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Questions for Principles of Marketing (MKT
3305) Practice Tests
Category: Chapter 10 Practice Test - (37 questions)
If a consumer compares brands of a                                                            shopping
particular product with respect to features,
price, and warranties, the consumer is
probably buying a(n) ________ product.


Convenience products                                                 are obtained with little effort


Product mix depth is measured by the                          product items in the product lines
number of _______


The term PRODUCT LINE refers to                    a group of related products considered to be
                                                      a unit because of marketing, technical, or
                                                                         end-use considerations


All the following are stages in the product life                                             evaluation
cycle (PLC) EXCEPT

introduction
evaluation
decline
maturity
growth



The PLC stage in which sales are zero and                                                  introduction
profits are negative is called

introduction
evaluation
maturity
decline
growth
Increasing sales characterize which PLC                                  growth
stage?

testing
evaluation
decline
maturity
growth



Sue called several airlines to compare rates                          shopping
and then chose a flight on Delta AIrlines
because it had a competitive price and better
reputation. An airline flight is an example of
which type of product?

convenience
shopping
speciality
unsought
accessory



Procter & Gamble makes at least six different                product line depth
shampoos. This illustrates

market item depth
product line depth
product line weight
product mix width
product line width



A product item is                                a specific version of a product

a component of a marketing mix
a particular type of brand
specific characteristics of a company's
product
a specific version of a product
a unit of the marketing mix
Korington Corporation markets diverse               width
products including Rosarita Meixican foods
and Samsonite luggage. These various
offerings illustrate Korington's product mix

length
dimension
width
volume
depth



Jane is aware that Polaroid has a talking      awareness
camera that is equipped with built-in
recorded comic messages to evoke smiles,
but she has no plans to find out any more
information about the camera. Jane is in
what stage of the pfoduct adoption process?

awareness
interest
evaluation
trial
adoption



The Pillsbury Dough Boy, whose figure          brand mark
appears on the package of Pillsbury
products, is an example of a

trademark
brand name
brand mark
trade name
spkesperson
Amway uses its name on all of its products,                          family
including Amway detergent, Amway
cosmetics, and Amway personal care items.
This strategy is known as _________
branding.

family
brand-extension
individual
segment
generic



The Kenmore brand name is an example of                             retailer
a(n) ___________ brand.

wholesaler
retailer
generic
manufacturer
independent



Packaging soup in red and white cans is an              category-consistent
example of _______ packaging.

category-consistent
secondary-use
innovative
multiple
handling-improved



An example of secondary-use packaging         a Cool-Whip storage container
would be

six-packs of canned drinks
Heinz ketchup bottles
the Vicks cough syrup child-proof cap
a Cool-Whip storage container
a Pringles crush-proof cylinder
The primary reason for including nutritional                       satisfy legal requirements
information on a candy bar label is to

perform a descriptive role
distinguish the product from competitors
satisfy legal requirements
respond to the trend in consumer health
consciousness
perform a promotional role



Which of the following is NOT a desirable        It can become used as the generic name for
feature for a brand name?                                       all products in the category.

It can facilitate the introduction of new
products.
It can become used as the generic name for
all products in the category.
It can make it possible for the firm to engage
in nonprice competition.
It can help build brand loyalty among buyers.
It is easy to say and spell.



Which of the following is an example of a                                     Bose speakers
manufacturer's brand?

Kroger's bread
Kenmore washing machines
Bose speakers
GAP jeans



One major characteristic of a private                 manufacturers are not identified on the
distributor brand is that                                                             product

a manufacturer actually owns the brand
producers are identified on teh product
producers become involved with the
marketing mix
manufacturers are not identified on the
product
manufacturers initiate these brands
Private distributor brands are initiated and           wholesalers and retailers
owned by

manufacturers
manufacturers adn retailers
wholesalers primarily
manufacturers adn wholesalers
wholesalers and retailers



If Nike allowed Timex to produce and market                     brand licensing
a line of watches under the Nike name, this
arrangement would exemplify

brand extension
brand licensing
family branding
individual branding
generic branding



Marketers should view packaging as a major       consumer convenience products
strategic tool, especially for

consumer convenience products
consumer shopping products
business products
specialty products
services



______ packaging means that the product is                  category-consistent
packaged in line with the packaging
practices associated with a particular product
category.

category-consistent
category-specific
primary-function
multiple-category selective
The Lunchables product is a combination fo                                   co-branding
Kraft cheese and Oscar Meyer lunch meats.
This is an example of _________.

co-branding
labeling
brand-extension
brand-association
secondary-use packaging



Co-branding is LEAST effective when                the brands involved do not represent a
                                                   complementary fit in customers' minds
it capitalizes on the trust and confidence of
customers in relation to the brands involved
the brands involved do not represent a
complentary fit in customers' minds
the main brand is obvious
the brands keep their separate identities
the brands use the distribution capabillities of
one partner to extend distribution sites



A _________ is the full and legal name of an                                 trade name
organization.

brand
brand mark
trademark
trade name
brand name



If a consumer goes to the supermarket to                                brand preference
purchase toothpaste and says to herself: "If
they have Crest, I will buy it, but if they do
not, I will buy Colgate instead," this
consumer is experiencing:

brand insistence
brand preference
brand recognition
brand marking
MRO
When a consumer says that she will only buy      specialty product
Anne Klein blouses and will not even
consider purchasing a different brand, then
these blouses for this consumer are an
example of a(n):

convenience product
specialty product
unsought product
staple
shopping product



All of the products that are sold by 3M               product mix
company are called 3M's:

width of product mix
depth of product mix
marketing mix
product mix
installations



