Principles of Marketing Final Exam

Which of the following statements is most likely true of public relations? a. It can have the same impact on public awareness as advertising at much lower costs. b. It forms a huge portion of the overall marketing budget of most large firms. c. It requires participating companies to pay for media space or time. d. It is always handled by a third-party agency hired by the firm.

a. It can have the same impact on public awareness as advertising at much lower costs.

Advertisers are often concerned with the noise level in a medium. The medium that is assumed to have the lowest noise level is: a. direct mail b. magazines c. newspaper d. radio

a. direct mail

Claritas uses hundreds of demographic variables in its PRIZM system when classifying residential neighborhoods. This system breaks down over 250,000 neighborhood areas in the United States into 66 types based on consumer behavior and lifestyle. Each of the types has a name that theoretically describes the type of people living there, such as Upward Bound, Boomtown Singles, and Monday and Brains. PRIZM is an example of _____________. a. geographic segmentation b. demographic segmentation c. behavioral segmentation d. gender segmentation

a. geographic segmentation

The management of two Panizza restaurants have an ongoing disagreement over the discount rate given to students from the local high school. This is an example of ____________ conflict. a. horizontal b. intensive c. selective d. vertical

a. horizontal

______________ becomes more important as competition increases. With this type of advertising, a company's objective is to build selective demand. a. persuasive advertising b. reminder advertising c. institutional advertising d. informative advertising

a. persuasive advertising

When Microsoft introduced its Windows NT network operating system, it gave buyers free Web-server software. At the same time, Netscape was trying to sell similar Web-server software for $4,999. Once Microsoft got a lion's share of the market, and Netscape's market share declined substantially, Microsoft began charging an above-market price for its Web-server software. Many people thought Microsoft was guilty of: a. predatory pricing b. price discrimination c. price skimming d. price fixing

a. predatory pricing

South Africa's Competition Commission accused South African Airways of conspiring with its partner, Germany's Lufthansa, to set prices on flights between Cape Town, Johannesburg, and Frankfurt. As a result, the two airlines were charged with: a. price fixing b. predatory pricing c. price discrimination d. bait pricing

a. price fixing

Which of the following is the first step in the personal selling process? a. prospecting and qualifying b. handling objections c. presentation and demonstration d. follow-up

a. prospecting and qualifying

A product in the maturity stage will most likely require ____________ advertising. a. reminder b. informative c. comparative d. persuasive

a. reminder

An airline traveler discovers that the passenger in the seat next to hers paid 70% of the price she paid for her ticket. Is this a violation of the Robinson-Patman Act on the part of the airline? a. No, because the traveler only discovered the price difference accidentally. b. No, because the traveler could have gotten that same fare by booking on a different day. c. Yes, because all the seats arrive at the same destination, so they should be priced equally. d. Yes, because the other passenger's discount must have been negotiated illegally.

b. No, because the traveler could have gotten that same fare by booking on a different day.

Which of the following is true about the customer sales force structure? a. Each salesperson is assigned to an exclusive geographic area and sells the company's full line of products or services to all customers in that territory. b. Separate sales forces are set up for different industries, serving current customers versus finding new ones, and serving major accounts versus regular accounts. c. Customer sales force structures a combination of territorial sales force structure and product sales force structure. d. Salespersons specialize in only a particular product line as the company produces numerous and complex products.

b. Separate sales forces are set up for different industries, serving current customers versus finding new ones, and serving major accounts versus regular accounts.

Many marketers use the self-concept premise that people's possessions contribute to and reflect their identities - that is, "we are what we consume." According to this premise, consumers ____________. a. are affected by opinion leaders b. buy products to support their self-images c. conduct primary research d. rarely identify with brand personalties

b. buy products to support their self-images

Which of the following is a major disadvantage of a multichannel system? a. fewer domestic sales b. channel conflict c. declining employee morale d. less net profit

b. channel conflict

To measure the ___________ effects of an ad after is has aired, the advertiser can evaluate how the ad affected consumer recall, product awareness, and preference. a. continuity b. communication c. profit d. sales

b. communication

Which of the following is an advantage of adding new channels in a multichannel distribution system? a. limiting marketing complexity b. expanding sales and market coverage c. decreasing marketing needs and costs d. reducing control over the system

