MKT 304 Ch12 Ch14 Ch17

When McDonald's comes up with a new drink or sandwich for its restaurants, it often markets it in a dozen or so of its outlets. When the company does this, it is engaged in A. Alpha testing B. Test marketing C. Sampling D. Product release

B. Test marketing

Integrated marketing communications represents the ________ element in the four Ps of a firm's marketing mix. A. place B. partnering C. promotion D. pricing E. product

C. promotion

Earl was known for driving 30 miles just to save a dollar on the price of his favorite beverage. Earl perceived price as ________ for a good or service, while most consumers recognize price as the ________ made to acquire a good or service. A. a fixed cost; variable payment B. a variable cost; fixed cost C. the break-even amount; total cost D. the money paid; overall sacrifice E. the overall sacrifice; monetary payment

D. the money paid; overall sacrifice

T/F A demand curve is built on the assumption that everything but price and demand remains the same.

True

T/F Online ads are not considered to be sales promotions.

True

Raymond estimates that the fixed costs associated with opening a new bank branch are $500,000. He expects the branch to attract 1,000 new customer accounts in the first year, each of which will cost $50 per year to service. He also expects to generate $100,000 per year in revenue. For Raymond, the total cost of opening the new branch and remaining open for one year will be _________.

$550,000

Companies that develop customized business software often work closely with their users when installing their products. This close contact often creates new product ideas through _________. A. Customer input B. Questionnaires C. Data mining D. Manufacturer output

A. Customer Input

________ refers to the process by which the receiver interprets the sender's message. A. Decoding B. Precoding C. Feedback D. Encoding E. Tracking

A. Decoding

Computer game companies constantly monitor computer game-related blogs keeping track of the latest hot products, because they know that their customers crave the latest and greatest games. They use this information to create new products that primarily provide the benefit of A. Keeping up in a market where sales come mostly from new products B. The company staying profitable C. Satisfying the changing needs of former customers D. Satisfying the needs of future customers

A. Keeping up in a market where sales come mostly from new products

How is consumer panel data collected during the test marketing phase of a new product introduction? A. Panelists scan their receipts on a home scanning device. B. Stores provide sales data to companies. C. Panelists complete a questionnaire about the product. D. Consumers voluntarily go to a website to record their preferences. E. Focus groups are held in key markets.

A. Panelists scan their receipts on a home scanning device.

A ________ can be used to create positive word of mouth, help customers form a community, and develop long-term relationships between customers and the company. A. corporate blog B. public relations campaign C. faxed newsletter D. full-page ad in selected newspapers E. Super Bowl ad

A. corporate blog

Which of the following is the least interactive IMC strategy? A. direct marketing via catalog B. personal selling C. mobile marketing D. online marketing via social media E. direct marketing via telemarketing

A. direct marketing via catalog

All of the following are steps in the AIDA model except A. intention B. desire. C. action D. interest. E. awareness.

A. intention

During the ________ stage of the product life cycle, sales are low and profits are small or negative. A. introduction B. decline C. maturity D. growth E. leveling

A. introduction

Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from A. observability B. trialability C. relative advantage D. compatibility E. complexity

A. observability

In the IMC communication process, the ________ is the person who reads, hears, or sees and processes the message being communicated. A. receiver B. encoder C. recorder D. sender

A. receiver

One reason auto companies spend millions on racing cars is that they offer the opportunity to test new designs and technology under extreme conditions. Car racing provides an opportunity for ________ the product. A. Alpha testing B. Beta testing C. Show off D. Produce

B. Beta testing

One reason auto companies spend millions on racing cars is that they offer the opportunity to test new designs and technology under extreme conditions. Car racing provides an opportunity for ________ the product. A. Alpha testing B. Beta testing C. Showing off D. Produce

B. Beta testing

A company has a new concept for a lightweight electric scooter that can be easily folded and taken in buildings. The company is currently engaged in concept testing. The most important question during this phase of product development pertains to A. The cost to manufacture the product B. The respondent's purchase intentions if the product were made available

B. The respondent's purchase intentions if the product were made available.

In the AIDA model, the think stage is the________ stage. A. desire B. awareness C. attention D. interest E. action

B. awareness

The point at which the number of units sold generates enough revenue to equal the total costs of running an operation is known as the A. point of sales B. break-even point C. fixed cost crossover

B. break-even point

Which of the following is the correct sequence of new product adopters in the diffusion of innovation curve? A. innovators, early majority, early adopters, late majority, laggards B. innovators, early adopters, early majority, late majority, laggards C. early majority, late majority, early adopters, innovators, laggards D. early adopters, early majority, innovators, late majority, laggards E. innovators, late majority, early adopters, early majority, laggards

B. innovators, early adopters, early majority, late majority, laggards

Early personal computer users remember the cumbersome, user-unfriendly DOS system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their A. compatibility. B. relative advantage C. observability. D. trialability. E. associated services.

B. relative advantage

Naomi tells her sales representatives the goal is to generate at least a 20 percent return on investment for all of the industrial building supplies they sell. Naomi is using a ________ pricing strategy. A. target profit B. target return C. competitive parity D. status quo E. sales orientation

B. target return

If the fixed costs of manufacturing a new cell phone are $10,000, the sales price is $60, and variable cost per unit is $20, the break-even point is A. 100 units. B. 4,000 units. C. 250 units. D. 20 units. E. 1,000 units.

