MKG 300 Final Exam

QT Corp., a reputed courier service firm, publishes a success story how it helped a needy customer in a flood affected area by delivering his medicines parcel on time. The customer expressed his satisfaction for the timely service. Pick the type of owned media adopted by QT Corp. in this scenarion.

Blogs (3) Case Study (2) Brand Communities (1)

The major weakness of "average-cost pricing" is that"

Both A and C (3) Ignoring demand (2)

Which of the following statements is true about break-even analysis?

Break-even analysis is a quantitative technique for determining the level of sales at which total revenues equal total costs Can Evaluate Possible Prices

Which of the following is NOT trend affecting marketing strategy planning in the area of Mass Selling?

Decrease use of publicity (1) Less direct-response promotion (1)

Which of the following is NOT . trend affecting marketing strategy planning in the area of International Marketing?

Decreasing income and population in emerging markets

Which of the following is NOT trend affecting marketing strategy planning in the area of International marketing?

Decreasing role of airfreight

Which of the following is NOT trend affecting marketing strategy planning in the Pricing area?

Decreasing use of value pricing

Consumer satisfaction:

Depends on customers' level of expectation Is a highly personal concept

Which of the following is NOT trend affecting marketing strategy planning in the area of Sales Promotion?

Fewer customer loyalty programs

Which of the following statements is true about average cost-pricing?

It consists of adding a "reasonable" markup to the average cost of a product (4) Reasonable mark-up to make average costs of a product, based on past records May lead to losses because there are a variety of cost and each changes in a different way as output changes

Identify a weakness of the average-cost approach.

It ignores competitors' costs and prices

The big problem with average-cost pricing is that:

It ignores the firm's demand curve (4) Simple in theory but often fails in practice

Select the correct statement about the use of Twitter

It is social networking microblogging service that allows registered used to sent out short messages called "tweets" (5) Allows registered users to send out short messages called tweets

Satisfaction with a firm's marketing efforts ca be roughly measured by

Its profit (most) American Customer Satisfaction Index

The owned media that focuses on moving a customer along in the purchase process by addressing the customer's needs and minimizing click-away is _____.

Landing Pages

Which of the following is NOT a trend affecting marketing strategy planning in the Channels and Logistics area?

Less attention to distribution service

Which of the following is NOT trend affecting marketing planning strategy in the area of Business and Organizational Customers?

Less of e-commerce and supply chain management These are trends: -closer relationships and single sources -just in time inventory systems -web portals and internet sourcing interactive bidding and proposal requests internet as source of information -ISO 9000 -E-commerce and supply chain management

When a buyer receives an invoices for $100 with terms of "2/15 net 30 he can expect to pay ________.

Less than 100 if he pays during the first 15 days (98)

Regarding geographic pricing policies

List price may depend (3) Freight absorption pricing tends to increase the size of a firm's market (2)

Which of the following does NOT support the idea that "micro-marketing often does cost too much"?

Many firms try to maximize profits

A large producer who offers no discounts and the same prices to all customers in the U.S.:

May be "playing it safe" because of concern about the Robinson-Patman Act (4) Is probably violating the antidumping laws One-price policy

As macro-marketing system improve worldwide:

More consumers will have income to buy products - from wherever in the world those products come from

Mercedes, the European luxury car-maker, does not mention price in its magazine advertising. Instead, the ad copy focuses on the quality and performance of the Mercedes product line. What pricing objective is Merced pursuing?

Non-Price Competition

Which of the following pricing approaches specifically considers the concept of elasticity of demand?

None of the Above

Advertising can:

None of the above is true

When setting a price level policy, a good marketing manager know that

None of the above is true Set introductory prices may have long-run effects, must consider where the product life cycle is and how fast it's moving, must decide if their prices should be above, below, or somewhere in between relative to the market

When a firm depends on paid media for its mass selling, what would be one likely disadvantage?

Not trusted, customers easily avoid, and most costly/declining effectiveness

A customer who shares his or her views of a firm's products and gets attention from other customers who respect the views is referred to as a(n) _______.

Opinion Leader

Brandon, after using a newly-introduced shaving lotion, expresses his dissatisfaction about the product on his Facebook page. This gets more attention from his friends who do not want to try the product now. Identify the role of Brandon in this scenario.

