Practice Exam 3

Below

Below

_____ is the cost of reaching one member of the target market. a. Cost per contact b. GRP c. Cost per thousand d. Gross rating e. Effective reach

a. Cost per contact

Which of the following statements about the use of social media in marketing is TRUE? a. Given the relative ease and efficiency with which organizations can use social media, a positive return on investment is likely for many-if not most-organizations. b. All of the above are true. c. Fewer than 30 percent of marketers plan on increasing their investments in social media. d. All marketers understand that social media is mostly about return on investment (ROI). e. Marketers have plenty of hard evidence as to the effectiveness of the measurements and metrics that track social media.

a. Given the relative ease and efficiency with which organizations can use social media, a positive return on investment is likely for many-if not most-organizations.

_____ involves determining which sales prospects have a recognized need, buying power, and receptivity and accessibility. a. Lead qualification b. Lead reciprocity c. Prospect examination d. Customerization e. Bird-dogging

a. Lead qualification

_____ is a type of shopping available to consumers with access to the Internet. a. Online retailing b. Mobile vending c. Electronic wholesaling d. Shop-at-home networks e. Franchising

a. Online retailing

General Motors is offering the sales force at Meers Furniture Emporium a $100 reward for each Chevy Volt sold in the next 30 days. What type of trade sales promotion is the $100? a. Push money b. A trade allowance c. Premium payment d. A direct commission e. A selling deal

a. Push money

Which mobile marketing tool allows 160-character text messages to be sent to and from cell phones? a. SMS b. Web widgets c. MMS d. MOBI e. Mobile ads

a. SMS

Brands, organizations, and nonprofits that use Facebook: a. are public and are thus subject to search engine indexing. b. create profiles, as opposed to pages. c. have thus far been unsuccessful in their attempts to use the platform to create viral marketing campaigns. d. need to use all of Facebook's privacy options to ensure that only the right people have access to company information. e. must never use the Facebook Wall to communicate with consumers.

a. are public and are thus subject to search engine indexing.

The marketing campaign for Alpo dog food uses posters in veterinarians' offices, radio and television ads, and a Web site to promote benefits of the dog food. In terms of the communication process, Alpo uses several different: a. channels. b. source of feedback. c. decoders. d. noise interrupters. e. encoders.

a. channels.

When a salesperson asks for the sale, he or she is: Select one: a. closing the sale. b. creating empathy. c. creating long-term reciprocal arrangements. d. qualifying the sale. e. reducing cognitive dissonance.

a. closing the sale.

Mitch owns an accounting agency. The monthly payment on the land he purchased for his business, the mortgage on his small office building, and his business license are all examples of _____ costs. a. fixed b. promotional c. demand d. marginal e. variable

a. fixed

Prices on items sold by supermarkets change frequently, and they often offer special sales to match or beat the prices of their competitors. Therefore, _____would be a major consideration when a supermarket selects an advertising vehicle. a. flexibility b. life span c. audience duplication d. noise level e. cost per contact

a. flexibility

Sony wants to build long-lasting relationships by focusing on what satisfies and retains their customers. For example, Sony's PlayStation Web site is designed to create a community of users who can join PlayStation Underground where they will "feel like they belong to a subculture of intense gamers." Sony evidently: a. has a customer-centric focus. b. is ethnocentric. c. has a standardization focus. d. is sales oriented. e. is product oriented.

a. has a customer-centric focus.

When price decreases and total revenue falls, demand is: a. inelastic. b. stable. c. unitary. d. absolute. e. elastic.

a. inelastic.

Zappos is an online shoe and apparel retailer that promotes the highest quality of customer service by maintaining the importance of each _____, the point at which customer and store personnel exchange information and develop learning relationships. a. interaction b. data capture c. response situation d. moment of truth e. intervention

a. interaction

David likes New Balance running shoes. However, when he stopped by the Foot Locker to buy a new pair of running shoes, he noticed that Nike had a new pair of running shoes that cost $350. To David, the higher price of the Nike shoe indicated that it would be a better pair of running shoes. This is an example of: a. prestige pricing. b. price lining. c. exclusive pricing. d. selective pricing. e. premium pricing.

a. prestige pricing.

A Web site that allows individuals to connect with friends, peers, and business associates is called a: a. social networking site. b. media sharing site. c. social news site. d. virtual world. e. microblog.

a. social networking site.

