MAR 3023 ITEMS FOR MIDTERM 2 FROM FALL 2009

1.  Wax for manufacturing candles that will be sold at retail would most likely be classified as which type of good?  A.  Unsought goods B.  Convenience goods C.  Support goods D.  Production goods E.  Specialty goods

 

2. A statement indicating the liability of the manufacturer for product deficiencies is a A. ConstraintB. Proof of purchaseC. WarrantyD. Seal of approvalE. Disclaimer

  

3.  Which of the following is an example of a brand community?  A.  Corvette has conventions across the country to bring Corvette drivers together to share their experiences with the brand. B.  Procter and Gamble puts a toll-free number on the back of all of their packages so a customer can call with any questions or concerns. C.  When marketing their products, Pampers focuses on how their diapers are "a friend" that help parents in the development of their baby. D.  Tide is trying to create an emotional involvement with its users by showing women that they can do other things because the laundry is taken care of. E.  Disney tries to create a one-on-one experience with the guest by having Disney characters available for pictures and autographs.

 

 

4.  Which of the following are not products that assist directly or indirectly in providing products for resale?  A.  B2B goods B.  Industrial goods C.  Organizational goods D.  Business goods E.  Consumer goods

  

5. Televisions are an example of a __________ and flat screen TVs are an example of a __________. A. Product family; product lineB. Product brand; product lineC. Product class; product formD. Product form; product classE. Product line; product class

 

 MARKETING DASHBOARD-b

6.  Which of the following is the best explanation for the data shown in Marketing Dashboard-b?  A.  The marketing mix is doing its job wellB.  The product is sold in the best possible location C.  The price is exactly right D.  The product is out of stock E.  The market really likes the product

 

7.  As mentioned in lecture, firms can expand upon brand equity by introducing more products in an already existing product category, using the "parent" brand name.  Which of the following is not an example of a line extension?  A.  Coca-Cola and Coke Zero B.  The Friday the 13th movies C.  Budweiser and Budweiser Select D.  Gatorade Fierce, Frost, and Rain E.  Coca-Cola and Tab Cola  

8.  Nabisco is a cookie and snack company that markets about 30 brands.  One of their most popular brands is Chips Ahoy!.  Chips Ahoy! has sixteen different varieties, such as Chips Ahoy! Chewy and Chips Ahoy! Mini. Chips Ahoy! is a _____ of Nabisco.  A.  Private label brand B.  Brand extension C.  Product mix D.  Product item E.  Product line

 

9.  Mike has developed an idea for a new energy drink.  He has asked several consumers to give him their thoughts about the product via a detailed questionnaire that includes illustrations of the product.  He specifically wanted to know what consumers thought about his proposal for the beverage's taste, the bottle's shape and the brand name of this new product.  Mike is now working to decide if selling this energy drink idea appears to be a good financial investment.  Mike is presently at what stage of the new product planning process?  A.  Market Testing B.  Prototype Development C.  Feasibility Screening D.  Business Analysis E.  Screening and Evaluation

 

10.  With respect to distribution, convenience goods are available  A.  By special order from the manufacturer B.  At relatively few outlets C.  On a widespread basis at many outlets D.  At a large number of selective outlets E.  At a very limited number of outlets

 

11.  Samantha is in the checkout line at Publix, waiting to pay for her groceries.  While standing in line she flips through the latest People magazine and sees an ad for a new brand of gum.  After seeing the ad, she selects one of the flavors of the gum from the display above the magazines.  Samantha has not tasted the gum before, but it looks enticing to her, so she is excited to try it out.  What is the complete order of the Individual-Level Adoption process that Samantha has begun by buying the gum?     I.     Awareness     II.     Interest     III.     Evaluation     IV.     Trial     V.     Adoption  A.  II, IV, I, III, V B.  I, II, IV, III, V C.  II, I, III, IV, V D.  I, III, II, IV, V E.  I, II, III, IV, V

 

12.  Margo and Diana take weekly trips to Publix to go grocery shopping.  While at Publix they buy similar items but different brands.  Margo tends to buy brands that are more expensive, are perceived to have higher quality, and that her family has used for many years.  Diana tends to buy less expensive brands that are available only at Publix.  What kind of brands do Margo and Diana buy, respectively?  A.  Multiple Brands, Private Label Brands B.  Name Brands, Generic Brands C.  National Brands, Private Label Brands D.  National Brands, Generic Brands E.  Family Brands, Generic Brands

 

 

    FIGURE 11-5 

13. The consumers represented by "A" in Figure 11-5 are called A. Early adoptersB. Early majorityC. InnovatorsD. Late majorityE. Laggards

 

