buad exam 3

Assume a company sells its product for $5.00 each, has a total fixed cost of $3,000, and variable cost of $2.00. How many do they need to sell in order to break even (in other words, what is the break even point)? A. 1000 B. There is not enough information given to calculate the break even point C. 2000 D. 1500 E. 500

A. 1000

Why would missing information be a form of deceptive advertising? A. It is deceptive because of what the ad doesn't say which allows consumers to infer the wrong conclusion B. Because it is an exaggeration of the truth C. Because it makes objective false claims D. Because it uses creative camera work that makes consumers believe something which is not true E. Because it makes claims that defy scientific principles

A. It is deceptive because of what the ad doesn't say which allows consumers to infer the wrong conclusion--------CORRECT

Which of the following is true of marketing ROI? A. Marketing ROI measures the profits generated by investments in marketing activities. B. Marketing ROI uses only those marketing effects that are measured in dollar terms. C. Marketing ROI cannot be assessed in terms of standard marketing performance measures, such as brand awareness, sales, or market share. D. Marketing ROI is the net return from a marketing investment divided by the profit from the marketing investment. E. Marketing ROI ignores customer-centered measures of marketing impact, such as customer acquisition and retention.

A. Marketing ROI measures the profits generated by investments in marketing activities.

The major obstacle(s) in success in an international market is (are): A. Self-referencing criteria, Ethnocentrism, Cultural Insensitivity, and Lack of Industry B. Lack of Industry C. Cultural Insensitivity D. Self-referencing criteria Ethnocentrism

A. Self-referencing criteria, Ethnocentrism, Cultural Insensitivity, and Lack of Industry------correct

In the 70's, when the Nixon administration set caps on petroleum prices (price ceiling), it resulted in: A. Shortage B. Equilibrium price C. None of the above D. Surplus E. All of the above

A. Shortage

Breakeven point is when you make zero profit and zero loss A. True B. False

A. True

Peter Drucker said that "Every business enterprise has two and only two functions, namely, Marketing and Innovation." A. True B. False

A. True

Self-referencing criteria is a major obstacle in success in the international markets A. True B. False

A. True

The three critical dimensions of a product are - physical, service and benefit/idea A. True B.false

A. True

First degree price discrimination is: A. When each consumer pays a different price for the same good sold by the same seller B. A common practice C. A student discount is an example D. Never legal E. When the seller reduces price per unit when more units are purchased by the same consumer

A. When each consumer pays a different price for the same good sold by the same seller

What is greenwashing? A. When green marketing is deceptively used to promote the perception that an organization's aims are environmentally friendly B. When products are featured with the color green in ads C. When green marketing is correctly used to promote the perception that an organization's aims are environmentally friendly D. Any form of deceptive advertising E. When green marketing is deceptively used to mislead consumers that the product is good for them

A. When green marketing is deceptively used to promote the perception that an organization's aims are environmentally friendly------CORRECT

Which of the following is NOT one of the four basic types of compensation plans (for salespeople)? A. commission plus bonus B. straight salary C. salary and commission D. straight commission E. salary plus bonus

A. commission plus bonus -------CORRECT

A channel consisting of one or more independent producers, wholesalers or retailers that are seeking to maximize their own profits even at the expense of profits for the channel as a whole is a ________. A. conventional distribution channel B. independent channel allocation C. vertical distribution structure D. administered vertical marketing system E. vertical marketing system

A. conventional distribution channel

A society's basic values, perceptions, preferences, and behaviors are all part of its ________ environment. A. cultural B. political C. demographic D. natural E. economic

A. cultural

Which of the following is the MOST important for product designers to consider as they develop a product? A. how customers will use the product and what benefits they seek from the product B. what the product's technical specifications are C. which product features can be added to create higher-level models D. how the product is packaged to attract spontaneous purchases E. how the product appears

A. how customers will use the product and what benefits they seek from the product

Acme Inc., has modified the production processes of its widgets and gadgets in order to enter the Eastern European market. Acme is likely following a ________ strategy. A. market development B. product development C. market penetration D. diversification E. harvesting

A. market development

An increase in advertising increases break-even point (BEP) all else being same True False

