Marketing Test Bank PDF

1.​True or False? Online reviews of clinicians have been found to have little effect in terms of an individual’s choice of a physician. ANSWER: False 2.​True or False? The large majority of boomers are concerned with the accuracy of information on social media sites. ANSWER: False 3.​True...

1.​True or False? Online reviews of clinicians have been found to have little effect in terms of an individual’s choice of a physician. ANSWER: False 2.​True or False? The large majority of boomers are concerned with the accuracy of information on social media sites. ANSWER: False 3.​True or False? Fear appeals in advertising have not been found to be very effective because consumers turn away from them because of their anxiety-producing effects. ANSWER: False 4.​True or False? Moderate fear appeals have been found to be effective in inducing positive behavior change in low-involvement situations. ANSWER: True 5.​True or False? The major challenge with using humor as an emotional approach in messaging is that this emotion is often specific to the individual. ANSWER: True 6.​True or False? When considering the channel in the communication process, the major delineation is whether it is personal or done over the Internet. ANSWER: False 7.​True or False? A problem with using the interpersonal channel of communication is the lack of total control. ANSWER: True 8.​True or False? Health care has historically relied on opinion leaders in a word-of-mouth channel of communication. ANSWER: True 9.​True or False? For communication to occur, a message must be decoded by the receiver the same way it was encoded by the sender. ANSWER: True 10.​ True or False? Noise in the channel of communication can be created by the sender or by the channel itself. ANSWER: True 11.​ True or False? The physician’s gender has been found to have no effect on the patient–physician interaction. ANSWER: False 12.​ True or False? Patients of female physicians have been found to talk more. ANSWER: True 13.​ True or False? A hospital in a particular community has been very proactive about controlling their healthcare costs. Over the past month, the local newspaper has run a series of stories highlighting the rising cost of health care. When the hospital did a community survey on their image a month later, they were rated poorly on cost-effectiveness. In this example, channel noise was the problem, not the hospital’s poor encoding process. ANSWER: True 14.​ True or False? The major advantage of the interpersonal channel is the immediacy of feedback. ANSWER: True 15.​ True or False? Advertising is any indirectly paid form of promotion of goods or services. ANSWER: False 16.​ True or False? A hospital offers a coupon in the newspaper for a free heart-healthy assessment for individuals over age 60 for 2 weeks after opening the new heart center. This is an example of a sales promotion strategy. ANSWER: True 17.​ True or False? The right message delivered to the correct audience is the major goal of any successful promotional strategy. ANSWER: False 18.​ True or False? Owned media are all media owned by third-party, for-profit organizations. ANSWER: False 19.​ True or False? When patients post a story about the great care they received at a medical group on their own Facebook page, this might be considered earned media. ANSWER: True 20.​ True or False? All of the following are unique key advantages of advertising in terms of control as part of the promotional mix: what is said, to whom it is said, when it is said, and why it is said. ANSWER: False 21.​ True or False? A major limitation of advertising over publicity is that advertising has credibility issues. ANSWER: True 22.​ True or False? When buyers are somewhat aware of the service or product and have financial resources, advertising can be most effective. ANSWER: False 23.​ True or False? Advertising can be very useful in the later stages of a product’s life to begin bringing back declining sales by making more customers aware of the product or service. ANSWER: False 24.​ True or False? The less observable the tangible features are of a product or service, the more beneficial it may be to use advertising as a key component of the promotional mix. ANSWER: True 25.​ True or False? As media costs on television have risen dramatically, the cost per contact of advertising is far higher than personal selling. ANSWER: False 26.​ True or False? The more that individuals are involved in the decision to purchase a product or service, the greater the likelihood that personal selling over advertising may be a component of the promotional mix for the seller. ANSWER: True 27.​ True or False? E-detailing is classified as personal selling, although it occurs without face-to-face interaction between a customer and a salesperson. ANSWER: True 28.​ True or False? E-detailing can be defined as the asynchronous presentation of goods and services. ANSWER: False 29.​ True or False? Riskier product purchases require that advertising be a greater part of the promotional mix of the seller over personal sales in order to continue to send messages reassuring the potential buyer that there is little risk of purchase. ANSWER: False 30.​ True or False? In the actual purchase stage, personal sales are often more important than advertising. ANSWER: True 31.​ True or False? Personal sales play little role in the post-purchase stage with the buyer. ANSWER: False 32.​ True or False? The greatest weakness of publicity as a tool of the promotional mix is the lack of control over how the message is encoded and the timing of the message. ANSWER: True ​ 33.​ True or False? Public relations has two important roles for healthcare organizations: promoting the good deeds that occur within the organization and crisis management. ANSWER: True 34.​ True or False? The major reason why health care has been hesitant to use sales promotion strategies is because of reimbursement requirements. ANSWER: False 35.