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Marketing
Q:
Coupons are not a favorite promotion tool for use in:
A) the United Kingdom.
B) Belgium.
C) the United States.
D) Italy.
E) Malaysia.
Q:
According to the worldwide revenue figures for 2012, Omnicom Group is the world's largest advertising organization.
Q:
________ do not vary with the number of units produced.
A) Liquidity costs
B) Fixed costs
C) Variable costs
D) Marginal costs
E) Everyday costs
Q:
Standardized print campaigns can be used for industrial products or for technology-oriented consumer products such as Apple iPhone and iPad.
Q:
________ are the per-unit costs of production that will fluctuate depending on how many units or individual products a firm produces.
A) Fixed costs
B) Variable costs
C) Average fixed costs
D) Marginal costs
E) Everyday costs
Q:
Unilever hired a promotional marketing firm to pass out Lever 2000 hand wipes in food courts and petting zoos. This is an example of:
A) point-of-use sampling.
B) point-of-sale sampling.
C) point-of-dirt sampling.
D) point-of-event sampling.
E) point-of-work sampling.
Q:
Recently, global companies have embraced a technique known as "pattern advertising" which is analogous to the concept of global product platforms.
Q:
The changes in prices of other products affect the demand for an item. This is a phenomenon called ________.
A) cross-elasticity of demand
B) complementary elasticity
C) interdependent elasticity
D) parallel elasticity
E) variable demand
Q:
PepsiCo experienced great success in Latin America with its Numeromania contest, which lured consumers by promising big cash prizes. They used the same contest in Poland successfully. This shows that:
A) Numeromania can be used in different languages.
B) Numeromania can be used in cash starved countries.
C) leverage experience gained in one country can be used in another country.
D) economically squeezed consumers love Pepsi.
E) Numeromania helped in developing a taste for Pepsi in both countries.
Q:
The "extension versus adaptation" debate is essentially a debate over "standardized versus localized" advertising.
Q:
When demand is ________, increases in price result in increases in total revenues, while decreases in price result in decreases in total revenue.
A) elastic
B) inelastic
C) flexible
D) supply-driven
E) cross-elastic
Q:
Spoexa, a food-marketing company was hired by the French Ministry of Agriculture to organize cocktail parties in 19 countries in order to:
A) promote French wines.
B) promote French cheese.
C) show that French cuisine is laid back.
D) show that French wines are superior.
E) show how to use French cuisine.
Q:
According to data published by Advertising Age in 2012, Proctor & Gamble ranks # 2 in worldwide advertisement spending.
Q:
Promotions designed to increase product availability in distribution channels are known as:
A) sales promotions.
B) price promotions.
C) trade sales promotions.
D) consumer sales promotions.
E) nonprice promotions.
Q:
Demand would most likely be inelastic for which of the following?
A) lamb chops and t-bone steaks
B) gourmet cheese
C) symphony tickets
D) luxury watches
E) basic necessities
Q:
The elements of the promotion mix are advertising, public relations, personal selling, process, and sales promotion.
Q:
Which of the following occurs when price is inelastic?
A) Price and revenue change in the same direction.
B) Revenues decrease when price increases.
C) Revenue is unaffected by price changes.
D) Quantity demanded increases when price increases.
E) The demand curve is more horizontal.
Q:
A critical marketing tool for global companies such as Red Bull is:
A) sampling.
B) sweepstakes.
C) couponing.
D) event marketing.
E) personal selling.
Q:
Which of the following most accurately describes the relative length of consumer and industrial distribution channels?
A) Consumer channels tend to be longer (consist of more intermediaries) than industrial channels.
B) Industrial channels tend to be longer (consist of more intermediaries) than consumer channels.
C) Both consumer and industrial channels tend to be long (consist of several intermediaries).
D) Both consumer and industrial channels tend to be short (consist of few intermediaries).
E) Consumer channels tend to be shorter (consist of few intermediaries) than the industrial channels.
Q:
How is the price elasticity of demand calculated?
A) averaging previous demand levels with new demand levels
B) dividing percentage change in quantity demanded by percentage change in price
C) dividing the new quantity demanded by the percentage change in price times 100
D) multiplying the percentage change in quantity demanded by the percentage change in price
E) dividing the percentage change in price by the percentage change in quantity demanded
Q:
The success of the Stratos project helps Red Bull by:
A) having their logo on NASCAR cars.
B) using YouTube as an effective marketing tool.
C) standing out from a crowded field of competitors.
D) utilizing free-standing inserts.
E) personal selling.
Q:
Some wine importers insist on shipping their wines in refrigerated containers to protect the wines from being damaged by high temperatures. Such importers are creating which kind of utility?
A) place utility
B) time utility
C) form utility
D) information utility
E) worker utility
Q:
Which promotional technique is best suited to a situation in which a company wants consumers to actually try its product or service at no cost?
