question

T/F? Traditional marketing media offer a mass media method of interacting with consumers, whereas social media offer more one-to-one ways to meet consumers.

answer

True

question

T/F? One of the implications of social media for marketers is that they must realize that they often do not control the content on social media sites

answer

True

question

T/F? In social media, negative comments and complaints can illuminate unknown brand flaws.

answer

True

question

T/F? The benefits of social media can be easily measured.

answer

False

question

T/F? According to Charlene Li and Josh Bernoff of Forrester Research, inactives are people who read blogs, listen to podcasts, watch videos, and generally consume media.

answer

False

question

T/F? A publicly accessible Web page that serves as an interactive journal is called a tweet.

answer

False

question

T/F? Corporate blogs are easy to maintain because they do not require in-depth writing or monitoring of comments.

answer

False

question

T/F? LinkedIn is designed to be more multimedia-rich rather than information-rich.

answer

False

question

T/F? Marketers find social news sites useful for creating conversations around relevant issues.

answer

True

question

T/F? Social news sites combine the fun of social networking with the utility of location-based GPS technology.

answer

False

question

T/F? Review sites lack the scope for two-way interaction between the marketers and consumers.

answer

False

question

T/F? Mobile marketing is an effective tool for gaining insight into consumer behavior.

answer

True

question

T/F? A social media plan should be monitored after it has been implemented because social media campaigns can be fluid.

answer

True

question

_____ is a subset of e-commerce that involves the interaction and user contribution aspects of social online media to assist online buying and selling of products and services.

answer

Social Commerce

question

Which of the following statements is true of social commerce? A. Marketers cannot customize their offerings as per the needs of specific groups of consumers. B. It relies on user-generated content on Web sites to assist consumers with purchases. C. With social media, the employees of a firm are often in control of the message, the medium, and the response. D. It does not offer consumers the scope to make informed decisions on purchases and services.

answer

B. It relies on user-generated content on Web sites to assist consumers with purchases.

question

Which of the following changes has been brought about in advertising because of the influence of social media? A. The number of ways in which marketers can have direct and meaningful conversations with customers has reduced. B. The focus of social media has unavoidably shifted to manufacturers. C. The interaction between producer and consumer has become less about engaging and more about entertaining. D. The audience is often in control of the message, the medium, the response, or all three.

answer

D. The audience is often in control of the message, the medium, the response, or all three.

question

Which of the following statements is true of crowdsourcing? A. It describes how the input of many people can be leveraged to make decisions that used to be based on the input of only a few people. B. It describes how the level of buzz created for a product can be used as a measurable parameter for determining the product's effectiveness. C. It describes the methods in which a consumer should use a product or service. D. It describes the need for consumers to buy a product and their willingness to buy it.

answer

A. It describes how the input of many people can be leveraged to make decisions that used to be based on the input of only a few people.

question

Wennel Inc., an animal welfare organization, uses its Facebook page to advertise its products to veterinarians, cat food providers, and care takers. In this case, which of the following statements is true of Wennel Inc.? A. Wennel Inc. is involved in crowdsourcing. B. Wennel Inc. is engaged in one-to-many communication rather than many-to-many communication. C. Wennel Inc. controls the message, the medium, and the response D. Wennel Inc. forges deeper relationships and builds brand loyalty through social media

answer

D. Wennel Inc. forges deeper relationships and builds brand loyalty through social media

question

In an interactive space, earned media include:

answer

viral videos

question

The first action a marketing team should take when initiating a social media campaign is:

answer

to establish a listening platform.

question

Which of the following processes is used in social media monitoring? A. Personal selling B. Crowdsourcing C. Sentiment analysis D. Cold calling

answer

C. Sentiment analysis

question

Kelly's Kitchen, a restaurant, strives to improve its customer service and makes sure that its customers enjoy the food and ambience at the restaurant. The restaurant has a team that monitors and assesses customers' opinions about the restaurant on popular food review sites. This scenario illustrates _____.

answer

social media monitoring

question

Which of the following statements is true of advertising in social media? A. Social media are an unpaid form of marketing. B. The effectiveness of social media can be easily measured. C. Social media mostly focus on deepening relationships with customers. D. Marketers believe that social media are not a worthwhile investment.

answer

C. Social media mostly focus on deepening relationships with customers

question

Social media measurements are meaningless if:

answer

they are not tied to key performance indicators.

question

Buzz, a social media metric, is based on:

answer

posts and impressions, by social channel, by stage in the purchase channel, by season, and by time of day.

question

_____, a social media metric, refers to media mentions, influences of bloggers reached, influences of customers reached, and second-degree reach based on social graphs.

