Marketing - Practice Final Exam
Created: 3:52:29 PM EST
Student: _________________________________________________________
1. Attorneys fees, entrance fees, train fares, and organization dues are all:
A.
premiums.
B.
bartering tools.
C.
mediums of exchange.
D.
synonyms for price.
E.
examples of liquidity.
2. From a marketing viewpoint, __________ is money or other considerations (including goods and services)
exchanged for the ownership or use of a good or service.
A.
value
B.
price
C.
barter
D.
a contract
E.
a tariff
3. The price equation formula is price equals __________ minus discounts and allowances plus extra fees.
A.
salaries
B.
commissions
C.
trade-ins
D.
list price
E.
taxes
4. Tara is enrolled for spring semester at college. The tuition is $6,000 but she has a scholarship for $1,000 as
well as a work study grant of $1,500. The health fees and student activity fees are $150 for the semester.
What is the actual price Tara is paying for the spring semester?
A.
$2,500
B.
$2,650
C.
$3,650
D.
$5,150
E.
$6,150
5. The ratio of perceived benefits to __________ is called value.
A.
price
B.
prestige value
C.
value-added pricing
D.
value analysis
E.
perceived costs
6. To increase value marketers may:
A.
increase price and increase benefits
B.
decrease benefits
C.
decrease price and increase benefits
D.
decrease price and decrease benefits
E.
all of the above
7. Creative marketers engage in value-pricing, the practice of simultaneously increasing product and service
benefits and__________.
A.
revenue sharing
B.
decreasing product and service benefits
C.
analyzing benefits
D.
maintaining or decreasing price
E.
decreasing cost
8. To calculate __________, you would compute: (unit price x quantity sold) - total cost.
A.
total revenue
B.
profit
C.
marginal revenue
D.
average revenue
E.
break-even point
9. Which of the following is NOT one of the six major pricing objectives discussed in the text?
A.
profit
B.
unit volume
C.
break-even
D.
survival
E.
market share
10. __________ is the ratio of the firm's sales revenues or unit sales to those of the industry.
A.
target return
B.
marginal profit
C.
unit volume
D.
market share
E.
profit
11. Which of the following is true with regard to the product life cycle as a pricing constraint?
A.
The older a product is the higher the price that can usually be charged.
B.
The later in the product life cycle the product is, the higher the price that can usually be
charged.
C.
Prices may rise later in the product's life cycle if nostalgia is a factor.
D.
Prices may be lower later in the product's life cycle if the product is a fad.
E.
All of the above are true with respect to the product life cycle as a pricing constraint.
12. The maximum quantity of products consumers will buy at given price is shown by:
A.
a demand curve.
B.
a price constraints.
C.
a break-even point.
D.
price lining.
E.
a marginal revenue curve.
13. A shift in the demand curve is illustrated by which of the following?
A.
As the price is lowered, the quantity demanded increases, assuming all else stays the same.
B.
As the price is raised, the quantity demanded increases, assuming all else stays the same.
C.
As the amount of advertising increases, the quantity demanded increases, assuming all else
stays the same.
D.
As the amount of advertising increases, the price decreases, assuming all else stays the same.
E.
As consumer incomes rise, the price decreases, assuming all else stays the same.
14. The change in total revenue obtained by selling one additional unit is called:
A.
demand revenue.
B.
median revenue.
C.
average revenue.
D.
marginal revenue.
E.
marginal cost.
15. At a price of $3 each, SHΛPE magazine sells 1.25 million copies of its magazine targeted to young women
seeking a healthier lifestyle. If the price per issue is increased to $3.25 each, only 1 million copies will be
sold. Fixed costs are $1 million and unit variable costs are $0.50 per magazine. For the information
provided here, what is SHΛPE magazine's total revenue obtained at the lower price?
A.
B.
C.
D.
E.
$3,750,000
$3,000,000
$2,125,000
$1,625,000
$675,000
16. Which of the following pricing constraints will most likely affect the new Airbus Industries A380 airplane
being built to carry more than 550 passengers?
A.
the use of pricing skimming
B.
the possible permanent decrease in the number of air passengers due to September 11, 2001
events
C.
a desire to use social responsibility pricing objectives
D.
a need to eliminate all fixed costs
E.
a newly developed code of ethics
17. Other things equal, if a firm finds the demand for one of its products is inelastic, it can INCREASE its total
revenues by:
A.
raising its price.
B.
lowering its price.
C.
reducing fixed costs.
D.
reducing variable costs.
E.
reducing both fixed and variable costs.
18. Several companies produce latex gloves that are used in a variety of different industries. If one of the glove
manufacturers decreases its price by just a few percentage points, it will result in a significant increase in
quantity demanded. The demand for latex gloves is:
A.
synergistic.
B.
elastic.
C.
inelastic.
D.
holistic.
E.
entropic.