14.  According to the text, which of the following is NOT a perspective on defining a "new" product?  A.  The product is less than 6 months old B.  The product is "new" in legal terms C.  The product requires a significant degree of "new" learning by consumers D.  The product is "new" from the organization's perspective E.  The product is "new" from a competitor's perspective

 

15.  Gillette spent $300 million in advertising to introduce the MACH3 razor to consumers. Such expenditures are often made to stimulate __________ or desire for the entire product class, rather than for a specific brand, when there are few competitors with the same product.  A.  Introductory demand B.  Primary demand C.  Discretionary demand D.  Repeat purchase E.  Secondary demand

 

16.  In the new-product process, the stage at which the product is positioned and launched in full-scale production and sales is called  A.  Screening and evaluation B.  Market testing C.  Business analysis D.  Commercialization E.  Development

17.  Which of the following would be included in a customer contact audit for the Macaroni Grill?  A.  Host/hostess seats customer B.  Food server discusses wine list with customer C.  Food is delivered to the table by kitchen staff D.  Manager stops to ask if the meal is satisfactory E.  All of the above

 

 

   FIGURE 11-2 

18. The stage in the product life cycle labeled "D" in Figure 11-2 is called A. GrowthB. IntroductionC. DiversificationD. MaturityE. Decline

 

19.  Threadless, a Chicago based t-shirt company, has become extremely successful by inviting designers to submit t-shirt designs on the Threadless.com website.  Threadless then selects some of the best designs to produce and sell.  Threadless' success can most appropriately be attributed to their innovative approach to which part of new product development?  A.  Idea generation B.  New product strategy C.  Prototype development D.  Feasibility screening E.  Market testing

 

20.  One of the primary differences between tangible goods and services involves the consumer's ability to make prepurchase evaluations. For example, consumers can quite easily make comparisons and evaluations of shoes, jewelry and skis before making a purchase. On the other hand, consumers can evaluate services such as restaurants, ski instructors and tanning salons only during or after the purchase. Based on the typology of properties of products and services discussed in the text, tangible products have more __________ properties, while services have more __________ properties.  A.  Consistent; search B.  Search; experience C.  Experience; search D.  Inconsistent; consistent E.  Consistent; inconsistent

  

21.  Leah just bought a new digital camera.  The camera has auto-flash, an LCD screen, 10 megapixels, and 15 times zoom.  Because Leah has a tendency to drop her cameras, she purchased an extended warranty.  Which level(s) of product is Leah receiving?         I.     Core     II.     Expected     III.     Augmented     IV.     Benefits     V.     Features  A.  I and II only B.  IV and V only C.  I, II, III, and IV only D.  V only E.  III only

 

22.  When the first digital camera was introduced, consumers perceived it to be a more convenient and technologically advanced version of the modern film camera.  Although some learning was required to understand all of the functions of the digital camera, consumers generally quickly adapted to it.  The digital camera is an example of which level of innovation?  A.  Cumulative B.  Dynamically Continuous C.  Continuous D.  Discontinuous E.  Scattered

 

23.  Marc has heard great things about the new restaurant in town, 10Star Pizza.  The restaurant promises great food and fast customer service.  Marc also read on their website that they have the best TVs in town and that they show all the Gator football games.  Marc decided to go to 10Star Pizza to get some food and watch the Gators play against LSU.  While there Marc enjoyed great food, served fast.  However, while enjoying the yummy pizza, he realized that the TVs were not HD and that only one of them was playing the Gator game. Overall, he left unsatisfied with his experience at 10Star. The gap between what 10Star promised on their web page and what they actually offered is termed the:  A.  Delivery Gap B.  Knowledge Gap C.  Perception Gap D.  Standards Gap E.  Communication Gap

 

24.  Recently, Chevrolet has redesigned the Camaro to try to revive one of the most popular "muscle cars" in history.  The new Camaro brought back a retro look for the body of the car, yet the inside is modern and sleek. This new Chevrolet Camaro is an example of which tactic in an attempt to extend the PLC of the Camaro?  A.  Market Penetration B.  Market Development C.  Category Extension D.  Product Modification E.  Product Repositioning

 

 

25.  The table below displays market research for the local videogame store Games R' Us.  They identified three customer groups based on the customer's buying pattern. 

CUSTOMER GROUP LOW MEDIUM HIGH# of Customers 15,000 5,000 800Visits/Month 2 3 5$ Spent/Visit $10 $20 $40Average Lifetime 1 year 3 years 7 years

In terms of Customer Lifetime Value (CLTV), what is the "Low" customer group worth to Games R' Us?  If Games R' Us was to convert 100 customers from the "Medium" level to the "High" level, how much would they gain in CLTV?  A.  $3.6 Million; $122,000 B.  $300,000; $1.46 Million C.  $300,000; $122,000 D.  $3.6 Million; $1.46 Million E.  $300,000; $146,000  

26.  Managing the demand for a service so that a sufficient supply is available to customers is called  A.  Inventory management B.  Capacity management C.  Idle production capacity D.  Customer experience management (CEM) E.  Gap analysis

 

27.  Tums, which has long been used for reducing heartburn, is now being promoted as a source of calcium for the prevention of osteoporosis. Its manufacturer is using which of the following market modification strategies?

