I. At which level of brand loyalty is advertising often used heavily to promote a product?
a. Brand recognition
b. Brand preference
c. Brand insistence
d. Brand equity
2. Jim stops at the local convenience store on his way home to buy a six-pack of beer. He
goes in thinking he will purchase his usual brand, but ends up buying another because it $
tt sale What stage of brand loyalty is Jim presently at?
a. Brand insistence
b. Brand awareness
c. Brand preference
d. Brand recognition
3. Brand recognition as a stage of brand loyalty occurs when;
a. the product becomes familiar to the consumer.
b. the consumer insists on purchasing that brand even at higher prices.
c. the consumer sees or recognizes the product and chooses it over its competition.
d. the product offers a distinct price advantage to its consumers over its nearest rivals,
4. Generic products are:
a. characterized by plain labels, little or no advertising, and no brand names.
b. identified through a brand name owned by a manufacturer or other producer.
c. typically national brands sold exclusively by a single retail chain.
d. identified through a brand name owned by a wholesaler or retailer.
5. The primary factor that attracts a consumer to a generic product is:
a. package design.
b. family branding.
c. low price.
d. ease of distribution.
6. The Kirkland brand is owned by Costco, and the products can only be purchased at
Costco stores. Costco contracts with manufacturers to produce and package products
under the Kirkland name. This arrangement is called:
a. family branding.
b. individual branding.
c. generic branding.
d. private branding.
7. Small appliances and related products bearing the General Electric brand are only
available through Wal-Mart stores. This type of product distribution strategy is called
_____ branding.
a. private
b. unique
C. captive
d. exclusive
8. The added value that a certain brand name gives to a product in the marketplace is called
brand:
a. knowledge
b. esteem
c. recognition
d. equity
9. A companys ability to market a product successfully at a higher price is directly related
to its:
a. market capitalization.
b. product relevance.
c. brand equity.
d. market share.
10. A global brand generally is defined as
a. one that has production facilities in two or more non-home countries.
b. one that sells at least 20 percent outside its home country.
c. one that uses regional branding for essentially the same product.
d. one that is recognizable across the world by its unique trademark.
11. A characteristic of a good band name is that it should
a. avoid any specific connotation relative to product consent.
b. be shun and also descriptive of the product or its characteristics.
c. hold universal appeal with respect to its customers.
d. be pronounced the same in every language.
12. The two critical components of distribution strategy arc and
a. marketing channels; logistics and supply-chain management
b. physical distribution; relationship marketing
c. location; cost
d. warehousing transportation
13. Marketing channels play a key role in marketing strategy because they:
a. provide criteria for promotional expenditures.
b. provide the means by which products move from producer to ultimate user.
c. allow more participants to contribute to the economy.
d. reduce the distribution channel length.
14. Direct selling is more common:
a. in raw material purchases in the B2B market.
b. between retailers and consumers.
c. in products classified as maintenance, repair, and operating supplies.
d. with products that require little demonstration.
15. The traditional marketing channel for consumer goods proceeds from producer to:
a. the consumer.
b. agent to wholesaler to retailer to consumer.
c. agent to the end user.
d. wholesaler to retailer to consumer.
16. Movement of products through more than one marketing channel to reach the same
market is:
a. multiple selling
b. dual distribution.
c. distribution redundancy.
d. exclusive distribution.
b. inferior
c. gray
d. horizontal
10. The process of collecting information about the external marketing environment is called:
a. environmental management.
5. marketing research.
c. marketing management.
d. environmental scanning.
6. All of the following retail stores would be found at a power center except:
a. Home Depot.
b. Spoils Authority.
c. Bed Bath & Beyond.
d. IKEA.
27, A provides space for permanent showrooms and exhibits, which manufacturers rent to market
their goods
a. merchandise man
b. trade fair
e. drop ship
d. clearing house
8. An example of a company that relies heavily on direct selling is:
a. Compaq.
b. Goodyear Corporation.
e. Amway.
d. General Motors.
