Practice Questions BUS 210 PDF

Practice Questions MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A television advertisement being shown during the Academy Awards is an example of what part of the marketing mix, as seen from the customer's perspective? A) Perception B) Pub...

Practice Questions MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A television advertisement being shown during the Academy Awards is an example of what part of the marketing mix, as seen from the customer's perspective? A) Perception B) Public relations C) Communication D) Advertising 1) 2) The use of promotions can effectively reach consumers if A) there is good coordination between social media and traditional advertising. B) the content resonates with consumers and creates customer value. C) there is definitive strategy and efficient execution. D) there is a proper format, and it is correctly timed. 2) 3) Which of the following statements most accurately describes promotion and its effect on communication? A) Efficient communications are the most effective. B) Effective messages are tied to specific company goals. C) A properly defined target market will interpret company communications properly. D) All customer interactions with a company communicate messages. 3) 4) Yuri needs to replace his smartphone. He dreads going out to purchase one because the salespeople tend to make him feel clueless about current technology. With which of the four Cs is Yuri most concerned in this scenario? A) Convenience B) Communication C) Cost D) Customer benefits 4) 1 5) Rodrigo has begun selling tacos from a cart on his college campus. He promotes his products as the "cheapest around." His business is good, but Rodrigo needs to make more money to keep the venture viable. What is the best advice you can give him? A) If this is what the target market wants, then Rodrigo's customers are finding value in the exchange. He should continue his business as is and focus on long-term results. B) Low-price strategies are difficult to maintain. Rodrigo should consider taking a different approach to marketing his business, like the convenience of purchasing a taco while on the go between classes. C) Low-price strategies likely work well with cash-strapped college students, but might not influence others. Rodrigo should begin to slowly raise his prices to see what the market will bear and at what price point others find value in the exchange. D) A lowest-price strategy is difficult to maintain and may not influence the entire target market. Rodrigo would be better served by taking multiple approaches to his marketing strategy, which will increase customer loyalty and, ultimately, company profits. 5) 6) You are the brand manager for a line of denim pants that has been in production for more than 150 years. These jeans are moderately priced, traditionally styled, and known for being able to withstand years of wear and tear. Recently a competitive brand has been running comparative advertisements claiming that your brand is too out of touch with current fashion trends. What is the best way to respond? A) You begin an aggressive marketing campaign touting your brand's traditional styles as "always in fashion." B) You do nothing. Your jeans are very good products, have sold well for many years, and are likely to continue to do so. C) You create a new line of trendy, more stylish jeans to compete with other brands in the current market. D) You emphasize your marketing strategy by creating a contest with your brand community as to who owns the oldest pair of your branded jeans. Ask customers to post photos of themselves and the jeans on social media. 6) 7) Which of the following element pairs helps marketers create the bond that forms brand communities? A) Brand engagement and participation B) Brand purpose and consumption C) Brand recognition and loyalty D) Brand awareness and communication 7) 8) A company who creates interest in outside groups in exchange for their insights on a product is engaging in A) exploratory engagement. B) co-creation. C) groupthink. D) crowdsourcing. 8) 2 9) Maya couldn't stop talking about her purchase of her new clothes for work. Not only had the people in the store been helpful and gracious, she was amazed at how comfortable the surroundings had been from the lighting to the flowers to the way the goods were colorfully displayed, the chilled water she was offered, the amenities in the changing rooms, the way her purchases had been wrapped and more. Her friends were acting bored, but they were also thinking about visiting the same store. What Maya had experienced was A) value-enhanced retailing. B) experiential marketing. C) intimate retailing. D) personal shopping 9) 10) Which of the following accurately describes current use of technology? A) Weixin is the largest global messaging application. B) Facebook is the largest social platform in the world. C) Much of the increased use of technology is happening in Europe. D) There are 45 billion active internet users in the world. 10) 11) Kraft's "My Food and Family" website gives customers a forum for sharing recipes, party tips, and ideas for healthy living while also promoting the full line of Kraft food products. This is an example of A) crowdsourcing. B) co-creation. C) gamification. D) brand community. 11) 12) Which of the following can be a disadvantage to the firm when deciding on the place a business will operate from? A) Traffic flow B) Inconvenience C) Consumer population D) Cost of land 12) 13) While ________ make product decisions, customers buy products for the benefits they receive from buying and using the product. A) marketers B) customers C) owners D) influencers 13) 14) Valuable insights are gained by understanding the marketing mix from the perspective of A) the distributor. B) the employees. C) the customer. D) the supplier. 14) 15) Which is NOT a part of the marketing mix? A) Convenience C) Corporation 15) B) Cost D) Customer benefits 16) What is the most recent group to be incorporated into product benefits? A) Functional Benefits B) Core Values C) Sensory Benefits D) Resource Benefits 3 16) 17) Which type of product benefit affects how customers respond emotionally to product purchases? A) Resource B) Psychological C) Sensory D) Functional 17) 18) What drives how marketers create products? A) Appealing value B) Combination that will give the most value to one specific customer C) Benefits desired by the entire target market D) Appealing benefits 18) 19) Customers will find value in different bundles of benefits, which is one major reason why marketers A) emphasize lowest price for the bundle to maximize value for the customer. B) depend on new product development. C) use customized marketing mixes and the STP (segmentation, targeting, and positioning) process. D) focus on retail outlets to provide the best selection for customers. 