Marketing Final Practice Exam

Which of the following is a major element of developing an advertising strategy? A) selecting advertising media B) using sophisticated statistical models C) setting advertising objectives D) evaluating advertising campaigns E) setting the advertising budget

a

________ is the only element in the marketing mix that produces revenue. A) Price B) Product C) Place D) Fixed costs E) Variable costs

a

Advertising has numerous goals. Which of the following is NOT one of those goals? A) to help move consumers through the buying process B) to work with lobbyists and legislators in developing industry regulations C) to move people to immediate action D) to build or strengthen long-term customer relationships E) to engage customers and change the way they think or feel about the brand

b

Today, ________ are flourishing due to the increased use of market segmentation and market targeting. A) chain stores B) specialty stores C) superstores D) discount stores E) off-price stores

b

________ involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk. A) Value-based pricing B) Competition-based pricing C) Cost-based pricing D) Penetration pricing E) Break-even pricing

c

Which of the following is an advantage of using newspapers as an advertising medium? A) long life B) good reproduction quality C) large pass-along audience D) broad acceptability E) no ad competition within the same medium

d

Which term refers to looking at merchandise at a traditional store and then purchasing the merchandise online? A) pop-up shopping B) wheel-of-retailing C) off-price retailing D) showrooming E) wholesaling

d

Which type of store is much larger than regular supermarkets and offers a large assortment of routinely purchased food products, nonfood items, and services? A) off-price retailer B) specialty store C) factory outlet D) superstore E) convenience store

d

________ creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping. A) Shopper marketing B) Point-of-purchase marketing C) Social media marketing D) Virtual marketing E) Omni-channel retailing

e

The direct mail medium has very low cost per exposure.

false

The most important objective of reminder advertising is telling the market about a new product.

false

A specific communication task to be accomplished with a specific target audience during a specific period of time is called an advertising objective.

true

Price decisions must be coordinated with product design, distribution, and promotion decisions to form a consistent and effective integrated marketing mix program.

true

A ________ is a small store, located near a residential area that is open long hours seven days a week and carries a limited line of high-turnover goods. A) convenience store B) chain store C) department store D) supermarket E) specialty store

a

After determining its advertising objectives, a company's next step in developing an advertising program is to ________. A) set an advertising budget B) determine the media vehicle C) use cash rebate offers D) evaluate the advertising campaign E) develop a message strategy

a

Press conferences, speeches, store openings, special events, newsletters, and store magazines are examples of ________ activities used by retailers to promote themselves. A) public relations B) sales promotions C) personal selling D) affinity marketing E) social marketing

a

When P&G developed the Mr. Clean Magic Eraser, the company needed to explain how the product cleans grime from walls without removing paint. What type of campaign was most likely used by P&G for the Mr. Clean Magic Eraser? A) informative advertising B) persuasive advertising C) reminder advertising D) developmental advertising E) comparative advertising

a

Which of the following is a major step in selecting advertising media? A) determining reach, frequency, and impact B) selecting message execution style C) developing a compelling creative concept D) deciding on format elements E) planning a message strategy

a

Which of the following is true of value-based pricing? A) The targeted value and price drive decisions about what costs can be incurred and the resulting product design. B) Value-based pricing is mostly product driven. C) Value-based pricing involves setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for its effort and risk. D) The marketer usually designs a product and marketing program and then sets the price. E) A company using value-based pricing designs what it considers to be a good product, adds up the costs of making the product, and sets a price that covers costs plus a target profit.

a

Which of the following statements about magazines as an advertising medium is true? A) Magazines have long ad purchase lead times. B) Magazines cannot offer high geographic selectivity. C) Magazines lack credibility. D) Magazines provide better local coverage than newspapers. E) Magazines have poor reproduction of images.

a

Which type of store carries a deep assortment of a particular product line, has knowledgeable staff, and can be viewed as a giant specialty store? A) category killer B) convenience store C) factory outlet D) warehouse club E) off-price retailer

a

With direct marketing, companies can interact with customers in all of the following ways EXCEPT ________. A) in person B) learning more about customers' needs C) personalizing products and services D) answering questions from customers E) by phone or online

a

________ includes all activities involved in selling goods and services to those buying for resale or business use. A) Wholesaling B) Retailing C) Franchising D) Discounting E) Showrooming

a

________ pricing uses buyers' perceptions of value as the key to pricing. A) Customer value-based B) Cost-based C) Time-based D) Markup E) Target return

a

Advertising objectives should be based on the marketing mix, positioning, and ________. A) differentiation B) past decisions about the target market C) costs of different media choices D) ability to create special events E) novelty of the product advertised

b

Companies with higher costs ________. A) can drive out competitors through their pricing strategy B) intentionally pay higher costs so that they can add value through higher quality and claim higher prices and margins C) can set lower prices that result in increased sales though with lower margins D) specialize in selling products without value-added features E) are more financially successful

