BUS 346 – midterm 2 ch 11-19

question

Which of the following is NOT part of the “actual product” level of the product offer? a. brand name b. quality c. features d. product warranty e. design
answer

d. product warranty
question

If many consumers in the marketplace are familiar with a brand and what it stands for and have an opinion about the brand, the brand has considerable __________ a. equity. b. extension. c. integration. d. awareness. e. co-branding.
answer

d. awareness.
question

For a major university, undergraduate studies, graduate studies, and professional programs would be __________ within the university’s product mix. a. co-brands b. family brands c. brand associations d. private label brands e. product lines
answer

e. product lines
question

In a competitive market, perceived value is determined by consumers mostly _________. a. by weighing primary versus secondary benefits. b. by quantitative analysis of brand personalities. c. in relationship to the value of competitors’ offerings. d. through brand association and brand licensing. e. by trying out different products.
answer

c. in relationship to the value of competitors’ offerings.
question

Some credit cards provide free liability insurance, funded by the bank issuing the card, when a customer pays for a rental car using the card. This extra insurance is an example of ____________. a. the core value. b. the product position. c. an associated service. d. the actual product. e. product style.
answer

c. an associated service.
question

Brand __________ is the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service. a. equity b. licensing c. positioning d. solvency e. association
answer

a. equity
question

The basic reason manufacturers spend time and money building their own brands is to ___________. a. build brand equity. b. maximize product line depth. c. create brand awareness. d. create positioning possibilities for their generic product lines. e. offset the power of private label manufacturers.
answer

a. build brand equity.
question

Toyota, a well-established, reputable brand, recently introduced a new line of vehicles under the Scion brand, targeted at young car buyers. Toyota probably used the new brand to ___________. a. reinforce the Toyota brand image. b. lower advertising costs. c. appeal to a different market segment. d. exploit brand loyalty to Toyota. e. lower product development costs.
answer

c. appeal to a different market segment.
question

Salina is working to create greater brand awareness for her company’s new line of personal digital assistants. To increase brand awareness, the LEAST important information that should be included in promotions is ____________. a. the product history. b. the slogan. c. the brand name. d. the packaging. e. the logo.
answer

a. the product history.
question

The value of a brand is often calculated by assessing the ___________. a. average product line depth. b. effect of brand dilution if it occurred. c. difference between brand equity and brand liability. d. corporate profitability divided by the monthly brand earnings. e. earning potential of the brand over the next 12 months.
answer

e. earning potential of the brand over the next 12 months.
question

Lionel Smith Ltd. is a traditional men’s clothing store. Every fall the owner sends an embossed invitation (much like a wedding invitation) to his regular customers, inviting them to a private reception showing the new fall line of clothes. For Lionel Smith Ltd., one of the benefits of having established a loyal customer base is ____________. a. recognition through industry awards. b. lower marketing costs associated with reaching loyal customers. c. increased price sensitivity among loyal customers. d. less need for concern about product quality. e. that he can be less concerned about competitors’ actions.
answer

e. that he can be less concerned about competitors’ actions.
question

In the case of Band-Aid adhesive bandages, the brand name has ______________. a. grown through private label branding. b. distinctive brand substitutability. c. successfully employed private label branding. d. avoided brand extensions. e. become synonymous with the product itself.
answer

e. become synonymous with the product itself.
question

________ is another term for private-label brands. a. Off brands b. Store brands c. Manufacturer brands d. National brands e. Experiential brands
answer

b. Store brands
question

__________ occurs when the brand extension adversely affects consumer perceptions about the attributes of the core brand. a. Brand collusion b. Brand personality destruction c. Brand dilution d. Brand extraction e. Corporate branding
answer

c. Brand dilution
question

When Procter & Gamble added teeth whitening products under the Crest brand, the firm was engaged in ___________. a. brand association. b. brand licensing. c. perceived value branding. d. corporate branding. e. brand extension.
answer

e. brand extension.
question

One of the major tools used by marketers to meet the needs of loyal customers is ___________. a. GATT. b. IMF. c. CRM. d. SKU. e. PDQ.
answer

c. CRM.
question

Marketers spend billions of dollars annually attempting to build effective brands. One basic benefit of a brand is that it ___________. a. offers consumers promotional parity. b. provides a way for a firm to differentiate its product offerings from competitors. c. allows manufacturers to capitalize on promotional expenditures. d. creates a basis for effective packaging. e. reduces the need for product line depth.
answer

b. provides a way for a firm to differentiate its product offerings from competitors.
question

Which of the following scenarios is NOT a reason a firm would eliminate an item within a product line? a. The firm must respond to evolving markets. b. The firm decided to refocus marketing efforts elsewhere. c. The product being eliminated is unprofitable. d. The product undermined its own brand. e. The firm has decided to capture new markets.
answer

e. The firm has decided to capture new markets.
question

Firms that use the same brand name for new products can spend relatively less on marketing costs for the new product because __________. a. well-known brands are less likely to introduce brand extensions. b. consumer loyalty can be bought for less now compared to the past. c. brands protect corporate copyrights. d. brand equity can only be obtained by means of product line depth. e. people already know what the brand means.
answer

e. people already know what the brand means.
question

A product is __________ that can be offered through a voluntary marketing exchange. a. the combination of a firm’s marketing mix b. a tangible item c. the brand associations d. anything of value to consumers e. the category depth
answer