When a hair stylist cuts your hair, this is an            service
example of a(n):

service
good
business product
process material
idea



"7Up" is an example of a(n):                         brand name

logo
brand mark
MRO
brand preference
brand name
When Ford Motor Co. uses Firestone tires on           eomponent part
its Explorer SUVs, these tires are an
example of a(n):

component part
process material
raw material
MRO
accessory equipment



Rose oil and jasmine are examples of                    raw materials
_______ in making perfume.

process materials
MRO
raw materials
business services
component parts



If a consumer says to herself: "I will only buy       brand insistence
Calvin Klein jeans," this consumer is
experiencing:

brand preference
MRO
brand insistence
trademarking
brand recognition



When Procter & Gamble introduced a new                brand extension
product called "Unscented Tide detergent,"
this was an example of:

brand licensing
brand franchising
co-branding
brand insistence
brand extension



Category: Chapter 11 Practice Test - (32 questions)
In which stage of the new-product                                        product development
development process does a marketer
convert a product idea into a prototype to
determine if it is technically and economically
feasible to produce?

idea generation
concept testing
business analysis
product development
test marketing



Test Marketing                                    the sample launching of the entire marketing
                                                       mix to dtermine probably buyer reaction


Business analysis is performed on a                 assess a product's projected sales, costs,
potential new product to                                                           and profits

interpret the results of the test-marketing
stage
ensure the feasibility or production
evaluate product ideas relative to the firm's
objectives and resources
assess a product's projected sales, costs,
and profits
determine which test market would be best
for the product



In which stage of new-roduct development                                           Screening
are product ideas analyzed to determine
whether they match the organization's
resources and objectives?

Business analysis
Screening
Positioning
Idea generation
Concept testing
Changes that make a product more versatile,                                     functional
effective, convenient, or safe are called
_______ modifications.

formal
quality
aesthetic
functional
positioning



Changes in a product that relate toa                                                quality
product's dependability and durability are
called ________ modifications.

functional
quality
aesthetic
deletion
actual



One purpose of screening is to                     determine whether the product idea is
                                                  consistent with the firm's objectives and
brainstorm for new ideas                                                         resources
determine whether the product idea is
consistent with the firm's objectives and
resources
secure consultants to provide ideas
determine whether it is technicaly feasible to
produce the product
determine how a product will affect sales,
costs, and profits



The product deletion approach that involves                                         runout
exploiting any strengths left in the product is
called

functional
phaseout
runout
immediate drop
actual
Sony's development of its ultra-thin screen                           aesthetic
(one inch) television sets with other design
changes would eb classified as what type of
modification?

product extension
aesthetic
functional
quality
brand



A genuinely new product, such as a digital      innovative benefits to customers
video disk player, provides

lower prices than existing products
at least two new product features
at least two new product features at a lower
price
better value than existing products
innovative benefits to customers



Assume that Kraft wants to expand its line of                   idea generation
food products. If Kraft marketers were to
send surveys to customers to determine the
food items they desire, Kraft would be in
which phase of new product development?

product development
business analysis
concept testing
idea generation
screening



Generally, the greatest number of new                                 screening
product ideas are rejected during which
phase of the new product development
process?

product development
screening
business analysis
concept testing
test marketing
Market managers are used when a company          different markets for the same product line
has

multiple products flowing into a common
market
multiple products flowing through the same
channels
different markets for the same product line
multiple products directed at teh same
consumer group
several high-volume products flowing into a
common market



Product managers are MOST useful when          multiple products flow into a common market

developing new products
multiple products flow into a common market
products and markets crisscross
different markets are developed for a single
products
the company has only one or two major
products



Head-to-head positioning works BEST when      the product's performance characteristics are
                                                      at least equal to those of competitive
the product's performance characteristics are                 brands, and the price is lower
at least equal to those of competitive
brands, and the price is lower
the price is higher, and the product's
characteristics are inferior
the product's performance characteristics are
not significantly different
the brand has unique characteristics that are
important to some buyers



The fact that the production of a service                                     inseparability
cannot be separated from its consumption by
consumers is called

inseparability
intangibility
irresponsibility
heterogeneity
separability
The necessary interaction between service                                 customer contact
provider and customer in order for a service
to be delivered is called

a client-based relationship
customer service
customer contact
the marketing concept
relationship marketing



High-contact services include which of the                                medical services
following examples

carpet cleaning
medical services
car repairs
lawn care
movie theatres



The fact that production of a service cannot   inseparability of production and consumption
be separated from its consumption is
referred to as

intangibility
inseparability of production and consumption
perishability
heterogeneity
homogeneity



Empty seats on an airplane or at a                                             perishability
basketball stadium are lost and can never be
sold again. This relates MOST directly to
which service characteristic?

intangibility
inseparability of production and consumption
perishability
heterogeneity
homogeneity
This characteristic of a service usually          heterogeneity
increases as the degree of
labor-intensiveness increases

intangibility
inseparability of production and consumption
perishability
heterogeneity
homogeneity



When marketers employ neat, clean,                  intangibility
professional-appearing contact persons and
clean, attractive physical facilities that help
provide customers with some assurance of
service quality, the marketers are trying to
overcome which service characteristic?

intangibility
perishability
inseparability of production and consumption
heterogeneity
homogeneity



When a Marriot Hotel cannot sell a hotel           perishability
room for yesterday's date, this is an example
of the services'

heterogeneity
homogeneity
perishability
inseparability
intangibility



When PepsiCo introduced flavored water to         line extension
its Aquafina line, this was an example of a(n)

line extension
product deletion
quality modification
concept test
functional modification
The process of eliminating a product from       product deletion
teh product mix is called

line extension
product deletion
test marketing
customer contact
inseparability



An intangible product that includes a deed, a           service
performance, or something that cannot be
processed physically is called a(n)

good
line esxtension
idea
product deletion
service



When Lee designs its jeans so that they fit              styling
women in a way that makes them more
attractive (e.g. no back pockets), this is an
example of

consistency of quality
product deletion
customer contact
brand management
styling



