Final Exam
Marketing Management (Fall, 2007)
【碩士班－周善瑜老師】
系級___________ 學號_____________ 姓名______________ 分數
_____________
所有答案請務必填入答案欄或指定位置中，否則不與計分
I. True-False Questions【是非題】(30%) (3 points per question)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
F
F
F
T
T
F
T
T
T
T
II. Multiple Choice Questions【單選題，寫成多選不給分】(30%) (3 points per question)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
d
a
c
c
b
c
e
e
d
d
IV. Essay (41%+ Bonus 8%)
1. (8%) (i) □ T ■ F
(ii) □ T ■ F
(iii) □ T ■ F
(ii) ■ T □ F
(iii) □ T ■ F
(iv) □ T ■ F
2. (8%) (i) □ T ■ F
3. (10%+ Bonus 5%)
(i)(2%) : _price=1, profit=2__(只要寫出price即給分)
(ii)(2%): P1=1.5, P2b=1.5, P2n=1, profit=1.6<2(利潤低於(i)),(price部分只要寫
出P1=1.5, P2n=1即給分)
(iii)(Bouns 2%): When there are so many lows, even if consumer are all
myopic, under price conditioning the loss of first purchases from lows is too large
to be outweighed by the higher price (VH) charged to highs in both purchases.
(iv)(6%) (a) □ T ■ F
(b) ■ T □ F
(c) □ T ■ F
(d) ■ T □ F
(e) □ T ■ F
(f) ■ T □ F
(iii)(Bouns 3%): Given that there are so many lows that setting the price at VL is
optimal under uniform pricing, price conditioning sacrificed the purchase of
lows on their first visit (by setting P0= VH) when it should not, thus reducing its
profit.
(Remark: More generally, when highs are so many ( α ≥
VL
VH
) that setting the price at
VH is optimal under uniform pricing, then price conditioning sacrifices the high
margin (when it should not) from highs for their second purchases by setting Pb=VL).
Final Exam
Marketing Management (Graduate School)
Shan-Yu Chou
Fall, 2007
I. True-False Questions (30%, 3 points per question)
1. When a manufacturer adopts Resale Price Maintenance (RPM), the competition
among dealers will be focused on price instead of services.
2. Two-sided argument is more suitable when the target audience is loyal to the
promoted product.
3. Overpositioning happens when consumers have slightest ideas about the position of
the promoted product.
4. The case Zara shows that depending on the nature of the industry, it is not always
necessary for a firm to source globally to the cheapest source in order to have
competitive advantages.
5. Communication tends to produce more effective shifts on peripheral issues than on
issues that lie at the core of the recipient’s value system.
6. The case of Zara indicates that Zara should increase its supply chain efficiency and
thus strengthen its competitive advantage by shipping its products by other cheaper
ways instead of air freight.
7. When the proportion of consumers who make their purchase decisions on point of
sales is increasing, the power of retailers relative to manufacturers will be
increasing.
8. The manufacturer cannot eliminate all functions performed by intermediaries by
adopting a zero-order channel.
9. When Bic (with a line of ballpoint pens) introduced Bic disposable lighters, it is a
brand extension.
10. When an industry has high entry barriers and low exit barriers, it implies high and
stable returns.
II. Multiple Choice Questions (30%, 3 points per question)
1.
A company might stretch its product line downward because it:
(a) is attracted to the higher margins available with this strategy
(b) wants to demonstrate to its stakeholders that it is capable of producing at all
spectrums of the market
(c) wants to abandon the high end of the market and abandon plans for the
extension to cannibalize sales
(d) wants to tie up lower-end competitors who might otherwise try to move
upmarket
(e) wants to engage in niche marketing
2. A company considers cutting the price of his product 5% to stimulate demand.
Suppose the current sales are 8,000 units and price is $2000. In addition, the
variable cost is $900 per unit.
How much does the sales quantity have to increase in order to make the 5% price
discount profitable?
(a) 800 units
(b) 9.1%
(c) 727 units
(d) None of the above
3. Which one of the following services is least subject to free-riding among retailers?
(a) the provision of fitting room
(b) carrying many brands and different models
(c) free shipping delivery for large purchases
(d) point-of-purchase services from sales people
(e) None of the above
4. Which one of the following statements about the emergence of the Internet
channel is NOT true?
(a) It makes it easier for consumers to search.
(b) It enables firms to adjust its prices more easily.
(c) It must reduce the seller’s profit given the information transparency on the
Net.
(d) It allows firms to segment its market to a refined level.
(e) The prices on the Internet may differ even for standard products.
5. If a market challenger has fewer resources than the market leader, its best attack alternative
for exploiting competitor weaknesses is to ________.
a. mount a frontal attack
b. mount a flank attack
c. never attack in the first place
d. always delay until another day
e. none of the above
6. A two-sided advertising message is generally more effective than a one-sided
message:
(a) with younger, less-educated audiences
(b) with audiences who are less likely to hear counterarguments
(c) with audiences who are predisposed to disagree with the message
(d) for products that have no negative connotations
(e) for products that have a high degree of brand loyalty
7. Suppose you like Dr. Pepper, but dislike Garth Brooks who is a spokesperson for
Dr. Pepper. According to the principle of congruity, you will:
(a) disregard the advertising completely
(b) like Dr. Pepper less and maintain your original feelings about Garth Brooks
(c) like both Dr. Pepper and Garth Brooks more
(d) continue to like Dr. Pepper and will not change your feelings about Garth
Brooks
(e) like Dr. Pepper less and like Garth Brooks more
8. Which one of the following statements about “Madison and Vine” is true?
(a) Product placement is one kind of advertainment.
