Archives: Quiz

The production of a service is never tied to a physical product. Brands like Victoria’s Secret underwear and Kettle gourmet potato chips, which carry a significant premium over middle-market brands, but are easy to trade-up to because they are relatively […]

Intensive distribution relies on only some of the intermediaries willing to carry a particular product. Category points-of-parity are associations designed to overcome perceived weaknesses of the brand. Answer: FALSE The beginning communications objective associated with a new-to-the world product ‘” […]

Most performance reviews are conducted by outside auditing agencies to avoid bias and internal discrepancies. In the case of prestige goods, the demand curve sometimes slopes upward. Answer: TRUE Information gathering refers to the act of conducting market research and […]

Bic’s Wite-out phased out unprofitable outlets and reduced communications to the minimal level needed to retain hard-core loyals because it was in the maturity stage of the product life cycle. Problem removal and normal depletion are examples of positively oriented […]

The value proposition is stated in the price of a product and readily recognized by the average consumer. Two products with very different performance qualities can have the same conformance quality if both products deliver their respective promised quality. Answer: […]

In first-degree price discrimination, the seller charges less to buyers who purchase in larger volumes. Sales agents and brokers are called facilitators in a marketing channel. Answer: FALSE Some business practices, such as deceptive advertising, exclusive dealing, and predatory competition, […]

When Kraft blends different coffees for the British (who drink coffee with milk), the French (who drink it black), and Latin Americans (who want a chicory taste), it is engaged in ________. A) straight extensions B) product adaptation C) retailer […]

Jordan’s firm enters new markets by tweaking products for new customers, uses variations on a core product to stay one step ahead of the market, and creates interim solutions for industry-wide products. In other words, it uses ________. A) disruptive […]

One of the possible objectives of marketing communications is helping consumers evaluate a brand’s perceived ability to meet a currently relevant need. Which of the following is a negatively oriented relevant brand need? A) normal depletion B) sensory gratification C) […]

The use of media may require international adaptation because media availability varies from country to country. Perceived value refers to the gap between actual needs and satisfied needs of a customer. Answer: FALSE One of the advantages of having a […]

The business buyer makes the fewest decisions in the straight rebuy situation and the most in the new-task situation. Warranties are formal statements of expected product performance by the manufacturer. Answer: TRUE In the context of Starbucks, 24-hour training program […]

The ratio of promoters to detractors is a customer metric that is used to evaluate the performance of marketing plans. Villy Custom Bicycles come in a variety of mix and match colors and styles so consumers can design their own. […]

Firms directing the same strategy to the same target market constitute a strategic group. The typical approach to positioning is to inform consumers of a brand’s membership before stating its point-of-difference. Answer: TRUE A questionnaire should contain sophisticated and uncommon […]

Frequency programs are designed to reward customers who buy often and in substantial amounts. Selective retention works to the advantage of strong brands. Answer: TRUE Mission statements that express unrealistic visions are usually unable to inspire employees to achieve their […]

Cultural branding is essential for small firms, but ineffective for large companies. The selling concept holds that consumers will prefer products that are ethical, environmentally responsible, legal, and social in the context of marketing activities and programs. Answer: FALSE The […]

Regional economic integration has intensified in recent years, which makes it more difficult for marketers to expand globally. A pure service requires a capital-intensive good, but the primary item is a service. Answer: FALSE The forgetting rate is the rate […]

Brick-and-click companies are those that have launched a Web site without any previous existence as a firm. Firms that are viewed as being socially responsible have the added benefit of being able to attract employees. Answer: TRUE Social influence can […]

If the variants within the Tide product under P&G’s detergent line included Tide with Acti-Lift, Tide Plus Febreze Freshness Sport, Tide Plus Febreze, Tide Free, Tide Plus Downy, Tide Coldwater, Tide TOTALCARE, and Tide Free for Coldwater, and all were […]

United Technologies is a good example of a house of brands strategy because it uses individual or separate family brand names including Otis elevators, Carrier heaters and air conditioners, Hamilton Sundstrand aerospace and industrial, and Sikorsky helicopters. Social marketing is […]

“Toughies” are old school buyers who pit sellers against one another. Unlike the more optimistic, team-oriented Gen Xers, Gen Yers are more pragmatic and individualistic. Answer: FALSE Inseparability in the context of a service means that there is a provider-client […]

Industry boundaries are blurring at an incredible rate as companies are recognizing that new opportunities lie at the intersection of two or more industries. An alternate way to increase sales volume is to increase the usage rates among users by […]

Which of the following is generally regarded as the toughest issue of public policy and ethics confronting the direct marketing industry? A) customization of search results B) unwanted e-mail spam C) invasion of consumer privacy D) increasing costs of browsing […]

The most effective sources of information about a product tend to be ________ sources. A) commercial B) public C) experimental D) personal E) paid In which of the following cases is little or no test marketing most likely recommended for […]

Which of the following would a firm most likely use to share video content? A) corporate intranets B) social media sites C) viral blogs D) media portals E) digital kiosks When a company chooses to divest a particular strategic business […]

Which of the following is a traditional right of sellers? A) the right to introduce any product in any size and style, provided it is not hazardous to personal health or safety B) the right to expect a product to […]

