MKT 205-010 Principles of Marketing Final Exam Part 3 – Flashcards
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Ch. 10 Bon Vivant offers an assortment of exclusive French wines at incredibly low prices. These prices are nether limited-time offers nor special discounts, but represent the daily prices of products sold by Bon Vivant. This reflects Bon Vivant's ___ strategy. a. everyday low pricing b. markup pricing c. penetration pricing d. break-even pricing e. cost-based pricing
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a. everyday low pricing
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Ch. 10 Companies with lower costs ___. a. specialize in selling products with value-added features b. usually market products with inferior quality, thereby justifying the low selling price c. can set lower prices that result in smaller margins but greater sales and profits d. tend to overprice products owing to their monopolistic advantage e. usually set higher prices that result in higher margins
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c. can set lower prices that result in smaller margins but greater sales and profits
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Ch. 10 Costs that change with the level of production are referred to as ___. a. fixed costs b. variable costs c. target costs d. total costs e. overhead costs
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b. variable costs
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Ch. 10 A cell phone manufacturing firm produced 1,000 cell phones a day but believed that it could reasonably top up production to 2,000 cell phones a day. Consequently, it built a larger plant and installed efficient machineries and work arrangements to realize the projected output. Which of the following can most likely be inferred from this information? a. the unit cost of producing 2,000 cell phones per day would be twice that of the unit cost of producing 1,000 units per day b. a production plant with the capacity of producing 5,000 cell phones a day would be most efficient c. the unit cost of producing 2,000 cell phones per day would be lower than the unit cost of producing 1,000 units per day d. a 2,000-capacity production plant would be less efficient because of increasing diseconomies of scale e. the fixed costs of the firm are more likely to increase with the increase in output
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c. the unit cost of producing 2,000 cell phones per day would be lower than the unit cost of producing 1,000 units per day
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Ch. 10 BlendWell Inc., a firm manufacturing blenders, has fixed costs of $250,000, variable costs of $45 per unit of output, and expected unit sales of 50,000 units. What is the unit cost of a sandwich maker and manufactured by Herbie? a. $15 b. $25 c. $30 d. $50 e. $75
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d. $50
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Ch. 10 LG plans to launch a new phone with a unit cost of $360 and wants to earn a 10 percent markup (as a percentage of its selling price). Samsung's selling price is ___. a. $360 b. $390 c. $396 d. $400 e. $420
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d. $400
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Ch. 10 The break-even volume is the point at which ___. a. the total revenue and total cost curves intersect b. demand equals supply c. the production of one or more unit will not lead to increase in demand d. the company can pay off all its long-term debt e. a firm exceeds the sales forecast
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a. the total revenue and total cost curves intersect
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Ch. 10 Which of the following statements about break-even analysis is true? a. it is used to determine how much production experience a company must have in order to achieve desired efficiencies b. is it a technique used to calculate fixed costs c. it determines the amount of retained earnings a company will have during a given accounting period d. it is a technique marketers use to determine the relationship between supply and demand e. it is calculated by using variable costs, the unit price and fixed costs
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e. it is calculated by using variable costs, the unit price and fixed costs
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Ch. 10 A company faces fixed costs of $200,000 and variable costs of $8 per unit. It plans to directly sell its product in the market for $12. How How many units must it produce and sell to break even? a. 20,000 b. 25,000 c. 30,000 d. 40,000 e. 50,000
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e. 50,000
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Ch. 10 As a manufacturer increases the price, ___. a. efficiency drops b. the break-even volume drops c. competition is minimized d. the total costs increase e. the profit margin shrinks
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b. the break-even volume drops
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Ch. 10 The movie industry in a county is controlled by six large studios that receive 90 percent of the annual revenues from movies. This is an example of a(n)___. a. pure competition b. monopolistic competition c. oligopolistic competition d. pure monopoly e. government monopoly
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c. oligopolistic competition
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Ch. 10 If demand hardly changes with a small change in price, the demand is ___. a. variable b. inelastic c. highly elastic d. derived e. negative
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b. inelastic
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Ch. 10 Price elasticity of demand is represented by ___ divided by ___. a. percentage change in quantity demanded; percent change in price b. percentage change in units supplied; percentage change in price c. percentage change in price; percentage change in quantity demanded d. fixed costs; variable costs e. cost-plus; actual cost of production
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a. percentage change in quantity demanded; percent change in price
