Quizzes 1-18 FINAL REVEIW

Question 1

Measuring the WOW Factor is a useful approach for testing new ideas. The Six Thinking Hats framework provides a useful process for drilling down on the WOW Factor because the results:
A)Identify key positive and negative aspects about product alternatives
B )Provide a quick gut-feel WOW Factor score
C) Offer guidance about how to best move forward with the new idea or how to best nove forward to find another idea
D) All of the above

Answer 1

D) All of the above

Question 2

Broad thinking, opportunistic entrepreneurs (oysters):
A) Consider customer pain points with no particular product category in mind
B) Leverage expertise or passion in a specific category or industry
C) Look for big market opportunities, then uncover associated pain points
D) A and B are correct
E) A and C are correct

Answer 2

E) A and C are correct

Question 3

Puj Tub is a low cost alternative for washing slippery infants that really works and is easy to store. The entrepreneurs, who developed this new product, found the idea by:
A) Solving everyday pain
B) Riding a wave of interest
C) Stretching or entertaining an idea to the extreme
D) Cool hunting in foreign markets
E) All of the above

Answer 3

A) Solving everyday pain

Question 4

Jibbitz for Crocs is a good example of finding a new idea by:
A) Stretching or entertaining an idea to the extreme
B) Finding products in foreign markets
C) Solving everyday pain
D) Riding a wave of interest
E) None of the above

Answer 4

D) Riding a wave of interest

Question 5

After completing her undergraduate degree in business, Megan spent five years working in the financial services industry. Next, Megan became a focused entrepreneur (eagle) by:
A) Leveraging expertise and passion in financial services
B) Searching familiar landscape in financial services for pain points
C) Taking a narrow focus–financial services
D) All of the above
E) None of the above

Answer 5

D) All of the above

Question 6

For successful entrepreneurs, working smarter, not harder and leveraging leverage are about:
A) Finding people who can help you succeed
B) Hoping the buyout pays off in the end
C) The mechanical advantages of a lever
D) The use of non-financial instruments
E) The increase in force gained by a lever

Answer 6

A) Finding people who can help you succeed

Question 7

According to research about the diffusion of innovations, which product characteristic(s) must stand out for attracting innovators (beta customers)?
A) Distinct advantage relative to alternatives
B) Fit with a customer’s current way of doing things or daily routine
C) Usability–relatively easy to understand and use
D) All of the above
E) None of the above

Answer 7

D) All of the above

A) Distinct advantage relative to alternatives
B) Fit with a customer’s current way of doing things or daily routine
C) Usability–relatively easy to understand and use

Question 8

The segmentation concept of Love, Swing, and Hate groups:
A) Does not fit the entrepreneurial mindset
B) Is outdated
C) Is important to entrepreneurs because of the important role of the love group in growing a startup business
D) Cannot be measured or accessed by entrepreneurs
E) Is better left with politicians

Answer 8

C) Is important to entrepreneurs because of the important role of the love group in growing a startup business

Question 9

Sales to innovators can get a new business going. Although innovators want the next new product, they fear they can’t afford it. Entrepreneurs can attract innovators by:
A) Making them product-development partners
B) Conducting competitive intelligence
C) Scanning the landscape for potential competitors
D) Limiting the number who can purchase
E) Seeking non-traditional vendors

Answer 9

A) Making them product-development partners

Question 10

For entrepreneurs, a key question to ask when seeking to identify benefactors is:
A) Who will benefit most if I succeed?
B) Who can fight off intense competition?
C) What are the healthcare benefits for my employees?
D) When are my personal benefits vested with the company?
E) Who is an expert in employee benefits?

Answer 10

A) Who will benefit most if I succeed?