19) 20) Which task does NOT belong in the planning phase? A) Marketing mix B) Business analysis C) Marketing strategy D) Idea screening 20) 21) Which of the following statements accurately describes new product successes and failures? A) Weihenstephaner beer is considered the world's worst product failure. B) Marketers typically define failure as products offered for sale for less than one year. C) Successful products often deliver short-term rewards to the companies that market them. D) Marketers disagree on what constitutes failure. 21) 22) Peter was enthusiastic about the new case that he was creating for a smartphone using advanced plastics. He tells you, "This is revolutionary. This is something that everyone needs. This is truly a discontinuous innovation." It is far more likely that this case will be a A) discontinuous enhancement. B) discontinuous improvement. C) continuous innovation. D) continuous improvement. 22) 23) The idea that new technology and the products that utilize the technology spread through markets over time is called A) diffusion of innovation. B) discontinuous innovation. C) innovation. D) continuous innovation. 23) 4 24) Which term refers to the idea that new technology and the products that utilize the technology spread through markets over time? A) Product life cycle B) Diffusion of innovation C) Fad D) Fashion 24) 25) A fashion is a variation in product life cycle. What makes it different than a normal PLC? A) Sales could rise and fall more than once in a fashion. B) It shows the pattern of growing and declining sales. C) Occurs quickly. D) A fashion PLC takes into consideration sales, profits and competition. 25) 26) Nancy is in her late 70s. Recently, a worldwide pandemic has made it impossible for her to get books from her local library or to pay her bills via a teller at her local bank, so she purchases a laptop and Wi-Fi service. Into which diffusion of innovation category does Nancy most likely fall? A) Non-adopter B) Early majority C) Laggard D) Late majority 26) 27) Paul was beginning to think about selling his new smartphone app, and he said, "I wish there was some way to know how this app will be accepted. Otherwise, I'm not sure if I'm succeeding or not." Paul needs to learn about which concept in marketing? A) Product life cycle B) New product Development process C) Diffusion of innovation D) Marketing research 27) 28) The small group of consumers who are willing to pay a premium price for new technologies and who tend to be risk averse are known as A) innovators. B) optimizers. C) status-oriented. D) achievers. 28) 29) What is the best synthesis of the diffusion of innovation curve and the product life cycle curve? A) Early majority adopters respond strongly to primary demand. B) Discontinuous innovations are most common when products reach maturity. C) The patterns imply a corresponding need for changes in marketing strategy. D) Heavy competition drives sales and adoptions. 29) 30) Which of the following terms applies to the image of a green two-tailed mermaid dubbed "the siren"? A) Brand value B) Brand mark C) Brand name D) Brand extension 30) 5 31) Which of the following is NOT one of the reasons marketers work to build brands? A) Brands reduce marketers' efforts. B) Brands can enable premium pricing. C) Brands support product extensions. D) Brands protect against competition. 31) 32) Apple creating iPhones after many years of producing iPods and computers would be considered what type of extension? A) Extension B) Near-category extension C) In-category extension D) Out-of-category extension 32) 33) Pampers created diapers specifically to be worn at nighttime and for swimming. What type of extension is this from the original diaper Pampers started with? A) Extension B) In-category extension C) Near-category extension D) Out-of-category extension 33) 34) Which of the following took on the least amount of risk when creating a brand extension? A) NyQuil creating a sleep aid "ZzzQuil" B) Clorox creating the wand toilet bowl cleaner C) Oreo creating cookie dough Oreos D) Yankee Candle Company creating car air freshener products 34) 35) You are the brand manager of a new carbonated, flavored water and want to develop a strong bond between the brand and the market. What is the best way to proceed? A) Develop marketing efforts that appeal to the innovators and early adopters since their purchases bring the highest profits and their recommendations are key to fending off competition. B) Using the information finalized when positioning the brand, focus your marketing efforts on the product's specific psychological benefits, and the ways in which it appeals to the target market's core values. C) Treat the venture like a fad, so that sales spike quickly and the company recoups its investments while competition is weak. D) Due to the conspicuous consumption of the product, create brand equity by using a marketing campaign consistent with the target market's self-image. 35) 36) A key function of an effective supply chain is A) operating efficiently while protecting the environment. B) offering coordination between producers and retailers. C) providing exchanges that make goods available to consumers. D) moving products from manufacturers to suppliers. 36) 6 37) The goal of retail supply chains is to A) coordinate proper technology to monitor delivery of products. B) organize and transport product to various regions and distribution centers. C) develop proper distribution channels. D) create exchanges that ensure goods move from producer to consumer. 37) 38) Paul and Marcus were planning the launch of a new product line for their firm, and they both got enthusiastic about breaking out of the traditional selling they had been doing using wholesalers to sell directly to the consumers using their website. They had checked with everyone associated with the operations of the website, it was relatively easy to do. They needed to get approval from the CMO because the company would be taking on the new role of A) wholesaler disintermediation. B) supply chain manager. C) marketing intermediary. D) direct retailer. 