Marketing Exam 14-21 – Flashcards
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A _____ is a business structure of interdependent organizations that reaches from the point of production to the consumer and facilitates the downstream physical movement of goods through the supply chain.? a. ?market grouping b. common trade alliance c. ?retailer monopoly d. ?marketing channel
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marketing channel
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_____ negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving a product from the manufacturer into the hands of the final consumer.? a. ?Channel members b. ?Laggards c. Millennials d. Early adopters
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Channel members
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Which of the following is true of the facilitating function performed by intermediaries? a. It involves explaining a product's features, advantages, and benefits. b. It includes transportation and storage of assets. c. It includes research and financing. d. It involves communicating with prospective buyers to make them aware of existing products.
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It includes research and financing.
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The major characteristic that is used to differentiate intermediaries from one another is whether they: a. create specialization of labor. b. create economies of scale. c. raise profit margins for independent middlemen. d. take title to the products they sell.
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take title to the products they sell.
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Indigo Blue Inc. is a distributor of equipment, component parts, and supplies in the United States. It has an ownership title to all its products. These products are stocked in both national and regional warehouses to guarantee product availability and quick service to the many manufacturers who are its customers. Based on this information, Indigo Blue Inc. is an example of a(n) _____.? a. ?agent b. merchant wholesaler c. ?retailer d. ?government buyer
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merchant wholesaler
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Phoenix Automated Retail Services specializes in DVD rentals via automated retail kiosks. If consumers want a particular DVD, they can rent it from Phoenix instead of searching for it in various production studios. Phoenix therefore provides _____ for both consumers and the production studios.? a. ?contact efficiency b. ?reciprocity c. ?synergy d. ?forward integration
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contact efficiency
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Retailers play a role in making distribution simpler by reducing the number of transactions required by consumers to make a purchase and by making an assortment of goods available in one location. This is called _____. a. ?forward integration b. ?contact efficiency c. ?sorting d. ?reciprocity
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contact efficiency
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Which of the following is a difference between a retailer channel and a wholesaler channel? a. A retailer channel is most common when the retailer is large and can buy in large quantities, while a wholesaler channel is commonly used for low-cost items that are frequently purchased. b. A retailer channel must be organized and managed as a group, while a wholesaler channel must be managed individually. c. A retailer channel helps differentiate a firm's final product from the competition, while a wholesaler channel does not. d. A retailer channel enables a retailer to use another manufacturer's already-established product, while a wholesaler channel does not.
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A retailer channel is most common when the retailer is large and can buy in large quantities, while a wholesaler channel is commonly used for low-cost items that are frequently purchased.
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A _____ channel enables a consumer to return a product when it reaches the end of its useful life. a. gray marketing b. reverse c. nontraditional d. ?traditional
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reverse
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Which of the following is true of nontraditional channels? a. They detract from the profitability of the primary and secondary channels controlled by a business. b. They are used to sell stolen or counterfeited products. c. They enable a consumer to return a product when it reaches the end of its useful life. d. They help differentiate a firm's product from the competition.
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They help differentiate a firm's product from the competition.
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Roubov Inc. is a chain of American department stores that sells clothing, furniture, home appliances, and toys.It buys its goods in large quantities directly from a manufacturer. Based on this information, Roubov Inc. most likely makes use of a(n) _____.? a. ?retailer channel b. ?wholesaler channel c. ?agent channel d. ?direct channel
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?retailer channel
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Which of the following is a difference between vertical conflict and horizontal conflict? a. Vertical conflict occurs between different levels in a marketing channel, while horizontal conflict occurs among channel members on the same level. b. Vertical conflict is found when manufacturers practice multiple distribution strategies, while horizontal conflict is found when manufacturers practice a single distribution strategy. c. Vertical conflict occurs when a wholesaler chooses to bypass a producer, while horizontal conflict occurs when a producer chooses to bypass a wholesaler. d. Vertical conflict is primarily characterized by lying and breaking contractual agreements, while horizontal conflict is primarily characterized by hiding and withholding information.
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Vertical conflict occurs between different levels in a marketing channel, while horizontal conflict occurs among channel members on the same level.
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Red Chilly Productions, a production studio based in the United States, decides to make a major change in its distribution strategy. It withdraws contracts from its retail partners and beginsto operate its own rental store. This results in its retail partners filing several lawsuits against the company. This scenario is an example of _____.? a. ?bilateral monopoly b. dual distribution c. horizontal conflict d. ?retailer monopoly
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horizontal conflict
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_____ occurs when a firm refuses to meet specific obligations or fails to change when new situations arise.? a. ?Intensive distribution b. ?Passive opportunism c. ?Co-opetition d. Cooperation
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Passive opportunism
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Which of the following is true of channel conflict? a. It always has a negative effect on the members of a channel. b. It is often caused by an unwillingness of traditional channel members to keep up with the changing times. c. It mixes elements of cooperation and competition between two partners who work together on the same initiative. d. It does not occur when multiple distribution channels are used.
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It is often caused by an unwillingness of traditional channel members to keep up with the changing times.
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A(n) _____ refers to the originator of a trade name, product, methods of operation, and the like that grants operating rights to another party to sell its product. a. retailer b. franchisor c. ?consumer d. ?investor
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franchisor
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Tipplers Delight is a liquor store that sells a wide assortment of alcoholic beverages. Tipplers Delight is an example of a _____. a. ?supermarket b. specialty store c. ?supercenter d. drugstore
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specialty store
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Which of the following is true of specialty stores? a. They offer consumers very limited service and carry a vast assortment of well-known, nationally branded goods such as toys, housewares, and clothing. b. They price products lower than specialty discount stores. c. They carry a wide range of products and specialty goods, including apparel, cosmetics, housewares, electronics, and sometimes furniture. d. They carry a deeper but narrower assortment of merchandise within a single category of interest.
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They carry a deeper but narrower assortment of merchandise within a single category of interest.
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Alpha Beta Inc. is a self-service shop that offers a wide variety of foods and household products, organized into aisles. Alpha Beta is a _____. a. ?supermarket b. ?drugstore c. ?warehouse club d. ?factory outlet
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supermarket
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Which of the following is true of a franchise? a. It is an agreement where two parties agree to share the ownership of a business. b. It is owned by a person or a group with singular stores being operated within a local community. c. It sells products under the brand name of a larger supporting organizational structure. d. It is a group of brand names owned and operated by a single organization.
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It sells products under the brand name of a larger supporting organizational structure.
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?_____ compete on the basis of low prices, high turnover, and high volume. a. Discount stores b. ?Convenience stores c. ?Drugstores d. ?Supermarkets
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Discount stores
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Which of the following is a difference between online retailing and the click-and-collect process? a. Online retailing resells pre-owned items bought back from customers, while the click-and-collect process sells only new items. b. Online retailing does not allow customers to provide themselves with products without the intervention of a service employee, while the click-and-collect process allows customers to provide themselves with products. c. Online retailing ensures greater speed of delivery, while the click-and-collect process takes longer to deliver a product. d. Online retailing enables customers to have items directly delivered to their doors; whereas in the click-and-collect process, customers travel to a physical store location to take delivery of the merchandise.