Question 11

Successful entrepreneurs create buzz for their companies and products by:
A) Aggressive advertising
B) Creating and doing marketing events
C) Using billboards
D) Selecting radio spots
E) None of the above

Answer 11

B) Creating and doing marketing events

Question 12

Some entreprenuers are so focused on building a better product that they do not spend enough effort on:
A) Listening to critics
B) Making proper investments to enhance product features
C) Selling it
D) Competitive intelligence
E) Outsourcing activities

Answer 12

C) Selling it

Question 13

One of the first American companies to leverage the power of the Love Fest is Harley Davidson (H.O.G. – Harley Davidson Owners Group). A Love Fest enables Harley Davidson to:
A) Create opportunities for best customers to “share the love” of Harley Davidson products.
B) Let their customers sell for them.
C) Connect with people who like festive events
D) A and B
E) B and C

Answer 13

D) A and B

Question 14

When the Harry Potter books were first released, many bookstores across the globe held midnight release parties.  Fans of the series gathered together in costumes to celebrate the new books?  Which launching technique did Harry Potter books use?
A) Closing sales
B) Marketing events
C) Sticky branding
D) Jingles
E) Catch phrase

Answer 14

B) Marketing events

Question 15

A popular cookware store hosts a cookie contest every November featuring their popular mixer. Targeted customers (home bakers and cookie lovers) share recipes and cooking tips. The popular mixer takes center stage in a beautiful, up-to-date kitchen. Prizes are awarded and all customers receive a sample Christmas cookie. This marketing event does all of the following EXCEPT:
A) Making sure the product takes center stage
B) Making it gorgeous–event quality reflects product quality
C) Connecting the event to a local cause
D) Sending home gifts to brand the experience
E) Targeting the event to fit a specific audience

Answer 15

C) Connecting the event to a local cause

Question 16

Three types of people that help entrepreneurs act big are connectors, mavens, and salespeople. Mavens are particularly important because they are:

Answer 16

Information specialists

Question 17

A useful approach for planning and measuring potential customer touch points is:

Answer 17

Understanding the steps in the customer experience–from problem recognition to evaluation

Question 18

By giving personal attention, startup businesses can make the sale with touch points. People buy from people they know. People buy from people they like. But most importantly, people buy from people they:

Answer 18

Trust

Question 19

Smart, successful entrepreneurs know how to think big and act big. They also know when and where to act big—in front of customers and prospects. Josh James and John Pestana, cofounders of Omniture, found that the best venue for Omniture to act big was:

Answer 19

At trade shows

Question 20

Great ideas enable entrepreneurs to act big, if they communicate the great ideas to customers. Covey Leadership muddled along for years until they found a big way to communicate their great ideas. They did this by:

Answer 20

Writing a book

Question 21

Although economists view markets as structures that allow buyers and sellers to engage in exchange, marketers focus on:
A) Products and services of the exchange
B) Pricing of the exchange–penetration versus skimming
C) Geography of the exchange–domestic and global
D) Competitors in the exchange–substitutes and threats
E) People of the exchange–buyers and sellers

Answer 21

E) People of the exchange–buyers and sellers

Question 22

Bulgaria sells fashionable and expensive jewelry, watches, and leather goods. What type of income is used to purchase expensive jewelry and other luxury products?
A) Gross income
B) Disposable income
C) Discretionary income
D) General income
E) Benchmarking income

Answer 22

C) Discretionary Income

Question 23

In the consumer behavior process, problem recognition is caused by:
A) A discrepancy between a person’s actual state and desired state
B) A discrepancy between information search and evaluation of criteria
C) A discrepancy between post-purchase evaluation and consumption
D) A disrepancy between internal sources and external sources of information
E) Using the multi-attribute attitude model

Answer 23

A) A discrepancy between a person’s actual state and desired state

Question 24

A marketing insight is a deep understanding of consumer attitudes and beliefs that has power to shape consumer behavior. Marketing insights have limitations because:
A) People are not all the same
B) People make decisions based on the situation
C) People seek high involvement products using routine problem solving
D) Both A and B are correct
E) Both A and C are correct

