mktg 300 – Flashcard
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A(n) ______ strategy involves coordinating the various promotion mix elements to provide consumers with a clear and consistent message about the firm's products.
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integrated marketing communications
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Which of the following promotional tools is a part of advertising?
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bill board banner
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Mr. Thompson is a professor of Marketing at the local university. In the student orientation program, he addressed the freshmen regarding the advantages of taking Marketing as a major course. Which of the following types of advertising did Mr. Thompson use?
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persuasive advertising
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In the context of Internet advertising, which of the following is true of click-through rate (CTR)?
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It is a ratio showing how often people who see an advertisement end up clicking on it.
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_____ is best defined as the dissemination of information, often by television, to a fairly small, select audience that is defined by its shared values, preferences, or demographic attributes.
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narrowcasting
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Santé is a health drink. Its manufacturer has sponsored a football match between the two most-popular local schools in Memphis. It has provided the teams with t-shirts with its logo on it, put up banners in the playground, and set up stalls for the sale of its drink. The football match will be shown on television and viewed by many. Which of the following promotion techniques does Santé use in this case?
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product placement
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Marketers of a cosmetic company are distributing free samples of its cream, Morning Aura. The company hopes that the strategy will result in an increase in sales if the sample is a hit. Which of the following promotion mix elements is the cosmetic company using in this case?
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Sales promotion
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_____ allow consumers to recoup a specified amount of money after making a single purchase.
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Rebates
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Chicago Inc., a leading retail store, has a chain of department stores across the United States. The products available at its outlets include cosmetics, jewelry, clothes, footwear, and home accessories. Chicago Inc. offers its customers a Gold Card to which points are added every time the customer's bill amount exceeds $500. These points can be accumulated and used for purchases at any of its outlets. Which of the following promotion mix elements is the cosmetic company using?
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loyalty programs
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Which of the following promotion tools commonly involve problems due to misredemption practices?
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coupons
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_____ results in immediate feedback from the customer since a salesperson can observe the nonverbal communication of the customer.
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personal selling
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The traditional process of approaching unknown prospective customers or clients is known as:
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cold calling.
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James, a medical sales representative has searched for potential customers and found qualified prospects. He has further targeted the prospects based on how much income they may generate for his company and how probable it is that they will become a customer. According to the personal selling process, which of the following steps should he prepare for next?
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The preapproach
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In the context of closing a sale during the personal selling process, assumptive close is a closing strategy where a salesperson:
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asks a question and understands whether a customer wants to make a purchase based on his answer.
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Which of the following is the last step in the personal-selling process?
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follow-up
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_____ is defined as nonpersonal communication focused on promoting positive relations between a firm and its stakeholders.
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Public relations
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Annual reports, speeches, blogs, and brochures are tools used in which of the following promotional strategies?
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Public relations
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Which of the following is true of publicity?
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It is a sales promotion tool.
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It estimates the cost of each task involved in promotion.
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It generally requires little time and judgment.
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Oceanus Ultra is a home water purifier. Its sales have declined by 25 percent over the past year due to an increase in competition. Oceanus Ultra must now decide about its promotional budget. According to the objective-and-task method, which of the following is the best strategy for Oceanus to follow?
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It should define specific objectives, determine the tasks required, and estimate the cost of each task.
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Dave is a regular shopper at Colric Inc., an online company, which sells T-shirts. He placed an order for five T-shirts. However, when the order arrived, Dave realized that the T-shirts were defective. He returned the order and requested Colric for a replacement. This scenario exemplifies an exception to one of the aspects of supply chains. Identify this aspect.
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Products and services generally move downstream from a supplier to a customer.
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Which of the following is true of supply chains?
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Information flows both upstream and downstream in a supply chain.
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A firm with a _____ orientation is most likely to focus on the activities and performance of other companies, rather than focus on one's own company.
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supply chain
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Which of the following is true of supply chain management?
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Decisions in one area of the supply chain can have a negative impact on another area.
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Which of the following exemplifies a trade-off involved in a supply chain management decision?
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A retailer agreeing to carry products that compete with store brands
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A manager with a supply chain orientation is most likely to agree that:
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individual firms should integrate their activities to such a degree that they function as one organization.
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A firm that uses a push supply chain strategy is most likely to:
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manufacture products before it receives any orders for those products.
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Which of the following is an advantage of a pull strategy?
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It reduces inventory carrying costs and allows customization of products.