answer

Influence

question

According to Charlene Li and Josh Bernoff of Forrester Research, which of following categories of social media users posts comments, ratings, and reviews of products and services on blogs and forums? A. Critics B. Spectators C. Joiners D. Inactives

answer

A. Critics

question

Monette has posted over 100 book reviews on discussion forums. She also frequently reviews products and services and posts her reviews on local restaurants on review sites. As a social media user, Monette would best be characterized as a _____.

answer

Critic

question

According to Charlene Li and Josh Bernoff of Forrester Research, _____ are those who maintain a social networking profile and visit other sites.

answer

joiners

question

According to Charlene Li and Josh Bernoff of Forrester Research, _____ are those who read blogs, listen to podcasts, watch videos, and generally consume media

answer

Spectators

question

Bethany follows several blogs every day and uses YouTube frequently to watch latest videos. She does not have her own Web site, and she almost never posts any comments on the sites she visits. She just enjoys reading and watching the content on popular sites. In this case, Bethany would be best characterized as a _____.

answer

spectator

question

_____ are independent and not associated with the marketing efforts of any particular company or brand.

answer

Noncorporate blogs

question

Frank, a restaurant chain's social media manager, wants to conduct an online contest to promote his restaurant. He conducts the contest on a social networking site that allows people to post only 140-character-long updates. In this context, Frank is using -_____ to conduct the contest.

answer

a microblog

question

Marla, a 55-year-old woman, wants to stay in touch with her son, who is away at college. She also hopes to connect with some of her high school friends. In this case, which of the following is Marla most likely to use for this purpose? A. SoundCloud B. YouTube C. Facebook D. Flickr

answer

C. Facebook

question

Magnira Corp. is an organization that manufactures clothing for women. It uses Facebook to promote its products. Given this information, which of the following is true of Magnira Corp.? A. It should not disclose the prices of its products and services to public. B. Its pages are subject to search engine indexing C. It is restricted from communicating directly with fans and interested stakeholders due to risks of hacking. D. Its pages are considered individual profiles

answer

B. Its pages are subject to search engine indexing

question

Twitpic, Flickr, and Photobucket are all examples of:

answer

media sharing sites

question

A popular production house wants to release a teaser of one of its upcoming movies to create a buzz among public. Given this information, which of the following would be the best platform to be used by the production house? A. StumbleUpon B. Photobucket C. YouTube D. Imgur

answer

C. YouTube

question

Social bookmarking sites differ from social news sites in that:

answer

the objective of their users is to collect, save, and share interesting and valuable links.

question

Which of the following treats location-based micronetworking as a game? A. Facebook B. Twitter C. WordPress D. FourSquare

answer

D. FourSquare

question

_____ are Web sites that allow consumers to post, read, rate, and comment on opinions regarding all kinds of products and services.

answer

Review sites

question

Identify a true statement about online gaming. A. Massive multiplayer online games are called virtual worlds B. It restricts marketers from engaging with customers C. Many mobile games use mobile ads to generate revenue for the gamemakers. D. Fantasy games are most appropriate for marketing than social and real-world-like games.

answer

C. Many mobile games use mobile ads to generate revenue for the gamemakers.

question

Much of the growth in social media sites can be attributed to:

answer

new platforms like tablets and smartphones.

question

Short message service (SMS) is different from multimedia messaging service (MMS) in that:

answer

SMS does not allow the attachment of images, videos, and ringtones to text messages, while MMS does.

question

Which of the following is included in the second stage of creating an effective social media plan? A. Listening to customers B. Building relationships and awareness C. Defining strategies D. Identifying the target audience

answer

B. Building relationships and awareness

question

Which of the following actions is performed during the final stage of an effective social media plan? A. Setting objectives that can be specifically accomplished through social media B. Examining trends and best practices in the industry C. Listening to customers and understanding their expectations D. Making changes to the implemented campaign based on consumer response

answer

D. Making changes to the implemented campaign based on consumer response

question

T/F? To the consumer, price is the cost of something.

answer

False

question

T/F? Profit maximization means striving for profits that are satisfactory to the stockholders and management—in other words, a level of profits consistent with the level of risk an organization faces.

answer

False

question

T/F? Status quo pricing is a pricing objective that maintains existing prices or meets the competition's prices.

answer

True

question

T/F? The greater the number of different uses for a product, the more inelastic demand tends to be.

answer

False

question

T/F? Dynamic pricing is most useful when the capacity of a product or service cannot be fixed well in advance

answer

False

question

T/F? While break-even pricing is relatively simple, markup pricing uses more complicated concepts of cost.