A. true

Profit/Loss is Sales Revenue minus Total Cost. True False

A. true

Because business purchases are usually more complex than consumer purchases, business buyers tend to ________. A. use a more formalized buying process B. be influenced by the attitudes of others C. act independently D. rely on intuition E. make quicker purchasing decisions

A. use a more formalized buying process

Why are historically online shops such as Zappos.com adding print catalogs to their marketing methods? A.to drive online sales B. to offer a wider array of merchandise C.to provide comparative information for customers D.to save production money spent online E.to reduce the need for telemarketers

A.to drive online sales ------correct

Consumers expect companies to be authentic and transparent. Whey do companies often fail on this aspect? A. Because being transparent means that companies must have certificates B. Because being authentic means that companies are expected to celebrate the good but also disclose the bad C. Because companies are reluctant to share things with consumers D. Because consumers are skeptical E. Because companies are not so good in communicating with consumers

B. Because being authentic means that companies are expected to celebrate the good but also disclose the bad------CORRECT

Companies that use the Internet for direct marketing are required by law to post their privacy policies on their Web sites. A. True B. False

B. False

Developments in communication and transportation does not affect global business A. True B. False

B. False

From the perspective of the marketer, elements of the marketing environment are largely controllable. A. True B. False

B. False

IMF's current basket of currencies (Special Drawing Rights - paper gold) does not include Japanese Yen. A. True B. False

B. False

Which of the following statements about income distribution in the United States is NOT true? A. The top 20 percent of American earners account for almost half of all American income. B. In recent decades, the middle class has grown. C. In recent decades, the poor have remained poor. D. In recent decades, the rich have gotten richer. E. The top one percent of American earners receive a higher percentage of the nation's total income than do the bottom 50 percent of American earners.

B. In recent decades, the middle class has grown.

Assume a candy company sells 1600 candies at $2 each and has a variable cost of .50 cents and total fixed cost of $2000. Which of the following statements is true? A. It had a loss of $200 B. It made a profit of $400 C. None of the above options is true D. It made a profit of $200 E. It made a profit of $600

B. It made a profit of $400

If you were an event organizer, what type of payment method would you use to encourage consumers who purchased a ticket to attend the event? A. Reserving the ticket ahead of time but paying after the event B. Reserving the ticket ahead of time but paying for it shortly before the event C. Reserving and paying for the ticket a long time before the event D. All of the above are equally good E. None of the above

B. Reserving the ticket ahead of time but paying for it shortly before the event

Many people suggest that marketers can influence consumers to buy products and services that they don't need. What would be a good response against that claim? A. Consumers buy only what they need otherwise they wouldn't have bought the product B. The failure rate of new products is high C. Affluenza is not so common D. About half of American families spend more than they earn every year E. Children often make decisions regarding what to buy

B. The failure rate of new products is high -------CORRECT

Which of the following is NOT an example of a type of market offering? A. experiences B. all of the above are types of market offerings C. ideas D. places E. people

B. all of the above are types of market offerings

The salesperson meets the customer for the first time in the ________ step of the selling process. A. prospecting B. approach C. presentation D. preapproach E. qualifying

B. approach ----CORRECT

When managing a company's marketing efforts, the conduct of a SWOT analysis should ________ the development of its marketing strategy. A. take priority over B. precede C. evaluate D. follow E. coincide with

B. precede

Which of the following is an effect of the advancement of technology on the new marketing communications model? A. Fragmented markets have assimilated into a few mass markets B.Consumers rely less on marketer-supplied information than before. C. Marketers have to go through more intermediaries to connect with consumers. D. Marketers have increasingly moved towards mass-marketing techniques. E. Marketers tend to supply less information to consumers than before.

B.Consumers rely less on marketer-supplied information than before.

Amazon.com was the first company to use ________, which is technology that sorts through customer purchasing patterns to create personalized site content. A.personalized marketing B.collaborative filtering C.database marketing D.customer filtering E.records management

B.collaborative filtering------Correct!