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One of the advantages of using a push-pull strategy is that:
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companies can achieve economies of scale in purchasing, while engineering flexibility into manufacturing.
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In which of the following situations should a firm pick a push strategy?
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When customers want a short lead time
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Which of the following is true of logistics?
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Logistics can be regarded as supply chain management itself.
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Radon Enterprises is a firm that specializes in manufacturing automobile components. It uses software-controlled robots to help in the manufacturing process. Minute defects are detected by an inspection system that has infrared capabilities. The system can only be activated through a biometric login to which only permanent employees have access. In the event that the biometric system fails, employees can use their identity cards to activate the system. All the data from the manufacturing process including use of the inspection system, employees' details, and inventory details are stored and made accessible to supervisors and the management by a software called Eclipse. In this scenario, which of the following can be best described as an enterprise resource planning system?
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Eclipse
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The cyclical inventory of a firm refers to the:
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inventory a firm needs to meet average demand.
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Bots is a chain of toy stores across the United States that specializes in selling robots. It offers a limited-period volume discount on its products for online customers. Bots sells all of its discounted products and receives orders for more number of products than what it has in its inventory. Which of the following does this scenario exemplify?
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Stockout
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Morrie is a middle-level manager at an apparel manufacturing company called Rota Corp. She is in charge of sourcing raw materials from suppliers. Morrie posts details of the required materials on the firm's extranet portal, and suppliers respond to this with their bids. Morrie selects the best offer and sends the concerned supplier a confirmation for procuring the raw materials along with the expected date of delivery. What is this confirmation termed as?
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Purchase order
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Catalyst Inc. is a software development firm that employs over 1,500 people across the United States. Company-wide purchasing decisions are made by Reno, who works as the company's purchasing manager. Recently, he invited bids from suppliers for an order of 500 laptops. Reno agreed to purchase the laptops from a supplier who would in turn purchase inventory management software from Catalyst. This type of arrangement is called:
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reciprocity.
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Which of the following should a company consider when designing its distribution network?
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A higher number of distribution centers result in better product availability.
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Which of the following is a disadvantage of using railroads as a mode of transport?
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They provide inconsistent service and need other modes of transportation for accessibility.
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Which of the following companies is highly likely to use cyberspace as a mode of transport?
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Musio is an independent pop band that allows its fans to listen to and buy music from its website.
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A firm with a core carrier strategy will:
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select a small number of carriers that offer volume discounts and quality service.
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Which of the following is one of the most important strategic decisions a firm faces because it reflects the value the product delivers to consumers as well as the value it captures for the firm?
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price
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Which of the following calculations can correctly determine the profits of a firm?
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Profits = (units sold * price) - cost
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The objective of strategic pricing is:
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profitability
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Which of the following is the first step in the price-setting process?
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Define the pricing objectives
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Carla, the marketing manager at Regal Inc., is in the process of setting prices. She has finished analyzing the competitive price environment. According to the price-setting process, what should be Carla's immediate next step?
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Choose a price
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The prices that consumers consider reasonable and fair for a product are termed:
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reference prices.
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Isabella's landlord has included a clause in the rental contract that makes it possible for him to increase Isabella's monthly rent if taxes on the property go up. Which clause was included in the contract?
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Escalator clause
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Which of the following is true of markup pricing?
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It is not very effective at maximizing profits.
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The marketers of Analog Inc. have priced a few of their products at $25.99, $29.99, and $34.99. From this information, we can say that the marketers of Analog Inc. are pursuing:
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odd pricing.
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_____ is a pricing strategy that involves pricing a product higher than competitors to signal that it is of higher quality.
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Prestige pricing
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Frozen Yummy is an ice-cream manufacturer. Its marketing strategy from the month of November to February is "buy one get one free." Which of the following best describes the strategy applied by Frozen Yummy?
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Seasonal discounts
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The marketers of Santé, a health drink, have decided to sell a combination package of three flavors-vanilla, chocolate, and strawberry. This package is priced marginally higher than the individual flavors. Given this information, we can come to the conclusion that the marketers of Santé have applied the _____ strategy.
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price bundling
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_____ involves constantly updating prices to reflect changes in supply, demand, or market conditions.
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Dynamic pricing
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Which of the following is true regarding the influence of technology on pricing?
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Mobile applications can be used to direct users to online sites to complete a purchase.
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Which of the following best describes the term black market?
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It refers to the illegal buying and selling of products outside of sanctioned channels.
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Which of the following is true of gray markets?
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Gray market goods can be a boon for consumers.
