MKT 460 – Exam 2 – Flashcards
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When a shopper purchases new shoes, he or she expects the shoes to cover his or her feet and allow him or er to walk unobstructed. This is an example of what level in the consumer-value hierchy
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basic product
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which of the following are tangible goods that normally survive many uses?
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durable goods
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the 5 product levels add more customer value, and together they constitute a
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customer-value hierchy
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if the ford FT is designed to accelerate to 50 miles per hour within 10 seconds and every for GT coming off the assembly line does this, the model is said to have high
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conformance quality
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Smith and Adams poultry set up a computer system so that its customers can directly inform its central supplier system about purchase volumes and dates, as well as automatically receive confirmation of orders and shipments. This is an example of a company differentiating its service in terms of
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ordering ease
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Realizing that although household products is a huge category-taking up an entire supermarket aisle or more - it is an incredibly boring one, the founders of Method Products designed a sleek, uncluttered dish soap container that also carried functional advantages, such as ease of dispensing soap and cleaning. method is competing in the crowded market for household products on the bases of superior
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Design
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Happy home products produces detergents, toothpaste, bar soap, disposable diapers and paper products. This company has a product of ___ five lines
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Width
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A manufacturer of hiking boots looks at data that indicate that their subsegment of the market called "serious hiker" is declining and is predicted to decline into the future. The firm decides to enter the "low-price" segment with its new items. This is an example of a firm's __ to reach a new market
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down-market search
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Purchasers of theatre tickets receive a 20 percent discount if they purchase and pay for the full season at one time. Tis is an example of what type of product-mix pricing?
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mixed bundling
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Gilette uses __ pricing when it offers razor handles at a low cost, but places a high markup on the replacement razor blades that fit in the handles.
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captive-product
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Jordan's firm enters new markets by tweaking products for new customers, uses variations on a core product to stay one step ahead of the market and creates interim solutions for industry-wide products. In other words it pursues,
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radical innovations
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After creating a product prototype, a company tests it within the firm to see how it performs in different applications. The company refines the prototype to correct the mistakes found in in-house testing. What should be the next step
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creating a marketing strategy for the product
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the stage in the new product process that occurs first is the __ stage
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Idea generation
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A __ is an elaborated version of a product idea expressed in consumer terms.
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product concept
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Brown & Smith, Inc. engages in the design, development, making, and retail selling of a designer jewelry in North America. Before approving a new design, the company draws it on a computer and then produces models to show potential consumers and get their reactions. This allows the company to analyze the possible customer reaction. Identify the concept testing method used here.
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rapid prototyping
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Poga International, a multinational beverage corporation identifies that one of its competitors is launching an apple flavored drink. The company decides to launch an apply flavor brand along with its competitor. What timing strategy is used here?
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parallel entry
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Armorodo is a famous vacuum cleaner brand in Africa Clara has heard of Armordo and she knows that the product is a success. She has started considering whether or not to buy the vacuum cleaner. What stage of the consumer-adoption process is clara in?
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evaluation
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Joseph, a student of Columbia University, found that many of his classmates had purchased an iPad table from Apply. Several months after the product's launch, reassign that the iPad was wisely considered to be useful and that many students in the U.S. had rated it highly, joseph decided to purchase an iPad. Which of the following is the adopter group to which Joseph belongs?
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Early majority
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to which of the following categories of services does a cell phone belong?
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tangible good with accompanying services
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which of the following is an example of a pure service?
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psychotherapy
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Bank customers try to reduce uncertainty by drawing inferences from the ___, such as the design of the building's exterior and interior, the layout of the desks, and the length of waiting lines.
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Place
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A brand that is action-oriented and causes consumers to engage in physical actions apeals to the __ dimension of brand experience
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behavorial
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Jake had an appointment at the doctor's office, but couldn't make it on time due to traffic. By the time he arrived, the doctor had already begun with the next patient. The illustrates the __ of services
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perishability
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the Caesar Park Hotel generally caters to business customers during the week, so weekends are relatively quiet. The hotel has decided to promote mini-vacation weekends for non-business customers as well. What is the caesar park trying to do?
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it is trying to cultivate non peak demand
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Susanna wanted to check out a new salon in her locality so she decided to go for a hair styling session. She was very happy with the way her stylist connected and related with her concerns. She is judging the serviced based on its
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functional quality
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In which of the following does a customer respond to the technical quality of a service?
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Sara's preferred hair stylist is some miles away, but Sara goes to him because his styles suit her looks.