From a marketing standpoint, the most useful Facebook feature is probably _____, which allows a brand to communicate directly with fans via status updates. a. the Wall b. the Profile page c. the search engine d. the Fans list e. the Real or Fake application

a. the Wall

Many advertisements use celebrities who are liked by many people in hopes that consumers will buy the product that the celebrity endorses. Using celebrities to influence consumers to buy the product is an example of which advertising appeal? a. Consciousness b. Admiration c. Love or romance d. Fun and pleasure e. Resonance

b. Admiration

Which of the following is what consumers will receive or achieve by using a product? a. Attribute b. Benefit c. Compensation d. Functionality e. Market share

b. Benefit

Hasbro, Inc. hired actress Jamie Lee Curtis as its spokesperson to promote the company's board games. As part of the campaign, Curtis appeared in television spots dressed as characters from various Hasbro games such as Battleship, Monopoly, and Clue to promote the games as great Christmas gifts to parents who played the games as children. This promotion was intended to: a. act as a persuasive device for the product category. b. act as a reminder advertisement. c. persuade nonplayers of games to try them. d. influence consumers to switch to Hasbro games. e. amuse consumers.

b. act as a reminder advertisement.

Campbell's soup has been promoted with television commercials, radio spots, newspaper coupons, and magazine advertisements. In the communication process, these media served as _____ for transmitting the message. a. decoders b. channels c. receivers d. encoders e. senders

b. channels

According to the CEO of Allied Office Products, "We're a head-count business: I know that if you have a 60-person office, you should buy $300 worth of basic office supplies-paper, pens, staples-from us with each order, but if that's all we get, we stagnate. For us to grow, we have to convince the customer, who already likes our products and service, to buy more than just basic supplies; we have to increase the order by 10, 20, or 30 times." Allied's salespeople are trained to push the company's less traditional, higher-margin lines such as coffee and refreshments, printing and forms management, and office furniture. Allied's salespeople are engaging in: a. bundling. b. cross-selling. c. trading up. d. alliance building. e. buyer empowerment.

b. cross-selling.

The party in a franchise relationship that is an individual or business granted the right to sell another party's product is called the: a. receiver b. franchisee c. owner/operator d. franchisor e. renter

b. franchisee

Outdoor advertising is: a. not an actual medium. b. inflexible and low-cost. c. flexible and low-cost. d. inflexible and high-cost. e. flexible and high-cost.

b. inflexible and low-cost. WRONG

Content that a company purchases to be placed online is called: a. owned media. b. paid media. c. controlled media. d. earned media. e. broadcast media.

b. paid media.

A(n) _____ media schedule combines continuous scheduling throughout the year with a flighted schedule during the best sales periods. a. unremitting b. pulsing c. vibrating d. rhythmic e. bursting

b. pulsing

For its new Jeep Compass, DaimlerChrysler came out with a new campaign targeting young, hip consumers. To reach its target, DaimlerChrysler used music, talking bobbleheads, and other nontraditional marketing tactics to capture consumers' interest. These communications were directed at the _____, the persons who would decode the message. a. communicators b. receivers c. channels d. encoders e. senders

b. receivers

When the local Shell station raises or lowers its prices on its gasoline, the Marathon station across the street makes the same changes in its pricing. This is an example of _____ pricing. a. predatory b. status quo c. market share d. target return e. cost-plus

b. status quo

A retail operation that has a 90,000-square-foot facility and houses a florist, baker, bank, craft shop, photo finisher, dry cleaner, and pharmacy under the same roof as grocery and household items would be called a: a. wholesale outlet. b. supercenter. c. factory outlet. d. mass merchandiser. e. membership warehouse club.

b. supercenter.

Protons are new, poppable snacks made with super-crunchy tofu. They are bite-sized nuggets that come in both sweet and savory flavors: Original Crunchy, Backyard Bar-B-Q, Tomato Herb Garden, Cinnamon Toast, and Lemon Meringue Pie. Which elements of the promotional mix would be most useful in attracting attention to this new snack food? a. Advertising and direct marketing b. Public relations and sales promotion c. Advertising and public relations d. Direct marketing and personal selling e. Public relations and direct marketing

c. Advertising and public relations

Which of the following products is most likely to use a pulsing media schedule? a. Romance novels b. Gasoline c. Band instruments d. Ceiling fans e. Baking soda

c. Band instruments

_____ means having both the authority to make the purchase decision and the funds to pay for it. a. None of the above. b. Purchase management c. Buying power d. Procurement specialization e. Right to acquire