d. anything of value to consumers
question

Brands can be owned by ___________. a. manufacturers only. b. wholesalers and retailers only. c. only private label generic retailers. d. retailers only. e. any firm in the supply chain.
answer

e. any firm in the supply chain.
question

Shell MasterCard, created cooperatively by Shell Oil Company and Master Card, is an example of __________. a. brand dilution. b. co-branding. c. a generic brand. d. brand extraction. e. brand collusion.
answer

b. co-branding.
question

For a brand name to be effective, it needs to be __________. a. generic, so it can be applied to as many products as possible. b. easy for consumers to recognize and remember. c. a visual image containing human characters. d. a catchy, tongue-twisting phrase. e. associated with a sports or movie superstar.
answer

b. easy for consumers to recognize and remember.
question

Some products may stay comfortably in the maturity phase of the product life cycle until a new product emerges to replace them. An example of such a mature product is ___________. a. the VCR. b. smartphones. c. None of these. No product can stay in the maturity phase and survive for very long. d. refrigerators. e. e-books.
answer

d. refrigerators.
question

Which of the following would NOT be part of the launch of a new product? a. educational efforts for complex or conceptually new products b. technical support staff for technical products c. determining the price for the product d. starting to make preliminary decisions about the target market e. incentives for distributors
answer

d. starting to make preliminary decisions about the target market
question

The diffusion of innovation theory focuses on _________. a. the relationship between pioneer brands and imitators. b. the way a product moves through the product life cycle. c. the psychological traits of innovators. d. the rate at which consumers are likely to adopt a new product or service. e. the geographic boundaries of innovation.
answer

d. the rate at which consumers are likely to adopt a new product or service.
question

The process by which the use of a new product or service spreads throughout a market group is referred to as __________. a. the product life cycle. b. diffusion of innovation. c. lead user dispersion. d. new product introduction. e. product development diffusion.
answer

b. diffusion of innovation.
question

For new product marketers, early adopters are important because they tend to be _________. a. fond of prototypes. b. alpha testing enthusiasts. c. opinion leaders. d. few in number. e. the first to adopt a new product.
answer

c. opinion leaders.
question

Samples are often used for new products when __________ will influence the diffusion of the product. a. complexity b. compatibility c. trialability d. relative advantage e. observability
answer

c. trialability
question

Firms can measure the success of a new product by all of the following factors EXCEPT a. satisfaction of its technical requirements. b. satisfactory sales and profits. c. fewer competitors in the market. d. satisfactory performance. e. customer acceptance.
answer

c. fewer competitors in the market.
question

Whenever Donald considers upgrading his personal computer system, he consults with Jeremy, a knowledgeable friend who always has the newest technology. For Donald, Jeremy is a(n) __________ in the diffusion of innovation curve. a. early adopters b. laggard c. early majority d. innovator e. late majority
answer

d. innovator
question

Before Segway manufactured its two-wheeled people movers, it built a prototype and had staff engineers test it for performance and stability. At this stage, Segway was involved in __________. a. product launch. b. alpha testing. c. concept testing. d. test marketing. e. beta testing.
answer

b. alpha testing.
question

During the __________ stage of the product life cycle, there are few but an increasing number of competitors. a. decline b. maturity c. innovation d. growth e. introduction
answer

d. growth
question

Dopson’s Hardware was in bad financial shape. It owed so much money that vendors put the store on a cash-only delivery basis. As a result, the store had a dwindling inventory of goods to sell. Whenever a customer asked about an unavailable item, the owner directed the sales staff to say that it was on backorder and would be in stock next week. When the customer returned, the item was still unavailable. The owner’s policy created a(n) __________ gap. a. empowerment b. communication c. knowledge d. standards e. tangibility
answer

b. communication
question

Bank of America uses a complex polling system coupled with a customer response measurement system to assess consumers’ responses to new products and services. Bank of America is using a(n) __________ program to improve service quality and service offerings. a. standards analysis b. zone of tolerance c. voice-of-customer d. quality gap analysis e. empowerment
answer

c. voice-of-customer
question

By changing a standard from “be nice to customers” to “greet every customer, and if possible by name,” a services marketing manager has created a(n) __________ goal. a. measurable b. inseparable c. invisible d. insurmountable e. empowerment
answer

a. measurable
question

Medical services, assisted living care, and active senior travel are all examples of __________. a. household maintenance activities that people increasingly pay others to perform. b. services shifted abroad because costs are lower in developing countries. c. the price elasticity effect on services demand. d. services an aging population will increase their demand for. e. the ability of empowerment to create tangible service products.
answer

d. services an aging population will increase their demand for.
question

__________ refers to the perceived fairness of the process with which a firm handles customer complaints. a. Intangible fairness b. Procedural fairness c. Empowerment fairness d. Service fairness e. Distributive fairness
answer

b. Procedural fairness
question

__________ price fixing occurs when competitors collude to control prices, and __________ price fixing occurs within a marketing channel to control prices passed on to consumers. a. General; specific b. Industry; supply chain c. Widespread; integrated d. Horizontal; vertical e. Strategic; tactical
answer

d. Horizontal; vertical
question

One problem in relying on price elasticity and demand curves when setting prices is that ____________. a. the underlying ideas of the demand curve and elasticity are less relevant in the modern economy. b. only economists can properly analyze demand curves and set prices using this tool. c. marketing split from economics over the ideas of demand and elasticity. d. competitors can construct the same demand curves, so there is no advantage in using them. e. the way a product or service is marketed can have a profound impact on price elasticity.
answer

e. the way a product or service is marketed can have a profound impact on price elasticity.
question