19. Elastic demand exists when a(n):
A.
a small percentage decrease in price produces a smaller percentage increase in quantity
demanded and total revenue falls.
B.
a small percentage decrease in price produces a larger percentage increase in quantity
demanded and total revenue increases.
C.
an increase in price causes a larger increase in quantity demanded and total revenue falls to
zero.
D.
the quantity demanded remains the same regardless of level of price and total revenue is
unchanged.
E.
a small percentage decrease in price produces a smaller percentage decrease in quantity
demanded and total revenue increases.
20. The sum of the expenses of a firm that is stable and does not change with the quantity of the product that is
produced and sold is called:
A.
fixed cost.
B.
variable cost.
C.
total cost.
D.
marginal cost.
E.
inelastic costs.
21. Rents, executive salaries, and insurance are examples of typical:
A.
variable costs.
B.
fixed costs.
C.
dividends.
D.
E.
liquidity payments.
total costs.
22. Which of the following would be an example of a variable cost for a publication like SHΛPE magazine that
is targeted to young women seeking a healthier lifestyle?
A.
increase in women in targeted demographics
B.
salary of publisher
C.
rent for parking deck used by employees
D.
paper and ink
E.
advertising purchased by new accounts
23. Marginal cost is the change in total cost that results from:
A.
reducing the total number of units produced.
B.
increasing the number of units produced by fifty percent.
C.
increasing the number of products in a product line.
D.
producing and marketing one additional unit of product.
E.
eliminating a brand from a product line.
24. The quantity at which total revenue and total cost are equal and where profit starts to occur is called the:
A.
break-even point.
B.
point of maximum profit.
C.
coverage amount.
D.
incremental return quantity.
E.
shadow price quantity.
25. The owner of a small restaurant that sells take-out fried chicken and biscuits pays $2,500 in rent each
month, $500 in utilities, $750 interest on his loan, insurance premium of $200, and advertising on local
buses $250 a month. A bucket of take-out chicken is priced at $9.50. Unit variable costs for the bucket of
chicken are $5.50. How many small buckets of chicken does the restaurant need to sell to break-even?
A.
988 buckets
B.
1,000 buckets
C.
1,050 buckets
D.
3,150 buckets
E.
4,200 buckets
26. Ace Shoe Company sells heel replacement kits for men's shoes. It has fixed costs of $9 million and unit
variable costs of $5 per pair. Ace is considering a switch from manual labor to an automated process. New
equipment would cost an additional $4 million per year while lowering variable costs by $3 per shoe repair
kit. How many kits would Ace have to sell at $17 per pair to make $2 million in profits in the next year with
the automated process?
A.
169,231 kits
B.
666,667 kits
C.
705,883 kits
D.
800,000 kits
E.
1,000,000 kits
27. You are president of a manufacturer of small electronic appliances. You want to reduce your break-even
quantity. Other things equal, you can do this by:
A.
increasing the quantity sold, while keeping price unchanged.
B.
reducing marginal revenue.
C.
reducing unit variable cost.
D.
increasing fixed cost.
E.
doing all of the above.
28. Setting the highest initial price that customers really desiring the product are willing to pay is:
A.
skimming pricing.
B.
C.
D.
E.
penetration pricing.
price lining.
odd-even pricing.
prestige pricing.
29. A skimming pricing policy is likely to be most effective when:
A.
consumers perceive your product to be similar to other products on the market.
B.
a lower price will have a major effect on reducing unit costs.
C.
competitors will be attracted to the market due to the potential for high sales revenues.
D.
consumers tend to be price sensitive.
E.
a high initial price will not attract competitors
30. Penetration pricing is intended to appeal to which market?
A.
highly selective quality-seeking consumers
B.
price-insensitive markets
C.
the mass market
D.
specialty goods markets
E.
the same markets as skimming pricing
31. Talbot's sells women's clothes. A simple tee shirt with the Talbot's label costs $25. If you know you simply
want a tee shirt, you can buy one for $5 at a Family Dollar Store, but it won't have the Talbot's label. What
kind of demand-oriented approach to pricing is being used by this manufacturer?
A.
experience curve pricing
B.
target market share pricing
C.
demand-backward pricing
D.
prestige pricing
E.
flexible pricing
32. You can buy a General Electric dishwasher for $399, or you can buy a similar sized under-the-counter
Bosch brand dishwasher for $989. Since Bosch uses its pricing strategy to project a product image, it is
most likely using __________ pricing.
A.
bait and switch
B.
standard markup
C.
prestige
D.
penetration
E.
cost plus fixed-fee
33. Odd-even pricing is most closely related to:
A.
retailers' perceptions of price.
B.
customers' perceptions of price.
C.
wholesalers' markups.
D.
manufacturers' costs.
E.
cost of product facilitation to market.
34. __________ is the marketing of two or more products for a single "package" price.
A.
Packaged pricing
B.
