MKTG 303 Final

When Yolanda asked her firm's advertising agency to estimate how often consumers saw her firm's IMC message and what percentage of the target audience was exposed to the message, she was told the reach was 40, the frequency was 4, and the competitive parity was 10. The gross rating points for her firm's campaign were 400. 1,600. 40. 160.

160. Gross rating points (GRP) are computed by multiplying reach by frequency. Thus, in this case, GRP = 40 × 4 = 160.

Assume the demand for electricity, a necessity with few substitutes, is −0.2. If the electric company raised its rates by 10 percent, we would expect a 5 percent decrease in quantity demanded. a 5 percent decrease in quantity demanded. a 10 percent increase in quantity demanded. a 2 percent increase in quantity demanded. a 2 percent decrease in quantity demanded.

a 2 percent increase in quantity demanded. Price elasticity = % change in demand ÷ % change in price. In this case, −0.2 = % change in demand ÷ 10. The answer is −2, or a 2% decrease in demand.

First Lady Michelle Obama recorded an ad encouraging parents to teach their children good nutrition habits to stem the increase in child obesity. This message is an example of a flighting campaign. product-focused advertising. reminder advertising. a public service announcement. consumer-generated advertising.

a public service announcement. a public service announcement, a message focused on public welfare.

To estimate reach in terms of electronic media, marketers can use the click-through rate (CTR). To do so, they need to know the number of clicks and a. The number of destinations b. The number of impressions c. The cost per click d. How much time consumers spend viewing the ad or page e. The total number of clicks recorded by the industry

a. the number of impressions.

Determinant

attributes are product or service features that are important to the buyer and on which competing brands or stores are perceived to differ.

Tilly runs a parasailing business on Hilton Head Island, South Carolina. Tilly closes her business in winter when the water gets too cold. She should use a _______ advertising schedule a. Continuous b. Flighting c. Pulsing d. Penetrating e. Purposeful

b. Flighting

After creating awareness of the firm's products or services, the next goal of integrated marketing communications is to a. Generate consumer action b. Increase the level of interest among consumers c. Determine the level of desire needed to sustain action d. Gain the attention of the consumer e. Create intentions to purchase the product

b. Increase the level of interest among consumers

Which element of the marketing mix is most relevant to the activity "capturing value"? a. Product b. Price c. Place d. Promotion e. Purchasing

b. Price

The IMC communication process begins with _______, who (which) must be clearly identified. a. The integrator b. The sender c. The transmitter d. The communication channel e. The receiver

b. The sender

The Wheel of Social Media Engagement includes the following five effects as drivers of social media: ________, Connected, Network, Dynamic, and Timeliness. Commerce Information Communication Experience Community

Information

Which is a wireless network and mobile device that receives demand notices and allows sales associates to pull inventory from the shelves for customers? universal product codes point-of-sale terminals advanced shipping notices quick response inventory systems mobile task management technology

mobile task management technology Mobile task management technology is a wireless network and a mobile device that receives demand notification and enables a speedy response. This solution allows the associate closest to the ordered item to physically pull it and verify its availability.

Greenwood High School has recently decided to sponsor a tennis team. It is in the process of considering where to buy the uniforms. This purchase is a ________ situation. straight new buy straight rebuy modified rebuy modified new buy new buy

new buy This is a new buy situation. In a new buy situation, a customer purchases a good or service for the first time.

An advertisement for LG kitchen appliances that airs on the cable television HGTV is an example of what type of media channel? mass product placement select niche institutional

niche Niche media channels are more focused and generally used to reach narrower segments, often with unique demographic characteristics or interests.

oligopolistic competition

only a few firms dominate. Examples of oligopolistic markets include the soft drink market and commercial airline travel.

Value-oriented marketers constantly measure a. the desire to achieve against the need for a stable source of supply. b. the goal of efficiency against the price charged by competitors. c. promotional effectiveness against ethical advertising standards. d. the problem of price maximization against cost-efficiency. e. perceived customer benefits against the costs of their offerings.

e. perceived customer benefits against the costs of their offerings.

Which of the following is a social trend listed in the text? economic concerns technological advances health and wellness environmental legislation thrift

health and wellness

Hayla 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 build customer satisfaction. increase sales. increase profits. broaden the product line. decrease competition.

increase profits. A target return pricing strategy focuses on achieving a particular return on investment, which is a way of increasing profits.

