MKTG 0431-01 Principles of Marketing Fall 2018 Review Test 12

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When developing contingency plans, your textbook recommends developing a minimum of _______ contingencies? Select one: a. 5 b. 3 c. 1 d. 2 e. 4

3

Which of the following statements about forecasting is true? Select one: a. When the stakes are low (not much at risk if you make a bad decision) you should make a greater effort in your sales forecast. b. In order to develop an actionable forecast, you have to use three or more different methods. c. All forecasts are guesses. d. The past sales method is more accurate in volatile (high uncertainty) markets. e. Long-term forecasts are more accurate than short-term forecasts.

All forecasts are guesses.

Which of the following is NOT a factor that drives competition in an industry? Select one: a. Barriers to entry b. Bargaining power of employees c. The existence of indirect competitors d. The existence of direct competitors e. Bargaining power of Suppliers

Bargaining power of employees

Which of the following is NOT a factor that drives competition in an industry? Select one: a. Barriers to entry b. Bargaining power of employees c. Bargaining power of Suppliers d. The existence of direct competitors e. The existence of indirect competitors

Bargaining power of employees

The Kellogg's company has spent Millions of dollars over the decades advertising its many brands of ready to eat cereal products. In fact, many of the brand characters such as Tony the Tiger; Snap, Crackle and Pop have become well established in the popular culture. Because it would cost a competitor hundreds of millions of dollars to create a brand image comparable to these icons, Kellogg's brand equity is a ____________ in the ready to eat cereal market? Select one: a. Monopoly b. Direct competitor c. Strong supplier d. Indirect competitor e. Barrier to entry

Barrier to entry

The Kellogg's company has spent Millions of dollars over the decades advertising its many brands of ready to eat cereal products. In fact, many of the brand characters such as Tony the Tiger; Snap, Crackle and Pop have become well established in the popular culture. Because it would cost a competitor hundreds of millions of dollars to create a brand image comparable to these icons, Kellogg's brand equity is a ____________ in the ready to eat cereal market? Select one: a. Strong supplier b. Indirect competitor c. Barrier to entry d. Monopoly e. Direct competitor

Barrier to entry

Why is it important to develop contingency plans when you adopt a sales forecast? Select one: a. A contingency plan is what you do if a forecast is incorrect. b. Because you create a best case, a worst case, and a most likely scenario. c. A contingency plan is what you do if the forecast is correct. d. Because you need the best case and worst case scenarios. e. Because once a plan is underway, there is a tendency to explain away unexpected results rather than try to adapt the plan to the new circumstances.

Because once a plan is underway, there is a tendency to explain away unexpected results rather than try to adapt the plan to the new circumstances.

Why is it important for a marketing manager to be aware of macro-economic indicators such as leading economic indicators and the business cycle? Select one: a. These are all reasons why it is important for a marketing manager to be aware of macro-economic indicators. b. Leading economic indicators were up 0.1% in September 2006 c. The last trough in the business cycle was July, 2003. d. Because much of this information is available for free from government sources. e. Because you use different strategies in an "up" market than you do in a "down" market.

Because you use different strategies in an "up" market than you do in a "down" market.

Why is it important for a marketing manager to be aware of macro-economic indicators such as leading economic indicators and the business cycle? Select one: a. These are all reasons why it is important for a marketing manager to be aware of macro-economic indicators. b. The last trough in the business cycle was July, 2003. c. Because you use different strategies in an "up" market than you do in a "down" market. d. Because much of this information is available for free from government sources. e. Leading economic indicators were up 0.1% in September 2006

Because you use different strategies in an "up" market than you do in a "down" market.

When developing contingency plans, the ____________ scenario assumes that everything that could go either right or wrong goes right? Select one: a. Worst case b. Most likely case c. Least Likely case d. Best case e. Legal Case

Best case

The best understanding of market dynamics comes when sales is expressed in? Select one: a. Percentage change from year ago. b. Sales per square foot. c. Units d. Dollars e. Both dollars and units

Both dollars and units

When I go to the grocery store, I see several different types of Cola products. In addition to Coke and Pepsi in various shapes and sizes, there is RC cola and a store brand of Cola as well. This is an example of ___________ competition? Select one: a. Brand b. Product c. Discretionary income d. Pure e. Regulated

Brand

When I go to the grocery store, I see several different types of Cola products. In addition to Coke and Pepsi in various shapes and sizes, there is RC cola and a store brand of Cola as well. This is an example of ___________ competition? Select one: a. Discretionary income b. Product c. Brand d. Pure e. Regulated

Brand

The SWOT analysis can be used to develop marketing strategies by ____________? Select one: a. Building on a strength b. Building on a weakness c. Minimizing an opportunity d. Building on a threat e. These are all ways to develop a strategy using the SWOT analysis.