c. Buying power

Chad has calculated the sales volume at which his lemonade stand's costs equal revenue. Over dinner, he announced to his family that he only needed to sell 50 glasses of lemonade at $5 per glass to cover all his costs (such as lumber and nails for the stand, lemons, and sugar). Which important factor has Chad excluded from his analysis? a. Break-even analysis b. Market share c. Consumer demand d. Target return pricing e. Fixed and variable cost determination

c. Consumer demand

For which of the following purchases is Gordo most likely to pass through all four stages of the AIDA process? a. A loaf of bread b. A six-pack of beer c. Gear for mountain climbing d. A two-pack of light bulbs e. A pair of white socks

c. Gear for mountain climbing

_____ refers to shopping without visiting a store and is currently growing faster than in-store shopping because of the consumer demand for convenience. a. Customerization b. Hypershopping c. Non-store retailing d. Niche marketing e. Specialty merchandising

c. Non-store retailing

_____ occurs when an increase in sales exactly offsets a decrease in price so that total revenue remains exactly the same. a. Inelastic demand b. Functional elasticity of demand c. Unitary elasticity d. Highly elastic demand e. Fixed elasticity

c. Unitary elasticity

Gucci, a very expensive brand of clothing and accessories, show beautiful women wearing its products in magazine ads. What kind of an advertising appeal is this? a. Health b. Admiration c. Vanity and egotism d. Profit e. Environmental consciousness

c. Vanity and egotism

What does "YMS" stands for? Select one: a. Year-end marketing services. b. Yes-man syndrome. c. Yield management systems. d. Yardstick measurement scale. e. Yorkshire manufacturing sector.

c. Yield management systems.

All of the following would be a target for a trade sales promotion offered by Rubbermaid, a manufacturer of storage and organization products, EXCEPT: a. a retailer called The Container Store. b. a kitchen department in a large discount store. c. a consumer who needs to organize her college dorm room. d. a Rubbermaid distributor. e. a wholesaler of plastic storage bins.

c. a consumer who needs to organize her college dorm room.

A newspaper ad for General Mills cereal highlights its BoxTop Redemption program in which General Mills donates cash to schools when the schools redeem box tops from General Mills cereal. This ad focuses on: a. a product mission. b. a product attribute. c. a product benefit. d. creating product loyalty. e. production implementation.

c. a product benefit.

The number of different varieties of fishing lures carried by the Angler's Store refers to the store's: a. volume. b. complete retail offering. c. assortment depth. d. retail mix. e. supply standard.

c. assortment depth.

One reason why negative customer comments and complaints are important to an organization is that they can: a. quickly be hidden from competitors. b. help the organization identify "problem" customers, who are then typically removed from mailing lists. c. bring to light unknown brand flaws. d. be used in future advertising campaigns. e. generate sympathy for the organization when consumers realize that "no one is perfect".

c. bring to light unknown brand flaws.

When Nesco brand food hydrators sold for $59.99, Nesco sold 90 dehydrators. When the company dropped the price of its dehydrators to $44.95, it sold 145 dehydrators. Demand for the food dehydrators appears to be: a. asymmetrical. b. symmetrical. c. elastic. d. inelastic. e. unitary.

c. elastic.

Because of the influence of social marketing, the interaction between producer and consumer has become LESS focused on: a. listening. b. influencing. c. entertaining. d. understanding. e. engaging.

c. entertaining.

Patrick goes to the movies three or four times each week. He operates a blog where he writes long, detailed reviews of the latest releases. Patrick's blog would best be described as a: a. Microblog. b. media sharing blog. c. noncorporate blog. d. corporate blog. e. collaborative blog.

c. noncorporate blog.

The American Plastics Council wants to stimulate more consumer demand for products that are packaged in plastic. The ads will explain how plastics protect families from food spoilage and contamination. The ads will also describe how tamper-evident plastic seals provide an extra measure of product safety assurance. By trying to change customers' perception of plastic packaging, the council is using _____ promotion. a. reminder b. diffusive c. persuasive d. declarative e. mass

c. persuasive

The Halloween Super Store is only open from September until November, usually in an otherwise vacant store. This is an example of a: a. temp store. b. convenience retailing. c. pop-up shop. d. flash store. e. m-commerce.

c. pop-up shop.