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Belling hotels provides a complimentary breakfast buffet to all guests. This is an example of a
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secondary service feature
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Although brenda previously used US Postal service because it is offered better price on package shipping, she now uses only FedEx, because it gives her the facility of shipping from any fedex location 24 hours a day. Which of the following factors led to brenda's customer switching behvior
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inconvenience
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Dean recently had a BRZ broadband connection installed. However, the connection was poior and he didn't get the quality he required. He contacted BRZ about the problem, but the company did not solve his problem. He switched to blue broadband. Which of the following was the cause of dean's switching behavior?
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response to service failure
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Which of the following is an example of a gap between management perception and the service quality specifications?
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A service center manager has asked his subordinates to provide fast service, but has not specified a time for the service to be performed.
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Which of the following is an example of a gap between service delivery and external communications?
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Amanda chose to shop at Alison's fashions because the store's website offered o the spot alterations, However when she did buy a dress, she had to wait a week to get it altered
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When Aaron went to his doctor for his annual checkup, he was asked to undergo a number of tests. Although the doctor assure Aaron that he tests were routine, Aaron thinks that the doctor is hiding a grave problem from him. What kind of gap is apparent here?
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Gap between perceived service and expected service
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One way marketers are addressing consumers' desire for convenience in services is by providing __
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self-service technologies
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Which of the following is an example of self-service technologies?
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printing tickets form a home computer?
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Not all self-service technologies improve service quality but they can make service transactions more accurate convenient and ...
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faster
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the customer service representatives at G.K. heating and cooling must know as much about the products as possible, so that they can help customers solve their difficulties without sounding hesitant or unsure of themselves. This is an example of high-quality strategy for
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postsale service
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For a new manufacturer managing product support for its equipment, what is usually the first strategy for postsale service?
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running the company's own parts and service department
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Johnson controls reached beyond selling climate-control equipment and components by selling the service of managing of facilities in a way that optimizes energy use in heating and cooling. This is an example of providing
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value-augmenting services
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Which of the following would not be a consumer's reference price?
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The actual future price
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many consumers are willing to pay $100 for a perfume that contains $10 worth of scent because the perfume is from a well-known brand. What does this image pricing suggest about these consumers?
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They use the price as an indicator of quality
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A firm that is plagued with overcapacity, intense competition, or changing consumer desires would do better if it pursues __ as its major objective
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survival
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A market penetration pricing strategy is most suitable when __
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production and distribution costs fall with accumulated production experience
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When apple introduced its iPhone it was price at $599. This allowed Apple to earn the maximum amount of revenue from the various segments of the market. Two months after the introduction, the price had come down o $399. What kind of pricing did apply adopt?
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Marketing skimming pricing
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JJ's hair salon pays overhead each month, including bills for rent, heat, interest and salaries. These payments are examples of __ costs
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fixed
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ConAgra foods decided its prices had risen too high, so it determined to set a lower price for its products. To make the new price level profitable, ConAgra cut $250 million in costs. What application of cost estimation did this represent?
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target costing
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A manufacturer has invested $750,000 into a new product and wants to set a price to earn 15 percent ROI. The cost per unit is $18 and the company expects to sell 50,000 units in its first year. Calculate the company's target return price for this product
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$20.25
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A japenese firm is ready to sell its recently technological innovation to the U.S. government. But it has asked for 80 percent in cash and the rest in mica. The japans firm is looking to enter into a ___ with the U.S. government
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compensation deal
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ROC Engineering, a Chinese shipbuilding company, agrees to build a fleet of submarines from the Sri Lankan navy, for which it will be paid in the local Sri Lankan currency. As per the agreement ROC must also spend a substantial amount of the money it generates through this deal within the country. In accordance with the contract, ROC buys Sri Lankan tear at a reduced rate. This is an example of which of the following forms of countertrade
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offset
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___ are offered by a manufacturer to trade-channel members if they will perform certain functions, such as selling, storing and record keeping
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trade-in allowances
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When hotels, motels and airlines offer discounts in slow selling periods, they are said to be offering
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seasonal discounts
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___ reward dealers for participating in advertising and sales support programs
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promotional allowances
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When supermarkets and department stores drop the price on well-known brands to stimulate store traffic, they are said to be following ___ pricing
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loss-leader
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when museums charge a lower admission fee to students and senior citizens this form of pricing is known as __
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third-degree price discrimination
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the airline and hospitality industries use __, by which they offer discounted but limited early purchases, higher-priced late purchases and the lowest rates on unsold inventory just before it expires.
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yield pricing
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which of the following is a possible trap of a price-cutting strategy
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competitors that match low pries might have longer staying power because of deep cash reserves
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Which of the following is most likely to be a valid reason for initiating a price increase?
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anticipated cost inflation
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In markets that are characterized by products that are highly homogenous, how should a firm react to a competitors reduction in price?