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Online retailing enables customers to have items directly delivered to their doors; whereas in the click-and-collect process, customers travel to a physical store location to take delivery of the merchandise.
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Which of the following is a difference between direct retailing and direct marketing? a. Direct retailing shoppers are less bound by traditional shopping situations, while direct marketing shoppers are bound by traditional shopping situations. b. Direct retailing employs inbound telephone contacts to sell directly to consumers, while direct marketing employs outbound telephone contacts to sell to consumers. c. Direct retailing allows customers to shop over the Internet, while direct marketing does not allow customers to shop over the Internet. d. Direct retailing representatives sell products door-to-door, while direct marketing allows consumers to shop from home.
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Direct retailing representatives sell products door-to-door, while direct marketing allows consumers to shop from home.
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Delta Company recruits and trains college students to sell educational reference books, software, and children's books door-to-door. This form of retailing is called: a. direct retailing. b. online retailing. c. off-price retailing. d. in-store retailing.
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direct retailing.
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?_____ are inventories displayed for sale to customers. a. ?Back stock b. Floor stock c. Intangible assets d. Tangible assets
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Floor stock
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Which of the following is a difference between off-price retailers and specialty shops? a. Off-price retailers replenish inventory items that are sold, while specialty shops never replenish inventory items that are sold. b. Off-price retailers employ a hybrid retail operating model, while specialty shops employ a mass merchandising retail operating model. c. Off-price retailers focus on lean inventory management, while specialty shops are supported by an agile approach to inventory. d. Off-price retailers adopt a high-service approach, while specialty shops de-emphasize customer service and product selection.
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Off-price retailers focus on lean inventory management, while specialty shops are supported by an agile approach to inventory.
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A freestanding store can become successful by: a. reducing the number of salespeople. b. moving to an isolated location. c. attracting customers from nearby competitors. d. becoming a destination store.
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becoming a destination store.
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Strategic retailing goals typically focus on: a. increasing total sales. b. increasing costs of goods sold. c. decreasing returns on equity. d. decreasing store traffic.
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increasing total sales.
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_____ means persuading customers to buy a higher-priced item than they originally intend to purchase. a. ?Suggestion selling b. Trading up c. ?Brand cannibalization d. ?Microtargeting
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Trading up
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The technique used to sift through data collected by point-of-purchase scanning equipment is called _____. a. big data analysis b. ?shopper marketing c. ?market-basket analysis d. ?shopper analytics
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?market-basket analysis
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Choosing the right distribution channel for a service: a. decreases the time that the service is available. b. maximizes the time customers wait in a line. c. increases the costs of providing the service. d. adds to customer convenience.
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adds to customer convenience.
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Zeta is an American multinational retail corporation. To move ahead of its competitors and increase revenue, Zeta began to employ a system to determine which products to stock and at what prices, and how to advertise to draw target customers. The process employed by Zeta is called _____. a. ?brand cannibalization b. ?big data analytics c. ?retail channel omnification d. click-and-connect
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?big data analytics
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Which of the following is true of retail channel omnification? a. It allows retailers to offer competitive prices across various outlets. b. It increases redundancies in inventory and transportation. c. It determines which product to stock and at what price. d. It focuses on understanding how a brand's target consumers behave in different channels.
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It allows retailers to offer competitive prices across various outlets.
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Which of the following is true of click-and-collect? a. It requires representatives to sell products door-to-door, in offices, or at in-home sales parties. b. It employs outbound and inbound telephone contacts to sell directly to customers. c. It enables consumers to make their purchases online and pick up their orders from physical stores. d. It allows customers to shop over the Internet and have items delivered directly to their door.
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It enables consumers to make their purchases online and pick up their orders from physical stores.
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Asif wanted to buy a football immediately. He placed an order on Duke.com, an online portal for sports goods, and dropped in at its nearest physical store to collect it. This scenario is an example of _____. a. microtargeting b. ?click-and-collect c. shopper marketing d. ?retail channel omnification
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click-and-collect
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_____ is an emerging trend that employs market data to best serve customers as they prepare to make a purchase. a. Retail channel omnification b. ?Click-and-collect c. ?Shopper marketing d. Mass customization
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Shopper marketing
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Treat Bytes Inc., a food product manufacturing company, introduces a new range of protein-rich snacks targeted at vegetarians. The products have very low levels of fat and cholesterol that make them a healthy source of protein for vegetarians. These products are unique, and people consider them to be of the highest quality. These unique features of the products present Treat Bytes Inc. with a _____.? a. differential parity? b. ?synergistic goal c. competitive advantage d. comparative benefit
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competitive advantage
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The National Pork Board of the United States wants to create more consumer demand for pork products. The board decides on how to use advertising, public relations, personal selling, sales promotion, and social media to create a coordinated plan that will become an integral part of the its marketing functions. Thus, the board is developing a _____.? a. promotional strategy b. tactic for communication c. ?mass aggregation strategy d. competitive advantage
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promotional strategy
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_____ refers to communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.? a. Distributive communication b. ?Perceptual communication c. Promotion d. Transmission
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Promotion
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The fishing lures produced by Fun Lite Corporation are unique in that they are handcrafted. Advertising by the company emphasizes the point that how its lures, unlike others, are all handcrafted. This feature is the company's: a. publicity objective. b. marketing differentiator. c. competitive advantage. d. one-to-one marketing advantage.
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competitive advantage.
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The advertisements for ground coffee sold by Khokho's Inc. state, "The highest quality coffee doesn't have to be expensive." This is an example of how a product communicates its _____.? a. marketing mix? b. ?comparative differentiation c. competitive advantage d. ?researchable objective
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competitive advantage
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In 2008, the NBC television network used marketing tools such as advertising, personal selling, public relations, and sales promotion to communicate with its target audience about its new reality show. The television network's _____ described its plan on how to use these tools most effectively.? a. ?competitive advantage b. ?promotional strategy c. ?selling plan d. ?pull strategy
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promotional strategy
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Arise Food Corporation displays posters in supermarkets to promote its new range of pasta sauces. Which of the following stages of the communication process is the company engaged in during the course of promoting its products? a. Customizing b. Decoding c. Receiving d. Encoding
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Encoding
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ABC television network uses billboard, television, magazine, and newspaper advertising to inform viewers about new episodes of a popular television program. Therefore, ABC television network uses _____ communication to promote the television program.? a. referential? b. ?mass c. ?factual d. ?interpersonal
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mass
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Advent Automobiles Inc. launches a new sport utility vehicle. The company places advertisements in leading newspapers and social media sites to reach out to consumers. In the context of the communication process, Advent Automobiles Inc. is the _____.? a. sender b. ?decoder c. ?informer d. receiver
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sender
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_____ is the process by which meanings are exchanged or shared through a common set of symbols.? a. Promotion b. ?Advertising c. ?Publicity d. Communication
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Communication
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When Dernz Inc. introduced its ketchup globally, it first had to deal with the fact that ketchup is not a household staple outside the United States. The company had to show foreign users how ketchup can be used. In this case, Dernz had to rely primarily on _____ advertising to reach out to consumers.? a. ?reminder b. persuasive c. informative d. compulsive
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?informative
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_____ promotion is designed to stimulate a purchase or an action.? a. Connective b. Reminder c. Informative d. Persuasive
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Persuasive
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_____ consists of all marketing activities that stimulate consumer purchasing, such as coupons, contests, free samples, and trade shows. a. Sales promotion b. Publicity c. Personal selling d. Advertising
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Sales promotion
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A beverage company plans to launch a new energy drink. It decides to partly sponsor a marathon in the city. It places billboards and posters describing the new drink throughout the marathon route. Company representatives distribute flyers to people arriving to watch the marathon. The company also issues press releases as part of the product launch. Therefore, the company is executing a: a. sales promotion campaign. b. personal selling campaign. c. target marketing strategy. d. public relations strategy.
