BUSI 330 quiz 5 Liberty University complete answers

BUSI 330 quiz 5 Liberty University complete answers

Buy this one and get an A grade for sure! Complete all different versions!

LUO TA and liberty university professor guide versions all the solutions are here.

 

Question 1 The four major types of limited­service merchant wholesalers are cash and carry wholesalers, drop shippers, truck jobbers, and __________.

Question 2 The Sports Authority is a sporting goods superstore that provides year­round inventory of equipment for just about any sport you can name. Even during the "off season," equipment for seasonal sports is available at the Sports Authority. Which utility does the Sports Authority best provide?

Question 3 As a business format franchisor, McDonald's provides step­by­step procedures for most aspects of the business and

Question 4 Jane Westerlund owns a small retail picture frame store in a local strip mall. She just bought 10 picture frames from a promising woodworker for $36 each. Based on market conditions, she will sell these for $100 each. What is the percentage markup based on the selling price?

Question 5 Subway is a popular __________.

Question 6 McDonald's, Radio Shack, and Subway are examples of __________.

Question 7 There are two general types of franchises: business­format franchises and __________ franchises.

Question 8 Stores that carry tremendous depth in one primary line of merchandise are referred to as

Question 9 Vending machines are an example of __________.

Question 10 Which type of outlet is most likely in its decline stage of the retail life cycle?

Question 11 The two­way flow of communication between a buyer and a seller, often in a face­to­face encounter, designed to influence a person's or group's purchase decision is referred to as

Question 12 Figure 14­5 The promotion decision process is divided into three phases. In Figure 14­5 above, B refers to the __________ phase.

Question 13 For a promotional campaign, the hierarchy of effects refers to the stages a prospective buyer goes through, which include:

Question 14 In the feedback loop, the impact the message has on the receiver's knowledge, attitude, or behaviors during the communications process is referred to as __________.

Question 15 Which of the following weaknesses is associated with sales promotions?

Question 16 The local radio station broadcast a story about a dry­cleaner that requested coat donations. The company offered to clean the coats and deliver them to people in need. The various addresses of the dry­cleaner chain were also broadcast so that donations could be dropped off. Since this featured business did not pay for this exposure, it benefited from __________.

Question 17 According to the textbook, __________ recently won Advertising Age magazine's coveted Media Agency of the Year award.

Question 18 Which of the following statements describes a disadvantage associated with personal selling?

Question 19 Lenox China Co. would like to get its annual Christmas ornament series into Macy's department stores. Macy's has a buyer in New York City who makes decisions on its giftware. Which promotional element would be most appropriate for Lenox to use to reach the Macy's buyer?

Question 20 During the planning phase of an IMC program, a firm will identify the target audience, specify the promotion objectives, set the budget, select the right promotional tools, __________, and schedule the promotion.

Question 21 When Bebe, a contemporary women's clothing store, uses seductive imagery in its advertising, it is using which type of advertising appeal?

Question 22 When developing the advertising program, specifying __________ helps advertisers with other choices in the process such as selecting media and evaluating a campaign.

Question 23 One of the disadvantages associated with television as an advertising medium is that it

Question 24 One of the advantages associated with television as an advertising medium is that it

Question 25 Click fraud can occur when legitimate website visitors click on ads without any intention of looking at the site to keep them free. This practice is called _________.

Question 26 The Wall Street Journal and USA Today each have a national distribution of more than

Question 27 Suppose the following information: The cost of a full page color ad in the U.S. national edition of The Wall Street Journal (newspaper) is $312,283 and its U.S. audience size is 1,566,027. The cost of a full page color ad in the U.S. national edition Sports Illustrated (magazine) is $392,800 and has an audience size of 3,150,000. The cost of a 30­second ad on the most recent Super Bowl (television) is $3,500,000 and has an audience size of 111,300,000. Using this information, which of the following is the most appropriate metric to use to determine which medium would provide the most efficient use of your limited resources?

Question 28 According to Figure 15­1A above, which of the following media alternatives has the LARGEST amount of advertising expenditures?

Question 29 Consumer­oriented sales promotions refer to

Question 30 The type of appeal used to imply either directly or subtly that the product is more fun or exciting than competitors' offerings is referred to as a(n) _________.

 

Question 1

As a result of legislation, consumers who do not want to receive telephone calls related to a company sales efforts can

Question 2

Store layout, colors, lighting, and music are all considered part of a store's retail

Question 3

A retail outlet that focuses on one type of product at very competitive or discount prices and often dominates the market is referred to as a __________.

Question 4

The major difference between an off‑price retailer and a discount store is that off‑price retailers purchase merchandise from manufacturers __________ and discount stores buy from wholesalers __________.

Question 5

Higher paper costs, increased postage rates, the growing interest in do‑not‑mail legislation, and concern for "green" mailings have resulted in

Question 6

Vending machines are no longer limited by the need for cash. In Japan, South Korea, and the Philippines, consumers use mobile phones that transmit payments to vending machines wirelessly. This is an example of how vending machines can provide which type of utility?

Question 7

Which of the following firms has made the wisest wholesaler choice for its product?

Question 8

According to the retail life cycle, in which stage would market share rise gradually, although profits may be low because of start‑up costs?

Question 10

Specialty stores that dominate the market are referred to as __________.

Question 12

The promotional objective of the introduction stage of the product life cycle is to __________ consumers in order to increase their level of awareness of the product offering.

Question 13

Promotional programs are directed at all of the following EXCEPT:

Question 14

All of the following are examples of direct marketing tools EXCEPT:

Question 15

Which of the following is an inherent weakness of advertising?

Question 16

The __________ includes advertising, personal selling, sales promotion, public relations, and direct marketing.

Question 17



Figure 14‑2

To communicate with consumers, a company can use one or more of five promotion alternatives. In Figure 14‑2 above, the promotional element labeled C represents __________.

Question 18

The promotional mix can be used to: (1) inform prospective buyers about the benefits of the product; (2) persuade them to try it; and (3) __________.

Question 19

Chrysler Corporation provides support and incentives for its Chrysler, Dodge, and Jeep dealers. Through a multi‑level program, Chrysler provides incentives to reward dealers for meeting sales goals. Dealers receive an incentive when they are near a goal, another when they reach a goal, and a larger incentive if they exceed sales projections. All of these actions are intended to encourage Chrysler dealers to __________ the Chrysler products through the channel to consumers.

Question 20

Which of the following statements about advertising is most accurate?

Question 21

A form of click fraud is called "PTR," which is an acronym for

Question 22

When Allyn went to get his newspaper, he found the paper in a plastic bag along with a box containing one dose of Alka‑Seltzer Heartburn Relief medication. In this example, which type of sales promotion is Alka‑Seltzer using?

Question 23

Some studies show that __________ are superior to other advertising strategies.

Question 24

Which sales promotion tool is the best match for the growth in consumer (or user)‑ generated content?

Question 25

Interactive ads that have drop‑down menus, built‑in games, or search engines to engage viewers are referred to as __________.

Question 26

A hardware store owner placed an advertisement for Sylvania LED light bulbs in the local newspaper. Sylvania provided the storeowner with several high‑quality, camera‑ready sample advertisements. In addition to supplying the advertising formats, Sylvania also paid 50 percent of the cost to place the ad in the paper. Sylvania was using __________ to promote its products.

