Archives: Quiz

A coffee chain could not understand why its new commercial was not successful at improving sales . The commercial, which showed its latte followed by a jingle, had aired for a month on popular television stations. This commercial was not […]

A marketing message is a special type of an attitude object. a. True b. False Answer: What will baby boomers not spend more on than other age cohorts? a. being connected through electronic media b. food c. apparel d. household […]

The more an item is available, the more attractive it becomes. a. True b. False Answer: As a marketer, you would use psychographic segmentation for all of the following EXCEPT: a. developing overall strategy. b. positioning the product. c. identifying […]

The dimensions or qualities a consumer uses when judging the merits of competing purchase options are called: a. purchase options. b. alternative rules. c. evaluative criteria. d. functional categories. Answer: A cultural system consists of three functional areas: a. ecology, […]

A marketing study found that respondents believed that a dark-haired model would be more effective in selling gold jewelry than would a blond-haired model, if the dark-haired model were not perceived to be ethnic. What two ideas of using celebrities […]

Teenagers in every culture show conflict as they make the transition from child to adult. Marketers must understand the nature of their conflicts to appeal to these teenagers successfully. Research done by Saatchi & Saatchi advertising agency found that all […]

When the stimulus presented is below the level of the consumer’s conscious awareness, the result that occurs is called: a. oblivescence. b. stimulus differential. c. the limen. d. subliminal perception. Answer: As a customer’s product knowledge continually increases, what typically […]

When Cathy buys cereal, she tends to buy well-known brands such as Kellogg’s. According to Horney’s research, she can be described as: a. detached. b. aggressive. c. compliant. d. passive. Answer: For marketers, the appeal of nostalgia is important because […]

Research has shown that Mexican firms are less likely to have formal codes of ethics and more likely to bribe public officials than are American or Canadian companies. This demonstrates that: a. business practices can be unethical without being illegal. […]

Mary grew up when the mini skirt and the Beatles were the rage. She came from which of the following age sub-cultures? a. Generation Y b. baby boomers c. baby busters d. baby boom echo Answer: In its advertising, MasterCard […]

Scott thought of himself as a very successful marketer. He created a campaign with a product logo that was very popular and that customers associated with a quality product. It was so popular that, in a few months, the logo […]

Two versions of the same message, one in visual form, the other in verbal form, elicit different reactions. Pictures are found to be superior in affecting evaluations of utilitarian aspects of the product. a. True b. False Answer: Lane was […]

In China, an economic decline is rapidly decreasing the size of the middle-class segment. a. True b. False Answer: The “nuclear family”: a. consists of three generations living together, often including grandparents, aunts, uncles, and cousins. b. refers to that […]

When a consumer expresses dissatisfaction about a product to friends, and/or boycotts the store,this is termed: a. preference response. b. private response. c. second-party response. d. third-party response. Answer: Tilden, a movie critic, recently reviewed the James Bond movie Sky […]

Debra has a good job in a growing company, but has returned to live at home with her parents. What effect will this typically have on her spending behaviour? a. She is likely to invest a lot of her income. […]

A new type of Sheer brand pantyhose would be viewed as a discontinuous innovation. a. True b. False Answer: The reason that a person would be willing to be tattooed now, who would not have considered it 20 years ago, […]

VALS divides people into eight groups according to both psychological characteristics and resources, which include such factors as income, education, energy levels, and eagerness to buy. a. True b. False Answer: The term mood congruencyrefers to the fact that: a. […]

In a study of a beer advertisement, two executions were prepared, one in masculine terms and the other in feminine terms. What kind of people preferred this execution of the ad: “Brewed with tender care, X Beer is a full-bodied […]

Levi’s Jeans is marketing a new line of shoes, made to look old by employing a “distressed look.” This practice is called: a. retro. b. new vintage. c. retired. d. trickle-down. Answer: When purchase decisions are made under conditions of […]

All of the following are examples of cultural gatekeepers, EXCEPT: a. casting directors. b. radio programmers. c. opinion leaders. d. textbook authors. Answer: All of the following are a strategic application of multi-attribute models EXCEPT: a. capitalize on a brand’s […]

Shoppers Drug Mart periodically videotapes consumers and how they interact with new point-of-purchase displays in the cosmetics department. This is an example of: a. conducting qualitative research. b. conducting experimental research. c. conducting observational research. d. tracking data on digital […]

Trisha grew up in a drug-ridden inner-city neighborhood. Through sheer determination and intelligence, Trisha is now a medical doctor teaching on the staff of a large university hospital. Trisha is proud of what she has accomplished, but sometimes she feels […]

In an example of _____________, Volkswagen set up a series of outdoor marketing experiences where they put the “Fun Theory” to the test. This is basically the notion that if you make it fun, people will do it. In one […]

The fashion processes affect all types of cultural phenomena. a. True b. False Answer: Self-consciousness with consumers may vary from situation to situation. a. True b. False Answer: a Sharon is upset with her secretary. Though everyone in the office […]

Erika and Hans, aged 21 and 22 years, have shared many different experiences: a U2 concert in Brussels, skydiving in Bonn, and sailing in the Irish Sea. Erika and Hans could be said to be part of the same age […]