Marketers advertising an artificially high regular price are unethically attempting to influence consumers’__________ perceptions. a. seasonal price b. fixed price c. reference price d. leader price e. cost-based price
answer

c. reference price
question

In _______________, many firms provide similar products that are considered substitutes for each other. a. monopolistic competition b. a duopoly c. oligopolistic competition d. a monopoly e. pure competition
answer

e. pure competition
question

Production of the DeLorean car, made famous in the film Back to the Future, never got above 25,000 units during its lifetime. Automobile industry analysts estimate that production of this car needed to reach around 300,000 units to achieve the __________, a decrease in unit cost as product volume increases. a. improvement value effect b. experience curve effect c. slotting allowance benefit d. price fixing return e. cumulative bundling benefit
answer

b. experience curve effect
question

In a(n) __________ marketing channel, none of the participants has any control over the others. a. corporate b. cooperative c. contractual d. conventional e. administered
answer

d. conventional
question

Merchandise that arrives in the delivery truck ready to be sold is considered a. quick-response packaged. b. ahead of the curve. c. synthesized. d. lead time synchronized. e. floor-ready.
answer

e. floor-ready.
question

Dawn works for a firm that buys products directly from the manufacturer and sells them to retailers, who then sell the products to consumers. Dawn works for a a. manufacturer’s representative. b. wholesaler. c. store representative. d. retail distribution center. e. retail jobber.
answer

b. wholesaler.
question

When Cynthia’s Boutique receives dresses, they already have price tags and are on hangers. Cynthia’s Boutique receives __________ merchandise. a. just-in-time b. floor-ready c. quick response d. repurposed e. horizontal channel
answer

b. floor-ready
question

Especially in the fashion industry where styles and trends change rapidly, a quick response system can a. allow retailers to better forecast long-term demand. b. reduce logistical overlay. c. align deliveries more closely with actual sales. d. allow manufacturers to introduce unpopular styles and still be successful. e. increase cross-docking promotional effectiveness.
answer

c. align deliveries more closely with actual sales.
question

Students of marketing often overlook or underestimate the importance of place in the marketing mix simply because a. no one is directly in charge of place decisions. b. the product itself is so much more important. c. it occurs after making pricing decisions. d. it happens behind the scenes. e. it conflicts with promotion.
answer

d. it happens behind the scenes.
question

Ted is glad his company finally converted to an RFID system. Now, he no longer needs to go through all the new goods to make sure what they ordered was what they received. Ted is responsible for __________ in his company. a. quick response b. receiving c. dispatching d. checking e. JIT
answer

d. checking
question

TT Toys manufactures toys. The company recently started buying paint for its toys from a Chinese firm. This Chinese company is part of TT Toys’ a. distribution center. b. CFPR. c. corporate vertical marketing system. d. voluntary chain. e. supply chain.
answer

e. supply chain.
question

In retailing, a just-in-time delivery system is called a _____________ system. a. cross-docking b. UPC c. lead time d. quick response e. CPFR
answer

d. quick response
question

The local auto supply store gets merchandise delivered to it by its manufacturers as soon as it has a need, reducing stockouts with minimal inventory. This demonstrates the concept of a. a push marketing strategy. b. manufacturer-managed distribution. c. cross-docking. d. data warehousing. e. vendor-managed inventory.
answer

e. vendor-managed inventory.
question

Dawn works for a firm that buys products directly from the manufacturer and sells them to retailers, who then sell the products to consumers. Dawn works for a a. manufacturer’s representative. b. retail jobber. c. retail distribution center. d. wholesaler. e. store representative.
answer

d. wholesaler.
question

At the BMW plant in Spartanburg, South Carolina, suppliers deliver parts every four hours when the plant is in operation and are responsible for removing any packaging or pallets used to deliver their products. BMW uses a ______________ inventory control system. a. UPC b. cross-docking c. JIT d. CPFR e. lead time
answer

c. JIT
question

When supply chain members view their goals and ultimate success as intricately linked, or ________, they develop deeper long-term relationships. a. administered b. horizontal c. vertical d. conventional e. interdependent
answer

e. interdependent
question

Flora is frustrated with her company’s supply chain management information system. She wants to be able to receive sales data, initiate purchase orders, send and receive invoices, and receive returned merchandise documentation. Flora needs a(n) a. cross-docking exchange. b. floor-ready bundling system. c. electronic data interchange system. d. vertical conflict reduction system. e. radio frequency identification system.
answer

c. electronic data interchange system.
question

In addition to merchandise and payments, information flows throughout a supply chain. Which of the following is NOT a good characterization of the flow of information in a supply chain? a. Distribution centers will send and receive information from stores and manufacturers. b. Buyers will send and receive information from stores and manufacturers. c. A manufacturer will send and receive information from buyers, stores, and distribution centers. d. Stores will send and receive information from manufacturers, buyers, distribution centers, and customers. e. Customers will send and receive information from stores and manufacturers.
answer

e. Customers will send and receive information from stores and manufacturers.
question

