BUS 346 Practice Quizzes 5-8

Personal Selling is more likely in which of the following contexts?

complex purchases, B2B, when demonstrations are necessary •Product situation: when a product is of a high unit value, when it is in the introductory stage of its life cycle, when it requires personal attention to match consumer needs, or when it requires product demonstration or after-sales services. •Market situation: when a firm serves a small number of large-size buyers or a small/local market; when an indirect channel of distribution is used for selling to middlemen (retailers, wholesalers). •Consumer behavior situation: when purchases are valuable but infrequent, and when consumers require persuasion and follow-up.

In the slides about the pricing of the Economist subscription options, we learned that:

designing a product line carefully can significantly impact consumer choice

Which form of social influence would rely on using compliments?

liking

In the story on Trader Joe's there are multiple mentions of tactics the brand uses, which apply to the place portion of a marketing plan? (select all that apply)

-the place products come from -the place products are sold

Which form of social influence would rely on using experts to recommend your product?

Authority People are much more likely to comply when the requester has credentials or other "symbols" of expertise and authority.

____________ refers to when advertisers pay per acquisition and _______ refers to when advertisers pay per viewer

CPA: CPM Cost-per-thousand impressions (CPM) Pricing- Pay for ad views (bidding for one thousand views); best-suited to brand awareness campaigns where you want your ad to be seen as often as possible by your target audience. Cost-per-click (CPC) Pricing- Pay only when someone clicks on your ad; best-suited to online ad campaigns where your goal is to drive traffic to your website. Cost-per-acquisition (CPA) Pricing- Set a target CPA and pay when your ad leads to a conversion; use this option if your end goal is sales or other online transactions.

What is the breadth of Tesla's distribution?

Exclusive -- Tesla only sells its cars through its own showrooms (not through traditional dealerships).

Which campaign has the best ROMI?

One that costs $25 and yields $500

What do we learn from the Tesla case study? (select all that apply)

PR can be a highly efficient form of promotion

Which of the following marketing concepts are discussed the $5 Footlong story

Place - Subway had an incredible number of locations and actually saw a reduction of locations because of market saturation Product - Branding is part of product, and jingles are part of branding. And of course the sandwich itself. Price - $5 foot long, cost based and value based pricing Promotion - Marketing campaigns built around $5 foot long offering

How can you create value through place? (select all that apply)

Places are where consumers can become aware of needs and solutions, search for information and evaluate alternatives Amazon, Best Buy, Apple Store, Sephora Offer products in a convenient location for purchase Close to home/work Where consumer will be when their need arises Offer products in a affordable location & from affordable suppliers for purchase Ikea, Costco Use place to control product quality and ensure satisfaction (-> loyalty / advocacy) Tesla, Rolex Offer products from suppliers with sustainable/fair trade practices (ethical) Offer products from unique locations (exotic)

A viral marketing campaign is most likely to be part of what form of promotion?

Public Relations Public relations Building good relations with the public and obtaining favorable publicity; building up a good corporate image; and handling or heading off unfavorable rumors, stories, and events. Includes: Publicity Creating and placing newsworthy information in the news media to attract attention to a person, product, or service. Product publicity. Publicizing specific products. Public affairs. Building and maintaining national or local community relationships. Lobbying. Building and maintaining relationships with legislators and government officials to influence legislation and regulation. Investor relations. Maintaining relationships with shareholders and others in the financial community.

What factors are used to set a price when you use value based pricing?

Value based pricing considers: competition target market product's image demand product life cycle

Why did the price of coke stay the same for so long?

a confluence of factors involving the cost of materials, consumer preferences, and distribution limitations Prices are ultimately determined by a confluence of factors.

If the price elasticity of demand is less than one, then:

a product is relatively inelastic When the PED for a product is perfectly inelastic(= 0), changes in the price do not affect the quantity demanded for the good. When the PED for a product is relatively inelastic(<1), the percentage change in quantity demanded is smaller than that in price. When the PED for a product is relatively elastic(>1), the percentage change in quantity demanded is greater than that in price.