One of the fundamental premises of the modern field of consumer behaviour is that people often buy products not for what they do, but for what they: a. cost. b. mean. c. look like. d. promise. Answer: Sharon was asked […]

Maslow’s hierarchy of needs approach implies that the order of development of motives is fixedthat a certain level must be attained before the next higher level is activated. a. True b. False Answer: Products that customers put on the subordinate […]

Doritos have capitalized on _________ in their memorable Superbowl ads. a. spokescharacters b. social marketing c. green marketing d. consumer-generated content Answer: The ad from Salesgenie.com that depicted two animated pandas who spoke in heavy Chinese accents was pulled because […]

All of the following are true about the trickle-down theory of fashion, EXCEPT: a. it is useful when a stable class structure exists. b. status symbols trickle down from upper to lower classes. c. upper and lower classes are easily […]

The elaboration likelihood model (ELM) refers to the nature of counter-arguments a consumer makes when listening to a persuasive message. a. True b. False Answer: Body decoration or alteration is often used to distinguish group members from nonmembers. a. True […]

Martin is a member of an online buyers’ club that reinforces purchasing behaviour by giving him prizes that increase as he increases his purchases. This is known as a form of: a. frequency marketing. b. stimulus reward. c. conspicuous consumption. […]

Some current theorists say that people do not exhibit a consistent personality across different situations; they argue that the personality construct is merely a convenient way to think about other people. a. True b. False Answer: Consumers’ beliefs about a […]

One of the byproducts of the increase in popularity of tattoos is the desire to have a tattoo removed due to what some physicians call “tattoo regret.” a. True b. False Answer: Al was considered a low self-monitor, so when […]

Enterprise value equals the: A. combined market value of debt and equity minus excess cash. B. market value of equity minus the market value of debt plus excess cash. C. market value of debt plus the book value of equity […]

Assuming market efficiency, which one of these is the least sensible explanation of why convertibles and warrants are issued? A. Cash flows from these securities best match the cash flows of the firm. B. The firm is relatively large with […]

BT Corporation has decided to build a new facility for its Ramp;D department. The cost of the facility is estimated at $125 million. BT plans to finance this project using its traditional debt-equity ratio of .65. The issue cost of […]

Consider a bond with a coupon rate of 8 percent that pays semiannual interest and matures in eight years. The market rate of return on bonds of this risk is currently 11 percent. What is the current value of a […]

The hypothesis that market prices reflect all publicly available information is called _____ form efficiency. A. open B. strong C. semistrong D. weak E. stable Answer: Denise will receive annual payments of $10,000 for the next 25 years. The discount […]

Westover Industries has 60,000 shares outstanding. Each share has one attached warrant. A warrant holder can purchase one new share of stock for five warrants plus $5 per warrant. The stock is currently selling for $27 per share. All else […]

Ted purchased an annuity today that will pay $1,000 a month for five years. He received his first monthly payment today. Allison purchased an annuity today that will pay $1,000 a month for five years. She will receive her first […]

Which one of the following is a correct statement concerning risk premium? A. The greater the volatility of returns, the greater the risk premium. B. The lower the volatility of returns, the greater the risk premium. C. The lower the […]

Bikes and More just announced its next annual dividend will be $2.42 a share and all future dividends will increase by 2.5 percent annually. What is the market rate of return if this stock is currently selling for $22 a […]

Starting today, Alicia is going to contribute $100 a month to her retirement account. Her employer matches her contribution by 50 percent. If these contributions remain constant, and she earns a monthly rate of .55 percent, how much will her […]

Firm A is acquiring Firm T for $22,500 in cash. Firm A has 2,300 shares of stock outstanding at a market value of $26 a share. Firm T has 1,200 shares of stock outstanding at a market price of $17 […]

The act where an owner of an option buys or sells the underlying asset, as is his right, is called ______ the option. A. striking B. exercising C. opening D. splitting E. strangling Answer: Event studies of dividend omissions indicate […]

A trading opportunity that offers a riskless profit is called a(n): A. put option. B. call option. C. market equilibrium. D. arbitrage. E. cross-hedge. Answer: Marshall’s purchased a corner lot five years ago at a cost of $498,000 and then […]

The forward rate market is dependent upon: A. current forward rates exceeding current spot rates. B. current spot rates exceeding current forward rates over time. C. current spot rates equaling current forward rates on average over time. D. forward rates […]

Suppose the Simmons Co’s common stock has a beta of 1.37, the risk-free rate is 3.4 percent, and the market risk premium is 8.2 percent. The yield to maturity in the firm’s bonds is 7.6 percent and the debt-equity ratio […]

A&M Hardware assumes new customers will default 8 percent of the time but if they don”t default, they will become repeat customers who always pay their bills. Assume the average sale is $383 with a variable cost of $260, and […]

Theo is depositing $1,300 today in an account with an expected rate of return of 8.1 percent. If he deposits an additional $3,200 two years from today, and $4,000 three years from today, what will his account balance be ten […]