________ is best suited for descriptive research. A) An online discussion B) Ethnographic research C) Netnography research D) A survey E) A focus group Kallton is a multinational communications and information technology corporation. Its principal products are mobile telephones and […]

Argonaut Food Stores, a retail giant, hires better-skilled employees than its competitors by employing strategic recruitment practices. It also conducts highly specialized training programs for its employees. In this case, Argonaut has focused on gaining a strong competitive advantage through […]

Which of the following statements about buying centers is true? A) The buying center is a fixed and formally identified unit within a buying organization. B) Roles in the buying center are specified in the organizational chart of a firm. […]

Harmon, a nationwide department store, uses checkout scanners to record shoppers’ purchases. Which term best describes Harmon’s checkout scanners? A) nonprobability sampling tool B) mechanical instrument C) neuromarketing tool D) touch point device E) CRM system Which of the following […]

________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. A) Sales promotion B) Personal selling C) Advertising D) Public relations E) Direct marketing Which packaging component identifies the product or […]

Furniture is an example of a shopping product. Independent off-price retailers purchase merchandise at rates that are substantially higher than regular wholesale rates. Answer: FALSE Sales promotion is the best promotion tool to build personal and long-lasting relationships with customers. […]

Introducing intermediaries into a distribution chain increases the number of direct channel transactions between a manufacturer and its customers. A consumer’s buying behavior is often influenced by reference groups to which the consumer does not belong. Answer: TRUE Price escalation […]

Xenon Corp. releases frequent updates to improve its expensive software products. This marketing approach used by the firm is most likely based on the production concept. The largest, fastest-growing market segments are generally the most attractive ones for smaller companies. […]

Companies that use income segmentation always target the affluent. The primary objective of causal research is to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product. Answer: FALSE […]

A country’s industrial structure is an economic factor that reflects its attractiveness as a market. A channel level is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer. Answer: […]

Sarah Palin reportedly was paid a $11 million advance to write her book Going Rogue. The book took one year to write. In the time she spent writing, Palin could have been paid to give speeches and appear on TV […]

The volatility of the market portfolio is 10%, the expected return on the market is 12%, and the risk-free rate of interest is 4%The Sharpe Ratio for Wyatt Oil is closest to: A) 0.40 B) 0.48 C) 0.56 D) 0.80 […]

Suppose that Merck (MRK) stock is trading for $36.70 per share with 2.11 billion shares outstanding while Boeing (BA) has 697.5 million shares outstanding and a market capitalization of $38.223 billion. Assume that you hold the market portfolio. Merck’s market […]

Consider the following information regarding corporate bonds: Your estimate of the debt beta for Taggart Transcontinental would be: A) 0.05 B) 0.10 C) 0.17 D) 1.00 If Firm A and Firm B are in the same industry and use the […]

In November 2009, Perrigo Co. (PRGO) had a share price of $39.20. They had 91.33 million shares outstanding, a market-to-book ratio of 3.76. In addition, PRGO had $845.01 million in outstanding debt, $163.82 million in net income, and cash of […]

Which of the following statements is FALSE? A) U.S. Treasury securities are widely regarded to be risk-free because there is virtually no chance the government will default on these bonds. B) In general, if the interest rate is r and […]

JR Industries has a $20 million loan due at the end of the year and under its current business strategy its assets will have a market value of only $15 million when the loan comes due. JR is considering a […]

Capital Structure and Unlevered Beta Estimates for Comparable Firms The unlevered beta for Luxottica is closest to: A) 1.00 B) 0.60 C) 0.70 D) 1.50 The person charged with running the corporation by instituting the rules and policies set by […]

The free cash flow to equity in 2010 is closest to: A) 6,255 B) 10,684 C) 11,559 D) 18,394 Answer: A Explanation: A) After-Tax interest expense = interest expense(1 – Tc) = 8,160(1 – .35) = 5,304 Note Tc = […]

Taggart Transcontinental has issued at par a zero-coupon bond with a ten-year maturity. Investors believe there is a 10% chance that Taggart Transcontinental will default on these bonds. If they do default, investors expect to receive only 50 cents per […]

Which of the following statements is FALSE? A) An investor’s preferences will determine only how much to invest in the tangent or efficient portfolio versus the risk-free investment. B) Conservative investors will invest a small amount in the tangent or […]

Consider the following timeline detailing a stream of cash flows: If the current market rate of interest is 6%, then the future value of this stream of cash flows is closest to: A) $1,723 B) $1,500 C) $1,626 D) $1,288 […]

The Aardvark Corporation is considering launching a new product and is trying to determine an appropriate discount rate for evaluating this new product. Aardvark has identified the following information for three single division firms that offer products similar to the […]

Von Bora Corporation is expected pay a dividend of $1.40 per share at the end of this year and a $1.50 per share at the end of the second year. You expect Von Bora’s stock price to be $25.00 at […]

Flagstaff Enterprises expected to have free cash flow in the coming year of $8 million, and this free cash flow is expected to grow at a rate of 3% per year thereafter. Flagstaff has an equity cost of capital of […]