Opinion Leader

A brand's product website, blog, and social media pages like Facebook or Instagram are examples of ________ media.

Owned (5) Earned (1)

When an Apple customer tells a friend how much she likes her new iPhone, what type of consumer communication is this?

Pass-Along (occurs when one customers makes a recommendation for (or against) specific brand to another customer

A marketing plan that include sections on transportation requirements, inventory product-handling requirements, and facility requirements would include those sections under the area of _____.

Place

In the development of a marketing plan, blending the marketing mix would not general involve

Predicting future behavior

When a brand introduces a product with exciting and new features in a market and draws huge attention among customers, which of the characteristics of STEPPS of Jonah Berger is represented?

Public (3) Triggers (3) Paste (1)

Recently, some executives for highway construction companies agreed to stop competing with each other in price and to meet every three months to decide their price for the next quarter. in this situation,

The Sherman Act has been violated (3) Price fixing (1) It is price fixing and illegal (1) Price fixing is illegal (1)

Wendy's was one of the first fast-food restaurants to offer a "dollar menu" on some of its food items. What pricing policy was Wendy's pursuing?

Value Pricing

Which of the following statements concerning "value pricing" is FALSE?

Value Pricing means using "budget" or "cheap" prices

Identify the scenario that best represents the use of earned media for promotion activities.

When a customer clicks "like" on a brand page or writes something on that brand's wall, the customer's friends sees it (3) Hard to control (2)

Through this type of owned media, 1) customers can search for solutions to problems, and 2) advertising can drive traffic to relevant content.

White Papers and Case Studies (6) Search engine optimization (1)

To get the sale price, customers

give up the convenience of buying, when they want to buy and instead buy when the seller wants to sell

You are considering opening a fast-food store. Your fixed costs for the required land, building, parking lot paving, kitchen equipment, and neon sign will be $1,000,000. The variable cost will be $1.89 for servings which will sell for $2.89. How many servings must you sell to break even?

$1,000,000

The following terms appeared on an invoice dated May 20 which was sent by a manufacturer to a retail store: 2/10, net 30. The amount of the invoice was $2,000. Assuming the retailer paid the invoice on May 30 (10 days after the products were delivered), how much should he have paid?

$1960

200 units of a good were produced at a total cost of $4,000. Given that total fixed cost was equal to $1,800, the average total cost per unit will be equal to _____.

$20

An item costs a retailer $140. If a 30 percent markup is desired, what should the retail selling price be?

$200.00

Given the following data, determine the break-even point in units: Total fixed cost = $120,000 Variable cost per unit = $0.60 Selling price per unit = $1.10

$240,000

A firm with a stockturn rate of 5 that sells products that cost it $150,000 per year is keeping an average of _____ worth of inventory.

$30,000

Which of the following is a characteristics of owned media?

-high message control -relatively low cost -niche audiences -versatile in message content and format (2) It is typically characterized by *high message control* (1) - Relatively low cost, high message control, and niche audiences (1) - not trust, customers easily avoid and it is high in cost and low in effectiveness (1)

A marketing plan will

...

The Horizons Cycle Shop bought 3 motorcycles for $2,100, and sold each one for $1,000. The markup percent was:

30%

White Sands Heavy Equipment Co. produces industrial equipment that it sells through its national sales force. Its sales reps often must negotiate with customers to match the low prices of foreign competitors. Apparently, the firm has

A Flexible Price Policy

Freight absorption pricing

Absorbing freight cost so that a firm's deliver price meets that of the nearest competitor (4) Amounts to cutting list price to appeal to new geographic markets (2) the firms delivered price meets that of the nearest competitor. Cutting the price to appeal to new market segments

Regarding our macro-marketing system:

Advertising can actually lower consumer prices, if it helps achieve economies of scale Some changes may be necessary but consumer-citizens should vote on these changes

Pick the correct statement that accurately brings out the difference between advertising ad publicity

Advertising utilizes paid media, whereas publicity relies on unpaid media (4) Advertising utilizes paid media such as advertisers who pay for placement on television, radio and online. (2) Publicity is unpaid. (1)

If a manufacturer in China offers a product in the U.S. market at a lower price than in China, this may be a violation of a(n)

Anti Dumping laws

A firm is looking to construct a new office, it puts out a request for proposals from contractors inviting their price quotations given certain defined specifications. This is an example of _________.