New products typically make most of their profit in the introduction stage of product life cycle. A. True B.false

B.false

Positioning maps can be used for a variety of purposes. Which one of the following is NOT a typical reason for using a positioning map? A. To determine the most appropriate market segmentation variable B. To evaluate the current effectiveness of a company's positioning strategy C. All of the above are common uses for positioning maps D. To identify opportunities for new products E. To determine where a product stands relative to the competition

C. All of the above are common uses for positioning maps

Which of the following is true regarding causal research? A. Causal research is informal and unstructured. B. Causal research is the seventh step in the marketing research process. C. Causal research is used to test hypotheses about causes and effects. D. Causal research describes marketing phenomena E. Causal research is the same as casual research

C. Causal research is used to test hypotheses about causes and effects.

Channel members should be evaluated using all of the following criteria except which one? A. None of the above B. Adaptive criteria C. Channel leadership D. Economic factors E. Control

C. Channel leadership

What factors help a company decide its mode of entry in an international market? A. International Competition B. International Environment C. International Environment, International Market, International Competition, and Company Characteristics D.Company Characteristics E. International Market

C. International Environment, International Market, International Competition, and Company Characteristics-------correct

Which of the following is NOT an advantage of a territorial sales force structure? A.Travel expenses can be minimized. B. Accountability is clearly defined for each salesperson. C. Salespeople develop in-depth knowledge of a product line. D. Salespeople have the opportunity and incentive to build strong relationships with customers. E. Each salespersons job is clearly defined.

C. Salespeople develop in-depth knowledge of a product line.----CORRECT

The local Embassy Suites hotel offers rooms at $79/night for Tuesdays and Wednesdays. On the weekends, the same rooms cost $140/night. This is likely due to their understanding of: A. Brand equity B. Service inseparability C. Service perishability D. Service variability E. Service intangibility

C. Service perishability

Which of the following is true of strategic planning in a firm? A. Strategic planning involves the formulation of supporting objectives for business units based on the company's mission statement. B. Strategic planning occurs at the business-unit, product, and market levels rather than a company-wide level. C. Strategic planning deals with adapting the firm to take advantage of opportunities in its changing environment. D. Strategic planning deals with maintaining the company's current business ventures. E. Strategic planning focuses on the firm's internal environment rather than the external environment.

C. Strategic planning deals with adapting the firm to take advantage of opportunities in its changing environment.

Which of the following is a potential drawback of multibranding? A. The company can occupy more retail shelf space. B. An overextended brand name might lose its specific meaning for consumers. C. The company's resources may be spread over too many brands. D. Different product features can appeal to consumers with different buying motives. E. Consumers may become confused about the image of the main brand.

C. The company's resources may be spread over too many brands.

How does advertising affect our self esteem? A. In the commercials we see really gorgeous models B. These commercials invade out privacy C. We end up comparing ourselves to the models in the commercials D. We spend too much time on watching commercials E. Men are featured in advertising more than women

C. We end up comparing ourselves to the models in the commercials------CORRECT

The Remington Car Company is planning a release of new line of hybrid electric vehicles called the Electron. The car promises superior mileage and speed, while not harming the environment. If Remington decides to use advertising as the promotional tool during the car's launch, which of the following would constitute an advertisement for the Electron? A. a buyers-only lottery where an Electron buyer has a chance of winning a second Electron on a selected date B. having the Electron released only to select places and businesses that are concerned with environmental-friendly causes C. a front-page notice of the release of the Electron in all leading newspapers with a caption - "Green Speed" D. a press conference to discuss the various safety issues, actual mileage, and environmental features of the Electron

C. a front page notice of the release of the electron in all leading newspapers with a caption- "green speed"

Stew Leonard, owner/operator of supermarkets, reacts adversely to losing a single customer sale. He feels that this amounts to losing the entire stream of future purchases that a customer is likely to make if he/she remains in the area. This is an illustration of ________. A. profitability B. market share C. customer lifetime value D. market share maintenance E. share of customer

C. customer lifetime value

Companies should state their channel objectives in terms of targeted levels of ________. A. advertising B. conflict reduction C. customer service D. efficiency E. profitability