Answer 24

D) Both A and B are correct

Question 25

While on a trip to Hollywood, California, Samantha saw Selena Gomez (the actress and recording artist) buying a jacket from H&M.  As soon as she had the chance, Samantha purchased the same style jacket from H&M.  Which factor influenced Samantha's buying behavior?
A) Cultural
B) Social
C) Psychological
D) Individual
E) Collective

Answer 25

B) Social

Question 26

Kentucky Fried Chicken, a U.S. based company, entered the China market by combining efforts with two Chinese companies--Beijing Corporation of Animal Production, Processing, Industry, and Commerce and Beijing Travel and Tourism Corporation. Each company owns shares in the new business called Beijing Kentucky Company, Ltd. This is an example of which global market entry strategy?
A) Exporting
B) Licensing
C) Joint Venture
D) Foreign Direct Investment
E) International marketing

Answer 26

C) Joint Venture

Question 27

Birkenstock, a German footwear company, manufactures and sells a variety of sandals and shoes noted for their footbed. All of the products offered by Birkenstock represent the company's:
A) Product Item
B) Product Line
C) Product Life Cycle
D) Product Mix
E) Augmented Product

Answer 27

D) Product Mix

Question 28

The number one reason new products fail is because:
(A) The selling firm uses unethical tactics
(B) The competitors’ responses are intense
(C) The firm selects the wrong channels of distribution
(D) The firm fails to understand market opportunity and potential
(E) They don’t deliver benefits to the consumer–functional and emotional

Answer 28

(E) They don’t deliver benefits to the consumer–functional and emotional

Question 29

Sociologist Everett Rogers created five categories of product adopters based on time to adopt new products and services. What name (and percent of population) did Rogers use to classify adopters who are the first to try new ideas, usually have more money and education than the general population, as well as a higher-than-average tolerance for risk?
A) Innovators (2.5%)
B) Early adopters (13.5%)
C) Early majority (34%)
D) Late majority (34%)
E) Laggards (16%)

Answer 29

A) Innovators (2.5%)

Question 30

Marketing employs some of the most sophisticated analytical methods used in business. Suppose your client provides you a data set of survey responses from credit card users and asks you to identify market segments based on the data. Which analytical method is most useful for this research project--classifying credit card users into various segments based on how they respond to demographic and behavioral questions?
A) MaxDiff analysis
B) Cluster analysis
C) Conjoint analysis
D) Factor analysis
E) TURF analysis

Answer 30

B) Cluster Analysis

Question 31

Suppose Home Depot is planning a TV advertising campaign to target do-it-yourselfers who do maintenance projects on their house, condo, or other dwelling unit they own. To find such information, the Home Depot marketing research team begins by using data from the US Census Bureau. This is an example of:
A) Primary data
B) Secondary data
C) Observational data
D) Convenience data
E) Dichotomous data

Answer 31

B) Secondary data

Question 32

Frito-Lay produces more than 20 varieties of chips. Suppose a retail store offers to stock five of Frito-Lay chips products in each store across the country. Which marketing research technique would you recommend Frito-Lay use to determine the optimal variety of chips to stock in each store?
A) Cross tabs
B) Analysis of variance
C) Regression analysis
D) TURF analysis–Total Unduplicated Reach and Frequency
E) Conjoint analysis

Answer 32

D) TURF analysis- Total Unduplicated Reach and Frequency

Question 33

Often the reason research results are invalid is because the data sample is irrelevant–coverage error. To minimize coverage error, researchers should:
A) Qualify or screen respondents for the study
B) Conduct focus group interviews
C) User personal interviews
D) Open the research to the general population
E) Increase the sample size by using Web and email questionnaires

Answer 33

A) Qualify or screen respondents for the study

Question 34

In short, the primary purpose of marketing research is to:
A) Use sophisticated analytical tools on large data sets
B) Collect data about customers
C) Collect data about competitors
D) Forecast sales
E) Support marketing decisions

Answer 34

E) Support marketing decisions

Question 35

When Nestle entered India with package goods products, the company changed the packaging and pricing for many products to adapt to Indian customers. This is an example of:
A) Standardization
B) Customization
C) Realization
D) Commoditizing
E) Humanizing