A.  Converting users to non-users B.  Creating new use situations C.  Increasing use by existing customers D.  Modifying the product characteristics E.  Doing none of the above

 

 

28.  Sarah decides to get a massage after a long weekend, so she heads over to MassageMe Co., a highly recommended spa.  During her massage, she notices that her masseuse, whining Wendy, won't stop complaining about her day!  Sarah tries to relax but can't block out Wendy's voice.  Later, she learns that everyone who goes to MassageMe hates Wendy’s whining voice. Sarah vows never to return to MassageMe Co. again.  What is causing the dissatisfaction?  A.  Inconsistency B.  Incongruency C.  Instability D.  Intangibility E.  Inseparability

 

29.  Karsten had to buy a chair for his new office,  Karsten usually hates shopping for furniture, but this time he decided to try IKEA.  It was his first time at IKEA and he quickly noticed a few differences from traditional furniture stores.  IKEA focused on the customer by creating a complete shopping environment.  The store had several house and apartment models to display the furniture in a real life setting, cute names for all the different pieces of furniture and accessories, a play area for kids, as well as a restaurant and food store selling traditional Swedish food.  Although the chair Karsten picked was pricier than a similar model he saw in a traditional furniture store, he decided to make his purchase at IKEA, because he had such a great time shopping.  IKEA is operating at which level of market offering?  A.  Experience B.  Service C.  Commodity D.  Good E.  Specification

 

30.  The service continuum is  A.  The concept that a service is inseparable from the service provider B.  The range of organizations from nonprofit to for-profit C.  The channel from service concept, to service provider, to ultimate consumer D.  A range from tangible to intangible or from good-dominant to service-dominant offerings E.  The points along the customer contact audit

 

 

31.  Joseph is a national brand manager for Harley-Davidson.  While evaluating brand's overall performance, he learned the following information:  200 Million Consumers in the Target Market National Category Sales of $6 billion National Brand Sales of $4 billion 

Territory Category Sales # Consumers Brand SalesCalifornia $400 million 12 million $340 millionFlorida $350 million 10 million $180 millionWisconsin $100 million 5 million $80 millionTexas $220 million 8 million $200 million

Based on this information, for which of the following states should Joseph recommend:  "INVEST BUT MONITOR CATEGORY CLOSELY"?  A.  Wisconsin B.  Both Florida and Texas C.  Florida D.  Texas E.  California  

32.  Kevin owns a bicycle repair shop and he is trying to evaluate the quality of his service based on the RATER model.  Kevin knows that his employees are always cordial and confident when they deal with customers; the repair shop itself is very well-kept and cleaned every day; whenever any customer has a problem Kevin himself responds quickly and makes the customer feel cared for individually.  Which dimension has Kevin overlooked?  A.  Tangibles B.  Assurance C.  Reliability D.  Empathy E.  Responsiveness

 

33.  Which of the following is true, according to Lauren Brady, the Dazzler and Mascot coordinator?  A.  The mascots work only during UF sporting events or school functions (such as the career fair). B.  Albert and Alberta are marketing majors. C.  The image of Albert and Alberta has not changed since their creation. D.  The most important part of her job is maintaining a consistent brand image. E.  A sports marketing job is 9 to 5 and rarely involves working on the weekends.

 

34.  Which of the following is true regarding customer retention?  A.  Frequency refers to the last time a customer purchased a service or product. B.  It is cheaper to recruit new customers than to use relationship marketing to retain current ones. C.  "RFM" refers to Relationship, Frequency, Monetary Value D.  Companies should try to "migrate" customers from platinum status to gold status. E.  Long-term customers are less price sensitive than short-term customers.

 

35.  Which of the following would be considered a “product”, according to the official definition given by the American Marketing Association?     I.     Auditing and consulting provided by Ernst&Young     II.     Flexible rubber keyboard for your computer     III.     Business Plan Pro software that helps you create a business plan     IV.     A 4-night Western Caribbean cruise offered by Royal Caribbean     V.     The platform of a local politician running for mayor  A.  II only B.  II and III only C.  I and IV only D.  I, II, III, IV, and V E.  I, II, III, and IV only

36.  Which of the following is an example of an embedded stimulus, as discussed in class?  A.  Your friend sees a dog in the background of a print advertisement, but you do not see anything but trees. B.  A CD that plays at night under your pillow promises to help you learn Spanish by playing words under one's hearing threshold. C.  Actual cloud formations over the Swamp appear to some fans to look like the Heisman Trophy. D.  A beer advertisement has a picture of a topless woman airbrushed subtly but visibly into the picture. E.  A movie theater inserts the words to "buy candy" every ten seconds in a movie; each time the words appear for 1/10,000th of a second.

