BUAD479 Exam 2 MC

In 2016, having wifi at Starbucks is an example of a(n): augmented product. potential product. generic product. expected product.

expected product.

Subaru car owners are renowned for their repeat buying and brand loyalty. What type of connection would Keller conclude that the customer has achieved with the brand? Enlightenment Resonance Performance Salience

Resonance

In marketing communications, which of the following message elements performs the function of a strong takeaway or moral lesson? Brand logo Humorous appeal Tagline or headline Jingle or musical signature

Tagline or headline

Which of the following choices is NOT a consideration for the depth of a product line? Potential for cannibalization The trialability of the product line The effect on overall brand equity Customer heterogeneity and requirements specification

The trialability of the product line

Norwegian Cruise Lines controls the availability of prices by offering deals to specific groups of buyers based on all of the following EXCEPT: location. information gathered via e-commerce. coupon usage. competition.

competition.

Apprentice Mousetraps has developed the Magic Mouse Trapper. The company's fixed costs are $30,000 per week. The product sells for $20. Initially, the company estimated that it would cost $5 per unit to make each mousetrap. After one week in production, however, the company realized that its actual cost to make each unit was $7.25. What are the weekly volumes that a) Apprentice originally thought it needed to produce to break even, and b) Apprentice actually needs to produce to break even? 2,000 and 2,353 mousetraps 2,000 and 3,000 mousetraps 1,000 and 2,000 mousetraps 2,353 and 4,000 mousetraps

2,000 and 2,353 mousetraps

Nike has a variable cost of $25 for its women's running shoes and sells the shoes to the broker for $50, who sells them to the retailer for $75, who sells them to the consumer for $99.99. What is the percentage margin to the retailer? Please round to the nearest percent. 17%. 25%. 33%. 50%.

25%.

Assume that the variable cost of Marie's blue cheese salad dressing is $1.00 per 12 oz. bottle, that Marie's sells it to the broker for $2.00, and that the broker sells it to the retailer for $2.99. The price at retail is $3.99. What are the margins for the manufacturer, broker and retailer? Please round to the nearest percent. 50%, 33%, and 25% 33%, 25%, and 50% 30%, 50%, and 33% 100%, 40%, and 33%

50%, 33%, and 25%

All of the following are examples of expansion of the existing product line of Coca-Cola EXCEPT: Coke Zero. Caffeine Free Diet Coke. Coca-Cola Freestyle vending machine. Diet Coke.

Coca-Cola Freestyle vending machine.

Which of the following choices is a way that big data and data science can help today's marketer? Big data can help firms react to market conditions more quickly, leading to optimized pricing practices. Data science has helped simplify promotional decisions because it has shown that simple promotions reaching large audiences work the best. Real-time inventory management often helps marketers plan promotional campaigns that are more effective. The use of big data helps in marketing decision making because it keeps marketing information more "pure" by eliminating other business units from the marketing decision-making process.

Big data can help firms react to market conditions more quickly, leading to optimized pricing practices.

Marketers often use which of the following technique to determine the impact of a price change? Price elasticity Competitive analysis Assessing perceived value Breakeven analysis

Breakeven analysis

Research indicates that which of the following plays the greatest role in the product purchase decision process? Customer reviews/recommendations Point-of-purchase displays Discounts Banner advertising

Customer reviews/recommendations

When marketers use communications tools such as Facebook-sponsored ads and Amazon's product suggestions, which of the following types of marketing are they using? Mass marketing Segment marketing Consumer-to-consumer marketing Customized marketing

Customized marketing

What type of marketing strategy best exemplifies a straightforward mapping of a product to a customer's willingness to pay? Sustainable differentiation Perceived value Segmentation by income Good-better-best vertical differentiation

Good-better-best vertical differentiation

During which stage of the product life cycle would Dannon Greek Yogurt most typically add new flavors and sizes to its new organic product line? Decline Introduction Maturity Growth

Growth

According to Young and Rubicam's Power Grid, what are the key characteristics of an aspiring brand? High differentiation and relevance, high esteem and knowledge High differentiation and relevance, low esteem and knowledge Low differentiation and relevance, high esteem and knowledge Low differentiation and relevance, low esteem and knowledge

High differentiation and relevance, low esteem and knowledge

You work for Amazon.com and you are charged with building consumer awareness for the latest version of the firm's Kindle reader. What type of digital advertising campaign should you run? Impression-based display ad campaign Ad exchange display campaign Click-based display ad campaign Search ad campaign

Impression-based display ad campaign

Sue has been shopping for a new computer, and she has diligently researched the various available brands. After evaluating the alternatives, she is considering purchasing a Dell computer. Which of the following is an example of marketing communications that Dell might use to prompt Sue in the next stage of her decision making—the purchase decision? Dell's website offering a comparison chart that identifies differences in features among models Television advertising that announces Dell's newest computer model Send her a direct mail outlining the customer service options that Dell provides In-store signage announcing a $500 rebate with the purchase of a Dell computer

In-store signage announcing a $500 rebate with the purchase of a Dell computer

Which of the following choices is NOT one of the reasons cost-plus pricing is so popular? It is easy to justify to various stakeholders. It captures the full price that customers might be willing to pay for a product. It simplifies an otherwise complex pricing process. It is easy to measure or estimate.