Bid pricing

When a firm publishes the success stories about how it helped another customer in addressing an issue, the type of owned media involved is called ______.

Case Studies (4) Blogs (2)

Which of the following is true about earned editorial coverage of companies?

Companies have their goods/services featured in articles, reviews, etc. that kind of coverage doesn't happen by luck or accident (MOST) A firm's public relations people may write the basic copy of the published articles It offers a current customer an incentive for recommending a new customer to a business can be positive or negative

Pricing objectives should flow from, and fit in with,

Company-level and marketing objectives

When Nintendo sets a relatively low price on its game unites to stimulate more demand for its game cartridges, it is using ______.

Complementary Product Pricing

Which of the following would NOT be included in a producer's total fixed cost?

Component parts

"Push money" is most likely to be offered to

Cosmetic Sales People at a department store (4) Given to retailers by manufacturers or wholesalers Retailers by manufacturers or wholesalers to pass on the retailers' salesclerk for aggressively selling certain items

Which of the following statements is true about Hootsuites?

Dashboard that offers marketing managers the ability to submit messages to Facebook, Twitter, LinkedIn and other social media on *scheduled basis* (3) - It can also collect and analyze data from various social media, also can be used to manage and monitor the process of media

When a pizza store announces a huge reduction in the prize of pizza based on how many people tweeted in time for lunch, the type of social media content involved is _______.

Deals and Discounts

When an independent journalize writes a movie review on a magazine, it represents ________ media.

Earned

When a reputed marketing firm posts articles and white appears on Facebook and allows people to download and use them for free, what type of content does the social media deliver in this scenario?

Educational (3) Insider Knowledge (1) Useful ideas, information, and practices (1)

Offering a NONCUMULATIVE quantity seeks to

Encourage larger orders but not tie a buyer to the seller after that one purchase (3) All of the Above Seeks to encourage repeat buying by reducing the customers cost for additional purchases

Break-even analysis can be useful for ______.

Evaluating whether the firm will be able to break even - that is, cover all its costs - with a regular price (3) Which prices will not be profitable Evaluating alternatives

Identify the true statement regarding the role of white papers in business solutions.

Generate awareness, educate and inform customers, build reputation as thought leader, foster customer trust (3) Report/guide that addresses important issues in an industry and offers solutions Most successful when they help the customer solve it without promoting a particular company's products

SweeSpot Inc., a beverage producer, uses the promotional message generated by its internal team and communicates trough its website and Facebook page. What is an advantage SweetSpot derives by this approach?

High message control, low cost, niche audiences, versatile in message control and format (3) Owned Media

Which of the following is NOT a trend affecting marketing strategy planning in the area of Demographic Patterns?

Higher real income growth in U.S.

Identify the major social media platform that was least popular in the United States in 2014 among those older than 65 years.

Instagram (5) Twitter (2)

Which of the following statements is true about Instagram?

Instagram is a free online photo and video sharing service geared toward mobile phones (4) Fastest growing major social media platform doubling its numbers of users from 2012 (2) Can work well for many small businesses, where an owner or part time marketing manager may find it less time consuming to take pictures as compared to writing stories or posts (2)

A disadvantage of average-cost pricing is that it ________.

Is easy to lost money with average-cost pricing (3) Easy to lose money (2) Does not make allowances for cost variations as output changes (1)

Average fixed costs:

Is obtained by dividing total fixed cost by the related quantity (4) Decrease steadily as output increases

A pricing objective that seeks a specific level of profit is a ______.

Target Return Objective - often is stated as a percentage of sales or of capital investment

Which of the following laws specifically makes illegal any price discrimination which injures competition?

Robinson-Patman Act

A sales-oriented objective may seek all of the following except

Seek some level of unit sales, dollar sales, or share of market without referring to profit (2) Target Return points Reference to profit A profit

Target return pricing objectives

Sets specific level of profit as an objective (3) Is often states as a percentage of sales or of capital investment (2) - May simplify the management of large producers with many divisions or departments - Usually are very high for firms facing heavy competition - has administrative advantages in a large company

Which of the following statements is a characteristics of leader pricing?

