MKT 320F Final Exam Review Questions

Which of the answer choices correctly ranks, from lowest risk to highest risk, the following methods of foreign market entry?

1. Indirect export 2. Franchising 3. Product joint venture 4. Foreign direct Investment

Six Brand Building Blocks

1. Brand salience 2. Brand performance 3. Brand imagery 4. Brand judgement 5. Brand feelings 6. Brand resonance

IKEA has a breakeven volume of 100,000 units for their new AGUNNARYD lamp. The variable cost per unit is $75 and the revenue per unit is $99.99. The fixed costs are:

$2,499,000

The basketball season is about to start, and the owners of the Red Lions team want to advertise that fact in their home metropolitan area. They plan to run a full-page newspaper ad in Metro News. The readership (reach) of Metro News is 850,000 and the cost of the ad is $82,000. What is the cost per thousand (CPM) of this campaign?

$96.47

If a brand is truly global, which of the following brand variables is typically the same across geographies?

(A) Positioning (B) Product name and features (C) Promotion

Which of the following is identified as one of the factors that should influence the selection of segments for target markets?

- Company Fit - Characteristics of the Segment - Characteristics of the Competition

Which of the following are factors we analyze as part of understanding the marketing environment (the "Context" from the 5 Cs in the Situation Analysis).

- Social/Cultural factors - Technology factors - Economic factors

Saucony is considering adding a new item to its Hurricane line of running shoes to increase its product line depth. All options would be acceptable

- adding a lower-priced item that is still capable of satisfying the needs of some customers - inserting an item of a price and performance level that fills a gap between two existing items - adding a higher-priced shoe with a higher performance level

Product indicators of sensitivity to price include all of the following

- easy comparability - performance as expected - low differentiation of alternatives

All of the following are price indicators of customer price sensitivity

- easy comparability - the existence of reference prices - high in a relative sense

Owned media encompasses various types of media such as:

- employee uniforms and truck signage - product catalogs - company-owned social media channels - company-owned retail stores

All of the factors below affect why a company might customize prices

- nature of use - consumer tastes - intensity of use - competition

Google uses a quality score as one of the factors to determine the rank or position of an ad on a search page. The quality score is primarily determined by the following factors

- potential click-through-rate of an ad - its relevance to consumers - quality of the advertiser's landing page

A cruise line could control the availability of prices by offering deals to specific groups of buyers based on all of the following

- purchasing history - location - coupon usage - information gathered via e-commerce

The demand curve suggests that an auto manufacturer will sell 20,000 Mercedes-Benz M-Class vehicles when they are priced at $50,800, but when the price is reduced to $45,000, that quantity will increase to 27,000 units. What is the resulting elasticity?

-3.07

Which of the following statements is the best explanation for why B2B firms sometimes choose to retain a focus on their core product while engaging partner firms to jointly provide a total solution (i.e., a product bundled with additional services)?

Any move a B2B firm makes beyond its core capability or technology can have an adverse effect on its ability to reach the markets it is trying to serve, its skills in executing effectively, its ability to create and deliver offerings across all of its markets, its ability to work effectively with its collaborators, and/or its ability to thrive against competition.

Takes existing technologies into new markets to serve new purposes, as when Tandem applied its fault-tolerant computers to the banking market to create ATMs and when OnStar took Global Positioning Systems into the automobile market for roadside assistance.

Application Innovation

_______ product goes beyond the expected product to include unexpected value-enhancing elements.

Augmented

Which of the following accurately matches the stages of the hierarchy of effects model to the intended outcomes of marketing communications?

Awareness and Knowledge = think

_______ refers to the shared brand stories and associations that accumulate and fill the brand markers (elements) with meaning.

Brand culture

______ is a quantitative measurement of the total financial value of a brand, although a number of consulting firms have different approaches to determining the value using various quantitative and qualitative inputs.

Brand value

Marketers often use which of the following techniques to determine the impact of a price on volume required to reach profitability?

Breakeven analysis

Which of the following is an analysis that the channel steward does NOT need to perform when mapping a channel value chain?

Breakeven analysis

Reframes an established value proposition to the customer or a company's established role in the value chain or both. Examples include chestnuts like Gillette's move from razors to razor blades, IBM's shift to on-demand computing, and Apple's expansion into consumer retailing.

Business Model Innovation

During which stage of the process does the marketer lead the preliminary analysis and calculations for demand, cost, sales, and profitability?

Developing a business analysis

Which function below is the LEAST likely to be one of a channel intermediary's functions?

Developing the brand's national TV advertising campaign

Markets appear as if from nowhere, creating massive new sources of wealth. It tends to have its roots in technological discontinuities, such as the one that enabled Motorola's rise to prominence with the first generation of cell phones, or in fast-spreading fads like the collector card game Pokémon.