38) 39) Sarah was always looking for bargains, and she was talking about the number of refurbished and reconditioned electronics on companies' website. Her friend Alexis, a marketing major, explained to her that this was one of the results of the growth of which process? A) Reverse supply chains B) Profit maximization C) Product-life extensions D) Recycling 39) 40) Way fair and Amazon use which type of supply chain when selling products? A) Indirect wholesale B) Indirect retail C) Direct wholesale D) Direct retail 40) 41) Under what condition is it best to include one or more wholesalers in the supply chain? A) When the producer is of small or medium size B) When customers do not need the product immediately C) When the producer needs absolute control over how its brands are merchandised D) When pre-purchase inspection is not important 41) 42) Stella McCartney partnered with Adidas to create a line of designer athletic footwear, which is sold at outlets like Nordstrom, Nieman Marcus, and Zappos.com. A savvy shopper may even find them on sale. This is an example of which type of distribution? A) Intensive B) Exclusive C) Inclusive D) Selective 42) 43) Gatorade is available in vending machines, convenience stores, grocery stores, sporting goods stores, and concession stands. Which type of distribution is exemplified in this scenario? A) Selective B) Intensive C) Inclusive D) Exclusive 43) 7 44) Marketers are concerned with the concept of retail fit, trying to answer the question about which store would be best for customers. Which of the following is NOT one of the dimensions of retail fit? A) Retailer reach B) Retailer type C) Retailer sustainability D) Retailer image 44) 45) ________ are physically much smaller in space. A) Department stores B) Specialty stores C) Discount stores D) Mass merchandisers 45) 46) Jordan had been working diligently to gather as much information as possible about the stores where his firm might put their new line of sports apparel. He was trying to assemble all the criteria he could think of to test each of the stores, but he was feeling more confused than he had been at the beginning. When he was explaining his frustration to Sam over coffee, Sam said, "You're going at the this the wrong way. There's only one question you need to answer." What is that one question? A) Which store is not already carrying the competitor's products? B) Which store's margins are the most attractive? C) Does the brand belong in a particular retail store? D) Which store will carry the merchandise without having to pay an allowance? 46) 47) Crystal saw a new brand of salsa being promoted online, and it was getting great reviews. She couldn't find it anywhere in her area, so she began a campaign using social media to convince grocery retailers to start carrying this new brand. This is an example of what kind of retail strategy? A) Word of mouth strategy B) Pull strategy C) Social-media action strategy D) Push strategy 47) 48) Suppose that Tech Yeah! is a large and hugely successful retailer in the United States. It carries a large and deep assortment of consumer electronics and appliances. Consumers report that Tech Yeah! prices are extremely competitive. Tech Yeah! is an example of which type of retailer? A) Mass merchandiser B) Department store C) Specialty store D) Category killer 48) 49) Victoria's Secret is an American clothing and lingerie retailer. Stores carry deep inventories, but brands are limited. Employees are expected to provide quality customer service. Victoria's Secret is an example of which type of retailer? A) Department store B) Category killer C) Specialty store D) Mass merchandiser 49) 50) Companies can threaten another supply chain member, it is called ________ power. A) reward B) brand C) coercive D) members 50) 8 51) What can be the end result of supply chain conflicts? They can A) resolve internal conflicts. B) produce positive results. C) lead to repaired relationships. D) create a better atmosphere. 51) 52) Liz was observing how her company dealt with specific retailers. With some, she noticed threats were common and issues were often determined by the party with the most resources–one or the other firm was coerced into acting in some way. In others, the nature of the relationships, even in issues of power, were handled, and it rarely came down to force. The kind of power seen in the latter relationships is known as A) reward power. B) expert power. C) referent power. D) contained power. 52) 53) What is the ultimate goal of a vertical marketing system? A) Satisfy the consumer B) Improve efficiency C) Develop long-term relationships D) Create supply chain efficiency 53) 54) Sherwin-Williams has more than 4,000 company-operated paint and coating stores in 120 countries. They do not franchise. This is an example of which type of vertical marketing system? A) Corporate VMS B) Contractual VMS C) Administered VMS D) Discrete VMS 54) 55) What is the best synthesis of discrete transactions and relational exchanges? A) They operate on high levels of trustworthiness. B) They represent traditional ways of doing business. C) They facilitate supply chain transactions with members who offer the best financial terms. D) They facilitate supply chain transactions by sharing information and exchanging resources. 55) 56) Price is a measure of the relative value of an item for both the customer and the ________. A) costs B) seller C) owner D) market characteristics 56) 57) Which of the four Ps is the most objective assessment of the value of a product? A) Promotion B) Place C) Product D) Price 57) 58) Which of the following is NOT one of the primary factors that influence price? A) Customer expectation B) Competition C) Marketers D) Company costs 58) 9 59) Unlike variable costs, which vary with the quantity sold, ________ costs don't change based on sales. A) reference B) product C) fixed D) marketing 59) 60) You buy a can of beer from a vendor at Wrigley Field in Chicago. You are startled by the $9.50 price tag since you are used to paying between $6.00 and $7.50 at Great American Ballpark in Cincinnati. Which of the following most likely describes your beer buying experience? A) Past experience created a reference price for stadium beer. B) Cultural differences influenced the stadium beer prices. C) Wrigley Field incurs higher fixed costs than does Great American Ballpark. D) Great American Ballpark is in the midst of a price war involving stadium beer. 60) 61) If you go to a fancy steak house and see a hamburger on the menu for $1.19 or if you go to a fast food restaurant and see a hamburger on the menu for $24.00, you'd think something was not right. Marketers understand you are comparing those posted menu prices to your own A) reference price. B) perceived cost. C) expected value. D) learned dining costs. 61) 62) Simon is reviewing the marketing department's budget and expenses, and some figures would not fit easily into fixed or variable costs categories. Paul gave him an easy way to distinguish between the two, which was to determine A) if the costs are linked to things that cannot be easily moved, then they are fixed expenses. B) if it is a cost associated with headquarters, then it is a fixed cost. C) if the cost can be assigned on a per unit basis, then it is a variable cost. D) if the costs are part of the marketing mix, then they are variable costs. 