Ted is glad his company finally converted to an RFID system. Now, he no longer needs to go through all the new goods to make sure what they ordered was what they received. Ted is responsible for __________ in his company. a. receiving b. dispatching c. quick response d. JIT e. checking
answer

e. checking
question

Franchising involves a(n) __________ vertical marketing system. a. conventional b. cooperative c. corporate d. contractual e. administered
answer

d. contractual
question

__________ is when vendors ship merchandise prepackaged in the quantity required for each store to the distribution center. a. Cross-docking b. Traditional shipping c. Horizontal merchandising d. Vertical merchandising e. Combination warehousing
answer

a. Cross-docking
question

Manufacturers use wholesalers and retailers because a. wholesalers control retailers. b. most manufacturers are not familiar with logistics. c. they do not cost much. d. they create value for customers through convenience and cost savings. e. they have no other choice.
answer

d. they create value for customers through convenience and cost savings.
question

When Cynthia’s Boutique receives dresses, they already have price tags and are on hangers. Cynthia’s Boutique receives __________ merchandise. a. horizontal channel b. quick response c. floor-ready d. just-in-time e. repurposed
answer

c. floor-ready
question

In marketing’s four Ps, place refers to all activities required to get a. consumers to the destination. b. access to the physical space within a retail establishment. c. demand chain management functionally operable. d. the right products to the right customer when that customer wants it. e. the design of the terminal location for products accomplished
answer

d. the right products to the right customer when that customer wants it.
question

________ power is based on getting a channel member to behave in a certain way because of a contractual agreement. a. Legitimate b. Coercive c. Reward d. Expertise e. Referent
answer

a. Legitimate
question

With a _______ marketing strategy, there is less likelihood of being overstocked or out of stock because the store orders merchandise as needed on the basis of consumer demand. a. push b. consignment c. pull d. vendor-managed e. manufacturer-managed
answer

c. pull
question

______________ systems are designed to deliver smaller shipments of merchandise on a more frequent basis to retailers. a. Lead time b. UPC c. CPFR d. Cross-docking e. JIT
answer

e. JIT
question

In marketing’s four Ps, place refers to all activities required to get a. consumers to the destination. b. access to the physical space within a retail establishment. c. demand chain management functionally operable. d. the right products to the right customer when that customer wants it. e. the design of the terminal location for products accomplished.
answer

d. the right products to the right customer when that customer wants it.
question

A customer who is shopping for fashionable but relatively low-cost merchandise in a pleasant environment is shopping at a a. full-line discount store. b. convenience store. c. extreme value retailer. d. specialty store. e. department store.
answer

a. full-line discount store.
question

__________ are combating competitive pressures by offering fresh food and healthy fast food, tailoring assortments to local markets, opening locations closer to where consumers work and shop, and adding new services. a. Extreme value retailers b. Convenience stores c. Warehouse clubs d. Department stores e. Supercenters
answer

b. Convenience stores
question

__________ offer an inconsistent assortment of brand-name merchandise at low prices. a. Category killers b. Off-price retailers c. Specialty stores d. Full-line discount stores e. Department stores
answer

b. Off-price retailers
question

Natalie represents a manufacturer who makes unique, high-end hats. When making a recommendation about potential retail partners, what should be Natalie’s first consideration? a. When will customers want this product? b. What prices will customers be willing to pay? c. How likely is it for certain retailers to carry this product? d. What is the appropriate advertising strategy? e. What assortment of products will customers want?
answer

c. How likely is it for certain retailers to carry this product?
question

For retailers, promotion refers to a. the image a store attempts to maintain through its pricing strategy. b. supply chain communication. c. both their in-store environment and their media communications. d. the relationship between price and product. e. the seasonal discounts offered to move end-of-season items.
answer

c. both their in-store environment and their media communications.
question

Because many consumers choose stores based on proximity to their workplaces or homes, great locations are a. always situated near supply chain members. b. almost always locations next to big box discounters. c. difficult to define. d. more important than great products. e. a competitive advantage that few rivals can duplicate.
answer

e. a competitive advantage that few rivals can duplicate.
question

Retailers’ coupons, rebates, and online discounts are types of a. off-price wholesaling. b. mass media advertising. c. pricing promotions. d. in-store promotions. e. specialty product displays.
answer

c. pricing promotions.
question

__________ offer a limited assortment of general merchandise at very low prices and are often found in lower-rent locations. a. Category specialists b. Discount stores c. Department stores d. Extreme value retailers e. Off-price retailers
answer

d. Extreme value retailers
question

Retailers in expensive resort areas often find it difficult to hire quality salespeople. In a situation like this, retailers should consider augmenting or even replacing the sales and customer service functions with a. in-store kiosks or self-checkout lanes. b. special attention to product placement in their stores. c. expanded hours of operation. d. continuous use of promotions. e. variable pricing strategies.
answer

a. in-store kiosks or self-checkout lanes.
question

Which of the following is NOT one of the broad factors manufacturers must consider when establishing a strategy for getting their products into the hands of the ultimate customer? a. identifying types of retailers b. choosing retail partners c. developing retail strategy d. managing a multichannel strategy e. lowering production costs
answer

