BUAD479 Exam 2 Quiz Questions
What type of marketing strategy best exemplifies a straightforward mapping of a product to a customer's willingness to pay? A good-better-best vertical differentiation B. Perceived value C. Segmentation by income D. Sustainable differentiation
A good-better-best vertical differentiation
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? A. social media B. search ads C. display ads D. web pages
C. display ads
Which of the following approaches is NOT an avenue for changing the position of Arm & Hammer Baking Soda in the minds of consumers in order to extend the product life cycle and increase sales? A. economic value B. social value C. functional value D. experiential value
C. functional value
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? A. -3.07 B. -4.38 C. 6.73 D. 1.24
A. -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 barâ 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? A. 6,667 B. 5,000 C. 10,000 D. 4,000
A. 6,667
Leonard M. Lodish and Carl F. Mela suggest that all of the following contribute to marketers' too frequent, shortsighted strategic vision EXCEPT A. an increase in competitive barriers to entry B. the short tenure of brand managers C. the dearth of data to measure long-term investment return D. the abundance of real-time sales data
A. an increase in competitive barriers to entry
In Dove's Real Beauty rebranding to replace women's notion of beauty (thin, white, and blonde) with women who are healthy, realistic, and have high self-esteem, the company used a variety of marketing communications vehicles- billboards, TV advertising, YouTube videos, print ads, and so on, to promote its message. At the same time, consumers also weighed in via blogs and parody videos, newspaper columnists wrote about the campaign, and TV talk shows devoted entire programs to the subject. This is an illustration of a brand's value claims and positioning being: A. co-created B. manipulated C. media-driven D. faithful
A. co-created
A brands position is based on value claims as perceived by: A. consumers B. investors C. suppliers D. competitors
A. consumers
Research indicates that which of the following plays the greatest role in the product purchase decision process? A. customer reviews/recommendations B. banner advertising C. discounts D. point-of-purchase displays
A. customer reviews/recommendations
All of the following are characteristics exhibited by winning products EXCEPT: A. good product quality, according to the customer's definition of quality B. benefits that are highly visible to the customer C. features easily perceived as useful by the customer D. solving a problem that the customer has with a competitive product
A. good product quality, according to the customer's definition of quality
Starbucks offers a variety of types of coffee to its customers at various price points based on the quality of the coffee beans and where the coffee is grown. This is an example of: A. good/better/best strategy B. controlling the availability of prices C. pricing based on transaction characteristics D. observable buyer characteristics
A. good/better/best strategy
John Deere & Co. is deciding whether to use a feature-based claim or a benefit-based claim for its new JD 750 tractor's positioning. Which of the following is a benefit-based claim? A. improved maneuverability and flexibility B. A fully automatic dual-path hydrostatic drive C. The first hydrostatic transmission D. Drive tracks' design means they are capable of being driven independently of each other
A. improved maneuverability and flexibility
which of the following approaches is NOT an avenue for changing the position of Arm & Hammer Baking Soda in the minds of consumers in order to extend the product life cycle and increase sales? A. increasing trade promotions B. adding new distribution outlets for the products C. enlarging the target market D. identifying new usage situations
A. increasing trade promotions
Where on Young and Rubicam's Power Grid would a product with high brand recognition but with low differentiation and relevance likely reside? A. lower right quadrant / eroding brand B. upper left quadrant / aspiring brand C. upper right quadrant / power brand D. lower left quadrant / new or fading brand
A. lower right quadrant / eroding brand
Based on consumer time spent using the media, in which area are US advertisers grossly underspending on advertising? A. mobile media B. radio C. print D. television
A. mobile media
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: A. tapping into scarce resources that could benefit the overall product mix B. undertaking a business whose profit stream will probably correlate negatively with the profit of streams of existing business, thereby reducing the overall risk of the enterprise C. leveraging a key asset of the company that underlies the current product offerings D. tapping into complementary-in-use products and thus enabling the firm to be a "total solution" supplier
A. tapping into scarce resources that could benefit the overall product mix
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 the better quality. This is instinctual bias is known as: A. the provenance paradox B. brand loyalty C. the corona effect D. brand resonance
A. the provenance paradox
In determining the effectiveness of sales promotions, which if the following metrics is NOT used by marketers? A. website bounce rate B. in-store customer traffic C. incremental sales lift D. redemption rates and cost per redemption
A. website bounce rate
All of the following are examples of expansion of the existing product line of Coca-Cola EXCEPT: A. Diet Coke B. Coca-Cola Freestyle vending machine C. Caffeine Free Diet Coke D. Coke Zero
B. Coca-Cola Freestyle vending machine
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? A. giving away free samples of Red Bull B. Sponsorship of the Cliff Diving World Series C. student brand ambassadors D. advertising in the prime-time television show The Voice