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Ch. 10 Boston Pharmaceuticals market PainFree, a pain reliever. The firm has fixed costs of $1,200,00 and variable costs of $3 per bottle of 50 tablets priced at $15 per bottle. What is the break-even volume in bottles? a. 25,000 b. 55,000 c. 100,000 d. 115,000 e. 125,000
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c. 100,000
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Ch. 10 A manufacturer has fixed costs of $100,000, variable cost of $12 per unit of output, and break-even volume of 50,000 units. What should the manufacturer's unit cost be in order to break even? a. $10 b. $12 c. $14 d. $16 e. $20
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b. $12
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Ch. 11 Midnight Magic, a perfume manufacturing company, plans to release a new fragrance during the holiday season at $99 per bottle. The company intends to bring the price down to $49 within six months of its release to attract buyers who couldn't afford the initial price. Which of the following pricing strategies is Midnight Magic using? a. market-penetration pricing b. market-skimming pricing c. competitive pricing d. cost-plus pricing e. product-line pricing
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b. market-skimming pricing
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Ch. 11 Electrowhip, a company that manufacturers blenders and electric whisks, has decided to use a market-penetration pricing strategy. Which of the following, if true, proves their decision to be a wise one? a. Electrowhip's competitors utilize social media for marketing their products b. Electrowhip sells products whose image and quality support high prices c. electrowhip operates in a market with many competitors d. Electrowhip does not operate in a price sensitive market e. Electrowhip's products are intended to appeal to the elite in society
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c. electrowhip operates in a market with many competitors
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Ch. 11 Multiprint, a printer manufacturing firm, sells ink cartridges for each of its specific models. Only Multiprint cartridges are comparable with Multiprint printers, and no two of the firm's models share the same specifications. What type of pricing does Multipoint use? a. product line pricing b. optional product pricing c. captive product pricing d. by-product pricing e. product bundle pricing
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c. captive product pricing
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Ch. 11 Which of the following companies uses product bundle pricing? a. Photo Genie, which sells inexpensive cameras that run only on their own, expensive, batteries b. Tune Zone, which launched a range of mp3 player models, each priced according to its features c. Penguin's Paror, which offers customers a 20% discounts on their birthdays d. Green Thumb, which gives away free watering cans with the purchase of certain potted plants e. Panizza, whose combo meals are priced lower than its individual components sold together
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e. Panizza, whose combo meals are priced lower than its individual components sold together
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Ch. 11 The New Age Gallery has three admission prices for students, adults, and seniors, even though all three groups are entitled to the same services. This form of pricing is called ___. a. psychological pricing b. product-form pricing c. customer-segmented pricing d. captive product pricing e. by-product pricing
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c. customer-segmented pricing
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Ch. 11 Which term refers to prices that buyers carry in their minds and check with when they look at the given product? a. product line prices b. reference prices c. location-based prices d. product-form prices e. time-based prices
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b. reference prices
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Ch. 11 Which of the following is true of price changes? a. over demand leads to companies initiating price cuts b. changes in price do not affect a brand's image c. customer reaction to price changes is not as important as competitor reaction d. a drop in price can adversely affect how consumers view the brand e. excess capacity is a factor which causes increases in price
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d. a drop in price can adversely affect how consumers view the brand
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Ch. 11 In response to price cuts from competitors, a cereal company with several more expensive and higher quality cereals introduced a lower-priced option to its product line. This is an example of which of the following responses to a competitor's price cut? a. raising the perceived value of a product b. improving product quality c. accepting a reduced market share d. launching a "fighter brand" e. using high-low pricing
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d. launching a "fighter brand"
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Ch. 11 A number of top fashion-modeling agencies would most likely be charges with ___ for jointly determine what commissions they charge for models a. prestige pricing b. competitive pricing c. price bundling d. dynamic pricing e. price fixing
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e. price fixing
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Ch. 11 Consumers are less likely to use price to judge the quality of a product when they ___ a. have never tried the product before b. have little knowledge of the brand c. have experience with the product d. are shopping for luxury items e. cannot physically examine the product
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c. have experience with the product
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Ch. 12 Which of the following is most likely true of marketing channel decisions? a. they often involve long-term commitments to other firms b. they have minimal influence on the prices of products offered to customers c. they increase the amount of time a company spends connecting with customers d. they increase the amount of effort a company puts in to distribute goods e. they are easily altered, replaced, or discarded