Disruptive Innovation

Which of the following statements is INCORRECT regarding concepts associated with the value chain?

Distribution channel concepts are relevant to B2C transactions, not B2B transactions.

According to Ansoff's Strategic Opportunity Matrix, which of the following provides the highest potential reward for the organization for creating future revenue streams?

Diversification

The "chasm" identified in the Technology Adoption Life Cycle concept exists between which two of the categories of product adopters?

Early Adopters and Early Majority

Makes surface modifications that improve customers' experience of established products or processes. These can take the form of delighters ("You've got mail!"), satisfiers (superior line management at Disneyland), or reassurers (package tracking from FedEx).

Experiential Innovation

Services tend to exhibit more search qualities than do tangible goods.

False A search quality is a characteristic that can be easily assessed before purchase, and tangible goods tend to exhibit more search qualities than do intangible goods. Services exhibit more experience and credence qualities.

A nationwide restaurant chain that varies its menu based on its location is an example of what kind of segmentation:

Geographic

Which of the following is not a channel option between a supplier (also known as the producer, assembler, or manufacturer/maker) and its customers when the supplier wants to leverage an intermediary to create an indirect channel?

Going directly to the end customer through its own sales and distribution system

In deciding between an integrated versus an arm's length approach to channel structure, trade-off considerations are important. Which trade-off below is NOT part of these considerations?

High competition versus low competition

John Deere & Co. is deciding whether to use a feature-based claim or a benefit-based claim for its new JD 750 tractor's positioning. Which of the following is a benefit-based claim?

Improved maneuverability and flexibility

________ is a form of distribution aimed at having a product available in every outlet where target customers might want to buy it.

Intensive

Which of the following choices is NOT one of the reasons cost-plus pricing is so popular?

It captures the full price that customers might be willing to pay for a product

Why is targeting a specific group of customers usually more successful than trying to appeal to everyone?

It will satisfy the segment's specific needs

Improves customer-touching processes, be they marketing communications (use of the Web and trailers for viral marketing of The Lord of the Rings movie trilogy) or consumer transactions (Amazon's e-commerce mechanisms and eBay's online auctions).

Marketing Innovation

Which of the following criteria for selecting brand elements is NOT considered to be a defensive criteria?

Meaningful

Good storytelling in advertising contains four classic elements. Which of the following elements is NOT one of them?

Media

Which of the following is not one of the stages of the product lifecycle?

New product strategy stage

A customer is planning to purchase a car after being involved in an accident in which their car was "totaled" (i.e., damaged beyond what the insurance company will agree to repair). Because this all happened so suddenly, they need to make the purchase fairly quickly. Rather than examining all of the possible features of a car and all of the possible car brand options, they are only looking for a used sport-utility vehicle that was made in the last 3 years, has under 40,000 miles, and costs less than $25,000. Marketers refer to this type of decision making as:

Noncompensatory Decision Making

In the Typology of Buyer Benefits, which of following terms represents a focus on building market reputation and brand image?

Noneconomic, tangible benefits

Marketers use copy testing to assess the potential effectiveness of their marketing communications message. Which of the following measures comprises copy testing?

Pre- and post-viewing purchase intent

Makes processes for established offers in established markets more effective or efficient. Examples include Dell's streamlining of its PC supply chain and order fulfillment systems, Charles Schwab's migration to online trading, and Wal-Mart's refinement of vendor-managed inventory processes.

Process Innovation

Takes established offers in established markets to the next level, as when Intel releases a new processor or Toyota a new car. The focus can be on performance increase (Titleist Pro V1 golf balls), cost reduction (HP inkjet printers), usability improvement (Palm handhelds), or any other product enhancement.

Product Innovation

Ride1Up is a maker of electric bikes in the U.S. If bike riding is closely associated with someone's lifestyle (do they prefer to ride a bike to work, for errands, for leisure, and/or for exercise), how do they most likely decide what kind of bike styles to build and where to promote them?

Psychographic

Mojang Studio, creator of the very successful Minecraft game, has developed many other games you may not have heard of. Computer gaming companies often develop hundreds of games before gaining one successful game. It's not always easy to spot the future success and this can result in potentially wasted funds. Mojang Studio released Minecraft Dungeons in 2020 as their latest product. Given that Minecraft Dungeons is in the high growth market of "sandbox" electronic games, but has yet to capture much relative market share, within which quadrant of the BCG matrix does their latest release lie?

Question Mark

Launched early in 2021, the Lucid luxury electric vehicle is considered by many to be the first serious challenger to Tesla (a better established luxury electric vehicle brand). In its promotional efforts thus far, it has focused on improved passenger and cargo space, compared with Tesla, and that it can travel over 500 miles on a single charge, compared with around 400 miles on a single charge for Teslas (at the time this question was written). Given the four essential components of a positioning statement, what part of the statement would articulate this competitive market category of "luxury elective vehicles" and, perhaps, Tesla, explicitly?