Loss-leader pricing
C.
Bundle pricing
D.
Tie-in pricing
E.
Multi-product pricing
35. Which cost-based pricing method entails adding a fixed percentage to the cost of all items in a specific
product class?
A.
experience curve pricing
B.
cost plus fixed-fee pricing
C.
demand backward pricing
D.
E.
standard markup pricing
target profit pricing
36. Assume it costs Lady Marion Seafood, Inc. $30 to catch, process, freeze, package, and ship 5-pound
packages of Alaskan salmon. It uses a 60 percent markup on its salmon products and charges customers $48
for a postage-paid vacuum-sealed package. What type of pricing does Lady Marion Seafood use?
A.
target return-on-sales pricing
B.
cost-plus-fixed-fee pricing
C.
standard markup pricing
D.
target profit pricing
E.
customary pricing
37. Customary pricing is:
A.
a pricing method where the price the seller quotes includes all transportation costs.
B.
setting the same price for similar customers who buy the same product and quantities under
the same conditions.
C.
deliberately selling a product below its list price to attract attention to it.
D.
a method of pricing a product based on tradition, standardized channel of distribution, or
other competitive factors.
E.
pricing based on what the market will bear.
38. Loss-leader pricing is:
A.
a pricing method where the price the seller quotes includes all transportation costs.
B.
setting the same price for similar customers who buy the same product and quantities under
the same conditions.
C.
deliberately selling a product below its customary price to attract attention to it.
D.
a method of pricing based on a product's tradition, standardized channel of distribution, or
other competitive factors.
E.
pricing based on intensity of customer demand.
39. When Kroger's, a national supermarket chain, prices soda at $2.09 a six-pack, it is attempting to:
A.
drive its competition out of business.
B.
attract customers in hopes they will buy other products as well.
C.
fill its parking lot so its store will look successful.
D.
help the local bottler dispose of excess soda cans.
E.
circumvent fair trade rulings by the Federal Trade Commission (FTC).
40. A price war involves successive price cutting by competitors to __________ or market share.
A.
decrease return on investment
B.
increase customers awareness
C.
decrease unit sales
D.
decrease variable costs
E.
increase unit sales
41. Four types of price discounts are:
A.
quantity, trade-in, promotional, and cash.
B.
seasonal, trade (functional), cash, and quantity.
C.
quantity, seasonal, promotional, and cash.
D.
cash, trade-in, seasonal, and promotional.
E.
trade-in, promotional, geographic, and functional.
42. Your local instant photocopying service charges 10 cents a copy for copies up to a quantity of 25, 9 cents a
copy for 26 to 100, and 8 cents a copy for 101 or more. What kind of adjustment to list or quoted prices is
the photocopying service using?
A.
bundle pricing
B.
quantity discounts
C.
D.
E.
loss-leader pricing
promotional discounts
everyday low pricing
43. When calculating trade (functional) discounts, the first number in the sequence always refers to the:
A.
the discount to the ultimate consumer.
B.
the manufacturer's percentage cost.
C.
the retail end of the channel.
D.
the channel intermediary closest to the manufacturer.
E.
SKU.
44. A manufacturer estimates that consumers will accept a price of $275 for a snowboard. If the manufacturer
expects to offer trade discounts of 35/15/ 5 to retailers, wholesalers, and agents, respectively, what price will
the manufacturer receive for the snowboard?
A.
$72.37
B.
$99.94
C.
$104.73
D.
$125.00
E.
$144.34
45. Individuals and firms involved in the process of making a good or service available for use or consumption
by consumers or industrial users are considered members of a:
A.
distribution line.
B.
marketing channel.
C.
consortium.
D.
cartel.
E.
distribution mix.
46. A(n) __________ is an intermediary who sells to consumers.
A.
agent
B.
a wholesaler
C.
a retailer
D.
a distributor
E.
any of the above
47. Intermediaries make the selling of goods more efficient by:
A.
maximizing the number of contacts necessary between producer and consumer.
B.
identifying target markets.
C.
reducing manufacturing costs.
D.
minimizing the number of sales contacts between producer and consumer.
E.
eliminating inventory costs.
48. The three basic functions performed by intermediaries are:
A.
accommodating functions, logistical functions, and transactional functions.
B.
implementation functions, accommodating functions, and contractual functions.
C.
contractual functions, facilitating functions, and logistical functions.
D.
facilitating functions, accommodating functions, and implementation functions.
E.
transactional functions, logistical functions, and facilitating functions.
49. Schwan's Sales Enterprises of Marshall, Minnesota, markets a full line of frozen foods in 49 states and parts
of Canada using door-to-door salespeople who sell from refrigerated trucks. This particular method of
distribution is called a:
A.
direct channel.
B.
indirect channel.
C.
facilitated channel.
D.
customer-service channel.
E.
truck jobber channel.