62) 63) Which of the following is defined as introducing a new product at a relatively low price with the intention of establishing a large market share before competitors can establish themselves? A) Skimming strategy B) Cost-based pricing C) Value-based pricing D) Penetration pricing 63) 64) Taking into consideration how the price of one product might influence the perception and price of another product is called price A) lining. B) calculating. C) prestige. D) strategy. 64) 10 65) Simon is the sales manager for a large resort. He had booked a block of rooms for a destination wedding at a package rate, he was able to charge the full rate for most customers, and he occasionally had to lower the price if he had unsold rooms as the time guests would arrive gets closer. The pricing strategy used was A) discriminatory pricing. B) opportunistic pricing. C) flexible pricing. D) dynamic pricing. 65) 66) Ming-tao was trying to figure out how much revenue he would have to bring in on a specific product to start earning a profit. He wanted to know the point at which the total sales at a given price level needed to produce zero profits, but cover costs. To determine the this, he needs to know the fixed costs and A) expected unit sales. B) markup. C) contribution margin. D) unit variable cost. 66) 67) Rick had solid information about the internal costs, volume and objectives he needed to set prices for the next year. Before he can set prices, he also needs to understand what is going on the market in general. He will examine the competitors' overall pricing, and he will need to research consumer demand for the products to know how the size of the total market and A) the demand for his product. B) the impact of changing demographics. C) the actual sales for the past three years. D) the competitors' break-even points. 67) 68) A large regional chain of office-supply stores has developed a practice of setting lower prices than small stores can offer. If the chain can force the small stores out of business, the chain will then return prices to the previous or higher levels. The practice is known as A) flexible pricing. B) predatory pricing. C) price discrimination. D) strategic discounting. 68) 69) You have a small landscaping business. You pay $5,000 per month to lease land, $2,500 per month in growing materials, and $1,000 per month on promotional materials. You also pay your landscapers $4,000 per month. What are your total fixed costs for the year? A) $150,000 B) $120,000 C) $126,000 D) $108,000 69) 70) You expect to sell 3,000 units of Product XYZ at $5 per unit. Your total variable costs are $1 per unit and your fixed costs are $4,000 per year. What is your expected profit (or loss) on the venture? A) $8,000 B) $15,000 C) ($34,000) D) ($10,000) 70) 11 71) You have 20 percent market share of an industry that sells 1,000 total units each year. You know that each unit contributes $2,000 to profits. If your fixed costs amount to $250,000, what is your profit or loss for the year? A) $1,750,000 B) $400,000 C) $650,000 D) $150,000 71) 72) You have a small business selling beaded bracelets. You charge $15 per bracelet and expect to sell 4,500 bracelets each year. You pay your one employee $1,500 per month. Other expenses include $500 per month for promotion and $6 per unit on craft materials. At what revenue amount will your business earn a profit of zero, but cover associated costs? A) $67,500 B) $40,000 C) $37,500 D) $24,000 72) 73) Debra is trying to determine the optimum level for advertising for the next year, and among the tools she will use, she will certainly include A) competitive response projections. B) break-even sales and volumes. C) profit and loss analysis. D) media quantity discounts. 73) 74) An electronics store advertises a flat-screen television for an astonishingly low price in its after-Thanksgiving sale advertisements. Though you are first in line on sale day, you learn that the store never had that model in stock. The salesperson offers to sell you a similar television at a discounted, though higher, price. What term describes your experience? A) Price discrimination B) Price-fixing C) Bait and switch D) Predatory pricing 74) 75) Maya is setting prices for her home remodeling business. Over the course of the year, there are times of peak activities–such as pre-holidays–and times when consumers were not as interested in home remodeling. This is an issue throughout the industry, so she knows it isn't just her business. After she determines a base price for the service, she could stimulate demand during the slow periods by using A) bundling. B) premium pricing. C) no-cost consultations. D) discounts. 75) 76) Effective promotion should include which of the following? A) A catchy slogan or jingle B) Advertising on television and in social media C) Multiple communication channels D) All of these 76) 77) A useful way to categorize promotion objectives is using A) cognitive variables. B) the Hierarchy of Effects model. C) affective variables. D) behavioral variables. 77) 12 78) Which of the following promotional objectives focuses on how promotions can impact a target market? A) Marketing objective B) Advertising objective C) Sales objective D) Communication objective 78) 79) Which is NOT a group tool? A) Advertising C) Sales promotions 79) B) Direct Marketing D) Public relations 80) Which of the following is the best example of an affective variable in the hierarchy of effects model? A) Diego recognizes that Product Z is a waste of money, but buys it anyway. B) Natalia has heard of Product X and its great benefits, but has yet to try it for herself. C) Justine favors Product W because it provides the best value for her money. D) Viktor purchases Product Y because it's what his family always used at home. 80) 81) Which of the following is the best example of a sales-related objective? A) A 15% increase in social media likes B) A 30% increase in target market product awareness C) A 20% increase in monthly store foot traffic D) A 10% increase in market share 81) 82) A consumer at Target sees a display of a new brand of hairspray marked 10% off if purchased during the debut period. The consumer passes on the purchase during that trip but wants to remember to buy the product when her current spray is empty. The promotional objective here is A) communication. B) sales behavioral. C) sales related. D) lagged. 