(b) Branded entertainment is to make ads themselves so entertaining that people
want to watch them.
(c) Advertainment is to make the brand an inseparable part of some other form
of entertainment.
(d) a, b, c
(e) None of the above
9. Promotional tools vary in cost effectiveness at different stages of buyer readiness.
What promotional tools are most important when the buyer is in the awareness
stage?
(a) advertising and personal selling
(b) personal selling and sales promotion
(c) publicity and personal selling
(d) advertising and publicity
(e) sales promotion and advertising
10. If a manufacturer emphasizes pull strategies, which one of the following
promotion tools will Not be used frequently?
(a)
(b)
(c)
(d)
(e)
Coupons issued directly to consumers
Brand image advertising
Persuasive advertising
local advertising allowances to dealers
all of the above
III. Essays (41%+Bonus 5%)
1. (8%) A marketer considers conducting bundle pricing to segment the market. After
some marketing research, it obtains the following information about four typical
consumers’ reservation prices (the highest prices they are willing to pay) for its two
products. Each consumer maximizes its consumer surplus and will buy at most one
unit for each product.
Consumer
Reservation price
for Product 1
Reservation price
for Product 2
Total
A
30
90
120
B
50
60
110
C
60
50
110
D
90
30
120
Suppose that the unit (variable) cost for each product is 40 and each consumer
represents a market of equal size.
For each of the following statements, judge whether it is True or FALSE?
(i)
(ii)
(iii)
(iv)
When choosing the pure bundling strategy, the firm should set the bundle
price at 120.
The optimal prices for product 1, product 2, and the bundle under mixed
bundling are: P1=90, P2=90 and PB=110.
Pure bundling always results in strictly less profit than mixed bundling
given it uses only one price to segment the whole market.
Under pure component strategy, the optimal price for both products will
be 60.
2. (8%) One PC manufacturer faces customers with extremely high brand loyalty
(and thus can be treated as a monopolist). Its customers can be segmented into two
markets: the segment of individual users and the segment of corporate users, which
account for 3/4 and 1/4 of the total market, respectively.
Segments
Valuation to the low-end
product
Valuation to the high-end
product
Individual users (with
proportion 3/4)
1/4
1/2
Corporate users (with
proportion 1/4)
1/2
1
The unit costs for the high-end product and the low-end product equal 1/2 and 1/8,
respectively.
Derive the optimal prices for the low-end product and the high-end one so that the
corporate users will buy the high-end product and the individual users will buy the
low-end product.
For each of the following statements, judge whether it is true or false.
(a) The firm should always adopt segment marketing and produce two products
targeted to the two segments regardless of the size of the segment of corporate users.
(b) With the increase in the proportion of corporate users, the firm may drop
individual users and focus on the segment of corporate users.
(c) The firm should not create its cannibalization problem by introducing the low-end
item given the current market structure (as described by the above table).
3. (10%+ Bonus 5%) A monopolistic online marketer faces the following two
segments of consumers who consider buying its product in two periods ONLY:
Segments
Valuation
Proportion
Highs
1.5
0.3
Lows
1
0.7
(2%) (i) Suppose the marketer adopts uniform pricing (charging the same price in two
periods). What will be its optimal price?
(2%)(ii) Suppose all consumers are myopic (i.e., not recognizing the price they face
on the next purchase will depend on their behavior today).
The marketer decides to condition its prices on customer purchase history by first
charging a high price P1 to everyone and then offering a low price P2 only to those
who did not purchase. What will be the optimal prices and the associated profit in this
case? Compare the profit with (i).
(Bonus 2%) Explain why or why not the profit is higher than the profit in (i).
(Provide intuitions not computations.)
(iii) Suppose that all consumers are strategic (recognizing the price they face on the
next purchase will depend on their behavior today). Suppose the marketer decides to
condition its prices on customer purchase history by taking into account consumer
strategic behavior. To be precise, it will set three prices (P0, Pb , Pn), for consumers
having no cookie (P0 ), those with the cookie indicating they bought on a prior visit
(Pb ), and those with the cookie indicating they did not buy on a prior visit (Pn ),
respectively. For each of the following statements, judge whether it is true or
false.(6%)
(a) The marketer should set Pb =1.5 so that it can extract the surplus of high-valuation
consumers on their second purchase.
(b) The marketer should set Pn =1 to extract the surplus of low-valuation consumers
on their second visit.
(c) Expecting the price pair (Pb =1.5, Pn =1) all strategic high-valuation consumers
would buy on their first visit.
(d) To induce previous high-valuation customers to buy on their second visit, Pb and
Pn should be set both at $1.
(e) The associate profit under the optimal price conditioning is greater than the
optimal profit under uniform pricing.
(f) If the marketer sets (P0,=1.5, Pb =1.5, Pn=1), then all consumers will buy only once
and pay the price equal to 1.
(Bonus 3%) Why or why not can price conditioning increase the firm’s profit?
(Provide intuitions not computations.)
4. (15%) For the case Pepsi: Promoting Nothing, conduct STP analysis (segmentation,
targeting and Positioning) for its product Aquafina. That is, you have to do the
following:
(i) Segment the market for Aquafina
(ii) Choose the target market for Aquafina
(iii) Positioning Aquafina
(Justify your answers with space provided.)