Setting some very low prices - real bargain - to get customers into retail stores

Identify the main advantage of price lining

Simplicity

A ____ price policy tries to sell the top of the demand curve at a high price before aiming at more price-sensitive customers.

Skimming

If a producer's marketing manager doesn't know the shape of the demand curve for a new product, the initial price level policy should probably be a(n) ________ policy.

Skimming Price

Which pricing policy would probably be best for a profit-oriented producer introducing a really new product with a very inelastic demand curve?

Skimming Price (3) Introductory Price Dealing (3)

Trying to get the "cream" of a market (i.e., the top of a demand curve) at a high price before aiming at the more price-sensitive customers is consistent with a(an) _______.

Skimming Pricing Policy (4) Dynamic pricing (2)

According to Jonah Berger's STEPPS for making an idea or message contagious, when the sharer looks good by sharing, _______ occurs.

Social Currency

Which of the following is NOT true about managing and measuring online media?

Software tools allow marketing managers to track many different online marketing measures - marketing managers can also track what customers purchase, how much they spend, and discover how the biggest spenders found the site - different software packages must be used to manage each major social media platform

Faced with many "me-too" competitors, Sonic Burgers, Inc. has set its price level to "meet competition"- while emphasizing nonprice competition. Sonic Burgers' pricing objective seems to be a ________ objective.

Status Quo

In a market-direct system:

The basic objective is to satisfy consumer needs as consumers see them; political freedom and economic freedom go hand in hand and citizens in a free society have the right to live as they choose (3 or most) Consumers decide what is to be produced and by whom through their dollar vote It's up the each customer to decide how effectively individual firms satisfy his or her needs

A market-directed economic system implies that:

The individual decisions of the many producers and consumers make the macro-level decisions for the whole economy (3) Political freedom and economic freedom go hand in hand (1) Political freedom and economic freedom go hand in hand and that citizens in a free society have the right to live as they choose (1)

Given the U.S. economy's basic objective, the best measure of the effectiveness of the U.S. macro-marketing system is:

The level of customer satisfaction How well it satisfies customers

"Stockturn rate" means:

The number of times the average inventory is sold in a year

The stockturn rate is _______.

The number of times the average inventory is sold in a year (3) Reduces the inventory investment and can improve profits

Alia was satisfied with the old television that she had owned for years. But after watching a fews shows on her friend's big, flat-screen, HD television, she felt that she should buy a newer model for herself. Which of the following limitations of macro-marketing effectiveness does this illustrate?

The satisfaction depends on and is relative to one's level of aspiration or expectation. Less prosperous consumers begin to expect more when they see a higher living standards for others (most) Satisfaction depends on and is relative to your level of aspiration or expectation

A markup chain:

The sequence of markups firms use at different levels in a channel, determines the price structure in the whole channel (4) determines the price structure in a channel of distribution A mark-up chain impact is determines the price structure in the whole channel. Application: mark-up on the selling price at each level of the channel.

Which of the following observations concerning introductory price dealing is true?

They are temporary price cuts to speed new product into market (4) Should be part of a large marketing strategy (1)

Which of the following statements would be most likely to be made by a manager with a status quo pricing objective?

They want to stabilize prices or meet competition or even avoid competition (3) Non price competition (2) A price of 10 dollars will not start a price war with competitors Some firms make price changes very carefully and only if other follow their lead, which tends to prevent price wars Don't rock the boat

A penetration pricing policy

Tries to sell the whole market at one low price (5) When the whole demand curve is fairly elastic, and applied when selling larger quantities in large costs, because of economies of scale

The use of temporary price cuts to speed new products into a market and encourage trial by customers is

introductory price dealing

It is not uncommon for sales personnel at The Electronic Showroom to use aggressive sales tactics to encourage customers to buy Giant-Size brand televisions. Giant-Size has encourage this behavior by using

push money allowances"

The basic objective of the U.S. market-directed economic system is to:

satisfy consumer needs as they - the consumers- see them