The net present value of the profit that a company stands to realize on the average new
customer during a given number of years is known as _____.
a. brand equity
b. customer equity
c. customer lifetime value
d. marginal customer analysis
e. customer profitability
Eric is a copywriter employed by a full-service advertising agency. Which function of a
full-service agency does Eric’s job fall into?
a. media services
b. account management
c. creative services
d. research services
e. production services
The contingency model of salesperson effectiveness explains that the effectiveness of
selling behaviors can be explained by all of the following except _____.
a. characteristics of the salesperson-customer relationship
b. salesperson resources
c. customer’s buying task
d. SPIN method use
e. selling behaviors
The most important requirement for co-branding is that _____.
a. there is a logical fit between the two brands
b. the two brands are similar in price
c. the two products are not directly competing against each other
d. the two products have the same target market
e. the two products are manufactured by the same firm
Arbitron is in the process of attempting to get away from the paper-diary method of
data collection by having people carry pager-like devices throughout the day. This
data-collection method is called the _____.
a. personal portable diary
b. advertising tracker
c. customized diary
d. electronic media tracker
e. portable people meter
The Lippincott Company, a manufacturer of canned vegetables, offers Southeastern
grocery chains, including BuyRight, the supermarket chain with stores located
throughout the United States, a special price reduction per case on a new line of
salt-free vegetables. BuyRight purchases the salt-free vegetables in very large quantities
from Lippincott and proceeds to ship half of the vegetables to some of its other stores in
the West. What type of buying practice is BuyRight practicing?
a. slotting
b. spiffing
c. forward buying
d. diverting
e. collusion
The _____ creative style is employed when an advertiser makes a generic-type claim
but does so with an assertion of superiority.
a. preemptive
b. unique selling proposition
c. positioning
d. resonance
e. emotional
Which of the following is NOT one of McKinsey & Company’s principle for igniting
explosive self-generating demand?
a. Design the product to be unique or visible.
b. Select and seed the vanguard.
c. Forget the grass roots efforts’”rely on celebrities instead.
d. Ration supply.
e. Tap the power of lists.
Promotion refers to any incentive used by a _____ to induce the trade.
a. wholesaler
b. retailer
c. manufacturer
d. salesperson
e. channel partner
To employ the profit-maximization rule for budget setting, the advertising decision
maker must know the _____ for every brand for which a budgeting decision will be
made.
a. consumer-response factors
b. sales-to-advertising response function
c. availability ratio
d. return on investment calculation
e. hierarchy-of-effects model
Stealing well-known brand names is widely practiced in some newly emerging market
economies, such as China.
Good objectives set precise, quantitative yardsticks of what a marcom program hopes to
accomplish, or _____.
a. achieve management consensus
b. guide subsequent marcom decisions
c. provide standards
d. outline specific strategies
e. set budgeting method
_____ involves the matter of how advertising is allocated during the course of an
advertising campaign.
a. Weight
b. Reach
c. Frequency
d. Cost
e. Continuity
Which of the following is a VALSâ„¢ segment?
a. Innovators
b. Thinkers
c. Believers
d. Experiencers
e. All of these are correct.
During which phase of personal selling does the salesperson attempt to get a
commitment for the prospect to buy the product?
a. approach
b. follow up
c. close
d. inside sales
e. qualifying
Advertising is costly and its effects are often _____.
a. certain
b. uncertain
c. predetermined
d. constant
e. detrimental
Which of the following is NOT a manufacturer’s objective for using trade-oriented
promotions?
a. reducing retail inventories
b. maintaining or increasing the manufacturer’s share of shelf space
c. countering competitive activity
d. selling as much as possible to final consumers
e. introducing new or revised products
Which of the following statements is true?
a. Push and pull strategies are mutually exclusive.
b. There has been a shift from a primarily push promotion strategy to a primarily pull
strategy on the part of manufacturers.
c. There has been a shift from a primarily pull promotion strategy to a primarily push
strategy on the part of manufacturers.
d. Push strategies are targeted to consumers.
e. Pull strategies are targeted to the trade.
Since the 1950s, households in the U.S. have _____ in number, _____ in size, and
_____ in character.
a. increased; grown; changed
b. stayed about the same; increased; stayed the same
c. decreased; increased; remained similar
d. grown; shrunk; changed
e. increased; increased; changed
A(n) _____ is an invaluable advertising medium for conveying much information about
the brand, its character, and its promotional offerings.
a. pop-up ad
b. banner ad
c. CGI ad
d. website
e. interstitial
Which of the following is a type of promotion used by retailers?
a. coupons
b. frequent-shopper programs
c. price deals
d. premiums
e. All of these are correct.
The typical established time frame for measuring _____ is generally four weeks.
a. reach
b. penetration
c. effectiveness
d. consistency
e. efficiency
The secret to facilitating encoding is _____.
a. repetition
b. heuristics
c. hedonism
d. motivation
e. opportunity
With DVR’s, people can _____-shift, or record programs and view them whenever
convenient.
a. place
b. advertising
c. time
d. media
e. attention
Smaller competitors in an industry typically have to invest relatively larger percentages
of their sales revenues in advertising than do larger competitors.
Hedonistic needs are satisfied when consumers attend to messages that make them feel
good.
Explain the criteria that good marcom objectives must satisfy.
Explain what a webblog is and why it is doubtful that blogs represent a major
advertising opportunity.
Pharmaceutical sales representatives are sometimes called detail reps because they
explain product details to physicians.
The real estate market typifies missionary selling.
Retailers typically hire another company, called a clearinghouse, to sort and redeem
coupons.
Budweiser’s advertising with frogs and lizards represents the use of an allegory.