50. Indirect channels for consumer goods:
A.
occur when one firm's marketing channels are used to sell another firm's products.
B.
include producers and end-users dealing directly with each other.
C.
include intermediaries that are between the producer and consumer and perform numerous
channel functions.
D.
are arrangements whereby a firm reaches different buyers by employing two or more
different types of channels for the same basic product.
E.
are accurately described by none of the above.
51. When you order a sweater from an L. L. Bean mail order catalog, what type of marketing channel are you
and the company using?
A.
cash and carry marketing channel
B.
intensive distribution channel
C.
selective distribution channel
D.
indirect marketing channel
E.
direct marketing channel
52. Hart Schaffner & Marx is a producer of men's suits and sports coats that operates 100 menswear stores. Hart
Schaffner & Marx uses:
A.
dual distribution.
B.
forward integration.
C.
backward integration.
D.
horizontal integration.
E.
strategic alliance.
53. When a retailer owns a manufacturing operation, it is called:
A.
forward integration.
B.
backward integration.
C.
vertical integration.
D.
joint venture.
E.
horizontal integration.
54. ___________ arises when one channel member believes another channel member is engaged in behavior
that prevents it from achieving its goals.
A.
Channel conflict
B.
Disintermediation
C.
Cross-docking
D.
Partnership inconsistency
E.
Relationship variance
55. Wal-Mart is a channel power because of their strong image, number of outlets, and purchasing volume. The
source of Wal-Mart's power is:
A.
its economic influence.
B.
its expertise.
C.
its identification with a particular channel member.
D.
its legitimate rights through contracts.
E.
all of the above.
56. The __________ includes advertising, personal selling, sales promotion, public relations and direct
marketing.
A.
promotion channel
B.
communication chain
C.
marketing matrix
D.
promotional mix
E.
media mix
57. __________ is the concept of designing marketing communications programs that coordinate all
promotional activities--advertising, personal selling, sales promotion, public relations, and direct marketing-to provide a consistent message across all audiences.
A.
The promotion channel
B.
The communication chain
C.
The marketing matrix
D.
Integrated marketing communications
E.
The media mix
58. L'Oréal created an advertisement for its Visible Life makeup. The magazine in which the ad for L'Oréal
Visible Lift makeup appeared is a:
A.
communication channel.
B.
message.
C.
decoder.
D.
source.
E.
feedback.
59. Which of the following is NOT a promotional element?
A.
advertising
B.
personal selling
C.
public relations
D.
sales promotion
E.
production line
60. Which of the following types of promotion uses customized interaction?
A.
advertising
B.
personal selling
C.
public relations
D.
sales promotion
E.
publicity
61. Which element of the promotional mix has the inherent weakness of high absolute costs and difficulty in
receiving good feedback?
A.
advertising
B.
personal selling
C.
sales promotion
D.
publicity
E.
direct marketing
62. When Sears places a multiple-page booklet in the local newspaper about its President's Day sale, it is an
example of the use of which element of the promotional mix?
A.
advertising
B.
sales promotion
C.
publicity
D.
personal selling
E.
direct marketing
63. Wasted coverage can most easily be reduced by which of the methods of promotion?
A.
sales promotion
B.
public relations
C.
advertising
D.
public service announcements
E.
personal selling
64. __________ is a short-term inducement of value offered to arouse interest in buying a good or service.
A.
B.
C.
D.
E.
A public service announcement
Publicity
Advertising
Sales promotion
Personal selling
65. You are being influenced by __________ when you redeem a 50-cents-off coupon for Crest toothpaste at
your local supermarket.
A.
advertising
B.
sales promotion
C.
public relations
D.
publicity
E.
personal selling
66. At which stage in the product life cycle would your promotional objective be to persuade the consumer to
buy the product rather than substitutes?
A.
introduction
B.
growth
C.
incubation
D.
decline
E.
maturity
67. At which stage in the product life cycle are discounts and coupons offered to both consumers and
intermediaries to maintain loyal buyers?
A.
introduction
B.
growth
C.
maturity
D.
incubation
E.
decline
68. At which stage of the product life cycle is the least amount of money spent on the promotional mix?
A.
growth
B.
harvesting
C.
maturity
D.
decline
E.
divestment
69. A push strategy is when:
A.
a manufacturer blitzes its wholesalers, retailers, and ultimate consumers with the use of
nationwide promotional and advertising campaigns.
B.
a manufacturer forces a retailer to promote its product by placing national ads in local
newspapers.
C.
a manufacturer directs its efforts in the form of advertising and sales promotions to ultimate
consumers to encourage them to ask their retailer for the product.
D.
a manufacturer directs the promotional mix to channel members to gain their cooperation in
ordering and stocking the product.
E.
the charitable contributions of a firm are tied directly to the customer revenues produced
through the promotion of one of its products.