Answer 35

B) Customization

Question 36

When The Clorox Company purchased the right to manufacture and sell products under the Brita name in the United States, Clorox entered into a(n) \_\_\_\_\_\_\_\_\_ agreement with Brita GmbH.
A) Exporting
B) Licensing
C) Joint Venture
D) Foreign Direct Investment
E) Dyadic

Answer 36

B) Licensing

Question 37

The most critical stage of the new product development process is the concept testing stage because:
A) Type I and Type II errors can be estimated
B) All elements of the marketing mix are tested
C) Profit projections, including sales forecasts and costs, are estimated
D) Product development begins in earnest
E) This is the first time the idea is tested with potential customers

Answer 37

E) This is the first time the idea is tested with potential customers

Question 38

Considering a product’s competitive angle, _______________ is about finding significant pain points that are personally relevant to the target audience while _______________ is about demonstrating product-solving benefits.
A) Need to Believe, Reason to Believe
B) Reason to Believe, Dominate Situations
C) Dominate Situations, Quantifiable Support
D) Quantifiable Support, Unique Product Claim
E) Unique Product Claim, Need to Believe

Answer 38

A) Need to Believe, Reason to Believe

Question 39

The global marketing strategy based on a standard platform combined with some modification for the market is called:
A) Global
B) Glocal
C) International
D) Multinational
E) Galactic

Answer 39

B) Glocal

Question 40

For the United States, people born during the same time period and who share similar life experiences represent:
A) Demographics
B) Psychographics
C) Generational cohorts
D) Comrades
E) Power of buyers

Answer 40

C) General cohorts

Question 41

Bulgaria sells fashionable and expensive jewelry, watches, and leather goods. What type of income is used to purchase expensive jewelry and other luxury products?
A) Gross income
B) Disposable income
C) Discretionary income
D) General income
E) Benchmarking income

Answer 41

C) Discretionary Income

Question 42

McDonald's serves approximately 68 million customers each day in 119 countries. The domestic consumer trend of eating healthier and consuming less fast food challenges McDonald's financial performance. This is an example of whcih part of the SWOT analysis?
A) Strength
B) Weakness
C) Opportunity
D) Threat
E) Option

Answer 42

D) Threat

Question 43

Mala is marketing manager for a new line of Indian food. The company wants to launch this new line in the U.S. Mala knows that social forces affect consumers' attitudes, beliefs, lifestyle, and ultimately consumption behavior. Which social force has the most influence on Mala's new product line--affecting what people eat?
A) Culture
B) Demographic
C) Generational cohorts
D) Economic
E) Regulatory

Answer 43

A) Culture

Question 44

Sven, a research analyst for Unilever, has been gathering information about age, gender, and income for the Scandinavian market--Sweden, Norway, Denmark, and Finland. Sven is gathering:
A) Demographics
B) Psychographics
C) Generational cohorts
D) Economics
E) Political preferences

Answer 44

A) Demographics

Question 45

The overall attractiveness of a foreign market depends on the risks and rewards of conducting business in the country of interest.  Inadequate protection of intellectual property in a number of developing countries has caused some U.S. companies to avoid certain foreign markets because of the \_\_\_\_\_\_\_\_\_\_\_\_ risk.
A) Competitive
B) Economic
C) Legal
D) Political
E) International

Answer 45

C) Legal

Question 46

Landyachtz recently launched a new Slide Glove for longboarders--Ly Leather Slide Gloves. The local market segment consists of a few longboarders in Provo Canyon. Retailers in the Utah market are worried that the segment size is not large enough to make this product profitable. Which characteristic of effective segmentation is lacking?
A) Substantial
B) Accessible
C) Measurable
D) Durable
E) Unique Needs

Answer 46

A) Substantial

Question 47

Market segmentation is the process of grouping customers into relatively homogeneous sets or segments such that customers within a segment are similar to one another in:
A) Age and psychographics
B) Family and cultural situations
C) Their frequency of purchase
D) Geographic location
E) The way they respond to the marketing effort directed torward them