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public relations strategy.
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Which of the following statements is true of sales promotions? a. Public relations cannot effectively be used with sales promotions. b. Sales promotion is a type of direct marketing. c. Marketers view sales promotion as an attempt to create a long-term, committed relationship between customers and salespersons. d. Sales promotions include experiential marketing whereby marketers create events that enable customers to connect with brands.
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Sales promotions include experiential marketing whereby marketers create events that enable customers to connect with brands.
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Wild Plus, a television channel dedicated to wildlife, organizes promotional events in several shopping malls across the city to promote its new wildlife adventure series. Articles about the new program are also published in local newspapers. Therefore, Wild Plus is engaged in: a. promoting sales. b. generating publicity. c. personal selling. d. implicit communications.
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generating publicity.
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A proper promotional mix is one that _____.? a. ?focuses on using a pull strategy for selling products b. utilizes all forms of promotion equally c. focuses on using a push strategy for selling products? d. meets the needs of the target market
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meets the needs of the target market
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To increase its revenues, an airline company decides to sell space on airsickness bags to companies that would like to use this unique channel for their promotional messages. In terms of the promotional strategy, the airsickness bags are being used for: a. integrated marketing communication. b. personal selling. c. executing a push strategy. d. advertising.
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advertising.
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A(n) _____ is the combination of advertising, personal selling, sales promotion, social media, and public relations that are used to reach the target market and fulfill an organization's overall goals.? a. ?communication model b. advertising campaign c. marketing mix d. promotional mix
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promotional mix
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Which of the following statements is true of a promotional mix? a. Control over message content is greatest when public relations is used. b. A large audience is best reached with personal selling. c. In advertising, the sponsor or company is identified. d. The mode of communication for sales promotion is usually direct and personal.
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In advertising, the sponsor or company is identified.
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Which of the following statements is true of the characteristics of the elements in a promotional mix? a. The speed of feedback is delayed in sales promotion, advertising, and personal selling. b. Message flexibility is greatest with advertising. c. The message flow is two-way in public relations, sales promotions, and personal selling. d. Important promotional ingredients tend to receive the most funding.
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Important promotional ingredients tend to receive the most funding.
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Cover Board Inc. is a company that designs and prints advertisements on coffee sleeves used on cups sold in coffee shops. To find clients to advertise on the coffee cup sleeves, the company sends a representative to other companies to explain them the benefits of advertising on these sleeves. In this case, which of the following promotional strategies is used by Cover Board Inc.? a. Mass communication b. Implicit communication c. Personal selling d. Sales promotion
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Personal selling
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Which of the following statements is true of advertising? a. The total costs of advertising are typically low. b. The messages in advertising are personalized. c. The cost per contact in advertising is low. d. Innovative media are not used in advertising.
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The cost per contact in advertising is low.
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Which of the following statements is true of the AIDA model? a. It explains why public relations is the most important element in a promotional mix. b. It explains how all promotions influence purchase decisions. c. It discusses how consumers respond to marketing messages. d. It talks about marketing activities other than advertising, personal selling, and public relations.
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It discusses how consumers respond to marketing messages.
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The AIDA concept: a. does not include personal selling, advertising, and public relations. b. does not explain how all promotions influence purchase decisions. c. assumes that consumers regularly go through each stage of the process during all purchases. d. indicates that a purchase decision is the same for high-involvement and low-involvement products.
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does not explain how all promotions influence purchase decisions.
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Two popular beverage manufacturing companies in different countries merge together to gain strategic advantages. The merger gives each brand access to a significantly larger market. To effectively reach both markets, the merged company needs to coordinate its promotional mix to produce a consistent, unified, and customer-focused message. In other words, the company needs to use: a. the AIDA model for product promotion. b. integrated marketing communications. c. transformational marketing. d. creative selling.
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integrated marketing communications.
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The use of aggressive personal selling and trade advertising by a manufacturer to convince a wholesaler or a retailer to carry and sell particular merchandise is known as a _____ strategy.? a. strong-arm? b. ?kinetic c. ?pull d. push
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push
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An advertisement in a trade magazine targeted toward veterinarians urges them to prescribe the drug Hepato for cats and dogs with damaged livers. This advertisement was placed by the product's manufacturer. This advertisement is an example of how manufacturers use a(n) _____ strategy.? a. kinetic? b. ?pull c. ?push d. advertorial
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push
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A manufacturer using the _____ promotional strategy focuses its promotional efforts on end consumers.? a. ?reinforcement b. ?personal selling c. ?push d. ?pull
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pull
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The promotional mix elements that should be emphasized for products moving into the growth stage of the product life cycle are: a. public relations and reminder advertising. b. sales promotion and public relations. c. personal selling and persuasive advertising. d. sales promotion and personal selling.
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personal selling and persuasive advertising.
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Which of the following is a difference between a push and a pull strategy? a. Social media is used in a push strategy, while personal selling is used in a pull strategy. b. End consumers are targeted in a push strategy, while wholesalers are targeted in a pull strategy. c. Push strategies focus on content marketing, while pull strategies focus on personal selling. d. Retailers are targeted in a push strategy, while opinion leaders are targeted in a pull strategy.
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Retailers are targeted in a push strategy, while opinion leaders are targeted in a pull strategy.
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Which of the following is true of a target market characterized by widely scattered potential customers, highly informed buyers, and brand-loyal repeat purchasers? a. It requires a promotional mix with more social media and less sales promotion. b. It requires a promotional mix with more personal selling and less advertising. c. It requires a promotional mix with more advertising and less personal selling. d. It requires a promotional mix with more sales promotion and less social media.
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It requires a promotional mix with more advertising and less personal selling.
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When a product is in the growth stage of its product life cycle, it is necessary to ensure that: a. all elements of the promotional mix are equally utilized. b. advertising and public relations continue to remain important. c. persuasive and reminder advertising are decreased. d. personal selling is reduced to a large extent.
