Customer relationship management, or CRM, involves cultivating long-term
relationships with customers.
a. True
b. False
Mass-mediated communication has three major components: production,
accommodation, and distribution.
a. True
b. False
_____ is a high-speed technology that allows consumers to customize their
programming and target very specific audiences.
a. Transit
b. Crowdsourcing
c. Broadband
d. Cable
An advertorial is an ad that is designed to look just like a newspaper article.
a. True
b. False
Scenario4-5
Fritters, a fast food restaurant chain, known for its quick meals encountered an instance
where a customer had blamed its food for his weight gain. Later on in the same year,
Fritters launched an advertisement comparing its burger with a close rival’s, which were
very similar, and was asked to be corrected by the court. However, a second
advertisement depicting a super model eating its fries and an obese person eating the
fries of its competitors food chain had been deemed unethical and was ordered by the
court to be removed, although Fritters continued airing the ad.
Which of the following actions would help Fritters prove the fairness of its first
comparison ad?
a. By entering a stealth sponsorship with its competitor
b. By including a disclaimer
c. By sharing the profits of the ad with its competitor
d. By mentioning the contents of the meals
The CEO of a software manufacturing firm that supplies to large insurance firms wants
to look at all possible forms of business-market promotions to gain and maintain
lucrative customers. He meets with his marketing director, and they review the five
main areas of promotion techniques aimed at business buyers. They are:
a. trade shows, business gifts, premiums and advertising specialties, trial offers, and
frequency programs.
b. incentives, allowances, training programs, cooperative advertising, and sampling.
c. merchandise allowances, cash allowances, trade shows, training programs, and
incentives.
d. premiums and advertising specialties, frequency programs, incentives, allowances,
and cooperative advertising.
Scenario 9-1
The Xcellent Agency specializes in developing advertising campaigns for smaller retail
clients. Xcellent was hired by Shadowleaf Shoes, a small regional chain of six shoe
stores, to develop a slogan and specific ads to be used in a three-month newspaper
campaign. Shadowleaf’s marketing director, Manuel Margolis, was adamant while
meeting with Xcellent’s account executive, Kia Chin, that the campaign must be catchy
and modern to appeal to a target audience that has an active lifestyle and is between the
ages of 18 and 35. More importantly, Margolis wanted the slogan to be memorable and
unique.
Kia Chin, representing Xcellent, developed a campaign and presented it to Margolis,
based on the slogan, “Do What You Do in a Shadowleaf Shoe.” Visuals included men’s
legsdifferent sizes, skin colors, etc.walking, jogging, dancing, and otherwise moving in
every type of Shadowleaf shoes. She felt that this campaign would target young male
consumers, but would also get the attention of others regarding its comfortable shoes
and would raise awareness of the Shadowleaf brand. After running the ads, the Xcellent
Agency won an advertising effectiveness award. It seemed that the surprising and
appealing visuals gave the slogan unexpectedly positive social meaning for people of
all ages, not just men aged 18 to 35.
Which individual at the Xcellent agency will be responsible for maintaining a good
relationship with Margolis and the Shadowleaf organization?
a. The research manager
b. The creative director
c. The media planner
d. The account executive
In the mid-1990s, William T. Esrey, chairman and CEO of Sprint, announced that
clients were going to hold ad agencies more closely accountable than ever before. He
said this because:
a. billing scandals had undermined the confidence of advertisers in their agencies.
b. interactive media was being replaced by the wide range of traditional media.
c. the technology to measure advertising impact had improved.
d. the fundamental reasons to advertise had changed.
A powerful value proposition in most situations today includes functional, emotional,
and self-expressive benefits,
a. though only tangible product benefits are truly emphasized.
b. though no single ad can reflect all three aspects.
c. all of which must be included in a given advertising campaign.
d. though children are excluded because their decision making is controlled by parents.
In the context of advertising, which of the following is true of leveraging social
disruption and cultural contradictions?
a. It associates the brand with pleasant events.
b. It is a rare advertisement strategy.
c. Only conservative brands risk using this strategy.
d. All brands that use this strategy get assured success.
Scenario 7-1
Scheduled to be released in the first quarter of 2011, Nintendo’s portable 3DS gaming
system will likely revolutionize the video game industry. The 3DS is the newest in a
long line of portable gaming systems made by Nintendo, but will now boast a number
of new featuresincluding 3dimensional technology that does not require the use of any
special viewing goggles or glasses. The new system will also allow consumers to play
classic games from older generations of Nintendo products, watch 3D movies, and
create fictional “Mii” characters that were made famous by Nintendo’s Wii. Nintendo
hopes its new gaming system will once again put Nintendo at the top of the video game
industry, having lost some of its market share to Sony and Microsoft in recent years.