Answer 47

E) The way they respond to the marketing effort directed torward them

Question 48

Perceptual maps show the judgments customers make regarding the performance of a brand’s features and benefits. Gap analysis extends the perceptual maps method by asking customers to make judgments regarding:
A) Cultural differences among consumers
B) The importance of a brand’s featurers and benefits to the buying decision
C) Psychological differences among consumers
D) The performance of competitive brands
E) The performance of external forces in the environment

Answer 48

B) The importance of a brand’s featurers and benefits to the buying decision

Question 49

Why doesn’t “me too” positioning work as a value positioning strategy?
A) The positioning approach does not give consumers a reason to change
B) Competitors are just too difficult to copy
C) Competitors may have lower cost structures
D) Imitation is the sincerest form of flattery
E) Customers want consistency among competitors

Answer 49

A) The positioning approach does not give consumers a reason to change

Question 50

Product positioning is:
A) A careful analysis of cross tabulations
B) Shelf size and location in major retail chains–grocery and department stores
C) Geographic segmentation, often within major metropolitan and suburban areas
D) The place a product occupies in the target customers’ minds
E) What marketers do to a product

Answer 50

D) The place a product occupies in the target customers’ minds

Question 51

One of the challenges for department stores like Nordstrom is the potential for service variability—services depend on who provides them and when and where they are provided. The marketing solutions for variability are:

A) Training and standardized processes
B) Demand estimation and hiring ahead of demand
C) Physical evidence and quality
D) Tangible cues and tangible evidence
E) Augmented services

Answer 51

A) Training and standardized processes

Question 52

Southwest Airlines faces the service challenge of perishability because the airline cannot save seats from an empty afternoon flight for a full flight in the evening. To overcome this service challenge, Southwest:

A) Buys more airplanes from Boeing and Airbus
B) Attempts to manage fluctuating demand or seeks to match supply with changing demand
C) Provides more training for frontline employees
D) Hires “Fox” employees to handle problems quickly
E) Changes the physical environment of the airport gate to provide tangible cues

Answer 52

B) Attempts to manage fluctuating demand or seeks to match supply with changing demand

Question 53

The marketing mix for services includes the 4P’s of marketing (product, price, place, and promotion), plus:
A) Processes, physical environments, and potential customers
B) People, perishability, and personality
C) Political environment, physical environment, and personal environment
D) People, process, and physical environment
E) People, politics, and psychology

Answer 53

D) People, process, and physical environment

Question 54

Compared to product marketing, services marketing poses unique challenges for marketing managers because unlike products, services are:
A) Intangible, insparable, variable, and perishable
B) Difficult to price
C) Unique and engaging
D) Part of the human resources function of the firm
E) Both high and low involvement

Answer 54

A) Intangible, insparable, variable, and perishable

Question 55

Which determinant of service quality shows the strongest influence on customers' perceptions of service quality?
A) Reliability
B) Assurance
C) Tangibles
D) Empathy
E) Responsiveness

Answer 55

A) Reliability

Question 56

Channel members (intermediaries) make the selling of products more efficient by:
A) Maximizing the number of contacts necessary between producers and consumers
B) Identifying target markets
C) Reducing manufacturing costs
D) Reducing the number of contacts between producers and consumers
E) Eliminating inventory costs

Answer 56

D) Reducing the number of contacts between producers and consumers

Question 57

Channel members can affect customer value by:
A) Reducing non-price costs
B) Improving image
C) Delivering service
D) Enhancing the product
E) All of the above
F) None of the above

Answer 57

E) All of the above

Question 58

Cabela’s consciously designs retail space to orchestrate various dimension of the store—layout, color, sounds, and signage—to appeal to consumers’ emotions and encourage buying. This is called:
A) Atmospherics
B) Wheel of retailing
C) Location, location, location
D) Retail control
E) Sales promotion

