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191) A prospective buyer goes through a sequence of stages including awareness, interest,
evaluation, trial, and adoption, which are referred to as
A) the hierarchy of effects.
B) Maslow's hierarchy.
C) the purchase decision continuum.
D) the consumer-product cycle.
E) the consumer purchasing pattern.
192) The first stage in the hierarchy of effects is
A) interest.
B) awareness.
C) informing.
D) trial.
E) evaluation.
193) After awareness in the hierarchy of effects is
A) interest.
B) informing.
C) involvement.
D) trial.
E) evaluation.
194) The fourth of five stages in the hierarchy of effects is
A) interest.
B) awareness.
C) adoption.
D) trial.
E) evaluation.
195) The last stage in the hierarchy of effects is
A) interest.
B) awareness.
C) adoption.
D) repurchase.
E) evaluation.
196) In the hierarchy of effects, the consumer's ability to recognize and remember the product or
brand name is referred to as the ________ stage.
A) adoption
B) evaluation
C) awareness
D) internalization
E) trial
197) In the hierarchy of effects, awareness is defined as
A) the consumer's first actual purchase and use of the product or brand.
B) the consumer's repeated purchase and use of the product or brand.
C) the consumer's appraisal of the product or brand on important attributes.
D) an increase in the consumer's desire to learn about some of the features of the product or
brand.
E) the consumer's ability to recognize and remember the product or brand name.
198) In the hierarchy of effects, an increase in the consumer's desire to learn about some of the
features of the product or brand is referred to as the ________ stage.
A) adoption
B) exploration
C) awareness
D) interest
E) trial
199) In the hierarchy of effects, interest refers to
A) the consumer's ability to recognize and remember the product or brand name.
B) the consumer's appraisal of the product or brand on important attributes.
C) an increase in the consumer's desire to learn about some of the features of the product or
brand.
D) a favorable experience on the first trial, resulting in the consumer's repeated purchase and use
of the product or brand.
E) the consumer's first actual purchase and use of the product or brand.
200) Ann's young son suffers from allergies and complains about his watery eyes and sneezing.
When Ann saw an ad for a new drug that counters these symptoms in Martha Stewart Living
magazine, she planned to ask his doctor about this product on her son's next visit. Ann is at
which stage in the hierarchy of effects?
A) She is the trial stage and will move to the interest stage soon.
B) She has moved quickly from the awareness stage to the interest stage.
C) She was in the consumer development stage and will more than likely move to the transition
stage.
D) She is in the evaluation stage and will move to the interest stage soon.
E) She was in the interest stage and then moved quickly to the diffusion stage.
201) In the hierarchy of effects, the consumer's appraisal of the product or brand on important
attributes is referred to as the ________ stage.
A) evaluation
B) adoption
C) awareness
D) interest
E) trial
202) In the hierarchy of effects, evaluation refers to
A) the consumer's ability to recognize and remember the product or brand name.
B) the consumer's appraisal of the product or brand on important attributes.
C) an increase in the consumer's desire to learn about some of the features of the product or
brand.
D) a favorable experience on the first trial, resulting in the consumer's repeated purchase and use
of the product or brand.
E) the consumer's first actual purchase and use of the product or brand.
203) In the hierarchy of effects, the consumer's actual first purchase and use of the product or
brand is referred to as the ________ stage.
A) adoption
B) evaluation
C) sampling
D) interest
E) trial
204) In the hierarchy of effects, trial refers to
A) the consumer's ability to recognize and remember the product or brand name.
B) the consumer's appraisal of the product or brand on important attributes.
C) the consumer's first actual purchase and use of the product or brand.
D) an increase in the consumer's desire to learn about some of the features of the product or
brand.
E) a favorable experience on the first trial, resulting in the consumer's repeated purchase and use
of the product or brand.
205) CoolMax is a fabric made by DuPont used in the manufacture of exercise clothes because it
keeps the user "cool and dry." The ads for the fabric in health and fitness magazines convinced
Kumar to buy a pair of Thorlo CoolMax walking crew socks made of the material. Since he had
never before owned anything made with CoolMax, Kumar was in which stage of the hierarchy of
effects?