C. customer service

Financial services provider USAA sends materials about teaching teenagers how to drive safely to USAA customers who have children approaching driving eligibility age. USAA is using ________ information from a customer database to determine which customers should receive the materials. A.psychographic B.geographic C. demographic D.key contact E.behavioral

C. demographic ------correct

Nabisco is trying to figure out how families in the US interact during tv programs so they can design ads that seem realistic. They decide to have researchers stay with families and observe whether they talk throughout the program. This is an example of ________. A. survey research B. exploratory research C. ethnographic research D. experimental research E. causal research

C. ethnographic research

Which type of salesperson fits best with todays relationship marketing focus and solutions approach? A. razzle-dazzle salesperson B. salesperson on commission and not on salary C. problem-solver salesperson D. hard-sell salesperson E. salesperson on salary and not on commission

C. problem-solver salesperson-----CORRECT

The real value of a company's marketing research and information system lies in the ________. A. efficiency with which it completes studies B. variety of contact methods it uses C. quality of customer insights it provides D. amount of data it generates E. marketing information system it follows

C. quality of customer insights it provides

People cannot focus on all of the stimuli that surround them each day. A person’s tendency to screen out most of the information to which he or she is exposed is called ________. A. selective perception B. selective distortion C. selective attention D. selective retention E. selective attitude

C. selective attention

A manager of a Holiday Inn said, We have power and value in the market and people are willing to pay for it.; This manager is referring to ________. A. tangibility B. augmented benefits C.brand equity D. channel power E. inseparability

C.brand equity

Which of the following statements about internal data bases are true? A. Once a company has an internal data base, it can access the information quickly B. Keeping internal data bases up to date requires considerable effort C. Managing a company's internal data base typically requires sophisticated equipment and techniques D. All of the above E. Internal data bases are inexpensive to access

D. All of the above

The Diffusion of innovation graph is related to the following: A. Productivity graph B. Breakeven graph C. None of these D. PLC graph E. ROI graph

D. PLC graph

At maturity stage of the product life cycle, a company has the following options A. New market B. More advertising C. Re-positioning D. Re-positioning, New Market, Reduce Price, and More Advertising E. Reduce price

D. Re-positioning, New Market, Reduce Price, and More Advertising

Consumers buy flour, gas, water, and medicine at almost any price. This is because: A. The demand for these items is very elastic B. The demand for these items changes over time C. The demand for these items is higher than the supply D. The demand for these items is very inelastic E. None of the above

D. The demand for these items is very inelastic

In marketing research, the ________ phase is generally the most expensive and most subject to error. A. exploratory research B. reporting the findings C. planning D. data collection E. data validation

D. data collection

Which of the following best describes market segmentation? A. actually differentiating the market offering to create superior customer value B. the process of evaluating each market segment's attractiveness and selecting one or more segments to enter C. identifying consumer needs and creating a product to meet those needs D. dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors E. arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

D. dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors

The goal of market segmentation is to divide a _____________ market into subgroups whereby individuals within each given subgroup are ____________. A. homogeneous, heterogeneous B. homogeneous, similar C. heterogeneous, dissimilar D. heterogeneous, homogeneous E. homogeneous, well positioned

D. heterogeneous, homogeneous

The 55-year-old baby boomers share common needs in music and performers. When a music company decides to serve this group, the group is called a(n) ________. A. market segment B. differentiated market C. well-defined market D. target market E. undifferentiated market

D. target market

Which of the following best describes a company's business portfolio? A. the company's strengths in terms of technology, people, products, advertising, etc. B. the various industries in which the company operates business ventures C. the company's products or services in a particular market category D. the collection of businesses and products that make up the company E. the company's sources of revenue and the investments it makes in a particular year

D. the collection of businesses and products that make up the company

A salesperson should seek out hidden objections, ask the buyer to clarify any objections, take objections as opportunities to provide more information, and ________. A. seek to minimize or play down the objections B. move on to closing the sale C. compliment the buyer for bringing the objections up D. turn the objections into reasons for buying E. turn the objections into humor

D. turn the objections into reasons for buying -------CORRECT

Which of the following reflects the marketing concept philosophy? A. "You won't find a better deal anywhere." B. "When it's profits versus customers' needs, profits will always win out." C. "We're in the business of making and selling superior products" D."We don't have a marketing department, we have a customer department." E. "We build them so you can buy them."

