Exam 4 Questions

_____ is any form of impersonal paid communication in which the sponsor or company is identified.

Advertising

Michael, a department store owner, wants to improve profits. In order to get customer insights for making better product mix decisions, he implements a unique personalization tool on the store's website which allows customers to share their preferences. In the given scenario, which of the following does Michael make use of?

Big data analytics

_____ is defined as the reduction of sales for one brand as the result of the introduction of a new product or promotion of a current product by another brand.

Brand cannibalization

Which of the following is a difference between business products and consumer products?

Business products are often custom-tailored to the buyer's exact specifications, whereas consumer products are not.

In the context of retailing decisions for services, which of the following statements is most likely to be associated with improving service delivery?

Choosing the right distribution channel can increase the times that services are available or add to customer convenience.

Which of the following statements is true of relationship selling?

It creates a long-term relationship based on trust between the salesperson and the customer.

Which of the following is a disadvantage of the AIDA (attention, interest, desire, and action) concept?

It does not explain how all promotions influence purchase decisions.

Which of the following is true of shopper marketing?

It focuses on understanding how a brand's target consumers behave as shoppers in different channels and formats.

Which of the following is true of a freestanding location?

It has low site cost or rent and no nearby competitors.

Which of the following statements is true of earned media?

It is based on a public relations or publicity model.

Which of the following statements is true of owned media?

It is controlled by the brand but keeps customers and their needs in mind.

Which of the following is a disadvantage of having a freestanding unit?

It is difficult to attract customers to a freestanding location.

Which of the following statements is true of reminder promotion?

It prevails during the maturity stage of the product life cycle.

Which of the following is a disadvantage of sales promotion?

It provides no opportunity for direct feedback.

Which of the following statements is true of a product assortment?

Many online retailers purposely focus on single product line niches that could never attract enough foot traffic to support a traditional physical store.

In the context of the factors that determine the promotional mix, which of the following has a very low cost per contact?

National advertising

_____ is a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other.

Personal selling

Which of the following is true of complex buying decisions?

Personal selling is most effective in helping consumers make complex buying decisions.

Which of the following statements is true of the growth stage of the product life cycle?

Persuasive promotion is used to build brand loyalty.

Which of the following statements is a difference between relationship selling and traditional personal selling?

Relationship selling focuses on increasing loyalty and mutual trust, whereas traditional personal selling focuses on making a quick sale.

Which of the following is a difference between specialty stores and full-line discounters?

Specialty stores have the thinnest product assortments, while full-line discounters typically carry very wide assortments of merchandise.

Which of the following is the objective of informative promotion?

To stimulate interest in a new product

_____ focuses on the worth of a product to a consumer more than the cost of the product to a supplier.

Value-based pricing

In the context of ownership arrangement, a chain store is:

a group of retailers, of one or more brand names, owned and operated by a single organization.

Public relations' greatest impact is as a method of:

gaining attention for a company, good, or service.

Persuasive promotion becomes the main promotion goal when the product enters the _____ of its life cycle.

growth stage

In the context of the AIDA (attention, interest, desire, and action) model, a marketing message can arouse the desire of consumers by:

illustrating how the product will satisfy their needs.

Marketers are increasingly using social media for their marketing campaigns because:

marketers facilitate consumer empowerment.

Berries Inc., a cosmetics company, is trying to increase its brand value and brand loyalty among its customers through the Internet. It starts publishing content on its website and on various social media platforms. It keeps the needs of the customers in mind while creating blog posts and videos for them. In this scenario, Berries Inc. is using social media as _____.

owned media