C. 250 units.

When Toyota introduced hybrid cars, there were waiting lists to buy them. Then Honda and a few other manufacturers entered the market, shifting the product life cycle for hybrid cars into the __________ stage of the product life cycle. A. Maturity B. Introduction C. Growth D. Decline

C. Growth

Tess is the marketing manager for a fast-food restaurant chain. She uses a target return pricing strategy because her firm's primary objective is to A. decrease competition. B. build customer satisfaction. C. increase profits. D. increase sales. E. broaden the product line.

C. increase profits.

When a product is successful in the introductory stage of the product life cycle, A. competition becomes less important. B. it is most likely to begin to launch spinoffs. C. it may start to see profits toward the end of this stage. D. marketing costs increase significantly. E. it moves directly into the maturity stage.

C. it may start to see profits toward the end of this stage.

In the United States, most consumer packaged goods found in grocery and discount stores are already in the________ stage of the product life cycle. A. decline B. introduction C. maturity D. pioneer E. growth

C. maturity

Consumers generally believe that ________ is one of the most important factors in their purchase decisions. A. promotion B. place C. price D. color

C. price

The growth phase of the product life cycle is always dynamic. All of the following occur during this phase except A. some new competitors may enter the market with similar products. B. profits increase as sales increase. C. price competition with protracted price wars erodes profits. D. profits increase as economies of scale are attained E. some competitors will exit in an "industry shakeout."

C. price competition with protracted price wars erodes profits.

In a television commercial for Chobani Greek yogurt, the manufacturer Chobani plays which role in the communication process? A. transmitter B. channel C. sender D. receiver E. encoder

C. sender

The right communication channel to use in IMC is A. the one with the best encoding capabilities. B. the one that is easiest decoded C. the one that will connect to the desired recipients.

C. the one that will connect to the desired recipients.

The __________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them. A. Early minority B. Late majority C. Innovators D. Early majority

D. Early Majority

Whenever Andrew considers upgrading his personal computer system, he consults with Jeremy, a knowledgeable friend who always has the newest technology. For Andrew, Jeremy is a(n) __________ in the diffusion of innovation curve. A. early majority B. early adopter C. late adopter D. innovator

D. Innovator

The Apple iPod changed the way people listen to music but it also created an entirely new industry devoted to accessories such as cases, ear buds, docking stations, and speakers. The Apple iPod is considered a _________. A. Developed product B. Innovative product C. Spin off product D. Pioneer product

D. Pioneer product

Which of the following is true of profits in the maturity stage of the product life cycle? A. They are low. B. They are negative. C. They are rapidly rising D. They peak or are declining. E. They are slowing rising.

D. They peak or are declining

Frank's Heating and Air Conditioning Company specializes in electric heat pumps. Frank keeps track of the price of natural gas, knowing that A. when the price of natural gas goes up, the quantity demanded also rises. B. gas heating systems and electrical heating systems are complementary goods. C. natural gas creates more environmental greenhouse effects than coal. D. an increase in the price of natural gas will increase demand for his electrical heating systems. E. the demand for natural gas is price elastic.

D. an increase in the price of natural gas will increase demand for his electrical heating systems.

When firms set prices similar to those of competitors, they are following a strategy of A. industry-standard pricing. B. copycat pricing. C. me-too pricing. D. competitive parity. E. market-broadening pricing.

D. competitive parity.

Julie is developing a budget for her firm's IMC program. First she sets objectives. Then she chooses media, and finally she determines the cost for each product to be promoted. Julie is using the ________ method of establishing an IMC budget. A. reach and frequency B. sender-receiver C. track and decode D. objective-and-task E. rule-of-thumb

D. objective-and-task

Integrated marketing communications represents the ________ element in the four Ps of a firm's marketing mix. A. place B. product C. people D. promotion

D. promotion

Julia wants her firm's gourmet snacks to be the leading brand in the U.S. market. When adopting a pricing strategy designed to gain market share, she should remember that A. companies can gain market share by offering low-quality products at a high price. B. price wars are the way to become the dominant brand. C. prestige products need to be competitively priced. D. rarely is the lowest-price offering the dominant brand in a market. E. total value equals total cost minus variable costs leading to price escalation.

D. rarely is the lowest-price offering the dominant brand in a market.

Julia's is an upscale women's clothing store. Prices are based on customers' beliefs about the value of the clothing. The store focuses on a limited target market and provides excellent customer service. Julia's is using a ________ pricing strategy. A. target return B. maximizing profits C. target profit D. status quo E. customer-oriented

D. status quo

Several years ago, changes in advertising restrictions allowed pharmaceutical companies to begin promoting their products through traditional media. Today, it is common to see ads on television ending with, "Ask your doctor about [our medicine]." In addition to creating awareness about their drugs, the companies are most likely hoping to A. promote public interest social responsibility communications. B. reduce deceptive advertising. C. offer objective-and-task marketing communications. D. stimulate interest, persuading consumers to investigate further. E. signal encoding symbols to simplify the feedback loop.

D. stimulate interest, persuading consumers to investigate further.

Diane owns a bakery where she sells cupcakes. Two blocks down there is another bakery, CC's Bakery, that sells cupcakes for $1 less than Diane. Diane decides to lower her price and match CC's Bakery prices. What type of pricing strategy is Diane implementing? A. profit-oriented pricing B. customer-oriented pricing C. internal pricing D. sales-oriented pricing E. competitor-oriented pricing

E. competitor-oriented pricing

All of the following are stages in the product life cycle except A. growth. B. maturity. C. decline. D. introduction. E. evaluation.

E. evaluation.

As firms become more sophisticated in their communication efforts, the trend is toward company blogs becoming more A. company-controlled B. expensive. C. consumer-controlled. D. entertainment-oriented. E. interactive.

E. interactive.

T/F Variable costs remains constant with changes in the quantity being produced

False