MKTG 351 GRL video questions Ch 15-20
In what type of pricing are prices set with an exclusive eye on profits? a. Profit maximization b. Breakeven pricing c. Targeted return on investment d. Markup
Profit maximization
Why is the supply curve upward sloping curve? a. Higher prices induce the sellers to create additional supply b. Lower prices induce the seller to create additional supply c. The higher the prices, the more likely consumers will buy d. The higher the prices, the less likely consumers will buy
a. Higher prices induce the sellers to create additional supply
What does price elasticity of demand do? a. Indicates how sensitive or responsive customers are to changes in price b. Measures how price changes over time c. Helps bounce back after a recession d. Helps create better products
a. Indicates how sensitive or responsive customers are to changes in price
What does face-to-face communication aim for? a. Informing and influencing customers to increase sales b. Convincing customers to get a membership c. Reminding customers about the company's products d. Encouraging customers to be receptive towards higher prices
a. Informing and influencing customers to increase sales
Companies create a centralized database that can be shared by everyone. This is called: a. Knowledge management b. Customer relationship management c. Supply chain management d. Information management
a. Knowledge management
Which step helps marketers understand how social media is being used? a. Listen to customers b. Set social media objectives c. Define strategies d. Define activities
a. Listen to customers
What goods may have higher demand if they have a higher price? a. Luxury goods b. Necessary goods c. Normal goods d. Substitute goods
a. Luxury goods
How should companies solve the high turnover of salespeople? a. Make an extra effort to select the appropriate people b. Provide higher compensation c. Define sales goals that are easy to accomplish d. Have more social events
a. Make an extra effort to select the appropriate people
What is pull strategy? a. Manufacturers try to appeal to the end consumers directly b. Manufacturers try to get channel members to sell their products more aggressively c. Manufacturers try to influence the suppliers d. Retailers try to appeal to their consumers
a. Manufacturers try to appeal to the end consumers directly
How does one calculate the return on investment? a. Net profits after taxes divided by total investment b. Total investment divided by net profits after taxes c. Revenue minus costs d. Sales times units sold
a. Net profits after taxes divided by total investment
Which of the following is not the type of data companies need to capture? a. Personal data b. Online interactions c. Exposure to advertising d. Personal interactions
a. Personal data
When the companies get together to set a higher price, it is called ___________________. a. Price fixing b. Price discrimination c. Price bias d. Predatory pricing
a. Price fixing
What form of communication persuades buyers with short-term goals? a. Promotions b. Advertising c. Publicity d. Customer satisfaction surveys
a. Promotions
The aim to impact public attitudes and execute programs, which are not paid for explicitly, to gain their understanding and acceptance is: a. Public relations b.Advertising c. Retail relations d. Supplier relations
a. Public relations
If customers buy two packs of coke cans, they will get 20% off. Which promotion method is being used? a. Quantity discount b. Cash discount c. Trade allowance d. Rebate
a. Quantity discount
_______________ allow users to share their opinions on their experiences are: a. Review sites b.Virtual worlds c. Online gaming d. Social news sites
a. Review sites
How is contribution margin calculated? a. Sale price per unit minus variable cost per unit b. Sale price per unit minus fixed cost per unit c. Sale price per unit minus total cost per unit d. Total revenue minus total cost
a. Sale price per unit minus variable cost per unit
Why do salespeople have a high turnover at the beginning of their careers? a. Sales performance can be clear in a very short period b. Sales performance is not clear for a very short period c. Sales performance is not clear in the long run d. Sales performance is clear in the long run
a. Sales performance can be clear in a very short period
What tactic marketers use to make their offers an intriguing part of their buyers' lives? a. Social media b. Sales promotions c. Public relations d. Personal selling
a. Social media
Why is it essential to implement and monitor the strategies in social media? a. Social media can be very fluid in nature b. Social media is easy to monitor c. Social media is easy to evaluate d. Social media does not need to be monitored
a. Social media can be very fluid in nature
What is the cost per contact? a. The cost of reaching each person in the audience b. The cost of allocating resources c. The cost of reaching each supplier d. The ability to generate interest in the audience
a. The cost of reaching each person in the audience
Which of the following statements is true? a. Use of mobile technology has been increasing. b. Use of mobile technology has been decreasing. c. Use of mobile technology has remained unchanged. d. No definitive statement can be made about the use of mobile technology.
a. Use of mobile technology has been increasing.