​ True or False? For sponsorships to be effective, there should be a degree of congruence between  the event and the organization. ANSWER: True 36.​ True or False? A common sales promotion used by the pharmaceutical industry is samples. ANSWER: True 37.​ True or False? Pharmaceutical companies give free samples to physicians, but research has shown that this has little impact in increasing prescriptions for the product. ANSWER: False 38.​ True or False? Hospitals no longer distribute free samples of formula to new mothers in maternity units because there was concern that some of the samples had been expired by the time of distribution. ANSWER: False 39.​ True or False? Pharmaceutical companies have increased the amount of sampling to physicians because the federal government has limited television advertising to consumers. ANSWER: False 40.​ True or False? Under Affordable Care Act regulations, the medical loss ratio required insurance companies to pay out at least 80% of their premiums annually in insurance claims. ANSWER: False 41.​ True or False? Physician sales forces are often used in the growth stage of the product life cycle. ANSWER: True 42.​ True or False? In a push strategy, the manufacturer tries to move their product by working with the intermediaries in the channel of distribution. ANSWER: True 43.​ True or False? Doctor-led discussion groups are an example of a push strategy by pharmaceutical companies. ANSWER: True 44.​ True or False? In a pull strategy, the intermediaries pull the customer to the manufacturer. ANSWER: False 45.​ True or False? A university academic medical center invites physicians in the region to a homecoming football weekend and a morning medical education conference (with continuing medical education credits for attendance). The purpose is to encourage referrals to the academic medical center by reinforcing relationships. This is an example of implementing the push strategy. ANSWER: False 46.​ True or False? In recent years, many pharmaceutical companies have changed their promotional strategies from a push to a pull strategy in terms of their communication approach in order to get physicians to write scripts for their brand of drugs.  ANSWER: True 1.​In an indirect competitive advertisement, a product or hospital compares itself: A)​to a direct named competitor, whether it is a brand or hospital. B)​to a leading brand or hospital in the region. C)​to all the best hospitals or brands in a category. D)​None of these is correct. ANSWER: B 2.​Fear appeals can backfire when: A)​the spokesperson is not scary enough. B)​the message is so extreme that it is not credible. C)​the audience does not understand the source of the threat. D)​the target audience does not believe they can escape the threat being presented. ANSWER: D 3.​Word-of mouth information from family and friends is referred to as: A)​earned media. B)​owned media. C)​buzz. D)​paid media. ANSWER: B 4.​The major difference between channels is: A)​whether they are interpersonal or mass communication. B)​their cost. C)​their degree of interactivity. D)​All of these are correct. ANSWER: A 5.​For communication to be effective: A)​it must be placed on the Web. B)​it must be translated by the receiver the same way it was encoded by the sender. C)​the channel must be efficient in the delivery of the message. D)​the noise filter must be effective in the monitoring process. ANSWER: B 6.​The gender of the physician has been found to create differences in the patient interaction. Which dyad represents the greatest possible noise in the physician–patient relationship? A)​Female physician/female patient B)​Female physician/male patient C)​Male physician/male patient D)​Male physician/female patient ANSWER: D 7.​Short-term inducements to buy a product or service are: A)​advertisements. B)​sales promotions. C)​sales presentations. D)​inducements. ANSWER: B 8.​Advertising is distinguished from other promotional tools in that it is: A)​paid and nonpersonal. B)​nonpersonal and ongoing. C)​expensive and segmented. D)​segmented and nonpersonal. ANSWER: B 9.​The ever-increasing fragmentation of communication in the channel has created the need for: A)​blogs and social media by healthcare organizations. B)​the utilization of earned media. C)​a holistic approach to communication planning. D)​integrated marketing communications strategies. ANSWER: D 10.​ The media that might be considered to have the highest form of credibility is: A)​paid. B)​owned. C)​earned. D)​created. ANSWER: C 11.​ When an advertiser pays for a message, they have control. Which element is not a factor over which they have control? A)​What is said B)​How often it is said C)​The attention it is paid D)​Where it is placed ANSWER: C 12.​ Which of the following factors is not a situation in which advertising can be effective? A)​Industry sales are declining. B)​Buyer awareness is minimal. C)​Service features are not observable. D)​Opportunities for differentiation are strong. ANSWER: A  13.​ When does advertising tend to work best? A)​When sales are declining B)​When most of the products are the same C)​When there is little chance for differentiation D)​When the service features are not observable ANSWER: D 14 The major strength of personal selling is that it: A)​is less expensive than mass advertising. B)​allows for direct feedback. C)​allows for no noise to enter the channel of communication. D)​is a pure form of communication. ANSWER: B 15.​Which of the following is not an advantage of personal selling over advertising? A)​It allows the organization to have more control over who sees its message. B)​Any misunderstanding of the message can be corrected. C)​It is the least costly form of promotion. D)​All of these are advantages. ANSWER: C 16.​Personal selling is more often used in which product? A)​Where the customers are geographically dispersed B)​Where there is one primary decision maker C)​Where the product is technologically complex D)​Where there is little risk to the purchaser ANSWER: C 17.