Relative to whom?

Why do marketers segment their markets and what are the basic criteria for doing so successfully?

Segments must be large enough to warrant developing and maintaining a special marketing mix.

______ within the marketing channel can provide efficiencies and economies of scale as channel members take on tasks that best utilize their expertise or strategic relationships.

Specialization or Division of labor

The makers of Red Bull Energy Drink want to generate earned media and create associations between the brand and popular culture. Which of the following types of media vehicle may be particularly useful in this strategy?

Sponsorship of the Cliff Diving World Series

Capitalizes on disruption to restructure industry relationships. Innovators like Fidelity and Citigroup, for example, have used the deregulation of financial services to offer broader arrays of products and services to consumers under one umbrella. Nearly overnight, those companies became sophisticated competitors to old-guard banks and insurance companies.

Structural Innovation

Which of the following services would be most likely to exhibit strong credence qualities?

Tax return preparation

Which of the following choices is NOT a consideration for the depth of a product line?

The trialability of the product line

Which term below is used to describe the time in the Market Development Life Cycle when a technology has passed the test of usefulness and is now perceived as necessary and standard for many applications. All the pragmatists who were hanging back from committing are rushing into the market to make sure they don't get left behind. Customers of many types from many fields are making their first purchases of the technology, and revenues are growing at double or even triple-digit rates. Competition is fierce, with investors bidding up the stock of every company that can participate in the category.

Tornado

Marketers cannot control the external environment in which their organizations operate.

True Although marketers can control the marketing mix and perhaps influence the external environment, they cannot control the external environment in which their organizations operate.

Marketers need a thorough understanding of the laws established by the federal government, state governments, and regulatory agencies.

True The laws established by regulatory agencies is a force that is external to the company and not under their direct control and, yet, laws can have an enormous impact on the ability of a company to produce, distribute, communicate, and price their products and services in the marketplace.

Horizontal channel conflict can arise for a variety of reasons. An example would be a toy manufacturer selling its toys through toy stores, discount stores, department stores, and even drugstores. Which factor cited below contributes to horizontal channel conflict?

Undifferentiated products and variable prices in the various channels

In determining the effectiveness of sales promotions, which of the following metrics is NOT used by marketers?

Website bounce rate

Arizona Tea, marketed by Vultaggio & Sons, took a basic drink and put it into unusual bottles with elaborate designs. The wide-mouthed, long-necked bottles are now considered to be trendsetters in the new age beverage industry, and customers often buy the tea just for the bottle. The success of Arizona Tea is based on:

a product differentiation competitive advantage.

Which of the following type of online advertising intermediaries decide the placement and pricing of online display ads by using the supply and demand of the ad landscape in a real-time auction process?

ad exchangers

A channel steward uses power to influence, motivate, and manage channel partners. An example of a channel steward's use of hard power is a:

brand's unique product design

Ben & Jerry's Ice Cream buys keywords for a search marketing campaign such as "Ben & Jerry's Chunky Monkey" and "Ben & Jerry's Cherry Garcia." What type of keywords is the firm buying?

branded keywords

When Castrol Syntec, a premium motor oil, sought a new way to reach its young, car-passionate audience, the brand found its mark with video games. In its first-ever attempt at in-game advertising, Castrol Syntec found a way to show consumers (in a virtual world) the brand's power and performance. In the communication process, the game served as a(n) _____ for transmitting the message.

channel

The intentional efforts of a company to design, manage, and evolve its channel strategy in light of changes that arise in the competitive and customer environments is referred to as:

channel stewardship

All of the following factors directly influence consumers' level of involvement in the purchase process EXCEPT:

consumer's age Age is a demographic variable that doesn't necessarily influence a consumer's level of involvement. Correct answers: - social visibility of the purchased item - previous experience with the product - financial risk associated with the product - perceived risk of negative consequences as a result of the purchase

Walmart can achieve a _____ using its relationships with suppliers to create an advantage that, ultimately, allows it to give customers low prices and good customer service.

cost competitive advantage

Robina is shopping for a new television for her living room. As she is going through the purchase process, she continues to consult with her spouse, since this is a major purchase for the family, and even her teenage daughter is providing input to ensure that the new television will have all of the apps and capabilities she likes. Since multiple people are affecting the purchase process, we would refer to the set of them (Robina, her spouse, and her daughter) as a:

decision-making unit

One configuration of a marketing channel entails producers selling to consumers without any intermediaries in the channel. This is called a(n):

direct channel

All of the following are product characteristics influencing the rate of adoption EXCEPT:

distribution

Assume Levi Strauss & Company sells its jeans in a wide variety of global markets. Physical environmental factors such as climate (e.g., heat, humidity) have influenced the types of jeans demanded and sold. For example, colder climates are well-suited for traditional length and weight jeans, while hotter climates prefer shorter and lighter weights. Likewise, differences in competitive landscapes (i.e., amount of competition, type of competition, and intensity of competition) have influenced brand positioning: Levis is positioned as relatively expensive and prestigious in Russia yet positioned as more casual and relatively inexpensive in the United States. For Levi's, which adaptation strategy is likely most appropriate across its global markets?