b

Competitive parity and task methods are considered when making decisions about ________. A) sales objectives B) budget C) message structure D) media selection E) message effectiveness

b

In-store demonstrations, displays, sales, and loyalty programs are examples of ________. A) direct marketing B) sales promotion C) public relations D) personal selling E) affinity marketing

b

Price is important to managers ________. A) because prices cannot be changed quickly, so must be correctly determined B) because a small percentage improvement in price can generate a large percentage increase in profitability C) but other marketing mix elements create customer value and build relationships D) but product features can be changed more quickly E) but has little impact on a firm's market share

b

Retailers such as Costco and Walmart charge a constant, daily low price with few or no temporary price discounts. This is an example of ________ pricing. A) competition-based B) everyday low C) cost-plus D) break-even E) penetration

b

Specialty stores carry ________ with ________ within them. A) only convenience products; shallow assortments B) narrow product lines; deep assortments C) narrow product lines; shallow assortments D) wide product lines; shallow assortments E) wide product lines; deep assortments

b

The first step in creating effective advertising messages is ________. A) selecting specific media vehicles B) planning a message strategy C) determining return on advertising investment D) choosing media timing E) executing the message

b

When the advertising objective is to build primary demand for a new product category, ________ advertising will most likely be used. A) persuasive B) informative C) comparative D) patronage E) institutional

b

Which of the following involves introducing less-expensive versions of established, brand name products? A) markup pricing B) good-value pricing C) time-based pricing D) cost-based pricing E) target profit pricing

b

Which type of store carries a wide variety of product lines and has been squeezed in recent years between more focused and flexible specialty stores on the one hand and more efficient, lower-priced discounters on the other? A) warehouse clubs B) department store C) factory outlet D) merchant wholesaler E) category specialist

b

________ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. A) Franchising B) Retailing C) Brokering D) Wholesaling E) Disintermediation

b

________ pricing refers to offering just the right combination of quality and gratifying service at a fair price. A) Markup B) Good-value C) Cost-plus D) Target profit E) Break-even

b

________ sell standard merchandise at lower prices by accepting lower margins and selling higher volume. A) Merchant wholesalers B) Discount stores C) Full-service retailers D) Limited-service retailers E) Factory outlets

b

A restaurant wants to use value-based pricing. It knows the costs of the ingredients in the food. It must also factor in ________ in determining customer satisfaction and value. A) wages of employees B) costs of utilities of the restaurant C) atmosphere and décor of the restaurant D) travel distance for customers E) percentage of bar patrons versus dining patrons

c

An advertising objective is classified by its primary purpose, which is to inform, persuade, or ________. A) reciprocate B) compete C) remind D) explain E) suggest

c

Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called ________. A) sales promotion B) direct marketing C) advertising D) personal selling E) public relations

c

Companies with lower costs ________. A) specialize in selling products with value-added features B) usually market products with inferior quality, thereby justifying the low selling price C) can set lower prices that result in smaller margins but greater sales and profits D) tend to overprice products owing to their monopolistic advantage E) usually set higher prices that result in higher margins

c

Cost-plus pricing ________. A) is a complex pricing method B) involves pricing that accurately reflects production costs C) involves adding a standard markup for profit D) aims at breaking even on the costs of making and marketing a product E) is a value-based pricing method

c

Retailers connect brands with consumers in the ________ phases of the buying process. A) need identification B) evaluation of alternatives C) final D) information gathering E) post-purchase

c

Store retailers must master ________, integrating store and online channels into a single shopper experience. A) showrooming B) single-channel retailing C) omni-channel retailing D) webrooming E) dual-channel retailing

c

The perceived value of different product offers can be reasonably assessed by ________. A) conducting a SWOT analysis B) preparing demand curves C) conducting surveys and experiments D) collecting data about competitors' offers E) setting a benchmark for product quality

c

When McDonald's and other fast food restaurants offer "value menu" items at surprisingly low prices, they are most likely using ________ pricing. A) break-even B) target profit C) good-value D) cost-plus E) target return

c

Which of the following is true about online direct marketing? A) Online direct marketing is also referred to as multi-level marketing. B) Salespersons are compensated for other salespeople they recruit. C) Online direct marketing allows sellers to create immediate, timely, and personal offers. D) Online direct marketing involves two or more intermediaries. E) In online direct marketing, outside and inside sales forces coordinate to provide value products to customers.

c

Which of the following processes does value-based pricing reverse? A) high-low pricing B) everyday low pricing C) cost-based pricing D) good-value pricing E) value-added pricing

c

Which of the following statements about outdoor media is true? A) It has no creative limitations. B) It is characterized by higher costs per exposure. C) It has good positional selectivity. D) It has very limited flexibility. E) It has high audience selectivity.

c

Which of the following statements is true of direct marketing? A) Direct marketing is also referred to as referral marketing. B) Salespersons are compensated for other salespeople they recruit. C) Direct marketing offers sellers a low-cost alternative for reaching their markets. D) Direct marketing involves two or more intermediaries. E) In direct marketing, consumers earn a commission every time they buy a product.