When Ford Motor Co. conducts focus groups       concept testing
to see the raction or potential customers to
a new styling of its Mustang convertible by
showing them a computer-assisted drawing
of this styling, this is an example of

business analysis
screeing
concept testing
idea generation
commercialization
Your hair stylist gives you a bad haircut                 heterogeneity
because she is disctarcted with some
personal issues in her life. This is an
example of the service's

homogeneity
intangibility
inseparability
heterogeneity
perishability



Kraft Foods changed the image of Cheez                    repositioning
Whiz into a microwavable cheese sauce.
This is an example of

repositioning
product deletion
line extension
business analysis
customer contact



When tickets to a baseball game cannot be                  perishability
sold after the game has already taken place,
this is an example of tickets'

intangibility
perishability
inseparability
heterogeneity
homogeneity



When Volkswagen introduced "the new                   commercialization
Beetle convertible" into the marketplace, this
was an example of

idea generation
screening
business analysis
commercialization
concept testing



Category: Chapter 12 Practice Test - (38 questions)
Which of the following is NOT a type of         quality
discount?

seasonal
quantity
trade
quality
allowances



Discounts that are aggregated over a given   cumulative
time period are called ______ discounts.

functional
cumulative
cash
trade
noncumulative



Price reductions given to buyers who pay          cash
promptly are called ______ discounts.

cash
seasonal
functional
trade
cumulative



Regional prices that adhere to a uniform          zone
pricing system are ______ prices.

uniform
base-point
geographic
zone
freight absorption
________ discounts help the seller produce                                         seasonal
steadily through a per annum period.

cash
funtional
quantity
noncumulative
seasonal



When one unit in a company sells a product                                           transfer
to another unit, this is called ______ pricing.

discriminatory
absorption
premium
base-point
transfer



What effect does quanitity discounting have        Large purchases reduce selling costs and
on the marketing function?                        may shift some of the storage, finance, and
                                                            risk-taking expenses onto buyers.
Large purchases reduce selling costs and
may shift some of the storage, finance, and
risk-taking expenses onto buyers.
Since discounts are usually minimal, they
provide no incentive for middlemen to furnish
transportation, storage, final processing,
and other services.
Discounts usually decrease the number of
marketing functions needed to get the
product to buyers.
Price discounting has no effect on the
marketing function.
Discounts usually increase the number of
marketing functions necessary to get the
product to buyers.
A trade discount is                               a reduction off the list price a producer gives
                                                  a middleman for performing certain functions
a deduction from the list price that reflects
the economies of purchasing in large
quantities
a reduction off the list price a producer gives
a middleman for performing certain functions
a price reduction given to the buyer for
prompt or cash payment
considered unethical and has been outlawed
in some states
a price reduction allowed for purahsing in
specific lot sizes



Price discrimination is                                                                   illegal

usually an involuntary reaction to a given
situation
discrimination only when customers do not
compete
legal only in e-commerce
illegal
legal in some states



Engaging in nonprice competition would                                         easy to duplicate
most likely NOT succeed if it is

easy to duplicate
a high-quality product
priced on the basis of cost
priced near the competitors' price
packaged differently than similar products



A ______ pricing objective resuluts in prices                                          cash flow
being set to recover cash as quickly as
possible.

profit
market share
product quality
return on investment
cash flow
A discount given to a buyer for performing               trade
activities such as transporting, storing, and
selling is known as a ______ discount.

cash
quantity
geographic
service
trade



Serta informs the buyer for Slater's Furniture   noncumulative
Centre that if she will increase her recent
order of 15 mattress sets to 20, Serta will
give her firm a 12 percent price reduction.
This offer is due to a recent overstock
condition at the factory and will not be
available in the future. This is known as a
______ discount.

cash
noncumulative
cumulative
trade
seasonal



If Nordica offered a 25 percent discount to a        seasonal
Colorado retailer that ordered ski boots in
February for delivery in May, the retailer is
being offered a ________ discount.

quantity
cumulative
trade
cash
seasonal



Given that demand is elastic, if the price           decrease
increases, total revenue will then

increase
stabilize
fluctuate
extrapolate
decrease
Elastic demand is BEST described as a             a change in price causes an opposite
situation in which                                     change change in total revenue

there is an unlimited amount of substitute
products
product cost is higher as a percentage of
total expenditure
a change in price causes an opposite
change change in total revenue
a change in quantity causes a change in
total revenue in the opposite direction
marginal cost equals marginal revenue



Marketers can determine whether a product                               total revenues
is price elastic by

total market share
total revenues
changes in demand
dividing price by quantity
a percentage change in quantity



Elasticity of demand describes the                change in quantity demanded due to
                                                                      changes in price
change in quantity demanded due to
changes in price
change in total revenue resulting from
change in demand
change in price resulting from change in
demand
inverse change in total revenue resulting
from change in price
parallel change in total revenue resulting
from change in price



A cost that is a function of the changes in the                               variable
number of units produced is known as a(n)
________ cost.

marginal
variable
average fixed
fixed
nontraceable
The breakeven point is the point where          total production costs are euqal to total
                                                                               revenue
marginal revenues are equal to marginal
costs
a reasonable profit has been earned
all variable costs have been recovered
marginal revenues are equal to total
revenues
total production costs are euqal to total
revenue



For what type of product would you expect                 products with elastic demand
demand to increase as price falls?

services
products with an inverted C-shape demand
curve
products with inelastic demand
products with elastic demand
prestige products



James River, a manufacturer of linens,                                 rent for the plant
operates several plants. Which of the
following would be an example of a fixed cost
for James River?