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advertising and public relations continue to remain important.
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Which of the following types of advertisements is likely to be more successful in transforming a person's negative attitude toward a product into a positive one? a. Advertisements aimed at changing the person's deep-rooted values b. Advertisements emphasizing luxury c. Humorous advertisements d. Dramatic advertisements
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Dramatic advertisements
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If an advertiser wants to enhance the sales of a specific good or service, _____ advertising should be used.? a. ?institutional b. ?product c. ?corporate d. ?advocacy
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product
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Kraft's marketing efforts for its Macaroni ; Cheese include paid television commercials and magazine inserts. These are examples of activities associated with: a. advertising. b. franchising. c. personal selling. d. nonstore retailing.
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advertising.
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Why do brands with a large market share spend proportionally less on advertising compared to brands with a small market share? a. Diminishing returns set in beyond a certain level of spending for advertising. b. Certain industries have a practice of spending more for sales than for advertising. c. A minimum level of exposure is required for advertising to have an effect on sales. d. Advertising will not stimulate economic growth for the industry.
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Diminishing returns set in beyond a certain level of spending for advertising.
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The advertising response function helps marketers: a. create ads that will be noticed by consumers each time the ad runs. b. use their advertising budgets wisely. c. calculate the break-even points for each product being advertised. d. determine the reach and frequency of a specific medium
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use their advertising budgets wisely.
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Which of the following is true of pioneering advertising? a. It offers consumers in-depth information about the benefits of a new product. b. It is highly used during the growth stage of the product life cycle. c. It focuses on influencing demand for a specific brand. d. It is used mainly to compare brands on one or more specific attributes.
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It offers consumers in-depth information about the benefits of a new product.
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Which form of advertising is designed to influence demand for a specific brand? a. Institutional advertising b. Advocacy advertising c. Competitive advertising d. Pioneering advertising
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Competitive advertising
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_____ is a form of advertising designed to enhance a company's image rather than promote a particular product.? a. ?Institutional advertising b. ?Pioneering advertising c. ?Competitive advertising d. ?Comparative advertising
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?Institutional advertising
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Ads for Brita LED Lightings use comparative advertising to emphasize the benefits of using LEDs over CFLs. The ads emphasize that LEDs last longer, consume lesser energy, and need to be replaced fewer number of times than CFLs. In this case, what kind of appeal is used by these ads? a. Admiration b. Vanity and egotism c. Health d. Profit
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Profit
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Duski, a very expensive brand of clothing and accessories, promotes its products by using advertisements that feature beautiful women wearing its products. What kind of an advertising appeal is used by Duski? a. Environmental consciousness b. Vanity and egotism c. Health d. Profit
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Vanity and egotism
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Ads for Gelly candy feature children enjoying the candies with their parents during family trips. Which of the following executional styles of advertising is used by these ads? a. Slice-of-life b. Lifestyle c. Animated product symbol d. Demonstration
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Slice-of-life
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An advertising campaign: a. may contain a wide variety of themes and slogans. b. extends for a defined period of time. c. acts as a base for defining an advertising objective. d. starts with determining the appropriate media for the campaign.
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extends for a defined period of time.
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Which of the following is a difference between an attribute and a benefit of a product? a. An attribute is what consumers achieve by using a product, while a benefit is a characteristic of a product. b. An attribute is a temporary part of a product, while a benefit is always associated with a product. c. An attribute is bought by consumers, while a benefit is not bought by consumers. d. An attribute is a feature of a product, while a benefit is what consumers receive by using a product.
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An attribute is a feature of a product, while a benefit is what consumers receive by using a product.
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Which of the following best describes message execution? a. It is the way an advertisement portrays its information. b. It is the series of steps taken by marketers to finalize a product's unique selling proposition. c. It is the process where a manufacturer and retailer split the costs of advertising the manufacturer's brand. d. It is the manner in which consumers interpret an advertisement.
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It is the way an advertisement portrays its information.
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A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals is referred to as a(n): a. advertising campaign. b. advertising objective. c. media schedule. d. infomercial.
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advertising campaign.
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A disadvantage of newspaper advertising is that it has _____. ? a. ?low geographic selectivity and flexibility b. limited color capabilities c. ?low individual market coverage d. ?high lead time
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limited color capabilities
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A(n) _____ is the channel used to convey a message to a target market.? a. ?medium b. ?product network c. attribute d. ?appeal
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medium
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Meek's Hunting Emporium is a retail store that sells equipment required for hunting. It has established an advertising plan that allows it to advertise every day prior to the opening of quail, deer, and turkey hunting seasons on four local radio stations, as well as in the local newspapers. This is an example of: a. message execution. b. a media profile. c. audience selectivity. d. a media schedule.
answer
a media schedule.
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_____ is the series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost-effectively communicate the message to the target audience.? a. ?Promotional implementation b. ?Media mix c. Media planning d. ?Market segmentation
answer
Media planning
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Which of the following is an advantage of using cost per contact to determine the media mix for a product? a. It allows advertisers to increase an ad's effectiveness by reaching a limited number of people. b. It enables an advertiser to compare the relative expenses of specific media vehicles. c. It requires advertisers to pay only for the customers who view their ad. d. It allows marketers to minimize the cost of advertising by reaching a larger number of people.
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It enables an advertiser to compare the relative expenses of specific media vehicles.
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_____ is the cost of reaching one member of the target market.? a. Cost per click b. Cost per thousand c. Pay for order d. ?Pay for placement
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Cost per thousand
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A thirty-minute or longer advertisement that looks more like a television talk show than a sales pitch is known as a(n) _____.? a. advocacy advertisement b. premium c. trade sales promotion d. ?infomercial
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infomercial
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A(n) _____ designates the channel to be used, the specific vehicles, and the insertion dates of advertising.? a. advertising response function b. media schedule c. AIDA plan d. ?ad outline
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media schedule
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_____ is the element in the promotional mix that evaluates people's attitudes, identifies issues that may elicit their concern, and executes programs to gain their understanding and acceptance.? a. Personal selling b. Advertising c. Sales promotion d. Public relations
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Public relations
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_____ is the effort to capture media attention—for example, through articles or editorials in publications or through human-interest stories on radio or television programs.? a. Personal selling b. Advertising c. Sales promotion d. Publicity
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Publicity
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Which of the following is an example of publicity? a. Neon Power, a manufacturer of electronic goods, uses its salesforce to sell directly to its customers. b. Silky Blue, an apparel store, announces huge discounts on its products for the year-end sale. c. The Blue Bird, a daily newspaper, publishes a review about the latest model car from Storm, a car manufacturing company. d. Neil's Food Factory, a manufacturer of food products, relies largely on paid-for advertisements on television for its products.
answer
The Blue Bird, a daily newspaper, publishes a review about the latest model car from Storm, a car manufacturing company.
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Kelly's Kitchen, a popular chain of fast food restaurants, offers a kids' meal pack free with every purchase of its luxury meal pack. This is an example of a: a. trade allowance. b. loyalty marketing program. c. rebate. d. premium.
answer
premium.