82) 13 83) You work in marketing for a multinational fast-food restaurant that sells Mexican-American food. You recently oversaw the creation of a series of advertisements featuring a chihuahua acting as spokesperson for your chain. The ads have become a viral sensation. Marketing research has shown that consumers are more aware and knowledgeable of your restaurant than ever and say they like your products and prefer them to the competition. You view the ad campaign as a success, but company management does not. What is the most likely reason for your disagreement? A) You focused on communication objectives–and successfully conferred your information and meaning–but these assume sales will follow eventually. It is likely that your advertisements did not positively affect the firm's financial performance. B) You used corporate image advertising but created a negative image of the company by using a dog to promote food products for the human market. C) You focused on non-sales behavioral objectives–and successfully created a viral sensation–but the marketing research did not denote how those behaviors would eventually lead to sales. D) Your advertising execution style is viewed as outdated by Millennials and Gen Z, which make up the primary market for fast food restaurants. 83) 84) Which is a common guideline for creative advertisements? A) It must be detailed enough to be tested in advance. B) It must be attention getting. C) It must be capable of multiple executions. D) All of these 84) 85) Which of the following statements concerning public relations is true? A) It relates primarily to crisis management. B) The public image of a company has little impact on marketing efforts. C) It can be used as a promotional tool to build positive feelings about a brand. D) It focuses on the company's target market to the exclusion of other stakeholders. 85) 86) A celebrity's effectiveness as an endorser depends on A) the celebrity's brand and past success as an endorser. B) the celebrity's ability to have a high public profile. C) the celebrity's image fitting the product brand's positioning. D) the celebrity's following on social media. 86) 14 87) You work in marketing for a vacuum cleaner company and have been tasked with increasing sales to Millennials. Your boss suggests creating print and televised product advertisements that demonstrate the features and performance of the vacuums. What is the best way to respond? A) Agree with his plan in part, but instead of demonstrations, you suggest using a Millennial-like celebrity to endorse the product. B) Suggest using a direct marketing promotional tool like email or telemarketing to ensure reaching the specific target market Millennials. C) Suggest using advocacy advertising wherein you show the products, perhaps in use, and tout the company's involvement with animal rescue organizations. D) Gently explain to the boss that Millennials view traditional methods of promotion as outdated and would respond negatively. Such ads would be ineffective and a waste of money. 87) 88) Personal selling is primarily directed at which type of customers? A) Party planning accounts B) Business C) Geographically-concentrated target markets D) Stay-at-home parents 88) 89) How can coupons be most effectively utilized as part of a direct marketing campaign? A) They can be tied to individual consumer behavior. B) They can aid in new customer acquisition. C) They can improve generating trial on new product introductions. D) They can be included as part of a direct mail package to increase responsiveness. 89) 90) A salesperson needs to adjust their presentation when they encounter unexpected situations or questions from a client. This is an example of A) negotiations. B) persuasive adaptation. C) adaptive selling. D) omparative selling. 90) 91) The three components of customer connections are behavioral, social, and A) historical. B) psychological. C) technical. D) physical. 91) 92) Which of the following is NOT true about digital marketing? A) Marketers use digital marketing tactically, but the marketing strategy is separate. B) Digital marketing could include products that exist only in digital form. C) Digital marketing might combine both benefit delivery and communications. D) Some digital marketing does not use any of the internet platforms. 92) 15 93) ________ are advertisements placed in a limited space on a website. A) Banner advertisements B) Product placements C) Blogs D) Videos 93) 94) Psychologists use the term polysynchronous consumption; when marketers use the term, they are referring to the situation when consumers A) use the product often. B) buy multiple items of a product for consumption. C) purchase different brands of the same product. D) think of the product more frequently. 94) 95) Digital media provides the means through which brands and customers connect with one another. Which are the techniques by which marketers use digital media to build these connections? A) Digital media tools B) Earned media C) Integrated marketing communications D) SEO and SEM 95) 96) When customers create and post online reviews of products, they are involved in which of the following marketing-related process? A) Guerilla marketing B) Co-creation C) Brand advocacy D) Socialization 96) 97) Lululemon's customers feel extremely connected to the yoga-wear brand through sharing encouraging fitness messages with others on Twitter, by attending fitness classes at company studios, and by visiting company "fuel bars." Of the following, which term best describes this example? A) Mobile marketing B) Polysynchronous consumption C) Social proof D) Lifestyle brand 97) 98) Which is true concerning omnichannel marketing? A) It integrates various communication channels to accommodate the consumer's interests and desires. B) It is basically unrelated to digital media. C) It is more appropriate for services than products. D) It relies exclusively on digital media for delivery. 98) 16 99) Which is the BEST approach for a marketer to follow in regard to brand communities? A) They should not attempt to control over govern the communities. B) They should maintain control over the communities to ensure all members are treated fairly. C) They should not monitor community activities to maintain neutrality. D) They should not encourage their formation. 