answer

False

question

T/F? As products enter the growth stage of the product life cycle, prices generally begin to stabilize.

answer

True

question

T/F? Prices always steadily decline for a product in the decline stage of the product life cycle.

answer

False

question

T/F? During the maturity stage of product life cycle, distribution channels become a significant cost factor.

answer

True

question

T/F? Price matching is one of the ways to counter a competitor's prices.

answer

True

question

T/F? When retailers stock exclusive versions of products that have similar specifications to ones carried in other stores but have different model or serial numbers, it facilitates price matching.

answer

False

question

T/F? An effective distribution network can sometimes overcome other minor flaws in the marketing mix.

answer

True

question

T/F? Adequate distribution for a new product can often be attained by offering a small profit margin to distributors.

answer

False

question

T/F? Extranets enable buyers to quickly and easily compare products and prices, putting them in a better bargaining position.

answer

True

question

T/F? Price is often used as a promotional tool to increase consumer interest.

answer

True

question

T/F? lack of price matching contributes to a low price image.

answer

False

question

T/F? Manufacturers find that their large customers such as department stores often make specific pricing demands that the suppliers must agree to.

answer

True

question

T/F? According to garment makers, the demands of large customers are nearly wiping out profits for all but the very large suppliers.

answer

True

question

T/F? Unlike a firm that launches a new item resembling several others already on the market, a firm that introduces a totally new product with no close substitutes will have no pricing freedom.

answer

False

question

T/F? Predatory pricing is illegal under the Sherman Act and the Federal Trade Commission Act

answer

True

question

T/F? A rebate is a discount to wholesalers and retailers for performing channel functions.

answer

False

question

T/F? Psychological pricing is marketing two or more products in a single package for a special price.

answer

False

question

T/F? For businesses, consumer penalties are part of doing business in a highly competitive marketplace.

answer

True

question

At a local supermarket, Linda saw a box of plant fertilizer that was retailed at $25 but was marked down to $20.99. Given this information, $20.99 is the:

answer

price

question

To consumers, value is based upon:

answer

their perceived satisfaction.

question

At Fournotts, a retail corporation, Riya saw a box of collector's edition comic books. Each book was priced at $28.50, but a customer who bought five of the books was required to pay only $19.99 for each book. Riya bought one book and her friend bought five books. In this case, Fournotts' revenue from this purchase is _____.

answer

$128.45

question

Consumers are more likely to perceive the value of a product to be less than its cost if:

answer

in consumers' minds, the product's price is set too high.

question

For convenience, pricing objectives can be divided into three categories, which are:

answer

profit oriented, sales oriented, and status quo.

question

Profit-oriented pricing objectives include:

answer

target return on investment

question

Diffusion Research Company specializes in conducting market research for various firms. When it receives proposal for a new research, its management first estimates the cost of conducting the research and delivering the final research report. The management, then, attempts to reduce the costs through efficient operations. It also tries to maximize revenue by satisfying its customers' requirements.In this case, Diffusion Research Company uses a _____ pricing objective.

answer

profit-oriented

question

To increase the popularity of its new range of smartphones, GizmoPro Inc., a mobile phone manufacturer, offered several other products for free to customers who bought the smartphones. However, the management of GizmoPro Inc. soon found this to be an unsustainable practice. The company then decided to offer discounts on the products instead of giving them for free. These actions of the management of GizmoPro Inc. are aimed at:

answer

profit maximization.

question

Fresnas Designs Inc. is a company known for its quality interior decorations, customized service, and affordable prices. Given the high demand in the market for its service, the management of Fresnas Designs Inc. could price its products higher, but it prefers to price its products such that it will earn a reasonable revenue. In this case, the management of Fresnas Designs Inc. bases its pricing policy on:

answer

earning satisfactory profits

question

Return on investment (ROI) for a firm:

answer

measures management's overall effectiveness in generating profits with the available assets.

question

Britney,a teenager, startsher own business of selling cupcakes to coffee shops and restaurants. She strives to increaseeither the market share in terms of the revenue generated or the number of cupcakes sold. This is an example of _____.

answer

sales-oriented pricing objective

question

Stone Restaurant, a newly opened restaurant, was unable to attract a lot of customers. Since the owner of the restaurant had to pay the loan amount that he had taken to start the restaurant, he decided to implement a strategy that would help him attract more customers. He offered about 20 percent discount on all the dishes on the menu on weekends. This strategy, he thought, would help him earn enough to be able to make the loan payment. In this case, the owner's pricing objective can be classified as:

answer

sales maximization.