 

37.  ___________ is the outcome of an offer designed to motivate people to visit a business.  A.  Lead generation B.  First-mover advantage C.  Indirect order fulfillment D.  Traffic generation E.  Direct order consignment

 

38.  Margo plans to buy a new car; she sees a TV commercial for the new Aston Martin V8 Vantage that catches her attention.  She learns on the Aston Martin website that she can custom order the Vantage with pink pin stripes down the sides.  Finally, she sees another TV commercial that shows a beautiful young woman driving the Aston Martin being swept off her feet by a dashing young man.  Margo loves the commercial and it makes her feel really good about this car.  She then goes to the local dealer and orders her car with all of the features she wants.  The cost of the car comes to a grand total of $250,000.  Which theory discussed in class best explains how advertising influenced Margo?  A.  High Involvement Hierarchy of Effects B.  Dual Mediation C.  Think - Feel - Do D.  Low Involvement Hierarchy of Effects E.  Think - Do - Feel

 

39.  Nicole is the number one seller of an inventory tracking computer program used in many retail stores.  At the end of last year, she had made 1,000 calls and 400 of those calls resulted in a sale.  Her sales quota was $300,000 but she far surpassed her quota with $600,000 in actual sales.  What was Nicole's conversion rate?  A.  2.0 B.  0.5 C.  0.4 D.  2.5 E.  1.5

40.  You are working in the marketing department for Target and need to run a print advertisement in People magazine that showcases Target's 2009 Winter home goods.  You know the magazine ad will cost $234,000 and the expected number of exposures is 5 million.  Given this information, what is the ad's CPM?  A.  $0.05 B.  $21.36 C.  $2.14 D.  $46.80 E.  $0.02

41.  Mochi, a frozen yogurt chain, is opening a new location on campus and would like to use several different channels to inform students, faculty and staff of their new location.  Mochi's marketing team decides to put an advertisement in the Alligator, start a Facebook group, run a commercial on local television stations, and have a large banner in Turlington Plaza.  This collection of advertising approaches is Mochi's:  A.  Media Sources B.  Media Mix C.  Sales Promotions D.  Advertising Mix E.  Crowdsourcing

42.  The objective of institutional advertisements is to __________.  A.  Build goodwill or an image for an organization B.  Make direct sales C.  Increase frequency of purchases of new products D.  Support worthy charities E.  Increase the total amount of products used

43.  Which of the following statements describes a problem with using sex appeals in advertising?  A.  What men find sexy, women don't B.  What women find sexy, men don't C.  The sex appeal in the ad can distract the audience from the product D.  Sex appeals typically fail to gain audience attention E.  Sex appeals have no effect on senior citizens

44.  Nelson, a manufacturer of snack foods, decided to promote his new line of snacks "Gator Os."  After consulting his friend Justin, who is a student in MAR3023, Nelson learned that the most effective approach for him to take would be a Trade Promotion.  Nelson should use all of the following EXCEPT _____ to promote "Gator Os".  A.  Trade Allowances B.  Premiums C.  Co-op Advertising D.  Trade Shows E.  Dealer Contests

 

45.  Jenn is shopping in Publix and sees a huge display for Dr. Pepper.  The display has giant goal posts and Dr. Pepper bottles in the shape of footballs.  Jenn decides that Dr. Pepper would be perfect for the game this weekend.  Dr. Pepper is utilizing:  A.  TOC displays B.  POP displays C.  Product placement D.  Contests E.  Samples

46.  Minnesota Vikings quarterback Brett Favre is a celebrity endorser in a recent Sears commercial.  In the commercial he can't decide which flat-screen television to buy.  The witty commercial plays off his indecisiveness about returning to the NFL.  Although Brett Favre may not know a lot about TVs, many people like him and he can still have persuasive impact on football fans.  What source factor makes Brett Favre a good spokesperson in this commercial?  A.  Trustworthiness B.  Credibility C.  Attractiveness D.  Celebrity E.  Expertise

47.  Since she has to live on her own while studying at UF, Sharon has been trying to save money.  Sharon does not mind waiting to buy something as long as she gets a good deal on it.  When she does buy the product, she tends to stock up.  Sharon's shopping habits illustrate which explanation for why sales promotion expenditures have increased relative to advertising?  A.  Consumer accountability B.  Growing retailer power C.  Short-term focus D.  Brand proliferation or ad clutter E.  Increased promotion sensitivity