cotton
rent for the plant
overtime labor
packaging
dye



The breakeven point in units is determined                   price minus variable costs
by dividing fixed costs by

total costs
marginal costs
price per unit
price minus variable costs
variable costs times price
A firm may temporarily sell products below                     increase market share
cost to

provoke a response from competition
give the competition a chance
increase the products' reputation for quality
increase market share
indicate the products' lower quality



A channel member expects                         producers to provide several support
                                                                            activities
to receive a loss for the function it performs
producers to give discounts regardless of
size of an order and promptness of payment
producers to provide several support
activities
to keep all unsold merchandise at its own
expense
to be required to use a large amount of
resources to carry a product



A price developed in the buyer's mind                         internal reference price
through experience with a product is called

external reference price
transfer pricing
customer response
internal reference price
price sensitivity



________ consumers are concerned about                               value-conscious
both price and quality or product

price-conscious
value-conscious
prestige-sensitive
cost-sensitive
quality-oriented
Which one of the following would be LEAST          costs sustained by the marketer's
likely to affect a marketer's pricing decisions?                         competitors

costs sustained by the marketer's
competitors
costs
channel member expectations
legal and regulatory issues
organizational and marketing objectives



A company located in St. Louis buys a                           F.O.B factory pricing
machine from a company in San Francisco. If
the company in St. Louis has to pay for the
shipping, this is called:

F.O.B. destination pricing
zone pricing
geographic pricing
F.O.B. factory pricing
base-point pricing



When Dell Computer Co. sells one more                                            MR
laptop computer, the change in total revenue
that occurs is known as

MR
MC
VC
TFC
TVC



The sum of the average fixed costs and the                                 total cost
average variable costs times the quantity of a
product that a factory produces is known as
the

marginal cost
marginal revenue
total variable costs
total cost
total fixed costs
The extra cost of producing one more unit of                 MC
a candy bar is that candy bar's

VC
FC
TC
AVC
MC



Value exchanged for products or services in                 price
a marketing transaction is known as

price
value conscious
barter
total cost
allowance



When Wal-Mart advertises on television that     price competition
its prices either match or beat the prices of
competitors, Wal-Mart is engaged in

an external reference price
price competition
nonprice competition
transfer pricing
an internal reference price



The graph of teh number of units that a           demand curve
company expects to sell at various prices
(assuming that all other factors do not
change) is known as a(n)

zone pricing
uniform geographic pricing
demand curve
marginal revenue
supply curve
If a company sells a product for $20, and it                          6,000 units
cost that company $15 in variable costs to
produce that product, and if that company
has total fixed costs for that month f $30,000,
then the breakeven point in units for that
company for that month is:

15,000 units
6,000 units
20,000 units
3,000 units
8,000 units



If a company located in Chicago buys a                E.F.O.B. destination pricing
product from a company located in Dallas,
and if the company in Dallas pays to have
the product shipped to Chicago, this is
called:

F.O.B. factory pricing
zone pricing
geographic pricing
base-point pricing
E.F.O.B. destination pricing



If a company needs to sell 5,000 units of a                             $200,000
product in a month to reach breakeven point,
and if that company sells that product for
$40 per unit, then the breakeven point for
that month in dollars is:

$125
$100,000
$200,000
$300,000
$250,000



Category: Chapter 13 Practice Test - (34 questions)
The steps involved in the process of           setting the demand
establishing a price include all of the
following EXCEPT

selecting a pricing strategy
setting the demand
developing pricing objectives
determining a competitors' prices
selecting a basis for pricing



If a brand maintains a constant market             industry sales
share, its sales can be estimated as a
percentage of

total market share
expected demand
changes in quantity demanded
change in price
industry sales



Which of the following is NOT an example of         special event
psychological pricing?

odd-even
customary
special event
prestige
reference pricing



When Idaho Technology introduced its line of      price skimming
solar-powered watches, it initially set the
price quite high but lowered the price as
competitors entered the market. Which of the
following describes the pricing strategy
initially used by Idaho Technology?

penetration pricing
customary pricing
prestige pricing
price skimming
psychological pricing
If considerable competition is expected,        penetration pricing
which of the following would MOST LIKELY
be used in setting the price of a new
product?

odd-even pricing
psychological pricing
penetration pricing
price skimming
prestige pricing



If ACME Products sets a limited number of              price lining
prices for selected groups of merchandise, it
is using

price lining
prestige pricing
odd-even pricing
customary pricing
premium pricing



Which of the following pricing methods would      cost-plus pricing
MOST LIKELY be used for custom-made
equipment and commercial construction
projects_

prestige pricing
return-on-investment
markup pricing
cost-plus pricing



A retailer of Crest toothpaste obtains the                      30
product for $2.80/unit and sells it at $4.00.
What is teh markup as a percentage of the
selling price_

7
30
70
40
60
Hertz prices its rental cars to match precisely   competition-based pricing
the prices set by Avis. Hertz is using

competition-based pricing
cost-based pricing
demand-based pricing
reference pricing
penetration pricing



Holiday Inn prices its rooms so that is is less             demand-based
expensive to stay on weekends than during
the week when there is heavy business
travel. This illustrates which type of pricing
method_

demand-based
seasonal
cost-based
competition-based
markup



Which of the following pricing objectives                       status quo
might a company establish if it already has a
favorable financial position and desires
nothing more_

survival
profit
cash flow
status quo
return on investment



A ______ pricing objective results in prices                     cash flow
being set to recover cash as quickly as
possible.

profit
market share
product quality
return on investment
cash flow
If marketers at Intel set prices to recover                                     product quality
research and development expenses and to
establish a high quality image for a new
microprocessor, they are probably using
which of the following pricing objectives_

market share
cash flow
survival
product quality
return on investment



Through ______ pricing, marketers try to                                              odd-even
influence buyers' perceptions of prices by
ending a price with certain numbers.