e. lowering production costs
question

Retailers focusing on increasing sales to their best customers are attempting to a. slay the category killers. b. compete with off-price retailers. c. combat the inroads made by big-box specialty retailers. d. drive their supply chain. e. increase their share of wallet.
answer

e. increase their share of wallet.
question

Internet buyers are sometimes surprised to see online retailers using information about their past purchases to customize promotions targeted to them the next time they visit the retailer’s website. The retailer is using the information to a. reward customer loyalty. b. shift from a general merchandise retailer to a private-label retailer. c. increase the share of wallet from its best customers. d. comply with Homeland Security requirements. e. create traffic in its brick-and-mortar stores.
answer

c. increase the share of wallet from its best customers.
question

__________ are likely to target low-income consumers who demand national brands but cannot afford to buy large-sized packages. a. Specialty stores b. Extreme value retailers c. Warehouse club stores d. Category killers e. Department stores
answer

b. Extreme value retailers
question

As the old cliché claims, the three most important things in retailing are a. before, during, and after the sale. b. size, location, and convenience. c. price, promotion, and place. d. price, price, price. e. location, location, and location.
answer

e. location, location, and location.
question

Higher-income consumers visiting __________ feel like they are on a treasure hunt, searching for a bargain. a. department stores b. services retailers c. big box retailers d. extreme value retailers e. category specialist stores
answer

d. extreme value retailers
question

Aaron has designed innovative accessories for hard-core bicycling enthusiasts. He knows where and how he will make them, and he needs to turn his attention to getting the products to the customers. As he chooses retail partners, which of the following is LEAST important in this process? a. considering distribution intensity b. considering characteristics of channel members c. encouraging new bicycling enthusiasts d. looking at the channel structure e. determining where target customers will expect to find this product
answer

c. encouraging new bicycling enthusiasts
question

__________ offer an inconsistent assortment of brand-name merchandise at low prices. a. Full-line discount stores b. Category killers c. Specialty stores d. Off-price retailers e. Department stores
answer

d. Off-price retailers
question

Retailers can gain valuable knowledge about their customers from the transaction process and from a. store brand/private label brand ratios. b. the insights of store personnel. c. multichannel flow process. d. end-of-aisle positioning studies. e. trade industry profiles.
answer

b. the insights of store personnel.
question

__________ can purchase merchandise at one-fifth to one-fourth of the original wholesale prices because they do not ask the suppliers for advertising allowances or markdown adjustments. a. Specialty stores b. Off-price retailers c. Category specialists d. Department stores e. Drugstores
answer

b. Off-price retailers
question

Compared to conventional supermarkets, warehouse clubs have a. lower annual fees. b. a lower level of service. c. a broader assortment of food items. d. no products appealing to small businesses. e. slightly higher prices.
answer

b. a lower level of service.
question

As a type of retailer, category specialists are fierce competitors using a. a limited but complementary merchandise assortment. b. a broad assortment of merchandise. c. a complete assortment in a specific category at low prices. d. highly trained personnel throughout the stores. e. highly attractive loyalty programs.
answer

c. a complete assortment in a specific category at low prices.
question

Johan owns an oil-change business called Oil Only. He changes oil in cars—and that is all he does. What kind of retail business is this? a. off-price retailer b. category specialist c. extreme value retailer d. service retailer e. specialty store
answer

d. service retailer
question

Benton manages a building supply company. He wants to invite twenty of his most valuable building-contractor customers to a golf outing and party. Benton will likely use the firm’s ___________ to identify these customers. a. inventory management system b. CRM database c. annual sales report d. specialty store sales e. website
answer

b. CRM database
question

Henri wants customers in his specialty tobacco store to feel at home, as if they were in their personal smoking den. He uses lighting, music, and soft chairs to create a look and feel that will get customers to relax and return. Henri is focusing on a. price. b. product. c. policy. d. place. e. promotion.
answer

e. promotion.
question

Wholesalers sell to all of the following EXCEPT a. businesses. b. consumers. c. industrial users. d. retailers. e. manufacturers.
answer

b. consumers.
question

George wants to increase the number of visits to his insurance firm’s website, which specializes in rental insurance for college students. George decides to target Internet browsers who use the terms “apartment,” “insurance,” and “student.” Which of the following will be most helpful to George? a. Google Chrome b. Google AdWords c. Twitter d. corporate blog e. Google Analytics
answer

b. Google AdWords
question

When Apple’s famous 1984 “Big Brother” ad aired during the Super Bowl, it reached an estimated 500 million viewers. It aired only once on commercial television, but was seen in later years in at least ten television programs recalling great commercials. For its target audience, the frequency of this ad is measured as a. ten. b. one. c. 500 million. d. 5 billion (ten times 500 million). e. one/tenth.
answer

b. one.
question

Sales data, complaints, compliments, and redemption rates for coupons and rebates are types of __________ marketers use to assess the effectiveness of their IMC efforts. a. encoding b. feedback c. pre-testing d. decoding e. simulations
answer

b. feedback
question

To estimate reach in terms of electronic media, marketers can use the click-through rate (CTR). To do so, they need to know the number of clicks and a. the total number of clicks recorded by the industry. b. the number of destinations. c. how much time consumers spend viewing the ad or page. d. the cost per click. e. the number of impressions.
answer

