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Marketing
Q:
According to Christensen's five principles of disruptive innovations, the following statement is not true:
A) companies depend on customers and investors for resources.
B) small markets solve the growth needs of large companies.
C) markets that don't exist can't be analyzed.
D) an organization's capabilities define its disabilities.
E) technology supply may not equal market demand.
Q:
In Hong Kong and Singapore, efficient postal services, highly educated populations, wide use of credit cards, and high per capita income are attracting the attention of catalog marketers.
Q:
A hamburger stand near the local mall sells hamburgers for $3.99, drinks for $1.99, and fries for $1.49, while a gourmet restaurant nearby sells entrees for $20, $30, and $45. Both of these restaurants are using ________.
A) demand-based pricing
B) cost-based pricing
C) psychological pricing
D) prestige pricing
E) penetration pricing
Q:
"Small markets don't solve the growth needs of large companies" and "markets that don't exist can't be analyzed" are two principles of disruptive innovation. These principles are integral to:
A) the five forces model.
B) the flagship model.
C) strategic intent.
D) the innovator's dilemma.
E) the innovator's dream.
Q:
Following the economic crisis in Asia, many companies in that region have turned to direct mail in order to save costs.
Q:
A local restaurant sells lunch entrees for $7.95, $9.95, and $11.95. From this information, you can infer the restaurant uses which of the following?
A) price discrimination
B) odd-even pricing and price lining
C) dynamic pricing and price lining
D) reference pricing and value pricing
E) dynamic pricing and loss leader pricing
Q:
Each network has its own "metrics of value." For laptop computers this value would include all of the following except:
A) small size.
B) low weight.
C) power consumption.
D) memory capacity.
E) rugged design.
Q:
On a per capita basis, German consumers are world-leader mail-order shoppers.
Q:
As a result of the ________, Rick decided the candy priced at $2.50 per pound could not be nearly as good as the candy priced at $9.50 per pound.
A) assimilation effect
B) contrast effect
C) fair price effect
D) reference effect
E) clouding effect
Q:
Today Microsoft lags behind new industry entrants in high-growth, consumer-oriented areas such as search and social networking. Which of the principles of disruptive innovation does this fact pertain to?
A) Companies depend on customers for resources.
B) Small markets don't satisfy the growth needs of large companies.
C) Markets that don't exist can't be analyzed.
D) Technology supply may not equal market demand.
E) A company's capabilities define its disabilities.
Q:
Direct marketing does not work well as a global marketing tool because it is not well suited to the task of addressing cultural differences among consumers.
Q:
By using ________, a company deliberately sets a low price with the intention of driving its competition out of business.
A) price-fixing
B) price lining
C) surge pricing
D) predatory pricing
E) loss leader pricing
Q:
Worldwide, the popularity of direct marketing has been steadily decreasing in recent years.
Q:
Federal legislation on price-fixing requires that sellers set their prices ________.
A) based on their fixed and variable costs
B) without communication with competitors
C) to achieve a specified profit margin
D) consistently with all customers
E) consistently throughout a region
Q:
Which of the following principles of disruptive innovation pertains to the notion of agnostic marketing?
A) Companies depend on customers for resources.
B) Small markets don't satisfy the growth needs of large companies.
C) Markets that don't exist can't be analyzed.
D) Technology supply may not equal market demand.
E) A company's capabilities define its weaknesses.
Q:
Host-country nationals may possess work habits or selling styles that do not mesh with those of the parent company.
Q:
Which of the following occurs when manufacturers or wholesalers attempt to force retailers to charge a certain price for their products?
A) horizontal price fixing
B) vertical price fixing
C) predatory pricing
D) internal reference pricing
E) assimilation pricing
Q:
In every industry, companies are embedded in a(n) ________, which has a cost structure associated with it that dictates the margins needed to achieve profitability.
A) innovator's dilemma
B) transaction
C) URL
D) value network
E) digital network
Q:
A company with a regiocentric orientation is likely to utilize third-country nationals for its sales force in less developed countries.
Q:
Which of the following occurs when competitors making the same product jointly determine what price each will charge customers for the item?
A) horizontal price fixing
B) vertical price fixing
C) predatory pricing
D) internal reference pricing
E) assimilation pricing
Q:
Which of the following is not one of Clayton Christensen's principles of disruptive innovation?
A) Companies depend on customers for resources.
B) Small markets don't satisfy the growth needs of large companies.
C) Markets that don't exist can't be analyzed.
D) Technology supply may not equal market demand.
E) E-commerce activities can be divided into three categories.
Q:
In companies where a polycentric management orientation prevails, host-country nationals will be used in most selling situations with the exception of high-tech products sold in developed countries.
Q:
Price fixing occurs when two or more companies conspire to ________.