48.  In advertising scheduling, a flighting schedule combined with a steady schedule because of increases in demand, heavy periods of promotion, or introduction of a new product is called a(n):  A.  Intermittent schedule B.  Pulse schedule C.  Blitz schedule D.  Turnover schedule E.  Blast schedule

 

49.  __________ budgeting is a budgeting method which allocates funds to promotion based on some proportion of past or anticipated sales, in terms of either dollars or units sold.  A.  All-you-can-afford B.  Competitive parity C.  Objective and task D.  Relative scale E.  Percentage of sale

50.  Nike places an advertisement in Sports Illustrated magazine.  The ad promotes their new soccer cleats, and includes their signature swoosh and slogan "Just Do It!"  Based on Communication Theory, Sports Illustrated is an example of:  A.  Encoding B.  Message C.  Decoding D.  Channel E.  Source

 

51.  In a very successful YouTube.com promotional video for Blendtec, a manufacturer of kitchen blenders, Tom Dickson puts various items in a blender and proves that this machine can turn them all into smoothies. This blender has managed to annihilate iPods, full bottles of beer, a golf club and a broom handle.  This "Will It Blend?" video is fascinating to watch and also easy to send to your friends.  Millions of people around the globe have watched an iPod turned to dust by this blender.  Will It Blend? has become a household term, a result of _____, which is a type of _____.  A.  Guerrilla Marketing, Consumer-Generated Media B.  Product Placement, Integrated Marketing Communication C.  Viral Marketing, Promotional "Mix" D.  Guerrilla Marketing, "Crowdsourcing" E.  Viral Marketing, Branded Entertainment

 

52.  Mary's Cookies submitted an ad to the local newspaper with a coupon stating that a dozen cookies were $2.99. Instead the newspaper printed the price on the coupon as $29.99. Consequently Mary did not have any customers come in to buy cookies by using the coupon. The factor working against effective communication between Mary and her target market in this case is called:  A.  A source inconsistency B.  Feedback C.  An encoding bottleneck D.  Noise E.  A communication barrier

 

53.  Elizabeth is an avid coffee drinker.  Recently, she has decided to evaluate the local coffee shops in Gainesville to choose the one that suits her needs the best.  She has evaluated each coffee shop on the following attributes:  economical, variety, atmosphere and promotions.  In the right column, Elizabeth has rated the importance of each attribute, also using a 10-point scale. Attribute         Maude's    Dunkin Donuts    Bay Island    Importance Economical          9                    7                        8                 9 Variety                 8                    5                        9                 4 Atmosphere         7                    9                        7                 6 Promotions          5                    6                        4                 2 What promotional strategy should Dunkin Donuts use to maximize its likelihood of attracting Elizabeth's business?  A.  Increase Dunkin Donuts rating on variety B.  Increase Dunkin Donuts rating on atmosphere C.  Increase Dunkin Donuts rating on economical D.  Increase the importance of promotions to Elizabeth E.  Increase the importance of the atmosphere  

54. Which of the following activities is NOT typically a responsibility of an order taker? A. Processing of routine ordersB. Answering simple questionsC. Replenishing inventory of resellersD. Soliciting new accountsE. Completing customer transactions

 

55.  Which of the following is an example of an independent and personal source of product information? I. A salesperson working for AT&T knocks on your door and tries to sell you a new "upgrade" to

your current cell phone planII. A newspaper publishes an article on the newly released Nissan MaximaIII. A "Personalized M&Ms" website allows you to choose a color, print a message, or feature a

picture of yourself on M&Ms candyIV. Your girlfriend praises the new Buddy's Bar-B-Q restaurant she visited in North CarolinaV. The Dove "Evolution" video on YouTube.com, a self-esteem boosting promotion launched by

Dove company, generated over 44,000 views the first day of release and more than 1.7 million

views the first month  A.  V only B.  I, IV, and V only C.  IV and V only D.  II and V only E.  IV only

56.  Which of the following does NOT illustrate one of the distinguishing characteristics of relationship selling?

A.  Peter asks questions to determine the wants and needs of his client. B.  Jackie compliments the client at the start of the conversation to build good will. C.  Timmy listens more than he talks when dealing with clients. D.  Justin studies his client's industry to better understand how he can help them achieve their goals. E.  Andrea calls her client to make sure the order was delivered on time and to their satisfaction.