99) 100) Kathy had been asked to develop a broad strategy to capitalize on social media platforms. She has included social networking sites, social publishing sites, online review sites, and bookmarking sites. What platform category should she also include? A) The company website B) Interest-based networks C) E-commerce sites D) Social utilities 100) 101) Marketers need to consider the marketing effort as a whole when considering marketing through social media. Which of the following concepts or tools from the large marketing effort would be most meaningful in developing the social media strategy? A) Pricing analyses B) Diffusion of innovation C) Product life cycle D) Integrated marketing communications 101) 102) You manage the marketing for a mom-and-pop grocery store in your community. You communicate primarily through a weekly circular advertisement and via Facebook. The store's strategy is to provide convenience, a sense of community, and a variety of products at reasonable prices. You feel you convey this in your simple visual content. This morning, you were startled to read a comment from an extremely disgruntled customer about your "price-gouging practices." Several other customers responded –both positively and negatively. What is the best way to move forward? A) Respond directly to the dissatisfied customer, which will be observed by your other Facebook followers. Then, post messages about both everyday low prices and sale prices offered at your store, especially when those prices meet or beat prices at large chains. B) Ignore the dissatisfied customer and let the conversation play out among your Facebook followers. It is better to say nothing than to annoy a portion of your followers. Losing that one customer might actually be best to continue that communal feeling at the store. C) Ignore the dissatisfied customer and let the conversation play out among your Facebook followers. Then, post messages about the convenience of your location, your knowledgeable staff, and your friendly atmosphere in an attempt to focus the conversation away from prices. D) Respond directly to the dissatisfied customer, which will be observed by your other Facebook followers. Gently remind him of the company's marketing strategy. Note that you cannot always compete with the grocery chains, but you set prices as low as you can. 102) 17 103) A well-designed company website A) offers different messages than those on the company's social media platforms. B) includes automated graphics and visual elements designed specifically to impress visitors. C) optimizes various search engines. D) provides better features and functionality to visitors using mobile devices, than those for visitors using desktops or laptops. 103) 104) Nikoli receives the following on his smartphone: "You are within 500 feet of one of our stores. Stop in for 20% off the product of your choice. And don't forget to use your 1,000 loyalty points!" This is an example of a mobile A) push notification. B) app. C) display ad. D) tracking trend. 104) 105) What is true regarding search engines' importance to digital marketing? A) There is an massive impact of Amazon upon general product searches. B) There is a battle among competitive brands to be near the top of the list when a search term related to the brands is entered. C) There is a trend toward accessing information through mobile devices. D) There is a battle between Google and other search engines for users. 105) 106) Why is it necessary that data relating to tactical outcomes be readily available? A) Because they normally relate to qualitative data. B) Because the data is typically, and preferably, external. C) Tactical outcomes typically have short time horizons. D) All of these. 106) 107) Research has shown that Millennials are influenced more by information on social networking sites than by advertisements. This is why a popular wedding gown company asks brides to post wedding day photos on its Instagram page and to share their experiences with the product. This exemplifies which step of the process for measuring marketing effectiveness? A) Execute tactics B) Collect data C) Select appropriate metrics D) Set investment level 107) 108) Which metric do marketing managers rely on most heavily to gauge overall success? A) Return on investment B) Relative market share C) Return on marketing investment D) Market share 108) 18 109) Company Z sells $2 million dollars of Brand A each year in a category that sells $20 million dollars per year. What is Company Z's market share in that category? A) 9% B) 10% C) 1% D) Sales must first be converted into units before calculation. 109) 110) Company Y invested $10 million in the manufacture and marketing of Product B whose 2,000,000 users have produced a net profit of $1,000,000. What is the return on investment for Product B? A) 2% B) 10% C) 20% D) 1% 110) 111) Product ABC earns a gross profit of $12 million with marketing expenses of $10 million. What is the return on marketing investment for Product ABC? A) 30% B) 67% C) 80% D) 20% 111) 112) Which gives the percentage of a particular target group that purchases a brand for the first time? A) Brand growth rate B) Market penetration rate C) Brand development index D) Brand trial rate 112) 113) Company OLD estimates that 50,000 people from a target group of 10 million tried Product NEW last year. What is the brand trial rate for Product NEW? A) 50% B).05% C).5% D) 5% 113) 114) Market penetration is the percentage of the total target market to A) members of the target market who are aware of the product. B) members of the target market who have switched from a competitive brand. C) members of the target market who have tried the product at least once. D) members of the target market who are purchasing on a continuous (at least one re-buy) basis. 114) 115) Company X has a target population of 1,000,000 for Brand C. It has determined that 100,000 people have tried Brand C for the first time and another 100,000 have tried Product C more than once. What is the market penetration rate for Brand C? A) 20% B) 10% C) 1% D) 5% 115) 116) Company W sells 20,000 units of Brand D this month, which is twice what it sold last month. What is the brand growth rate of Product D? A) 100% B) 1% C) 10% D) 30% 116) 19 117) Which measures the number of times the inventory for a product is completely replenished in a given period? A) Stockout days B) Stockout rate C) Stockturn rate D) Stock metric 117) 118) Which of the following best describes price elasticity? A) It measures how responsive people are to price changes. B) It provides a percentage of products sold over time. C) It is a ratio of discounted products to full-price products sold. D) It evaluates the quality of products sold over a period of time. 118) 119) Company V operates 100 stores. During a recent 30-day period, Product E was out of stock at 20 of those stores for 15 days. Which of the following is the correct measurement of stockout days for Product E? A) 80% B) 15% C) 20% D) 50% 119) 120) You are the brand manager for Product A. You have enjoyed relatively stable market conditions until a competitor introduced Product B. You need to decide whether or not to compete based on price. Historical data shows you that each week, retailer XYZ sells 1,000 units of Product A for $5. When the price was lowered to $4, weekly sales increased to 1,200 units. What is the best course of action based on metrics? A) Since price elasticity equals 0.8, demand for Product A is relatively inelastic, which means buying behavior is relatively unaffected by changes in price. You should pursue other aspects of the marketing mix. B) Since price elasticity equals 8, demand for Product A is relatively inelastic, which means buying behavior is relatively unaffected by changes in price. You should increase the price of Product A to increase sales and profits for the company. C) Since price elasticity equals 1, changes in price do not lead to changes in demand. You should pursue other aspects of the marketing mix. D) Since price elasticity equals 1.25, demand is relatively elastic, which means price is a potentially effective competitive tool. You should pursue a price-war strategy while continuing to monitor relevant metrics. 