To determine which features to include in the 3DS, Nintendo did a large amount of
research probing consumer opinions towards video games. To do so, Nintendo used
a(n) ____ that allowed consumers to be the “judge and jury” in evaluating the quality of
their new idea.
a. concept test
b. attitude study
c. frame-by-frame test
d. physiological assessment
Which of the following types of advertisements evolved during the 1920s?
a. Demonstration
b. Research-based
c. Endorsement
d. Slice-of-life
Scenario 7-3
After filing for bankruptcy in 2009 and requiring nearly $58 billion in governmental
funding simply to stay afloat, General Motors realized it had to undergo major changes
in order to compete with more successful automakers. The company began designing
questionnaires and focus groups in order to gain a better understanding of what its cars
had been lacking, and perhaps probe for specific improvements consumers may have
been looking for. The company recorded its research findings and began to apply them
to its product line. A little over a year later, Consumer Reports stated that 83 percent of
Chevrolets, GM’s top brand, had an average or better score in terms of predicted
reliability, an increase from 50 percent the year before. Apparently, the company’s
efforts have helped turn the company in the right direction.
(“Consumer Reports: GM Reliability Makes Great Strides.” MSNBC.com, October 26,
2010.)
GM relied heavily on focus groups to learn about some of its product shortfalls.
Although focus groups may serve as a good source of qualitative information, many
quickly downplay their overall effectiveness. One common criticism of focus groups is:
a. they provide a great deal of insight.
b. they are never valid.
c. they are very low in reliability.
d. focus group members feel compelled and pressurized.
The consumption process is based on the sequence of four stages: need recognition,
information search and alternative evaluation, purchase, and postpurchase use and
evaluation.
a. True
b. False
Rachel, the mayor of Genovia, had recently appeared on a local news telecast. She
stated that she should be re- elected because she contributed to the increased rate of
employment in the metropolitan area. In order for her message to be considered as an
advertisement, which of the following conditions should be met?
a. The message must be noncommercial.
b. There must be a public service announcement included.
c. The airtime must be paid for.
d. The message must involve the promotion of a product.
Similar to social networking websites, blogs also permit readers to leave comments.
a. True
b. False
In Mobil’s positioning as the “Friendly Serve” station, it had many good reasons to
select the particular target market that it did. But one issue that was NOT a factor was
that the segment
a. spent the largest amount of money at service stations.
b. had the greatest number of consumers in sheer numbers.
c. had potential for growth.
d. bought extras besides just gas.
Scenario6-1
Headquartered in Boston, The Gillette Company is the world leader in male grooming,
a category that includes blades, razors, and shaving preparations. Several years ago,
Gillette announced the launch of two new high- performance women’s razors,
broadening the portfolio of the top-selling Venus brand, the world’s most successful
franchise in female shaving. The two new razors were Venus Vibrance the first power
wet shaving system for women, and Venus Disposable, a premium-performing
disposable razor. Both razors incorporated technological and design enhancements to
better address the specific shaving needs of women, and will build on current market
segments. More recently the company has launched Venus Embrace, the first fiveblade
women’s razor, with the tagline, “Reveal the Goddess in You.” According to its website,
nearly 40 million women now use Venus products.
(http://www.gillettevenus.com/en_US/products/index.jsp)
It appears that the management at Gillette has performed the fundamental task behind
effective segmentation. Gillette has matched what members of different segments want
with
a. the company’s ability to provide it.
b. a single appeal.
c. a heavy-user-focused campaign.
d. a distinct geographic profile.
A leading manufacturer of video adapters decides to sponsor an online tournament for
the video game World of Warcraft. This manufacturer hopes to make the tournament a
branded experience. How can this event help the video adapter brand?
a. The tournament will help diversify the revenue stream for the video adapter
manufacturer.
b. The tournament will help identify the consumers for the video adapters.
c. The tournament will connect the brand with its core customer in a fun and
meaningful way.
d. The tournament will help to identify the consumers who are de-motivated by such
programs.
Scenario 10-1
During tough economic times, many companies rely on the memories of “the good old
days” to help advertise their products. Looking for a bit of a jump-start itself, PepsiCo
turned to nostalgia-heavy advertisements late in 2009, which were then carried into
2010. The company introduced “throwback” versions of a number of its soft drinks, and
created an ad campaign that included new logos and a series of commercials intended to
generate feelings of happiness from prior decades. The company had hoped that any
warm, fuzzy feelings about the past would make people feel better about the company’s
present and future.
For companies using feel-good ads, one of the difficulties is creating an ad that truly
elicits fond memories. Another difficulty associated with feel-good ads is that they can:
a. cause consumers to generate competing thoughts and connections.
b. cause consumers to recall bad memories from their childhood.
c. cause consumers to favor another brand over the one advertised.
d. cause consumers to think before they start feeling.
For most products and services, some users will purchase much more, and more
frequently, than others. These consumers are called _____.
a. lead users
b. switchers
c. emergent consumers
d. variety seekers
Scenario 17-3
As the number of firms utilizing direct marketing continues to grow, so does the
number of consumers opposed to the methods often described as “intrusive.” To combat
the growing number of opposed consumers, marketers need to find creative new ways
to optimize their direct marketing campaigns. One such outlet that firms are beginning
to experiment with is social media. Executives understand that many consumers view a
company’s Facebook page more often than the company’s home page, so they”ve grown
to realize that setting up some form of an email optin on social media sites is a great
way to build marketing databases. In addition to opt-in sections, social media allows
businesses to interact with consumers, which may make them less inclined to respond
negatively to a company’s direct marketing efforts. By utilizing social media more often
in the future, a number of U.S. companies hope to build stronger and more useful
marketing databases.