B. Sponsorship of the Cliff Diving World Series
Which of the following best describes brand promise? A. the differentiation of a product relative to its closest competitors B. What a company wants a consumer to do/gain/feel by using the product
B. What a company wants a consumer to do/gain/feel by using the product
A characteristic or example of earned media is: A. product information conveyed via personal selling B. a viral campaign C. advertising placement in the Super Bowl (premier American football programming) D. a company's website
B. a viral campaign
Saucony is considering adding a new item to its Hurricane line of running shoes to increase its product line depth. All options would be acceptable EXCEPT: A. inserting an item of a price and performance level that fills a gap between two existing items B. adding a new private-label product C. adding a lower-priced item that is still capable of satisfying the needs of some customers D. adding a higher-priced show with a higher performance level
B. adding a new private-label product
Ben & Jerry's Ice Cream buys keywords for a search marketing campaign such as "Ben & Jerry's Chunky Monkey" and "Ben & Jerry's Cherry Garcia." What type of keywords is the firm buying? A. native keywords B. branded keywords C. organic keywords D. generic keywords
B. branded keywords
Nestle introduced Butterfinger Peanut Butter Cups and the sales in the peanut butter chocolate candy category increased. This is an example of: A. legitimization of competitors' offerings B. category size impact C. competitive impact D. Net impact on own margins
B. category size impact
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: A. impact and advertising-to-sales ration B. effective reach and frequency C. cost per thousand and cost per click D. response and conversion rates
B. effective reach and frequency
In 2016, having wifi at Starbucks is an example of a(n): A. generic product B. expected product C. potential product D. augmented product
B. expected product
You've been tasked with creating native advertising for your employer. Your job will most likely entail. A. finding a publishers willing to write positive editorial articles about your firm without any type of payment B. finding or creating editorial pieces that can be turned into sponsored content on web pages, blending in with the normal editorial content on the page C. creating advertising the promotes the overall company image at the expense of the firm's brand
B. finding or creating editorial pieces that can be turned into sponsored content on web pages, blending in with the normal editorial content on the page
All of the following are examples of commonly used market research procedures for assessing price sensitivity EXCEPT: A. analysis of historic pricing and sales data B. focus groups C. customer surveys D. price experimentation
B. focus groups
For claims about the product, positioning statements should: A. avoid any reference to points of similarity with competitor brands B. focus on the single, most important value claim C. cite all of the benefits that the brand offers D. focus only on the points of differentiation between this brand and others
B. focus on the single, most important value claim
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? A. ad exchange display campaign B. impression-based display ad campaign C. click-based display ad campaign D. search ad campaign
B. impression-based display ad campaign
Merging and milking brands are examples of A. defending a brand B. liquidating brands from a product portfolio C. creating brand extensions D. increasing brand loyalty
B. liquidating brands from a product portfolio
The three interrelated elements in the marketing strategy formation process includes all of the following EXCEPT: A. decisions B. objectives C. analysis D. outcomes
B. objectives
All of the following metrics are typically included in a concept test EXCEPT: A. perceived uniqueness B. product price C. likelihood to purchase the product D. perceived likeability
B. product price
A firm's incentive to sell is equal to: A. true economic value (TEV) minus product price B. product price minus cost of goods sold (COGS) C. perceived value (PV) minus price D. true economic value (TEV) minus cost of goods sold (COSG)
B. product price minus cost of goods sold (COGS)
Which of the following choices is NOT an example of a business-to-business (B2B) buyer becoming more sophisticated and deliberate about purchasing smartphones for his sales force? A. studies alternatives B. realizes quality cues have an impact on price C. gains buyer power by bundling purchases together D. learns to navigate the complexities of price
B. realizes quality cues have an impact on price
IKEA's positioning includes the elimination of sales assistance on the floor, no delivery or assembly of products, and offering only a limited variety of models. Yet IKEA furniture stores also offer low prices, supervised play centers for children while parents shop, and low-priced but quality dining in their restaurants. This is an example of: A. horizontal positioning B. reverse positioning C. vertical positioning D. forward positioning
B. reverse positioning
Product indicators of sensitivity to price include all of he following EXCEPT: A. performance as expected B. the ability to switch easily C. low differentiation of alternatives D. easy comparability
B. the ability to switch easily
The number 1 driver of new product profitability is: A. a product that provides a compelling value proposition to the customer B. unique superior product C. a differentiated product that delivers benefits to the customer D. unique service
B. unique superior product
Samsung is positioning its newest model TV as having the sharpest picture and the most realistic colors, as well as having the thinnest screen monitor. This is an example of: A. breakaway positioning B. vertical positioning C. horizontal positioning D. triangular positioning