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

Where on Young and Rubicam's Power Grid would a product with high brand recognition but with low differentiation and relevance likely reside? Upper left quadrant / Aspiring brand Lower right quadrant / Eroding brand Upper right quadrant / Power brand Lower left quadrant/ New or fading brand

Lower right quadrant / Eroding brand

Marketers may choose among various approaches to attribute accurately the role of a particular digital ad in a purchase. Identify the approach that uses existing data on consumer interactions with each ad or search along the consumer's purchasing path to estimate the effect of each interaction. First interaction Model-based Linear Last interaction

Model-based

Managers are trying to decide on which variables to use in segmenting and selecting a target audience for marketing communications about 5-Hour Energy—a potent energy drink. Which of the following variables are classified INCORRECTLY as demographic or psychographic bases of market segmentation? Individuals with an active lifestyle = psychographic Long-haul truck drivers and college students = demographic Senior citizens (65 years and older) = psychographic Consumers living on the West Coast with high household incomes = demographic

Senior citizens (65 years and older) = psychographic

HubSpot CEO Brian Halligan discusses inbound marketing in Video 4: Interview with HubSpot CEO Brian Halligan about Inbound Marketing 2.0 in the Core Reading. According to Halligan, digital marketers are making bad inbound marketing choices. Which of the following choices is NOT among them? Dabbling in inbound marketing and not going full in Spending more time creating content and less money on placement Not measuring effectiveness well Not realizing that the role of the sales rep has changed

Spending more time creating content and less money on placement

Which of the following statements most closely matches the forecast provided in the reading for digital advertising spending in the future? There is little expectation that spending will continue to grow at anything greater than an organic rate; industry experts believe that spending has reached a point where it will only grow in the future at the same rate of overall advertising spending. Spending on digital advertising is predicted to grow at a rate of 50% per year for the foreseeable future. Growth in digital advertising will continue, but it is expected that this growth will vary widely between years over the next 10 years or so. In some years, growth may be 10%, in others 30% to 40%. Spending on digital advertising is forecast to grow at a rate of more than 15% per year.

Spending on digital advertising is forecast to grow at a rate of more than 15% per year.

Which of the following best describes brand promise? What a company wants a consumer to do/gain/feel by using the product The set of human characteristics associated with a brand The differentiation of a product relative to its closest competitors The underlying value proposition conveyed and the marketing language used

What a company wants a consumer to do/gain/feel by using the product

All of the following are typical marketing research techniques utilized in the new-product development process EXCEPT: concept testing. focus groups. surveys. awareness and usage study.

awareness and usage study.

All the factors below affect how a company might customize prices EXCEPT: intensity of use. competition. fixed costs. consumer tastes.

fixed costs.

Starbucks offers a variety of types of coffee to its customers at various price points based on the quality of the coffee beans and where the coffee is grown. This is an example of: good/better/best strategy. controlling the availability of prices. pricing based on transaction characteristics. observable buyer characteristics.

good/better/best strategy.

A firm might NOT want to engage in social media because(i) its product is unlikely to generate online conversation,(ii) the firm wants to act transparently,(iii) the reputational risk from hostile conversations about the product is fairly high. i, ii, and iii i and iii only ii only i and ii only

i and iii only

Corporations can benefit from personal branding through:(i) celebrity endorsements,(ii) customers who relate to the brand personality,(ii) development of employee leadership potential. i only ii only i and iii only i and ii only

i and iii only

Most executives agree that brand strategies must be engineered across the entire marketing mix and throughout the life cycle of a product. Which of the following is NOT a component of that marketing mix?(i) Pricing (ii) Market research (iii) Production (iv) Innovation ii, iii, and iv ii and iv iii only i only

ii, iii, and iv

Merging and milking brands are examples of defending a brand. increasing brand loyalty. liquidating brands from a product portfolio. creating brand extensions.

liquidating brands from a product portfolio.

A consumer's incentive to purchase is equal to: true economic value (TEV) minus cost of goods sold. product price minus cost of goods sold. perceived value (PV) minus price. true economic value minus product price.

perceived value (PV) minus price.

All of the following are inputs to any value-pricing decision EXCEPT: cost of goods sold. true economic value. product price. perceived value.

product price.

All of the following metrics are typically included in a concept test EXCEPT: perceived uniqueness. likelihood to purchase the product. product price. perceived likeability.

product price.

One role of marketing communications in the problem recognition stage of the purchase decision-making process is to: remind consumers of existing needs. resolve consumer problems with customer service outreach. educate consumers about features and benefits. alert the company about problems in conveying a message to target consumers.

remind consumers of existing needs.

After seeing increased competition, and in an effort to increase sales and profitability, Wonder Bread wants to extend its product mix breadth. The firm should consider all of the following EXCEPT: undertaking a business whose profit stream will probably correlate negatively with the profit streams of existing businesses, thereby reducing the overall risk of the enterprise. tapping into scarce resources that could benefit the overall product mix. leveraging a key asset of the company that underlies the current product offerings. tapping into complementary-in-use products and thus enabling the firm to be a "total solution" supplier.

tapping into scarce resources that could benefit the overall product mix.

A customer is shopping for spices in a US supermarket. She pauses as she compares the Goya brand of cinnamon to the McCormick brand. She opts for the McCormick cinnamon, judging it to be of better quality. This instinctual bias is known as: the provenance paradox. the corona effect. brand loyalty. brand resonance.

the provenance paradox.

The Stage-Gate model includes all of the following steps EXCEPT: training. test. launch. development.

training.

The number 1 driver of new product profitability is: a differentiated product that delivers benefits to the customer. unique superior product. unique service. a product that provides a compelling value proposition to the customer.

unique superior product.