dual adaptation

The steps of the consumer decision-making process, in order, are:

need recognition, information search, evaluation of alternatives, purchase, postpurchase behavior

The first stage of the new-product development process is:

establishing the new-product strategy

Burger King's restaurants are independently owned, yet their managers adhere strictly to the policies laid out by the brand owner. This channel structure is called a(n):

franchised distribution network

When shopping for a smartphone, a consumer first compares prices to see which brand offers the lowest price. After also inspecting the product features of the various phones, however, she decides that the lowest-priced brand is not her choice. Instead, she selects the brand with the best features for her needs. This outcome is the result of the chosen brand's unique value claim that is known as:

functional value

What type of marketing strategy best exemplifies a straightforward mapping of a product to a customer's willingness to pay?

good-better-best vertical differentiation

New Balance offers a variety of types of shoes to its customers at various price points, typically in 3 basic tiers, based on the quality of the material and components of the shoe. This is an example of managing the product line offering and is known as:

good/better/best strategy

Soft power helps to build a constructive relationship among distribution channel members. One source of soft power is trust, which is:

having confidence in another party's integrity and reliability through their history of dealing with each other.

Which of the following correctly lists the forces analyzed within the Porter's Five Forces Framework?

industry competitors, potential entrants, availability of substitutes, buyer power, supplier power

Small firms or firms with a unique product may choose to focus on a single segment and pursue a(n) _________ targeting strategy.

niche

What are the four unique elements to services?

intangibility, inconsistency, inseparability, inventory

To achieve the realizations described in the question above, companies should turn to expert "___________" from far-flung fields with a novel perspective on users, rather than rely solely on users themselves.

interpreters

In the adopter categories, the final 16 percent to adopt are similar to innovators in that they do not rely on the norms of the group but are independent because they are bound to tradition. They tend to have the lowest socioeconomic status, are suspicious of new products, and are alienated from a rapidly advancing society. They are called:

laggards

When calculating elasticity of demand (E), a relatively inelastic demand (0 < E < 1) indicates that:

large changes in price cause small changes in quantity demanded

The two major categories of communications are:

mass and interpersonal

Procter & Gamble markets six different brands of laundry detergent, each targeting a different market segment. This is an example of a _________ targeting strategy.

multi-segment

A customer's incentive to purchase is equal to:

perceived value (PV) minus price

When competing against other energy drinks like Red Bull and Monster, 5-Hour Energy is thinking through how to get its brand to occupy a clear, distinctive, and desirable place in its target customers' minds. What problem is it trying to solve?

positioning Positioning a brand is determining what "mental real estate" the brand should occupy in target consumers' minds. This process involves segmenting the market and choosing the brand's target segment.

Which of the following is a key difference between B2B and B2C markets?

prices are more often negotiated in B2B markets than in B2C markets

There are a number of versions of liquid detergents marketed under the Tide brand, including detergents with and without fabric softener, with and without bleach, with various pleasing smells, and fragrance-free formulations. These detergents are an example of Tide's:

product line

All of the following are inputs to any value-pricing analysis EXCEPT:

product price

A customer is comparing two similar products online. One is made in the United States, one in a foreign country to her. She opts for the choice made in the United States, judging it to be better quality despite favorable online reviews for each. This instinctual bias is known as:

provenance paradox

When Bose provides free headphones to Charles Barkley and other famous members of the NBA media, this is an example of

public relations

One role of marketing communications in the problem recognition stage of the purchase decision-making process is to:

remind consumers of existing needs

The most effective type of value proposition in business markets, generally, is known as ___________, which focuses on a small number of benefits that motivate the customer and that are superior compared with the next-best alternative provided by a competitor.

resonating focus

The article, "Designing Breakthrough Products," introduces a term to describe an approach to innovation that contrasts with conventional product development. The author suggests that if companies want to create breakthrough products, "they should seek to understand how those technologies could be used to address needs that customers may not realize they have." These realizations are termed:

technology epiphanies

Coca-Cola vending machines are found all over the world. The newest machines have an interactive screen that runs advertisements and allows users to obtain free photos of themselves and ringtones after they have bought a drink. Critics of these new vending machines are concerned that entertaining technology is being used to market sugary products. In terms of a SWOT analysis, this concern from outside critics would be an example of a(n):

threat