70. When a manufacturer directs its promotional mix at ultimate consumers to encourage them to ask retailers
for the product, the strategy is called a:
A.
push strategy.
B.
intense strategy.
C.
inertia strategy.
D.
exclusivity strategy.
E.
pull strategy.
71. Allegra is an antihistamine that is only available through prescription, but to create brand awareness, it is
offering people who request information about the product a cushion to use at their favorite sporting event.
Its television ad shows a woman half-heartedly watching some sporting event. The voiceover asks if she is
bored or congested. Next scene, the person is having a great time and is uncongested after taking Allegra.
This use of the same promotional theme throughout a company's promotion is an example of how marketers
use:
A.
media convergence.
B.
niche marketing.
C.
integrated marketing communications (IMC).
D.
marketing management.
E.
marketing by objectives (MBO).
72. Promotional programs are specifically directed to:
A.
source receivers.
B.
diffusers.
C.
encoders.
D.
media convergences.
E.
target audiences.
73. Promotion objectives should possess three important qualities. They should be designed for a well-defined
target audience, be measurable, and:
A.
contain some element of appeal, such as sex, fear, or humor.
B.
be based on clear market research.
C.
stay within clearly defined budgetary constraints.
D.
cover a specified time period.
E.
retain some degree of flexibility.
74. No matter what the specific objective might be, from building awareness to increasing repeat purchases,
promotion objectives should possess three important qualities. They should be designed for a well-defined
target audience, cover a specified time period, and:
A.
rely on fear.
B.
be measurable.
C.
be humorous.
D.
appeal to intermediaries.
E.
be designed to win creative awards.
75. The best approach to promotion budgeting is __________ budgeting method whereby the company
determines its promotion objectives, outlines the tasks to accomplish these objectives, and determines the
promotion cost of performing these tasks.
A.
percentage of sales
B.
competitive parity
C.
all-you-can-afford
D.
objective and task
E.
relative scale
76. Which of the following are benefits of direct marketing for consumers?
A.
They don't have to go to a store.
B.
Buying direct saves time.
C.
They avoid hassles with salespeople.
D.
There is more privacy than in-store shopping.
E.
All of the above are benefits of direct marketing for consumers.
77. A paid advertisement for the Texas Department of Economic Development, Tourism Division invited
readers of a magazine to mail in a postage-paid reply card that was included with the ad, visit the state's
website, or use a toll-free number to request more information about vacation destinations in Texas. The
primary purpose of this ad was as a(n):
A.
direct order fulfillment.
B.
lead generator.
C.
public service announcement.
D.
indirect order consignment.
E.
follower generator.
78. To convey its new capabilities and its transformation to the "synchronized" commerce positioning UPS
needed a(n) __________ campaign.
A.
information
B.
advertising
C.
integrated marketing communications
D.
pricing and promotion
E.
synchronicity
79. __________ is any paid form of nonpersonal communication about an organization, good, service, or idea
by an identified sponsor.
A.
Publicity
B.
Sales promotion
C.
Advertising
D.
Personal selling
E.
Direct marketing
80. Product advertisements focus on selling a good or service and take three major forms. They are:
A.
introductory, comparative, and reminder.
B.
pioneering, competitive, and reminder.
C.
institutional, competitive, and reminder.
D.
introductory, competitive, and reminder.
E.
pioneering, comparative, and reminder.
81. The key objective of a pioneering ad is to:
A.
inform the target market.
B.
identify the target market.
C.
change the target market.
D.
reinforce previous knowledge.
E.
state the position of the advertiser on an issue.
82. The primary purpose of a competitive advertisement is to:
A.
promote a specific brand's features and benefits.
B.
tell people what a product is, what it can do, and where it can be found.
C.
show one brand's strengths relative to those of competitors.
D.
reinforce previous knowledge of a product.
E.
promote the advantages of one product class over another.
83. Competitive product and brand advertising is typically used to:
A.
inform the target market.
B.
identify the target market.
C.
persuade the target market.
D.
reinforce previous knowledge.
E.
state the position of the advertiser on an issue.
84. An ad for Allegra allergy medicine highlights the competitive advantage of Allegra over its primary
competitors Benagryl, Tylenol, and Chlor-Trimeton. This is ad is an example of __________ advertising.
A.
reinforcement
B.
comparative
C.
D.
E.
persuasive
informative
reminder
85. An FTD ad shows a woman holding a very large vase of flowers. The background is red and the only text in
the ad is "Valentine's Day." What type of ad is this?
A.
parity
B.
direct sales
C.
pioneering
D.
comparative
E.
reminder
86. The first decision in developing an advertising program is to:
A.
set the budget.
B.
state the mission of the advertising program.
C.
identify the target audience.
D.
select the appeal.
E.
select the media.
87. When developing the advertising program, specifying the advertising objectives helps advertisers with other
choices in the process such as __________ and evaluating a campaign?
