Marketing Final Practice Question Essay

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1. Manor Plaza Barber’s customers have noticed that the quality of a haircut depends on who provides it as well as when, where, and how it is provided. What have the customers noticed? A) service intangibility B) service inseparability C) service variability D) service perishability E) service distinction
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C
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2. ________ occurs when a company introduces additional items in a given product category under the same brand name, such as new flavors, forms, colors, ingredients, or package sizes. A) A line extension B) A brand extension C) Interactive marketing D) Service variability E) Service intangibility
answer

A
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3. What characteristic of services leads Airlines to engage in yield management (try to fill as many seats as possible even if profit on some seats is low? A) Intangibility B) Variability C) Inseparability D) Ubiquity E) Perishability
answer

E
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4. Purina Dog Chow sells more than the same size store brand dog food even though the store brand dog food costs $0.50 less per bag. This is probably due to its brand ________. A) extension B) equity C) specialty D) service E) switching
answer

B
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5. Which of the following is the most important for product designers to consider as they develop a product? A) which product features can be added to create higher-level models B) how the product appears C) what the product’s technical specifications are D) how customers will use and benefit from the product E) how the product is packaged to attract spontaneous purchases
answer

D
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6. The major purpose of test marketing is to provide management with the information needed to make a final decision about ________. A) how to develop a market strategy B) which market to compete in C) whether to launch the new product D) how to compete in the market E) how long to compete in the market
answer

C
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7. The early majority are deliberate; although they rarely are leaders, they adopt new ideas before the average person. A) True B) False.
answer

A
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8. Which of the following statements best explains why idea screening may be the most important step of new-product development? A) It increases the number of ideas generated. B) Some potentially profitable ideas may be ill perceived by the idea screeners. C) Some ideas that will become market disasters may be originally viewed favorably by the idea screeners. D) It gives research and development team members an opportunity to gather consumer feedback. E) It saves the company money in product development costs by giving the green light to only the product ideas that are likely to be profitable.
answer

E
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9. Why do profits increase during the growth stage of the PLC? A) Promotion costs are spread over a large volume. B) Unit manufacturing costs fall. C) Competition has not yet taken sales away. D) All of the above. E) None of the above.
answer

D
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10. Which product will most likely be intensively distributed? A) Olympus digital cameras B) BMW cars C) Guess blue jeans D) Coca-Cola E) Nike running shoes
answer

D
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11. Max Samuelson is a high-end fashion designer who markets his clothing lines through a limited number of highly reputable retailers. Max uses ________. A) exclusive distribution B) exclusive dealing C) exclusive territorial agreements D) full-line forcing E) tying agreements
answer

A
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12. With the widespread use of the Internet, there has been a trend to use fewer direct marketing channels. A) true B) false
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question

13. Tom Binns just received a call from his contract warehouse. They disagree as to who should do what and for what rewards. Tom is experiencing ________. A) channel delusion B) channel problems C) channel conflict D) channel mismanagement E) channel intermediation
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C
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14. Distribution channel decisions often involve ________ with other firms. A) short-term commitments B) long-term commitments C) major problems D) financial losses E) disagreements
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question

15. Natureview farm is a F) Coffeeroaster G) Free-range chicken farm H) Ice cream manufacturer I) Spa J) Yogurt manufacturer
answer

J
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16. The venture capital investors want A) Market share to grow to 20% B) Profits to grow to $20 million C) Revenue to grow to $20 million D) 20 million cows
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question

17. Natureview’s product has a longer shelf life than competitors A) true B) false
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question

18. Natureview is strongest in F) Thecollegestudentchannel G) The farmers market channel H) The food network I) The natural foods channel J) The supermarket channel
answer

I
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19. The natural foods channel involves more intermediaries (channel members) than the supermarket channel. A) true B) false
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question

20. An advantage of cost plus pricing is F) It accounts for competition G) It’s easy H) It guarantees you won’t lose money I) It is tied to the rest of the marketing mix J) It maximizes profit
answer

G
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21. Elastic demand refers to A) Giffen goods B) That for each 1% drop in price there is a greater than 1% increase in quantity demanded C) That for each 1% drop in price there is a less than 1% increase in quantity demanded D) The demand for rubber bands E) Wishy-washyconsumers
answer

B
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22. Product costs set a(n) ________ to the price a company can charge for its product(s). A) demand curve B) experience curve C) floor D) learning curve E) break-even cost
answer

C
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23. Rather than basing the price of a product on the seller’s costs, this method uses buyers’ perceptions of what a product is worth. A) Product image B) Value-based pricing C) Target costing D) Variable costs E) Priceelasticity
answer