​The DMU refers to which of the following? A)​Size of the defined market unit of customers B)​The decision-making unit involved in the purchase C)​Determination of market units in competitive situations for government determination of mergers in health care D)​Detailed markup units for personal sales composition ANSWER: B 18.​If a product or service has significant risk in the purchase, an organization might allocate a greater percentage of its promotional budget toward: A)​personal sales. B)​advertising. C)​sales promotion. D)​Web-based strategies. ANSWER: A 19.​In the prepurchase stage, which promotional tool plays a significant role in affecting or influencing the buyer? A)​Advertising B)​Personal sales C)​Advertising and personal selling D)​All of these are correct. ANSWER: C 20.​Because the buyer often suffers from postpurchase anxiety: A)​the more messages sent to the buyer after the sale the better. B)​the more personal the contact with the buyer after the sale the better. C)​sending emails to the buyer with a survey can enhance postsales contact. D)​customer recovery is key. ANSWER: B 21.​The greatest advantage of over advertising as a promotional tool is that it: A)​is inexpensive. B)​gets more attention. C)​is often repeated in the media. D)​has more credibility. ANSWER: D 22.​Crisis management is one of the major roles that is addressed by: A)​public relations. B)​advertising. C)​personal selling. D)​all of the promotional tools. ANSWER: B 23.​The greatest weakness to publicity as a promotional tool is that: A)​it relies on the effectiveness of the public relations director. B)​it cannot be done too often. C)​it is the indirect payment aspect that results in less control. D)​the target market is often too diffuse. ANSWER: C 24.​Which of the following promotional tools is only useful as a supplemental aspect of the promotional mix?​ A)​Advertising B)​Public relations C)​Personal sales D)​None of these is correct. ANSWER: B 25.​Negative information about an organization: A)​has no significant long-term consequences. B)​can affect the organization if its competitors react to the stories. C)​can affect the organization among higher-educated customers. D)​results in long-term negative consequences. ANSWER: D 26.​The importance of using sales promotions in traditional industries is seen by the fact that: A)​little real dollars are allocated to this form of promotion. B)​more dollars are spent on sales promotion than advertising. C)​no real conclusion can be made, because it is industry dependent. D)​a significant amount is spent in consumer products as compared to industrial industries. ANSWER: B 27.​The 80/20 standard requires that health insurers devote 80% of their premiums to medical services under healthcare reform. As a result, consumers are seeing which of the following? A)​Insurers placing the information on their website regarding their overhead percentage. B)​Insurers responding to blog post questions on overhead. C)​Cash rebates from insurers when the overhead is above the percentage standard. D)​Insurers paying a penalty to the government when the standard is not met. ANSWER: C 28.​Which of the following is not an objective for event marketing? A)​Market share B)​Image enhancement C)​Brand awareness D)​Sales ANSWER: A 29.​Which form of sales promotion is common in the pharmaceutical industry? A)​Samples B)​Premiums C)​Couponing D)​Cash rebates ANSWER: A 30.​Sampling to physicians by pharmaceutical companies has been found to: A)​have no real effect on prescription writing for the drug. B)​increase the number of prescriptions written for the sampled drug. C)​have mixed results depending on the physician’s age. D)​have an increased result among older physicians. ANSWER: B 31.​For sampling to be effective, the: A)​consumer should want to try the product. B)​product should be easily accessible. C)​trial size should not be too large. D)​product or service should be noticeably better than the competition. ANSWER: D 32.​A discount to a channel member based on some particular criterion is referred to as a(n): A)​incentive. B)​premium. C)​allowance. D)​trade preference. ANSWER: C 33.​The concern with cooperative advertising programs is that: A)​they can violate HIPAA regulations. B)​they can be in violation of Stark rules. C)​they can violate the Clayton Act. D)​All of these are correct. ANSWER: C 34.​In the introductory stage of the product life cycle, the major promotional objective is to: A)​gain publicity. B)​encourage primary demand. C)​capture the competitor’s customers. D)​encourage selective demand. ANSWER: B 35.​Primary demand refers to which of the following? A)​Demand for one product as opposed to the competing product B)​Demand for the product in the introduction stage but not the growth stage C)​Demand evidenced by the opinion leaders D)​Demand for the product class ANSWER: D 36.​Selective demand refers to which of the following? A)​Demand for a specific brand B)​Demand for the product class C)​Demand for a product category D)​Demand for evoked set of goods ANSWER: A 37.​Maintaining the existing buyers that an organization serves is the promotional objective of which stage of the product life cycle? A)​Introduction B)​Growth C)​Maturity D)​Decline ANSWER: C 38.​Working through the channel of distribution with promotional efforts is referred to as what promotional strategy? A)​Intermediary B)​Pull C)​Push D)​Vertical ANSWER: C​ 39.​A hospital has offered an extremely successful surgical group preferential block scheduling in the operating room as well as a dedicated surgical nursing team in order to attract them to the facility. This might be described as a: A)​push strategy. B)​pull strategy. C)​trade allowance. D)​violation of the Stark Act and illegal. ANSWER: A 40.​When an organization bypasses the intermediaries and goes directly to the end users with their message, this approach is referred to as a(n): A)​direct approach. B)​push strategy. C)​indirect method. D)​pull strategy. ANSWER: D