A.
identifying the target audience
B.
selecting media
C.
designing the advertising
D.
pretesting the advertising
E.
scheduling the advertising program
88. In 1990 a 30-second ad during the Super Bowl cost $700,000. In 2004 the cost was $2.25 million. The
reason for the escalating cost is:
A.
the ads are much more elaborate.
B.
the TV stations know the advertisers will pay more.
C.
the number of viewers is growing.
D.
the ad agencies have dramatically increased their fees.
E.
all of the above.
89. An ad for Conesco Insurance asks the question, "How long will you wait to start planning for long-term
care?" The ad shows an elderly women being assisted by a nurse as she tries to win money on a game show.
The idea that she will not have the care she needs because she failed to consider the future when she was
young is an example of a:
A.
rhetorical appeal.
B.
life cycle appeal.
C.
humorous appeal.
D.
sex appeal.
E.
fear appeal.
90. Which of the following statements describes a problem with using humorous appeals in advertising?
A.
What adults find humorous, children do not.
B.
What children find humorous, adults do not.
C.
Most humorous advertisements offend someone.
D.
Humor tends to wear out quickly, boring the consumer.
E.
Humorous appeals are easily ignored.
91. The use of Courteney Cox and David Arquette in Coca-Cola commercials rather than unknown models is an
example of a very popular form of advertising today--the use of:
A.
a fear appeal.
B.
a snob appeal.
C.
D.
E.
an appeal to pride.
a sex appeal.
a celebrity spokesperson.
92. Because consumers often do not pay close attention to advertising messages, advertisers want to reach the
same audience more than once. The average number of times a person in the target audience is exposed to a
message or advertisement is called:
A.
parity.
B.
reach.
C.
frequency.
D.
rating.
E.
gross rating points.
93. Gross rating points (GRPs) are:
A.
reach multiplied by frequency.
B.
reach multiplied by rating.
C.
rating multiplied by frequency.
D.
cost divided by reach.
E.
cost divided by (reach multiplied by frequency).
94. CPM with respect to advertising is defined as the:
A.
cost of one medium relative to the cost of other media (e.g. direct mail versus television,
radio, or outdoor), each of which are divided by the multiple of their respective reach and
frequency.
B.
reach multiplied by frequency divided by the cost of reaching 1000 individuals or households
with the advertising message.
C.
cost of reaching 1000 individuals or households with the advertising message.
D.
cost per minute of television or radio time
E.
number of consumers exposed to an advertising message, in thousands.
95. The owners of a small book store have an objective of obtaining awareness in the small town where they are
located. Which of the following measures could be used to compare the number of different people or
households exposed to an advertisement?
A.
reach
B.
rating
C.
GRPs
D.
CPM
E.
frequency
96. The owners of a small toy store had a limited advertising budget. As such, the owners of the store were very
concerned with spending their advertising dollars wisely. One of their primary advertising concerns was to
expose customers in a limited market area to their advertising messages as often as possible. The owners of
the toy store were concerned with:
A.
reach.
B.
frequency.
C.
gross rating points.
D.
cost per thousand.
E.
advertising themes.
97. One of the advantages associated with television as an advertising medium is that it:
A.
has a short exposure time.
B.
can target specific audiences.
C.
is a low-cost medium.
D.
has an unlimited amount of advertising time available.
E.
can be used to convey complex messages.
98. __________ occurs when people outside the target market for the product see a firm's advertisement.
A.
Media divergence
B.
Dual exposure
C.
Over-coverage
D.
Wasted coverage
E.
Extended advertising
99. One of the advantages associated with radio as an advertising medium is that it:
A.
has a long exposure time.
B.
can target general audiences.
C.
uses humor, sound, and intimacy effectively.
D.
has an unlimited amount of advertising time available.
E.
is difficult to convey complex messages.
100. Shur-Valu Supermarkets changes its ads constantly to describe new products it has for sale and different
price specials it offers. Which medium would be the least logical choice for placement of its messages?
A.
billboard (outdoor)
B.
direct mail
C.
radio
D.
magazines
E.
newspapers
101. One reason for using newspapers as an advertising medium is their:
A.
ability to cover local markets.
B.
long lead time for ad placement.
C.
long life span.
D.
high cost.
E.
ads compete with other features in the newspaper.
102. A retail store marketing vice president is developing an advertising budget using the objective and task
method. She has the objective of clearing slow-moving merchandise from her shelves and is trying to
choose between radio and newspaper ads. Which of the following is an advantage of radio relative to
newspaper as a means of achieving the objective?
A.
better reach
B.
more effective visuals
C.
ads can be saved by consumers
D.
better segmentation capability
E.
more effective in conveying complex information
103. Continuous scheduling would most likely be used for advertising:
A.
snow blowers.
B.
school supplies.
C.
bathroom cleaner.
D.
toys.
E.
suntan lotion.