Answer 58

A) Atmospherics

Question 59

Candy bars such as "Snickers" are best sold using which type of distribution?
A) Intensive distribution
B) Selective distribution
C) Exclusive distribution
D) Dual distribution
E) Minimized distribution

Answer 59

A) Intensive distribution

Question 60

Nestle promotes Kit Kat chocolate treat to the final consumers with the expectation that the final consumers will demand the product from retail stores. Then the retail stores will request Kit Kat from Nestle. This is an example of:
A) Push strategy
B) Pull strategy
C) Physical strategy
D) Preventive strategy
E) Progressive strategy

Answer 60

B) Pull strategy

Question 61

While watching Monday Night Football, Landon noticed an ad for a new brand of deodorant bodyspray. Although Landon had never heard of this particular brand, the ad made him aware of the brand and, by the end of the ad, Landon was favorably disposed to the brand. Which two objectives did this ad accomplish?
A) Cognitive and behavioral
B) Behavioral and affective
C) Push and pull
D) Cognitive and affective
E) Preventive and preemptive

Answer 61

D) Cognitive and affective

Question 62

Which sales promotion method is best for building brand loyalty?
A) Value-added promotions
B) Price promotions
C) Trade promotions
D) Coupons
E) Interactive promotions

Answer 62

A) Value-added promotions

Question 63

Marketing managers (on the business side) communicate advertising strategy to advertising agencies (on the creative side) using:
A) Creative briefs
B) Media buying
C) Sales promotions
D) CPM--cost-per-thousand impressions
E) Social media

Answer 63

A) Creative briefs

Question 64

Advertising effectiveness is measured by:
A) The amount of humor and the level of entertainment
B) Brand legacy
C) Recall (remember the ad and the advertiser) and persuasion (remember the benefit)
D) Media buying
E) Push versus pull promotions

Answer 64

C) Recall (remember the ad and the advertiser) and persuasion (remember the benefit)

Question 65

Your family decides to take a vacation in Key West, Florida. You rent a two-bedroom house on the website VacationsRUs.com. Your vaction experience is terrible. The house is dirty and in need of repair. You complain to the local property manager, but he says there is nothing he can do. You return home and write a negative review on Trip Advisor, a travel rating website. This is an example of:
(A) Buyer beware
(B) Unethical marketing
(C) Firm power
(D) Consumer power
(E) Bargaining power of suppliers

Answer 65

(D)Consumer power

Question 66

Cassi is under a lot of stress at work. Her position is on the line. She needs to close a sale soon. She tells herself that it is okay to possibly break the rules because she is trying to make enough money to support her family. According to the fraud triangle, which aspect is missing from this potentially unethical situation?
(A) Pressure
(B) Dishonesty
(C) Rationalization
(D) Money
(E) Opportunity

Answer 66

(E) Opportunity

Question 67

Your next-door neighbor tells you that you must buy a new car every four years because after four years, the engines break down. He feels that car manufacturers design cars this way on purpose to trap consumers into constantly buying new vehicles. Your neighbor believes in which myth of unethical marketing?
(A) Marketers push products consumers don’t want to buy
(B) Consumers are no match for the power of marketing
(C) Marketing is deceptive, not truthful and honest
(D) Marketers believe in planned obsolescence
(E) Marketers believe a sustainability strategy does not maximize shareholder wealth

Answer 67

(D) Marketers believe in planned obsolescence

Question 68

For marketers, the three components of sustainabilty are:
(A) Sustaining leaders, co-workers, and subordinates
(B) Supporting the firm’s mission, objectives, and strategy
(C) Growing the business in spite of social, economic, and competitive forces
(D) EPA, OSHA, and FTC certifications
(E) Consumers’ wants, the company’s requirements, and society’s long-term interests

Answer 68

(E) Consumers’ wants, the company’s requirements, and society’s long-term interests

Question 69

The number one reason new products fail is because:
(A) The selling firm uses unethical tactics
(B) The competitors’ responses are intense
(C) The firm selects the wrong channels of distribution
(D) The firm fails to understand market opportunity and potential
(E) They don’t deliver benefits to the consumer–functional and emotional

