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BSAD 110 |
Introduction to Marketing Winter, 2002 |
SAMPLE FINAL
Part I: Multiple Choice
1.
The
Listerine commercial we saw in class said that using Listerine can be an
“intense” experience and that “you can handle it but germs can’t.” This can best be described as an example of
a(n):
a.
Point of difference.
b.
Attitude change attempt based on a change of
the ideal.
c.
Two sided appeal.
d.
Attitude change attempt based on a change in
the importance of attributes.
e.
Illustration of social class differences.
2.
Segmentation
involves:
a.
Identifying groups of consumers that differ
from each other in how they respond to marketing programs and/or what they
want.
b.
Trying to appeal to as many customers as
possible by making a product that seeks to satisfy the needs of consumers.
c.
The use of a SWOT analysis.
d.
Both (b) and (c).
e.
None of the above.
3.
With
respect to the positioning of a brand or product:
a.
Most brands should fundamentally reposition
at least once every five to ten years.
b.
Brands which have a clear position, even if
that means not appealing to some segments, are more likely to be successful.
c.
Usually, a firm should segment only based on
one variable in order to maintain focus.
d.
Both (a) and (b).
e.
Both (b) and (c).
4.
Within
the process of new product development, the idea generation stage is intended
to:
a.
Assure that there is enough electrical power
in the firm’s headquarters to allow employees’ computers to work without
interruption.
b.
Identify possible new products that the firm
might consider developing.
c.
Eliminate those ideas which, after extensive
financial analysis, turn out not to be profitable.
d.
Both (b) and (c).
e.
None of the above.
5.
In the
new product development process:
a.
Business
analysis is usually done before test marketing.
b.
Only
products that have survived extensive analysis are likely to reach the
commercialization stage.
c.
It is
more difficult for a product to survive business analysis than it is to survive
screening.
d.
Both
(a) and (b).
e.
All of
the above.
6.
In most
cases:
a.
Firms can save a great deal of money by
selling directly to customers rather than going through retailers and
wholesalers.
b.
Retailers and manufacturers tend to have
different preferences as to how a product should be priced.
c.
Parallel distribution structures are used
primarily to sell skis.
d.
Both (a) and (b).
e.
None of the above.
7.
The
“skimming” method of pricing can be most effectively used:
a.
In pricing dairy products.
b.
To price a new product when one segment is
willing to pay more than others to receive the product early in its life cycle.
c.
To implement everyday low pricing.
d.
To increase external reference prices.
e.
To increase internal reference prices.
8.
Within
the context of promotion, the hierarchy of effects suggests that:
a.
Certain promotional objectives must be
achieved before subsequent ones can be successfully attempted.
b.
Advertising is best aimed at upper
management.
c.
Personal selling is more suited than sales
promotion in selling products in the decline stage of the product life cycle.
d.
Price promotions tend to be ineffective.
e.
None of the above.
9.
Assuming
that a firm has the needed cash on hand, the method of advertising budgeting
that is most appropriate for achieving the promotional goals that the firm has
set is most likely:
a.
Percentage of sales.
b.
Percentage of profit.
c.
Competitive parity.
d.
Objectives and task.
e.
Random budget allocations (in order to
confuse competitors).
10.
Generally,
it appears that electronic commerce, or internet sales:
a.
Tends to be the most effective way to
sell most products.
b.
May be cost effective in selling certain
items that require a great deal of customization and/or have absolute margins.
c.
Tends to save a great deal of money,
compared to traditional channels, in selling most products.
d.
Both (a) and (c).
e.
None of the above.
11.
Advertising:
a.
Tends to provide a very high return on
investment.
b.
Tends to influence consumers to some extent,
but additional advertising will frequently not increase sales enough to make it
cost effective.
c.
Has been shown to have no impact on
consumers.
d.
Is relatively effective on television, but
quite ineffective in newspapers.
e.
None of the above.
12.
A
highly beneficial characteristic of elephants is that they:
a.
Work for peanuts.
13.
An
advantage of direct marketing is that:
a.
Response rates tend to be very high.
b.
This method offers very good opportunities
to use segmentation to target more likely buyers for a product.
c.
Consumers have been found to be price
insensitive when shopping from catalogs.
d.
Both (a) and (b).
e.
Both (b) and (c).
14.
According
to the text, gap analysis is intended to:
a.
Design effective spark plugs for high
performance engines.
b.
Assess how well customers’ evaluation of a
firm’s service meets expectations.
c.
Determine whether direct marketing is more
appropriate than going through the traditional distribution structure.
d.
Assess the reasons for the success of
retailers that target teenagers and young adults.
e.
None of the above.
15.
According
to the text, an objective of penetration pricing is:
a.
To get each segment to pay as much as it is
willing to pay for a product.
b.
Gain market share quickly after the product
is released.
c.
Minimize price competition with competitors.
d.
Encourage consumers to buy on credit so that
the seller can make a profit both on the product and on charging the consumer
interest.
e.
None of the above.
16.
According
to the text, traffic generation:
a.
Tends not
to be cost effective.
b.
