MKTG Test 2

32) Which of the following is the most important consideration when choosing an event to sponsor? A) That the product and the event are easily associatedB) The length and location of the eventC) When the event occurs D) Whether or not the event is a national event E) The specific name of the event

A

52) Markup is measured either as a percentage of ____ or a percentage of ____. A) selling price; costB) cost; profitC) revenue; contribution margin D) resources used; cost E) demand; competition

A

Which of the following is least protectable to most protectable for brand types, as determined by a series of court decisions? A) descriptive; suggestive; arbitrary; fanciful B) descriptive; arbitrary; suggestive; fanciful C) fanciful; suggestive; arbitrary; descriptive D) arbitrary; descriptive; fanciful; suggestive E) fanciful; arbitrary; suggestive; descriptive

A

10) If a retailer orders a quantity of merchandise to be delivered to his store in Albuquerque and is quoted a price that does not include freight charges, the retailer is paying a(n) ____ price. A) F.O.B. destinationB) F.O.B. origin C) transferD) postage-stamp E) base-point

B

Lowinski Lawn Care Equipment Company manufactures lawn mowers and other lawn care products. Its latest lawn mower comes with blades that incorporate new technology that allows them to last five times longer than typical blades. The lawn mower also includes a comfort grip that is easier to hold and an updated style design available in a variety of colors. Lowinski Lawn Care is most likely differentiating itself through _____ with its blades and through _____ with its handle and styling. A) durability; styleB) quality; designC) design; attractiveness D) customer focus; design E) quality; comfort

B

59) The percentage change in quantity demanded caused by a percentage change in price is much greater for products with A) unyielding demand. B) inelastic demand.C) elastic demand.D) recreational demand. E) prestige demand.

C

Lands' End offers clothing and accessories for all members of the typical household. For many years, the products were sold only through catalogs. Later, they were available through the company on its Internet website. In the past few years, Lands' End has partnered with Sears to offer selected Lands' End products inside of Sears retail stores. This move by Lands' End has been criticized by some marketers because it was thought that the Lands' End products were superior in quality to those that are available in Sears stores. Additionally, the products available in Sears stores include Craftsman tools, lawn care equipment, and household appliances, which are not Lands' End types of product lines. This may create mixed messages about Lands' End to prospective customers. In comparison to Lands' End, Sears has a product mix that is most likely A) wider but not deeper.B) deeper but not wider.C) wider and deeper.

C

11) Tamika is a retail salesperson for Pottery Barn in Cincinnati. She is most likely classified as A) an outside salesperson.B) support personnel.C) a trade salesperson. D) an inside salesperson. E) a technical salesperson.

D

23) Suppose Liberty Mutual Insurance stated, "We want our advertising to increase our customer base for home and automobile insurance 10 percent by the end of the fiscal year." This would be considered a(n) A) target audience goal.B) advertising platform. C) percent-of-sales approach. D) advertising objective.E) media plan goal.

D

24) The fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ____ pricing. A) price-lineB) promotional C) professional D) differentialE) psychological

D

39) In order to justify direct-response marketing, a product really needs to be priced above A) $50. B) $10. C) $5. D) $20. E) $100.

D

40) When a seller's costs are usually determined when or after a product is made and then a specified percentage or dollar amount is added to the cost to establish a price, an organization is using ____ pricing. A) markupB) demand-based C) differentialD) cost-plusE) expense-based

D

41) Which of the following would be least likely to be considered a support salesperson? A) Detail rep B) Customer success manager C) Trade salespersonD) Creative sellerE) Technical salesperson

D

45) Your friend Elias comes to you for advice because of your amazing business prowess. He would like to start his own business, but he is concerned about the high failure rate. If possible, he would like to mitigate his risk somewhat. He also has limited capital and not much business experience. You recommend that Elias consider opening a _______________, but you warn him that one disadvantage to doing so is that he would have _____________. A) wholesaler; more debt B) retailer; less controlC) wholesaler; less timeD) franchise; less controlE) direct sales organization; limited promotional opportunities