A) sampling
B) sweepstakes
C) couponing
D) free-standing inserts
E) personal selling
Q:
Which of the following is a measure of customers' sensitivity to changes in price?
A) liquidity ratio
B) demand sensitivity
C) price elasticity of demand
D) marginal analysis
E) basing-point
Q:
Coca-Cola Company's global marketing leadership position is based in part on its ability to put Coke "within an arm's reach of desire"; in other words, it is the ability to create:
A) place utility.
B) time utility.
C) form utility.
D) information utility.
E) all of the above
Q:
To fight counterfeiting, the "Disney Magical Journey" promotion was keyed to mail-in hologram stickers on genuine Disney products. Participants could win Disney DVDs, TV sets, and trips to Hong Kong Disneyland. This is an example of:
A) promotion of different types for marketing.
B) promotion of Disney Magical Journey.
C) people in many countries prefer mail-in hologram.
D) "Disney Magical Journey" is popular worldwide.
E) sales promotion by global marketer.
Q:
What is the first step a marketer should take to estimate a product's potential sales?
A) determine maximum production levels
B) conduct a survey of buyers' intentions
C) estimate total demand for the product in the market
D) determine how to expand market share
E) predict the company's market share
Q:
Marketing channels exist to create utility for customers. The major categories of channel utility include all of the following except:
A) place utility.
B) price utility.
C) information utility.
D) form utility.
E) time utility.
Q:
In a contest of 45 different languages covering 60 countries, marketers for Axe Apollo invited consumers to fill out an "astronaut profile." This is an example of:
A) promotion of different types for marketing.
B) promotion of interest in space exploration.
C) people in different countries prefer different topics.
D) astronaut profile varies from country to country.
E) sales promotion by global marketer.
Q:
Why are prestige products often an exception to the law of demand?
A) The demand curve for prestige products slopes downward and to the right.
B) Increasing the price of prestige products can make them seem more desirable.
C) Demand for prestige products often is greater than supply.
D) Prestige products such as diamonds, sapphires, and emeralds are nonrenewable resources.
E) Customers are more aware of any price changes to prestige products.
Q:
In spite of Walmart's potential to transform India's retail sector for the better, Indian activists and policy makers are worried because:
A) Western-style, big-box retailing is anathema.
B) millions of shopkeepers will be out of business.
C) policy makers are suspicious of the company's motives.
D) attitude that can be traced back to the British East India company of the colonial era.
E) all of the above
Q:
According to the law of demand, which of the following is true?
A) If prices decrease, customers will buy more.
B) Customers are not aware of small price changes.
C) The effect on demand from changes in price cannot be accurately predicted.
D) Demand equals supply.
E) If prices increase, customers will buy more.
Q:
"Channel strategy" involves an analysis of each shipping mode to determine which mode, or combination of modes, will be both effective and efficient in a given situation.
Q:
Which of the following is not an advantage of using sales promotions?
A) provides a tangible incentive to buyers
B) provides accountability to marketing managers
C) enables company to build its database
D) builds long-term brand awareness
E) develops relationship with customers
Q:
Promotions that are designed to increase product availability in distribution channels are known as:
A) price promotion.
B) non-price promotion.
C) trade sales promotion.
D) sweepstakes promotion.
E) sampling.
Q:
Which of the following is true about the demand curve?
A) It is used to illustrate the effect of price on the quantity supplied.
B) It is always graphically depicted by a straight line.
C) It shows the quantity of product customers will buy in a market during a period of time even if other factors change.
D) It usually slopes upward and to the right.
E) It shows the relationship between product demand and product price.
Q:
The term "logistics" management describes the integration of activities necessary to ensure the efficient flow of raw materials, in-process inventory, and finished goods from producers to customers.
Q:
Water transportation is rated "low" in reliability since approximately 200 freighters sink due to bad weather or other factors.
Q:
A marketer of fine French cognac offers fancy cigar ashtrays as prizes to consumers who correctly solve a crossword puzzle. Which of the following most accurately describes this offer?
A) price promotion
B) non-price promotion
C) trade sales promotion
D) sweepstakes promotion
E) sampling
Q:
Explain how prestige products may relate to some customers' feelings of self-worth. What is an example of a prestige product?
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:
Saturn car company started a trend with its value pricing strategy of giving customers one price and one price only. The Saturn website gave detailed price information without the need for or involvement of a salesperson. What pricing objective did Saturn use?
Q:
Trucks capability is second only to water in terms of the variety of products that can be transported.
Q:
Explain the concept of opportunity cost, giving at least one example from your life.
Q:
Due to political upheaval in the Middle East, in spring 2011, Procter & Gamble was forced to briefly close plants in Egypt that supply products for South Africa.
Q:
Companies use corporate advertising; image advertising, and advocacy advertising from time to time. How are these advertising methods? What are the circumstances under which they are used?