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augment the product
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A manufacturer uses the company's sales force and trade promotions to carry, promote and sell prodcuts to end users. Which of the following strategies is this manufacturer using?
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push strategy
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Spike Inc. is a sportswear manufacturer that recently launched its new line of customizable running shoes. the shoes come with a digital component that allows them to adapt to the runners biomechanics. To promote this new product, Spike launches an advertising campaign and entices a famous athlete to endorse the product. This is an example of __
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pull strategy
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Using the push strategy is most appropriate when...
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the product being sold is an impulse item
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a computer manufacturing company alllows customers to shop in their preferred way. For example, they can gather information online or in the store; they can place orders online or by phone or purchase in a store. they can have orders delivered to their home or arrange to pick them up from a convenient retail location. Which of the following terms best represents this practice?
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omnichannel marketing
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Which of the following is the most accurate description of a value network?
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a system of partnerships and alliances that a firm creates to source, augment and deliver its offerings
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identify the channel function that constitues both backward and forward flow
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obtaining financing
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Producers often shift some functions to intermediaries. Which of the following is most significant benefit of doing this?
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it lowers the producers costs and prices
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which of the following is an example of a zero-level channel
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manufacturer takes online orders from customers and ships the products to them
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Door-to-door sales, home parties, mail order, telemarketing, TV selling, Internet selling, and manufacturer-owned stores are examples of
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zero-level channels
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which of the following activities is a reverse-flow channel of marketing
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product recycling
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Toyota has an advantage over Lexus due to the fact that there are more toyota dealers, which helps customers save on transportation and search costs in buying and repairing an automobile. Which of the following service outputs relates to this competitive advantage
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spatial convenience
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atburex is a furniture manufacturing company in the u.s. the company provides a 60 day credit period and also offers on-site delivery and installation. These special benefits refer to which of the following service outputs.
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service backup
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Electorbar, a european manufacture of industrial kitchenware, sells to industrial canteens, restaurants hotels and so forth. The company provides a 1-year warranty on all products and also allows custoemrs to pay in installments - they pay 50 percent on delivery and the rest as equal installments. This refers to which of element in the "trade-relations mix"?
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conditions of sales
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a new firm typically starts a local operation selling in a fairly circumscribed market by
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using a few existing intermediaries
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which of the following is not a standard that producers would use to evaluate intermediaries performance?
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modification of channel deisgn
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Rotte garder inc is a large-scale paint manufacturer known for its wide range of decorative paint products and industrial coating. In addition to making paints, the company also owns and operates the retail stores that sell its products. This is an example of __ veritcal marketing system
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corporate
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A group of small sellers take the initiative and organizes a new business entity to carry on wholesaling and possibly some production. This is an entity called an
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retailer cooperative
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Alcart solutions is a larger distributor of aldor phones in Canada The company distributes products to various retailers in the new brunswick province. Recently Aldor received serveral complains from its retailers that their orders are not delivered on time. This is an example of __ conflict
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vertical
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When goodyear began selling its popular tire brands through Sears, Walmart and Discount Tire, independent dealers that sold the same tires at higher prices were angry. This is an example of _ conflict
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multichannel
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Winstar is a large-scale manufacturer with more than a hundred partners across the globe. When making decision concerning distribution and channel optimization the company invites members from its channel partners to be part of its advisory committee. This helps the company maintain harmony with its partners. Which of the following conflict resolution techniques is Winstar using?
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co-optation
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XM Consulting collects information on various industrial products. WHen faced with buying decisions, businesses can visit XM's website to purchase detailed information on the various options available to the. CM Consulting can be called an
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infomediary
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Which of the following is an example of a brick and click company?
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IFB Industries, a company that sells products using various channels such as internet, retailers, direct outlets and franchises
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___ Includes all activities in selling goods or services directly to final consumers for personal, nonbusiness use.
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retailing
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Which of the following is an example of retailing?
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Praxis international sells products to consumers directly through the internet
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a large staff, along with a higher proportion of specialty goods and slower-moving items and many services are usually features of __ retailiing
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full service
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Which of the following is an example of a limited-service retailer?
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CLO's offers a number of merchandise-return privileges, customers need information and assistance while shopping.
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an example of a restaurant with a narrow and deep asortment is a ___
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delicatessen
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E&OE produces and markets its own brand of skincare products using herbal remedies and natural ingredients through stand-alone stores as well as an online portal. E&OE is a ___ retailer
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speciality
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a factory outlet is an example of __ retailer
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off-price
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companies that sell proceeds door-to-door or at home sales parties are engaging in __
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networking marketing
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why would a retailer measure direct product profitability? (DPP)?