Marketers consider_______ to be the most economical form of direct response
advertising.
a. email
b. magazines
c. telemarketing
d. direct mail
Scenario 6-5
Madison State University has a reputation for having a powerful intercollegiate coed
bowling team. Seating in the campus bowling alley only allows for 400 fans to attend
their matches. Long lines for seats have formed in the past, with many fans leaving
disappointed because they could not get a ticket. As a result, the school’s administrators
decided to institute a “priority seating” plan in which fans would be given access to
advance tickets based on the following schedule:
– “Lanemaster Club” $10,000 annual donation to the bowling program guaranteed free
box seats to any match (100 seats total)
– “Strike Club” $1,000 annual donation to the bowling program guaranteed free
bleacher seats to any match (100 seats total)
– “Kingpin Club” participants in local recreation bowling leagues guaranteed bleacher
seats for $10.00 to any match (100 seats total)
– “Alleycat Club” students who have maintained a 3.9 GPA or better guaranteed
bleacher seats for $1.00 to any match (100 seats total)
In marketing materials created to target fans, the slogan “Two hours of wholesome fun
for all ages” is used to attract ticket-buyers. This philosophy is an example of
segmentation.
a. niche
b. demographic
c. geodemographic
d. benefit
Scenario 8-5
Helene Curtis is preparing to introduce a new brand of all-natural-ingredient shampoo
into the market in several months. In test marketing, many consumers liked the product
but their comments indicated that it is different enough from existing brands that
significant promotion and information will be needed to convince them to switch from
their current brands. Helene Curtis has always used an objective-and-task approach to
develop advertising budgets. Due to these research results, the firm must now do a
detailed build-up analysis.
Helene Curtis has once again decided to use objective-and-task budgeting to set the
advertising expenditures.This is the only budgeting method that focuses specifically on
advertising spending:
a. as leading to advertising sales.
b. as calculated by a mathematical formula.
c. as determined by percentage of gross profit.
d. as related to advertising objectives.
Common people who have large social circles and can recommend brands to their
friends and colleagues are useful in influencer marketing.
a. True
b. False
Scenario5-6
Voice-It Technologies produces inexpensive personal voice recording devices that serve
as a substitute for message pads in the home or office. Their recording time is limited to
120 seconds and the devices sell for less than $20. VoiceIt’s products are about the size
of four credit cards stacked on top of one another and have a life of about a year. The
slogan the firm uses on its packaging and advertising is “Don’t Write It, VoiceIt!”
Most consumers who purchase Voice-It products buy them primarily when their
preferred brand is out of stock. They also do not spend much time on information
search. What mode of consumer decision making does this indicate?
a. Brand loyalty
b. Limited problem solving
c. Extended problem solving
d. Cognitive dissonance
The purchase of certain products, such as cars, shoes, and sunglasses, signify class
membership. This indicates that these brands have ____ .
a. economies of scale
b. social meaning
c. internal positioning
d. low brand equity
Scenario 18-4
In the summer of 2010, basketball star LeBron James found himself in the middle of a
PR nightmare when he decided to turn his decision regarding his future team into an
hourlong spot on ESPN, which was entitled, “The Decision.” Almost immediately, fans
and critics alike began to express their distaste for the way the multi millionaire handled
the situation. Many fans’ opinions of the star were greatly altered and James’ positive
public image appeared to be shattered. Perhaps, even worse than the damage to his
image, the Lebron James “brand” began to take a hit when his jerseys were pulled from
many stores and websites, and thousands of fans vowed they would never buy James’
line of shoes ever again. Several months later, James began repairing his public image.
James, who endorses Nike products, came out with a controversial commercial that was
believed to evoke sympathy. However, many others felt the commercial mocked the
negative reaction expressed over “The Decision,” and was intended to rebrand the star
as a rebel. Either way, LeBron James has a long way to go before he can re-again his
title as one of the most beloved players in the NBA.
This is an unfortunate case of negative public relations. Which of the following is the
classic role of public relations?
a. To foster goodwill between a firm and its many constituent groups
b. To promote new forms of marketing such as green marketing
c. To boost employee morale or attract new employees
d. To better position the firm’s products against foreign competition
A nationally distributed fashion magazine regularly acts as a vehicle for direct
marketing. This occurs when companies use the magazine to promote their products or
services by:
a. having feature stories about products published in the magazine.
b. sending press releases to the magazine.
c. getting free publicity in advice columns of the magazine.
d. paying for bind-in insert cards in the magazine.
Direct marketers employ mailing lists because they are easy to use and inexpensive.
a. True
b. False
The majority of the promotional funds spent on event sponsorships today go toward
sporting events.
a. True
b. False