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Kriyoto Inc. is a retailer of printers, scanners, and other office equipment. It announced a cash refund for corporate purchases in quantities more than ten. Rick purchased ten color printers for his office from Kriyoto during this sale. To avail the cash refund, he had to mail in a proof of purchase, purpose of purchase, proof of his company's legality, and his cash register receipt. In this case, Rick has received a: a. premium. b. trade allowance. c. push money. d. rebate.
answer
rebate.
question
Which of the following is a similarity between trade sales promotion and consumer sales promotion? a. Both focus on providing incentives to consumers or wholesalers to make an immediate purchase. b. Both focus on providing push money and trade allowance to loyal consumers. c. Both aim to increase sales by using point-of-purchase display. d. Both aim to segment a market based on its characteristics.
answer
Both focus on providing incentives to consumers or wholesalers to make an immediate purchase.
question
Personal selling is more important than advertising and sales promotion if the products being sold: a. are standardized. b. have many consumers. c. have a low value. d. are technically complex.
answer
are technically complex.
question
When compared to other forms of promotion, personal selling: a. becomes more important as the number of potential customers increases. b. tends to be more effective in selling frequently purchased products. c. gives more freedom for the sales message to be customized according to the interests of the prospective customers. d. provides better prospects for the sale of simple, low-involvement products that require little thought before purchase.
answer
gives more freedom for the sales message to be customized according to the interests of the prospective customers.
question
How can personal selling reduce the costs of promoting a product or service? a. By promoting a product to both qualified and nonqualified prospects b. By promoting undifferentiated sales messages toward prospective consumers c. By purchasing advertising and sales promotions in large amounts d. By adjusting the size of the sales force in one-person increments
answer
By adjusting the size of the sales force in one-person increments
question
Maggie's Apparel Inc. is a store that offers customized shopping, whereby consultants pick clothing they feel will fit a customer's style and specified need. This scenario most likely illustrates _____. a. personal selling b. price-based selling c. seasonal marketing d. word-of-mouth marketing
answer
personal selling
question
Mandy's Packaging Inc. is a multibillion-dollar supplier of packaging materials. One of its salespeople rearranged production schedules at three different plants to satisfy an unexpected demand for boxes from a major client. The salesperson's action is typical of the company's sales philosophy and indicates an emphasis on _____. a. price-based selling b. relationship selling c. adaptive selling d. persuasive selling
answer
relationship selling
question
_____ is a sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships. a. Price-based selling b. Adaptive selling c. Stimulus-response selling d. Relationship selling
answer
Relationship selling
question
Kay and Jenny's, a restaurant, has implemented a new system that identifies and gathers information about its regular customers. It rewards the regular customers by giving them gift coupons and cash prizes. This is most likely an example of a(n) _____ system. a. organizational optimization b. profit maximization c. total quality management (TQM) d. customer relationship management (CRM)
answer
customer relationship management (CRM)
question
_____ is the ultimate goal of a new trend in marketing that focuses on understanding consumers as individuals instead of as part of a group. a. Organizational optimization b. Profit maximization c. Total quality management (TQM) d. Customer relationship management (CRM)
answer
Customer relationship management (CRM)
question
_____ involves developing product or service offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships. a. Transaction management b. Campaign management c. Lead generation d. Lead qualification
answer
Campaign management
question
_____ is the point at which a customer and a company representative exchange information and develop learning relationships. a. Lead generation b. An intervention c. Lead qualification d. An interaction
answer
An interaction
question
Salespeople ensure that delivery schedules are met, that the products or services perform as promised, and that buyers' employees are trained to use the products in the _____ step of the selling process. a. preapproach b. needs assessment c. lead qualification d. follow-up
answer
follow-up
question
AutomatedFry Inc. is the leading manufacturer of ventless deep fryers. It has developed a new high-capacity fryer. To identify the prospective clients for its latest product, it sends out brochures to thousands of food-service managers along with a detachable card that the managers can use to request more information. Based on this information, AutomatedFry Inc. is involved in the _____ step of the selling process. a. needs assessment b. lead generation c. sales presentation d. knowledge management
answer
lead generation
question
_____ systems free sales representatives from the time-consuming task of following up on leads to determine need, buying power, and receptiveness. a. Prequalification b. Database mining c. Referral d. Cold calling
answer
Prequalification
question
During the preapproach stage of the selling process, a salesperson should: a. provide information about various referrals and discounts available. b. learn as much as possible about a prospect's organization and its buyers. c. create point-of-purchase displays. d. handle price objections and close the sale.
answer
learn as much as possible about a prospect's organization and its buyers.
question
_____ is a process of finding out about potential clients from friends, business contacts, coworkers, acquaintances, and fellow members in professional or civic organizations. a. Campaign management b. Networking c. Negotiation d. Needs assessment
answer
Networking
question
_____ involves determining the recognized need, buying power, and receptivity and accessibility of a sales prospect. a. Negotiation b. Customization c. Lead reciprocity d. Lead qualification
answer
Lead qualification
question
A sales manager at Guilden Corporation, a manufacturer of consumer durable goods, has instructed his new salesperson, Rita, to sell five flat screen televisions per week. In addition to this, she is also expected to identify ten potential customers. These instructions given to Rita are referred to as _____. a. referrals b. sales leads c. quotas d. touch points
answer
quotas
question
Which of the following is part of defining the sales goal of a company? a. Assigning quotas to salespeople b. Evaluating the sales force c. Training new salespeople d. Designing the sales force structure
answer
Assigning quotas to salespeople
question
Effective sales management begins with: a. determining sales goals. b. determining the most efficient structure for the sales force. c. specifying the sales force size. d. designing a compensation plan.
answer
determining sales goals.
question
Marla, a 55-year-old woman, wants to stay in touch with her son, who is away at college. She also hopes to connect with some of her high school friends. Which of the following is Marla most likely to use for this purpose? a. SoundCloud b. YouTube c. Facebook d. Flickr
answer
Facebook
question
Which of the following changes has been brought about in advertising because of the influence of social media? a. The number of ways in which marketers can have direct and meaningful conversations with customers has reduced. b. The focus of social media has unavoidably shifted to manufacturers. c. The interaction between producer and consumer has become less about engaging and more about entertaining. d. The audience is often in control of the message, the medium, the response, or all three.
answer
The audience is often in control of the message, the medium, the response, or all three.
question
Felosky Inc., an animal-welfare organization that specializes in cats-care, uses its Facebook page to find cat veterinarians, cat-food providers, and care takers, who could collaborate with the team to work on a project. The process used by Felosky Inc. is known as _____. a. personal selling b. social media monitoring c. crowdsourcing d. media sharing
answer
crowdsourcing
question
Which of the following is true of social media? a. It cannot be compared to traditional advertising in any meaningful way. b. It offers a mass-media method of interacting with customers. c. It has less sophisticated ways of measuring how marketers meet and interact with consumers than traditional advertising. d. It offers more one-to-one ways to meet consumers than traditional marketing media.