Some companies want to get their products into as many outlets as possible, understanding that the more exposure a product gets, the more it will sell. If this belief is consistent with the company's overall strategy, it will choose ________ distribution. primary selective exclusive independent intensive

intensive Intensive distribution refers to getting a product into as many outlets as possible.

The introduction stage

is characterized by initial losses to the firm due to its high start-up costs and low levels of sales revenue as the product begins to take off.

To build relationships, firms focus on the ________ of the relationship, not how much money is made during each transaction. value worth cost lifetime profitability length

lifetime profitability

Yanie is developing a marketing campaign for an organic stain-removal product. As "stain removal" is rather dull, she is trying to educate consumers about the value and uniqueness of the product, and appeal to the environmentally conscious. Which of the following is the best social media application for this task? Facebook Instagram Twitter blog LinkedI

blog

Many teenagers have clothes they purchased in the past that they "would not be caught dead in" today. When they occasionally see those clothes in the back of their closet, these teenagers probably feel a. Cognitive bias b. Psychological risk c. Postpurchase cognitive dissonance d. Need recognition e. Physiological risk

c. Postpurchase cognitive dissonance

Beats by Dr. Dre headphones decides to advertise in the "lifestyles" sections of big-city newspapers. However, this generates a limited response in sales. Which of the following represents a likely breakdown in the communication process here? a. The message was decoded incorrectly b. The message was not transmitted c. The message was not received by its intended audience d. The message was encoded incorrectly e. The sender was not clearly identified

c. The message was not received by its intended audience

The effectiveness of an advertising campaign is assessed during the campaign by a. Pull strategies b. Push strategies c. Tracking d. Flighting e. Pretesting

c. Tracking

Which marketing activity is most directly served by the promotion element of the marketing mix? producing value delivering value creating value capturing value communicating value

communicating value (The marketing mix activities are promotion (communicating value), product (creating value), price (capturing value), and place (delivering value).)

In the IMC communication process, the ________ is the medium that carries the message. transmitter feedback loop sender receiver communication channel

communication channel The communication channel is the medium—print, broadcast, the Internet, and so forth—that carries the message.

If a firm declared that it wanted to develop a strategic relationship, but was unwilling to commit funds or any effort to make it succeed, there would be an obvious lack of common goals. open communication. credible commitments. a contractual arrangement. mutual trust.

credible commitments.

Georgetown's 1789 restaurant is known as a premier restaurant in DC. With its elegant dining area, extensive wine list, top quality service standards, and gourmet chef, residents and tourists flock to the restaurant. Recently, Sharaya invited her friends to dinner at 1789 to celebrate her upcoming birthday, but the servers kept messing up the orders and even gave one gluten-free friend, pasta instead of rice. 1789 was experiencing a(n) ___________ gap in service quality. [note: this is not a real story. 1789 is a bomb restaurant.] a. Knowledge b. Communication c. Standards d. Delivery e. Empowerment

d. Delivery Gap between service standards and delivered quality

Using prior sales and communication activities to determine the present communication budget describes which method of IMC budgeting? a. Reach and frequency b. Track and decode c. Objective-and-task d. Rule-of-thumb e. Sender-receiver Chapter

d. Rule-of-thumb

Generally, which of the following media outlets relies on a mix of visual and auditory techniques and is typically very expensive? a. The internet b. Newspaper c. Radio d. Television e. Billboards

d. Television

The _____ loop allows the receiver to communicate with the sender in the IMC process and thereby informs the sender whether the message was received and decoded properly. a. Decoding b. Pretesting c. Precoding d. Encoding e. Feedback

e. Feedback

When consumers are unable to articulate their experiences, __________ becomes particularly useful in understanding consumers' preferences. a. Surveying b. In-depth interviews c. Primary data mining d. A focus group e. Observation

e. Observation

A form of sales promotion that offers prizes based on chance drawing of entrants' names, _____ do not require the entrant to complete a task other than buying a ticket or filling out a form. a. Contests b. Deals c. Premiums d. Loyalty programs e. Sweepstakes

e. Sweepstakes

The diffusion of innovation theory is useful to marketers in helping them predict how long it will take for a new product to gain market acceptance. predict which types of customers will buy their product immediately and later. determine a target market. avoid the cost of concept testing. adjust to the performance life cycle.

predict which types of customers will buy their product immediately and later. The diffusion of innovation theory sheds light on the types of customers who buy products during different stages. With this knowledge, the firm can develop effective promotion, pricing, and other marketing strategies to push acceptance among each customer group.