Q:
Application fees, tuition, and fines are all examples of prices.
Q:
By definition, a retailer that caters to the general public would be "downstream" in an industry's supply chain.
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:
Unlike other currencies, bitcoin is not controlled by a single government entity, such as the U.S. Treasury.
Q:
A company or activity that is somewhat removed from the final customer is said to beupstream in the value chain.
Q:
A company that is ethnocentric in its approach to PR will not extend home-country PR activities into host countries.
Q:
The first step in planning how to price a product is to develop pricing objectives.
Q:
When British entrepreneur Richard Branson opened the first Virgin Megastore in Japan, he did so by establishing a joint venture with the Marui retailing chain. This represents an appropriate market-entry approach for a global retailer.
Q:
The ultimate test of an organization's understanding of the power and importance of PR occurs during a time of environmental turbulence, especially a potential or actual crisis.
Q:
Exchanges of nonmonetary value do not involve a price.
Q:
The less frequently a product is ordered, the lower the inventory carrying costs.
Q:
A supplier in China was accused of selling outdated meat to the fast-food giant McDonald's. Sales declined as a result.
Q:
When Home Depot stores entered the Canadian market, there were already stores providing similar services and products. To get people to try Home Depot, the chain deliberately sold merchandise below the price that the Canadians were used to. What type of pricing objective did Home Depot use?
A) market share
B) profit
C) competitive effect
D) customer satisfaction
E) image enhancement
Q:
Swedish furniture retailer IKEA pulled meatballs from its cafeterias and grocery sections in several countries after food inspectors found some samples that contained horse meat.
Q:
In a massive security breach, North Korean hackers leaked data, memos, and films stolen from Sony in retaliation for Sony Pictures Entertainment's The Interview.
Q:
When setting prices, a leading manufacturer of nutritional supplements decided to institute a pricing strategy that would support a five percent increase in sales over the next three years. What type of pricing objective has the company set?
A) profit
B) sales
C) competitive effect
D) cost-plus
E) value
Q:
In many countries, it is customary to eat horse meat, since the flesh is lean, and high in iron and other nutrients.
Q:
A company that intends to maintain low-end pricing policies to make the market unattractive for its competitors is using which of the following pricing objectives in its price planning?
A) sales
B) profit
C) break-even
D) competitive effect
E) customer satisfaction
Q:
Advocacy advertising enhances the public's perception of a company, creates goodwill, or announces a major change.
Q:
The reason why Saks Fifth Avenue has licensed stores in the Middle East is to limit their risk when targeting unfamiliar, difficult-to-enter markets.
Q:
Retailers may have a difficult time crossing borders if they fail to appreciate similarities in retailing environments, and consumer behavior and preferences.
Q:
Image advertising is used by global companies to present themselves as famous corporate citizens in foreign countries.
Q:
In price planning, a firm would be most likely to set a profit objective for which of the following products?
A) a commodity such as coal
B) toothpaste
C) a fad such as Beanie Babies
D) lightbulbs
E) construction materials
Q:
Publicity is similar to advertising in that companies pay the media for placement of stories and news items.
Q:
Which of the following is NOT a type of pricing objective?
A) elasticity
B) market share
C) profit
D) competitive effect
E) image enhancement
Q:
Walmart pulled out of Germany and South Korea and Best Buy closed several stores in China. This is an example that illustrates that it is not possible to export a retail business model that has proven successful in the domestic market.
Q:
Three of the world's five largest malls are in Asia.
Q:
In developing countries, such as Ghana, the best way to communicate with market segments may be through:
A) mass media.
B) written word.
C) magazine ads.
D) TV ads.
E) dance, songs, and storytelling.
Q:
The value of something we give up in order to obtain something else is referred to as a(n) ________.
A) transformation cost
B) opportunity cost
C) exchange
D) variable cost
E) marginal cost
Q:
Hypermarkets are a hybrid retailing format combining the discounter, supermarket, and warehouse club approaches under a single roof.
Q:
Which of the following statements about price is true?
A) Pricing is the least important marketing mix element.
B) Price is always a monetary value.
C) Price can mean exchange of nonmonetary goods or services.
D) Most consumers believe price has little influence on their purchase decisions.
E) Pricing is unaffected by changes in the business cycle.
Q:
A company that is ________ in its approach to public relations (PR) will extend home-country activities into host countries.
A) regiocentric
B) polycentric
C) ethnocentric
D) domestic
E) hostile
Q:
China's ongoing trade-related friction with the United States highlights the need for:
A) a better distribution system.
B) a better PR effort.
C) sales promotion.
D) a better transportation system.
E) pattern advertising.
Q:
Laura Ashley, The Body Shop, Victoria's Secret, Starbucks, the Disney Store and Gap are examples of global retail operators that can be classified as specialty retailers since they offer less variety than department stores.