 

57. Sales management is most accurately defined as the A. Recruiting, hiring or firing and training of a company's sales forceB. Process of assigning territories and providing appropriate compensation for sales force performanceC. Allocation of funds for promotion and advertisingD. Segmentation and selection of target markets to be addressed by a company's sales forceE. Planning of the selling program and implementing and evaluating of the personal selling effort of the firm

 

58.  When a sales clerk at Target spends 30 minutes demonstrating the superiority of Pampered Chef cooking products to a group of shoppers, she is engaging in:  A.  A public service announcement B.  Direct marketing C.  Personal selling D.  Sales promotion E.  Public relations

59.  A salesperson asking other people who know a new prospect of hers if the prospect likes to talk about sports before getting down to business or prefers to waste no time with idle chatter is in the __________ stage of the personal selling process.  A.  Approach B.  Presentation C.  Preapproach D.  Closing E.  Prospecting

60.  Which of the following types of promotion is most likely to use customized interaction?  A.  Advertising B.  Publicity C.  Public relations D.  Direct marketing E.  Sales promotion

 

61.  CitiSync is looking to expand to college towns across the nation, but they first need to decide how many salespeople to hire.  They know that they are going to be calling on about 20,000 customers across the country. They think they will call on each customer about 40 times per year with the average call lasting approximately 15 minutes.  The average amount of salesperson selling time per year will be 2000 hours.  Based on the workload method, how many salespeople should CitiSync hire?  A.  83 B.  150 C.  100 D.  6000 E.  60

 

62.  Magazine World trains their sales representatives to sell advertising space to local and national companies. Before the sales reps can go into the field, they are required to attend a two-week training program in Atlanta. There they are taught what Magazine World believes to be the best sales presentation format, wherein the reps are to listen and determine the prospects' wants and needs before making any selling points.  The sales presentation completely revolves around the customer.  Which sales presentation format best describes Magazine World's approach to selling?  A.  Foot-in-the-Door B.  Formula C.  Prospecting D.  Outlined Presentation E.  Adaptive Selling

63.  When the Tallahassee newspaper reported that over half the FSU football team cheated on their SATs, the university athletic department issued a press release attempting to clarify the situation.  According to the press release, the players weren't "cheating" -- they were exhibiting good "teamwork".  The press release is an example of _____; the newspaper article is an example of _____.  A.  Publicity; Public Relations B.  Public Relations; Viral Marketing C.  Public Relations; Publicity D.  Public Relations; Public Relations E.  Publicity; Publicity

 

64.  In the upcoming movie, "Wedding Crashers 2", Tiffany & Co. wants their brand to appear in the movie, with hopes that this will catch women's attention and remind them that there is no engagement ring like one from Tiffany's.  Tiffany's has negotiated with the movie producers and has agreed to give the producers several pieces of expensive jewelry for the lead actress to wear in the movie.  What kind of product placement deal are "Wedding Crashers 2" producers and Tiffany & Co. making?  A.  Barter B.  Pay-off C.  Straight Fee D.  Bling Fee E.  Reciprocal

65.  For her birthday, Emily's parents bought her a brand new Mac Notebook from the local Best Buy store.  A couple of days after their purchase, Emily's household received a large envelope in the mail from Apple. Enclosed in the envelope was a personalized belated happy birthday card for Emily, in addition to a pamphlet explaining the special features of a Mac Notebook and a 10% off coupon for her next Best Buy purchase.  The advertisement sent to Emily by Apple is trying to accomplish what advertising task?  A.  Inform B.  Persuade C.  Sell D.  Reinforce E.  Remind

66.  Sarah has been waiting months and months for Michael Buble's new album "Crazy Love" to be released. Sarah is a huge Buble fan and cannot wait to get her hands on his new record.  For the big release, Warner Brothers Records is throwing a huge party where fans like Sarah can come dressed in their 1950's best, drink cocktails, and listen to music from legends like Frank Sinatra, Dean Martin, Nat King Cole, and Michael Buble himself.  At the party, fans will be able to purchase "Crazy Love" when the clock strikes midnight.  Warner Brothers is using:  A.  Viral Marketing B.  Guerrilla Marketing C.  Event Marketing D.  Product Placement E.  Sponsorship

 

67.  __________ is defined as the number of different people or households exposed to an advertisement at least once.  A.  Scope B.  Share C.  Rating D.  Frequency E.  Reach

68. Missionary salespeople are A. People on the selling team who are responsible for obtaining qualified leadsB. Sales support personnel who do not directly solicit orders but rather concentrate on performing promotional activities and introducing new productsC. Salespeople who specialize in identifying, analyzing and solving customer problems, but who do not actually sell products and servicesD. Salespeople who process routine orders for products that are presold by the companyE. Salespeople who identify prospective customers, provide customers with information, persuade customers to buy, close sales and follow up on a customer's use of the product or service

69. Marginal cost is the change in total cost that results from A. Producing and marketing one additional unit of productB. Increasing the number of products in a product lineC. Eliminating a brand from a product lineD. Increasing the number of units produced by fifty percentE. Reducing the total number of units produced