B
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24. The case is about pricing A) High Speed Internet B) Personal computers C) Routers D) Smart phones E) Servers
answer

E
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25. PESA increases performance on certain tasks by up to A) 2 times B) 3 times C) 4 times D) 5 times E) 10 times
answer

C
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26. Traditionally Atlantic doesn’t charge for software tools. A) true B) false
answer

A
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27. Atlantic’s business model is based on A) Customer intimacy B) Product differentiation C) Operational excellence D) A & B E) A, B, & C
answer

D
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28. If UConn charges different tuition rates to in-state and out-of-state students, then UConn is practicing a form of: F) promotional pricing. G) institutional pricing. H) segmented pricing (price discrimination). I) psychological pricing J) dynamic pricing
answer

H
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29. Price is used less when judging the quality of a product when consumers ________. A) lack information B) lack skills to use it C) have experience with it D) either A or C E) none of the above
answer

C
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30. Accent Software faces the following conditions. All of these support Accent’s use of a market-penetration pricing strategy EXCEPT ________. A) the market is highly price sensitive B) production and distribution costs will fall as sales volume increases C) the product’s quality and image support a high price D) a low price would help keep out the competition E) A and C
answer

C
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31. Your company, in response to a competitor’s price change, can pursue any of four responses, including all of the following EXCEPT ________. A) reduce its price B) raise the perceived value of its offer C) improve quality and increase price D) lower the perceived quality while raising the price E) launch a low-price fighting brand
answer

D
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32. When companies fail to ________ their various communications channels, consumers may become confused. A) advertise B) integrate C) hodgepodge D) label E) utilize
answer

B
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33. Creating word-of-mouth campaigns by cultivating opinion leaders and getting them to spread information about a product or service to others in their communities is known as ________. A) sales promotion B) marketing C) buzz marketing D) pull strategy E) push strategy
answer

C
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34. Used poorly, ________ can detract from comprehension, quickly wear out its welcome, overshadow the product, or even irritate consumers. A) humor B) nonpersonal communication C) direct marketing D) integrated marketing E) noise
answer

A
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35. The _______ budget setting method is often preferred because it is the most logical method. It deals more with specific promotion goals and accomplishments. A) percentage-of-sales B) affordable C) competitive-parity D) objective-and-task E) exponential smoothing
answer

D
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36. When the objective is to build primary demand, such as when introducing a new product category, ________ is used heavily. A) Persuasive advertising B) Informative advertising C) Comparative advertising D) Patronage advertising E) Institutional advertising
answer

question

37. Advantages of using public relations (PR) over traditional advertising include A) Lower cost B) Higher credibility C) More control over message D) A & B E) A, B, & C
answer

D
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38. _________ is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time. A) Reach B) Qualitative value C) Format D) Premium E) Frequency
answer

A
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39. The limitations of television as an advertising medium include all of the following EXCEPT ________. A) High absolute costs B) High clutter C) Fleeting exposure D) Low cost per thousand E) Less audience selectivity
answer

D
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40. To increase the ROI of social media, marketers should identify and recruit A) Consumers B) Hockey players C) Influencers D) Responders E) Tweeters
answer

C
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41. It is possible to connect social media measures to sales revenue A) True B) False
answer

A
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42. Using social media exposes firms to negative feedback and criticism. A) True B) False
answer

A
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43. Reasons why some brands are reluctant to use social media include all of the following EXCEPT ________. A) Existing incentive structures B) Fear loss of control C) Greater authenticity of content D) Measurement concerns E) Worries about cost and time
answer

C
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44. The profit-and-loss (income) statement shows A) Actual financial performance B) Assets versus liabilities C) Earnings per share D) Industry wide trends E) Projected financial performance
answer

A
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45. The gross margin percentage is A) a measure of how disgusted watching an ad makes you feel B) gross margin divided by net sales C) gross margin divided by operating margin D) gross sales divided by profits E) the contribution margin in percentage terms
answer

B
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46. The inventory turnover rate measures A) How fast inventory moves through an organization B) The inverse of the inventory retention rate C) The number of apple turnovers in stock D) The number of turns and twists in an assembly line E) The speed of new inventions
answer

A
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47. Marketing Return on Investment (marketing ROI) refers to A) Hedge fund carried interest B) Net marketing contribution divided by marketing expenses C) Net marketing contribution divided by net sales D) Price divided by contribution margin E) Profit divided by cost of goods sold
answer

B

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