e. the number of impressions.
question

Reaching the right audience with marketing communications is becoming more difficult because a. government regulations are constraining free speech. b. consumers are bored. c. the media environment has become more complicated. d. the AIDA model no longer represents how marketing communication works. e. personal selling is becoming less expensive, making it more competitive with advertising.
answer

c. the media environment has become more complicated.
question

Which of the following is the LEAST interactive IMC strategy? a. direct marketing via catalog b. direct marketing via telemarketing c. online marketing via social media d. personal selling e. mobile marketing
answer

a. direct marketing via catalog
question

The sender of an integrated marketing communication a. controls the meaning all receivers take from the message. b. should attempt to control how the message is received. c. has little control over what meaning any individual receiver will take from the message. d. can assess the manner in which receivers interpret the message through gross rating points. e. must work with the advertising specialists to ensure all recipients interpret the message accurately.
answer

c. has little control over what meaning any individual receiver will take from the message.
question

The IMC communication process includes all of the following EXCEPT a. the transmitter. b. the communication channel. c. the receiver. d. the sender. e. evaluation.
answer

e. evaluation.
question

Betty is assessing the effectiveness of her firm’s marketing communications. She knows the ultimate goal is to a. minimize marketing communication expenditures. b. shift encoding into decoding. c. use personal selling to augment public relations. d. maximize rating points. e. drive the receiver to action.
answer

e. drive the receiver to action.
question

In the IMC communication process, the __________ encodes the marketing communication message. a. instructor b. receiver c. transmitter d. communication channel e. sender
answer

c. transmitter
question

Which of the following is NOT one of the steps in the AIDA model? a. desire b. intention c. awareness d. interest e. action
answer

b. intention
question

___________ means converting the sender’s ideas into a message, which could be verbal, visual, or both. a. Precoding b. Tracking c. Encoding d. Integrated marketing communications e. Decoding
answer

c. Encoding
question

In simple terms, the AIDA model is also known as the __________ model. a. intention, action, interest b. stop, look, listen c. think, feel, do d. want, need, desire e. inform, persuade, act
answer

c. think, feel, do
question

In a television commercial for Chobani Greek yogurt, the manufacturer Chobani plays which role in the communication process? a. receiver b. encoder c. sender d. transmitter e. channel
answer

c. sender
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Using prior sales and communication activities to determine the present communication budget describes which method of IMC budgeting? a. sender-receiver b. objective-and-task c. track and decode d. reach and frequency e. rule-of-thumb
answer

e. rule-of-thumb
question

Integrated marketing communications represents the __________ P in the four Ps of a firm’s marketing mix. a. promotion b. partnering c. product d. pricing e. place
answer

a. promotion
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To estimate reach in terms of electronic media, marketers can use the click-through rate (CTR). To do so, they need to know the number of clicks and a. the cost per click. b. the number of impressions. c. how much time consumers spend viewing the ad or page. d. the number of destinations. e. the total number of clicks recorded by the industry.
answer

b. the number of impressions.
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The right communication channel to use in IMC is a. the traditional channel used in that particular retail sector. b. the one that will connect to the desired recipients. c. network advertising, local newspapers, and regional radio stations. d. the one with the best encoding capabilities. e. the one that maximizes decoding difficulty.
answer

b. the one that will connect to the desired recipients.
question

Florida Heat Pump Manufacturing Company is offering a free, all-expenses-paid trip to Las Vegas for HVAC dealers that sell at least twenty units this year. Florida Heat Pump is using a __________ promotional strategy. a. pull b. posttesting c. puffery d. publicity e. push
answer

e. push
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In addition to Spanish-language media, which of the following mediums are experiencing significantly growing advertising expenditures? a. television b. Internet c. billboards d. newspaper e. radio
answer

b. Internet
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Chet was struggling selling his golf photography outside a PGA event. When he offered a tee shirt with a golf photograph on it with any framed golf photo, sales picked up. Chet discovered the value of sales promotions—specifically _________—in encouraging customers to buy. a. deals b. premiums c. rebates d. samples e. sweepstakes
answer

b. premiums
question

U.S.-based global marketers have often found that a. outside the U.S., standards are subject to U.N. approval. b. self-regulatory groups are especially demanding of U.S. advertisers. c. anything goes when advertising outside the United States. d. children in other countries are less influenced by advertising. e. EU advertising laws are more restrictive than those in the United States.
answer

e. EU advertising laws are more restrictive than those in the United States.
question

Walmart’s “Everyday low prices” selling proposition is effective primarily because it is a. meaningful to the consumer. b. variable over time. c. generally unsustainable. d. a one-time message. e. unique to the industry.
answer

a. meaningful to the consumer.
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A ____________ advertising schedule uses a base level of advertising during some periods followed by periods of increased advertising. a. penetrating b. flighting c. purposeful d. pulsing e. continuous
answer

d. pulsing
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The __________ stage of the advertising campaign planning process can be described by the question, “Who are we trying to talk to?” a. setting advertising objectives b. assessing the impact c. conveying the message d. determining the advertising budget e. identifying target audience
answer

e. identifying target audience
question

In the early stages of an ad campaign, the objectives are established. To determine whether those objectives have been met, the marketer will a. posttest. b. conduct feedback analysis. c. conduct tracking. d. initiate content analysis. e. arrange for peer analysis.
answer