A) keep prices at a certain level
B) use predatory pricing
C) use loss-leader pricing
D) use bait-and-switch tactics
E) prohibit competitors from entering a market
Q:
According to the innovator's dilemma:
A) the computing power of a microprocessor doubles every 18 months.
B) markets that don't exist can't be analyzed.
C) well-managed companies that listen and respond to needs of established customers may miss opportunities to innovate.
D) regulation of e-commerce activities will increase at a rate that is directly proportional to the growth of e-commerce revenues.
E) innovations are copied soon after they are discovered.
Q:
Ethnocentric companies are likely to use an expatriate sales force in countries at all levels of economic development.
Q:
The Robinson-Patman Act does NOT include regulations that ________.
A) apply to resellers
B) protect final consumers
C) prohibit selling the same product to different retailers at different prices
D) prohibit offering such "extras" as discounts, rebates, premiums, and coupons to some but not all customers
E) prohibit price discrimination in interstate commerce
Q:
What is convergence? What kind of challenges does it present?
Q:
The final step in the 6-step sales presentation plan is closing the sale.
Q:
In some states, unfair trade practices acts are designed to ________.
A) regulate the markups used by various industries
B) control the sale of agricultural products and raw materials
C) regulate all forms of psychological pricing
D) prohibit the selling of products below cost
E) ban the use of price lining
Q:
An innovation that is disrupting to one firm can be sustaining to another firm.
Q:
The U.S.-style "I'll do whatever it takes to get your business" has proven to be a successful selling approach throughout the world.
Q:
Some retailers advertise items at very low prices or even below cost just to get customers into the store. The rationale for implementing this ________ strategy is the belief that once a customer is in the store she will buy the advertised item as well as other items at regular prices.
A) bait-and-switch
B) price lining
C) predatory pricing
D) loss leader pricing
E) dynamic pricing
Q:
According to innovation expert Clayton Christensen, an organization's capabilities define its disabilities.
Q:
Relationship marketing, which stresses an approach on developing long-term relationships with customers, has been embraced by many U.S. companies.
Q:
Enforcing laws against ________ is complicated because such practices are similar to the legal practice of "trading up."
A) price bundling
B) captive pricing
C) bait-and-switch tactics
D) prestige pricing
E) placebo effect pricing
Q:
The Strategic/Consultative Selling Model consists of five interdependent steps, each with three prescriptions that can serve as a checklist for sales personnel.
Q:
Which of the following is a pricing strategy that turns the typical assumption about price-demand relationships on its head?
A) penetration pricing
B) price bundling
C) assimilation effect pricing
D) placebo effect pricing
E) prestige pricing
Q:
According to innovation expert Clayton Christensen, markets that don't exist can't be analyzed since companies embrace agnostic marketing.
Q:
When MCI Communications first entered Latin America, it utilized expatriate Americans despite the high cost of doing so.
Q:
From a marketer's point of view, price lining is a way to do which of the following?
A) control supply
B) maximize profits
C) make the business more socially responsible
D) pass shipping costs on to consumers
E) eliminate price elasticity concerns
Q:
The value network for the personal computer industry is not different from the value network for mainframe computers.
Q:
Social couponing is one of the hottest online sales promotion trends. It offers its followers deal-of-the-day coupons that are sponsored by local businesses.
Q:
A business using price lining is doing which of the following?
A) trying to avoid the use of psychological pricing, which may be negatively received by customers
B) trying to recoup its research and development costs for a new product
C) attempting to attain a large market share before any competitors can enter the marketplace
D) selling items in a product line at different prices
E) engaging in potentially unethical pricing
Q:
Some company executives become so committed to a current, profitable technology that they fail to provide adequate levels of investment in new, apparently riskier technologies.
Q:
In China, consumers are reluctant to buy full-sized packages of unfamiliar imported products. In such a marketing environment, sampling is an appropriate promotional strategy.
Q:
According to innovation expert Clayton Christensen, the creation of the Internet represented a disruptive technology for Dell Computer.
Q:
Consumers usually perceive higher-priced products as ________.
A) out of reach for all but the wealthy
B) having high quality
C) having low profit margins
D) having cost-based prices
E) being in the introductory stage of the product life cycle
Q:
Cross coupons offer its users deal-of-the-day that are sponsored by local businesses.
Q:
When consumers are unable to judge the quality of a product through examination or prior experience, they usually do which of the following?
A) Make a price-quality inference.
B) Depend on an internal reference price.
C) Assess the fair price.
D) Experience an assimilation effect.
E) Experience a price-placebo effect.
Q:
Sustaining technologies enable something to be done that was previously deemed impossible.