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because handling costs can make products less profitable
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Discount stores typically fall into the __ group with respect to margins and volume
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high volume, low mark-up
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a store selling expensive artwork and luxury goods typically falls into the __ group with the respect to margins and volume.
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high markup, low volume
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most retailers will put low prices ons some items in order to increase traffic to the store. Those low-priced products are known as
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loss leaders
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stores are using __ to measure a product's handling costs from the time it reaches the warehouse until a customer buys it in the retail store.
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Direct product profitability
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which of the following is the strongest differentiator for brick and mortar stores who want to emphasize their superiority over online retailers?
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the shopping experience
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a brand developed by a retailer and or wholesaler that is available only in selected retail outlets is called __ brand
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private-label
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Walmart developed the Ol'Roy brand of dog food to sell only in its stores. Ol'Roy is an example of a ...
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private label
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___ are branded, plainly packaged, less expensive versions of common products such as spaghetti, paper towels, and canned peaches.
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generics
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in addition to its store brands and nationally well-known brands of detergents, Reynold's also carries much cheaper varieties of detergents that are no advertised and have little-known names. They are often manufactured from lower-quality ingredients and save on packaging and advertising costs. These are known as..
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generics
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Because shelf space is scarce, many supermarkets now charge a .... for accepting a new brand, to cover the cost of listing and stocking it.
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slotting fee
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which of the following is considered a wholesaler?
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broker
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The owner of supermarket chain Reynold's wants to offer nonfood items such as greeting cards and magazines. However, Reynolds does not wan to take care of setting up displays and maintaining inventory records. Which of the following types if wholesalers can help Reynold's meet customer, demand while minimizing costs?
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rack jobbers
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Which of the following is TRUE of brokers?
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brokers bring buyers and sellers together and assist in ngeotiation
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__ refers to buying large carload lots and dividing them into smaller units before shopping them out to consumers.
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bulk breaking
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___ includes planning the infrastructure to meet demand, then implementing and controlling the physical flows of materials and final goods from points to origin to points of use to meet customer requirements at a profit
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market logistics
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the elapsed time between an orders receipt, delivery and payment is called the
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order to payment cycle
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a reader point of 10 means ordering the product
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when the stock falls to 10 units
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all response hierarchy models of the communication process assume the buyer passes through cognitive, affective and behavioral stages in that order. Which of the following product categories lends itself most appropriately to such a "learn-feel-do" sequence?
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real estate
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Which of the following is the marketing communications objective for a new-to-the-world product such as electric cars?
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establishing category need
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one of the possible objectives of a marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following relevant brand ends is most likely emphasized by an ad for a luxury car?
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sensory gratification
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which of the following ads depict a transofrmational appeal?
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pringles slogan "once you pop, the fun don't stop"
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which of the following is a disadvantage of using a percentage-of-sales method to determine the marketing communications budget?
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it treats sales as what determines communication rather than as a result of effective communication
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luke is considering the various options availble to him to promote an energy drink, Turbozade, that has decreasing sales volumes after having peaked some time back. Which of the following marketing communications tools should luke focuss marketing efforts on to keep the sales volume up?
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sales promotion
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as ben manages communications for his company's watch brand, which has reached the decline stage n the product life cycle, which of the following marketing communication mix tools is he most likely to continue?
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sales promotion
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stacey wants to use a high relevant engaging and implicit communications mix mode to use a "soft sell" approach for her new makeup line. The communications mix mode that has these characteristics is
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events and experiences
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which of the following is not one of the 4 important contributions an effectively trained company sales force can make to consumer marketing
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remind end-consumers about the product
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when lola asked what the advertising campaign should say, she was concerned with which of the 5 M's
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message
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the "got milk" campaign was intended to boost sagging milk consumption among californians in the 90's. The campaign ads highlighted the inconvenience of running out of milk when intended to be used with certain foods such as cookies or muffins, advising consumers to stock up on milk to avoid such inconveniences. The got milk campaign is an example of
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reminder
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TV Advertising is considered to be particularly advantageous because
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it is appealing to the senses and generates high attentions
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under which of the following conditions is the reach of media most important factor in media selection?
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when launching extensions of well-known brands
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under which of the following conditions is the frequency the most important factor in media selection?
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when there is high consumer resistance to the product
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which of the following is a disadvantage using television as an advertising medium?
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high absolute cost
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which of the following is an advantage of using radio as an advertising medium?
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high geographic selectivity
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which of the following is a disadvantage of using direct mail as an adverting media?
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relatively high cost
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which of the following is a disadvantage of using magazine as an advertising mediums?
