain.
a. hold
b. throw
c. push
d. select
17. strategies are incentives a manufacturer offers to its distribution partners such as dealers, wholesalers, retailers, and the like to sell products to the end users.
a. Pull marketing
b. Marketing
c. Promotion marketing
d. Push marketing
18. A perspective by which the benefits a company brings to its partners (beyond cost reductions) are emphasized is referred to as .
a. TVA
b. TCA
c. governance cost
d. government cost
19. In the basic model of dyadic communication there are three parts. Which of the following is NOT one of the parts?
a. source
b. receiver
c. message
d. transfer agent
20. SnowBlowers, Inc. is targeting consumers in the northern regions of the U.S., and focusing on giving consumer practical and function reasons to buy its snowblowers. What type of ad is SnowBlowers, Inc. using?
a. comparative
b. noncomparative
c. cognitive
d. emotional
21. SnowBlowers, Inc. expresses the benefits of using its snowblowers. What type of argument is SnowBlowers, Inc. using?
a. two-sided argument
b. one-sided argument
c. four-sided argument
d. three-sided argument
22. In a(n) , an advertisement emphasizes the positive benefits, but also acknowledges either some product weakness or that a competitor dominates on some attribute.
a. three-sided argument
b. one-sided argument
c. two-sided argument
d. four-sided argument
23. In a(n) , a brand is mentioned and its features, attributes, and image portrayal are conveyed in the message.
a. noncomparative ad
b. comparative ad
c. emotional ad
d. cognitive ad
24. In a(n) , the featured brand name is mentioned, as is the brand name of a competitor.
a. cognitive ad
b. noncomparative ad
c. comparative ad
d. emotional ad
25. FunnyTime Products uses humor in its ads to communicate with its fun-loving consumers. What type of ads does FunnyTime Products create?
a. comparative
b. emotional
c. cognitive
d. noncomparative
26. Hite Enterprises avoids using negative emotions in its advertisements. Hite Enterprises likely does not use emotions such as to sells its products.
a. happiness and excitement
b. sadness and loneliness
c. aches and pains
d. fear and embarrassment
27. Sears has an ad for Christmas trees in December. What type of ad is this?
a. continuous
b. occasional
c. seasonal
d. annual
28. In the past, according to media and market research, after TV, which media did people typically spend more time on per day?
a. Magazines
b. Books
c. Newspapers
d. Radio
29. Donna's philosophy as she coordinates her firm's marketing efforts is to keep in mind the company's overarching strategy, and to ensure that all marketing activities send a consistent message, beginning with the communications but also including the other marketing mix elements. Based on this information, Donna is most likely a proponent of
a. Integrated Marketing Communications
b. Intended Marketing Commitments
c. Media Reach
d. Media Response
30. Donovan Digital sells sophisticated high-tech products. Donovan Digital can best explain its products in which media?
a. radio
b. newspapers
c. TV
d. billboards
31. Which ad would be the least expensive?
a. 30-second TV ad
b. 1 page, 1 day in metropolitan newspaper
c. 1 minute radio ad
d. full page color ad in BusinessWeek
32. Bill's Surf Shop needs to advertise. Which option provides the largest frequency?
a. TV
b. billboards
c. direct mail
d. the Web
33. Which medium yields the largest reach numbers?
a. radio
b. billboards
c. the Web
d. TV
34. Ryan is a marketer for a computer gaming company. He wants to advertise the game's new graphics but doesn't want to pay the high price of showing it off on TV. What medium should he use?
a. radio
b. billboards
c. magazines
d. newspaper
35. The easiest and most common way to characterize in a social network is to count the number of connections each actor has with the others in the network.
a. linearity
b. extraversion
c. intelligence
d. centrality
36. Distributions of links in most networks follows a(n) rule.
a. 80/20
b. 50/50
c. 90/10
d. 60/40
37. What term refers to a homogenous sample of like-minded people within a network?
a. clique
b. workgroup
c. club
d. team
38. Two actors are said to be if their links to others are the same.
a. heterogeneous
b. structurally equivalent
c. equitable
d. socially significant
39. Amazon.com uses structural equivalence to do which of the following?
a. make product recommendations
b. keep credit card information secure
c. encourage users to write product reviews
d. deliver purchases
40. In a cluster analysis, the rows represent , and the columns represent .
a. customers, SKUs
b. SKUs, customers
c. retailers, customers
d. customers, retailers
41. Recommendation agents are a boon as a systematic means of .
a. saving money
b. reaching new customers
c. soliciting feedback
d. cross-selling
42. Many CEOs do not understand the attraction of social media because of how they are.
a. uneducated
b. old
c. wealthy
d. intelligent
43.. The most trusted source of expectations is:
a. word-of-mouth.
b. a consumer's own experience.
c. friends.
d. family.
44. When a consumer does not have much personal experience with a realtor (for example, a first-time home buyer), he will form expectations from .
a. an extrapolation of past experiences with professional service providers
b. newspaper articles
c. his last visit with his doctor
d. an extrapolation of past experiences with service industry staff
45. When we have a situation where we do not have much experience with a brand, we seek people .
a. who are brand ambassadors
b. who are smart
c. who we are related to
d. who we trust
46. Information originating from the marketing mix of a company that contributes to a consumer's expectations may include .
a. positioning claims made in advertising
b. suggestions of quality based on the price of a product
c. trust-worthy data on product quality
d. positioning claims made in advertising and suggestions of quality based on the price of a product
47. What do customers evaluate when making a purchase?
a. core
b. service
c. core and service
d. core, service, and supplemental
48. If the core part of the purchase is .
a. good it decreases satisfaction
b. good it increases satisfaction
c. bad it increases dissatisfaction
d. bad it does not affect satisfaction
49. factors are actions that go above and beyond customer expectations.
a. Motivating
b. Hygiene
c. Extra
d. Bonus
50. The VP of Customer Experience at an international hotel chain is constantly looking for ways to improve customer service, whether it be at check-in, room service, concierge services, check- out, etc. This is important because customers generally evaluate companies and brands based on
a. time components
b. search effort
c. points of interaction
d. value-added supplemental components