9. Which of the following is the most frequently used form of direct marketing?
a. Direct response retailing
5. Online retailing
e. Telemarketing
d. Direct mail
10. Vending machines are an example of:
a. automatic merchandising,
5. Internet retailing.
c. telemarketing.
d. direct selling.
11. The function of informing, persuading, and influencing the consumers purchase decision
is called:
a. salesmanship.
b. advertising.
e. promotion.
d. communication.
12. An integrated marketing communication strategy begins with:
a. separating the pads of the promotional mix into categories based on the media that is
being utilized.
b. isolating and eliminating non-promotional contacts between the consumer and the
organization.
c. consumer wants and needs and then woks in reverse to the product, brand, or
organization.
d. any negative campaign against a product or a company because of poor performance, initiated
by angered consumers who share experiences on blogs and message boards.
1. Which of the following is a disadvantage of guerrilla marketing?
a The innovation involves high cost.
b. It can be offensive to members of the target audience.
c- The company has no control over the marketing channel it relies on.
d It does not work for small companies with low budgets.
41 Because direct marketing is interactive, It:
a focuses more on promoting the companys goodwill and educating consumers about the firm.
b. allows marketers so tailor individual responses to meet consumers needs.
c. is not very effective in reaching a wide audience.
d. is very informal and its effectiveness is difficult to measure.
2. One of the advantages of the direct mail medium is that:
a. it offers the ability to reach a broad target market.
b. the per-reader cost is lower than other types of advertising.
c. response rates are measurable and higher than those of other types of advertising.
d. it enhances credibility of the product offering and the company.
3. When Frito Lay introduces a new flavor of potato chips. it is Likely to focus on its
promotional mix
a advertising
b. personal selling
c. direct marketing via broadcast channels
d. publicity
4. When potential buyers of a product are dispersed geographically, a pulling promotional
strategy should lay emphasis on:
a. advertising.
b. personal selling.
c. publicity.
d. public relations.
5. Acceptable promotional practices in the marketplace are ultimately determined by:
a. the Ad Council.
b. consumer buying decisions, with consumers being free to choose what they wish to
buy.
c. the universally accepted rules of what constitutes good and had taste.
ci. the Federal Communications Commission.
6. Public service announcements are:
a. costly for nonprofit organizations to broadcast.
b. ads that generate awareness or educate the public.
b. informative
c comparative
d. advocacy
4. Persuasive advertising:
a. reinforces the effect of previous promotional activity.
b. increases demand for an existing good or service, organization, or other concept.
c. develops initial demand for a newly introduced product.
d is used primarily in the maturity and decline states of the product life cycle.
5. The type of advertising that strives to reinforce previous promotional activity by keeping
the name of Itie good,
service, organization, person. place, idea, or cause before the public is advertising
a. retentive
5. reminder
c. informative
d. promotional
6. When Bufferin advertises that its products have a greater pain-relieving effect than
aspirin or Tylenol, it is using advertising.
a. cooperative
b. comparative
c. advocacy
d. institutional
57, In general, marketers that participate in comparative advertising:
a. sell products with smaller market shares than category leaders.
b. are the market share leaders.
c. are trying to eliminate one or more competitors as a means of driving up prices.
d. sell mostly shopping goods.
1. Which federal agency reversed its stand on comparative advertising after realizing that
competition drives down prices?
a. FCC
b. SEC
c. IRS
d. FTC
2. Some advertisers try to avoid problems with celebrity endorsers by using cartoon
characters as endorsers. One drawback of using such cartoon characters is;
a. that their unrealistic quality limits their appeal.
b. their shorter shelf life and need for innovation.
c. high licensing fees compared to celebrities.
d. the availability of more than a thousand characters.
c. flexibility.
d. public trust.