c

Advantages of direct and digital marketing for sellers include all of the following EXCEPT ________. A) low cost B) efficiency C) speed D) need for sales training E) flexibility

d

Advertising is a good way to ________, inform, and persuade. A) educate B) create C) define D) engage E) harvest

d

Encouraging customers to switch brands is most likely the objective of ________ advertising. A) informative B) reminder C) covert D) persuasive E) institutional

d

Marketing management must make important decisions when developing an advertising program. Which of the following is NOT one of those decisions? A) evaluating advertising effectiveness B) developing advertising strategy C) setting advertising objectives D) designing products and distribution E) setting the advertising budget

d

Television, as a medium of advertisement, is characterized by ________. A) high audience selectivity B) low absolute costs C) poor mass-marketing coverage D) fleeting exposure E) high cost per exposure

d

The decisions about impact and engagement of an advertisement fall into the category of ________ decisions. A) sales objectives B) budget C) message D) media E) advertising evaluations

d

What is usually the first step in cost-based pricing? A) testing the product concept with potential customers B) determining the marketing mix strategy C) setting a price that covers costs plus a target profit D) designing a good product E) adding up the costs of making the product

d

Which of the following is NOT a type of off-price retailer? A) independent B) factory outlet C) warehouse club D) category killer E) wholesale club

d

Which of the following is a disadvantage of using direct mail as an advertising medium? A) low audience selectivity B) no flexibility C) severe ad competition D) relatively high cost per exposure E) lack of personalization

d

Which of the following is most likely an objective of informative advertising? A) build brand preference B) change customer perceptions of brand value C) encourage customers to switch brands D) suggest new uses for a product E) keep the brand in customer minds during off-seasons

d

Which of the following is true with regard to price? A) Historically, price has had the least perceptible impact on buyer choice. B) Price is the least flexible element in the marketing mix. C) Unlike product features and channel commitments, prices cannot be changed quickly. D) Price is the sum of all the values that customers give up to gain the benefits of having a product. E) Prices only have an indirect impact on a firm's bottom line.

d

Amazon.com and GEICO approach customers via Web sites or mobile apps. This is an example of ________ marketing. A) mass B) niche C) individual D) multi-level E) direct

e

Home Depot and PetSmart are examples of ________. A) factory outlets B) warehouse clubs C) superstores D) off-price retailers E) category killers

e

Which of the following involves setting prices based on a rival firm's strategies, costs, prices, and market offerings? A) target return pricing B) good-value pricing C) competitor value-added pricing D) market-based pricing E) competition-based pricing

e

Which of the following is an objective of persuasive advertising? A) communicate customer value B) correct false impressions C) describe available services and support D) keep the brand in a customer's mind during off-seasons E) engage customers and create brand community

e

Which of the following statements is most likely true about radio as an advertising medium? A) Radio advertising is typically quite expensive. B) Radio ensures good attention from the target audience. C) Radio offers very low audience selectivity. D) Radio prohibits the use of segmentation strategies. E) Radio advertising is characterized by good local acceptance.

e

________ becomes more important as competition increases. With this type of advertising, a company's objective is to build selective demand. A) Institutional advertising B) Informative advertising C) Reminder advertising D) Not-for-profit advertising E) Persuasive advertising

e

A discount store buys at less-than-regular wholesale prices and charges consumers less than retail.

false

Advertising is the least used of the major promotion tools, although it has great potential for building consumer awareness and reference.

false

Cost-based pricing involves setting prices based on consumer perception of value.

false

Department stores that practice everyday low pricing typically provide frequent sale days, early-bird savings, and bonus earnings for store credit-card holders.

false

Direct and digital marketing involve targeting broad segments of customers.

false

Direct marketing is an expensive way of reaching target markets.

false

Good-value pricing usually is used by premium brands, and rarely by less-expensive brands.

false

Informative ads are used primarily in the growth stage of the product life cycle.

false

Off-price retailers pay regular wholesale prices for their merchandise but maintain low prices by accepting lower margins and selling higher volume.

false

Persuasive advertising aims to build broad demand.

false

Price is the most inflexible of the marketing mix elements

false

Value-based pricing uses the sellers' perception of value as the key to pricing.

false

Advertising is a good way to engage, inform, and persuade, regardless of the objective of the message.

true

Although television advertising has high absolute costs, its cost per exposure is relatively low.

true

Category killers are giant specialty stores that carry a very deep assortment of a particular line.

true

For customers, the benefits of direct marketing are being able to shop online anytime and anywhere.

true

In customer value-based pricing, price is considered along with all other marketing mix variables before the marketing program is set.

true

Internal factors affecting pricing include the company's overall marketing strategy, objectives, and marketing mix.

true

Most companies use direct marketing as a supplementary channel or medium.

true