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a. they often involve long-term commitments to other firms
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Ch. 12 Which of the following companies uses a direct marketing change? a. fishhooks, a factory which manufactures fishing equipment that it ships to hobby stores worldwide b. Germfight, a factory which manufactures dental products that it distributes only to select department stores c. Apple Blossoms, a company that sells its cosmetics exclusively through Ray's Retail Store d. Holly Wreaths, a store which sells Christmas ornaments to customers via its online click-to-order catalogs e. Showdown, a clothing store that stocks merchandise from different international brands
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d. Holly Wreaths, a store which sells Christmas ornaments to customers via its online click-to-order catalogs
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Ch. 12 Managers at the Imperial Hotel-Chicago complained that the chain's overall image was hurt because Imperial Hotel-Dallas was overcharging guests and providing poor service. The Imperial Hotel was experiencing ___ conflict. a. equilateral b. vertical c. multitiered d. communal e. horizontal
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e. horizontal
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Ch. 12 The Bookworm began delivering books directly to customers through mail instead of selling through "brick-and mortar" companies. This is an example of ___. a. indirect marketing b. disintermediation c. franchising d. exclusive distribution e. intensive distribution
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b. disintermediation
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Ch. 12 Which of the following should be a manufacturer's first step when designing an effective marketing channel? a. set channel objectives b. analyze consumer needs c. identify channel alternatives d. evaluate channel alternatives e. establish strategi alliances
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b. analyze consumer needs
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Ch. 12 For which of the following products would the intensive distribution strategy most likely be used? a. high-end cameras b. luxury cars c. lawn mowers d. soft drinks e. furniture
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d. soft drinks
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Ch. 12 Which of the following is true of the exclusive distribution strategy? a. it makes products available to everybody, everywhere b. it is used primarily for convenience items c. it helps promote a brand's luxury image d. it gives producers no control over their products e. it enlists all of the intermediaries willing to carry a company's products
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c. it helps promote a brand's luxury image
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Ch. 12 Why do firms have difficulty accessing potential market areas in developing countries, such as China and India. a. inadequate distribution systems b. anti-globalization efforts c. highly centralized rural markets d. limited manpower e. high operating costs
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a. inadequate distribution systems
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Ch. 12 ___ involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit. a. advertising b. product positioning c. mass customization d. marketing logistics e. branding
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d. marketing logistics
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Ch. 12 When KFC came into conflict with its franchises over the brand's "Unthink KFC" repositioning, which emphasized grilled chicken over its traditional Kentucky fried chicken, KFC experienced ___ conflict a. equilateral b. vertical c. multitiered d. communal e. horizontal
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b. vertical
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Ch. 14 Which of the following statements is true regarding today's marketing communications? a. more marketing are shifting away from narrowly defined micromarkets and moving toward mass marketing b. more customers have started relying on marketer-supplied information rather than finding out information on their own c. network television, magazines, newspapers, and other traditional mass media continue to increase their dominance d. focused marketing programs which are designed to build closer relationships with customers in more narrowly defined micromarkets are no longer used by marketers e. today's consumers are better informed about products and services
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e. today's consumers are better informed about products and services
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Ch. 14 Which of the following statements is true regarding the old mass-media communications model? a. mass-media costs are decreasing b. mass-media audiences are increasing c. many viewers are gaining control of message exposure through DVRs d. ad clutter is decreasing e. internet ad spending has stagnated and more marketers are shifting toward TV advertising
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c. many viewers are gaining control of message exposure through DVRs
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Ch. 14 Integrated marketing communications require a company's mass-market advertisement, Web site, e-mail, and personal selling communications to all have ___. a. equal portions of the advertising budget b. independent communications directors c. separate marketing objectives d. the same target audience e. the same message, look, and feel
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e. the same message, look, and feel
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Ch. 14 A consumer is reading a magazine with an advertisement, but due to a loud sound he is distracted from reading the advertisement and is not able to grasp its key points. In the context of the communication process, this unplanned static or distortion is called ___ a. noise b. encoding c. feedback d. response e. decoding