A) trial
B) exploration
C) innovation
D) experimentation
E) interest
206) In the hierarchy of effects, a favorable experience on the first trial causes the consumer's
repeated purchase and use of the product or brand in the ________ stage.
A) evaluation
B) adoption
C) awareness
D) interest
E) usage
207) In the hierarchy of effects, adoption refers to
A) the point at which the consumer accepts the integrity of the manufacturer and the reliability of
the product.
B) the consumer's appraisal of the product or brand on the majority of important attributes.
C) an increase in the consumer's desire to learn about some of the features of the product or
brand.
D) the consumer's actual first purchase and use of the product or brand.
E) the consumer's repeated purchase and use of the product or brand after a favorable experience
on the first trial.
208) Marketers often describe where, when, and how a customer or prospective buyer comes in
contact with a product or brand message as
A) consumer touch points.
B) customer exchange.
C) product assessment.
D) the hierarchy of effects.
E) brand integration.
209) The popularity of social media sometimes leads to a new stage in the hierarchy of effects
known as ________ where loyal consumers recommend brands they have adopted.
A) evaluation
B) advocacy
C) preference
D) interest
E) repurchase
210) Promotion objectives should possess three important qualities. They should cover a
specified time period, be measurable, and
A) unique in character.
B) appealing.
C) be designed for a well-defined target audience.
D) repeatable.
E) creative.
211) No matter what the specific objective might be, from building awareness to increasing
repeat purchases, promotion objectives should possess three important qualities. They should be
designed for a well-defined target audience, cover a specified time period, and be
A) unique in character.
B) measurable.
C) humorous.
D) repeatable.
E) creative.
212) Promotion objectives should possess three important qualities. They should be designed for
a well-defined target audience, be measurable, and
A) contain some element of appeal, such as sex, fear, or humor.
B) be profitable.
C) stay within clearly defined budgetary constraints.
D) cover a specified time period.
E) retain some degree of flexibility.
213) Which of the following companies spends more than $3 billion annually on promotion?
A) Comcast
B) Macy's
C) Johnson & Johnson
D) Coca-Cola
E) Walmart
214) All of the following are methods that firms use to set their promotion budgets except
which?
A) objective and task
B) lost-horse forecast
C) competitive parity
D) percentage of sales
E) all-you-can-afford
215) Percentage of sales budgeting refers to
A) matching a competitor's absolute level of spending or the proportion per point of market
share.
B) allocating funds to a promotion only after all other budget items are covered.
C) allocating funds to a promotion as a percentage of past or anticipated sales, in terms of either
dollars or units sold.
D) determining a firm's promotion objectives, outlining the tasks to accomplish these objectives,
and determining the advertising cost of performing these tasks.
E) allocating funds to a promotion based on expected profits generated from it.
216) A budgeting method that allocates funds to a promotion as a percentage of past or
anticipated sales, in terms of either dollars or units sold, is referred to as ________ budgeting.
A) percentage of sales
B) competitive parity
C) all-you-can-afford
D) objective and task
E) linear forecast
217) The owner of a cosmetics start-up told his employees, "We had a good year, and next year
looks to be even better. I'm going to raise this year's promotion budget by 4.5 percent compared
to last year's. We had strong growth in sales of close to 10 percent this year so I think we can do
more advertising." This company is most likely using ________ budgeting.
A) percentage of sales
B) competitive parity
C) all-you-can-afford
D) objective and task
E) linear forecast
218) The promotion-to-sales ratio is a measure used in the ________ budgeting approach.
A) competitive parity
B) all-you-can-afford
C) percentage of sales
D) objective and task
E) linear forecast
219) Managers often use the promotion-to-sales ratio on their marketing dashboards to assess
how effective the integrated marketing communications program expenditures were at generating
A) sales.
B) customer satisfaction.
C) profits.