Question 27

In terms of scheduling advertising, purchase frequency refers to

Question 29



As shown in the McDonald's Sales Promotion Image above, McDonald's partners with Hasbro each year to offer a Monopoly sales promotion that involves customers who purchase selected menu items will receive two tokens that correspond to the properties on the popular game board. If a set of tokens match the color‑coded properties, customers will win a cash prize of up to $1 million. Customers may also win "Instant" prizes redeemable for specific food or drink items. What is this popular sales promotion?

Question 30

Sales promotions that usually offer a discounted price to the consumer, which encourages trial of the product, are commonly referred to as __________.

 

 

Location-based social networking apps such as Foursquare reward customers for

a.   using minutes on their mobile phones.

b.   shopping online.

c.   responding to TV ads.

d.   reporting their locations and visiting stores.

e.   answering customer service surveys on their mobile phones.

Foursquare, Gowalla, Booyah, Brightkite, and Loopt are

a.   multiplayer video games.

b.   advertising agencies.

c.   location-based social networking apps for smartphones.

d.   names of new phones targeted at college students.

e.   restaurants with new food concepts.

Why do retailers like location-based apps such as Foursquare?

a.   they use audio and video to communicate a message

b.   all consumers demand technology-based offerings today

c.   they are free

d.   they attract consumers who are not price sensitive

e.   they provide an opportunity to personalize offerings to potential customers

All activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use are referred to as __________.

a.   manufacturing

b.   retailing

c.   wholesaling

d.   facilitating

e.   logistics

Retailing refers to all activities involved in the

a.   selling, renting, and providing of products and services to ultimate consumers for personal, family, or household use.

b.   selling of tangible products to ultimate consumers for personal, family, or household use.

c.   selling of tangible products to ultimate consumers for personal, household, or industrial use.

d.   selling, renting, leasing, or reselling of products and services to ultimate consumers or small industrial users.

e.   selling, renting, and providing of products and services without retaining the title to these offerings.

A method of classification that describes the degree of service provided to the customer is referred to as _________.

a.   product involvement

b.   product assortment

c.   merchandise line

d.   level of service

e.   form of ownership

Three __________ are provided by self-, limited-, and full-service retailers.

a.   levels of distribution

b.   levels of involvement

c.   levels of service

d.   service commitments

e.   merchandise lines

The degree of service provided to the customer from self-, limited-, and full-service retailers is referred to as __________.

a.   involvement

b.   level of service

c.   service commitment

d.   customer obligation

e.   degree of commitment

Level of service is used to describe the degree of service provided to the customer.  Three levels of service are provided by self-, _________-, and full-service retailers.

a.   limited

b.   commitment

c.   involvement

d.   obligation

e.   pledge

A method of classification that describes how many different types of products a store carries and in what assortment is referred to as a __________.

a.   product mix

b.   service level

c.   product assortment

d.   store composition

e.   merchandise line

Retailers have come to realize that consumers want products that are consistent with their personal values and

a.   foreign regulations.

b.   meet third party certifications.

c.   they want to purchase them from retailers with similar values.

d.   cost less.

e.   social image.

When Home Depot switched its in-store light fixture displays to compact fluorescent light bulbs it saved __________ per year.

a.   $16 million

b.   $24 million

c.   $29 million

d.   $31 million

e.   $42 million

By requiring its toy suppliers to trim one square-inch of packaging from its lines, Walmart reduced packaging by __________ tons.

a.   3,000

b.   3,500

c.   4,000

d.   4,500

e.   5,000

Target has taken the “green” concept to its advertising agency and requires

a.   the use of the Green Certified Retail Operations Guide.

b.   that all vehicles produce no emissions.

c.   a “green” logo appears at the end of the ad.

d.   that waste from shooting new commercials be recycled or composted.

e.   an environmental impact report each month.

There are three general forms of retail ownership: contractual system, corporate chain, and __________.

a.   dual ownership

b.   industry consortium

c.   retailing cooperative

d.   independent retailer

e.   multi-national cartel

There are three general forms of retail ownership: contractual system, independent retailer, and __________.

a.   dual ownership

b.   industry consortium

c.   retailing cooperative

d.   multi-national cartel

e.   corporate chain

There are three general forms of retail ownership: independent retailer, corporate chain, and __________.

a.   dual ownership

b.   industry consortium

c.   retailing cooperative

d.   contractual system

e.   multi-national cartel

One of the most common forms of retail ownership is the __________ owned by a person.

a.   corporate chain

b.   consumer cooperative

c.   contractual system

d.   independent retailer

e.   administered system

Independent retailers account for most of the __________ retail establishments in the United States.

a.   50,000

b.   90,000

c.   500,000

d.   900,000

e.   1.1 million

Most of the 1.1 million retail establishments in the United States including hardware stores, convenience stores, clothing stores, and computer and software stores are owned by __________.

a.   corporate chains

b.   contractual systems

c.   independent retailers

d.   conglomerate

e.   multinationals

Which form of retail outlet would most likely offer customer convenience, quality personal service, and lifestyle compatibility?

a.   corporate chain

b.   independent retailer

c.   administered system

d.   contractual system

e.   sole incorporation

Your neighborhood dry cleaner or florist is likely to be categorized as an independent retailer.  This means it is owned by a(n) __________.

a.   individual

b.   conglomerate

c.   consortium

d.   corporation

e.   cooperative

A form of ownership that involves multiple outlets under common ownership is referred to as a(n).

a.   corporate chain

b.   consumer cooperative

c.   contractual system

d.   independent retailer

e.   administered system

Bloomingdale’s stores are all part of __________ corporate chain.

a.   Dillard’s

b.   Macy’s

c.   Target’s

d.   Walmart’s

e.   Saks Fifth Avenue

Which of the following statements regarding corporate chains is most accurate?

a.   Corporate chains usually avoid using centralized decision-making.

b.   Corporate chains generally own most if not all of their suppliers so they do not have to negotiate for price.

c.   Consumers have fewer choices in merchandise since all buying decisions are made unilaterally.

d.   Corporate chains offer the least benefit to consumers since they are the farthest removed from the ultimate consumer.

e.   Corporate chains are multiple outlets under common ownership. 

Consumers benefit in dealing with retail corporate chains because

a.   corporate chains have more experience than other forms of retailers.

b.   they can own stock in the same company where they shop since corporate chain stock must be publicly-traded.

c.   they can bargain with a manufacturer to obtain product volume discounts on orders, which can be passed on to consumers in terms of lower prices.

d.   there are multiple outlets with varied merchandise and independent management policies.

e.   merchandise is arranged and displayed by professional designers making their shopping experience less stressful.

Consumers benefit in dealing with retail corporate chains because

a.   corporate chains have more experience than other forms of retailers.

b.   they can own stock in the same company where they shop since corporate chain stock must be publicly-traded.

c.   they can establish a credit history more easily than with other forms of retailers.

d.   there are multiple outlets with similar merchandise and consistent management policies.

e.   they have less stress in making decisions since merchandise is arranged and displayed by professional designers.

The acronym RFID stands for

a.   retail franchise identification designation.

b.   required financial identification.

c.   radar frequency identification.

d.   radio frequency identification.

e.   retail federation of independent department stores.