D

57) The purpose of the ____ stage in personal selling is to determine customers' problems and questions about using the product. A) prospectingB) approachC) overcoming-objections D) follow-upE) closing

D

GLE specializes in planning, implementing, and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption to meet their clients' needs and wants. It also specializes in delivering transportation services for their clients. Due to GLE's efficiency in these areas, many firms outsource their core logistics activities to GLE. GLE is most likely to be a(n) A) manufacturers' agent B) industrial distributor C) megacarrierD) third-party logistics firm E) freight forwarder

D

Large retailers such as Macy's and Kohl's are most likely to participate in which of the following channels? A) Producer, industrial distributors, retailers, consumersB) Producer, consumersC) Producer, wholesalers, retailers, consumers D) Producer, retailers, consumersE) Producer, agents, wholesalers, retailers, consumers

D

Priya owns a Dell laptop computer. She uses the computer in class and her classmates can see the Dell logo when she uses her laptop. One of her classmates is looking to purchase a new laptop and asks Priya her opinion of Dell computers. Priya informs her classmate that she is satisfied with her laptop and recommends that her classmate purchase one, too. For Dell, Priya is exhibiting some of the benefits of A) brand recognition. B) brand equity.C) brand insistence. D) brand loyalty. E) brand mark.

D

The step of the personal selling process in which a salesperson contacts a potential customer is called A) making the presentation.B) cold calling.C) the preapproach. D) the approach. E) prospecting.

D

When three buyers purchase the products of three producers, nine transactions are required. If one intermediary serves both producers and buyers, the number of possible transactions is A) 15.B) 5. C) 18. D) 6. E) 20.

D

14) When better market conditions prevail or when company growth occurs, a company may suffer if it A) lowered its sales force objectives.B) recruited additional salespeople.C) decided to use a combination compensation plan. D) provided additional training for its sales force. E) cut back the size of its sales force.

E

25) After the advertising budget is determined, the next step in creating an advertising campaign is A) creating the advertising message.B) creating the advertising platform.C) evaluating the advertising objectives. D) executing the campaign. E) developing the media plan.

E

27) A shopping center that contains stores owned by manufacturers who make a special effort not to conflict with traditional retailers is a(n) A) strip mall.B) neighborhood shopping center. C) off-price mall.D) lifestyle shopping center. E) outlet shopping mall.

E

28) When respondents are shown a list of various products, brands, and company names and then asked about advertisements they have seen lately, researchers are conducting a(n) A) unaided recall test.B) pretest. C) recognition test.D) aided recognition test. E) aided recall test.

E

29) An ad's ____ is designed to attract readers' attention and develop interest so that they will read the entire advertisement. A) signature B) layoutC) subheadline D) artwork E) headline

E

47) If Florida Gas and Electric increased its rates by 10% and experienced a 2% reduction in the demand for power, the demand would be A) elastic.B) minimal. C) minor elasticity. D) variable.E) inelastic.

E

When a customer is aware that a brand exists and considers it a possibility if his preferred brand is out, he exhibits brand A) loyalty.B) insistence.C) preference.D) acknowledgment. E) recognition.

E

35) If Glade, which markets Glade scented Plug Ins and Glade scented candles and wax melts were to introduce Glade laundry detergent and dryer sheets with the same scents, this would be called ____ branding. A) brand-extensionB) licensed C) familyD) individual E) new-product

A

36) Universal decided to run its new commercials for all of its theme parks several times a day for three weeks and then not at all for two weeks. It will then run the commercials again for three more weeks. Universal is using a(n) ____ schedule for its advertising. A) flighting B) varyingC) continuous D) pulsingE) interval

A

37) Research has shown that consumers visit websites, blogs, and online forums to receive electronic word-of-mouth communication about goods, services, and companies primarily because the sites A) reduce risk and save search effort.B) provide images of the products. C) contain advertising messages.D) rely on the general public as reviewers. E) allow for anonymous communication.