D."We don't have a marketing department, we have a customer department."

________ are designed to engage consumers in interactions that will move them closer to a direct purchase or other marketing outcome. A.Corporate websites B. Brand Web sites C. Web communities D. Marketing websites E. Affiliate programs

D.Marketing websites------correct

A shared set of values, perceptions, wants, and behavior best describes which of the following: A. Personality B. Lifestyle C. Attitudes D. Economic Status E. A Culture

E. A Culture

________ are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. Consumers spend much time and effort in gathering information and making comparisons about these products. A. Industrial products B. Unsought products C. Line extensions D. Convenience products E. Shopping products

E. Shopping products

A corporate VMS has the advantage of controlling the entire distribution chain under ________. A. mass distribution B. a few intermediaries C. a profit-maximizing strategic plan D. franchise agreements E. Single ownsership

E. Single ownsership

Which of the following is a disadvantage of using the Internet as an advertising medium? A. Audience selectivity is low. B. The cost is high. C. The interactive capabilities of the medium are low D. There is a long publishing time. E. The audience controls ad exposure.

E. The audience controls ad exposure.

Which of the following is true of the competitive-parity method of setting an advertising budget? A. The budget is set based on the total revenues that a company makes B. The budget is set based on a percentage of future sales C. The budget is based on a percentage of current sales. D. The budget is set based on objectives set by the company and the cost required to accomplish it. E. The budget is set based on the amount spent by competitors in the same industry.

E. The budget is set based on the amount spent by competitors in the same industry.

Which of the following is an example of a combination of sales promotions and direct marketing? A. a company releasing a nationwide television ad with every buyer having a chance to win a lottery price B. a company holding a press conference to talk about their new product C. a company's sales force meeting customers directly and providing customized messages that suit that particular customer D. a company giving discounts on their product prices in order to gain a brand image E. a company e-mailing a customer about a discount on a product during a festival season

E. a company e-mailing a customer about a discount on a product during a festival season

The marketer wants to understand how stimuli are changed into responses inside the consumer________, which has two parts: the buyer characteristics that influence how he or she perceives and reacts to the stimuli and the buyer decision process itself. A. belief B. culture C. lifestyle D. social class E. black box

E. black box

A(n) ________ brings buyers and sellers together and assists in negotiations. A. retailer B. retail convergence C. wholesaler D. agent E. broker

E. broker

When pricing _____ , one product can be more expensive than the other because consumers need ____ product(s). But when pricing _____, products should have a similar price because consumers need _____ product(s). A. substitutes; either; complements; both B. None of the above C. complements; either; substitutes; both D. substitutes; both; complements; either E. complements; both; substitutes; either

E. complements; both; substitutes; either

When the size, purchasing power, and profiles of a market segment can be determined, it possesses the requirement of being ________. A. substantial B. observable C. accessible D. actionable E. measurable

E. measurable

Which of the following forces would marketers be MOST likely to be able to influence? A. geographic population shifts B. core cultural values C. income distribution D. increasing ethnic diversity E. media publics

E. media publics

Customers buy from stores and firms that offer the highest ________. A. discounts off of suggested retail prices B. concern for society's interests C. quality products D. level of customer satisfaction E. perceived value

E. perceived value

According to the simple five-step model of the marketing process, a company needs to ________ before designing a customer-driven marketing strategy. A. use customer relationship management to create full partnerships with key customers B. determine how to deliver superior value C. build profitable relationships with customers D. construct key components of a marketing program E. understand customer needs and wants

E. understand customer needs and wants

The basic premise of the family life cycle is: ________. A people will belong to different reference groups at different stages of their life b. none of the above. C. reference group influence will change during ones life cycle, going from aspirational groups, to associative groups and then back to aspirational groups. D. ones life will cycle through different stages as one grows older. E.certain events in the family over time lead to predictable changes in buying patterns.

E.certain events in the family over time lead to predictable changes in buying patterns.