Walmart has developed a sophisticated inventory management and cost control system that allows rapid price changes for each product in the store.  The firm also uses technologies such as __________ to improve the quality of information available about products.

a.   radio frequency identification

b.   encapsulation techniques

c.   bar code scanners

d.   nanotechnology

e.   cookies

Independently owned stores that band together to act like a chain are referred to as __________.

a.   corporate chains

b.   cooperative marketing systems

c.   contractual systems

d.   regional shopping centers

e.   self-service systems

The three basic types of contractual systems are:

a.   retailer-sponsored cooperatives, wholesaler-sponsored voluntary chains, and franchises.

b.   dual ownership agreements, industry consortiums, and non-binding cooperatives.

c.   wholesaler-sponsored voluntary chains, non-binding cooperatives, and franchises.

d.   dual ownership agreements, industry consortiums, and multi-national cartels.

e.   non-binding, binding, and in perpetuity.

One way neighborhood grocers can take advantage of volume discounts commonly available to chains is to

a.   purchase a franchise membership.

b.   become a subsidiary of a larger supermarket chain like Kroger.

c.   join a professional merchant association and hire food brokers to negotiate lower prices for produce and dry goods.

d.   create a grocery networking system to exchange coupon vouchers.

e.   participate in a retailer-sponsored cooperative with other independent grocers.

Neighborhood grocers that ban together with several other independent grocers who all agree to buy their goods directly from food manufacturers are a form of

a.   retailer-sponsored cooperative.

b.   consortium system.

c.   administrative system.

d.   conglomerate system.

e.   collaborate chain.

Which method of classifying retail outlets would be most appropriate for describing franchise operations?

a.   form of ownership

b.   level of service

c.   merchandise line

d.   method of operation

e.   revenues generated

Franchising is a type of __________.

a.   administered system

b.   contractual system

c.   vertically integrated chain

d.   retail-sponsored cooperative

e.   corporate system

In a(n) __________, an individual or firm contracts with a parent company to set up a business or retail outlet.

a.   administered system

b.   vertically integrated chain

c.   retail-sponsored cooperative

d.   franchise system

e.   corporate system

What type of contractual system describes a situation where assistance in selecting the location, setting up the store or facility, advertising, and training personnel is provided?

a.   administered system

b.   conglomerate system

c.   franchise system

d.   vertical integrated system

e.   retail-sponsored cooperative

As a franchisor, Radio Shack would assist a franchisee in selecting the store location, setting up the store, advertising, and __________.

a.   developing the marketing program

b.   training personnel

c.   offering performance bonuses

d.   ordering and restocking inventory

e.   paying insurance and legal fees

There are two general types of franchises:

a.   product-format franchises and distribution franchises.

b.   business-format franchises and manufacturing franchises.

c.   business-format franchises and general service franchises.

d.   business-format franchises and venture franchises.

e.   business-format franchises and product-distribution franchises.

There are two general types of franchises: business-format franchises and __________ franchises.

a.   product-distribution

b.   general service

c.   manufacturing

d.   distribution

e.   venture

A franchise where the franchiser provides a few general guidelines to the franchisee is known as a

a.   business-format franchise.

b.   manufacturing franchise.

c.   product-distribution franchise.

d.   general service franchise.

e.   business franchise venture.

Ford and Coca-Cola represent which type of franchise?

a.   business-format franchise

b.   manufacturing franchise

c.   general service franchise

d.   product-distribution franchise

e.   business franchise venture

A franchise where the franchisor provides step-by-step procedures for most aspects of the business is known as a

a.   business-format franchise.

b.   product-distribution franchise.

c.   business franchise venture.

d.   manufacturing franchise.

e.   general service franchise.

McDonald’s, Radio Shack, and Subway are all _________.

a.   product-distribution franchises

b.   business franchise venture

c.   business-format franchises

d.   manufacturing franchises

e.   general service franchise

As a business format franchisor, McDonald’s provides step-by-step procedures for most aspects of the business and

a.   provides an accounting system to pay the franchisee bills promptly.

b.   shops for the best food values.

c.   maintains the property.

d.   guidelines for the most likely decisions a franchisee will face.

e.   disciplines dishonest employees.

Subway is a popular __________.

a.   business-format franchise

b.   product-distribution franchise

c.   business franchise venture

d.   manufacturing franchise

e.   general service franchise

Subway is one of the fastest growing __________.

a.   product-distribution franchises

b.   corporate chains

c.   business-format franchises

d.   independently owned retailers

e.   horizontal marketing systems

Franchising is attractive for the franchisee because

a.   it gives the franchisee complete control over the delivery and presentation of merchandise.

b.   the license fees paid to the franchisor are the only fees the franchisee pays.

c.   it relieves the franchisee from any company or product liabilities.

d.   it offers the franchisee the opportunity to enter into a well-known, established business where managerial advice is provided.

e.   the franchisee is completely his or her own boss.

Organizations that decide to franchise (franchisors) have __________ expansion costs accompanied by __________ control, compared to owning their own retail outlets.

a.   greater; greater

b.   reduced; reduced

c.   greater; reduced

d.   reduced; greater

e.   greater; about the same

By selling franchises, an organization __________ the cost of expansion and __________ its control compared to owning its own retail outlets.

a.   increases; increases

b.   increases; reduces

c.   reduces; increases

d.   increases; retains about the same

e.   reduces; reduces

The three commonly used terms to describe levels of service are

a.   self-service, limited-service, and full-service.

b.   self-service, sales-service, and customer-service

c.   self-service, automated service, and online-service.

d.   limited-service, full-service, and automated-service.

e.   wholesaler-service, retailer-service, and customer-service.

The level of service that requires that the customers perform many functions during the purchase process is __________.

a.   full-service

b.   limited-service

c.   self-service

d.   customized-service

e.   automated-service

Retailing is an important marketing activity.  Not only do producers and consumers meet through retailing actions, but retailing also creates __________.

a.   the nation’s largest source of tax revenues

b.   the largest source of charitable contributions

c.   limited utilities for consumers

d.   customer value

e.   a sense of community

The __________ provided by retailers create value for consumers.

a.   utilities

b.   wholesaling functions

c.   outsourcing

d.   logistics

e.   synergies

The four utilities offered to consumers through retailing are

a.   convenience, performance, possession, and form.

b.   time, place, possession, and form.

c.   product, price, place, and promotion.

d.   people, productivity, process, and physical environment.

e.   convenience, consistency, competition, and choice.