A

50) The media plan determines A) how many people in the target audience will be exposed to the message. B) how much the campaign will cost.C) the content of the message.D) who will prepare the advertisements.E) the layout of the message.

A

54) Haynes is launching a new advertising campaign. Within the first six months of the campaign, the media planners want the new advertisement's _____ to be 25% of the target market and the _____ to be four times. A) reach; frequencyB) goal; multiplier C) exposure; repetition D) range; rateE) impact; recurrence

A

Malia works for a consumer-packaged goods firm in the marketing department. She is trying to assess the effectiveness of a recent public relations campaign to improve the image of her firm, and therefore its sales. She is trying to determine which news releases her firm sent out actually were published in newspapers. What should she do to get that measurement? A) Hire a clipping service B) Count the number of exposures in the mediaC) Request the TV station record its name and dates of when the news item was broadcast D) Conduct a readership surveyE) Conduct a content analysis

A

Which of the following statements about nonprice competition is false? A) Companies that use nonprice competition do not need to keep track of their competitor's prices. B) A company must be able to distinguish its brand through some unique feature in order to successfully engage in nonprice competition. C) A firm using nonprice competition can build loyalty to both its company and its products. D) When using nonprice competition, a company should promote the distinguishing characteristics of its brand. E) Buyers must view the distinguishing characteristics of a product offered through nonprice competition as being important.

A

15) If the product price is $100, average variable cost $40 per unit, and the total fixed costs are $120,000, what is the breakeven point? A) 500 unitsB) 2,000 units C) 1,200 units D) 300 units E) 3,000 units

B

20) Cesar is getting ready to move to campus for his freshman year of college. To get the products he needs for his dorm room, he goes to a store that sells household goods such as plastic containers, sheets, and towels. The store also sells personal items such as shampoo, deodorant, and toothpaste, as well as food products. Cesar has most likely gone to a A) discount store. B) superstore.C) supermarket.D) department store. E) warehouse club.

B

26) A store that offers a wide variety of shoes for men, women, and children would most likely be considered a(n) A) department store.B) specialty retailer.C) category killer. D) off-price retailer.E) warehouse showroom.

B

33) ______ can be considered a public relations tool because what a company executive says publicly at meetings or to the media can affect the organization's image. A) Event sponsorshipsB) Speeches C) News releasesD) Annual reportsE) Corporate identity materials

B

42) ______ that generates loyal long-term customers is likely to be extremely profitable in repeat sales as well as the money saved in trying to find new customers. A) Team sellingB) Relationship selling C) Technical selling D) Creative selling E) Tactical selling

B

A new soap manufacturer wants to get its product into national retail stores. It recently developed a product that executives think will be able to compete against top brands such as Dove and Dial. However, they know that retailers are often skeptical of carrying new products when their success is not known. The soap manufacturer therefore offers a price reduction to the retailers for each case of soap they buy. The soap manufacturer is most likely using a A) dealer loader. B) buying allowance.C) merchandise allowance. D) scan-back allowance. E) buy-back allowance.

B

Brands that are promoted through comparative advertising are most likely to be A) market leaders.B) brands that are attempting to compete with market leaders.C) primarily services rather than tangible goods. D) attempting to compete on a nonprice basis. E) competing in a less competitive market.

B

22) A producer is not likely to receive ____ from an industrial distributor. A) selling activities in local marketsB) market information about consumersC) aggressive promotion of its brand D) reduced capital requirementsE) a reduced financial burden from customers

C

31) A manufacturer-owned operation that provides services usually associated with agents is a A) facilitating agency.B) wholesaler.C) sales office. D) sales branch.E) public warehouse.

C

34) Which of the following is a reason why the use of sales promotion has increased dramatically? A) Customers are more responsive to advertising.B) Brand loyalty is increasing.C) Retailers are demanding greater promotional efforts from manufacturers to boost profits. D) Retailers are placing a stronger emphasis on long-term results versus short-term results. E) Customers are less responsive to personal selling.