When Insight Research Associates quotes a marketing research project, management will first estimate the cost to conduct the research and produce and deliver the final client report. The next step in determining the price is to add 30 percent to that cost estimate. This becomes the price estimate given to the potential research client. This suggests that Insight Research Associates uses a(n) _____ pricing objective. a. status quo b. sales maximization c. profit-oriented d. market share maximization e. supply-demand equalization

c. profit-oriented

Shannon Murphey wanted to increase sales at his Tyler, Texas, jewelry store, Murphey the Jeweler. After analyzing his sales figures, he decided to give away $50 gift certificates for local businesses to give to their employees. "Many people used the gift certificates as credit toward more expensive items," explains Murphey. Murphey used a(n) _____ strategy. a. inertia b. cash-flow c. pull d. kinetic e. push

c. pull

What is needed for sales management to be effective? a. Relaxed sales objectives. b. Answers B and D. c. Extensive advertising campaigns. d. A success-oriented sales force. e. Impersonal relationships with customers.

d. A success-oriented sales force.

Which of the following statements about the AIDA model is true? a. Sales promotion is not helpful during the attention stage of the AIDA model. b. The promotional mix should not be influenced by the AIDA model. c. Advertising is most effective at the purchase stage of the AIDA model. d. Certain promotional tools are more effective at certain stages of the AIDA model. e. The AIDA model explains why public relations is the most important element in the promotional mix.

d. Certain promotional tools are more effective at certain stages of the AIDA model.

Marla is a 55-year-old woman who wants to use a social network site to stay in touch with her son, who is away at college. She also hopes to make contact with some old high school friends. Which of the following is Marla most likely to use for this purpose? a. Bebo b. Flickr c. YouTube d. Facebook e. Last.fm

d. Facebook

By far, the largest social network for gaming is: a. LinkedIn. b. YouTube. c. MySpace. d. Facebook. e. Twitter.

d. Facebook.

_____ is the element in the promotional mix that evaluates public attitudes, identifies issues that may elicit public concern, and executes programs to gain public understanding and acceptance. a. Personal selling b. Advertising c. Mass communications d. Public relations e. Sales promotion

d. Public relations

Which of the following statements about advertising is true? a. The total costs of advertising are typically low. b. Advertising is any form of communication in which the sponsor is identified. c. The signs on the outsides of buses and taxis are not a form of advertising. d. The cost per contact in advertising is low. e. Innovative media are not used in advertising.

d. The cost per contact in advertising is low.

Which of the following statements about a retailer's promotion strategy is true? a. Most advertising for retailers is carried out at the national level. b. Retail promotion strategy does not include public relations activities. c. The design of the promotion strategy would be done separately from the creation of the retailing mix. d. The goal of a retail store's promotion mix is to position the store in consumers' minds. e. Retailers find direct mail marketing inefficient.

d. The goal of a retail store's promotion mix is to position the store in consumers' minds.

Ernest has three engineering degrees. He has hired an interior decorator to update his home. He is tremendously frustrated when he asks what he thinks are simple questions about weight-bearing walls and insulation requirements that the designer is unable to understand. Yet Ernest has the same problems when the designer starts talking about mauve, cerise, and magenta. Why is the communication process not working in this instance? a. The designer is not intelligent enough to understand engineering. b. Personal selling should not be used to market this type of product. c. The wrong medium has been used. d. The sender and receiver do not share overlapping frames of reference. e. Noise is interfering with both encoding and decoding.

d. The sender and receiver do not share overlapping frames of reference.

Exxon Mobil has launched a series of ads promoting its commitment to alternative energy sources during a time when the company is recording record profits while consumers struggle with high gas prices and environmentalists are concerned that burning fossil fuels is contributing to the acceleration of global warming. This is an example of _____ advertising. a. global b. pioneering c. image d. advocacy e. homogeneous

d. advocacy

When goods and services are exchanged, the trade is called: a. exchange. b. substitution. c. bargaining. d. barter. e. swap.

d. barter.

Using technology provided by Smart Button software, the WNBA's Los Angeles Sparks have implemented a new system that gathers information about its best customers, season ticket holders, and rewards those customers in many ways, including free tickets to Sparks home games and cash prizes. This is an example of a(n) _____ system. a. call response marketing (CRM) b. total quality management (TQM) c. organizational optimization d. corporate relationship marketing (CRM) e. customer relationship management (CRM)

d. corporate relationship marketing (CRM)

The quantity of a product that will be sold in the market at various prices for a specified period is called: a. supply. b. revenue. c. market share. d. demand. e. value.

d. demand.

Advertisers are often concerned with the noise level in a medium. The medium that is assumed to have the lowest noise level is: a. television. b. radio. c. newspaper. d. direct mail. e. magazines.

d. direct mail.

The newest generation of shopping centers is the: a. strip mall. b. franchised center. c. shopping business district. d. lifestyle center. e. regional mall.

d. lifestyle center.