Tends to be effective only when used on the
Internet, and not when attempted through traditional means of
advertising.
c.
Involves efforts by toll highways to get fewer
people to carpool.
d.
Requires the use of mail-in rebates.
e.
None of the above.
17.
According
to the text, gross rating points:
a.
Involve evaluations of objects that most
consumers find disgusting.
b.
Equal reach times frequency.
c.
Equal the natural logarithm of the square of
net rating points.
d.
Cannot exceed the response rate to a direct
mail campaign.
e.
None of the above.
18.
According
to the text, disintermediation
involves:
a.
The tendency of consumers to sue
manufacturers immediately rather than seeking conflict resolution.
b.
The attempt of one channel member to cut out
another.
c.
An effective way to implement Electronic
Data Interchanges (EDIs).
d.
A way to increase response rates to direct
marketing campaigns.
e.
None of the above.
19.
According
to the instructor:
a.
There is a clear distinction between
“retail” and “wholesale” prices.
b.
It is more important for an online retailer
to develop market share than to operate efficiently.
c.
It is easy to lose market share.
d.
Both (a) and (b).
e.
Both (b) and (c).
20.
Diversion
involves:
a.
Attempts by managers to embezzle promotional
allowances from manufacturers.
b.
The tendency of manufacturers to eliminate
intermediaries.
c.
An attempt to eliminate “clutter” in
advertising.
d.
The attempt of online retailers to evade
sales taxes in customers’ jurisdictions.
e.
None of the above.
21.
Singer
U.C. Rappour would like to promote his new album entitled The Joy of Studying in the Highlands and has asked you to consult
on promotional strategy. Good advice
would include that:
a.
A humorous ad campaign will tend to persuade
consumers of the quality of U.C.’s new album.
b.
A two-sided appeal is unlikely to be
successful.
c.
The use of integrated marketing
communication is a bad idea.
d.
Both (a) and (c).
e.
None of the above.
22.
The
product life cycle:
a.
May take on different shapes for different
products.
b.
Influences the optimal promotional strategy
for a product or brand.
c.
Was created primarily to compete with
exercise bikes.
d.
Both (a) and (b).
e.
None of the above.
23.
The
Tiny Wall of Taiwan is running an advertising campaign that “small is
beautiful” and that a small space reduces the possibility of getting lost. This is an example of:
a.
Disintermediation.
b.
Gross rating points.
c.
Positioning.
d.
The product life cycle.
e.
None of the above.
24.
The
merge-purge process is used to:
a.
Combine
previously stand-alone products into combinations such as TV-VCR players or
fax, copy, and scanning multifunction machines.
b.
Get rid
of disloyal advertising agencies by moving more business to those which offer
greater dedication.
c.
Combine
several mailing lists and remove the duplicates.
d.
Measure
gross rating points.
e.
None of
the above.
25.
Research
in pricing has shown that:
a.
Demand for product may actually go up
if its price is increased.
b.
Price “framing” will tend to dramatically reduce
the demand for a product.
c.
Using “odd” prices, such $19.99, tends to
dramatically increase sales relative to “even” prices such as $20.00.
d.
Both (a) and (c).
e.
All of the above.
26.
External
reference prices:
a.
Are set by manufacturers according to advice
found in encyclopedias.
b.
May be used by manufacturers or retailers to
increase the price that a consumer expects to pay for a given product.
c.
Are found mostly on billboards.
d.
Generally cannot be changed.
e.
None of the above.
27.
An
effective way to increase the likelihood that a rhinoceros will charge is to:
a.
Increase its credit limit.
28.
The
“Everyday Low Price” (EDLP) strategy:
a.
Is usually more relevant to the retail level
than to the manufacturer level.
b.
Is built on providing customers value by
having constant sales.
c.
Works only for durable, and not for
non-durable, products.
d.
Both (a) and (b).
e.
Both (b) and (c).
29.
Introducing
a product at a low price:
a.
Tends to result in more units being sold
when the product is introduced.
b.
Is likely to lower the consumer’s internal
reference price for the product.
c.
Requires increased spending on advertising.
d.
Both (a) and (b).
e.
All of the above.
30.
A major
issue in the diffusion of hybrid corn was:
a.
The “chicken-and-egg” problem.
b.
Trialability.
c.
The absence of a relative advantage.
d.
That many farmers could not read company
brochures.
e.
None of the above.
Part II: Short answer.
Using the space provided on the exam, please answer any two of the
following three questions.
1.
Avenging
Ammo currently has several product lines.
There is still a fair demand for conventional shells and bullets, but
the market there is not growing much. In
contrast, the market for laser aided munitions is growing rapidly. Avenging Ammo has a large share of both
markets. The CEO has asked you to
consult on what the Boston Consulting Group (BCG) model would suggest in terms
of strategy.
2.
Please
discuss the diffusion of credit cards in the
3.
According
to the instructor, marketing decisions should be made incrementally, or “on the
margin.” What does this mean and why is
this the case?
4.
According
to the text, what are some sources of channel conflict?
5.
How
does the marketing concept differ from the sales concept, and wht is the significance of these differences?