B. vertical positioning
Choosing whether to use a rational or emotional positioning appeal requires analysis of several factors. Which factor listed below is NOT relevant for this decision? A. how target customers choose a brand B. whether or not the product will be priced at a premium C. how target customers use the product D. how competitors use rational versus emotional appeals
B. whether or not the product will be priced at a premium
According to Young and Rubicam's Power Grid, what are they key characteristics of an aspiring brand? A. High differentiation and relevance, high esteem and knowledge B. Low differentiation and relevance, low esteem and knowledge C. High differentiation and relevance, low esteem and knowledge D. Low differentiation and relevance, high esteem and knowledge
C. High differentiation and relevance, low esteem and knowledge
IKEA has a breakeven volume of 100,000 units for their new AGUNNARYD lamp. The variable cost per unit is $75 and the revenue per unit is $99.99. The fixed costs are: A. 5,000,000 B. 2,500,000 C. 2,499,000 D. 3,333,000
C. 2,499,000
In which of the following stages of the product life cycle are promotion efforts minimal? A. Maturity B. Growth C. Decline D. Introduction
C. Decline
Which of the following statements about the advertising-to-sales ratio approach to budgeting for marketing communications is TRUE? A. it is easy to use because revenue projections can be made without considering marketing support B. It is reliable because it does not vary dramatically across product categories C. It relies on projections of revenue and expenses D. It can be calculated easily without having to analyze customers, competitors, and other contextual factors
C. It relies on projections of revenue and expenses
Which of the following best describes brand promise? A. the underlying value proposition conveyed and the marketing language used B. the differentiation of a product relative to its closest competitors C. What a company wants a consumer to do/gain/feel by using the product D. The set of human characteristics associated with a bran
C. What a company wants a consumer to do/gain/feel by using the product
Value-based claims that make a brand's positioning resonate with its target market are: A. reflected in the brand's premium price B. expressed via the cost savings afforded by the brand compared to higher-priced alternatives C. aligned with the target market's worldviews, ideologies, and beliefs D. supportable by the economic benefit provided by the brand
C. aligned with the target market's worldviews, ideologies, and beliefs
Relevance is a critical criterion in formulating a value claim for a positioning statement. The makers of Cialis, an erectile dysfunction (ED) drug, are considering a value claim that it "enhances intimacy and relationship." To assess the relevance of this claim, Cialis must determine if the claim: A. is supportable by scientific evidence B. can be endorsed by an authority figure or a celebrity C. aligns with the specific needs of the target market D. is unique among value claims of competitor brands
C. aligns with the specific needs of the target market
Norwegian Cruise Lines controls the availability of prices by offering deals to specific groups of buyers based on all of the following EXCEPT: A. coupon usage B. information gathered via e-commerce C. competition D. location
C. competition
The makers of Cialis, an erectile dysfunction (ED) drug, are deciding whether to use a rational appeal (lasts four times longer than competitor Viagra), or an emotional appeal (enhances relationship intimacy) in its brand positioning. To arrive at the right decision, management must consider: A. pharmacies' receptivity to carrying the drug B. the cost of manufacturing Cialis C. how ED sufferers choose an ED drug, that is, their purchase criteria D. the price of Cialis
C. how ED sufferers choose an ED drug, that is, their purchase criteria
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 reputation risk from hostile conversations about the product is fairly high A. i and ii only B. i, ii, and iii C. i and iii only D. ii only
C. i and iii only
Most executives agree that brand strategies must be engineered across the entire marketing mix throughout the life cycle of a product. Which of the following is NOT a component of that marketing mix? (i) pricing (ii) marketing research (iii) production (iv) innovation A. iii only B. i only C. ii, iii, and iv D. ii and iv
C. ii, iii, and iv
Which of the following choices is NOT one the of the reasons cost-plus pricing is so popular? A. it is easy to justify to various stakeholders B. it simplifies an otherwise complex pricing process C. it captures the full price that customers might be willing to pay for a product D. it is easy to measure or estimate
C. it captures the full price that customers might be willing to pay for a product
You have been asked to create a digital marketing plan to reach consumers using mobile devices. Which of the following steps will you NOT recommend to your mobile team? A. set up tracking programs that use location data as well as other data commonly used to study digital marketing effectiveness B. discover keyword searches that are shorter and more precise because typing on mobile devices can be problematic C. leave current web pages the same because consumers prefer to view web pages on their mobile devices that mirror those created for view web pages on their mobile devices that mirror those created for viewing on desktop or laptop computers D. Shorten long text pieces because people are less inclined to read for long periods of time on small-screen mobile devices
C. leave current web pages the same because consumers prefer to view web pages on their mobile devices that mirror those created for view web pages on their mobile devices that mirror those created for viewing on desktop or laptop computers