answer
It offers more one-to-one ways to meet consumers than traditional marketing media.
question
Crowdsourcing describes: a. how the input of many people can be leveraged to make decisions that used to be based on the input of only a few people. b. how the level of buzz created for a product can be used as a measurable parameter for determining the product's effectiveness. c. the methods in which a consumer should use a product or service. d. the need for consumers to buy a product and their willingness to buy it.
answer
how the input of many people can be leveraged to make decisions that used to be based on the input of only a few people.
question
_____ is the process of identifying and assessing what is being said about a company, individual, product, or brand. a. Media planning b. Crowdsourcing c. Social media monitoring d. Networking
answer
Social media monitoring
question
Angela and Dominic own Slice Pizzeria. They keep track of the number of mentions their store receives on sites like Twitter and Facebook, but they are unsure of what steps to take next. Based on the eight stages of effective listening, Angela and Dominic are currently in the _____ of developing an effective listening system. a. stage 1 b. stage 2 c. stage 3 d. stage 4
answer
stage 2
question
Kelly's Kitchen strives to improve its customer service and make sure its customers enjoy the food and ambience. It has a team dedicated to keep track of customers' opinion about Kelly's kitchen on popular food review sites and other Web sites. It tries its best to incorporate any changes suggested by its customers on such sites. This scenario illustrates _____. a. relationship selling b. social media monitoring c. market segmentation d. social commerce
answer
social media monitoring
question
The first action a marketing team should take when initiating a social media campaign is: a. establish a listening platform. b. identify the medium for the campaign. c. identify potential consumers. d. decide which tools and platforms to use as part of its social media strategy.
answer
establish a listening platform.
question
In the context of the eight stages of effective listening, which of the following is a purpose of stage one, listening without objectives? a. Identifying influencers to improve overall marketing strategy b. Measuring impact of satisfaction or frustration during interaction c. Generating high sense of satisfaction for customers d. Keeping up with brand and competitor information
answer
Keeping up with brand and competitor information
question
Social media measurements are meaningless if: a. they require further processing. b. they are tied to performance indicators. c. they are taken from many sources. d. they lack context.
answer
they lack context.
question
Which type of social media user posts comments, ratings, and reviews of products and services on blogs and forums? a. Critics b. Spectators c. Joiners d. Inactives
answer
Critics
question
Which of the following best describes a collector? a. A person who posts comments, ratings, and reviews of products and services on blogs and forums b. A person who produces content for blogs, Web sites, articles, and videos c. A person who uses RSS feeds to gather information and vote for Web sites online d. A person who posts status updates on social networking sites and microblogging services
answer
A person who uses RSS feeds to gather information and vote for Web sites online
question
Monette has posted over 100 book reviews on Amazon.com. She also frequently reviews products and services on Epinions and posts her reviews of local restaurants on Yelp. As a social media user, Monette would best be characterized as a _____. a. joiner b. spectator c. critic d. collector
answer
critic
question
Bethany follows several blogs every day and uses YouTube frequently to watch latest videos. She does not have her own Web site, and she almost never posts any comments on the sites she visits. She just enjoys reading and watching the content on popular sites. Bethany would be best characterized as a _____. a. creator b. spectator c. collector d. joiner
answer
spectator
question
Social bookmarking sites differ from social news sites in that: a. the objective of their users is to collect, save, and share interesting and valuable links. b. they allow users to edit the stories they find for accuracy. c. the ability of users to share, post, or discuss a topic is very limited. d. they treat location-based social networking as a game.
answer
the objective of their users is to collect, save, and share interesting and valuable links.
question
TwitPic, Flickr, and Photobucket are all examples of: a. media sharing sites. b. corporate blogs. c. virtual worlds. d. microblogs.
answer
media sharing sites.
question
Which of the following is a location-based social networking site? a. Facebook b. Twitter c. WordPress d. FourSquare
answer
FourSquare
question
By far, the largest social network for gaming is: a. Twitter. b. LinkedIn. c. SnapChat. d. Facebook.
answer
Facebook.
question
Which of the following is true of brands, organizations, and nonprofits that use Facebook? a. They have thus far been unsuccessful in their attempts to use the platform to create viral marketing campaigns. b. Their pages are public and are thus subject to search engine indexing. c. They are restricted from communicating directly with fans and interested stakeholders due to risks of hacking. d. Their ability to optimize search engine results is very low.
answer
Their pages are public and are thus subject to search engine indexing.
question
A popular production house wants to release a teaser of one of its upcoming movies to create a buzz among the public. Which of the following is the best platform that can be used by the studio? a. Picasa b. Photobucket c. YouTube d. Imgur
answer
YouTube
question
Francis, a restaurant chain's social media manager, wants to conduct an online contest to promote his restaurant. He conducts the contest in a social networking site which allows people to post only 140-characters long updates. In this context, Francis has used -_____ to conduct the contest. a. social review sites b. media sharing sites c. private blogs d. microblogs
answer
microblogs
question
Much of the growth in social media sites can be attributed to: a. good old-fashioned word-of-mouth promotion. b. new platforms like tablets and smartphones. c. media hype. d. reduced demand for crowdsourcing.
answer
new platforms like tablets and smartphones.
question
Short message service (SMS) is different from multimedia messaging service (MMS) in that: a. SMS allows 960-character text messages, while MMS allows 160-character text messages. b. SMS is designed specifically for viewing and navigation on mobile devices, while MMS does not have such features. c. SMS does not allow the attachment of images, videos, and ringtones to text messages, while MMS allows. d. SMS does not require Internet, while MMS requires Internet for functioning.
answer
SMS does not allow the attachment of images, videos, and ringtones to text messages, while MMS allows.
question
Which of the following actions is performed during the final stage of an effective social media plan? a. Setting objectives that can be specifically accomplished through social media b. Examining trends and best practices in the industry c. Listening to customers and understanding their expectations d. Making changes to a newly implemented campaign based on consumer response
answer
Making changes to a newly implemented campaign based on consumer response
question
Which of the following is the first stage involved in creating an effective social media plan? a. Listening to customers b. Setting social media objectives c. Defining strategies d. Identifying the target audience
answer
Listening to customers
question
At Starmart, Riya saw a box of collector's edition comic books. Each book was priced at $28.50, but a customer who bought five of the books was required to pay only $19.99 for each book. Riya bought one book and her friend bought five books. What was the retailer's revenue from this purchase? a. $158.51 b. $19.99 c. $28.50 d. $128.45
answer
$128.45
question
Which of the following trends in the consumer market has increased the difficulty of setting the right price for a product? a. The unwillingness of many firms to maintain or regain their market share by cutting prices b. The decreased availability of bargain-priced private and generic product brands c. The careful evaluation of each product's price against its value by potential buyers d. The inability of consumers to do comparison shopping
answer
The careful evaluation of each product's price against its value by potential buyers
question
At a local retail store, Randi saw a bag of daffodil flower bulbs and a box of plant fertilizer. The items, which were sold together, retailed at $28.50 but were marked down to $19.99. The $19.99 is the: a. revenue. b. price. c. profit. d. liquidity value.