Wells Fargo is one of the best-run banks in the United States.  It reaches retail customers through 9,000 stores, a worldwide network of 12,000 ATMs, and its online banking service.  Which utility does Wells Fargo best provide?

a.   time

b.   possession

c.   place

d.   form

e.   performance

Enterprise car rental agency differentiates itself from other similar agencies by providing a delivery service.  This delivery service is particularly valuable to someone who has been left stranded without transportation.  By making it easy to rent temporary transportation, Enterprise is emphasizing which utility?

a.   form

b.   product

c.   service

d.   possession

e.   convenience

CarMax dealers have adopted a “no-hassle, no-haggle” sales policy that eliminates the need for negotiating.  Instead, all customers are offered the same price.  Test drives, financing, trade-ins, and leasing are all offered to encourage customers to purchase a car.  Which utility does CarMax best provide?

a.   product

b.   form

c.   convenience

d.   service

e.   possession

Albertson’s Supermarket accepts debit and credit cards as well as cash and checks for purchases.  Its acceptance of various forms of payment provides its customers with __________ utility.

a.   time

b.   place

c.   possession

d.   form

e.   public

A restaurant that offers food made exactly to each customer’s preference is providing its customers with __________ utility.

a.   time

b.   place

c.   possession

d.   form

e.   process

The ability to shop over the Internet 24/7 provides consumers with __________ utility.

a.   form

b.   time

c.   convenience

d.   possession

e.   performance

At the Christmas Tree Shop, customers can shop for Christmas gifts at any time of year.  What type of utility does this store primarily provide for its customers?

a.   place and conformance

b.   possession and form

c.   form

d.   performance

e.   time

The Sports Authority is a sporting goods superstore that provides year-round inventory of equipment for just about any sport you can name.  Even during the “off season”, equipment for seasonal sports is available at the Sports Authority.  Which utility does the Sports Authority best provide?

a.   time

b.   convenience

c.   possession

d.   form

e.   performance

Retailing’s economic value is represented by the people employed in retailing as well as by

a.   the price asked for any one item.

b.   the cost of goods sold.

c.   the net return on capital.

d.   annual sales of retailers.

e.   the elimination of global boundaries.

Retailing’s economic value is represented by the annual sales of retailers and __________.

a.   the price asked for any one item

b.   the cost of goods sold

c.   the people employed in retailing

d.   the net return on capital

e.   the elimination of global boundaries



As shown in Figure 16-2 above, the greatest dollar amount of retail sales in the United States is generated by __________.

a.   food and beverage stores

b.   sporting goods, books, and music stores

c.   electronic stores

d.   automotive dealers

e.   furniture and home furnishing stores

As shown in Figure 16-2 above, the smallest dollar amount of retail sales in the United States is generated by __________.

a.   automotive dealers

b.   food and beverage stores

c.   sporting goods, books, and music stores

d.   electronic stores

e.   furniture and home furnishing stores

Four of the 30 largest businesses in the United States are retailers—Walmart, Costco, Home Depot, and _________.

a.   Sears

b.   Target

c.   Best Buy

d.   JC Penney

e.   Bloomingdale

Walmart’s $421 billion in sales in 2010 surpassed the gross domestic product of all but __________ countries for that same year.

a.   5

b.   12

c.   18

d.   29

e.   50

Outside the United States, large retailers include __________ in Japan, Carrefour in France, Metro Group in Germany, and Tesco in Britain.

a.   Aeon

b.   Toshei

c.   Seebi

d.   Goshen

e.   Toshi

There are three key methods of classifying retail operations

a.   method of operation, revenues generated, and merchandise line.

b.   form of ownership, method of operation, and merchandise line.

c.   form of ownership, level of service, and merchandise line.

d.   level of service, merchandise line, and revenues generated.

e.   merchandise line, form of ownership, and revenues generated.

Which of the following is a commonly used method of classifying retail outlets?

a.   service versus product

b.   form of ownership

c.   proportion of national versus private label brands carried

d.   revenues generated

e.   profitability

The _________ distinguishes retail outlets based on whether independent retailers, corporate chains, or contractual systems own the outlet.

a.   product involvement

b.   service level

c.   merchandise line

d.   product assortment

e.   form of ownership

 

Off-price retailers, warehouse clubs, and grocery stores that require customers to bag their groceries provide what level of retail service?

a.   full-service

b.   limited-service

c.   customized-service

d.   self-service

e.   automated-service

A number of U.S.-based retail chains have begun using lines and terminals that do not use clerks.  This is an example of what level of retail service?

a.   full-service

b.   self-service

c.   limited-service

d.   customized-service

e.   functional-service

Costco requires customers to perform many shopping functions during the purchasing process and all nonessential customer services have been eliminated.  What level of service does Costco offer?

a.   limited-service

b.   full-service

c.   customized-service

d.   self-service

e.   restricted-service

General merchandise stores such as Walmart, Kmart, and Target are usually considered __________ outlets.

a.   exclusive-service

b.   minimal-service

c.   self-service

d.   full-service

e.   limited-service

Outlets where customers are responsible for most shopping activities, although salespeople are available in some departments, would be classified as __________ outlets.

a.   limited-service

b.   exclusive-service

c.   minimal-service

d.   self-service

e.   full-service

Loehmann’s is an upscale, off-price specialty retailer for name-brand designer fashions. Loehmann’s provides consumers with

a.   full-service.

b.   limited service.

c.   self- service.

d.   restricted service.

e.   functional service.

Target recently introduced its Target REDcard, where cardholders receive 5% back for each purchase.  Target also allows customers to return merchandise within 30 days but still does not offer alteration services.  Target offers what level of service to its customers?

a.   full-service

b.   self-service

c.   automated-service

d.   limited-service

e.   customized service

At which level of service would the customer perform the least number of functions?

a.   automated-service

b.   minimal-service

c.   self-service

d.   limited-service

e.   full-service

Specialty stores and department stores are frequently categorized by which level of service?

a.   full-service

b.   exclusive-service

c.   minimal-service

d.   self-service

e.   limited-service

Most specialty stores and department stores, which provide many services to their customers, are considered to be __________.

a.   exclusive-service retailers

b.   limited-service retailers

c.   full-service retailers

d.   full-domain retailers

e.   upscale-retailers

Godiva Chocolatier invites consumers to stop by one of their stores for an unforgettable experience, including delectable chocolates, decorative gift collections, and unrivaled customer care.  What type of retail service is Godiva offering?

a.   full-service

b.   limited-service

c.   self- service

d.   restricted-service

e.   functional-service

Saks Fifth Avenue is an upscale retailer that offers designer brand women’s apparel, fragrances, jewelry, and leather accessories.  The retailer relies on better service to sell its products and to retain its customers.  Saks Fifth Avenue would be classified as a(n) _________.

a.   exclusive-service retailer

b.   limited-service retailer

c.   full-service retailer

d.   full-domain retailer

e.   limited-domain retailer

A specialty retail store carries a broad selection of small kitchen appliances.  It has an informed staff and will even gift-wrap your purchases free of charge.  It also offers a shop for repairs should your appliances need maintenance.  This store offers __________ to its customers.

a.   exclusive-service

b.   upscale-service

c.   self-service

d.   limited-service

e.   full-service

Williams-Sonoma is a specialty store that caters to customers who want to cook at home.  It offers free cooking classes, has frequent demonstrations by cookbook authors, and has employees who are knowledgeable about food preparation.  The sales staff  helps customers make their selections.  Williams-Sonoma is a __________ retailer.

a.   exclusive-service

b.   full-service

c.   upscale-service

d.   self-service

e.   limited-service

Nordstrom stores typically have 50 percent more salespeople on the floor than similarly sized stores, and the salespeople are renowned for their professional and personalized attention to customers.  Nordstrom would be considered a(n) __________.

a.   exclusive-service retailer

b.   limited-service retailer

c.   full-service retailer

d.   upscale-retailer

e.   limited-domain retailer

A Woman’s Place is a retail store, created and staffed by women, that offers products and services relating to maternity needs.  For expectant mothers, it offers advice and personal shopping services, help with hair and/or make-up problems, and free delivery.  A Woman’s Place is an example of a(n) __________ retailer.

a.   franchise

b.   service

c.   limited -service

d.   full-service

e.   upscale

Retail outlets vary by their merchandise lines, the key distinction being the __________ and __________ of the items offered to customers.

a.   breadth; span

b.   breadth; depth

c.   breadth; line

d.   scope; inventory

e.   range; span

Your local Safeway grocery store is likely to be categorized according to what form of ownership, level of service, or merchandise line?

a.   form of ownership

b.   level of service

c.   merchandise line

d.   method of operation

e.   revenue generated

Depth of product line refers to

a.   the percentage of goods stored as inventory.

b.   the variety of different product a store carries

c.   variations in price and color on specific items in a store.

d.   the number of items available within a product line.

e.   the number of different product classes owned by a corporate chain.