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long ad purchase lead time
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Pepe Homes manufactures a range of bathroom accessories and fittings that include bath tubs, shower stalls, etc. While deciding on an effective advertising media vehicle for its planned advertising campaign, the marketing department decides that its advertising objectives would be best if achieved if they used a medium that would portray their brand as prestigious and a symbol of luxury. To this effect the medium should offer marketers a high degree of audience selectivity and high quality reproduction. WHich of the following advertising media would best serve the advertising purpose of Pepe homes?
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magazines
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which of the following is a disadvantage of using yellow pages as an advertising medium?
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high competition
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dante is a media buyer with shelves partners, an ad agency in san fran. He is currently working on charting a media plan for the ads of a department store chain to target the upcoming thanksgiving weekend. Which of the following advertising timing patterns is best suited for running these ads??
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concentrantion
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when fred sends in the box top from his cereal to receive a free DVD of a cartoon featuring one of his favorite characters, he is responded to a
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freee in mail premium
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A __ is a sales force promotion tool that aims at inducing the sales force or dealers to increase their sales results over a stated period with prizes going to those who succeed (money, trips, gifts or points)
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sales contest
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Rolex calls itself the official time keeper, of the wimbledone and australian open lawn tennis championships. by virtue of its sponsorships of the marquee events. What is the most likely objective for rolex's sponsorship deal with these events?
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to increase salience of company or product name
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mountain dew is a brand known for sponsorships of adventure events such as snowboarding and skateboarding competitions. What s the most likely objective of mountain dew's sponsorship of these events?
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to create perceptions of key brand image associations
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JBJ sports is a leading sporting goods manufacturer from Atlanta. It has recently initiated a program in association with the Food4Kids Foundation, which raises funds to promote nutritional awareness of young children. The company plans to donate $1 for every item it sells in the North American market. Also, HBH has roped in professional sports teams associated with it to wear the food4kids logo on their team gear/ Which of the following best describes the motivation for JBJ's involvement in the program
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expressing commitment to the community or on social issues
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which of the following parameters forms the bases for measuring sponsorship effectiveness using demand-side methods?
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influence ons consumers' brand knowledge of the sponsor
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which of the following is NOT one o the 4 main categories of online marketing communicatiosn
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guerilla marketing
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Which of the following is an advantage of online communication for marketers?
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companies can offer tailored information or messages that engage consumers
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J&J had an ad for tylenol headache reliever that would pop up on brokers websites whenever the stocker market fell by 100 points or more. This is an example of
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interstitial
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the gilt group spends more than 3,000 vairations of its daily e-mail for its flash-sale sit based on recipients past __ growing history and purchase history.
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click throughs
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Dollar Shave Cub attracted attention and comments by posting an irreverent online video on YouTube. This is an example of using
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social media
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apple hosts a large number of forums, which become customer's primary source of product information after warranties expire and are organized by product lines and type of user. There are examples of
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online communities
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For which of the following product categories are consumer LEAST likely to engage with on social networks
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laundry detergent
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GlaxoSmithKline sponsored a weight-loss community in preparation for the launch of its first weight-loss drug, All. Which of the following could be a key marketing benefit of forming an online community
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two-way information flow can give the company customer information insights
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Which of the following extrinsic factors is most likely to sway a consumer's decision about whether to contribute to social media?
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whether it affects their self image
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which of the following is not an example of viral marketing
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hasbro places a facebook ad about its TV channel
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which of the following is NOT one of the steps that can improve the likelihood of starting positive buzz?
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identify undeserved inactive individuals and devote extra effort to them
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when researchers seek to evaluate word of mouth according to the relevance, sentiment and authority of where the message cam from, they are focused on characterizing the messages
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source
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PepsiCo created a mission control center-set up like a broadcast tv control room in the middle of the marketing department in its chicago headquarters. what was the purpose of this effort?
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to monitor the Gatorade brand on social networks around the clock
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DuPoint's measures of online world of mouth include ad campaigns ___ that is the extent to which a campaign was not a one-shot deal
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sustainability
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DuPont measures online word of mouth in terms of how far its social media campaign reached. This is an example of measure the __ of word of mouth
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scale
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Which of the following is not one of the ways companies are using mobile apps?
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utilize cookies to track mobile activity
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Which of the following is a reason why marketers see appeal in using mobile devices as a communication tool?
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marketers can perzonalize messages
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Nadya is a designing a mobile ad to promote her company's widgets. WHere should the company logo appear in the mobile ad?
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in the corner
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A pioneer in China, __ created a national campaign asking Beijing residents to send text messages guessing the high temperature in the city every day for just over a month for a chance to win a 1-year supply of its products
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coca-cola
