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BUSI 520 Quiz 3 – Question and Answers

1. Which of the following is the first step in setting a pricing policy?
2. In ________ pricing, the firm bases its price largely on competitor’s prices.
3. JJ pays overhead each month, including his company’s bills for rent, heat, interest, and salaries, which are examples of ________ costs.
4. The first step in estimating demand is to ________.
5. A manufacturer has invested $750,000 in a new product and wants to set a price to earn a 15 percent ROI. The cost per unit is $18 and the company expects to sell 50,000 units in the first year. Calculate the company’s target-return price for this product.
6. ________ pricing takes into account a host of inputs, such as the buyer’s image of the product performance, the channel deliverables, the warranty quality, customer support, and attributes such as the supplier’s reputation, trustworthiness, and esteem.
7. The reservation price, the maximum that most consumers will pay for a given product, is known as the ________ price.
8. While shopping at the mall, Jane was asked by one of the sales representatives at the cosmetics counter to try out a new lipstick that her company was test marketing. The company representative asks her how much she would be willing to pay for the lipstick. After trying it out, Jane is of the opinion that $5 is just the right price for it. What type of a reference price is Jane using?
9. A group of small grocery shops forms a new business entity to buy products directly from manufacturers. The group buys products in bulk that are then distributed among members. This helps the shops obtain better profit margins. Which of the following types of vertical marketing systems can be observed here?
10. Which of the following entities is present in a zero-level marketing channel?
11. A new firm typically starts as a local operation selling in a fairly circumscribed market by ________.
12. ________ channel conflict occurs between channel members at the same level.
13. Toyota has an advantage over Lexus due to the fact that there are more Toyota dealers, which helps customers save on transportation and search costs in buying and repairing an automobile. Which of the following service outputs relates to this competitive advantage?
14. Who will most likely be willing to pay for high-value-added channels?
15. ________ serve bulk industries such as coal, lumber, and heavy equipment, assuming title and risk from the time an order is accepted to its delivery.
16. The owner of supermarket chain Reynold’s has realized that customers want a wider variety of goods than is currently available. However, Reynold’s cannot afford the costs of storing excess inventory. Additionally, the owner is not willing to take the risk that the new products will remain unsold. Which of the following types of wholesalers can help Reynold’s meet customer demand while minimizing costs?
17. The ________ sales system works by recruiting independent businesspeople who act as distributors.
18. A factory outlet is an example of a(n) ________ retailer.
19. Reynold’s is a grocery chain that has always catered to mid-market customers. However, the owner, Mal, has noticed that an influx of new residents are buying mostly the lower-cost and discounted products. To attract customers, Mal decides to make a gradual switch to the discount store format, but to do this, he will have to cut costs wherever possible. Which of the following types of services should Mal avoid in order to lower costs?
20. Which of the following is an example of a limited-service retailer?
21. Which of the following ads depict an informational appeal?
22. According to the hierarchy-of-effects model, which of the following corresponds to the behavioral stage that a buyer passes through?
23. Marketing communication strategy can be decided by conducting an image analysis by profiling the target audience in terms of ________.
24. ________ refer to the marketing communications element that involves company-sponsored activities and programs designed to create daily or special brand-related interactions with consumers.
25. Which of the following circumstances are best suited for personal selling?
26. Which of the following elements of the marketing communications mix involves face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders?
27. Which of the following consumer promotion tools offers a free amount of a product or service delivered door-to-door, sent in the mail, picked up in a store, attached to another product, or featured in an advertising offer?
28. What is the weighted number of exposures of a media schedule that reaches 80 percent of the target audience, with an exposure frequency of 4 and impact value of 2?
29. Which of the following is an example of a trade promotion?
30. TV advertising is considered to be particularly advantageous because ________.
31. Which of the following types of advertising timing patterns calls for spending all advertising dollars in a single period?
32. ________ is continuous advertising at low levels, reinforced periodically by waves of heavier activity.
33. Which of the following is NOT one of the four distinctive characteristics of a mobile device?
34. Experts recommend mobile ad copy should occupy only ________ percent of the screen, avoiding complex viewing experiences that may take a toll on consumers’ battery and data availability as well as their time.
35. Which of the following is the “third screen”?
36. Apple hosts a large number of ________, which become customers’ primary source of product information after warranties expire and are organized by product lines and type of user (consumer or professional).
37. Why should mobile ad developers avoid complex viewing experiences?
38. How much was total digital ad spending in 2013?
39. Greta is attempting to get as many orders as possible. Which direct marketing tool is generally associated with the highest order response rate?
40. ________ questions ask about the consequences of the buyer’s problems.
41. Which of the following is most likely to use database marketing?
42. In the FABV approach, if the salesperson is discussing the monetary terms associated with the offering, s/he is talking about ________.
43. Which of the following is the first step in the process of personal selling?
44. Which of the following statements demonstrates behavioral loyalty toward a brand?
45. There are three types of product-team structures. These are ________.
46. Served market share ________.
47. If Ming was interested in capturing distribution metrics for her retail organization, which of the following might she consider?
48. Which of the following is likely to be an important trend in marketing in the future?
49. Which of the following business practices focuses specifically on designing the organization and setting up processes to respond quickly to changes in the environment?
50. As a business practice, broadening involves ________.