question

Unlike a firm that strives for market share, a firm with the objective of maximizing sales:

answer

ignores profits, competition, and the marketing environment as long as sales are rising

question

Identify a true statement about status quo pricing. A. It leads to optimal pricing of a product. B. It requires serious planning and is difficult to implement. C. It gives great importance to the demand and costs of a product. D. It can lead to a pricing disaster.

answer

D. It can lead to a pricing disaster.

question

At a price of $2,000 per unit, the demand for Ranger 60 mountain bikes from Cloyd's Inc. is 300 units, which is same as the number of bikes manufactured every year. If the marketing managers at Cloyd's Inc. decide to sell each bike at a price lower than $2,000 per unit, _____.

answer

a shortage of bikes will be created

question

_____ is the quantity of a product that will be offered to the market by a supplier at various prices for a specified period.

answer

Supply

question

Inelastic demand is a situation in which:

answer

an increase or a decrease in price does not significantly affect the demand for a product.

question

Which of the following happens if demand is elastic? A. As price goes up, consumer demand changes. B. The competition between organizations reduces C. There is no substitute for a product in such case. D. Purchasing power of the consumer decreases.

answer

A. As price goes up, consumer demand changes.

question

When there are many substitutes available for a particular product, consumers:

answer

can easily switch from one product to another.

question

Demand for a product will be inelastic if:

answer

its price is so low that it is an inconsequential part of an individual's budget

question

Dynamic pricing is used to:

answer

adjust prices over time to maximize a company's revenues

question

The managers at Click-to-Door, a giant e-commerce Web site, closely monitor its rival online retailers to analyze the prices at which they offer certain goods and how the consumers respond to the changes in prices. They use the results of this analysis to constantly change the priceson their Web site to maximize sales as well as profits. In this case, which of the following models of pricing does Click-to-Door follow? A. Comparative pricing B. Dynamic pricing C. Capacitive pricing D. Dependent pricing

answer

B. Dynamic pricing

question

Identify a true statement about yield management systems. A. They determine the availability of product substitutes in industries that are experiencing rapid change. B. They use a software that employs techniques such as discounting early purchases and limiting early sales at these discounted prices. C. They predict necessary service levels required to achieve revenue goals D. They determine whether it is financially more feasible to buy a new product or repair a broken one.

answer

B. They use a software that employs techniques such as discounting early purchases and limiting early sales at these discounted prices

question

Which of the following statements is true about yield management systems (YMS)? A. They are used to eliminate the problem of simultaneous production and consumption from services. B. They are can be used only in service industries C. They are complex pricing systems used to establish price equilibrium. D. They are used to make profitable use of the unused capacity of perishable goods

answer

D. They are used to make profitable use of the unused capacity of perishable goods

question

A cost that changes with the level of output is called a(n) _____.

answer

variable cost

question

_____ does not change as output is increased or decreased.

answer

Fixed cost

question

_____ is a method of determining what sales volume must be reached before total revenue equals total costs.

answer

Break-even analysis

question

Which of the following is a limitation of break-even analysis? A. It does not give an estimate of how much profit can be earned once the break-even point is obtained B. It does not give weightage to the cost of labor that is incurred during production. C. It is applicable only when the demand for a product is elastic D. It is hard to determine which costs are fixed and which costs are variable

answer

D. It is hard to determine which costs are fixed and which costs are variable

question

Which of the following is true of simple break-even analysis? A. It ignores the selling price of a product. B. It does not give weightage to the cost of labor that is incurred during production. C. It is applicable only when the demand for a product is elastic. D. It ignores the demand for a product.

answer

D. It ignores the demand for a product.

question

Which of the following is true of products in the introductory stage of their life cycle? A. Their prices will rise dramatically as they move into the specialty goods category. B. They experience price increases that are cost initiated. C. Their prices are usually set high D. They experience an elastic demand in the core of the market.

answer

C. Their prices are usually set high

question

Adequate distribution for a new product can often be attained by:

answer

offering a larger-than-usual profit margin to distributors.

question

Which of the following statements is true about shopping bots? A. The broad-based type of shopping bot searches for prices for only one type of product such as consumer electronics (CNET) or travel-related services (Kayak). B. They create opportunities for prestige pricing. C. They search the Web for the best price for a product. D. The niche-oriented shopping bot searches a wide range of product categories such as Google Shopping or Nextag.

answer

C. They search the Web for the best price for a product.

question

Shopping bots theoretically give pricing power to:

answer

consumers

question

Unlike niche-oriented shopping bots, broad-based shopping bots:

answer

operate using a Yellow Pages type of model.