answer
price.
question
Consumers are more likely to perceive the value of a product to be less than its cost if: a. the product's price is set too high. b. the product's manufacturer gains very little profit from the product. c. the product has an inelastic demand. d. the product's demand and supply attain the state of price equilibrium.
answer
the product's price is set too high.
question
At the end of summer, the Gloomin' Garden Inc. reduced the price on all of its plants, fertilizers, and potting soil by 50 percent in order to liquidate this inventory. What type of pricing strategy has been used by Gloomin' Garden Inc.? a. Supply oriented pricing b. Sales maximization c. Target return on investment d. Satisfactory profit
answer
Sales maximization
question
Jaggd Inc., an electronic goods manufacturing company, was planning to launch its latest smartphone in the market. Within the first few days of launching the phone, Jaggd wanted to earn as much revenue as the cost incurred in manufacturing the phone. So, it priced the phone about as high as the market would allow. In this case, Jaggd entered the market with a _____ approach to pricing the smartphone. a. market share pricing b. profit maximization c. demand-oriented d. sales maximization
answer
profit maximization
question
Pierre's Ice Cream Company produces ultra-rich ice cream, which it sells in Cleveland, Ohio, and other neighboring places. Last year, its actual return on investment exceeded its target return on investment (ROI) for that fiscal year. The following results were found on its financial statements: Gross revenues: $250,000 Total assets: $500,000 Gross profits: $100,000 Total liabilities: $200,000 Net profits after tax: $ 50,000 Owner's equity: $300,000 What was the actual ROI for Pierre's Ice Cream Company? a. 6.67 percent b. 10 percent c. 22 percent d. 28 percent
answer
10 percent
question
Profit-oriented pricing objectives include: a. target return on investment. b. target market share. c. sales maximization. d. status quo pricing.
answer
target return on investment.
question
GoodFurn Furniture Company has recently moved to a new, larger location. At the new location, it has been unable to attract sufficient customers. Its owner did not have the cash to pay the current loan installment due for the building and inventory. So, he decided to reduce all merchandise prices by at least 50 percent for a weekend sale to earn enough to make his loan payment. In this case, the owner's pricing objective can be classified as: a. market share maximization. b. satisfactory profits. c. asset maximization. d. sales maximization.
answer
sales maximization.
question
For convenience, pricing objectives can be divided into three categories. They are: a. refundable, competitive, and attainable. b. perceived, actual, and situational. c. differentiated, niche, and undifferentiated. d. profit oriented, sales oriented, and status quo.
answer
profit oriented, sales oriented, and status quo.
question
Britney is fifteen years old and wants to begin her own business selling cupcakes to coffee shops and restaurants. She is having a tough time deciding whether she should express her market share in terms of the revenue generated or the number of cupcakes sold. Regardless of what she chooses, which of the following types of pricing objectives is Britney considering? a. Status quo pricing b. Profit oriented c. Target return on investment d. Sales oriented
answer
Sales oriented
question
Which of the following is an advantage of status quo pricing? a. It leads to optimal pricing of a product. b. It maintains an organization's differential advantage. c. It gives greater importance to the demand and costs of a product. d. It requires little planning.
answer
It requires little planning.
question
Liquiction Pool and Patio Inc. is a company known for its quality pool installations, excellent customer service, and reasonable prices. Given the demand, Liquiction could price its products higher, but it prefers to price its products such that it will earn a reasonable level of profits. Liquiction seems to base its pricing policy on: a. profit maximization. b. earning satisfactory profits. c. creating retained earnings. d. maintaining a status quo pricing.
answer
earning satisfactory profits.
question
Diffusion Research Company specializes in conducting market research for various firms. When it receives proposals for new research, its management will first estimate the cost of conducting the research and producing and delivering the final research report. The management then adds 30 percent to that cost estimate. This becomes the price estimate given to the potential research client. This suggests that Diffusion Research Company uses a _____ pricing objective. a. profit-oriented b.market share maximization c. status quo d. sales maximization
answer
profit-oriented
question
At a price of $2,000, the demand for Ranger 60 mountain bikes from Cloyd's Inc. is 300, but only 191 bikes are being made. At a price of $2,300, the demand for the bikes is 250, and exactly 250 bikes are being made. If Cloyd'ssells each one of the bikes at a price lower than $2,300, _____. a. a shortage of bikes will be created b. the number of bikes being made will increase drastically c. an inelastic demand for the bikes will be created d. the demand and supply for the bike will attain equilibrium
answer
a shortage of bikes will be created
question
When the price of a product is set at a level where demand and supply are the same, a state of _____ has been achieved. a. price equilibrium b. stability c. inelastic demand d. symmetry
answer
price equilibrium
question
What happens when demand is elastic? a. As price goes up, revenue goes down. b. As price goes down, revenue goes down. c. As price goes up, revenue goes up. d. As price goes up, revenue does not change.
answer
As price goes up, revenue goes down.
question
When consumer demand is sensitive to price changes, _____ occurs. a. inelastic demand b. sales maximization c. elastic demand d. profit maximization
answer
elastic demand
question
The quantity of a product that people will buy is most likely to decrease as the product's _____ increases. a. distribution b. quality c. price d. promotion
answer
price
question
Although many factors can influence the price of a product, the primary determinants are: a. the costs of manufacturing and distributing the product. b. the demand for the product and the cost to the seller for the product. c. the demand by consumers and the perceived quality of the product. d. the distribution and promotion strategies for the product.
answer
the demand for the product and the cost to the seller for the product.
question
Dynamic pricing is used to: a. implement bait pricing to get more loyal customers. b. perform price discrimination among its customers. c. raise prices to maximize a company's revenues. d. attain price equilibrium.
answer
raise prices to maximize a company's revenues.
question
Why are more and more companies turning to dynamic pricing? a. To help adjust prices b. To implement bait pricing c. To implement free on board origin pricing d. To establish inelasticity of demand
answer
To help adjust prices
question
Which of the following statements is true about yield management systems (YMS)? a. They are used to eliminate the problem of simultaneous production and consumption from services. b. They are restricted to use only in service industries. c. They are complex pricing systems used to establish price equilibrium. d. They are used to make profitable use of the unused capacity of perishable goods.
answer
They are used to make profitable use of the unused capacity of perishable goods.
question
Yield management systems are used to: a. determine the availability of product substitutes in industries that are experiencing rapid change. b. profitably fill unused capacity by using complex mathematical systems. c. predict necessary service levels required to achieve revenue goals. d. determine whether it is financially more feasible to buy a new product or repair a broken one.
answer
profitably fill unused capacity by using complex mathematical systems.