8. Compared with broadcast networks, advertising on cable gives marketers access to target
audiences.
a. smaller
b. more broadly deflated
C. more narrowly defined
d. much larger
(,9. Personal selling can be broadly defined as:
a. selling consumer products.
b. a promotional presentation conducted on a person-to-person basis with the buyer.
c. personalized advertising.
d. the use of promotional material cist directly to the prospective buyer.
1. The role of a sales representative in the promotion process has changed from that of
persuader to that or
a. a technician and expert on product repair.
b. a process designer.
c. a consultant and problem solver.
d. a close friend and confidant.
2. The most expensive sales method overall is:
a. over-the-counter sales because of the high overhead in retail operations,
b. telemarketing because of the technology costs.
c. telemarketing because of the high rejection rate from customers who avoid
telemarketers.
d. field selling, largely because of the travel costs of sales personnel.
3. Although research shows that most consumers dislike the practice of telemarketing and
more than 191 million have signed up for the national Do Not Call Registry,
organizations still use telemarketing because:
a. it provides employment to a large number of people.
b. it guarantees a sales order with every call.
c. it is cost effective; the average call costs are low.
d. it does not require experienced and trained sales personnel
4. Which of the following is not a function of relationship selling?
a- Meeting buyer expectations
b. Improving the level of customer service
c. Building a mutually beneficial relationship over time
d. Focusing on meeting the customers short-term needs
74, Which of the following is a part of the consultative selling process?
a. Understanding customer problems
8. If Procter & Gamble were to introduce a value-priced brand of laundry detergent, they
should:
a. just emphasize the low price
b. attempt to convince consumers the lower-priced band offers compare quality to higherpriced products.
c. demonstrate the prestige the consumer gets along with this product.
d. attempt to eliminate competition by offending high discounts and free coupons with its
introductory package.
9. Prestige pricing objectives emphasize:
a. quality and exclusivity.
b. revenue maximization.
C. cost minimization
d. sales maximization.
10. Which of the following is an inappropriate pricing objective for a not-for-profit
organization
a. Market domination
b. Profit maximization
c. Cost recovery
d. Providing market incentives
91 Because it involves the use of a high price relative to prices of competing products or
services, the skimming pricing strategy is sometimes referred to as pricing.
a. market-plus
b. competitive
c. penetration
d. functional
2. The pricing strategy that permits marketers to control demand in the introductory stages
ola products life cycle and then adjust productive capacity to match changing demand is
known as pricing.
a penetration
b. value-added
c. skimming
d. monopolistic
3. Penetration pricing is sometimes referred to at pricing
a. market-plus
b. market-minus
c. cost-plus
d. prestige
4. Retailers such as Home Depot and Lowes. who offer to meet or beat the best price
offered by their competitors use the strategy of_ pricing.
a. skimming
b. penetration
C. competitive
d. cost-plus
5. Discounts off the list price given for prompt payment of the invoice may be classified as
discounts.
6. cash
b. trade
C. quantity
d. functional
96, A products market price is ordinarily the;
a. same as the products list price.
b. list price less any allowances and discounts that may be involved in the purchase.
c. list price less any discounts and allowances plus any geographic considerations that may apply.
d. price that consumers pay using a credit card.
7. The global pricing strategy that allows the greatest flexibility in setting prices to reflect
local marketplace conditions is:
a standard worldwide price.
b. dual picking approach.
c. market-differentiated pricing.
d. flexible pricing.
8. A pricing policy that assumes that some prices are more appealing than others is known
as pricing.
a, psychological
b. unit
c. list
d. prestige
9. An example of odd pricing would be:
a. a buy-two-get-one-free promotion.
b. selling a radar detector for $129.99 instead of SI 30.
C. subtracting trade-ins from the list price.
d. rebates that lower total price.
10. A major challenge with product-line pricing is that:
a. once price lines have been set, its difficult to re-price individual items,
b. it does not result m improved consumer decisions.
c. consumers we easily confused by this pricing option.
d. it may be in violation of the LePetomaine Act.