MRK final exam multiple choice

The diffusion of innovation curve starts with innovators and is followed by?

Early adopters

During the __________ stage of the product life cycle, there are few but increasing number of competitors.

Growth

In the AIDA model, the do stage is the

Action stage

When it comes to measuring consumer price sensitivity, product prices are viewed as either

Elastic (price sensitive) or inelastic (not price sensitive)

The three elements of the IMC strategy are the consumer, the channels, and

Evaluation of the results

As the number of communication media has increased, the task of understanding how best to reach target customers has become easier

False

At the Break even point, profits are maximized

False

IMC represents the _______ element of the 6 p's

Promotion

Price is the only part of the marketing mix that does not generate costs.

True

The key to successful pricing is to match the product with the consumers perception of value

True

The goals of IMC need to be

explicit and measurable

By the time BMW and Mercedes-Benz entered the mini-SUV market, there were many competitors, sales had peaked, and profits were declining. These firms entered the market during the __________ stage of the product life cycle.

maturity

A ________ strategy involves accurately measuring all the factors needed to predict sales and profits at various price levels, so that the price level that produces the highest return can be chosen.

maximizing profits

In a market with _______ there are many firms providing differentiated products.

monopolistic competition

On the diffusion of innovation curve, the first people to want to buy a product are early adopters.

False

The demand curve for prestige products generally sloped downward due to higher prices

False

Consumers generally believe that ________ is one of the most important factors in their decision purchase.

Price

Each element of the IMC strategy must have been a well defined purpose and support and extend the message delivered by all other elements

True

IMC represents the promotion dimensions of the 6 p's it encompasses a variety of communication disciplines-advertising, personal selling, sales promotion, PR, direct marketing and online marketing.

True

Ilana is assessing the effect of her firm's marketing communications. She should remember that the ultimate goal is to drive the receiver to action.

True

New product development adds value to a firms products and services through innovation?

True

Pricing strategies should be aligned with a firms overall goal and objective.

True

The failure rate for new products is high.

True

The most challenging part of applying the product life cycle concept is that managers don't not know exactly what shape each products life cycle will take

True

To determine if a new product is commercially viable, a firm can conduct premarket testing.

True

When using rule of thumb method of IMC budgeting, prior sales and communication activities are used for guidance.

True

Variable costs change with

changes in the quantity being produced.

The _______ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them

early majority

___________ means converting the sender's ideas into a message, which could be verbal, visual, or both.

encoding

The ______ stage of the product life cycle is characterized by negative or low profits.

introduction