buad475 final

Breakeven quantity (or breakeven volume)

Fixed costs (or added costs) in dollars/Unit margin in dollars

What type of marketing strategy best exemplifies a straightforward mapping of a product to a customer's willingness to pay? -Perceived value -Segmentation by income -Sustainable differentiation -Good-better-best vertical differentiation

-Good-better-best vertical differentiation

During which stage of the product life cycle would Dannon Greek Yogurt most typically add new flavors and sizes to its new organic product line? -Introduction -Maturity -Growth -Decline

-Growth

According to Young and Rubicam's Power Grid, what are the key characteristics of an aspiring brand? -High differentiation and relevance, low esteem and knowledge -High differentiation and relevance, high esteem and knowledge -Low differentiation and relevance, high esteem and knowledge -Low differentiation and relevance, low esteem and knowledge

-High differentiation and relevance, low esteem and knowledge

You work for Amazon.com and you are charged with building consumer awareness for the latest version of the firm's Kindle reader. What type of digital advertising campaign should you run? -Click-based display ad campaign -Search ad campaign -Ad exchange display campaign -Impression-based display ad campaign

-Impression-based display ad campaign

Which of the following choices is NOT one of the reasons cost-plus pricing is so popular? -It is easy to justify to various stakeholders. -It captures the full price that customers might be willing to pay for a product. -It simplifies an otherwise complex pricing process. -It is easy to measure or estimate.

-It captures the full price that customers might be willing to pay for a product.

Merging and milking brands are examples of -increasing brand loyalty. -defending a brand. -liquidating brands from a product portfolio. -creating brand extensions.

-liquidating brands from a product portfolio.

All of the following are price indicators of customer price sensitivity EXCEPT: -performance as expected. -high in a relative sense. -easy comparability. -the existence of reference prices.

-performance as expected.

A firm's incentive to sell is equal to: -true economic value (TEV) minus product price. -product price minus cost of goods sold (COGS). -perceived value (PV) minus price. -true economic value (TEV) minus cost of goods sold (COGS).

-product price minus cost of goods sold (COGS).

All of the following metrics are typically included in a concept test EXCEPT: -perceived likeability. -product price. -perceived uniqueness. -likelihood to purchase the product.

-product price.

Research indicates that which of the following plays the greatest role in the product purchase decision process? -Point-of-purchase displays -Customer reviews/recommendations -Discounts -Banner advertising

-Customer reviews/recommendations

As a marketer, your goal is to use one type of digital marketing tool to both spur consumers to immediate action and to increase brand awareness. Which of the following digital marketing tools would you use? -Search ads -Display ads -Web pages -Social media

-Display ads

Profit Margin

(Per unit revenue - variable cost per unit)/Per unit revenue

Profit Impact

(Unit Margin * Units Produced and Sold) - Fixed Costs OR (Unit Volume* Unit contribution) - Fixed Costs

Customer lifetime value

(m/CR) - AC

IKEA has a breakeven volume of 100,000 units for a new lamp. The variable cost per unit is $75 and the revenue per unit is $99.99. The fixed costs are: -$2,499,000. -$2,500,000. -$3,333,000. -$5,000,000.

-$2,499,000.

The demand curve suggests that an auto manufacturer will sell 20,000 Mercedes-Benz M-Class vehicles when they are priced at $50,800, but when the price is reduced to $45,000, that quantity will increase to 27,000 units. What is the resulting elasticity? -4.38 1.24 6.73 -3.07

-3.07

A Napa Valley restaurateur plans to open an upscale wine bar where every glass of wine is priced at $15. Her rent in a popular California tourist area is steep; she must also pay high prices to advertise in trendy magazines and to hire people who are knowledgeable about wine. As a result of these and other factors, the wine bar's fixed monthly cost is $50,000. Most of the variable costs are a function of wholesale wine prices and storage expenses, producing a unit margin of $10. If increased competition forces the restaurateur to cut her price by $2.50 per glass of wine, what would be the breakeven volume? -5,000 -6,667 -4,000 -10,000

-6,667

Marketers often use which of the following technique to determine the impact of a price change? -Assessing perceived value -Price elasticity -Breakeven analysis -Competitive analysis

-Breakeven analysis

All of the following are examples of expansion of the existing product line of Coca-Cola EXCEPT: -Coke Zero. -Caffeine Free Diet Coke. -Coca-Cola Freestyle vending machine. -Diet Coke.

-Coca-Cola Freestyle vending machine.

Which of the following statements about the advertising-to-sales ratio approach to budgeting for marketing communications is TRUE? -It can be calculated easily without having to analyze customers, competitors, and other contextual factors. -It relies on projections of revenue and expenses. -It is reliable because it does not vary dramatically across product categories. -It is easy to use because revenue projections can be made without considering marketing support.

-It relies on projections of revenue and expenses.

Where on Young and Rubicam's Power Grid would a product with high brand recognition but with low differentiation and relevance likely reside? -Lower left quadrant/ New or fading brand -Lower right quadrant / Eroding brand -Upper left quadrant / Aspiring brand -Upper right quadrant / Power brand

-Lower right quadrant / Eroding brand

Marketers may choose among various approaches to attribute accurately the role of a particular digital ad in a purchase. Identify the approach that uses existing data on consumer interactions with each ad or search along the consumer's purchasing path to estimate the effect of each interaction. -Model-based -Linear -First interaction -Last interaction

-Model-based

Consumer-controlled media encompasses which of the following types of communications? -Rating websites with user-generated content -Reviews of a company's new product by magazine journalists -News coverage of a new product introduction -Online advertising