The two major categories of communications are: a. informative and persuasive. b. long term and short term. c. direct and indirect. d. mass and interpersonal. e. verbal and nonverbal.

d. mass and interpersonal.

Jefferson Smurfit Company is a multi-billion-dollar supplier of packaging materials. One of its salespeople rearranged production schedules at three different plants to satisfy an unexpected demand for boxes from General Electric. The salesperson's action is typical of the company's sales philosophy and indicates an emphasis on: a. adaptive selling. b. transactional buying. c. transformational selling. d. relationship selling. e. consultative promotion.

d. relationship selling.

The knowledge that most businesses depend on repeat sales is the basis of: a. product-oriented selling. b. direct marketing. c. all trade promotions. d. relationship selling. e. traditional personal selling.

d. relationship selling.

Retailers such as Dillard's and Sears are responding to consumer needs by changing product mixes, hours of operation, locations, and prices. These stores are changing aspects of their: a. store positioning strategies. b. merchandising groupings. c. retail trade areas. d. retailing mixes. e. product offerings.

d. retailing mixes.

Jel Sert Company makes convenient, durable, and eye-catching packaging. Its salesperson is demonstrating to a manufacturer of sports drinks how Jel Sert's packaging would serve as a silent salesperson for its products. The salesperson is conducting a _____. a. negotiation b. follow-up c. closing d. sales presentation e. sales approach

d. sales presentation

For a nail salon, the costs associated with the purchase of nail polish and other products like nail polish remover, sterilized equipment, laundry service for the towels, and the beverages given to customers, are all examples of _____ costs. a. liquidity b. fixed c. marginal d. variable e. promotional

d. variable

James wants to open a small store that caters to the model railroad hobbyist. The store would sell model trains, scenery, accessories, and books on the subject of model railroading. Which of the following types of stores would most likely support an effective launch of his business idea? a. A full-discount store b. A warehouse club c. An off-price retailer d. A general store e. A specialty store

e. A specialty store

Which type of retail store specializes in a given type of merchandise? a. A department store b. A first-level store c. An independent store d. A discount store e. A specialty store

e. A specialty store

_____ is probably the most important factor in determining the promotional mix. a. The need for feedback b. The advertising agency c. Message flexibility d. Media availability e. Money

e. Money

Which of the following is not true of traditional personal selling methods? a. They entail making a one-time sale and then moving on to the next prospect. b. They often attempt to persuade the buyer to accept a point of view. c. They sometimes create a win-lose outcome. d. The objectives of the salesperson are frequently at the expense of the buyer. e. They have disappeared in the wake of relationship selling.

e. They have disappeared in the wake of relationship selling.

_____ sell a limited selection of brand name appliances, household items, and groceries, usually in bulk on a cash-and-carry basis to members only. a. Factory outlets b. Wholesale discounters c. Super outlets d. Off-price discount retailers e. Warehouse membership clubs

e. Warehouse membership clubs

Corina is a big fan of the British television program Doctor Who. She writes about her love of all things Whovian on her ______, called Wibbly Wobbly Ramblings, where readers can post comments about what she has written. a. toolbox b. electronic diary c. social news site d. virtual world e. blog

e. blog

A publicly accessible Web page that functions as an interactive journal is called a(n): a. status page. b. tweet. c. profile. d. electronic diary. e. blog.

e. blog.

Each department in a department store is usually treated as a different _____ center and central management sets broad policies about the types of merchandise carried and prices. a. comptroller b. human resources c. financial d. franchise e. buying

e. buying

Best Buy instituted a system in all of its stores that customizes their product offerings for the five key customer segments it has identified: affluent professional males, young entertainment enthusiasts, upscale suburban moms, families who are practical technology adopters, and small businesses with fewer than 20 employees. This focus implies that Best Buy is: a. supply based. b. demand based. c. ethnocentric. d. sales-centric. e. customer-centric.

e. customer-centric.

Retail establishments are generally classified according to all of the following EXCEPT: a. level of service b. product assortment c. price d. ownership e. level of sales

e. level of sales

When the Apple iPhone 3G was introduced, users could buy the "I Am Rich" app for a price of $1,000. The app did nothing but display a red gem on the iPhone's screen. The description of the app stated that this red icon would remind you (and others you show it to) "that you were rich enough to afford this." Six of the applications were sold before Apple, Inc. removed the app from iTunes. At the $1,000 price, the author of the app was using _____ pricing as part of his marketing approach. a. selective b. exclusive c. unique d. snob appeal e. prestige

e. prestige