question
A cost that changes with the level of output is called a(n) _____ cost. a. liquidity b. variable c. fixed d. indirect
answer
variable
question
_____ costs do not change as output is increased or decreased. a. Marginal b. Variable c. Fixed d. Total
answer
Fixed
question
Which of the following is true about shopping bots? a. They encourage a more creative use of advertising. b. They create opportunities for prestige pricing. c. They search the Web for the best price for a product. d. They create inelastic demand.
answer
They search the Web for the best price for a product.
question
Which of the following is a similarity between broad-based shopping bots and niche-oriented shopping bots? a. Both search restricted government Web sites. b. Both operate using a Yellow Pages type of model in that they list every retailer they can find. c. Both search for only one type of product. d. Both theoretically give pricing power to consumers.
answer
Both theoretically give pricing power to consumers.
question
When Jerry took delivery of his brand new Karuaf automobile, he was filled with pleasure and excitement as Karuaf is a very expensive brand. This is an example of the _____ effect associated with the price-quality relationship. a. durability b. allocative c. prestige d. hedonistic
answer
hedonistic
question
Shopping bots theoretically give pricing power to: a. consumers. b. wholesalers. c. retailers. d. agents.
answer
consumers.
question
Randy's Apparels Inc. plans to expand its customer base and product line. It introduces a new line of designer wear that are very expensive and exclusively available at Randy's. It emphasizes the high quality and exclusivityof this new line of products in its advertisements. In this case, Randy's Apparels has used _____ for the new line of products. a. predatory pricing b. leader pricing c. bait pricing d. prestige pricing
answer
prestige pricing
question
Which of the following is true of products in the introduction stage of their life cycle? a. Their prices will rise dramatically as they move into the specialty goods category. b. They experience price increases that are cost initiated. c. Their prices are usually set high. d. They experience an elastic demand in the core of the market.
answer
Their prices are usually set high.
question
During the hot summer months, the Nick Price Golf School offers a 25 percent reduction on its golf lessons to attract golfers during the off-season. Which of the following is exemplified in this scenario? a. The power of yield management systems b. The advantage of markup pricing c. The relationship between price and quality d. The use of price as a promotional tool
answer
The use of price as a promotional tool
question
Which of the following is a pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion? a. Penetration pricing b. Price skimming c. Price discrimination d. Status quo pricing
answer
Price skimming
question
A price skimming strategy is most often used for a new product when: a. competition in the market is abundant. b. customers are unwilling to spend a large amount of money on the product. c. its supply is greater than its demand. d. the product is perceived as having unique advantages.
answer
the product is perceived as having unique advantages.
question
Before estimating how much profit and how much market share can be earned at each possible price of a product, a company is most likely to: a. choose the Return on Investment (ROI) target. b. determine the corresponding costs for each price. c. estimate industry supply. d. implement pricing segmentation.
answer
determine the corresponding costs for each price.
question
The marketing manager of pickacruise.com (a travel Web site targeted at consumers who want a luxury vacation) finds that the firm can increase its market share and become the industry leader if it slashes prices by 50 percent during the month of December. However, the Vice President of the finance department is committed to reporting a 25 percent Return on Investment (ROI) at all times, which cannot be achieved if the firm slashes its prices. This conflict illustrates: a. a need to eliminate low-profit products. b. a lack of competition in the marketplace. c. how pricing operates in an ideal marketplace. d. the need for trade-offs in pricing objectives.
answer
the need for trade-offs in pricing objectives.
question
When Lofonift Inc. introduced its flagship product, an MP3 player, it captured the MP3 player market by offering its product at the lowest price in the market. This forced many of its competitors out of business. In this scenario, Lofonift Inc. most likely indulgedin _____. a. predatory pricing b. price discrimination c. status quo pricing d. price fixing
answer
predatory pricing
question
Which of the following acts prohibits a firm from selling to two or more different buyers, within a reasonably short time, commodities (not services) of like grade and quality at different prices where the result would be to substantially lessen competition? a. The Federal Trade Commission Act b. The Food and Drug Administration Act c. The Sherman Act d. The Robinson-Patman Act
answer
The Robinson-Patman Act
question
Univ Airlines and Mirago Airlines are two competing airlines. They make an agreement to charge customers a certain price for airfreight. This leads to the filing of several lawsuits against them by other airlines. In this scenario, the two firms most likely indulged in _____. a. penetration pricing b. price skimming c. price fixing d. odd-even pricing
answer
price fixing
question
Unfair trade practice acts were enforced to: a. ensure the adoption of the Sherman Act that makes bait pricing illegal. b. prevent oligopoly leaders from joining together and fixing prices at the highest rates that a market will allow. c. establish penalties for companies that break the Clayton Act by engaging in predatory pricing. d. protect small local firms from giant companies that operate efficiently on razor-thin profit margins.
answer
protect small local firms from giant companies that operate efficiently on razor-thin profit margins.
question
When executives from competing firms meet to decide which of them will submit the lowest bid on a contract, they are indulging in _____. a. price discrimination b. price fixing c. bait pricing d. penetration pricing
answer
price fixing
question
Acmell Lawnmowers Inc. sells its mowers to retailers at different prices depending on whether they are independent stores or members of a national chain. In this scenario, the company indulges in _____. a. penetration pricing b. price skimming c. price discrimination d. predatory pricing
answer
price discrimination
question
A _____ is the general level at which a company expects to sell a good or service. a. functional price b. base price c. premium price d. mark-up price
answer
base price
question
A _____ is a price reduction offered to buyers buying in multiple units or above a specified dollar amount. a. Trade discount b. cash discount c. seasonal discount d. quantity discount
answer
quantity discount
question
_____ is a price tactic that charges freight costs from a given point, regardless of the city from which the goods are shipped. a. Free on board (FOB) origin pricing b. Zone pricing c. Uniform delivered pricing d. Basing-point pricing
answer
Basing-point pricing
question
_____ is a price tactic that requires abuyer to absorb the freight costs of a product from the shipping point. a. Free on board (FOB) origin pricing b. Zone pricing c. Uniform delivered pricing d. Basing-point pricing
answer
Free on board (FOB) origin pricing
question
A _____ is a price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a bill. a. cash discount b. quantity discount c. functional discount d. seasonal discount
answer
cash discount
question
Used Car Center Inc. allows salespeople to charge different customers different prices for essentially the same automobile depending on how good the customer is at negotiating the price. In this scenario, the company uses a: a. two-part pricing tactic. b. price lining tactic. c. flexible pricing tactic. d. price skimming tactic.
answer
flexible pricing tactic.
question
99-Center Inc. is a retail store where all its merchandise ispriced at 99 cents. This retailer uses a _____. a. single-price tactic b. flexible pricing tactic c. price lining tactic d. price bundling tactic
answer
single-price tactic
question
_____ are costs that are shared in the manufacturing and marketing of several products in a product line. a. Overhead costs b. Fixed costs c. Joint costs d. Opportunity costs
answer
Joint costs
question
_____ are costs that are shared in the manufacturing and marketing of several products in a product line. a. Overhead costs b. Fixed costs c. Joint costs d. Opportunity costs
answer
Joint costs