D) promotional sustainability.
E) CPM.
220) The promotion-to-sales ratio can be used by managers to make year-to-year comparisons of
their programs, to compare the effectiveness of their programs with competitors' programs, or to
make comparisons with
A) calculated break-even points.
B) estimated return on investments.
C) promotion-to-expense ratios.
D) industry averages.
E) advertising-to-sales promotion ratios.
221) A common way to assess the effectiveness of all promotion expenditures during the past
year is to calculate
A) a break-even point.
B) a promotion-to-sales ratio.
C) ROI.
D) a promotion-to-expenses ratio.
E) an advertising-to-sales promotion ratio.
222) The formula to calculate a promotion-to-sales ratio is: Total promotion expenditures
divided by
A) Total marketing costs.
B) Marginal revenue.
C) Average revenue.
D) Net sales.
E) Total sales.
223) A marketing manager at an auto company computed its promotion-to-sales ratio, that of the
major competitor, and the auto industry itself. She found that the company's ratio was 2.8
percent, the competitor's ratio was 4.5 percent, and the auto industry average was 6.7 percent.
She then realized
A) she was spending too little on promotional efforts.
B) she needed to explain these numbers to her boss, especially in relation to the industry.
C) the competitor shortly would be taking market share from the company.
D) she spent her promotional dollars effectively.
E) overall the industry was wasting money on ineffective sales promotions such as cash-back
offers.
224) Competitive parity budgeting refers to
A) matching a competitor's absolute level of spending or the proportion per point of market
share.
B) allocating funds to a promotion as a percentage of past or anticipated sales, in terms of either
dollars or units sold.
C) allocating funds to a promotion only after all other budget items are covered.
D) determining a firm's promotion objectives, outlining the tasks to accomplish these objectives,
and determining the advertising cost of performing these tasks.
E) allocating funds to a promotion based on expected profits generated from it.
225) Allocating funds to promotion by matching the competitor's absolute level of spending or
the proportion per point of market share is referred to as ________ budgeting.
A) percentage of sales
B) competitive parity
C) all-you-can-afford
D) objective and task
E) linear forecast
226) Allocation of funds to promotion only after all other budget items are covered is referred to
as
A) percentage of sales budgeting.
B) all-you-can-afford budgeting.
C) competitive parity budgeting.
D) objective and task budgeting.
E) linear forecast budgeting.
227) All-you-can-afford budgeting refers to
A) allocating funds to a promotion as a percentage of past or anticipated sales, in terms of either
dollars or units sold.
B) matching a competitor's absolute level of spending or the proportion per point of market
share.
C) determining a firm's promotion objectives, outlining the tasks to accomplish these objectives,
and determining the advertising cost of performing these tasks.
D) allocating funds to a promotion only after all other budget items are covered.
E) allocating funds to a promotion based on expected profits generated from it.
228) The owner of a nail shop that operates in a local strip mall told her daughter, "Well, after
budgeting for all of our expenses for next year, we still have about $7,500 remaining for
emergencies. Let's budget 20 percent of that amount for advertising." What budgeting technique
is the retailer most likely using?
A) all-you-can-afford budgeting
B) percentage of sales budgeting
C) competitive parity budgeting
D) objective and task budgeting
E) linear forecast budgeting
229) Allocating funds to promotion whereby the company determines its promotion objectives,
outlines the tasks to accomplish these objectives, and determines the promotion cost of
performing these tasks is referred to as
A) percentage of sales budgeting.
B) competitive parity budgeting.
C) all-you-can-afford budgeting.
D) linear forecast budgeting.
E) objective and task budgeting.
230) The best approach to budgeting is objective and task budgeting, whereby the company
determines its promotion objectives, outlines the tasks to accomplish these objectives, and
A) asks the ad agency for an estimate.
B) asks the media to propose a program.
C) determines the promotion cost of performing these tasks.
D) determines what spending level top management will allow for the proposed program.
E) surveys customers to determine what spending levels they think are appropriate.