120) 121) Which of the following best describes distribution intensity? A) The level of competition seeking entry to the outlet B) The volume of sales relative to shelf space provided for products C) The percentage of sales a brand generates D) The number of retail outlets that carry a particular brand 121) 122) A metric that can be used to assess distribution intensity is A) stockout rate. B) category outlet rate. C) category rate. D) category volume. 122) 20 123) Company O sells Product K for $5 and achieves weekly sales of 100 units. When the price is lowed to $4, weekly sales increase to 200 units. What is the measure of price elasticity? A) 1 B) 2 C) 5 D) 25 123) 124) Retailer K operates 1200 stores, each carrying SKU P. During July, 300 stores reported stockouts of SKU P. Calculate the stockout rate. A) 30% B) 40% C) 33% D) 25% 124) 125) Company L identifies 1,500 retail outlets frequented by members of its target market. Of those, 750 carry Company L's brands. What is the relevant outlet rate? A) 30% B) 20% C) 40% D) 50% 125) 126) Which measures schedule intensity and is the product of reach and average frequency? A) Gross impressions B) Cost-per-thousand C) Gross ratings points D) Average frequency 126) 127) What are the components of schedule intensity? A) Timing and scheduling B) Impression and ratings C) Exposure and impressions D) Reach and frequency 127) 128) Which are the two components of schedule intensity that give an indication of how heavy a brand's media exposure is? A) Gross impressions and frequency B) Reach and frequency C) Gross ratings points and targeted ratings points D) Gross impressions and targeted impressions 128) 129) Program WOW attracts 10% of a target market of 1 million. An advertiser buys 10 commercials. Calculate gross impressions. A) 1,000 B) 1,000,000 C) 10,000 D) 10,000,000 129) 130) Which indicates browser contacts with a website? A) Impressions B) Visitors C) Hits 130) D) Page views 131) Which indicates an estimate of the percentage of visitors to a site who navigate away quickly without venturing beyond the landing page? A) Clickthrough rate B) Visitor rate C) Abandonment rate D) Bounce rate 21 131) 132) Which of the following statements most accurately describes participation-related metrics? A) Hit and page-view metrics require complicated calculations. B) Marketers who pay careful attention to abandonment rates often win back visitors who earlier abandoned the site. C) Digital media metrics have the advantage of using nearly real-time data. D) Facebook Insights provides data and information about all website traffic, including social media sites. 132) 133) Company Q's website had 100 visitors. Of those, 40 people attempted to place an order, but were thwarted by an error message. They navigated away and left the item(s) in their virtual shopping carts. What is the abandonment rate for Company Q's site? A) 25% B) 4% C) 60% D) 40% 133) 134) The connections between the elements of the 5 Ps and the corresponding 5 Cs are known as A) networks. B) correlations. C) core linkages. D) the marketing mix. 134) 135) The first criterion a marketer should consider when evaluating a marketing mix is A) cost. B) profitability. C) consistency. D) effectiveness. 135) 136) In the marketing mix, the term that describes how a marketer's decisions should affect customer perceptions of value is A) core competency. B) unique selling proposition. C) core linkages. D) positioning. 136) 137) Joel was discussing the launch of a new product with Lisa, and he knew it was going to have trouble meeting the launch date. He told Lisa, "We haven't got the place part of the marketing mix finished yet. Let's just roll with the rest of the plan and finish place after the launch." What's the problem with Joel's idea? A) Place is more important than price, and they should focus more on place. B) The firm could expect problems with retailers including channel conflict. C) Joel needs to decide before launch whether to use online or brick-and-mortar outlets. D) All five elements of the mix work together as a bundle. 137) 138) When evaluating the effectiveness of a marketing mix, one must first A) determine whether the main decision areas of the mix are consistent. B) research the target market. C) study the mixes used by competitors for similar products. D) gauge the product's momentum in its life cycle. 138) 22 139) Which of the following statements most accurately describes the integration of marketing mix core linkages? A) Each marketing mix P affects customer perceptions of only one C. B) Effective decisions made in one area of the mix do not affect customer perceptions across the mix. C) Marketers tend to make decisions about mix elements independently. D) Marketing plans are successful only if the bundle of mix decisions is consistently done well. 139) 140) Core linkages are those connections between each of the corresponding 5 Ps and 5 Cs, and the linkages among one of the 5 Ps (e.g., product), and the remaining four of the 5 Cs are known as ________ linkages. A) subsidiary B) sustaining C) secondary D) supporting 140) 141) Supporting linkages are those that A) affect customer perceptions that are not core linkages. B) are optional. C) override the core elements by supporting the marketing objectives. D) amplify the value of specific core linkages. 