customary
odd-even
bundle
reference
prestige



Jose's Mexican Restaurant reduces the                                secondary-market pricing
prices on enchilada dinners between 3:00
and 5:00 p.m., when business is slower. This
is an example of

secondary-market pricing
penetration pricing
periodic discounting
random discounting
bait pricing



Negotiated pricing is                              establishing a final price through bargaining

charing different prices to different buyers for
the same quality and quantity of a product
the temporary reduction of process on a
patterned or systematic basis
establishing a final price through bargaining
charging the highest price that buyers will
pay
establishing and adjusting prices of multiple
products within a product line
Product-line pricing includes all of the         penetration pricing
following EXCEPT.

penetration pricing
premium pricing
bait pricing
price lining
captive pricing



Products are priced below near cost or below           price leaders
cost are known as

price toppers
price leaders
price headers
price forerunners
price liquidators



Foley's, a department store, is having one of   periodic discounting
its Red-Apple Sales, which usually lasts for
three days. This is an example of

random discounting
penetration pricing
negotiated pricing
everyday low prices
periodic discounting



An Appletree superrmarket places its               reference pricing
lower0priced store brand of spaghetti sauce
next to the higher-priced Ragu brand
spaghetti sauce. This is an example of

bundle pricing
multiple-unit pricing
reference pricing
everyday low prices
odd-even pricing
Wal-Mart advertises everyday low prices.                  sets a low price for its products on a
This means that Wal-Mart                            consistent basis rather than setting higher
                                                       prices and frequently discounting them
temporarily reduces their prices on an
unsystematic basis
sets a low price for its products on a
consistent basis rather than setting higher
prices and frequently discounting them
sets the prices on certain goods on the basis
of tradition
attempts to influence customers' perceptions
of price to make their products' prices seem
more attractive
temporarily reduces their prices on a
patterned or systematic basis



The "bait and switch" pricing strategy can be      a good strategy to facilitate sales of a line's
described as all of the following EXCEPT                                higher-priced products

an activity in which retailers have no
intention of selling a product that is
advertised at a low price
a type of bait pricing
illegal in some states
a good strategy to facilitate sales of a line's
higher-priced products
an activity in which retailers use the low price
merely to entice customers into the store
and to sell them higher-priced products



Dr. Meyer charges a standard fee of $95 for                                 professional pricing
a checkup, and $600 for use of his surgical
skills in a tonsillectomy. This is an example of

promotional pricing
psychological pricing
professional pricing
product-line pricing
differential pricing
Special event pricing is                           price cutting linked to a holiday, season, or
                                                                                          event
setting a price at a specific level and
comparing it with a higher price
setting a price at an artificially high level to
convey a quality image
setting a low price for products on a
consistent basis
temporarily reducing prices on an
unsystematic basis
price cutting linked to a holiday, season, or
event



Since jewelry that is purchased in a jewelry                                   prestige pricing
store in an upscale shopping mall is normally
priced very high, this is an example of

penetration pricing
prestige pricing
professional pricing
bait pricing
leader pricing



When Gillette sells an Excel razor in                                           captive pricing
Walgreen's for $7 so that it can make a high
profit on the blades that only work in this type
of razor, this is an example of

bundle pricing
premium pricing
skimming pricing
bait pricing
captive pricing
When Ben & Jerry's charges 50 percent              premium pricing
more for a pint of its "Cherry Garcia" ice
cream than the local supermarket charges
for its private brand ice crea, this is an
example of

penetration pricing
premium pricing
negotiated pricing
secondary-market pricing
captive pricing



McDonald's sets a price for Value Meal #3            bundle pricing
that includes a Big Mac, a medium fries, and
a medium drink. This is an example of

reference pricing
penetration pricing
bundle pricing
odd-even pricing
prestige pricing



When Best Buy sets one price for a                   bundle pricing
computer that also includes the software, the
mouse, the keyboard, the monitor, and a
printer, this is an example of

price leading
prestige pricing
professional pricing
bundle pricing
EDLP



When Bloomingdales' department store has        periodic discounting
a "July 4th blowout sale," this is an example
of

periodic discounting
random discounting
negotiated pricing
secondary-market pricing
captive pricing
Sam's Club sells 32 water bottles (16 oz           multiple-unit pricing
each) shrink-wrapped in a single package, at
a single pricing. This is an example of

prestige pricing
professional pricing
skimming pricing
bait pricing
multiple-unit pricing



When a customer has a price in mind that               customary price
she expects to pay in a supermarket for a
Snikers bar, this price is called a(n)

customary price
prestige price
professional price
odd-even price
multiple-unit price



The fact that Wal-Mart tries to have low                         EDLP
prices for products on a consistent basis
without having very many store-wide sales,
this is an example of

professional pricing
captive pricing
skimming pricing
EDLP
secondary-market pricing



When a department store crosses out a           comparison discounting
price on a sweater that was $80 and writes in
the new price of $60, this is an example of

prestige pricing
professional pricing
comparison discounting
penetration pricing
captive pricing



Category: Chapter 16 - (30 questions)
The communication process begins with a                                    source
person, group, or organization that is called
a(n)

audience
receiver
communication channel
medium of transmission
source



Creating product awareness is an important      introducing a new product or brand
promotion objective for an organization that
is

introducing a new product or brand
trying to stimulate demand for a product
category
attempting to move customers through the
product adoption process by encouraging
product trial
attempting to minimize the effect of a
competitor's promitional program
in the process of identifying interested
customers



The interference which causes a discrepancy                                 noise
between the meaning sent by the source
and the meaning received by the receiver is
called

channel capacity
receiver misinterpretation
interruptions
feedback
noise



The receiver's response to the message of                                feedback
the source is called

encoding
decoding
noise
transmission
feedback
The pull policy used in promotion creates                                         consumer
demand at what level?