question

Which of the following is an impact of the Internet on consumers' shopping behavior? A. The Internet auction business is likely to disappear in the future. B. Consumer reviews on the Internet about various products tend to be equal in quality. C. Business-to-business auctions are likely to be the dominant form of Internet auction in the future. D. Extranets are programs that search the Internet for the best price for a particular product.

answer

C. Business-to-business auctions are likely to be the dominant form of Internet auction in the future.

question

During off-season, the Rues Hotel offers a 25 percent reduction on its rooms to attract guests. Given this information, which of the following is illustrated in this scenario? A. The power of yield management systems B. The advantage of markup pricing C. The relationship between price and quality D. The use of price as a promotional tool

answer

D. The use of price as a promotional tool

question

Which of the following is true of price-quality relationships? A. Consumers perceive lowerpriced goods to be more long lasting than higherpriced goods. B. Consumers believe that higher priced goods are manufactured with better quality of ingredients C. Consumers lack information about the quality of lowerpriced goods due to poor advertising. D. Consumer demands for higherpriced goods remain unchanged even if their quality declines.

answer

B. Consumers believe that higher priced goods are manufactured with better quality of ingredients

question

The marketing manager of Rues Golf Club finds that the club can increase its market share and become the industry leader if it slashes membership prices by 50 percent during the first quarter of the year. However, the club cannot achieve its target return on investment if its slashes its membership prices during a quarter. This conflict illustrates:

answer

the need for trade-offs in pricing objectives

question

_____ is sometimes called a "market-plus" approach to pricing because it denotes a high price relative to the prices of competing products.

answer

Price skimming

question

A price skimming strategy is most often used for a new product when

answer

the product is perceived by the target market as having unique advantages.

question

_____ is a pricing policy whereby a firm charges a relatively low price for a product when it is first rolled out as a way to reach the mass market.

answer

Penetration pricing

question

Which of the following statements is true of unfair trade practice acts? A. They prohibit any firm from selling to two or more different buyers B. Unfair trade practice lawsprevent oligopoly leaders from joining together and fixing prices at the highest rates that a market will allow. C. They establish penalties for companies that engage in predatory pricing. D. State enforcement of unfair trade practice laws has been lax partly because low prices benefit local consumers.

answer

D. State enforcement of unfair trade practice laws has been lax partly because low prices benefit local consumers.

question

Firms that indulge in price fixing

answer

decide how much to charge for a product.

question

Univ Airlines and Mirago Airlines are two competing airlines. They make an agreement to charge customers a certain price for airfreight. This leads to the filing of several lawsuits against them by other airlines. In this case, Univ Airlines and Mirago Airlines can be charged under _____.

answer

the Sherman Act

question

_____ is the selling to two or more different buyers, within a reasonably short time, of commodities (not services) of like grade and quality at different prices where the result would be to substantially lessen competition.

answer

Price discrimination

question

Ava Lawnmowers Inc. is a company that manufactures and sells lawn mowers. Since it faces stiff competition in the market, it sells its products at different prices depending on the number of lawn movers purchased by the consumers.In this scenario, the company indulges in _____.

answer

price discrimination

question

When Lofonift Inc. introduced its flagship product, an MP3 player, it captured the MP3 player market by offering its product at the lowest price in the market. This gradually forced many of its competitors out of business. Once its competitors were out of business, Lofonift Inc. raised its prices. In this scenario, Lofonift Inc. most likely indulged in _____.

answer

predatory pricing

question

_____ is a price reduction offered to buyers buying in multiple units or above a specified dollar amount.

answer

quantity discount

question

A _____ is a price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a bill.

answer

cash discount

question

In _____,the seller pays all or part of the actual freight charges and does not pass them on to the buyer.

answer

freight absorption pricing

question

_____ is a price tactic that charges freight costs from a given point, regardless of the city from which the goods are shipped.

answer

Basing-point pricing

question

99-Center Inc. is a retail store where all its merchandise is priced at 99 cents. This retailer uses a _____.

answer

single-price tactic

question

_____ is a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities.

answer

Flexible pricing

question

Which of the following statements is true of price lines? A. Buyers cannot be offered a wide variety of merchandise at each established price. B. Price lines enable a seller to reach several market segments. C. Firms have to carry a larger total inventory than it could without price lines. D. Price lines are advantageous when costs rise continually

answer

B. Price lines enable a seller to reach several market segments

question

_____ is a price tactic that tries to get consumers into a store through false or misleading price advertising and then uses high-pressure selling to persuade consumers to buy more expensive merchandise.

answer

Bait pricing

question

Unlike even-numbered prices, odd-numbered prices:

answer

connote a bargain.

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