Building on a strength

Santa Claus is trying to estimate demand for toys this Christmas. He know there will be 3.7 billion children because he monitors birth trends across the world. He knows from experience that 14% will be naughty this year and get coal rather than presents for Christmas. He recently commissioned a research study from Donner + Blitzen associates who found that children stop believing in Santa Clause when they are 5.8 years old. Santa is likely to use the ____________ method to forecast demand for toys? Select one: a. Sales force survey b. Market testing c. Chain ratio d. Market Factor Analysis e. Survey of buyer intentions

Chain ratio

The ____________ component of the external macro-environment deals with alternate firms that could satisfy a specific market's need? Select one: a. Political/legal b. Socio-cultural c. Technological d. Competitive e. Economic

Competitive

The ____________ component of the external macro-environment deals with alternate firms that could satisfy a specific market's need? Select one: a. Technological b. Socio-cultural c. Economic d. Political/legal e. Competitive

Competitive

Developing a ______________ involves identifying critical points in the plan, anticipating what could go right or what could go wrong and determining in advance what course of action you will take? Select one: a. Outcome measure b. Strategic plan c. Diagnostic measure d. Contingency plan e. Tactical plan

Contingency plan

In a multi-market, multi-product firm such as the Nestle Corporation, what is the highest level at which strategic planning might take place? Select one: a. Business Unit level b. Functional area level c. Mezzanine level d. Marketing department level e. Corporate level

Corporate level

Which level of the organization is typically responsible for determining the makeup of the organization's portfolio of businesses? Select one: a. Corporate level b. Business Unit level c. Functional area level d. marketing department level e. mezzanine level

Corporate level

The product market growth matrix suggests four strategies based on customers and products. Which of the following is NOT one of the basic strategies suggested by this approach? Select one: a. Market development b. Penetration c. Product development d. Differentiation e. Diversification

Differentiation

A marketer interested in selling luxury goods would naturally pay close attention to changes in the amount of? Select one: a. Gross income b. Consumer income c. Disposable income d. National income e. Discretionary income

Discretionary income

When I go to the grocery store, I see several types of cola products. Sometimes, even though I am in the mood for a cool, refreshing Cola, I keep my money in my pocket because I am saving up for a new high definition television set. For the Coca Cola Company, this is an example of ___________ competition? Select one: a. Product b. Regulated c. Discretionary income d. Brand e. Pure

Discretionary income

_____________, is the amount of money a consumer has left after paying for necessities such as food and housing? Select one: a. National income b. Consumer income c. Gross income d. Disposable income e. Discretionary income

Discretionary income

____________, is the amount of money a consumer has after paying taxes? Select one: a. Discretionary income b. Consumer income c. Gross income d. National income e. Disposable income

Disposable income

BruceCo is a coffee shop selling custom-brewed coffee to walk-in customers. In order to boost sales, Bruce started a business selling music CD's on the internet. This is an example of the ____________ growth strategy? Select one: a. Market development b. Product development c. Penetration d. Diversification e. Differentiation

Diversification

The product market growth matrix suggests four strategies based on customers and products. Which of the following is the riskiest of the basic strategies suggested by this approach? Select one: a. Differentiation b. Product development c. Diversification d. Penetration e. Market development

Diversification

If I were scanning the _____________ environment, I would be interested changes in the consumer confidence index? Select one: a. Economic b. Technological c. Competitive d. Socio-cultural e. Political/legal

Economic

If I were scanning the _____________ environment, I would be interested changes in the consumer confidence index? Select one: a. Political/legal b. Competitive c. Technological d. Socio-cultural e. Economic

Economic

__________________ is the process of systematically monitoring internal and external data that may have an impact on future plans? Select one: a. Strategic planning b. Environmental scanning c. Marketing management d. Marketing myopia e. SWOT analysis