consumer
wholesaler
retailer
manufacturer
middleman



Channel capacity is determined by the                       least efficient component of the
                                                                    communication process
medium of transmission chosen
intended receiver's prior knowledge
complexity of the information transmitted
least efficient component of the
communication process
size of the intended audience



Advertising could be defined as                  a paid form of nonpersonal communication
                                                        transmitted through a mass medium
a process of informing customers and
persuading them to purchase products
through personal communicators
nonpersonal communication in news form
the same thing as sales promotion
a paid form of nonpersonal communication
transmitted through a mass medium
an activity that acts as a direct inducement,
offering the customers added value for the
product



Which of the following is a characteristic of   it may be aimed at either final consumers or
sales promotion?                                                                 trade people

it is used on a continuous or cyclical basis
it may be aimed at either final consumers or
trade people
it is used to increase long-run sales
it is a comprehensive area that includes
promotion
it generally is used as the primary promotion
vehicle
Immediate feedback and knowledge of                                               personal selling
customers' needs are advantages of

advertising
publicity
sales promotion
public relations
personal selling



_______ informs potential customers about                                      pioneer promotion
the product: what it is, what it does, how it
can be used, and where it can be purchased.

feedback
edcoding process
channel capacity
pioneer promotion
promotion mix



The four possible elements of a promotion          advertising, personal selling, public relatiosn,
mix are                                                                     and sales promotion

advertising, marketing, personal selling, and
sales promotion
personal advertising, personal selling,
retailing, and sales promotion
price, product, place, and position
advertising, personal selling, public relatiosn,
and sales promotion
push policy, pull policy, promotion, an dpublic
relations



A sharing of meaning defines                                                      communication

information
promotion
communication
data transmission
noise
An individual, group, or organization that                   a receiver
decodes a coded message is

a source
a receiver
a medium of transmission
noise
feedback



______ is the process of converting one's                       coding
thoughts into symbols.

communicating
noise
decoding
coding
transmitting



As Nancy Craig prepares the script for a                        coding
radio commercial for her bookstore, she is in
which stage of the communicatin process?

transmitting
sourcing
decoding
coding
feedback



The manner in which a coded message is           medium of transmission
transmitted from the source to the receiver is
a

medium of transmission
decoding process
coding process
feedback process
relay channel
Pioneer promotion helps to stimulate                     primary demand

exclusive demand
selective demand
secondary demand
primary demand
elastic demand



A broad set of communication efforts used to              public relations
create and maintain favorable relationships
between an organization and its
stakeholders is called

public relations
personal selling
advertising
sales promotion
cause-related marketing



Slow feedback, high costs, and difficulty in                  advertising
measuring effects on sales are
DISADVANTAGES of

advertising
public relations
publicity
personal selling
sales promotion



Contests, free samples, and coupons are        sales promotion techniques
types of

advertising
public relations
personal selling techniques
sales promotion techniques
publicity techniques
A form of communication through touching is       tactile communication
called:

primary demand
proxemic communication
tactile communication
selective demand
kinesic communication



When Major League Baseball (MLB) spent                 primary demand
$250 million in an attempt to attract more
spectators to professional baseball games,
this was an example of an attempt to
increase:

primary demand
a push policy
channel capacity
integrated marketing communication
proxemic communication



When Dell Computer Co. sets up a sales                      push policy
force to call on businesses that have annual
sales in excess of $40 million to try to sell
them large quantities of desktop and laptop
computers, this is an example of a(n):

pull policy
promotion mix
coding process
integrated marketing communication
push policy



A salesperson at Best Buy is trying to          proxemic communication
convince a customer to purchase a 35-inch
plasma television. The customre backs away
from the sales person. This is an example
of:

tactile communication
kinesic communication
proxemic communication
telemarketing
a push policy
When a radio ad for a product is presented           noise
to a commuter, but that commuter is not
aware of the ad because he is talking on his
cell phone, this is an example of:

kinesic communication
noise
proxemic communication
tactile communication
the coding process



When Gillette Co. spends $100 million in        pull policy
advertising and sales promotion activities
aimed at consumers int he first year of the
launch of a new razor, this is an example of
a(n):

pull policy
push policy
personal selling policy
publicity policy
public relations policy



A salesperson realizes that a customer does     feedback
not understand the technical language that
he is using to describe a new stereo. He then
changes his language so that the customer
will understand what he is saying. This is an
example of:

noise
the promotion mix
tactile communication
a push policy
feedback
When a manager is talking to a subordinate    kinesic communication
who isnodding his head in agreement with
what the manager is saying, this is an
exmple of:

tactile comunication
kinesic communication
proxemic communication
personal selling
primary demand



A radio commercial for the opening concert        seletctive demand
of the St. Louis Symphony is an attempt to
increase:

kinesic demand
proxemic demand
tactile demand
seletctive demand
noise



When The Wall Street Journal has a                         publicity
font-page article on a hot new product from
Apple Computer, this is an example of:

sales promotion
personal selling
advertising
publicity
mass selling



Category: Chapter 17 - (26 questions)
Institutional advertising promotes                  company image

company image
product uses
government directives
product benefits
service benefits
Reminder advertising is used to              remind customers that the brand is still
                                                                          available
stabilize sales
remind customers that the brand is still
available
enlarge the number of uses of the product
remind consumers that a product has been
replaced by one better
remind consumers that salespeople can be
informative



A general term for the verbal portion of                                        copy
advertisements is

signature
leadlines
copy
subheadlines
title



Which type of publicity is defined as a                            press conference
meeting used to announce major news
events?

news release
feature article
captioned photograph
press conference
editorial



The first step in the development of an     identify and analyze the target audience
advertising campaign is to

set the advertising budget
develop the media plan
identify and analyze the target audience
define the advertising objective
create the advertising platform
If Benny's, a seafood restaurant, advertises                  competitive advertising
that it has the freshest seafood in town, it is
using

pioneer advertising
competitive advertising
primary demand advertising
defensive advertising
comparative advertising