A large assortment of each item in a store is referred to as

a.   product span.

b.   breadth of product line.

c.   length of product line.

d.   width of product line.

e.   depth of product line.

Your local Hallmark retailer carries thousands of greeting cards.  You can find cards for a “twins” birthday, from my cat to yours, and many other unique occasions.  This is an example of the _________ that the Hallmark retailer carries.

a.   depth of product line

b.   breadth of product line

c.   height of product line

d.   length of product line

e.   width of product line

New Balance offers shoes for men, women, and children in many sizes and foot widths.  It offers running, cross training, walking, golf, and other types of shoes.  This an example of the __________ that New Balance offers to its customers.

a.   product items

b.   depth of product line

c.   breadth of product line

d.   versatility of product family

e.   variety of product mix

The variety of different items a store carries is referred to as the

a.   retailing mix.

b.   depth of product line.

c.   breadth of product line.

d.   width of product line.

e.   length of product line.

The variety of different items a store carries is referred to as

a.   the quality of merchandise a store carries.

b.   the breadth of product line.

c.   a wide assortment of a few related items.

d.   the physical size, from large to small, of products within a product line.

e.   depth of product line.

Your local Target retailer carries a variety of different items.  You can find everything ranging from socks and DVDs to baby items and groceries.  This is an example of the __________ carried by Target.

a.   breadth of product line

b.   depth of product line

c.   variety of product line

d.   versatility of product line

e.   product mix

Stores that carry a considerable assortment (depth) of a related line of items are referred to as

a.   limited-line stores.

b.   general merchandise stores.

c.   scrambled merchandise stores.

d.   hypermarkets.

e.   intertype outlets.

Stores that carry tremendous depth in one primary line of merchandise are referred to as

a.   hypermarkets.

b.   intertype outlets.

c.   scrambled merchandise stores.

d.   limited-line stores.

e.   single-line stores.

Victoria’s Secret, a nationwide chain, carries great depth in women’s lingerie—the only type of merchandise it carries.  Victoria’s Secret is an example of a(n) __________.

a.   limited-line stores

b.   single-line store

c.   intertype outlet

d.   general merchandise store

e.   scrambled merchandise store

Limited- and single-line stores are often referred to as __________.

a.   specialty outlets

b.   general merchandise stores

c.   scrambled merchandise stores

d.   intertype outlets

e.   hypermarkets

Mike’s Camera is a retailer that carries a full line of professional and amateur camera equipment, develops all types of film and digital photos, and sells darkroom equipment.  Mike’s Camera is an example of a(n) __________.

a.   hypermarket

b.   general merchandise store

c.   scrambled merchandise store

d.   intertype outlet

e.   specialty outlet

A type of retail outlet that focuses on one type of product at very competitive or discount prices and often dominates the market is referred to as a __________.

a.   general merchandise store

b.   specialty outlet

c.   hypermarket

d.   category killer

e.   regional dominator

Specialty stores that dominate the market are referred to in the retail trade as _________.

a.   hypermarkets

b.   category killers

c.   specialty outlets

d.   regional dominators

e.   general merchandise stores

Staples is a specialty discount retailer that focuses on one type of product—office supplies.  Staples is referred to as a

a.   hypermarket

b.   national dominator

c.   category killer

d.   regional dominator

e.   general merchandise store

Stores that carry a broad product line with limited depth are referred to as __________.

a.   limited-line stores

b.   general merchandise stores

c.   scrambled merchandise stores

d.   hypermarkets

e.   intertype outlets

Stores like Dillard’s, Macy’s, and Neiman Marcus carry a wide range of different types of products but not unusual sizes.  They are known as __________.

a.   limited-line stores

b.   scrambled merchandise stores

c.   hypermarkets

d.   intertype outlets

e.   general merchandise stores

Offering several unrelated product lines in a single store is referred to as __________.

a.   intertype competition

b.   multiple distribution

c.   scrambled merchandising

d.   a department store

e.   a specialty outlet

Scrambled merchandising refers to

a.   displaying merchandise and highlighting complementary products rather than keeping all similar items together in rows on a shelf.

b.   offering several unrelated product lines in a single store.

c.   changing where items are displayed in a store to create interest and expose customers to alternative product choices.

d.   retailers that purchase odd-lots of overstocks or discontinued items for resale.

e.   strip malls that house a seemingly mismatched assortment of retail outlets to create more customer traffic.

A drug store that sells pharmaceuticals, beauty aids, camera equipment, nonperishable grocery items, and automobile motor oil is an example of a retailer using

a.   multiple distribution channels.

b.   full-service.

c.   scrambled merchandising.

d.   intertype competition.

e.   dual channel marketing.

“Hypermarket” refers to

a.   category killers that specialize in electronics.

b.   a form of intertype competition general merchandise store.

c.   shopping malls anchored by four or more department stores such as Sears or Nordstrom’s.

d.   a form of limited-service outlets focusing on general merchandise like that offered in department stores.

e.   a form of scrambled merchandising, which consists of large stores (more than 200,000 square feet) that offer everything in a single outlet, eliminating the need for consumers to shop at more than one location.

In Europe, stores called __________ are based on the concept of one-stop shopping for consumers.  Such retail stores, which use scrambled merchandising, often encompass over 200,000 square feet and offer quality, variety, and low price for food and groceries and general merchandise.

a.       megamarkets

b.   hypermarkets

c.   one-stop markets

d.   euromarkets

e.   supercenters

Located predominately in Europe, these large stores (90,000 - 300,000 square feet) offer 20,000-80,000 different food, grocery, and general merchandise products, have annual revenue of over $100,000,000 per store, and are referred to as

a.   discount wholesalers.

b.   discount retailers.

c.   supermarkets.

d.   hypermarkets.

e.   retail cooperatives.

Which type of store gives shoppers the greatest variety of merchandise?

a.   a hypermarket

b.   a specialty clothing store

c.   a limited-line gift store

d.   a clothing outlet

e.   a discount store

Meijer is a chain of hypermarkets headquartered in Michigan, which means it

a.   engages in no intertype competition.

b.   is a disintermediator.

c.   uses scrambled merchandising.

d.   can also be referred to as a category killer.

e.   uses dual distribution.