Environmental scanning

The last stage in developing a marketing plan involves Select one: a. Developing marketing tactics using the marketing mix b. Establishing the budget and the timetable c. Conducting a situation analysis d. Conducting a SWOT analysis e. Setting the marketing objectives

Establishing the budget and the timetable

The __________ environment deals with issues that are beyond your company's ability to control directly? Select one: a. External b. Natural c. Micro- d. Internal e. Macro-

External

The __________ environment deals with issues that are beyond your company's ability to control directly? Select one: a. Internal b. Natural c. External d. Macro- e. Micro-

External

Although you have the ability to decide whether or not to do business with a particular supplier, you can't tell the supplier how to run his or her business. This is why suppliers are part of the? Select one: a. Environmental scan b. External macroenvironment c. Internal macroenvironment d. Internal microenvironment e. External microenvironment

External microenvironment

The ______________ deals with factors that affect your company, but are beyond your ability to control directly? Select one: a. Internal macroenvironment b. Internal microenvironment c. Environmental scan d. External microenvironment e. External macroenvironment

External microenvironment

The ______________ deals with factors that affect your company, but are beyond your ability to control directly? Select one: a. Internal microenvironment b. External microenvironment c. Internal macroenvironment d. External macroenvironment e. Environmental scan

External microenvironment

The Federal government has the primary responsibility for regulating business in the United States. Select one: True False

False

A ________________ is a prediction of what a business's sales will be in the future? Select one: a. SWOT analysis b. Pro-forma production request c. Prediction d. Forecast e. Market share report

Forecast

In general, the intent of government regulation of business in the United States is to? Select one: a. Increase taxes b. Punish wrongdoers c. Minimize disruptive innovations. d. Preserve jobs e. Increase competition

Increase competition

The __________ environment deals with issues that are within your company's ability to control directly? Select one: a. Internal b. External c. Micro- d. Natural e. Macro-

Internal

The ______________ deals with factors that affect your company, and are within your ability to control directly? Select one: a. Environmental scan b. Internal microenvironment c. Internal macroenvironment d. External microenvironment e. External macroenvironment

Internal microenvironment

The ______________ deals with factors that affect your company, and are within your ability to control directly? Select one: a. External microenvironment b. Internal microenvironment c. Internal macroenvironment d. External macroenvironment e. Environmental scan

Internal microenvironment

A market factor...? Select one: a. Exists in a market b. Can be used for forecasting sales c. Is related to demand for your product d. Is something that can be measured e. Is all of these things.

Is all of these things.

Which of the following is NOT a characteristic of a good Objective? Select one: a. It includes a definite time-frame b. It is adaptable c. It is measurable d. It is relevant e. It is specific

It is adaptable

What is the relationship between the strategic planning that occurs at different levels in an organization? Select one: a. Everyone in the organization is working on the same strategic plan. The plan is initiated at higher levels and then passed down to lower levels for further processing. b. Higher-level strategic plans must be completed before lower-level strategic plans can be initiated. c. Different levels of strategic planning deal with completely different issues. d. Lower-level strategic plans must fulfill what is called for in higher-level strategic plans. e. The lower-level strategic plans must be completed before the higher-level strategic plans can be developed.

Lower-level strategic plans must fulfill what is called for in higher-level strategic plans.

The __________ environment deals with issues that affect all companies in an industry? Select one: a. Macro- b. Internal c. Natural d. External e. Micro-

Macro-

The __________ environment deals with issues that affect all companies in an industry? Select one: a. Micro- b. External c. Internal d. Natural e. Macro-

Macro-

The term _____________ describes how industries that were once growth industries became stagnant because managers in that industry relied on a narrow definition of their business and failed to change when technology or customer tastes changed? Select one: a. Disintermediation b. Cannibalization c. Failure to scan d. Railroad syndrome e. Marketing myopia

Marketing myopia

Julio is the sales manager for Champion Spark Plugs. Julio knows that there will be a need for 4.6 sparkplugs (on average) for every new car built this year and a need for 0.7 replacement sparkplugs for every car built in the last seven years. He read that US car sales are forecast to be 1,000,000 units next year. Julio is likely to use the ___________ method for forecasting demand? Select one: a. Sales force survey b. Lost horse c. Survey of buyer intentions d. Market Factor Analysis e. Chain ratio

Market Factor Analysis

What is the difference between market size and sales potential? Select one: a. These are all differences between market potential and sales potential. b. Market size is the upper limit of sales for the industry as a whole, sales potential is the upper limit of sales for your company. c. Market size relates to dollar sales, sales potential relates to unit sales. d. Market size is the number of potential customers for your product, sales potential is the number of actual customers for your product. e. Market size is an estimate based on research, sales potential is a fact based on internal sales data.