C

38) What is the primary difference between an agent and a broker? A) An agent gets compensated based on commission while a broker generally charges fees for his services.B) A broker works only for a seller whereas an agent can represent a buyer or a seller.C) An agent represents a company on a permanent basis while a broker is employed temporarily.D) An agent has much more extensive knowledge about the products he deals with than a broker does.E) Brokers have long-term relationships with their customers while an agent's relationships are generally short-lived.

C

46) A customer must have a particular brand and will accept no substitutes. This is termed brand A) preference. B) loyalty.C) insistence. D) recognition. E) requirement.

C

48) Which of the following issues is least important in using co-branding effectively? A) The brands involved should represent a complementary fit in a customer's mind. B) The brands that are teamed together should not lose their individual identities.C) The brands involved should be owned by different companies. D) Co-branding should be done in a way so that it is obvious which brand is the main brand or key brand. E) Co-branding should take advantage of the distribution capabilities of the brands involved.

C

49) Bling is a manufacturer of fashion jewelry that is expanding its use of direct marketing. Management has narrowed the options down to two, but has not decided whether to use ____ where it would mail potential customers brochures featuring the company's entire product line or _____ where it would feature a handful of products on QVC or the Home Shopping Network. A) catalog marketing; online marketingB) brand marketing; product marketingC) catalog marketing; television home shopping D) online marketing; telemarketingE) general-line marketing; limited-line marketing

C

55) If Norwegian Cruise Lines increased the price of its seven-day cruise package by 10% and, as a result, experienced a 20% decline in customer bookings, Norwegian's demand would be A) steady.B) inelastic. C) elastic. D) prestige. E) marginal.

C

58) Pricing the basic product in a product line low while pricing products that go with the basic product at a higher level is called A) premium pricing. B) reference pricing. C) captive pricing. D) price skimming. E) price lining.

C

30) The primary function of most wholesalers is to A) support the needs of the manufacturers and provide them with market information. B) provide for the unique needs of the individual retailers buying their merchandise. C) provide information system tracking of inventory for the ultimate consumer.D) develop and share database information about customers.E) perform physical distribution of products from manufacturers to retailers.

E

43) A spokesperson for Quaker oats encourages television audiences to use its oats in the summer by using them to make healthy overnight oats, which are served cold. In this instance, Quaker is using promotion to A) stimulate primary demand.B) offset competitors' promotional efforts. C) facilitate reseller support. D) retain loyal customers. E) reduce sales fluctuations.

E

44) Lanie tells her sales manager that she will be devoting more effort to ____ in the coming weeks, as her list of potential customers has dwindled below the level of 30 firms recommended by the selling plan. A) approaching customersB) preapproaching C) closing the sale D) following upE) prospecting

E

51) Trey chooses to have his hunting equipment store in a location away from the main part of town so that he can have a large parking lot and an outdoor range for customers to test out his merchandise. Trey's store is A) in a traditional business district.B) a rural shopping center. C) in a neighborhood shopping center. D) a nontraditional shopping center. E) a free-standing structure.

E

56) Kevin, a salesperson for O'Malley Office Products, develops a list of potential customers and evaluates them on the basis of their ability, willingness, and authority to purchase copy machines. This process is called A) customer search.B) preapproach. C) customer evaluation. D) customer pre-approval. E) prospecting.

E

60) Durable goods such as appliances generally reach their target markets through ____; goods such as automobile tires generally reach their target markets through _____. A) intensive distribution; intensive distributionB) exclusive distribution; intensive distribution C) selective distribution; exclusive distribution D) selective distribution; intensive distribution E) selective distribution; selective distribution

E

The Ford Agency places $2,500 in radio spots and $17,500 in television spots for Darnell Insurance in June. For its efforts this month, the agency "traditionally" would receive ____ in compensation. A) $2,500B) $10,000 C) $1,000 D) $5,500 E) $3,000

E