The ________ step in the product development process is critical, requiring tremendous resources and extensive coordination of all aspects of the marketing mix. evaluation of results posttesting product launch product development pretesting

product launch The product launch is the most critical step in the new product introduction and requires tremendous financial resources and extensive coordination of all aspects of the marketing mix. For any firm, if the new product launch is a failure, it may be difficult for the product—and perhaps the firm—to recover.

Which of the following is considered part of the augmented product? brand name design features quality product warranty

product warranty The actual product is made up of the brand name, quality level, packaging, and features and design. The product warranty is one of the associated services included in the augmented product.

When Adele decided to open up a tea shop in the center of town, she chose a group of customers who represent her customers of interest. This group is called a potential customer. focus group. sample. target market. demographic.

sample (A sample is a group of customers who represent the customers of interest in a research study.)

Whenever the president of the local public university promotes the institution, he emphasizes the university's price (much lower than neighboring private colleges) and high quality. He is positioning the institution based primarily on profitability. symbols. the value proposition. competitive comparisons. product attributes

the value proposition. Value is a popular positioning method because the relationship of price to quality is among the most important considerations for consumers when they make a purchase decision. By emphasizing the low price and high quality, the university president is focusing on value.

Cross-price elasticity is the percentage change in quantity of a product demanded divided by the percentage change in its price. percentage change in quantity demanded of Product A compared to the percentage change in price of Product B. change in quantity of a product demanded divided by the change in its elasticity. change in quantity of a product demanded divided by the change in its price. change in price of Product A divided by change in quantity demanded for Product B.

percentage change in quantity demanded of Product A compared to the percentage change in price of Product B. Cross-price elasticity looks at the impact of a change in one product's price on demand for another product. The two products might be substitutes or complementary products.

Elias was struggling selling his golf photography outside a PGA event. When he offered a T-shirt with a golf photograph on it with any framed golf photo, sales picked up. Elias discovered the value of sales promotions—specifically ________—in encouraging customers to buy. sweepstakes premiums deals rebates samples

premiums A premium offers an item for free or at a bargain price to reward behavior such as sampling, buying, or testing. In this case, Elias is rewarding the purchase of his photos with a free T-shirt.

A ________ advertising schedule uses a base level of advertising during some periods followed by periods of increased advertising. purposeful pulsing continuous flighting penetrating

pulsing Pulsing combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods.

H&M has adopted the inventory management system that delivers less merchandise on a more frequent basis than in traditional inventory systems. The firm gets the merchandise just in time for it to be used in the manufacture of another product or for sale when the customer wants it. This is an example of a ________ inventory system. quick response (QR) lead time cross-docking UPC EDI

quick response (QR) Just-in-time (JIT) and quick response (QR) both refer to inventory management systems designed to ship smaller quantities more frequently.

Darlene has identified four potential market segments for her Don't Do It Yourself handyman service. She will now evaluate whether or not each segment is attractive relative to all of the following except responsive. profitable. substantial. reachable. realistic

realistic When evaluating a segment's attractiveness, we consider whether the segment is substantial, responsive, profitable, reachable, and identifiable.

Sales promotions include print ads. mobile marketing. online ads. public relations. rebates.

rebates. Rebates are examples of sales promotion.

Dante always buys and uses Bridgestone brand golf balls. If he finds a Titleist or Callaway ball in the rough, he gives it away. Brand-loyal golfers like Dante allow Bridgestone to charge a higher price and not lose many sales. By building a strong brand, Bridgestone has effectively reduced the price elasticity of demand for its products. increased the income effect for its products. increased the cross-price elasticity for its products. shifted the golf ball market from a monopoly to pure competition. focused on the competitive parity point for its products.

reduced the price elasticity of demand for its products. Brand-loyal customers like Dante are less sensitive to price increases and are willing to pay a higher price. The more such customers exist in a market, the less price elastic demand will be.

When a global firm turns to its subsidiaries in less developed markets for new product ideas, such as when Samsung's ActivWash was initially developed for the Indian population and is now one of the most popular washing machines in South Korea, it is engaged in competitive engineering. a consortia. pioneering. beta testing. reverse innovation.

reverse innovation. reverse innovation - This is when companies turn to subsidiaries in less developed markets for new product ideas.

When Walmart promises to purchase larger quantities if a manufacturer will lower its wholesale price, it is exhibiting ________ power. referent legitimate reward coercive knowledge

reward With its reward power, Walmart offers rewards, often a monetary incentive, if the wholesalers or manufacturers do what Walmart wants them to do. For example, it might promise to purchase larger quantities if a manufacturer will lower its wholesale price.