b. expanding sales and market coverage

Robin works in a manufacturing company in Ohio. She sells products and handles customer requests via the company's online live chat feature. In her company, Robin is most likely a part of the __________. a. product design team b. inside sales force c. executive management d. outside sales force

b. inside sales force

_____________ is distribution aimed at maximum market coverage. It is used for many convenience goods and supplies that need to be available in every outlet where the potential customer might want to buy them. a. horizontal channeling b. intensive distribution c. exclusive distribution d. selective distribution

b. intensive distribution

VIS jacket sets a high price for a new product with the intention of reducing the price in the future. It is using the __________ pricing strategy. a. market penetration b. market-skimming c. competitive d. cost-plus

b. market-skimming

Which of the following is a major tool used by PR professionals? a. market penetration b. news c. standardized global advertising d. product packaging

b. news

Recent research of cell phone features (e.g. calendar, push-to-talk, text messaging) used a two-dimension ____________ with the axes ranging from low-to-high technological advancement and high-entertainment to high utility to show how the products are perceived by customers. a. predictive model b. positioning map c. product location d. target market chart e. product differentiation graph

b. positioning map

Johnson Business Solutions maintains one sales force for its copy machines and a separate sales force for its computer systems. Johnson Business Solutions utilizes a(n) ________________. a. consumer sales force structure b. product sales force structure c. digital marketing system d. territorial sales force structure

b. product sales force structure

For which of the following products would the intensive distribution strategy most likely be used? a. luxury cars b. soft drinks c. furniture d. lawn mowers

b. soft drinks

Sara Lee, the maker of Ball Park franks, has decided to introduce its new Ball Park hot dog buns in a limited market consisting of only four cities and to closely monitor the reactions of potential customers to the product and marketing program. Sara Lee is going to use: a. discontinuous innovation b. test marketing c. laboratory testing d. profitability analysis

b. test marketing

_____________ are society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. a. Social networks b. Reference groups c. Social classes d. Universal cultures

c. Social classes

During the __________________ stage of the new product development process, production starts, inventories are built up, the product is shipped to distribution points, the sales force is trained, and advertising and promotion begin. a. product prototyping b. product testing c. commercialization d. market analysis

c. commercialization

You Listen, We Mix is a small company that uses a marketing strategy in which its limited resources are employed to target a large share of two small market segments. COF Realty most likely uses which of the following marketing strategies? a. individual marketing b. mass marketing c. concentrated marketing d. one-to-one marketing

c. concentrated marketing

The phase of the product life cycle in which healthy profits usually begin to appear is the ____________ stage. a. maturity b. introductory c. growth d. decline

c. growth

A penetration pricing strategy tends to be most effective: a. under unitary conditions b. when the company can only perform small production runs c. in price-sensitive markets d. when demand is relatively inelastic

c. in price-sensitive markets

For which of the following would a company use an exclusive distribution strategy? a. chewing gum b. soft drinks c. luxury cars d. newspapers

c. luxury cars

The process by which people select, organize, and interpret stimuli into a meaningful and coherent picture is called: a. retention b. comprehension c. perception d. cognitive adaptation

c. perception

Melissa Price is a member of the sales force at Urban Fashions, a Houston-based manufacturer women's apparel. Melissa is preparing for a first meeting with a wholesaler who is a potential customer. She is learning as much as she can about her prospect and his organization. Melissa is in the ____________ step of the personal selling process. a. prospecting b. follow-up c. preapproach d. qualifying

c. preapproach

After determining its advertising objectives, a company's next step in developing an advertising program is to ________________. a. develop a message strategy b. determine the media vehicle c. set an advertising budget d. evaluate the advertising campaign

c. set an advertising budget

Which of the following is a disadvantage of using a differentiated marketing strategy? a. customer loyalty is negatively impacted and difficult to obtain b. product safety decreases c. the costs of doing business increase d. generates far lower sales compared to an undifferentiated marketing strategy

c. the costs of doing business increase

Which of the following statements about handling objections is true? a. A professional salesperson should not anticipate objections. b. Objections should not be used to close the sale. c. A good salesperson dreads having to handle sales objections. d. A salesperson should view objections as requests for more information.

d. A salesperson should view objections as requests for more information.

