Question 1

Which of the following $\bold{\text{IS NOT}}$ a situation that can cause customers to be less sensitive to price increases?

Accepted Answer

A)  When customers have few product choices. 
B)  When products are highly differentiated. 
C)  When the product is a real or a perceived necessity. 
D)  When the total expenditure is high. 
E)  When the product is considered to be "worth it".

Question 2

To be successful. firms must move potential customers beyond mere interest in the product. Good promotion will stimulate __________ by convincing potential customers of the product's superiority and its ability to satisfy specific needs.

Accepted Answer

A)  dedication 
B)  investigation 
C)  attention 
D)  action 
E)  desire

Question 3

Discuss the steps involved in the AIDA model of outlining promotional goals. How does IMC strategy shift from one step to the next in the model? How does the important of various promotional elements vary across the steps?

Accepted Answer

The answer of Discuss the steps involved in the AIDA...

Question 4

Which pricing objective is associated with the phrase "charging what the market will bear"?

Accepted Answer

A)  volume-oriented 
B)  profit-oriented 
C)  cash flow 
D)  market demand 
E)  status quo

Question 5

Although the product is at the heart of the marketing program. it is important to remember that product offerings in and of themselves have little value to customers. An offering's real value comes from:

Accepted Answer

A)  its superiority to competing products. 
B)  its ability to further the image of the organization. 
C)  its value (good quality at a low price). 
D)  its ability to deliver benefits that solve a customer's problems. 
E)  its easy of use and convenience.

Question 6

Why would a firm offer a deep assortment of products in its product portfolio?

Accepted Answer

A)  To attract a wide range of customers and market segments. 
B)  To capitalize on the firm's reputation. 
C)  To diversify its risk. 
D)  To maximize differentiation across its product lines. 
E)  None of the above.

Question 7

Although break-even analysis and cost-plus pricing are important tools in setting prices based on the firm's cost structure. they should never be the driving force behind pricing strategy. Why?

Accepted Answer

A)  Because firms want to make a profit, not just break even. 
B)  Because customer expectations are far more important in setting prices. 
C)  Because prices should be based on demand, not costs. 
D)  Because different firms have different cost structures. 
E)  Because competitor's prices are far more important in setting prices.

Question 8

Which member of the marketing channel has the primary responsibility of fulfilling the channel's main functions?

Accepted Answer

A)  manufacturers 
B)  wholesalers 
C)  retailers 
D)  customers 
E)  It does not matter.

Question 9

Overall. what is the major disadvantage associated with the use of public relations and publicity?

Accepted Answer

A)  It is normally very expensive. 
B)  The amount of negative publicity always outweighs the good. 
C)  Few, if any, customers pay attention to public relations messages. 
D)  Most people find it to be less credible than advertising. 
E)  The firm has limited control over how the message will be delivered or interpreted.

Question 10

In most marketing channels for consumer products. the balance of power has shifted to __________ due to their size and buying power.

Accepted Answer

A)  consumers 
B)  mass merchandise retailers 
C)  wholesalers 
D)  brokers and distributors 
E)  manufacturers

Question 11

Firms such as IKEA and The Home Depot are known for their use of __________ because they set reasonably low prices but still offer high-quality products and adequate customer services.

Accepted Answer

A)  penetration pricing 
B)  market equity pricing 
C)  prestige pricing 
D)  relational pricing 
E)  value-based pricing

Question 12

Compare and contrast the traditional use of power in a marketing channel versus today's notion of integrated and collaborative supply chains. Do the five traditional power bases still play a role in today's era of collaboration? Explain.

Accepted Answer

The answer of Compare and contrast the traditional use of...

Question 13

A __________ is an organized system of marketing institutions through which products. resources. information. funds and/or product ownership flow from the point of production to the final user.

Accepted Answer

A)  marketing network 
B)  distribution hub 
C)  supply chain 
D)  marketing channel 
E)  product network

Question 14

In terms of the AIDA model. mass communication elements such as advertising and public relations tend to be very effective at:

Accepted Answer

A)  stimulating awareness of and interest in a product. 
B)  explaining highly complex and technical products. 
C)  stimulating immediate purchase of a product. 
D)  marketing high priced products. 
E)  closing the sale.

Question 15

The phrase "Unused service capacity is lost forever" refers to which major challenge associated with the marketing of services?

Accepted Answer

A)  client-based relationships 
B)  limited standardization 
C)  simultaneous production and consumption 
D)  perishability 
E)  heterogeneity

Question 16

Discuss the issues associated with the increasing fragmentation of mass media audiences. How are advertisers and media companies coping with the issue?

Accepted Answer

The answer of Discuss the issues associated with the increasing...

Question 17

Which of the following is perhaps the main advantage associated with the use of advertising?

Accepted Answer

A)  It takes little time to develop an advertising campaign. 
B)  The total dollar layout in advertising is usually low. 
C)  It is an extremely cost efficient way to reach a large number of people. 
D)  It can quickly convey a large amount of technical information. 
E)  It can be quite memorable.

Question 18

Mallory is an avid collector of antiques. In fact. she spends practically every weekend traveling to small towns and antique shops in search of unique antique treasures. For Mallory. antiques are a perfect example of a:

Accepted Answer

A)  convenience product. 
B)  shopping product. 
C)  supplemental product. 
D)  influential product. 
E)  specialty product.

Question 19

The goal of __________ is to maximize sales. gain widespread market acceptance. and capture a large market share quickly by setting a relatively low initial price.

Accepted Answer

A)  price skimming 
B)  odd pricing 
C)  penetration pricing 
D)  first-mover pricing 
E)  market acceptance pricing

Question 20

Which of the following $\bold{\text{IS NOT}}$ an important benefit of offering a large product portfolio?

Accepted Answer

A)  package differentiation 
B)  economies of scale 
C)  sales and distribution efficiency 
D)  standardization 
E)  equivalent quality beliefs

Exam 6: The Marketing Program

Which of the following IS NOT\bold{\text{IS NOT}}IS NOT a situation that can cause customers to be less sensitive to price increases?