Market size is the upper limit of sales for the industry as a whole, sales potential is the upper limit of sales for your company.

Roxanne has developed a new adult milk beverage that is enhanced with vitamins. There has never been a product like this before and she is wondering how many cases she should manufacture in the first year of production. Roxanne is likely to use the ____________ method to forecast demand. Select one: a. Market Factor Analysis b. Market testing c. Survey of buyer intentions d. Sales force survey e. Chain ratio

Market testing

The __________ environment deals with issues that affect your company only? Select one: a. Internal b. Natural c. Macro- d. External e. Micro-

Micro-

The SWOT analysis can be used to develop marketing strategies by ____________? Select one: a. Identifying an opportunity or a strength b. Minimizing an opportunity or a strength c. Minimizing a weakness or a threat d. Building on a strength or a threat e. These are all ways to develop a strategy using the SWOT analysis.

Minimizing a weakness or a threat

A ____________ is a formal statement that describes the overall purpose of the organization and identifies its customers, products, processes, and values. Select one: a. Mission statement b. Operating plan c. Executive summary d. Strategic plan e. Business plan

Mission statement

When developing contingency plans, the ____________ scenario represents your best estimate of what actually will happen? Select one: a. Worst case b. Least Likely c. Scripted d. Most likely e. Best case

Most likely

When using a SWOT analysis, a threat is an issue that is? Select one: a. Negative External b. Positive External c. Positive, Internal d. Negative, Internal e. Positive, opportunity

Negative External

When using a SWOT analysis, a weakness is an issue that is? Select one: a. Negative, Internal b. Positive External c. Positive, Internal d. Negative External e. Positive, opportunity

Negative, Internal

A (n) ______________ is a long-term accomplishment that the organization wants to achieve? Select one: a. Outcome b. Metric c. Benchmark d. Report e. Objective

Objective

BruceCo is a small coffee company. Recently, the surgeon general announced that students who consume massive amounts of coffee the night before an examination tended to perform better than students who do not drink coffee. In terms of a SWOT analysis, this would be considered a (n) ________ for BruceCo? Select one: a. Threat b. Weakness c. Strength d. Point of difference e. Opportunity

Opportunity

The product market growth matrix suggests four strategies based on customers and products. Which of the following is the least risky of the basic strategies suggested by this approach? Select one: a. Diversification b. Differentiation c. Market development d. Product development e. Penetration

Penetration

The ____________ component of the external macro-environment deals with restrictions state and federal laws place on a business' activities? Select one: a. Political/legal b. Economic c. Competitive d. Socio-cultural e. Technological

Political/legal

The ____________ component of the external macro-environment deals with restrictions state and federal laws place on a business' activities? Select one: a. Technological b. Economic c. Socio-cultural d. Competitive e. Political/legal

Political/legal

When using a SWOT analysis, an opportunity is an issue that is? Select one: a. Negative, Internal b. Positive External c. Positive, opportunity d. Negative External e. Positive, Internal

Positive External

When using a SWOT analysis, a strength is an issue that is? Select one: a. Positive, opportunity b. Negative External c. Positive External d. Positive, Internal e. Negative, Internal

Positive, Internal

When I go to the store, I see several different types of cola products. Normally I prefer Coke Zero, but sometimes I am in the mood for a different kind of soft drink. I may buy an energy drink, or a Snapple, or even head over to the mall for a Jamba Juice. For Coca Cola, these other soft drinks are examples of ______________ competition? Select one: a. Brand b. Product c. Discretionary income d. Regulated e. Pure

Product

When I go to the store, I see several different types of cola products. Normally I prefer Coke Zero, but sometimes I am in the mood for a different kind of soft drink. I may buy an energy drink, or a Snapple, or even head over to the mall for a Jamba Juice. For Coca Cola, these other soft drinks are examples of ______________ competition? Select one: a. Brand b. Product c. Discretionary income d. Regulated e. Pure