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_____ are taxes on imports and exports between countries.
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Tariffs
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Which of the following is true of predatory pricing?
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It is always practiced for short periods of time.
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High Tea, a retail store, claims to sell a pack of 20 tea bags at a discounted rate of $20 from an advertised original price of $40. The original price was verified by regulators to be $25. The pricing strategy applied by High Tea is an example of:
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deceptive pricing.
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The _____ is a law passed in 1914 that seeks to prevent practices that may cause injury to customers, that cannot be reasonably avoided by customers, and that cannot be justified by other outcomes that may benefit the consumer or the idea of free competition.
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Federal Trade Commission Act
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Which of the following is true of brand loyalty?
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It refers to consumers' steadfast allegiances to a brand, displayed through repeat purchases.
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_____ refers to the degree to which customers can identify a brand under a variety of circumstances.
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Brand recognition
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Haze, a beverage manufacturer, has a business strategy concentrated on developing environment-friendly products. It uses green-colored packaging to indicate the eco-friendly component of its products. This helps Haze's products to stand out and be recognized easily. This scenario exemplifies the use of:
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brand marks.
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Which of the following best defines brand image?
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It refers to the unique set of associations that target customers make with a brand.
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Which of the following is true of a firm with high brand equity?
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High brand equity facilitates the firm to expand into new markets.
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Which of the following is true of using qualitative research for measuring brand equity?
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It helps in identifying the sources of brand equity.
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About 50 consumers are participating in a focus group moderated by marketers. They are asked to list terms and phrases that occur to them when they hear the brand name, 'Rotomatix'. The marketers of the brand use the consumers' responses to gain insight into what consumers think of the brand. This scenario is a typical example of:
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free association.
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Alexis, an existing clothing brand, asked its consumers to compare the brand to a celebrity in an online survey. The idea behind this is that the celebrity chosen by a consumer will reflect his or her perception of the brand. This kind of research exemplifies:
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projective technique.
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Which of the following is true of brand extension?
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It enables new products to profit from the recognition that a brand already enjoys.
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Capitalizing on its high brand equity, ReInforay, an established retail and grocery brand, introduces a new product, ReNew, which is an improved variant of its existing hair protein serum. ReInforay soon discovers that after the successful rollout and high sales of its ReNew, the sales volume of its existing product has dropped significantly. Which of the following phenomena does this scenario exemplify?
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Cannibalization
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Which of the following is an advantage of co-branding?
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Co-branding allows a firm to leverage the equity of another brand to increase its own brand equity.
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Healpro, a painkiller, is a low-cost product developed by S&V, a popular retail chain in the United States. It is sold exclusively in S&V stores. In this case, Healpro is an example of a:
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private label brand.
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Which of the following is true of packaging?
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It can be used to increase brand recall.
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Which of the following is true of consumer engagement with social media?
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Social media users prefer consumer-generated reviews of products to other reviews.
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Which of the following does a Klout score measure?
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It measures users' influence based on their abilities to drive other people to act on social media sites.
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Jumel is a new restaurant chain in the United States. The chain has a strong online presence in the form of a website and on many review sites. Jumel wants to capture its presence on blogs posted by customers. Jumel can then post links to these blogs on its website, which will serve as testimonials. Which of the following tools should Jumel use?
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Social Mention
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Which of the following has contributed to the success of U.S. brands in the global market?
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The emergence of social networking tools such as Facebook and Twitter
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Which of the following is a useful way for a company to adapt its brand to the global market?
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It must ensure that the brand image remains unaltered in each country.
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Why is building brand equity essential for nonprofit organizations?
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Nonprofits have complex goals and need to convince patrons to support those goals.
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Social media tools are particularly important for nonprofit marketers because of:
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their low cost relative to other traditional brand-building media.
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Which of the following is true of customer service?
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While bad customer service can distance customers, good customer service alone cannot keep customers happy.
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The ultimate goal of delivering superior customer service is to:
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increase brand loyalty.
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Maven placed an order for a book in an online bookstore, Parallel Lines, on 28th August 2013 and received the book on 31st August. In the same period, Parallel Lines sold 6,700 copies of the same book. After the book was delivered to Maven, she received a confirmation call from the customer service of Parallel Lines. Which of the following activities in this scenario is a part of the order cycle constituting Maven's order?
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The delivery of the book to Maven
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_____ is a metric that measures the percentage of the total number of items on an order that a firm shipped on time.