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a. noise
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Ch. 14 Boston Corp. is introducing consumers to its new car with the help of an advertisement campaign. This introductory campaign most likely aims to affect the ____ stage of buyer-readiness a. liking b. awareness c. preference d. insistence e. conviction
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b. awareness
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Ch. 14 A charitable trust's appeal which states, "While you are trying to figure out what to get the man who has everything, don't forget the man who has nothing" is an example of a(n)___ appeal. a. structural b. awareness c. rational d. moral e. standard
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d. moral
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Ch. 14 A manufacturer of a variety of technological devices asked its marketing department to develop inexpensive methods of building and maintaining brand awareness and excitement. The marketing department then recruited consumers who were early adopters of technological devices to spread the word about the company's new product. This is an example of ___. a. a reverse marketing activity b. non personal marketing c. buzz marketing d. sales promotion e. direct marketing
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c. buzz marketing
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Ch. 14 Through the ___ method of setting an advertising budget is simple to use and helps management think about the relationships among promotion spending, selling price, and profit per unit, it wrongly views sales as the cause of promotion rather than the result a. percentage-of-sales b. integrated c. competitive-parity d. objective-and-task e. regression
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a. percentage-of-sales
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Ch. 14 Which of the following statements is most likely true regarding the objective-and-task method of budget-spending? a. it forces management to spell out its assumptions about the relationship between the money spent and promotion results b. it is the simplest and least time consuming method to use c. it is the least logical budget-setting method d. it involves setting the promotion budget to match competitors' outlays e. it wrongly views sales as the cause of promotion rather than as the result
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a. it forces management to spell out its assumptions about the relationship between the money spent and promotion results
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Ch. 14 Glasis is a type of paint made specifically for use on cars. An ad in motor trend magazine advising consumers to request their auto body shops to use Glasis paint is an example of how a company uses ___. a. word-of-mouth influence b. public relations c. buss marketing d. a push strategy e. a pull strategy
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e. a pull strategy
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Ch. 15 When Proctor and Gamble developed Mr. Clean Magic Eraser, the company needed to explain how the the product cleans grime from walls without removing paint. What type of campaign was most likely used by P&G for the Mr. Clean Magic Eraser a. information advertising b. covert advertising c. reminder advertising d. development advertising e. comparative advertising
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a. information advertising
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Ch. 15 An ad for a new convection oven shows a busy professional woman using the conviction oven to cook dinner for her family. Which of the following message execution styles is illustrated in this example. a. testimonial evidence b. slice of life c. fantasy d. scientific evidence e. mood or image
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b. slice of life
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Ch. 15 Which of the following is illustrate by an amateur 30-second video, developed by a consumer, telling the story of an offline crafts marketplace, Easy.com? a. personal selling b. consumer-generated messages c. consumer ethnocentrism d. sales promotion e. consumerism
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b. consumer-generated messages
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Ch. 15 Snappy Cameras is launching a new advertising campaign to demonstrate the high quality of its digital cameras. Which media option would give the audience the most control over exposure to the ads and interactive capabilities? a. the internet b. newspaper c. TV d. radio e. billboard
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a. the internet
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Ch. 15 In the context of media timing, the idea behind ___ is to advertise heavily for a short period to build awareness that carries over to the next advertising period a. continuity b. pulsing c. shuffling d. sequences e. segmenting
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b. pulsing
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Ch. 15 Which of the following characterizes the standardized global advertising? a. higher advertising costs b. no global advertising coordination c. higher appeal to varying demographics d. a more consistent worldwide image e. lower reach
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d. a more consistent worldwide image
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Ch. 15 Which of the following statements is most likely true of public relations? a. it requires participating companies to pay for media space or time b. it can have the same impact on public awareness as advertising at much lower costs c. it is always handled by a third-party agency hired by the firm d. it forms a huge portion of the overall marketing budget of most large firms e. it plays an insignificant role in brand-guiding with the increasing popularity of advertising
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b. it can have the same impact on public awareness as advertising at much lower costs