70.  Which term describes factors that affect price and include such things as newness of the product, whether it is part of a product line, and cost of changing a price?  A.  Price fixings B.  Pricing demands C.  Pricing margins D.  Pricing constraints E.  Price elasticities

71.  Harry's Hamburger Joint sells the best hamburgers in Gainesville.  Harry decides to open a new location on University Avenue.  However, because of the higher rent on University Ave., Harry needs to price his hamburgers differently.  Harry's total annual fixed costs at the new location are $50,000; his unit variable cost for his hamburgers is $2.50; and he plans to sell 20,000 hamburgers a year.  If Harry wanted to earn a target profit of $20,000, how much should he charge for a hamburger?  A.  $6.00 B.  $9.00 C.  $5.00 D.  $3.50 E.  $10.00

72. Which cost-based pricing method entails adding a fixed percentage to the cost of all items in a specific product class? A. Demand backward pricingB. Standard markup pricingC. Cost-plus fixed-fee pricingD. Target profit pricingE. Experience curve pricing

73.  Leah owns a small kiosk where she sells sunglasses.  She sells a pair of Ray-Ban Wayfarers for $200.  Leah uses a markup of 20%, and buys the Wayfarers from a distributor.  The distributor uses a 60% markup and buys the Wayfarers directly from Ray-Ban.  What price does Ray-Ban charge the distributor for the Wayfarers? (round to nearest dollar)  A.  $104 B.  $111 C.  $86 D.  $66 E.  $64

74. A demand curve shows A. The total sales for specified product lines, usually over a three-year periodB. The opposing axis on a profit equation projectionC. Anticipated marginal revenue obtained under specified customer demand conditionsD. A maximum number of products consumers will buy at a given priceE. The total number of buyers for all products in a particular industry

75.  One problem in the interstate trucking industry is the number of trucks that return empty after making a delivery. There is a website where independent interstate truckers can look for loads that they can carry on their return trip. Truckers who use this website to get business that they would not have had otherwise charge a reduced shipping rate. This reduced rate is an example of  A.  Penetration pricing B.  Cost-plus pricing C.  Target pricing D.  A reverse auction E.  Yield management pricing

76.  Carl, an avid sports fan and cat lover, was watching TV late one night when an infomercial came on for the new Collegiate Snuggies for Cats.  The infomercial showed a cat and his owner both in UF Gator Snuggies with a price flashing in the corner of the screen saying that the cat Snuggie was a $30 value but if he called in the next twenty minutes and ordered one for the amazing low price of $12.99, he would get a second cat Snuggie for free!  Feeling like he should take advantage of this great deal, Carl immediately pounces on the deal, picks up the phone, and orders the Snuggies for his twin cats, Mike and Maurkice.  The $30 price shown in the commercial is the:  A.  Bait-and-Switch Price B.  Value Price C.  External Reference Price D.  Internal Reference Price E.  Hairball Price

77. Mrs. Renfro's, Inc., is a company that sells 25 different relishes in 45 different states. Mrs. Renfro's chipotle corn salsa is so popular that the company cannot make enough to keep its resellers stocked. Its price of $4.50 for a jar seems just right to consumers who savor its hot and spicy taste. The popularity of hot and spicy food is an example of a(n) __________ that Mrs. Renfro's has used to make its product a success. A. Demand factorB. Consumer indexC. Supply factorD. Exchange parameterE. Macroeconomic environmental factor

 

78.  Cory owns a building in Gainesville that he rents out to a fraternity.  No matter how many brothers live in the house, his total fixed costs are $36,000 per month.  The monthly variable cost per room is $100.  The house has 50 single-occupant rooms.  During the Fall, the house is fully occupied; however, five brothers are graduating in December and will be moving out.  Given this information and assuming the five brothers graduate, what is Cory's breakeven monthly rental price during the Spring?  (round to the nearest dollar)  A.  $100 B.  $900 C.  $911 D.  $820 E.  $802

 

79.  Central Ice Machine Company is located in Omaha, Nebraska and sells Frick, Sullair, York and Fes Fuller ammonia refrigeration parts. The company ships using FOB origin pricing. Which of the following statements about the shipment of a Frick reciprocating compressor is true?  A.  It will cost Central Ice Machine more to ship to Charlotte, North Carolina, than to Topeka, Kansas B.  A buyer in Albany, New York, will pay significantly more shipping charges than a buyer in Lincoln, Nebraska and Central Ice Machine will pay none C.  All buyers will pay no shipping costs because they are paid by Central Ice Machine D.  Central Ice Machine pays the same amount as the buyer no matter where the compressor is shipped E.  All buyers will pay the same shipping costs and Central Ice Machine will pay none