141) 142) Price bundling is an example of which linkage in the marketing mix? A) Price-convenience B) Price-customer benefits C) Price-communications D) Price-connections 142) 143) You probably have retailers where you feel comfortable, where you go to get advice, and where you go to see the people who work there. Unless it's a company store, the manufacturer of products has little direct influence on why you shop there. From the perspective of the manufacturer, the selection of a retailer will be place, but what is going on from the customer's point of view? A) Communication B) Connections C) Convenience D) Customer Benefit 143) 144) Some companies develop how-to videos or information on how to purchase a product effectively, and while these reduce the risks that customers may perceive, this effort fits into the promotion-customer cost linkage by A) using special one-time promotions to reduce customers' costs. B) explaining to customers the ways other have used the product at their own costs. C) creating special price reductions if the customers use the materials. D) reducing search costs which must be included in the total price customers pay. 144) 23 145) By carefully selecting the stores and outlets to carry a product, a marketer can add value to the customer purchase and usage experience. Within the marketing mix, marketers will address this element of value creation though which supporting linkage? A) Place-convenience B) Place-customer value C) Place-connections D) Place-customer benefits 145) 146) Maureen was developing a marketing mix for the small household appliances her firm manufactures. She wants to get customers to buy more than one appliance from her line, and she is exploring the price-connections linkage to reach that goal. She has the option of offering free accessories or services, but that does not seem like a good fit. Which of the following would be another good way to address the linkage? A) Work with retailers to set competitive prices. B) Encourage group purchases or group shopping. C) Use price bundling to encourage purchases of more than one appliance at a time. D) Establish a dedicated page on the firm's website. 146) 147) Which of the following is NOT one of the options a marketer would logically consider as part of the promotion-customer cost linkage? A) Offer information on how to purchase B) Offer discounts C) Offer information on costs D) Offer price reductions 147) 148) In a supporting role, which of the following producer elements links most strongly to communication? A) Participation B) Product C) Price D) Place 148) 149) A snack food company holds an annual competition inviting customers to suggest new potato chip flavors. It then produces chips flavored with the top 10 ideas and asks customers to vote on their favorites. The company is encouraging participation; customers are A) creating efficiency in sharing ideas. B) influencing convenience by creating tasty snack foods. C) affecting their cost perspectives with the prospect of winning money. D) co-creating value and benefiting from fun. 149) 150) You want a new set of wireless headphones. They are sold at a variety of locations, but you choose the location with the most generous return policy–in case you are displeased with your purchase. The headphone manufacturer made the place decisions. Your decision was based on A) connections. B) customer cost. C) customer benefits. D) communication. 150) 24 151) Considering both core and supporting linkages can be overwhelming with the many linkages and many options with each of the linkages. What is the BEST way to select those that will become integral parts of the marketing mix? A) Determine the nature of the product B) Determine the strengths and weaknesses of the marketer(s) developing the mix C) Determine what is important to the customer D) Determine the least expensive with the most possible effects 151) 152) In the final stages of developing the marketing mix, the marketer must carefully examine each of the linkages one last time to ensure that A) as many linkages as possible have been included. B) the producer's focus is more significant than customers' perspectives as the producers have to do the work. C) inconsistencies are identified and eliminated. D) risks have been eliminated. 152) 153) Nick's marketing team has just spent several days brainstorming and exploring the core and supporting linkages for the new product they were launching. One of the junior members of the team asked, "How can we make sense of this? We can't focus on all of these." Nick replied that they needed to go back to the work done before the marketing mix considerations and begin with A) determining which linkages would offer the greatest net profit. B) comparing the linkages with other products in the firm's offerings. C) analyzing how the competitors are making linkages. D) focusing on the core linkages that best fit the target market. 153) 154) Before beginning the three-step process of creating the final marketing mix solution, it is most critical that marketers fully understand A) the company's overall marketing strategy. B) the mass market and competitive influences. C) the external marketing environment. D) what targeted customers need, want, and value in an exchange. 154) 25 155) Ji-woo and her marketing team are reviewing supporting marketing linkages to arrive at a final marketing mix. She senses that team members are becoming overwhelmed with all the information and potential linkages. What is the best way for Ji-woo to keep her team on task? A) Suggest that you begin by eliminating any supporting linkages that are causing issues with the team and then focus on those that make the most sense. B) Remind them that their job at this step is to determine which supporting linkages support the core elements and rank them in order. C) Remind them that supporting linkages are essentially unintended connections, which means they are less important than the core linkages already set in place. D) Suggest that struggling team members focus only on core linkages and remaining team members can power through supporting linkage review. 26 155) Answer Key Testname: PRACTICE QUESTIONS 1) C 2) D 3) D 4) B 5) D 6) D 7) B 8) D 9) B 10) B 11) D 12) B 13) A 14) C 15) C 16) B 17) B 18) C 19) C 20) D 21) D 22) C 23) C 24) B 25) A 26) C 27) C 28) A 29) C 30) C 31) A 32) B 33) B 34) C 35) B 36) C 37) D 38) D 39) A 40) D 41) A 42) D 27 Answer Key Testname: PRACTICE QUESTIONS 43) B 44) C 45) B 46) C 47) B 48) D 49) C 50) C 51) B 52) A 53) A 54) A 55) B 56) B 57) D 58) C 59) C 60) A 61) A 62) C 63) D 64) A 65) D 66) C 67) A 68) B 69) A 70) A 71) D 72) B 73) B 74) C 75) D 76) C 77) B 78) D 79) B 80) C 81) D 82) D 83) A 84) D 28 Answer Key Testname: PRACTICE QUESTIONS 85) C 86) C 87) C 88) B 89) A 90) C 91) B 92) A 93) A 94) D 95) A 96) B 97) D 98) A 99) A 100) B 101) D 102) D 103) C 104) A 105) B 106) C 107) A 108) D 109) B 110) B 111) D 112) D 113) C 114) C 115) A 116) A 117) C 118) A 119) D 120) A 121) D 122) D 123) C 124) D 125) D 126) C 29 Answer Key Testname: PRACTICE QUESTIONS 127) D 128) B 129) B 130) C 131) D 132) C 133) D 134) C 135) C 136) C 137) D 138) A 139) D 140) D 141) A 142) A 143) B 144) D 145) D 146) B 147) C 148) C 149) D 150) B 151) C 152) C 153) D 154) D 155) B 30