Costs that vary in proportion to changes in the level of activity are: a. Variable b. Fixed c. Variance d. Margin
a. Variable
What is zapping of commercials? a. When the audience skips commercials b. When the audience watches commercials c. When the audience fast-forwards the commercials d. When the audience doesn't pay attention to the commercials
a. When the audience skips commercials
A strong commitment to repurchasing a specific brand, despite changes in the marketplace that may otherwise result in brand switching is also known as: a. brand loyalty b. brand preference c. brand recognition d. repurchase rate
a. brand loyalty
A company spends $40 acquiring each customer. Each month, the customer buys services worth $5, which cost the company $4. On an average a customer is expected to stay with the company for five years. What is the CLV in this case assuming zero percent interest rate? a. $300 b. $20 c. Negative $200 d. $260
b. $20
A grocery store sells a package of peas for $5, which it buys from a manufacturer for $4. What is the unit margin for the grocery store? a. 25% b. 20% c. 10% d. 50%
b. 20%
Every year a company has $100K expense for a manufacturing plant and a $300K expense for salaries. It manufactures erasers for which the cost of the rubber is $3/unit and packaging cost is $1/unit. It selling price is $6/unit. What is the annual breakeven volume? a. 100K units b. 200K units c. 400K units d. 50K units
b. 200K units
Which of the following is an example of an owned media? a. A retweet of a promotional message from a company b. A Facebook page created by the company c. A Facebook advertisement d. A company's brand featured in a YouTube video by its users
b. A Facebook page created by the company
On the S-shaped curve, which of the following is on the horizontal axis? a. Response b. Amount of advertising spending c. Demand d. Supply
b. Amount of advertising spending
A travel company sometimes may sell not only airline tickets, but also provide car rental and hotels booking services. This is an example of: a. Two-part pricing b. Bundling c. Loss leader pricing d. Versioning
b. Bundling
How are successful practitioners adjusting their outlook to the paradigm shift in social media? a. By continuing their focus on controlling the communication. b. By moderating the ongoing communication. c. The practitioners are not keeping up with the paradigm shift. d. By continuing their practices from traditional media.
b. By moderating the ongoing communication.
Which of the following discount method is typically used for business customers? a. Quantity discount b. Cash discount c. Trade allowance d. Rebate
b. Cash discount
Which of the following is not a benefit of selling the product at a lower price? a. Create economic of scale b. Create a shortage in the market c. Increase purchase volume d. Penetrate the market more easily
b. Create a shortage in the market
Where the supply curve and the demand curve meet, is called: a. Elasticity b. Equilibrium c. Inelasticity d. Breakeven
b. Equilibrium
Costs that remain the same in total dollar amount as the activity base changes are: a. Variable b. Fixed c. Variance d. Margin
b. Fixed
In which stage is advertising likely to emphasize building preference for the brand? a. Introduction b. Growth c. Maturity d. Decline
b. Growth
What is the goal of advertising in the long run? a. Improve goodwill b. Increase sales c. Decrease expenses d. Improve relationships with customers
b. Increase sales
_______________ sites allow users to upload and share media files like pictures and videos. a. Social networks b. Media sharing c. Social news d. Location-based social networking
b. Media sharing
A company assigns a fixed percentage of its revenue for its advertising budget in what type of method? a. Change of sales b. Percentage of sales c. Percentage improvement in sales d. Percentage of growth
b. Percentage of sales
A company is using ___________ when charging a high price when introducing the product, and then lowering the price after some time. a. Premium pricing b. Price skimming c. Value pricing d. Penetration pricing
b. Price skimming
What is revenue? a. Price times sales b. Price times units c. Sales times profits d. Profits times price
b. Price times units
SMS stands for __________________. a. Short momentary statement b. Short message service c. Short mobile statement d. Short mobile service
b. Short message service
What is ideal for personal selling? a. Large customers b. Small customers c. When demand exceeds supply d. When supply exceeds demand
b. Small customers
What tool provides easy access to company news? a. Sponsorships b. Social media c. Product placement d. Advertisement
b. Social media
Why is price fixing illegal? a. Because it will lower the entry barrier b. The product may be in high demand c. Because the companies can collaborate and create a form of monopoly d. Because it encourages competition
c. Because the companies can collaborate and create a form of monopoly
What does the DAGMAR approach stand for? a. Defining accounting goals b. Distributing accounting goals c. Defining advertising goals d. Distributing advertising goals
c. Defining advertising goals
Which of the following is likely to happen in the very early stages of the product life cycle? a. Intensive distribution b. Premium pricing c. Informative communication d. Persuasive communication
c. Informative communication
Which stage emphasizes advertising and public relations to build awareness on a product? a. Middle stage b. Maturity stage c. Introduction stage d. Decline stage
c. Introduction stage
Which of the following is true about price skimming strategy? a. It is better suited for non-durable goods. b. It starts with a low price. c. It starts with a high price. d. It is meant to help repeat purchase.