Pull marketing is exemplified by ___________; push marketing is exemplified by ____________.

advertising focused on product benefits; providing retailers with in-store displays

During the consumer decision journey a consumer's search for Information search can be:

both internal and external

The elaboration likelihood model distinguishes which two routes of communication?

central and peripheral ELM argues that there are two "routes" through which we process persuasive information Central route—high involvement; effortful processing of information; appeals to cognitive side Peripheral route—low involvement; heuristic processing (i.e., take short-cuts and use simple rules of thumb); appeals to the affective side

true or false: Advertising costs money, but PR is free

false PR Cons •Not Free •Lack of control. •Missing the mark.

What is the formula for break-even point?

fixed costs / (price- variable costs) Firms often use break-even analysis/pricing to determine a price at which it will break even or make a target return. fixed costs / (price- variable costs)

Reach and frequency refer to ____________ and _____________, respectively.

how many people see an ad, and how often Schedule •Reach (how many?) •Frequency (how often?)

Sales promotions _____________ short terms sales and ___________ long term sales.

increase: decrease Pros Short term sales growth Attract new customers Increase satisfaction of existing customers Cons Lower profit margin Only attract price sensitive "un-loyal" customers Increase price sensitivity "Stocking up" Damage brand Promotion Clutter

Advertising includes

paid (per view) promotion

In the NPR interview on pricing, we learn that:

people are irrational in how they respond to pricing Smarter people are more susceptible to pricing tactics.

According to the Elaboration Likelihood Model what route to persuasion does Coke use in the Coke Case Study?

peripheral

Which are specific manifestations of PR?

planting articles in the media, events, sponsoring athletes, using influencers

A consumer would be most likely to spread Word of Mouth would occur at which stage of the consumer decision journey?

post-purchase

If a company maximizes profits by charging early adopters more for their product, they are engaging in _________________. If a company tries to maximize market share as quickly as possible, they are engaging in ___________________.

price skimming, penetration pricing Price skimming refers to setting a high price for a new product in order to "skim" revenues, layer-by-layer, from those willing to pay the high price. Penetration pricing refers to setting a low initial price in order to "penetrate" the market quickly.

Which of the following is not true based on price-quality inferences:

prices reflect the value and material costs of a product Price and quality are correlated, but they are not "perfectly correlated"

What is an example of push marketing?

providing retailers sales incentives Pull marketing speaks directly to consumers to make them demand your product. Push marketing focuses on retailers and creates a supply of your product to be "pushed" on to consumers

Which of the following are advertising mediums? (select all that apply)

radio, tv, internet, billboards

Product line pricing depends on which psychological principle?

reference prices A reference price is the price that people expect or deem to be reasonable for a certain type of product Factors can influence reference prices: Memory of past prices, Frame of reference, Prices of other products on the same shelf, in the same catalog, or in the same product line, Presentation/format, Order in which prices are learned Product line pricings uses the prices of other items in the product line to adjust consumers references prices and make them more likely to purchase your product.

The Blair Witch Project's success speaks to what element of vial marketing?

stories •Stories, or how we share things that are often wrapped up in stories or narratives. The marketing for the blair witch project was built around a story telling how the movie was made

Which of the following is not a reason that might make direct marketing appropriate for a brand?

the company has a really simple product Best when: •A company's primary distribution channel is also direct to •A company relies heavily on sales promotions or discounts, •An advertisement cannot sufficiently convey the benefits of a company's product or service, • A company finds that standard advertising is not reaching its target segments, and so better-targeted marketing communications are required to reach the right individuals; for example, using direct mail to reach wealthier people according to their affluent zip code •A company has a known "universe" (i.e., contact list) of potential customers and access to contact information and other data about these customers

In marketing, place refers to:

the network that helps create and deliver an offering Place is the value delivery network that delivers an offering & creates value

What is the benefit of intermediaries?

they decrease the number of relationships a firm must manage The decrease the number of relationships a firm must manage -- they take a cut of every sale though, so they do not increase costs. They are not involved in supplies or production.

How did Enterprise help create customer value?

they made the location of their services more convenient

What is one form of social influence that makes consumers desire Birkin bags?

they use scarcity