Product

BruceCo is a coffee shop selling custom-brewed coffee to walk-in customers. In order to boost sales, Bruce started selling CD's of the music played in the store. This is an example of the ____________ growth strategy? Select one: a. Differentiation b. Market development c. Product development d. Penetration e. Diversification

Product development

What is a major disadvantage of the trend analysis method to forecasting? Select one: a. It can only be used for new products. b. It is very easy to use. c. Relying on statistical analysis means you risk ignoring foreseeable environmental factors. d. It can only provide long-term (more than one year) forecasts. e. It is most effective at the early stages of a new product introduction.

Relying on statistical analysis means you risk ignoring foreseeable environmental factors.

A(n) ______________ is a tool for evaluating an organization's internal and external strengths and weaknesses? Select one: a. Marketing audit b. SWOT analysis c. Marketing metric d. Environmental scan e. Strategic plan

SWOT analysis

If I were scanning the _____________ environment, I would be interested in the trend where multi-generational households are increasing? Select one: a. Natural b. Competitive c. Socio-cultural d. Political/legal e. Technological

Socio-cultural

If I were scanning the _____________ environment, I would be interested in the trend where multi-generational households are increasing? Select one: a. Natural b. Technological c. Competitive d. Socio-cultural e. Political/legal

Socio-cultural

The ____________ component of the external macro-environment deals with the demographic characteristics of a population and its values? Select one: a. Political/legal b. Competitive c. Technological d. Economic e. Socio-cultural

Socio-cultural

The ____________ component of the external macro-environment deals with the demographic characteristics of a population and its values? Select one: a. Socio-cultural b. Economic c. Technological d. Competitive e. Political/legal

Socio-cultural

_______________ is the process of determining what an organization is, who it serves, what it does, and why it does what it does, with a focus on the future? Select one: a. Marketing b. Tactical planning c. Strategic planning d. Environmental scanning e. SWOT analysis

Strategic planning

BruceCo is a small coffee company. They pride themselves on being friendly. Every employee is trained to greet their regular customers by name and the employee gets a bonus if a customer says something nice about the service. As a result, BruceCo's customers are very loyal. In terms of a SWOT analysis, this would be considered a (n) ________ for BruceCo? Select one: a. Opportunity b. Weakness c. Strength d. Threat e. Point of difference

Strength

Alexis is the furniture division sales manager for a textile (cloth) manufacturing company. He has a team of 15 salespeople who call on 200 customers regularly over the course of the year. These customers account for 85% of Alexis companys sales and buy 80% of the textiles used for furniture in this country. Alexis is likely to use the __________ method to forecast demand? Select one: a. Test market b. Chain ratio c. Delphi Method d. Market Factor Analysis e. Survey of buyer intentions

Survey of buyer intentions

If I were scanning the _____________ environment, I would be interested in the trend where businesses are experimenting with self-driving cars? Select one: a. Technological b. Political/legal c. Socio-cultural d. Natural e. Competitive

Technological

The ____________ component of the external macro-environment deals with inventions or innovations from applied science or engineering research? Select one: a. Competitive b. Technological c. Political/legal d. Economic e. Socio-cultural

Technological

What do we mean when we speak of a "defensible" decision? Select one: a. That the decision process was documented so that blame could be assigned to the appropriate person if things went wrong. b. A short term decision that won't have any significant impact, but will buy you time to make a better decision in the future. c. That the decision was necessary in light of recent competitor actions. d. When there are more than two possible alternatives, you need to rank order the choices and then decide between the top two. e. That the decision incorporated all of the relevant information available at the time the decision was made.

That the decision incorporated all of the relevant information available at the time the decision was made.

What do we mean when we speak of a "defensible" decision? Select one: a. When there are more than two possible alternatives, you need to rank order the choices and then decide between the top two. b. That the decision was necessary in light of recent competitor actions. c. That the decision incorporated all of the relevant information available at the time the decision was made. d. A short term decision that won't have any significant impact, but will buy you time to make a better decision in the future. e. That the decision process was documented so that blame could be assigned to the appropriate person if things went wrong.

That the decision incorporated all of the relevant information available at the time the decision was made.