c. It starts with a high price.
In ______________, retailers sell a product at a low price, with the hopes of making up the profit from the sales of other products. a. Two-part pricing b. Price bundling c. Loss leader pricing d. Versioning
c. Loss leader pricing
For big purchases and business markets, which promotional mix element would be more effective? a. Advertising b. Social media c. Personal selling d. Sales promotions
c. Personal selling
Spotify offers streaming services for free; but with additional cost, consumers have access to Hulu. What consumer promotion is Spotify using? a. Coupons b. Loyalty programs c. Premiums d. Point-of-purchase promotion
c. Premiums
Which of the following is not a category of media? a. Owned b. Earned c. Received d. Paid media
c. Received
Which of the following is an example of social media news sites? a. YouTube b. Tumblr c. Reddit d. Foursquare
c. Reddit
A formal document that outlines how the company will deliver is called: a. Leads b. Qualifying leads c. Sales proposal d. Follow up
c. Sales proposal
If a retailer does not want to carry its leftover inventory to the next year, which discount method should be used? a. Quantity discount b. Trade discount c. Seasonal discount d. All options are correct
c. Seasonal discount
What type of brands can use comparative advertising more effectively? a. High-end brands b. Luxury brands c. Smaller brands d. Established brands
c. Smaller brands
How do marketers measure the efficacy of social media? a. Mind mapping b. Network mapping c. Social media matrixes d. Technical measurements
c. Social media matrixes
Which of the following statements is NOT true? a. Social media's purpose is to facilitate social interactions. b. Social media's purpose is to facilitate conversations. c. Social media's purpose is for marketers to reach their customers. d. Growth in social media has been facilitated by relatively new technologies.
c. Social media's purpose is for marketers to reach their customers.
Which of the following is illegal price discrimination? a. The museum ticket is cheaper for children b. Movie tickets are cheaper for premium members c. The "I love NY" products costs more for a foreigner compared to locals d. When a bar provides free drinks at "ladies night."
c. The "I love NY" products costs more for a foreigner compared to locals
What does customer lifetime value indicate? a. The total revenue that can be earned from a customer over the entire duration of the relationship b. The total contribution that can be earned from a customer over the entire duration of the relationship c. The net profits that can be earned from a customer over the entire duration of the relationship d. The return on investment for each customer
c. The net profits that can be earned from a customer over the entire duration of the relationship
What is the breakeven point? a. The level at which total revenue equals total fixed costs b. The sales target a company should have c. The point at which total revenue equals total costs d. The sales level at which all variable costs are covered
c. The point at which total revenue equals total costs
Which of the following is a primarily a form of social media? a. NBC News b. National Geographic magazine c. YouTube d. Kiss FM Radio
c. YouTube
What is an example of an important opinion or behavior a company might want to measure? a. How loyal customers are towards its brand b. How much do customers like its brand c. How close customers are to purchasing its brand d. All of the options listed
d. All of the options listed
Which of the following is not a social media matrix? a. Buzz b. Interested c. Participation d. Asana
d. Asana
Calculating CLV is most helpful for which of the following? a. Opening a new retail location b. Calculating research investment for a new product c. Estimating demand for a product d. Assessing the viability of any pricing strategy
d. Assessing the viability of any pricing strategy
How can a company impress on its consumers that they should buy its products? a. By using marketing channels b. By lowering its prices c. By selling the highest quality products d. By using marketing communication
d. By using marketing communication
Which of the following is not a type of media? a. Newspapers b. Magazines c. Television d. Content of the advertisement
d. Content of the advertisement
Which of the following is a responsibility for sales management? a. Qualifying leads b. Handling objections c. Follow up d. Defining sales goals
d. Defining sales goals
Which of the following is not a step in CRM? a. Identifying customer relationships b. Understanding interactions with current customers c. Capturing customer data d. Deleting old data every year
d. Deleting old data every year
Which step provides the opportunity for a company to impress on the buyers the value of its offerings? a. Generating leads b. Qualifying leads c. Approaching the customers d. Developing and proposing solutions