-Rating websites with user-generated content

HubSpot CEO Brian Halligan discusses inbound marketing in Video 4: Interview with HubSpot CEO Brian Halligan about Inbound Marketing 2.0 in the Core Reading. According to Halligan, digital marketers are making bad inbound marketing choices. Which of the following choices is NOT among them? -Spending more time creating content and less money on placement -Not measuring effectiveness well -Dabbling in inbound marketing and not going full in -Not realizing that the role of the sales rep has changed

-Spending more time creating content and less money on placement

The makers of Red Bull Energy Drink want to generate earned media and create associations between the brand and popular culture. Which of the following types of media vehicle may be particularly useful in this strategy? -Sponsorship of the Cliff Diving World Series -Advertising in the prime-time television show The Voice -Giving away free samples of Red Bull -Student brand ambassadors

-Sponsorship of the Cliff Diving World Series

In marketing communications, which of the following message elements performs the function of a strong takeaway or moral lesson? -Brand logo -Humorous appeal -Tagline or headline -Jingle or musical signature

-Tagline or headline

Which of the following choices is NOT a consideration for the depth of a product line? -The trialability of the product line -Potential for cannibalization -Customer heterogeneity and requirements specification -The effect on overall brand equity

-The trialability of the product line

You are considering websites on which to place your online display advertising. Which of the following factors will NOT affect the price that the websites charge for advertising space? -The website's speed -The prestige of the website -The website's social media tie-ins -The website's traffic

-The website's social media tie-ins

Which of the following best describes brand promise? -The differentiation of a product relative to its closest competitors -The set of human characteristics associated with a brand -The underlying value proposition conveyed and the marketing language used -What a company wants a consumer to do/gain/feel by using the product

-What a company wants a consumer to do/gain/feel by using the product

Leonard M. Lodish and Carl F. Mela suggest that all of following contribute to marketers' too frequent, shortsighted strategic vision EXCEPT -the short tenure of brand managers. -the dearth of data to measure long-term investment return. -the abundance of real-time sales data. -an increase in competitive barriers to entry.

-an increase in competitive barriers to entry

All of the following are typical marketing research techniques utilized in the new-product development process EXCEPT: -concept testing. -awareness and usage study. -focus groups. -surveys.

-awareness and usage study.

Norwegian Cruise Lines controls the availability of prices by offering deals to specific groups of buyers based on all of the following EXCEPT: -competition. -coupon usage. -information gathered via e-commerce. -location.

-competition.

To measure the effectiveness of marketing communications, marketers assess message delivery. Two common message delivery metrics that measure how much of the target market is exposed to the advertisement and the number of times they are exposed are: -cost per thousand and cost per click. -effective reach and frequency. -impact and advertising-to-sales ratio. -response and conversion rates.

-effective reach and frequency.

In 2016, having wifi at Starbucks is an example of a(n): -potential product. -generic product. -augmented product. -expected product.

-expected product.

All the factors below affect how a company might customize prices EXCEPT: -consumer tastes. -intensity of use. -competition. -fixed costs.

-fixed costs.

A firm might NOT want to engage in social media because(i) its product is unlikely to generate online conversation,(ii) the firm wants to act transparently,(iii) the reputational risk from hostile conversations about the product is fairly high. -ii only -i and iii only -i and ii only -i, ii, and iii

-i and iii only

Most executives agree that brand strategies must be engineered across the entire marketing mix and throughout the life cycle of a product. Which of the following is NOT a component of that marketing mix?(i) Pricing (ii) Market research (iii) Production (iv) Innovation -i only -iii only -ii, iii, and iv -ii and iv

-ii, iii, and iv

Interbrand, BrandZ, and Brand Finance all use qualitative and quantitative measurements to calculate brand value, but BrandZ model's greatest differentiating component is its: -reliance on the financial performance of the brand. -incorporation of proprietary global market research data. -use of net present value (NPV) of the trademark and associated intellectual property. -use of brand loyalty in its calculations.

-incorporation of proprietary global market research data.

After seeing increased competition, and in an effort to increase sales and profitability, Wonder Bread wants to extend its product mix breadth. The firm should consider all of the following EXCEPT: -tapping into scarce resources that could benefit the overall product mix. -leveraging a key asset of the company that underlies the current product offerings. -tapping into complementary-in-use products and thus enabling the firm to be a "total solution" supplier. -undertaking a business whose profit stream will probably correlate negatively with the profit streams of existing businesses, thereby reducing the overall risk of the enterprise.

-tapping into scarce resources that could benefit the overall product mix.

Marketers often assess the true economic value (TEV) by using all of the following EXCEPT: -the costs of competitors' products. -a cost structure study to understand the customer's underlying economics. -the performance of competitors' products. -the relative advantage or disadvantage offered by the focal product.

-the costs of competitors' products.

A customer is shopping for spices in a US supermarket. She pauses as she compares the Goya brand of cinnamon to the McCormick brand. She opts for the McCormick cinnamon, judging it to be of better quality. This instinctual bias is known as: -the corona effect -the provenance paradox. -brand resonance. -brand loyalty.

-the provenance paradox.

The Stage-Gate model includes all of the following steps EXCEPT: -test. -training. -development. -launch.

-training.

The number 1 driver of new product profitability is: -unique service. -a differentiated product that delivers benefits to the customer. -a product that provides a compelling value proposition to the customer. -unique superior product.

-unique superior product.

Retention rate

1- churn rate

Expected purchasing life

1/CR

Breakeven market share

Breakeven market value/Total market units

Selling Price

Cost + Expected margin

Unit Contribution

Per unit revenue - variable cost per unit

Gross margin on a total volume basis

Total sales revenue - Total cost of goods sold

Gross margin on a per unit basis

Unit selling price - Unit cost of goods sold

Market share

Units produced and sold/Total market units

s2

s1*RR