A television commercial demonstrating the                        product advertising
versatility of the Mercedes sports utility
behicle is called

institutional advertising
defensive advertising
pioneer advertising
product advertising
public relations



_______ advertising points out a brand's                                 competitive
uses, features, and advantages that benefit
consumers but may not be available in other
brands.

reinforcement
reminder
institutional
defensive
competitive



Comparative advertising is MOST LIKELY to         services rather than tangible goods
be used for brands that are

services rather than tangible goods
attempting to compete on a nonprice basis
attempting to compete with market leaders
market leaders
competing in a less competitive market
An advertising platform consists of the           basic issues or selling points that an
                                                    advertiser wishes to include in the
form in which the basic issues of the                            advertising campaign
campaign should be presented
fundamental approach to measuring an
advertising campaign's effectiveness
basic issues or selling points that an
advertiser wishes to include in the
advertising campaign
broad objectives of the advertising campaign
clearly defined objectives of the advertising
campaign, stated in precise and measurable
terms



An advertising platform should include                       competitive products lack
selling features that not only are important to
customers, but also features that

are familiar concepts to those in the target
market
are easily recognized by the customer
competitive products lack
are reasonably inexpensive to develop
can be seen easily in a photograph



Marketers at Maytag are determining what                                         media
proportion of the budgest they will spend on
magazine, television, and radio
advertisements based on the cost and
effectiveness of each. The schedule created
by the Maytag marketers is called a(n)
_______ plan.

media
advertising-allocation
objective-task
arbitrary-allocation
media appropriation
A _______ allows an advertiser to compare                           cost comparison indicator
the costs of several vehicles within a specific
medium relative to the number of persons
reached by each vehicle.

cost/person index
vehicle/price indicator
unit/price selector
cost comparison indicator
media comparison indicator



In a print advertisement, the _______ should                                          headline
attract readers' attention and stimulate
sufficient interest so tha they will read the
rest of the ad.

signature
headline
subheadline
layout
body copy



Artwork in advertisements consists of                            the illustration and the layout

how the various elements of the
advertisement are arranged
the illustration and the layout
the illustration and the type of pring used in
the headlines
the illustration and the signature
the layout and the signature



Pioneer advertising is used to                    promote a product in the introductory stage
                                                                               of the life cycle
promote established brands
promote a product in the introductory stage
of the life cycle
promote a copmarison of brand names
promote pioneer products (those that have
been in the marketplace for a very long time)
introduce a competitive version of the
product
Any paid form of nonpersonal                                advertising
communication through mass media is
called:

publicity
advertising
public relations
sales promotion
personal selling



When an artist and a copywriter at an                       storyboard
advertising agency combine to sketch the
sequence of a planned television commercial
for V8 juice so that top managers of
Campbell Soup Co. can visualize what the
ad will say and show to viewers, this is an
example of a(n):

storyboard
pretest
posttest
reminder ad
reinforcement ad



The CPM for Time magazine that indicates      cost comparison indicator
the cost of exposing a thousand people to a
one-page ad in Time is an example of a(n):

cost comparison indicator
pioneer ad
reminder ad
illustration
pretest



An ad in Newsweek magazine that                   advocacy advertising
encourages Americans to do more recycling
is an example of:

product advertising
pioneering advertising
advocacy advertising
reinforcement advertising
an illustration
When Burke Marketing Research calls              an unaided recall test
people at home the day after Monday Night
NFL Football to ask them if they remember
any of the ads during the game the previous
night for a new car, this is an example of:

a recognition test
a pretest
a consumer jury
a press conference
an unaided recall test



A television ad that is aimed at people who   reinforcement advertising
have recently bought a new Honda Civic
Hybrid that tells them that they made a
"smart choice" is an example of:

competitive advertising
comparative advertising
pioneering advertising
reinforcement advertising
an illustration



The arrangement of the headline,                             the layout
subheadline, body copy, and signature in an
ad in Business Week is called:

a storyboard
an illustration
the media plan
the layout
artwork



When Carnival Cruise Lines aims its ads at         the target audience
seniors who are over age 50 and tells them
to sign up for a cruise and save $200,
seniors are an example of:

reinforcement advertising
reminder advertising
sales promotion
the layout
the target audience
The photograph of a baby in diapers that                    illustration
shows the baby standing inside a Michelin
tire magazine ad is an example of a(n):

copy
illustration
layout
storyboard
ad copy



When AOL places an ad in Sports Illustrated              an illustration
that shows a graph of the increase in its
Inernet subscribers over the past five years,
this graph is an example of:

ad copy
a storyboard
an illustration
public relations
publicity



Category: Chapter 18 - (30 questions)
Informing customers and persuading them to             personal selling
purchase a product through personal
communication in an exchange situation is
called

marketing
retailing
personal selling
sales promotion
personal promotion



When a salesperson calls on potential           cold canvass technique
customers without their prior consent, he or
she is employing the

cold canvass technique
repeat contact
referral appraoch
critical approach
door-to-door approach
The prospect is asked to buy the product in                                           closing
which step of the personal selling process?

evaluating
closing
approaching the customer
follow-up
overcoming objections



The three major types of support sales                       trade, technical, and missionary
personnel are

trade, technical, and missionary
trade, technical, and inside order takers
inside order takers, trade, and missionary
inside order takers, outside order takers, and
trade
outside order takers, missionary, and
technical



The straight salary method of compensating       pays the salesperson a salary for a specified
salespersons                                                                   period of time

pays the salesperson straight salary plus a
commission on sales
pays the salesperson by straight commission
on sales
pays the salesperson a salary for a specified
period of time
pays the salesperson a salary based on a
percentage of the firm's total sales
is not used often because the salesperson's
salary remains the same even if sales
increase