A supercenter refers to

a.   an auto service center that sells and leases cars as well as repairs them.

b.   a type of specialty outlet.

c.   a store that combines a typical merchandise store with a full-size grocery store.

d.   a mall with more than 100 stores and several important anchor stores.

e.   a store one step larger than a hypermarket.

Competition for the same or similar type of product or service between very dissimilar types of retail outlets that results from a scrambled merchandising policy is referred to as __________.

a.   mixed merchandising

b.   intertype competition

c.   scrambled merchandising

d.   multi-service merchandising

e.   dual distribution

Intertype competition refers to competition between

a.   very similar types of retail outlets that results from a single-product/single-line merchandising policy.

b.   retailers when the items they sell are virtually indistinguishable from one another.

c.   national and generic brands that are sold side-by-side in a retail outlet.

d.   retailers located in separate quadrants of the retail positioning matrix.

e.   very dissimilar types of retail outlets that results from a scrambled merchandising policy.

Fresh-cut flowers that only used to be available from florists can now be purchased at neighborhood supermarkets.  This is an example of __________.

a.   dysfunctional competition

b.   mixed-line merchandising

c.   multi-product marketing

d.   intertype competition

e.   dual distribution

Which type of utility is created by online shopping?

a.   time

b.   price

c.   product

d.   process

e.   promotion

The term “bricks and clicks” refers to __________ and __________ respectively.

a.   catalogs; websites

b.   search engines; websites

c.   traditional retailers; online retailers

d.   buildings; mice

e.   computer savvy buyers; computer novice buyers

Walmart recently introduced “Pick Up Today” service that

a.   offers shoppers a virtual reality shopping experience from their home computers.

b.   allows customers to order online and receive free same-day pickup at a local store.

c.   allows customers to place lay-away orders online and keep them at the store until they are fully paid.

d.   allows customers to surf the Internet to compare prices; for those that find a better deal, they can e-mail Walmart and the retailer will honor competitors’ lowest price.

e.   allows customers hold online auctions for Walmart overstock or seasonal items that are being discontinued to make room for new inventory.

Online retail purchases by consumers can be the result of several very different approaches, which include: (1) using a shopping “bot” to search for a product at the best price; (2) participating in an online auction; (3) going directly to online malls; and (4)

a.   paying dues to become a member of an online discount service.

b.   becoming a secret shopper.

c.   participating in a buying cooperative.

d.   becoming a PURL.

e.   becoming a member of a research group that evaluates new products.

Online retail purchases by consumers can be the result of several very different approaches, which include: (1) paying dues to become a member of an online discount service; (2) participating in an online auction; (3) going directly to online malls; and (4)

a.   becoming a secret shopper.

b.   participating in a buying cooperative.

c.   becoming a PURL.

d.   using a shopping “bot” to search for a product at the best price.

e.   becoming a member of a research group that evaluates new products.

Online retail purchases by consumers can be the result of several very different approaches, which include: (1) paying dues to become a member of an online discount service; (2) using a shopping “bot” to search for a product at the best price; (3) going directly to online malls; and (4)

a.   becoming a member of a research group that evaluates new products.

b.   becoming a secret shopper.

c.   participating in an online auction.

d.   participating in a buying cooperative.

e.   becoming a PURL.

Some retailers now allow consumers to respond to their text messages announcing a sale for a specified time period.  Consumers must then visit the site to purchase the sale items.  Which of the following retailing websites offer these limited time “flash sales?”

a.   TextBuyIt

b.   Best Buy

c.   PeaPod

d.   eBay

e.   Gilt

One of the biggest problems online retailers face is that nearly __________ of online shoppers make it to “checkout” and then leave the website to compare shipping costs and prices on other sites.

a.   16%

b.   26%

c.   36%

d.   56%

e.   66%

One of the biggest problems online retailers face is that nearly two-thirds of online shoppers make it to “checkout” and then leave the website to compare shipping costs and prices on other sites.  Of the shoppers who leave, __________ percent do not return.

a.   30%

b.   40%

c.   50%

d.   60%

e.   70%

Experts suggest that online retailers should think of their websites as __________ if they are to attract and retain customers.

a.   cash cows

b.   dynamic billboards

c.   virtual reality stores

d.   traditional retail stores

e.   online entertainment

In China, 130,000 Internet cafes serve __________ customers.

a.   163,000

b.   16,300,000

c.   163,000,000

d.   1,630,000,000

e.   16,300,000,000

Using the telephone to interact with and sell directly to consumers is referred to as __________.

a.   digital marketing

b.   telemarketing

c.   solicitation marketing

d.   direct contact marketing

e.   direct selling

According to the Direct Marketing Association, annual telemarketing sales exceed __________.

a.   $10 billion

b.   $28 billion

c.   $137 billion

d.   $332 billion

e.   $500 billion

In the telemarketing industry, issues such as __________, ethical guidelines, and industry standards have become a topic of discussion among consumers, Congress, the Federal Trade Commission (FTC), and businesses.

a.   competitive antics

b.   coercion tactics

c.   freedom of speech

d.   language issues

e.   consumer privacy

In the telemarketing industry, issues such as consumer privacy, __________, and industry standards have become a topic of discussion among consumers, Congress, the Federal Trade Commission (FTC), and businesses.

a.   product quality

b.   price differences

c.   on-time delivery

d.   competitive antics

e.   ethical guidelines

Which of the following statements regarding telemarketing is most accurate?

a.   Shopping bots are computers that place automated or “robo” (i.e. robotic) telemarketing calls.

b.   Direct-mail is typically viewed as more efficient means of targeting consumers than telemarketing.

c.   Telemarketing has risen in popularity as a result of the National Please-Do-Call registry legislation.

d.   Consumer privacy, industry standards, and ethical guidelines have become important issues.

e.   Some firms are considering shifting their direct-mail and door-to-door budgets to telemarketing techniques.

Consumers who do not want to receive telephone calls related to company sales efforts can

a.   purchase telephones that block unwanted calls.

b.   place their telephone numbers on the National Do-Not-Call Registry.

c.   request phone numbers that begin with the area code 555 that automatically block telemarketing solicitors.

d.   request phone numbers that begin with the area code 888 that automatically block telemarketing solicitors.

e.   use an unlisted telephone number.

The sales of products and services to consumers through personal interactions and demonstrations in their homes or offices is referred to as __________.

a.   direct selling

b.   person-to-person sales

c.   face-to-face selling

d.   direct response selling

e.   customized selling

Sales of goods and services to consumers through personal interactions and demonstrations in their home or office is referred to as direct selling, or __________.

a.   person-to-person sales

b.   interactive selling

c.   door-to-door retailing

d.   individual promotion

e.   customized selling

Direct selling, sometimes called _________, involves direct sales of goods and services to consumers through personal interactions and demonstrations in their home or office.

a.   interface marketing

b.   flex-marketing

c.   interactive selling

d.   responsive selling

e.   door-to-door retailing

Companies such as Avon, Fuller Brush, Mary Kay, and World Book are examples of firms that use

a.   interface marketing.

b.   flex-marketing.

c.   direct selling.

d.   interactive selling.

e.   responsive selling.

