Marketing mid term 2 answers

2. Foot Locker has mastered online and mobile efforts that link seamlessly with store operations, offering options such as "buy online, ship from store" and "buy online, reserve in store" for pickup. This is most likely an example of ________. A. omni-channel retailing B. in-store ordering with a mobile device C. digital marketing D. mobile marketing E. social media

A

20. Which of the following best represents the demand pattern before, during, and after a sale that does NOT have consumer waiting or stockpiling; instead, the sale leads to a permanent increase in demand afterward?

A

24. Which following is the LEAST likely to be a type of reference for the price of a product? A. The price you paid last time for a higher-quality product. B. A price that ends in .99. C. Where the product is sold. D. "Compared at" prices used by off-price retailers such as TJ Maxx E. A price that you carry in your mind and refer to when looking at a product.

A

7. Which of the following is a company most likely to achieve through informative advertising? A. Correcting false impressions. B. Creating customer engagement C. Building brand community D. Reminding consumers that the product may be needed in the near future. E. Maintaining customer relationships

A

4. How can a company use mobile marketing to help consumers in the post-purchase behavior stage of the buyer decision process? List two ways (3 points for the 1st way. 2 points for the 2nd way. 5 points total)

Any two of these: easier returns, customer service, referrals, offers for future purchases, loyalty rewards, customer feedback/surveys.

11. Which of the following is INCORRECT about sample marketing? A. Sample marketing offers potential customers the opportunity to try a product or service before they make a buying decision. B. "Freeium" games are not a type of free sample. C. Test drives are considered as a form of free sample. D. Deciding how much of a product to give a way for free is one of the decisions companies need to make when using sample marketing. E. Sampling can help consumers resolve uncertainty about a product.

B

15. Which of the following is a type of online targeting method? A. Willingness to pay B. Sociodemographic C. Personality D. Psychographic E. Mood

B

19. Which of the following statement is correct about horizontal marketing systems (HMS)? A. Partners in an HMS usually pursue different target markets. B. HMS' may consist of either competing or non-competing partners. C. A main disadvantage of HMS' is horizontal conflict. D. HMS' often lead to more intense competition between partner companies. E. HMS' can benefit consumers by increasing competition between the partner companies.

B

22. Which of the following social media platforms is the most likely to allow companies to identify tastemakers and influencers, as well as create buzz? A. Twitter B. Instagram C. Pinterest D. Facebook E. YouTube

B

3. Which of the following statements about marketing channels is correct? A. Marketing channels are a set of interdependent organizations that help make a product or service available for resale. B. Marketing channels are also referred to as distribution channels. C. Indirect marketing channels do not use intermediaries. D. Direct marketing channels often have channel inefficiencies. E. Direct marketing channels have a lower number of total transactions between the producers and the consumers.

B

4. Which of the following is a type of retailer? A. Manufacturers' and retailers' branches and offices B. Specialty stores C. Brokers D. Agents E. Merchant Wholesalers

B

1. "Place" of the 4Ps includes a company's decision about which of the following? A. Production B. Marketing budget C. Distribution channels D. Online advertising E. Product placement

C

17. Which of the following is a traditional form of direct marketing? A. Websites B. Email C. Telemarketing D. Content marketing E. SEO

C

8. Which of the following is a new type of advertising media? A. TV ads B. Radio ads C. Display ads D. Print ads E. Billboards

C

12. Which of the following sales (consumer) promotion tools involves the purchase of or discount on a product that is being promoted? A. Swags B. Games C. Point-of-purchase promotions D. Samples E. Premiums

C or E

10. Which of the following statements is correct about rebates? A. Rebates enable consumers to receive a discount on the products at the time of purchase. B. Rebates are usually issued by retailers. C. Rebates lead to immediate savings for the customers. D. Rebates require efforts to redeem. E. None of the above statements is correct about rebates.

D

21. Which of the following is NOT a challenge of social media marketing? A. Hard to predict. B. Hard to measure. C. Largely user controlled. D. Costly targeting. E. A seemingly harmless social media campaign can be susceptible to abuse and backfire.