104. A basic approach to scheduling, in which periods of advertising are scheduled between periods of no
advertising to reflect seasonal demand is called:
A.
sustaining.
B.
dripping.
C.
flighting.
D.
pulsing.
E.
bursting.
105. Pulse scheduling would most likely be used for advertising:
A.
bathroom cleaner.
B.
C.
D.
E.
breakfast cereal.
socks.
motor oil.
candy given for a gift.
106. The mother handed her college-aged son a piece of paper and said, "By redeeming this you will receive 25
cents off your next purchase of Birdseye lima beans." Birdseye is using a __________ to stimulate demand
for its lima beans.
A.
rebate
B.
sample
C.
coupon
D.
deal
E.
premium
107. McDonald's offered collectable toys that portrayed the movie characters in The Incredibles for free with
the purchase of a Happy Meal. These toys are an example of a
A.
deal.
B.
premium.
C.
rebate.
D.
coupon.
E.
sample.
108. For marketers, the primary objective of a premium is to:
A.
encourage customers to return frequently or to use more of the product, and to build
goodwill.
B.
increase trial and retaliate against competitors' actions.
C.
encourage present customers to buy more; minimize brand switching behavior.
D.
encourage new product trial.
E.
generate store traffic.
109. When Allyn went to get his newspaper, he found the paper in a plastic bag along with a box containing one
dose of Alka-Seltzer Heartburn Relief medication. Which type of sales promotion is Alka-Seltzer using?
A.
a sample
B.
a deal
C.
a premium
D.
a point-of-purchase display
E.
a introductory offer
110. For marketers the primary objective of a point-of-purchase display is to:
A.
eliminate the need for any special pricing promotion.
B.
increase trial and retaliate against competitors' actions.
C.
encourage present customers to buy more; minimize brand switching behavior.
D.
increase product trial and provide in-store support for other promotions.
E.
increase consumer purchases; build business inventory.
111. A Nabisco display in the grocery store is designed to maximize the consumer's attention to lunch box and
after-school snacks and to provide storage for the products. It is usually placed in a high-traffic area of the
store. This type of sales promotion is called:
A.
a sample
B.
a free standing insert
C.
a premium
D.
a point-of-purchase display
E.
a deal
112. The consumer promotion that involves the use of a brand-name product in a movie, television show, video,
or a commercial for another product is called:
A.
B.
C.
D.
E.
a product deal.
a product premium.
a product sample.
product placement.
product continuity.
113. A __________ is a unique strength relative to competitors.
A.
distinctive parity
B.
sustainable dominance
C.
synergistic edge
D.
market dominance
E.
competitive advantage
114. Which of the following pieces of information is used in the third step of the planning phase of the strategic
marketing process?
A.
corporate return on investment
B.
detailed plans to execute the marketing program
C.
revenues associated with each point of market share
D.
trends in past and current revenues for industry and competitors in total and by segment
E.
possible cannibalization effects on other products in the line
115. The marketing manager for Ocean Spray cranberry products is the team leader for each phase of the
company's strategic marketing process. During the previous year, sales of cranberries in the United States
did not meet expectations. Which of the following actions during the planning phase of the strategic
marketing process would generate the required information for his team to develop the plans that define the
goals and marketing mix strategies to be achieved for next year?
A.
Generate a memo that clarifies each team member's responsibilities in the strategic marketing
process.
B.
Conduct a situation (SWOT) analysis that identifies industry trends, analyzes competitors,
assesses his own company, and researches customers.
C.
Develop a new organizational chart that reflects the re-organization of the team if corrective
actions are not successful in the upcoming year.
D.
Write action memos to try to correct problems and exploit opportunities.
E.
Define the tracking reports to enable results to be compared with the planl.
116. During the planning phase of the strategic marketing process, the marketing manager will:
A.
design the marketing organization.
B.
obtain resources.
C.
set market and product goals.
D.
develop marketing schedules.
E.
do all of the above.
117. Marketing plans that cover marketing activities from two to five years into the future are called:
A.
generic marketing strategies.
B.
long-range strategic plans.
C.
marketing strategies.
D.
long-range marketing plans.
E.
marketing tactics.
118. Based on relative competitive scope (broad target to narrow target) and source of competitive advantage
(lower cost to differentiation), Porter's four generic business strategies are differentiation, cost focus,
differentiation focus, and:
A.
exclusivity.
B.
electronic-focus.
C.
quality focus.
D.
cost leadership.
E.
service leadership.
119. Based on relative competitive scope (broad target to narrow target) and source of competitive advantage
(lower cost to differentiation), Porter's four generic business strategies are differentiation, cost focus, cost
leadership, and:
A.
exclusivity.
B.
electronic-focus.
C.
quality focus.
D.
differentiation focus.
E.
service leadership.
120. Office Max provides low product prices for office supplies. In terms of Porter's generic business strategy,
Office Max uses a(n) __________ strategy.