In response to the changes in the United States, many direct sellers are implementing a __________ strategy by expanding into other countries with their current product lines.

a.   market development

b.   market penetration

c.   accelerated development

d.   product development

e.   diversification

Direct selling is likely to continue to have strong growth in markets

a.   in which people prefer not to have a social shopping experience.

b.   where convenience is not especially important.

c.   in which consumers are knowledgeable shoppers.

d.   where there is a lack of effective distribution channels.

e.   that have an excellent infrastructure.

Growth in the direct-selling industry is the result of two trends: (1) direct selling retailers are expanding into markets outside the United States and (2)

a.   increased gas prices and traffic congestion are causing people to want the store to deliver the products to them.

b.   the pendulum is beginning to swing back to more mothers (and fathers) staying home during the day with children, making direct selling more convenient.

c.   the purchase or lease of real estate to build an actual “brick” retail store is becoming prohibitive.

d.   graduating business students are finding it more difficult to find a traditional sales position and like the idea of being their own bosses.

e.   there is a growing number of companies that are using direct selling to reach consumers who prefer one-on-one customer service and a social shopping experience rather than online shopping or big discount stores.

Growth in the direct-selling industry is the result of two trends: (1) there is a growing number of companies that are using direct selling to reach consumers who prefer one-on-one customer service and a social shopping experience rather than online shipping or big discount stores and (2)

a.   many direct selling retailers are expanding into markets outside of the United States.

b.   increased gas prices and traffic congestion are causing people to want stores to deliver products to them.

c.   the pendulum is beginning to swing back to more mothers (and fathers) staying home during the day with children, making direct selling more convenient.

d.   the purchase or lease of real estate to build an actual “brick” retail store is becoming prohibitive.

e.   graduating business students are finding it more difficult to find a traditional sales position and like the idea of being their own bosses.

Which of the following statements regarding direct selling is most accurate?

a.   Unlike other forms of nonstore retailing, direct selling takes place in the business market.

b.   Direct selling is found exclusively in the United States.

c.   Direct selling succeeds because it provides customers with convenience and personalized service.

d.   Direct sales have been declining rapidly in the United States since the 1980s.

e.   By definition, direct selling can only take place in a home.         

Direct selling is likely to continue to grow in markets

a.   for people who prefer not to have a social shopping experience.

b.   where there are effective distribution channels.

c.   in which consumers are knowledgeable shoppers.

d.   where door-to-door convenience is important.

e.   that have an excellent infrastructure.

The Direct Selling Association reports that the number of companies using direct selling has __________ in the past five years.

a.   increased by 10 percent

b.   increased by 30 percent

c.   increased by 50 percent

d.   decreased by 20 percent

e.   decreased by 40 percent

A customer was unable to go to the store on her own to buy gifts for the holidays.  She contacted a Tupperware representative who came to her home, showed her not only catalogs but actual products, answered all her questions, and had all the customer’s gifts sorted and delivered.  This is an example of __________.

a.   interface marketing

b.   flex-marketing

c.   direct selling

d.   interactive selling

e.   responsive selling

The analytical tool that positions retail outlets in terms of the breadth of their product line and value added, such as location, product reliability, or prestige, is referred to as the __________.

a.   BCG growth share matrix

b.   MAC breadth-depth of line framework

c.   market-product grid

d.   retail positioning matrix

e.   wheel of retailing framework

The retailing positioning matrix refers to an analytical tool that

a.   positions retail outlets in terms of the breadth of product line and value added.

b.   identifies the best location for building or leasing a retail store.

c.   identifies the specific customer base served by all stores within a given radius.

d.   identifies the most likely target market for a retail outlet based upon its size.

e.   identifies the elements of the retailing mix.

The vertical dimension of the retail positioning matrix is

a.   depth of product line.

b.   relative market share.

c.   value added.

d.   breadth of product line.

e.   stage in the retail life cycle.

The horizontal dimension of the retail positioning matrix is

a.   depth of product line.

b.   value added.

c.   relative market share.

d.   breadth of product line.

e.   stage in the retail life cycle.

The value added dimension of the retail positioning matrix includes elements such as product reliability, prestige, and __________.

a.   level of service

b.   market share

c.   location

d.   price

e.   number of employees

The value added dimension of the retail positioning matrix includes elements such as location, prestige, and __________.

a.   level of service

b.   market share

c.   price

d.   number of employees

e.   product reliability

The value added dimension of the retail positioning matrix includes elements such as location, product reliability, and __________.

a.   prestige

b.   price

c.   market share

d.   number of employees

e.   level of service



Which of the following stores would best fit in “A” shown in Figure 16-8 above?

a.   Payless ShoeSource

b.   Macy’s department store

c.   7-Eleven convenience store

d.   Walmart

e.   Lamborghini automobile dealer

Which of the following stores would best fit in “B” shown in Figure 16-8 above?

a.   Kmart

b.   Payless ShoeSource

c.   Bloomingdales department store

d.   7-Eleven

e.   Lamborghini automobile dealer

Which of the following stores would best fit in “C” shown in Figure 16-8 above?

a.   Kmart

b.   Payless ShoeSource

c.   Dillard’s department store

d.   7-Eleven

e.   Lamborghini automobile dealer

Which of the following stores would best fit in “D” shown in Figure 16-8 above?

a.   Kmart

b.   Payless ShoeSource

c.   Dillard’s department store

d.   a Toyota automobile dealer

e.   Tiffany & Co.

The activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise are referred to as the __________.

a.   wheel of retailing

b.   distribution mix

c.   retail life cycle

d.   retailing mix

e.   retail store positioning

The retailing mix refers to the activities related to the management of and the merchandise in the store, which includes

a.   retail pricing, store location, retail communication, and merchandise.

b.   product, price, promotion, and place.

c.   the utilities of time, form, possession, and price.

d.   the colors, sizes, shapes, and point-of-purchase display locations of the store’s products.

e.   selection of store location, selection of merchandise, hiring and training of employees, and promotion of both the store and products.

The retailing mix refers to

a.   the activities related to managing the store and the merchandise in the store, which includes product, price, promotion, and place.

b.   the activities related to managing the store and the merchandise in the store, which includes the four utilities time, form, possession, and place.

c.   the activities related to managing the store and the merchandise in the store, which includes the colors, sizes, shapes, and perceived value of the store’s products.

d.   the activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise.

e.   the activities related to managing the store and the merchandise in the store, which includes selection of store location, selection of merchandise, hiring and training of employees, and promotion of both the store and products.

When developing retailing strategies, marketers use what is called the retailing mix, which includes

a.   products, services, promotions, and retail communication.

b.   promotions, publicity, and press releases.

c.   retail pricing, store location, retail communication, and merchandise.

d.   physical environment, people, process, and productivity.

e.   direct mail, online stores, traditional stores, and outlet stores.

The retailing mix includes all of the following EXCEPT:

a.   merchandise.

b.   target market.

c.   retail pricing.

d.   store location.

e.   retail communication.

When developing marketing strategies, marketing managers use the elements of the marketing mix, which includes product, price, place, and promotion.  In a similar fashion, when developing retailing strategies, marketers use what is called the retailing mix, which includes

a.   retail pricing, store location, retail communication, and merchandise.

b.   products and services, promotions, and communications.

c.   physical distribution, promotions, and communications.

d.   physical distribution, products, and personal selling.

e.   products, price, and personal selling.