________ is a secondary sales promotion                                   buy-back allowance
method that gives resellers money for each
until bought after an initial deal is over

count-and-recount
buying allowance
free merchandise
buy-back allowance
merchandise allowance
______ are offered to customers for free as                     premiums
a bonus for making a purchase.

retailer coupons
point-of-purchase materials
free samples
premiums
dealer loaders



A gift given to a retailer who purchases a                 a dealer loader
specified quantity of merchandise is called

a premium
push money
a dealer loader
a dealer listing
free merchandise



Items such as outside signs, window             point-of-purchase displays
displays, counter, pieces, display racks, and
self-service cartons are

trade sales promotion methods
point-of-purchase displays
premiums
merchandise allowances
dealer loaders



In the personal selling process, ________                    preapproach
involves identifying key decision makers,
reviewing account histories and
presentations, identifying product needs, and
obtaining relevant literature.

prospecting
preapproach
approach
order taking
establishing sales-force objectives
When a salesperson from Canon develops a                                 prospecting
list of potential customers and evaluates
them on the basis of their ability, willingness,
and authority to purchase photocopiers, he
or she is engaging in

personal selling
customer identification
approaching the customer
sales preparation
prospecting



Two types of order getters are                     current customer salespersons and
                                                           new-business salespersons
inside order takers and field order takers
missionary salespersons and trade
salespersons
current customer salespersons and
new-business salespersons
missionary salespersons and technical
salespersons
advisory order takers and support order
takers



Connie Clarke, a trained engineer, is a                        technical salesperson
salesperson for an electronics manufacturer.
She advises current customers about the
characteristics and applications of her
company's products. Connie is a(n)

field order taker
inside order taker
missionary salesperson
trade salesperson
technical salesperson
A sales representative for a soft drink                         field order taker
producer travels to restaurants to determine
how much syrup each customer needs for
the coming period. The sales representative
would be classified as which of the
following?

trade salesperson
missionary salesperson
field order taker
order getting
inside order taker



Which of the following statements is
considered a DISADVANTAGE of the straight      selling costs are less predictable
commission compensation method?

it provides no incentives
it necessitates closer supervision of a
salesperson's activities
selling costs are less predictable
it may be difficult to administer
it tends to appeal to less effective
salespeople



New England Foods is using sales promotion                trade sales promotion
to motivate wholesalers and retailers to
carry a new salad dressing. What type of
sales promotion is the company using?

product sales promotion
consumer sales promotion
trade sales promotion
push promotion
pull promotion
DISADVANTAGES of ________ includes                            coupons
inability to attract potentially brand-loyal
customers, fraudulent usage, and usage by
current customers rather than new ones.

premiums
frequent-user incentives
money refunds
coupons
sweepstakes



Stimulation of customer loyalty is MOST        frequent-user incentives
LIKELY when which of the following is used?

sweepstakes
coupons
frequent-user incentives
premiums
samples



Which of the following sales promotion                          rebate
techniques sends a consumer a specific
amount of money for purchasing a single
product?

rebate
refund
coupon
buy-back allowance
buying allowance



Which of the following sales promotion                   sales contest
methods is used to motivate distributors,
retailers, and sales personnel through
recognition of outstanding achievenments?

buying allowance
sales contest
consumer sweepstakes
consumer contest
premium money
A Frito Lay salesperson who restocks the                trade salesperson
shelves at a supermarket with Frito Lay's
brand of snack foods is an example of a(n):

personal salesperson
trade salesperson
technical salesperson
a direct salesperson
a dealer loader



When Levi Strauss Co. tells retailers who sell     cooperative advertising
its Levi 501 jeans that it will pay 60 percent
of the cost of local newspaper ads that
feature these jeans if the retailers will pay 40
percent of the cost, this is an exmaple of:

dealer loading
pull money
free merchandise
reminder advertising
cooperative advertising



The tray liner that McDonad's places on all                P-O-P material
carrying trays for orders for customers inside
its restaurants for the new McGriddle
sandwich is an example of a(n):

P-O-P material
dealer loader
rebate
coupon
free sample



When PepsiCo places its new 20-ounce                             premium
bottle of Pepsi in a cooler at the checkout
counter of a supermarket and the top of the
bottle is clearly marked: "25more free," this is
an example of a(n):

dealer loader
free sample
premium
demonstration
dealer listing
A salesperson at Ace Furniture Store who is           combination plan
paid a base salary plus a commission on
whatever the salesperson sells is being
compensated on what type of plan?

straight commission plan
straight salary plan
combination plan
premium plan
order taker plan



When Epson advertises in Business Week                          rebate
for one of its printers and the ad offers $25
back from Epson for anyone who purchases
this printer during the month of October, this
is an example of a(n):

P-O-P material
coupon
demonstration
rebate
dealer loader



A manufacturer's agreement to pay resellers      merchandise allowance
certain amounts of money for providing
special promotional efforts is called:

coupon
advertising allowance
rebate
P-O-P material
merchandise allowance



When Procter & Gamble mails a small bottle                 free sample
of a new shampoo to all households in zip
code 63119, this is an example of a(n):

premium
free sample
cosumer sweepstakes
coupon rebate
A salesperson from PepsiCo who helps              a missionary salesperson
supermarket managers display cases of
Pepsi in the store is a type of:

a missionary salesperson
a direct salesperson
a technical salesperson
sales promotion
a dealer loader



When Kellogg's gives each wholesaler who                 buying allowance
purchases a case of its Kellogg's Corn
Flakes a $2 credit, this is an example of a(n):

buy-back allowance
merchandise allowance
premium
buying allowance
dealer loader

				
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