80.  Schmirardelli Chocolate Company, a relatively unknown firm, has developed a new type of chocolate that actually makes people lose weight!  There have been numerous tests done to prove these claims and extensive media coverage of this new chocolate.  With all of the hype surrounding the launch of their new chocolate, Schmirardelli has found that the demand for it is extremely inelastic, so they decide to set a relatively high price at first and then reduce it over time.  Which demand-oriented pricing approach does this represent?  A.  Penetration Pricing B.  Prestige Pricing C.  Skimming Pricing D.  Price Lining E.  Inelastic Pricing

81.  Mario moves to Gainesville, and wants to open a new pizza restaurant.  After buying the old Mellow Mushroom on University Avenue, Mario feels that his new restaurant "Mario's Pizza," will be able to compete against the ever popular Leonardo's pizza restaurant.  Below are the following benefit ratings based on customer ratings of both pizza brands:                                             Leonardo's        Mario's            Importance Freshness                                   6                      5                      9 Timely Service                  4                      8                     7 Portion Size                       9                  4                      7 Tasty Crust                            8                  9                      4 In the first year, Mario plans on sharing the market equally with Leonardo, and is thus focused on parity pricing.  If Leonardo's is charging $4 per slice, how much should Mario charge?  A.  $3.73 B.  $4.00 C.  $4.29 D.  $4.15 E.  $3.85

82.  Dominos Pizza decides to lower its prices, as compared to Five Star, in order to entice a greater proportion of customers to buy their pizza instead of Five Star's.  Many UF students who normally buy their midnight pizza snack from Five Star decide to purchase from Dominos instead.  What type of pricing objective did Dominos use?  A.  Social responsibility B.  Market share C.  Stability D.  Survival E.  Profits

83.  A local store is trying to price their exclusive new teddy bear called, "Timmy Teddy".  The store's manager has a one-year plan for the store to earn a 25% return on investment (ROI) on its investment in new equipment of $100,000.  In the plan, the store is set to manufacture 1,500 units of "Timmy Teddy".  If the store's annual fixed costs are $50,000 and unit variable costs are $5 to build a "Timmy" bear, what price should the store charge to earn a 25% ROI?  A.  $105.00 B.  $21.67 C.  $50.00 D.  $100.00 E.  $55.00

84. Vending machines are a good example of the application of what type of competition-based pricing? A. Customary pricingB. Penetration pricingC. Above-, at-, or below-market pricingD. Loss-leader pricingE. Bundle pricing

  

Fall 09 Midterm 2 Key

1. (p. 257) D 2. (p. 302) C  3. (p. L59) A 4. (p. 255) E  5. (p. 286) C  6. (p. 265) D 7. (p. L58) E  8. (p. L52) E 9. (p. L62) D 10. (p. 258; Fig 10-2) C 11. (p. L62) B 12. (p. L57) C  13. (p. 287) C  14. (p. 259) E 15. (p. 281) B 16. (p. 272) D 17. (p. 316) E  18. (p. 282) E 19. (p. L61) A 20. (p. 315) B  21. (p. L51) A 22. (p. L61) B  23. (p. L68) E 24. (p. L55) D 25. (p. L68) D 26. (p. 319) B 27. (p. 288) B  28. (p. T310) E 29. (p. L70) A 30. (p. 311) D   

31. (p. L56) D 32. (p. T316) C 33. (p. 10/5, first hour) D 34. (p. L68-69) E 35. (p. L54) D 36. (p. L79) D 37. (p. 482) D 38. (p. L78) B 39. (p. L87) C 40. (p. L80) D

41. (p. L80) B

42. (p. 491) A

43. (p. 495) C

44. (p. L81) B 45. (p. T510,512) B

46. (p. L73) C

47. (p. L81) E 48. (p. 506) B 49. (p. 476) E

50. (p. L72) D 51. (p. L72) E 52. (p. 466) D 53. (p. L75) C 54. (p. 525) D 55. (p. L73) E

56. (p. L86) B 57. (p. 522) E 58. (p. 467) C

59. (p. 529 - 530) C

60. (p. 466) D 61. (p. T537-538) C 62. (p. L85) E

63. (p. L71) C 64. (p. L71) A

65. (p. L78) D

66. (p. L71) C 67. (p. 498) E

68. (p. 526) B

69. (p. 345; Fig. 13-8) A

70. (p. 336) D

71. (p. L105) A

72. (p. 360) B

73. (p. L108) E

74. (p. 339) D

75. (p. 359) E

76. (p. L101) C

77. (p. 340) A

78. (p. L103) B 79. (p. 372) B

80. (p. T356) C

81. (p. L109) A

82. (p. T336) B

83. (p. L105-106) E

84. (p. 364) A