All of the following are price indicators of customer price sensitivity EXCEPT: A. easy comparability B. the existence of reference prices C. performance as expected D. high in a relative sense
C. performance as expected
Subaru car owners are renowned for their repeat buying and brand loyalty. What type of connection would Keller conclude that the customer has achieved with the brand? A. performance B. enlightenment C. resonance D. salience
C. resonance
Which of the following choices is NOT a consideration for the depth of a product line? A. Customer heterogeneity and requirements specification B. potential for cannibalization C. the trialability of the product line D. the effect on overall brand equity
C. the trialability of the product line
The Stage-Gate model includes all of the following steps EXCEPT: A. launch B. test C. training D. development
C. training
Nike has a variable cost of $25 for its women's running shoes and sells the shoes to the broker for $50, who sells them to the retailer for $75, who sells them to the consumer for $99.99. What is the percentage margin to the retailer? Please round to the nearest percent. A. 50% B. 33% C. 17% D. 25%
D. 25%
Assume that the variable cost of Marie's blue cheese salad dressing is $1.00 per 12 oz. bottle, that Marie's sells it to the broker for $2.00, and that the broker sells it to the retailer for $2.99. The price at retail is $3.99. What are the margins for the manufacturer, broker and retailer? Please round to the nearest percent. A. 30%, 50%, and 33% B. 100%, 40%, and 33% C. 33%, 25%, and 50% D. 50%, 33%, and 25%
D. 50%, 33%, and 25%
Harley-Davidson motorcycle owners, who pay a price premium for their motorbikes, have formed the Harley Owners Group (HOGs), whose members take motorcycle rides and road trips together. These owners also derive satisfaction by being able to express their individuality and nonconformity through the Harley bikes that they own. Based on these factors, these owners are deriving which types pf values from the Harley-Davidson brand? A. functional and social value B. functional and economic value C. Economic and experiential value D. Experiential and social value
D. Experiential and social value
Whole Foods differentiates its grocery stores from traditional stores by offering organic, natural, and locally sourced products. At the same time, its products are, on average, 25% higher in price than those of regular (nonorganic) supermarkets. What type of positioning is Whole Foods using? A. Natural positioning B. Premium or upscale positioning C. Vertical positioning D. Horizontal positioning
D. Horizontal positioning
All of the following are typical marketing research techniques utilized in the new-product development process EXCEPT: A. focus groups B. surveys C. concept testing D. awareness and usage study
D. awareness and usage study
A business-to-business (B2B) positioning strategy can sometimes be less profitable than business-to-consumer (B2C) positioning. When targeting industrial users with its power tools, for example, Black and Decker may have to offer profit-reducing volume discounts, costly product service support, replacement guarantees, and so on, when selling to businesses. Analyzing these profitability implications enables the company to choose value claims that are: A. deliverable B. feasible C. faithful D. favorable
D. favorable
Interband, BrandZ, and Brand Finance all use qualitative and quantitiave measurments to calculate brand value, but BrandZ model's greatest differentiating component is its: A. use of net present value (NPV) of the trademark and associated intellectual property B. reliance on the financial performance of the brand C. use of brand loyalty in its calculations D. incorporation of proprietary global market research data
D. incorporation of proprietary global market research data
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. A. last interaction B. linear C. first interaction D. model-based
D. model-based
Your manager has asked you to increase the effectiveness of your company's digital display advertising for wallets that your firm sells with build-in RFID (radio-frequency identification) protection. She asks you to avoid sites that already cater to men's fashion because those sites are currently your primary website choice for adveritising. She also warns you not to come up with any ideas that may irritate your customers or potential customers. What type of ads would you recommend to your boss? A. auto-play video ads B. pop-up ads C. contextual ads D. morphing ads
D. morphing ads
Marketers use copy testing to assess the potential effectiveness of their marketing communications message. Which of the following measures comprises copy testing? A. percentage of the target market exposed to the advertisement B. cost per thousand impressions C. the number of times a person in the target market is exposed to the advertisement D. pre- and post viewing purchase interest
D. pre- and post viewing purchase interest
All of the following are inputs to any value-pricing decision EXCEPT: A. perceived value B. cost of goods sold C. true economic valur D. product price
D. product price
One role of marketing communications in the problem recognition stage of the purchase decision-making process is to: A. educate consumers about features and benefits B. resolve consumer problems with customer service outreach C. alert the company about problems in conveying a message to target consumers D. remind consumers of existing needs
D. remind consumers of existing needs
Which promotional tool(s) or tactic(s) comprise a push strategy? A. advertising to draw the interest of consumers who then go to their retailers and request the advertised product B. coupons, contests, sweepstakes, and rebates C. targeting opinion leaders and end users D. retailer slotting allowances (promotion fees) for carrying a new product
D. retailer slotting allowances (promotion fees) for carrying a new product