a. posttest.
question

In the create advertisements step when planning and executing an ad campaign, often the execution style for the ad will a. dictate the type of medium used to deliver the message. b. dictate how advertising will be flighted. c. determine the pretesting pulse of the ad. d. determine which push/pull strategy will accompany the ad. e. deliver integrated marketing.
answer

a. dictate the type of medium used to deliver the message.
question

Which of the following is NOT a public relations tool? a. coupons and rebates b. donating a portion of profits to a charitable cause c. websites d. event sponsorships e. news releases
answer

a. coupons and rebates
question

For consumer products like toothpaste and groceries, things consumers purchase throughout the year, most advertisers would use a __________ advertising schedule. a. flighting b. penetrating c. purposeful d. pulsing e. continuous
answer

e. continuous
question

After identifying the target audience for the university’s new advertising campaign, the advertising team needs to decide whether the advertising objective is to __________, __________, or __________ potential and/or existing students. a. push, pull, sell b. create, stimulate, ignore c. beg, borrow, steal d. inform, persuade, remind e. pay, buy, entertain
answer

d. inform, persuade, remind
question

Because PSAs are a special class of advertising, FCC rules require a. consumers to listen to them. b. all advertisers to contribute to them. c. broadcasters to devote a specific amount of free time to them. d. they use only the informative or reminder advertising appeals. e. court approval before they are aired.
answer

c. broadcasters to devote a specific amount of free time to them.
question

Which of the following is the best example of puffery? a. “All natural ingredients.” b. “Happy hour every Friday.” c. “You have tried the rest, now try the best.” d. “Take two and call us in the morning.” e. “Northwestern, the quiet company.”
answer

c. “You have tried the rest, now try the best.”
question

Actress Sissy Spacek once objected to a series of movie scenes that included her smoking a certain brand of cigarettes. She was probably objecting to a __________ arrangement the film company had made with an advertiser. a. product placement b. sampling c. promotional deal d. mass media buy e. loyalty program
answer

a. product placement
question

Sarah goes through the newspaper looking for coupons to help reduce her living expenses. Her roommate Paige doesn’t read newspapers, let alone look through them for coupons. But Paige filled out a form from inside a cereal box entering her in a drawing for free exercise equipment. What kind of sales promotion reached Paige? a. loyalty program b. deal c. contest d. premium e. sweepstakes
answer

e. sweepstakes
question

Often, advertisers will employ a variety of media to deliver their message. When using different media, advertisers need to deliver a. selective, continuous pulsing. b. value-based posttesting. c. a consistent and compelling message. d. mild puffery. e. niche media emotional appeals to the mass market.
answer

c. a consistent and compelling message.
question

__________ are special incentives or excitement-building programs that encourage consumers to purchase a particular product, often used in conjunction with advertising or personal selling programs. a. B2B programs b. Trade incentives c. Targeted leader items d. Push programs e. Sales promotions
answer

e. Sales promotions
question

Brent is working on an advertising campaign to promote downtown businesses. He knows the increasing number of advertising communication channels available and changes in consumers’ media usage a. will force him to use PSAs. b. makes budget more important, and creativity less important. c. makes his job more difficult. d. increases consumers’ preference for high-pressure persuasive advertising. e. makes it easier to select media.
answer

c. makes his job more difficult.
question

An advertisement featuring a cartoon Smokey the Bear saying “only you can prevent wildfires” is an example of a successful a. push-and-pull advertisement. b. public service announcement. c. sales promotion. d. product-focused advertisement. e. puffery campaign.
answer

b. public service announcement.
question

Regina just bought a gourmet bagel store. She is working with a freelance graphic artist who is designing her logo and print advertisements. Regina is spending days looking over the various designs and color options. She needs to remember that the creative aspect of advertising design a. dictates tracking alternatives. b. should always include coupons. c. is everything. d. should not overshadow the message. e. will determine pretesting and posttesting options.
answer

d. should not overshadow the message.
question

When a product has gained a certain level of brand awareness, firms use __________ advertising to motivate consumers to take action. a. informative b. persuasive c. discussive d. reminder e. institutional
answer

b. persuasive
question

Jennifer has worked for many years reviewing and approving print ads for her firm. She has memorized a checklist of key points to review. Which of the following would NOT be on her checklist? a. brand elements b. body copy c. subheads d. headline e. photo credits
answer

e. photo credits
question

The most important activity in recruiting salespeople is determining what the salesperson will be doing and a. how long they are likely to stay. b. their previous level of experience. c. when they are available to start work. d. whether to pay them on a commission basis or a salary plus commission. e. what personal traits and abilities a salesperson should have to do the job well.
answer

e. what personal traits and abilities a salesperson should have to do the job well.
question