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Item fill rate
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Steve is an account manager at an inventory management firm. He wants to measure the dollar fill rate of some of his customers' orders. In order to complete this task, Steve should measure:
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the value of goods shipped on time versus the total value of the order.
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Sarah, the marketing manager of an e-commerce firm, wants to measure the percentage of orders shipped and completed in time, based on stock keeping units. Which of the following metrics should Sarah use?
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Line fill rate
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Which of the following can a firm measure during the post-transaction point in the customer communication process?
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The ability of the firm to answer question concerning the use of the product
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_____ is a metric that measures a firm's ability and willingness to provide fast service answer customer inquiries, and resolve problems..
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Responsiveness
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Which of the following is true of customer satisfaction?
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It is a state that is achieved when a firm meets the needs and expectations of customers.
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Which of the following is true of companies that base their business on the marketing concept?
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They put only the customer in the center of their thinking in terms of strategy and operations.
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Oswell, an online apparels retailer, has a customer-oriented strategy. One of the firm's goals is delivering superior service to its customers. How can Oswell build brand loyalty among its customers?
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It should offer customized products and personalize communication with its customers.
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_____ refers to a strategy that focuses on building brand loyalty by attracting, maintaining, and enhancing customer associations.
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Relationship marketing
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One of the basic keys for a company to building good relationships with customers is to:
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establish the ways in which it will provide more customer value than its competitors do.
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_____ refers to the perceived benefits that a consumer receives from a product compared to the cost associated with obtaining it.
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Customer value
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Eva, a sales analyst at ShopOn.com, wants to capture and store consumer data to create and maintain customer profiles. She studies data to identify purchasing patterns and buying habits. Using this information, the marketing team will be able to target marketing campaigns at specific segments of customers. Which of the following software types should she use for this purpose?
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Customer relationship management software
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Which of the following is the first step in the customer relationship management process for a company?
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Identifying current customers
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Which of the following is true of the customer relationship management process for a company?
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It involves the use of data mining to search for meaningful trends in vast amounts of data.
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Richard is the newly recruited operations manager at Stripes, an online shoe store. He was recruited after the CEO noticed no significant improvement in sales figures despite the increase in marketing and promotions during the past three quarters. Richard's first task is to assess the profitability of existing and potential customers in the long run. He has to compare the costs of retaining customers and the costs involved in acquiring new ones. Which of the following methods of analysis will serve this purpose?
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Lifetime value analysis
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To safeguard against a breach of security, CRM systems must:
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install robust firewalls to prevent unauthorized access.
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_____ refers to a ratio that compares the financial investments a company puts into gaining and keeping customers to the financial return on those investments.
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Customer equity
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_____ refers to an organization's obligation to maximize its positive impact and minimize its negative impact on society.
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Corporate social responsibility
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In order to succeed, a corporate social responsibility program of a firm should:
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be adopted and enacted by all of the functional areas within the firm.
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Which of the following best defines stakeholder responsibility?
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It focuses on the obligations an organization has to those who can affect the achievement of its objectives.
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_____ is the driving consideration across the four dimensions of corporate social responsibility.
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Stakeholder responsibility
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Eco Events is a media management firm. In order to promote its new campaign, Eco Events decides to do away with traditional advertising and resorts to a new awareness strategy. This strategy is to voluntarily award some of its profits to people, businesses, and nonprofits that come up with talented ideas that will create a positive impact on the society. In this scenario, which of the following best describes the decision taken by Eco Events?
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Corporate philanthropy
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Which of the following departments of an organization is typically responsible for developing the organization's corporate social responsibility program?
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The marketing department
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Which of the following is true of an organization auditing a corporate social responsibility program?
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It must include return of investment and then record changes in employee turnover and brand image.
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_____ refers to the policy of employees offering their time or talents for charitable, educational, or other worthwhile activities, especially in the community.
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Corporate volunteerism
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The concept of committing to adopting a lifestyle that meets the needs of the present without compromising the ability of future generations to meet their own needs is known as:
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sustainability.
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Eco Synergy Corp. is a company that believes in delivering customer value. It seeks to cut costs through the installation of energy monitoring meters on its high-end equipment facility. Apart from cost-cutting, this is an initiative intended to improve the firm's overall economic performance. This decision taken by Eco Synergy best exemplifies:
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sustainable marketing.
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Which of the following is true of consumerism?
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It includes an effort on the part of consumers to avoid purchasing goods that have been produced in a way that is inconsistent with sustainable business practices.