Danita is in charge of new business development for her advertising agency. She recently made a sales presentation the administration of Northwest Medical System to discuss the creative approaches her agency would use to differentiate Northwest Medical from its competition. Danita ended the presentation by asking, "When would you like our firm to begin working on your new brand awareness campaign?" In which state of the selling process would such a question most likely be asked? a. Handling rejection b. Qualifying the prospect c. Follow-up d. Closing the sale

d. Closing the sale

Henry would like to have Phil for a roommate. They seem to get along fine and have many common interests. However, Phil smokes and Henry does not. The eventual solution to this problem is that Phil agrees to smoke outside the apartment and tries to quit by using nicotine patches. Henry agrees not to complain about the smell on Phil's clothing and to be supportive of his attempts to quit smoking. This illustration is an example of which of the following? a. classical conditioning theory b. social judgement theory c. instrumental conditioning theory d. balance theory

d. balance theory

Calypso Motors recently rolled out its hatchback, Proteus. Proteus combines the attractiveness of a luxury car with the excellent agility of a sports car. Calypso Motors is confident that Proteus will appeal to both sports car enthusiasts as well as the luxury segment. Which of the following types of market segmentation is evident here? a. income segmentation b. gender segmentation c. geographic segmentation d. benefit segmentation

d. benefit segmentation

Consumer perceptions of the product's value set the ____________ for prices. a. variable cost b. floor c. demand curve d. ceiling

d. ceiling

Right after closing, Joshua, a senior sales manager at Halcyon Technologies called up the customer to ensure that she was satisfied with Halcyon's products. By calling the customer, Joshua also wanted to ensure repeat business. In this instance, Joshua is in the ____________ stage of the selling process. a. handling objections b. preapproach c.prospecting d. follow-up

d. follow-up

Billboard advertisements often have to compete for a driver's attention with traffic, passengers, radio, or other billboards. Billboard advertising would be described as: a. lacking any geographic selectivity b. the most flexible advertising medium c. having a low noise level d. having a high noise level

d. having a high noise level

When Procter & Gamble (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. persuasive advertising b. reminder advertising c. comparative advertising d. informative advertising

d. informative advertising

TelStar Plastics is in the process of dividing a market into distinct groups of buyers with different needs, characteristics, and behaviors who might require separate products or marketing programs. Which of the following is this firm doing? a. market diversification b. market penetration c. market development d. market segmentation

d. market segmentation

BellEZza sets a low price for a new product in order to attract a large number of buyers and a large market share are using the __________ strategy. a. exclusive pricing b. market-skimming pricing c. cost-plus pricing d. market-penetration pricing

d. market-penetration pricing

A ____________ is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. a. product line b. resource bank c. consumer base d. marketing channel

d. marketing channel

Which stage in the Product Life Cycle normally lasts longest and poses strong challenges to marketing managers? a. decline b. growth c. introduction d. maturity

d. maturity

Atlas Imports and Exports sells products directly to customers via the Atlas Web site, and through local retailers as well. Which of the following is evident here? a. horizontal marketing system b. conventional distribution channel c. corporate vertical marketing system d. multichannel distribution system

d. multichannel distribution system

SRI Consulting has developed a typology of consumers based on values and lifestyles (VALS). What kind of segmentation is used by VALS? a. geodemographic b. geographic c. benefit d. psychographic

d. psychographic

You receive a report that 68% of your target market has been exposed to your ad campaign during a given period of time. Which of the following aspects of media selection is represented by this information? a. engagement b. impact c. frequency d. reach

d. reach

Which of the following is most likely an objective of informative advertising? a. encourage customers to switch brands b. change customer perception of brand value c. keep the brand in customer minds during off-seasons d. tell the market about a new product

d. tell the market about a new product

When KFC came into conflict with its franchisees over the brand's "Unthink KFC" repositioning, which emphasized its grilled chicken over its traditional Kentucky fried chicken, KFC experienced ___________ conflict. a. horizontal b. exclusive c. intensive d. vertical

d. vertical