Sales, profits, orders, and sales ratios are all _________ measures that can be used to evaluate sales representatives. a. subjective b. customer-related c. cooperative d. uncontrollable e. objective
answer

e. objective
question

For salespeople, __________ provide(s) a major contact point with customers in the follow-up stage of the selling process and an opportunity to build and improve relationships. a. cold calls b. telemarketing c. complaints d. preapproaches e. trade shows
answer

c. complaints
question

Most beverage distributors have their delivery people act as the firm’s sales representatives. The delivery people primarily function as a. order getters. b. order takers. c. manufacturer’s reps. d. telemarketers. e. sales support personnel.
answer

b. order takers.
question

Whether a salesperson will go through all five steps of the selling process depends on the sales situation and a. how the person was trained. b. the buyer’s readiness to purchase. c. the use of sales representatives versus independent reps. d. the effectiveness of role playing. e. the number of sales support personnel available.
answer

b. the buyer’s readiness to purchase.
question

__________ is a sales philosophy and process that emphasizes a commitment to maintaining and investing in long-term, mutually beneficial business relationships. a. Organizational buying b. Cold calling c. Relationship selling d. Psychographic selling e. Sales management
answer

c. Relationship selling
question

Getting a commitment from the customer to purchase your product is also known as a. closing the sale. b. handling reservations. c. preparing for follow-up. d. wrapping it up. e. asking for the bacon.
answer

a. closing the sale.
question

The attitudes that Ryan’s customers develop after they have purchased his yearly lawn care service will become the basis for determining whether they renew each year. He needs to be ____________, quickly addressing any problems that occur. a. responsive b. empathic c. tangible d. assuring e. reliable
answer

a. responsive
question

When Pat was talking with his customer about the new accounting system, his customer mentioned that she thought the new system was not going to fit into their budget. Pat explained that once her people were trained on it, it would require less time to process orders and therefore save her money in payroll. Which part of the sales presentation is demonstrated in this example? a. the preapproach b. follow-up c. generating and qualifying leads d. the presentation e. overcoming reservations
answer

e. overcoming reservations
question

As marketing manager for a newly created software company, Katrina is deciding whether to hire a company sales force. To make this decision, Katrina needs to consider whether a. she will be able to find an effective supply chain manager. b. online advertising will work. c. having a sales force is worth more than it costs. d. her firm should attend trade shows. e. her firm has a hot product.
answer

c. having a sales force is worth more than it costs.
question

Several personal traits are listed in the text as being important for successful sales careers. Harvey is a go-getter. He gets up early every morning to check his schedule and arrives at appointments early so he can get in the right frame of mind. Which of the traits listed in the text does Harvey exhibit? a. personality b. self-motivation c. resilience d. optimism e. empathy
answer

b. self-motivation
question

Independent Publisher’s Group is a distributor of books for small publishers. It doesn’t have its own sales force, but uses ________ on a contract basis to sell its product on commission. a. independent agents b. in-house telemarketers c. sales support personnel d. order getters e. order takers
answer

a. independent agents
question

During the preapproach stage, a salesperson usually conducts additional research about prospects and a. determines which of the customer’s buying support team need to be present at the sales presentation. b. develops plans for meeting with the customer. c. decides what role to play during the handling reservations stage. d. offers initial concessions to gain the sale. e. assists the prospect through the buying process.
answer

b. develops plans for meeting with the customer.
question

Often the best way to handle customers’ reservations is to relax, listen, and a. consider outsourcing. b. reevaluate your expected order. c. reassess your preapproach strategy. d. ask questions to clarify the issues. e. immediately call your sales support team.
answer

d. ask questions to clarify the issues.
question

Most beverage distributors have their delivery people act as the firm’s sales representatives. The delivery people primarily function as a. manufacturer’s reps. b. sales support personnel. c. order takers. d. telemarketers. e. order getters.
answer

c. order takers.
question

All of the following are service quality dimensions related to follow-up EXCEPT a. ethics. b. empathy. c. reliability. d. tangibles. e. responsiveness.
answer

a. ethics.
question

Tasha was selling siding and her boss told her that she could hide an extra charge for trim in the total, even though the customer was told he would not be charged for trim. Tasha was told this was standard practice for the siding company. If the customer takes legal action for this, who is most likely liable? a. no one because this would be considered a victimless crime b. Tasha only, because she wrote the order c. both Tasha and the siding company because both intentionally misled the customer d. Tasha’s boss only, since he told her to do it e. the customer for not checking the order more carefully
answer

c. both Tasha and the siding company because both intentionally misled the customer
question

Each time an employee at an audio store makes a sale of $500 or more, the department manager awards a chocolate gold coin in recognition of the employee’s accomplishment. This reward is known as a a. financial reward. b. salary increase. c. bonus. d. commission. e. nonfinancial reward.
answer

e. nonfinancial reward.
question

Miles worked selling products to industrial users and spent most of his time working on customers’ new buy and modified new buy situations. Miles was primarily a(n) a. new business specialist. b. order taker. c. sales support rep. d. prospector. e. order getter.
answer

e. order getter.
question

Fred sells health insurance packages for small businesses. He has been given the names of ten new businesses in his town. During the qualifying leads stage of the selling process, Fred will likely try to assess which of the ten businesses a. are willing to meet with him. b. are closest to his office. c. have order getters and order takers. d. need health insurance packages and can afford them. e. would respond best to a sales contest.
answer

d. need health insurance packages and can afford them.
question

To maintain trustworthy customer relationships, companies must take care that they respect customer privacy and respect the ________—that is, the amount of information a customer feels comfortable providing. a. privacy zone b. communication tolerance level c. information comfort zone d. information limit e. privacy bubble
answer

c. information comfort zone
question

Often, inexperienced salespeople mistakenly believe that during the sales call, they should a. pay attention to body language. b. note the office environment. c. act positively. d. listen carefully to the customer. e. do all the talking.
answer

e. do all the talking.

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