Using prior sales and communication activities to determine the present communication budget describes which method of IMC budgeting? sender-receiver objective-and-task track and decode rule-of-thumb reach and frequency

rule-of-thumb Rule-of-thumb methods such as the ones listed use prior sales and communication activities to determine the present communication budget.

In a television commercial for Chobani Greek yogurt, the manufacturer Chobani plays which role in the communication process? transmitter sender encoder channel receiver

sender The message originates from the sender, who must be clearly identified to the intended audience.

Suppose that Hardee's wanted to evaluate social media content to find out how well its most recent advertising campaign was being received by consumers. This could be done using keyword analysis. Google Analytics. bounce rate. click path analysis. sentiment analysis.

sentiment analysis.

The level of difficulty a manufacturer experiences in getting retailers to purchase its products is determined by the degree to which the channel is exclusive. recognized. vertically integrated. known nationally. horizontally integrated

vertically integrated. vertically integrated; the degree to which the manufacturer has a strong brand or is otherwise desirable in the market; and the relative power of the manufacturer and retailer.

When managers understand what their service providers are facing on a day-to-day basis by directly observing them and talking to customers, it is called management by being responsive. marketing research. empowerment. high expectations. walking around.

walking around. Unless the managers who make the service quality decisions know what their service providers are facing on a day-to-day basis, and unless they can talk directly to the customers with whom those service providers interact, any customer service program they create will not be as good as it could be. This is known as management by walking around.

Formal performance evaluations of the vendor and the products sold generally occur in the product specification segment. B2C buying process. proposal analysis segment. B2B buying process. RFP proces

B2B buying process. Formal performance evaluations of the vendor and the products sold generally do not occur in B2C buying situations as they do in the B2B setting.

A buying center that makes its decisions by majority vote is a(n) ________ buying center. bureaucratic consensus democratic consultative autocratic

democratic A democratic buying center is one where the majority opinion is used to make the purchase decision.

Brands can be extremely valuable domestically but challenging internationally. Companies can help overcome language difficulties in using brands by

developing brand names that have no preexisting meaning in any known language. (To avoid the potential embarrassment that language confusion can cause, firms spend millions of dollars to develop brand names that have no preexisting meaning in any known language, such as Accenture (a management consulting firm) or Avaya (a subsidiary of Lucent Technologies, formerly Bell Labs).)

In integrated marketing communications, encoding involves a. Converting consumers' ideas into value propositions b. Differentiating noncommercial speech from commercial speech c. Converting the decoder into the receiver d. Interpreting click-through rates e. Converting the sender's ideas into a message

e. Converting the sender's ideas into a message

________ describes how often the audience is exposed to a specific marketing communication, such as an advertisement, within a specified period of time. a. Reach b. Gross rating c. Relevance d. Web tracking e. Frequency

e. Frequency

Generally, firms entering foreign markets begin with a. importing. b. direct investment. c. the riskiest, but most profitable endeavor. d. decentralized production. e. less risky strategies first.

e. less risky strategies first. (Many firms follow a progression in which they begin with less risky strategies to enter their first foreign markets and move to increasingly risky strategies as they gain confidence in their abilities and more control over their operations,)

A ________ advertising schedule uses heavy advertising during some periods followed by periods of no advertising. purposeful flighting continuous pulsing penetrating

flighting Flighting refers to an advertising schedule implemented in spurts, with periods of heavy advertising followed by periods of no advertising.

Many services marketers use training and standardization to reduce service knowledgeability. perishability. intangibility. inseparability. heterogeneity.

heterogeneity

What tools help marketers make sense out of the data and use it to make appropriate business decisions? observation data mining marketing analytics syndicated data churn

marketing analytics (Marketing analytics is used to make sense out of these data. In particular, marketing analytics uses advanced technologies and models to gather data, so that marketers can improve their decision making, optimize their returns, and make appropriate customer-related decisions.)

There is often only one provider of cable television services in each region of the country: Time Warner is in New York, Comcast is in most of New England, and so forth. When Comcast recently proposed a plan to buy Time Warner, the purchase ultimately could not be completed, mostly due to concerns that it would have caused Comcast to become an overly large ________ with too much power. predator icon monopolist oligopolist pure competitor

monopolist

There is often only one provider of cable television services in each region of the country: Time Warner is in New York, Comcast is in most of New England, and so forth. When Comcast recently proposed a plan to buy Time Warner, the purchase ultimately could not be completed, mostly due to concerns that it would have caused Comcast to become an overly large ________ with too much power. pure competitor predator icon monopolist oligopolist

monopolist In a monopoly, one firm provides the product or service in a particular industry, which results in less price competition.