A.
differentiation focus
B.
cost focus
C.
differentiation
D.
revenue leadership
E.
profit enhancement
121. When Walt Disney Co. opened new theme parks in Paris, Tokyo, and Hong Kong, it was using a
___________ strategy, one of the profit enhancement options.
A.
market penetration
B.
product development
C.
differentiation
D.
diversification
E.
market development
122. Ideally, in effective marketing planning, goals should be __________ in terms of what is to be
accomplished and when.
A.
loose and vague
B.
as general as possible
C.
flexible or elastic
D.
quantified and measurable
E.
none of the above
123. General Mills uses a marketing structure in which one person is ultimately responsible for the marketing of
a specific product. For instance, one person is responsible for setting marketing goals and developing and
implementing related marketing strategies for the well-known breakfast cereal, Cheerios. This person, who
takes responsibility for the success or failure of the marketing of Cheerios, is called a:
A.
marketing advisor.
B.
product advisor.
C.
account executive.
D.
product manager.
E.
cereal strategist.
124. The control phase of the strategic marketing process includes:
A.
taking actions to solve problems and exploit opportunities.
B.
measuring results against quantified goals.
C.
comparing goals and results to identify deviations.
D.
identifying the cause of deviations.
E.
all of the above.
Marketing - Practice Final Exam KEY
Created: 3:52:29 PM EST
1. (p. 336) D
2. (p. 336-337) B
3. (p. 337) D
4. (p. 337; Figure 13-2) C
5. (p. 338) A
6. (p. 338) C
7. (p. 339) D
8. (p. Page: 339) B
9. (p. 340-341) C
10. (p. 341) D
11. (p. 342) C
12. (p. 344) A
13. (p. 345) C
14. (p. 346) D
15. (p. 346; Fig. 13-7) A
16. (p. 348) B
17. (p. 348) A
18. (p. 348-349) B
19. (p. 349) B
20. (p. 350) A
21. (p. 350) B
22. (p. 350) D
23. (p. 350) D
24. (p. 351) A
25. (p. 352) C
26. (p. 354) E
27. (p. 354) C
28. (p. 362) A
29. (p. 362) E
30. (p. 363) C
31. (p. 363) D
32. (p. 363) C
33. (p. 364) B
34. (p. 364-365) C
35. (p. 366) D
36. (p. 366) C
37. (p. 370) D
38. (p. 370) C
39. (p. 370) B
40. (p. 373) E
41. (p. 375; Fig. 14-6) B
42. (p. 375) B
43. (p. 376) C
44. (p. 376-377) E
45. (p. 396) B
46. (p. 396) C
47. (p. 397) D
48. (p. 397) E
49. (p. 399) A
50. (p. 399) C
51. (p. 401) E
52. (p. 405) B
53. (p. 405) B
54. (p. 412) A
55. (p. 413) A
56. (p. 470) D
57. (p. 470) D
58. (p. 471) A
59. (p. 472) E
60. (p. 473) B
61. (p. 473) A
62. (p. 473) A
63. (p. 474) E
64. (p. 475) D
65. (p. 475) B
66. (p. 476) B
67. (p. 477) C
68. (p. 477) D
69. (p. 480) D
70. (p. 481) E
71. (p. 470) C
72. (p. 482) E
73. (p. 482) D
74. (p. 482) B
75. (p. 484) D
76. (p. 488) E
77. (p. 488) B
78. (p. 492) C
79. (p. 496) C
80. (p. 497) B
81. (p. 497) A
82. (p. 497) A
83. (p. 497) C
84. (p. 497) B
85. (p. 497) E
86. (p. 498) C
87. (p. 499) B
88. (p. 499) C
89. (p. 501) E
90. (p. 502) D
91. (p. 502) E
92. (p. 504) C
93. (p. 504) A
94. (p. 504) C
95. (p. 504) A
96. (p. 504) B
97. (p. 506; Fig. 19-4) B
98. (p. 505) D
99. (p. 506; Fig. 19-4) C
100. (p. 506; Fig. 19-4) D
101. (p. 506; Fig. 19-4) A
102. (p. 506-507) D
103. (p. 511) C
104. (p. 511) C
105. (p. 511) E
106. (p. 514-515) C
107. (p. 516) B
108. (p. 516; Fig. 19-6)
109. (p. 517) A
110. (p. 517) D
111. (p. 517) D
112. (p. 518) D
113. (p. 582) E
114. (p. 586; Fig. 22-2)
115. (p. 586; Fig. 22-2)
116. (p. 586; Fig. 22-2)
117. (p. 587) D
118. (p. 589; Fig. 22-4)
119. (p. 589; Fig. 22-4)
120. (p. 589-590) B
121. (p. 590) E
122. (p. 593) D
123. (p. 602) D
124. (p. 602) E
A
B
B
C
D
D