Answer 69

(E) They don’t deliver benefits to the consumer–functional and emotional

Question 70

Procter & Gamble (makers of Crest and Covergirl) focuses on winning the first moment-of-truth in retail stores, that is, the first three to seven seconds it takes shoppers to make up their minds which product to take from the retailer’s shelf.  To do this, P&G marketing managers focus on:
A) CPM--cost per thousand impressions
B) Discount stores
C) Big box stores
D) Intensive distribution
E) In-store advertising and packaging

Answer 70

E) In-store advertising and packaging

Question 71

The range of possible prices, where sellers have incentive to sell and buyers have incentive to purchase, is:
A) The average of all reference prices, competitor prices, and substitute prices
B) Based on marketing efforts minus reference and competitor prices
C) Where demand equals profit
D) Above the buyer’s perceived value and bellow the seller’s cost of goods sold
E) Above the seller’s cost of goods sold and below the buyer’s percieved value

Answer 71

E) Above the seller’s cost of goods sold and below the buyer’s percieved value

Question 72

Which element of the marketing mix has the most profound influence on price?
A) Product
B) Promotion
C) Place
D) Presentation
E) People

Answer 72

C) Place

Question 73

Which pricing strategy is used when marketers set a relatively high price to obtain high margins at the expense of sales quantity, then lower the price over time?
A) Price skimming
B) Price penetration
C) Promotional pricing
D) Cost-plus pricing
E) Competitive pricing

Answer 73

A) Price skimming

Question 74

Reference price is an important concept in pricing strategy. ______________ is what everyone else is paying for the product and _______________ is what you think you should pay, given your past experience and the buying situation.
A) Internal reference price; external reference price
B) External reference price; internal reference price
C) Referral reference price; accepted reference price
D) High reference price; low reference price
E) Personal reference price; relevant range reference price

Answer 74

B) External reference price; internal reference price

Question 75

With cost-plus pricing, the firm knows its costs, but not much about customers and competitors. So marketing managers simply add a margin to the cost of the product to determine price. The added amount is generally the margin needed to make the return demanded by upper management or investors. The trouble with cost-plus pricing is that:
A) Competitors may copy the price
B) Product costs are irrelevant to buyers
C) Substitute products may have the same price
D) Promotion stratetgies may alter the outcome
E) The break-even volume is difficult to calculate

Answer 75

B) Product costs are irrelevant to buyers

Question 76

Social media marketing may be more effective than traditional marketing communications channels because social media:
A) Offers greater flexibility of content and duration
B) Has credibility similar to word-of-mouth
C) Can build awareness and interest at a much lower cost
D) Both A and B
E) All of the above

Answer 76

E) All of the above

Question 77

What is the key driver in engaging and converting potential customers using social media?
A) Multiple media
B) Relevant content
C) Google AdWords
D) Product blogs
E) Short, precise messages

Answer 77

B) Relevant content

Question 78

Facebook, Twitter, YouTube, product blogs, and Google AdWords all play different roles in achieving marketing objectives.  For example,  \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ is better for generating awareness and \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ is better for making direct sales.
A) Facebook, Google AdWords
B) Google AdWords, Twitter
C) YouTube, Twitter
D) Product blogs, Facebook
E) Google AdWords, YouTube

Answer 78

A) Facebook, Google AdWords

Question 79

In recent years, many marketers have asked, “How do I optimize my website to obtain a better rank with search engines?” Given the changes in search engine algorithms, like Google, the better questions is:
A) “How do I create ‘homegrown’ videos to attract more attention?”
B) “How do I optimize a 140-character message?”
C) “How can I obtain mazimim leverage with my CPM bids?”
D) “How can I minimize my cost-per-click spend?”
E) “How can I optimize my brand so that it’s a sought-after participant in relevant conversations?”

Answer 79

E) “How can I optimize my brand so that it’s a sought-after participant in relevant conversations?”