________ is the two-way flow of communication between buyer and a seller that is designed to influence the buyer's purchase decision. Public relations Sales promotion Personal selling Advertising Direct marketing

Personal selling Personal selling is the two-way flow of communication between buyer and a seller that is designed to influence the buyer's purchase decision and can take place in various settings: face-to-face, video teleconferencing, on the telephone, or over the Internet.

. _________ is the two-way flow of communication between buyer and seller that is designed to influence the buyer's purchase decision a. Personal selling b. Sales promotion c. Advertising d. Direct marketing e. Public relations

a. Personal selling

Red Bull sends out student brand managers to distribute free samples to their peers. Which form of marketing communication is this? a. Sales promotion b. Direct marketing c. Public relations d. Mobile marketing e. Advertising

b. sales promotion Free samples are a form of sales promotion.

After observing a customer verbally abuse a server, the first thing a manager can do to ensure quality service is to review the delivery support system. make sure services delivery expectations are consistent and coherent throughout the organization. assume the server provoked the attack and respond accordingly. throw the customer out of the restaurant. provide emotional support to the server.

provide emotional support to the server. One reason service jobs can be difficult is that service employees must remain pleasant and courteous even when customers are not. Managers can help frontline employees manage angry customers with courtesy by providing emotional support and incentives.

A firm that places an emphasis on developing and maintaining positive relationships with the media is focusing on a(n) ________ strategy. public relations direct marketing mobile marketing advertising personal selling

public relations Public relations is the organizational function that manages the firm's communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media.

Medical services and assisted living care are examples of a. the ability of empowerment to create tangible service products. b. services shifted abroad because costs are lower in developing countries. c. household maintenance activities that people increasingly pay others to perform. d. the price elasticity effect on services demand. e. services an aging population will increase the demand for.

services an aging population will increase the demand for. The aging population in particular has increased the need for health care specialists, including doctors, nurses, and caregivers in assisted living facilities and nursing homes, and many of those consumers want their specialists to provide personalized, dedicated services.

________ research is a type of quantitative research that manipulates variables to help determine cause and effect. Syndicated Descriptive Manipulative Experimental Focus group

Experimental (experimental research (an experiment) is a type of quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on other variables.)

Advertising agencies often provide the IMC function of comparing their customer's target audience with the viewer, listener, or reader profile of the communication channel being considered. The agency is most likely trying to avoid noise problems associated with a poor choice of medium. a flaw in the medium. lack of clarity in the message. an extended feedback loop. competing messages.

a poor choice of medium. Interference in the IMC process is referred to as noise. It can be caused by competing messages, a lack of clarity in the message, or a flaw in the medium. In this case, the choice of the wrong channel can cause most members of the target market to fail to receive the message.

Melida could recall the brand of toothpaste she used only when a marketing researcher mentioned the brand. This is known as a. Aided recall b. Unaided recall c. Top-of-mind awareness d. Brand preference e. Brand indifference

a. Aided recall

To avoid having ethical situations become problematic for a firm, the short-term goals of each employee must

be aligned with the long-term goals of the firm.

As the number of communication media has increased, the task of understanding how best to reach target customers has focused on reducing communication noise. become easier. shifted from creating a value proposition to revising a value proposition. become more complex. increased the use of rule-of-thumb targeting.

become more complex. Advances in technology have led to a variety of new and traditional media channel options for consumers, all of which vie for consumers' attention.

Often, advertisers will employ a variety of media to deliver their message. When using different media, advertisers need to deliver a. Value-based post-testing b. Niche media emotional appeals to the mass market c. A consistent and compelling message d. Different messages for each type of media e. Mild puffery

c. A consistent and compelling message

_____ attributes are product or service features that are important to buyers that are used to differentiate among choices a. Retrieval b. Financial c. Social d. Determinant e. Safety/performance

d. Determinant

Danielle was looking for a wedding reception. She visited The Line DC in Adams Morgan, DC, and fell in love with the rooftop view, the old Neoclassical church architecture, and the luxurious and trendy design. Which of the following service quality building blocks caused Danielle to select The Line DC as her venue? a. Reliability b. Responsiveness c. Assurance d. Empathy e. Tangibles

d. Empathy