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Which of the following best defines the green market?
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It refers to a group of sustainability-oriented customers and the businesses that serve them.
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Which of the following is true of environmentalism?
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Some utility companies offer customers the opportunity to purchase their energy needs from wind, solar energy, and other renewable sources.
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An environmental accident has hurt the brand image of Waybound, an airlines company In order to counter bad press coverage, Waybound runs a public relations campaign to highlight its green practices. In the context of environmental marketing strategies, which of the following does Waybound's strategy exemplify?
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Tactical greening
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Macro Task Inc. is a manufacturing firm. In keeping with the current trend of environmentalism, Macro Task decides to bring in substantive changes in its marketing strategy by overhauling its product packaging. Under which of the following kinds of marketing strategies does this decision fall?
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Quasi-strategic greening
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A firm modifies its pricing policy from a flat monthly rate to a per-unit basis to encourage people to use fewer resources. This is an example of:
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quasi-strategic greening.
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With regard to environmental strategies, which of the following is a holistic approach that represents a fundamental shift in the way a firm markets its products?
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Strategic greening
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Foodwings, a multi-cuisine restaurant, launches a new chain of retail stores exclusively targeted at the green market. With regard to environmental strategies, which of the following does this exemplify?
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Strategic greening
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Which of the following is true of global environmentalism and sustainability?
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Political barriers can limit the availability of sustainable goods for consumers.
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_____ is the practice of recreational traveling in a way that maximizes the social and economic benefits to the local community and minimizes the negative impact on cultural heritage and the environment.
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Sustainable tourism
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_____ are measures that assist in ascertaining the extent to which marketing objectives have been attained.
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Performance metrics
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Which of the following is true of implementing marketing performance metrics?
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Marketers must develop metrics based on their organization's revenue and mission statement.
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Henry, a marketing manager at Clade Electronics, is tabulating the expenditure on a recently concluded successful advertising campaign using a spreadsheet. Henry also has the sales figures of the product targeted by the campaign in another spreadsheet. He will use the spreadsheets to measure how effective Clade has been in using the resources allocated for the campaign. Which of the following is Henry calculating?
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Marketing return on investment
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_____ is a measure used by marketers to analyze the success of specific products and geographic regions to find pain points and positive factors.
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Revenue analysis
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Which of the following is true of revenue analysis in for-profit firms?
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It typically identifies whether the firm is meeting sales objectives.
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Which of the following is a similarity between revenue analysis in for-profit firms and nonprofit firms?
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Both seek to understand the funding source of their revenue.
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Taiko, a manufacturer of gaming consoles, had sales of $2 billion during 2013. During the same period the other manufacturers managed to sell gaming consoles worth $18 billion. According to these figures, Taiko accounted for 10 percent of revenue generated from gaming consoles in 2013. What does this scenario exemplify?
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Market share analysis
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Customer acquisition measures:
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the amount of money spent on marketing to gain new customers.
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Which of the following is true of a marketing audit?
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It includes both quantitative and qualitative data from all the stakeholders of a business.
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Which of the following is true of the rate-of-trial method of measuring the success of a new product?
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It provides a quick snapshot of a marketing team's success in attracting new customers.
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A(n) _____ is a process that is used to measure and manage demand in addition to creating a sales forecast.
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collaborative planning, forecasting, and replenishment (CPFR)
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Cynthia, an advertising professional for Swirl AD, is rolling out an advertising campaign for one of her clients, next month. She is quite nervous about the response that the campaign will receive. Therefore, she organizes a meeting with a few people from the target customer base of the new campaign to evaluate the advertisements before rolling them out. In this scenario, Cynthia is conducting a(n):
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pretest
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_____ refers to the percentage of the target market that has been exposed to a promotional message at least once during a specific time period.
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Reach
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_____ is a measure of how often the target market has been exposed to a promotional message during a specific time period.
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Frequency
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_____ are specified profit targets that a firm expects salespeople to meet.
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Sales quotas
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A payment tied directly to the sales or profit a salesperson captures for the company is known as a(n):
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commission
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Which of the following is an advantage of using a straight commission plan for compensating salespeople?
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It offers the maximum incentive to salespeople.
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Which of the following is a disadvantage of using a combination method of compensation to salespeople?
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It tends to be difficult to administer.
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_____ is the extent to which established rules and processes direct marketing decisions and activities.
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Formalization
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Highly formalized organizations often have:
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a difficult time maximizing performance in response to rapid changes.