Question 80

Social media services created a new vocabulary such as cost-per-click (CPC), click-through-rate, and cost-per-action (CPA).  Because ads must generate enough interest to get a click and clicks must generate an action leading to a sale, the critical number is:
A) CPM--cost per thousand impressions
B) CPC--cost per click
C) CPA--cost per action
D) CPGW--cost per gross weight
E) CCC--cost, cohort, connection

Answer 80

C) CPA–cost per action

Question 81

Marketing strategy addresses a specific target market with a cohesive marketing mix of:
A) Product, price, place, promotion
B) Product, price, promotion, profit
C) Positioning, performance, potential, profitability
D) Price, place, people, promotion
E) Place, potential, product, performance

Answer 81

A) Product, price, place, promotion

Question 82

For every pair of Toms shoes purchased, the company donates a pair of shoes to a child in need.  Which marketing philosophy does Toms use?
A) Production
B) Sales
C) Market
D) Societal
E) Consumer

Answer 82

D) Societal

Question 83

The path to profitability starts with:
A) Understanding customers within the context of the marketing environment
B) Executing clever advertising campaigns using digital media
C) Reducing price for disadvataged customers
D) Developing distribution channels to reach a variety of customers
E) Benchmarking and then copying successful competitors

Answer 83

A) Understanding customers within the context of the marketing environment

Question 84

“How do I come up with a killer product idea?”
A) Ask customers what they want
B) Ask, “What problems are people trying to solve.”
C) Ask, “How much money can I make?”
D) Ask, “What are the competitive offerings?”
E) Ask, “Which distribution channels offer the most cost effective solution?”

Answer 84

B) Ask, “What problems are people trying to solve.”

Question 85

For most entrepreneurs, success comes from:
A) Making small, important modifications to existing products
B) Conducting systematic market research
C) Serendipitous discovery
D) Technological breakthroughs
E) The PC revolution

Answer 85

A) Making small, important modifications to existing products

Question 86

Because Stonyfield Farm Yogurt founder Gary Hirshberg had no money for promoting his products, he asked himself, “What do I have that I can use and how will it make my competitors irrelevant?”  His answer was, “I have some cows and a farm.”  He used his cows to promote the business—Moosletter, Adopt-A-Cow.  This is an example of an important part of bottom-up mindset:
A) Reducing non-price costs
B) Improving image
C) Delivering service
D) Embracing constraints
E) All of the above

Answer 86

D) Embracing Constraints

Question 87

With NyQuil, Procter & Gamble created a cold remedy with a negative side effect—it also put people to sleep. Rather than call the project a failure, P&G featured the negative side effect—“The Nighttime, Sniffling, Sneezing, Coughing, Aching, Stuffyhead, Fever, So-You-Can-Rest Medicine.” NyQuil is a good example of:
A) Reacting to the market leader, then positioning the product accordingly
B) Revisiting an old problem
C) Intensive distribution
D) Providing a new product for drugstores
E) Building a strategy around a marketing tactic–a cold medicine that puts people to sleep

Answer 87

E) Building a strategy around a marketing tactic-a cold medicine that puts people to sleep

Question 88

A bottom-up mindset:
A) Focuses on making the most of what you have
B) Goes where the money is and quickly adjusts the competitive angle
C) Transitions a winning marketing tactic into a long-term successful strategy
D) All of the above
E) None of the above

Answer 88

D) All of the Above

Question 89

Entrepreneurs face a David and Goliath competitive landscape. To have a fighting chance, entrepreneurs need to:
A) Copy the market leader’s strategy
B) Play to his/her own strengths
C) Copy a maket follower for a safe position in the market
D) Find more resources to compete with the market leader
E) Match the strategy of the closest competitor

Answer 89

B) Play to his/her own strengths

Question 90

What is Nate's favorite color?
A) Red
B) Pink
C) Stripes
D) Purple
E) Polka Dot
F) A & C
G) A & E
H) All of the above

Answer 90

I) Blue