D

5. Which of the following statements about wholesalers is INCORRECT? A. Wholesalers are businesses involved in all the activities of selling goods and services to those buying for resale or B2B use. B. Wholesalers are involved in warehousing and transportation. C. Wholesalers can provide promotion services. D. Merchant wholesalers are independently owned wholesale businesses that do not take title to all merchandise handled. E. Wholesalers can provide market information and management services.

D

6. Which of the following statements is INCORRECT about channel inefficiency? A. Channel inefficiency is more likely to occur in a marketing channel with more members. B. Channel inefficiency is more likely to occur in a multichannel distribution system. C. Channel conflict is not caused by the lack of communication between channel members. D. Channel inefficiency is a main disadvantage of a direct channel. E. All of the above statements are correct.

D

13. Which of the following sales promotion tools most likely involves a temporary price reduction? A. Premiums B. Advertising specialties C. Samples D. Price-packs E. Coupons

E

14. Rank the three types of vertical marketing systems based on how likely vertical conflict is to arise. From the least to the most likely, the ranking is ________. A. Administered, corporate, contractual B. Contractual, administered, corporate C. Contractual, corporate, administered D. Administered, contractual, corporate E. Corporate, contractual, administered

E

16. Which of the following is a type of owned media in digital marketing? A. Mentions B. Paid content C. Retargeting D. Social media ads E. Social media accounts

E

18. Which of the following is most likely true about email marketing? A. It is always non-intrusive in nature due to spam filters. B. It is restricted to the use of personal computers. C. It cannot be personalized for individual consumers. D. It is a traditional form of direct marketing. E. It is used by marketers to send highly targeted messages.

E

23. Which of the following statements is INCORRECT about social media marketing? A. Marketers must enter online conversations with engaging messages that are relevant. B. Invited conversations are often initiated by the marketer. C. Marketers must earn the right to be part of the community or risk being seen as an intruder. D. Commonly used metrics for measuring the impact of social media marketing include CPP, CPM, and CPE. E. All of the above statements are correct about social media marketing.

E

25. According to the prospect theory, which of the following is FALSE? A. People consider or "account for" losses and gains separately. B. Losing $20 in one day generally makes people less sad than losing $10 today and losing another $10 tomorrow. C. Gaining $20 in one day generally makes people less happy than gaining $10 today and gaining another $10 tomorrow. D. A larger gain has less of an impact than two smaller gains of the same amount, so we should separate offers to consumers. E. A larger loss has more of an impact of two smaller losses of the same amount, so we should separate fees or payments charged to consumers.

E

9. Which of the following statements about sales promotions is correct? A. Sales promotions are long-term incentives. B. Sales promotions are used to incentivize purchase only. C. Sales promotions cannot be used to price discriminate. D. Sales promotions cannot be used to increase consumer value. E. Some sales promotions may lead to consumer waiting and stockpiling.

E

1. How many marketing intermediaries should a company use for convenience products? (3 points) How many marketing intermediaries should a company use for consumer electronics? (2 points)

For convenience products, as many as possible OR intensive distribution. For consumer electronics, more than one but fewer than all of the intermediaries who are willing to carry the company's products OR selective distribution. [Also give full credit as long as the student conveys the meaning of using many intermediaries for convenience products and few intermediaries for consumer electronics]

3. What is price discrimination? (2 points). Why do companies want to price discriminate? (3 points).

Price discrimination is charging different customers different prices for the same product. Companies price discriminate to maximize (OR increase) profit (sales) OR price discrimination ensures that even consumers with a lower WTP still purchase the product OR because different consumers have different willingness to pay OR because the company wants to sell the product to more consumers without having to lower the price for everyone OR because they want to sell their products at a lower price to the customers that have a low willingness to pay and wouldn't normally buy at a regular price.

2. What is the competitive method of setting an advertising budget? (1 point). List one pro and one con of this method (4 points).

The competitive-parity method sets the budget to match competitors. The pro is it ensures that the company does not fall behind in advertising. The con is that it may not be affordable OR the company may not know the competitor's budget OR the competitor's goal may be different than the company's.