What is a major disadvantage of the market factor analysis method of forecasting? Select one: a. It only works in industrial markets. b. It is a very difficult method to use effectively. c. In order to use it, there has to be a known market factor that correlates with your product's sales. d. You can only use it to generate short-term (1 year or less) forecasts. e. The factors associated with a market change each season.

The correct answer is: In order to use it, there has to be a known market factor that correlates with your product's sales.

What is the relationship between a SWOT analysis and an environmental scan? Select one: a. The environmental scan evaluates external factors in terms of opportunities and threats while the SWOT analysis evaluates internal factors in terms of strengths and weaknesses. b. The environmental scan deals with issues that affect the organization specifically while the SWOT deals with critical issues whether or not they affect the organization. c. The environmental scan identifies issues outside of the organization while the SWOT analysis evaluates internal strengths and weaknesses. d. The environmental scan deals with strategic issues while the SWOT analysis deals with tactical issues e. The environmental scan identifies issues that are relevant to the strategic planning process; the SWOT analysis evaluates key issues in terms of the organizations strengths and weaknesses.

The environmental scan identifies issues that are relevant to the strategic planning process; the SWOT analysis evaluates key issues in terms of the organizations strengths and weaknesses.

Which of the following statements about an organization's mission statement is FALSE? Select one: a. The organization's stakeholders should be aware of the mission statement. b. The mission statement should be specific enough to allow managers to determine whether or not a proposed strategy is appropriate for the organization. c. The mission statement is something that only applies at the corporate level d. A mission statement is frequently perceived as being inspirational e. The mission statement should be vague enough to allow managers to respond to changes in customers or markets.

The mission statement is something that only applies at the corporate level

If you can't live with the consequences of your ___________ scenario, don't implement the plan? Select one: a. Worst case b. Most likely c. Best case d. Zombie apocalypse e. Least Likely

Worst case

BruceCo planned to introduce a new line of herbal coffees in its coffee shops. Using the chain ratio method, they estimated they would have 300 people walk through the door every day and that 1/3 of these people would notice a sign advertising the new coffee and ask about it. If the price were the same as its regular coffee, they estimated half of the people would try the new blend. If the price were higher than the regular coffee, they estimated only one out of 10 would request the new blend. The goal was to sell 50 cups of the new blend each day. Which of the following would be a diagnostic measure associated with the plan? Select one: a. The number of cups of the new blend sold each day. b. The number of people who walked through the store each day c. All of these are diagnostic measures for this plan. d. The price of the regular blend of coffee e. The number of people who don't buy any coffee at all.

The number of people who walked through the store each day

Which of the following is a major disadvantage of the market testing approach to forecasting. Select one: a. Test markets can only provide short-term (1 year or less) market forecasts.. b. It only works in markets where demand is relatively stable. c. Tests markets for new products tend to have relatively short-term (1 year or less) forecasts. d. The time it takes to conduct the test market may put you at a competitive disadvantage in the marketplace. e. Test markets only work in markets where demand fluctuates wildly (high volatility).

The time it takes to conduct the test market may put you at a competitive disadvantage in the marketplace

When developing contingency plans, the ____________ scenario assumes that everything that could go either right or wrong goes wrong? Select one: a. Most likely b. Book case c. Worst case d. Best case e. Least Likely

Worst case

One of the reasons there is confusion between the marketing plan and the business plan is that Select one: a. The marketing plan is a subset of the business plan b. These are all reasons why there is confusion between the marketing plan and the business plan for an organization? c. For a marketing organization the marketing plan and the business plan may be the same thing. d. Most business plans address key marketing issues such as sales and customers. e. Both the marketing plan and the business plan cover the same ground, but the business plan addresses non-marketing issues as well.

These are all reasons why there is confusion between the marketing plan and the business plan for an organization?

Which of the following is a reason why environmental scans are so important to marketing managers. Select one: a. Because technology is no longer changing rapidly. b. They can help you avoid Marketing Myopia. c. Because you need an environmental scan in order to make a good decision. d. Because marketers are expected to perform a boundary-spanning function in an organization. e. Keeping up with the news and following a variety of blogs are important ways to monitor events.

They can help you avoid Marketing Myopia.

In the United States, industries can choose to regulate themselves if there is no government regulation of that industry. Select one: True False

True


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