Q:
Fifty years ago, Kikkoman brand soy sauce was unknown in the United States. The company used sampling and even today continues to make extensive use of shopper marketing as a communication tool.
Q:
A(n) ________ strategy is implemented when a store places two similar items next to each other, highlighting the fact that the price of one item is slightly lower than that of the other item.
A) assimilation effect
B) contrast effect
C) price-placebo effect
D) penetration pricing
E) skimming price
Q:
Market maturity can also be different from country to country; consumer sampling and coupons are appropriate for mature markets.
Q:
Although IBM tried to regain its position by creating its first PC, it was slow to recognize the growing demand for laptops.
Q:
In a low-income country, free samples are likely to be a more effective promotional tool than coupons or on-pack premiums.
Q:
Ironically, Motorola, a key player in the cell phone business, could have been first to market with a cell phone camera.
Q:
A(n) ________ occurs when customers decide that two different brands of pain reliever have the same product quality because they have basically the same product characteristics and similar prices.
A) clouding effect
B) assimilation effect
C) bundling effect
D) contrast effect
E) price-placebo effect
Q:
Describe how Red Bull's creator trusted his entrepreneurial instincts instead of relying on traditional marketing research to make it so globally successful.
Q:
Often consumers base their perception of price on what they perceive to be the customary or ________.
A) dynamic price
B) fair price
C) target price
D) list price
E) assimilated price
Q:
In a contest in 45 different languages covering 60 countries, marketers for Axe Apollo invited consumers to fill out an "astronaut profile."
Q:
Red Bull has been involved in Music Academy which is a series of concerts, workshops, art installations, and other cultural events that rotate from year to year among different international cities.
Q:
Overall, sales promotion tools, such as coupons, are used less frequently as consumer products companies increase budget allocations for media advertising.
Q:
Which of the following is a set price or price range in consumers' minds that they refer to in evaluating a product's price?
A) dynamic price
B) internal reference price
C) suggested retail price
D) captive price
E) value price
Q:
Some advertisers acknowledge that, in Brazil, traditional outdoor advertising may not be the best communication channel due to noise level.
Q:
A marketer of fine French cognac offers a fancy cigar ashtray to persons who correctly solve a crossword puzzle and mail it in. This is an example of a trade promotion.
Q:
What are some of the potential consumer benefits to purchasing items online?
Q:
France is leading in the rankings showing expenditures for outdoor advertising as percentage of total ad spending.
Q:
How has the Internet made it easier for companies to use dynamic pricing strategies? Use an example in your explanation.
Q:
From the point of view of the marketer, sales promotion provides accountability.
Q:
At concerts and other events, street teams pass out free samples while driving specially modified cars with giant Red Bull cans mounted on them.
Q:
Dietrich Mateschitz, Red Bull's creator, stated "When we first started, we said that there is not an existing market for Red Bull." The reasons behind Red Bull's success include all of the following except:
A) a market was created for Red Bull.
B) a market segment was found with unmet needs.
C) the blue-and-silver color on cans helped in Red Bull's popularity.
D) orthodox advertising strategies were used with tactics.
E) The Red Bulletin magazine helped in Red Bull's popularity.
Q:
Pricing based on supply and demand is not a part of dynamic pricing.
Q:
The effective integration of products and brands with entertainment can be seen on the TV hit American Idol. This type of trend is referred to as:
A) advertising age.
B) traditional advertising.
C) global advertising.
D) branded entertainment.
E) image entertainment.
Q:
How do the public relations differ around the world? Explain giving examples to show the importance of public relations for a global company.
Q:
________ is a new business strategy of offering a basic version of a product free of charge and then charging for upgraded versions of the product.
A) Price discrimination
B) Freemium
C) Crowdsourcing
D) Reverse marketing
E) Dynamic marketing
Q:
Companies use corporate advertising; image advertising, and advocacy advertising from time to time. How are these advertising methods used and what are are the circumstances under which they are used?
Q:
In a(n) ________, sellers compete for the right to provide a product to a buyer.
A) reverse auction
B) dynamic auction
C) open auction
D) reserve auction
E) price-lining auction
Q:
Celeste Atkinson is a lifestyle and entertainment manager for Audi, and her job is to create buzz by ensuring that vehicles such as the Audi A8L and the S8 sports sedan figure in paparazzi photos. This is referred to as:
A) lifestyle placement.
B) blockbuster placement.
C) promotion placement.
D) product placement.
E) photo placement.
Q:
Because of its size and presence in more than 200 countries, the Coca-Cola Company is often the target of anti-globalization protests. Giving examples, show how negative publicity affects global marketers.
Q:
In a(n) ________, all of the buyers know the highest price bid at any point in time.
A) reverse auction
B) dynamic auction
C) open auction
D) reserve auction
E) price-lining auction