What does the demand curve for a prestige product look like?
a. It is a straight line where the quantity sold continues to increase as the price of each
product increases.
b. It is a curve where the highest and the lowest prices yield the greatest quantity sold
and mid-range prices produce the fewest sales.
c. It forms a curve where the greatest quantity sold comes at a medium price and the
quantities fall as the price increases or decreases.
d. It forms a straight vertical line because of the prestige of the product, and quantity
sold will remain stable regardless of the price.
e. It slopes from left to right at a very mild slope, and as quantity increases, price
decreases slowly.
Effective promotional programs require management efforts such as planning,
organization, implementation, and control.
a. True
b. False
Marketers generally view_________as the minimum price a product can be sold for.
a. revenue
b. demand
c. profits
d. costs
e. moderate losses
Signs and symbols that can have more than one meaning should be avoided.
a. True
b. False
When DuPont develops new carpet fibers that are highly stain-resistant and durable, it
must educate consumers about the product’s benefits. Which of the following marketing
mix variables is implicated in this regard?
a. Price
b. Promotion
c. Distribution
d. Product
e. Packaging
While the specific communication vehicles employed in promotion have not changed,
the fundamental role of promotion is changing.
a. True
b. False
Marketers primarily focus their environmental analysis on competitors.
a. brand
b. product
c. total budget
d. generic
e. monopolistic
Which of the following is a primary difference between cause-related marketing and
strategic philanthropy?
a. Cause-related marketing is short term only while strategic philanthropy is an ongoing
approach that lasts for years or even decades.
b. Strategic philanthropy fulfills a firm’s primary social responsibilities while
cause-related marketing does not.
c. Cause-related marketing is unlikely to have a positive effect on society while
strategic philanthropy always benefit society.
d. Strategic philanthropy can take on both a financial and nonfinancial format while
cause-related marketing only involves financial contributions.
e. Customers are likely to feel good about themselves when supporting a cause-related
marketing campaign but are unlikely to notice strategic philanthropy.
Scenario 10.4
Use the following to answer the questions.
When Silk Soymilk began packaging its chocolate milk in single-serving sizes, the
company chose drink boxes that did not need refrigeration. The boxes were only sold in
shrink-wrapped sets of six. Single boxes were not available at grocery stores or
convenience markets. Once the Silk chocolate product was selling well, they also began
offering the Silk Soymilk vanilla flavor in the same type packaging. The Silk Soymilk
brand, logo, and look of the boxes were the same as its larger half-gallon versions. The
only difference in packaging style was the brown color for chocolate milk and the color
white for vanilla. Silk Soymilk’s strategy of packaging its single-serve boxes of
chocolate milk to look like its half-gallon cartons is known as a(n)_____ .
a. brand extension
b. individual packaging
c. manufacturer branding
d. family packaging
e. multiple packaging
The identification of an advertisement’s sponsor is the .
a. copy
b. signature
c. trademark
d. layout
e. subheadline
Advertising departments may use independent research organizations or freelance
specialists for some of their projects.
a. True
b. False
In general, the primary difference between goods and services is determined by the:
a. degree of labor intensiveness. b. type of target market.
c. degree of tangibility. d. type of provider.
e. degree of consumer contact.
Compare the competition-matching approach with the arbitrary approach in
determining an advertising appropriation. Which method might more easily lead to
overspending or under-spending on the appropriation?
Describe the various methods used to evaluate the advertising effectiveness after a
campaign.
Discuss the difference between social responsibility and ethics in marketing.
What are the wholesaling activities performed by selling agents and brokers?
What are some of the objectives a firm might hope to achieve when setting prices?