d. Developing and proposing solutions
Tesla automotive company uses a parent brand name for all of its products. What type of advertising is Tesla following? a. Pioneer b. Competitive c. Comparative d. Institutional
d. Institutional
Why is it important to measure customer sentiment? a. Marketers need this for setting their prices b. It helps marketers decide which advertising platforms to use c. Marketers need to avoid unintentionally hurting the feelings of their customers d. It can give marketers a sense of how their brand is performing
d. It can give marketers a sense of how their brand is performing
If a company is hiring new people, what social media platform should they advertise the position to be most effective? a. Facebook b. Twitter c. YouTube d. LinkedIn
d. LinkedIn
When consumers get a reward after they purchase the product multiple times, what is this type of consumer promotion called? a. Coupons b. Rebates c. Premiums d. Loyalty programs
d. Loyalty programs
Which of the following is NOT true in explaining the growth of mobile technology? a. Increased use of smart phones makes it more accessible. b. Standardized platforms have reduced barriers to entry. c. The younger audiences are more receptive to this medium d. Marketers of all kinds of products promote the use of smart phones.
d. Marketers of all kinds of products promote the use of smart phones.
A company sells 400 units for $4 per unit. When the company increases its prices to $5, it's demand drops to 200 units. What is the price elasticity of demand? a. Negative 0.5 b. Negative 5 c. Positive 2 d. Negative 2
d. Negative 2
Which of the following is not a decision to make in the context of selecting media for advertising? a. The cost of media b. The media mix c. The media schedule d. The political leaning of media
d. The political leaning of media
What happens at the beginning of the S-shaped curve when the product is advertised? a. The response is negative b. The response is relatively strong c. None of these options is correct d. There is not much impact on sales
d. There is not much impact on sales
Which of the following is a common promotion directed at channel members? a. Coupons b. Premiums c. Rebates d. Trade allowance
d. Trade allowance
How should companies respond to what is being said about them? a. By engaging in social media monitoring b. By evaluating data c. Companies should not respond to what's being said about them. d. Companies should hide the negative comments.
a. By engaging in social media monitoring
What is the benefit of sales-oriented pricing? a. Companies with the highest sales can claim leadership status in the marketplace b. Inventory is kept to a minimum c. It maximizes profits d. It ensures that no losses are made
a. Companies with the highest sales can claim leadership status in the marketplace
What is comparative advertising? a. Comparing two or more brands b. Differentiating two or more brands c. Focusing on one brand d. Promoting multiple brands
a. Comparing two or more brands
What is the main focus of a promotional strategy? a. Convince buyers that the product has a competitive advantage b. Convince buyers that the product is exclusive c. Promote the product whether or not it is appealing to the buyers d. Understand the buyers' wants and needs
a. Convince buyers that the product has a competitive advantage
What is generating leads? a. Creating a list of prospects who may have an interest in purchasing the product b. Creating a list of prospects who will like to work in the company c. Creating a list of suppliers who are willing to provide raw materials d. Creating a list of manufacturers willing to produce the product
a. Creating a list of prospects who may have an interest in purchasing the product
Those that produce and share online content are called: a. Creators b. Critics c. Collectors d. Specialists
a. Creators
What does newer thinking in personal selling emphasize? a. Developing relationships with the buyers b. Developing new products c. Developing relationships with the suppliers d. Increasing profits
a. Developing relationships with the buyers
What is the problem with following the percentage change method? a. During a downturn in sales, this method would reduce the advertising budget b. During a downturn in sales, this method would increase the advertising budget c. During an upturn in sales, this method would decrease the advertising budget d. During an upturn in sales, this method would increase the advertising budget
a. During a downturn in sales, this method would reduce the advertising budget
When the freight cost component is high, the seller may want to use ________. a. FOB pricing b. Uniformed delivered pricing. c. Zone based pricing .d All options are correct
a. FOB pricing