When setting prices for merchandise, retailers must decide on the markup, markdown, and the __________ for markdowns.

a.   relevance

b.   necessity

c.   percentage

d.   timing

e.   consequence

A markup refers to

a.   the difference between the final selling price and how the customer values the product.

b.   selling brand name merchandise at lower than regular prices.

c.   the amount added to the cost the retailer paid for a product to reach the final selling price.

d.   the difference between the retail cost and initial selling price.

e.   the reduction in retail price, usually expressed as a percentage equal to the amount reduced, divided by the original price, and multiplied by 100.

The amount added to the cost the retailer paid for a product to reach the final selling price is referred to as a(n) __________.

a.   markup

b.   markdown

c.   original markup

d.   maintained markup

e.   cost-plus markup

The difference between the retailer’s cost and the initial selling price is referred to as __________.

a.   markup

b.   maintained markup

c.   markdown

d.   differential markup

e.   original markup

A retailer bought a collectible Precious Moments figurine for $26.  She sets the initial selling price at $60.  The final selling price was $52.  What was the original markup?

a.   $8

b.   $16

c.   $26

d.   $34

e.   $86

A maintained markup refers to

a.   the difference between the final selling price and the retailer’s cost.

b.   the amount subtracted from the cost the retailer paid for a product to reach the initial selling price.

c.   the amount the manufacturer adds to achieve the desired suggested retail price.

d.   the net margin.

e.   the highest price listed on the product sales ticket.

The difference between the final selling price and the retailer’s cost is referred to as a(n) __________.

a.   original markup

b.   maintained markup

c.   markdown

d.   differential markup

e.   discounted price

Another term for gross margin is __________.

a.   original markup

b.   markdown

c.   return on sales

d.   discounted price

e.   maintained markup

Another term for maintained markup is __________.

a.   original markup

b.   maintained markup

c.   markdown

d.   gross margin

e.   net margin

A retailer bought a collectible Precious Moments figurine for $26.  She sets the initial selling price at $60.  The final selling price was $52.  What was the original markup?

a.   $8

b.   $16

c.   $26

d.   $34

e.   $86

Many retailers take a markdown as soon as sales fall to free valuable selling space and cash.  This concept of retail pricing based on _________.

a.   timing

b.   demand

c.   availability

d.   bargain hunting

e.   customer value

Discounting a product when the product does not sell at the original price is referred to as __________.

a.   inverse markup

b.   markdown

c.   price sensitivity

d.   concession pricing

e.   rebate

A markdown refers to

a.   the difference between the final selling price and the retailer’s cost.

b.   the amount the manufacturer adds to achieve the desired suggested retail price.

c.   discounting a product when the product does not sell at the original price.

d.   the lowest price to which a retailer can reduce a sales ticket and still make a profit.

e.   the net margin.

When retailers set prices on new models or styles of products, the price of existing models often is _________.

a.   marked up

b.   off-priced

c.   value-added

d.   marked down

e.   maintained

Often new models or styles force the price of existing models to be __________.

a.   marked up

b.   off-priced

c.   value-subtracted

d.   maintained

e.   marked down

To increase the demand for complementary products, the price of a product often is

a.   marked up

b.   marked down

c.   off-priced

d.   value-subtracted

e.   maintained

Markdowns can be used to

a.   increase competition with other retailers in the immediate vicinity.

b.   placate dissatisfied customers.

c.   enhance customer perceptions of product quality.

d.   increase demand for complementary products.

e.   create a sense of urgency amongst repeat buyers.

To increase demand for complementary products, the price of a product often is

a.   marked up.

b.   off-priced.

c.   marked down.

d.   value-added.

e.   maintained.

Timing is an important element of markdowns.  Those retailers who take a markdown as soon as sales fall off are most likely doing so to __________.

a.   placate dissatisfied customers

b.   enhance customer perceptions of product quality

c.   create an image as a “cutting edge” retailer

d.   free up valuable selling space and cash

e.   react to the entry of a new competitor

The largest inventory of wedding dresses in the Southeast can be found at Low’s Bridal and Formal in Brinkley, Arkansas.  From December 26 to January 16, a prospective bride shopping at Low’s can find gowns once priced at $6,000 for $2,999 and $800 gowns for $400.  The reduced prices of these gowns are reflected in which retail pricing strategy?

a.   markdowns

b.   original markups

c.   maintained markups

d.   inventory shrinkages

e.   net markups

Emphasizing consistently low prices and eliminating most markdowns is referred to as __________.

a.   low-margin pricing

b.   everyday low pricing

c.   everyday fair pricing

d.   value-based pricing

e.   maintained pricing

Walmart and Home Depot emphasize consistently low prices and eliminate most markdowns with a retail pricing strategy called

a.   low-margin.

b.   value based.

c.   everyday low pricing.

d.   everyday fair pricing.

e.   markdown pricing.

Many retailers advocate a(n) __________ strategy, a pricing strategy that may not offer the lowest prices but does try to create value for customers through its service and the total buying experience.

a.   customer loyalty

b.   emphasize-value

c.   everyday low pricing

d.   low-margin

e.   everyday fair pricing

Consumers often use the prices of __________ items, such as a can of Coke, to form an overall impression of the store’s prices.

a.   benchmark

b.   stoplight

c.   point-of-purchase

d.   value-based

e.   loss-leader

Which of the following statements regarding retail pricing is most accurate?

a.   Consumers will often base their perceptions of a store’s prices on a benchmark of the highest priced item in the store.

b.   Consumers are influenced more by a store’s ambiance than its product prices.

c.   Stores that offer rebates and take an excessive amount of time to process them may create negative consumer perceptions.

d.   New technology has almost made shrinkage a thing of the past.

e.   The only difference between everyday low pricing and everyday fair pricing is whether the store sells food or non-food items.

Shrinkage refers to

a.   the declining number of small privately owned retail stores due to economic hard times.

b.   breakage, theft, and fraud by customers and employees.

c.   the percentage of inventory that is damaged or unsalable because of product failure or problems in shipping.

d.   loss of profits in clothing items that are returned because of inferior materials.

e.   polycarbonate packaging that encases products with a tamper-resistant plastic seal.

The National Retail Federation estimates that about __________ percent of retail shrinkage is due to employee theft.

a.   14

b.   24

c.   34

d.   44

e.   54

Off-price retailing refers to the

a.   differences between the final selling price and the retailer’s cost.

b.   sale of brand name merchandise at lower than regular prices.

c.   sales of merchandise at maintained markups.

d.   amount added by the manufacturer to achieve the desired suggested retail price.

e.   reduction in retail price usually expressed as the gross margin.

The sale of brand name merchandise at lower than regular prices is referred to as __________.

a.   discount pricing

b.   everyday low pricing

c.   markdown pricing

d.   off-price retailing

e.   loss-leader pricing

The major difference between an off-price retailer and a discount store is that off-price retailers purchase merchandise from manufacturers __________ and discount stores buy from wholesalers __________.

a.   who are trying to offload returned or slightly irregular inventory; selling new but inexpensive merchandise

b.   at below wholesale prices; and charge a high initial price with the full intent of taking markdowns later

c.   at below wholesale prices; at full price but take a less of a markup

d.   at various price points; at the lowest price points possible

e.   who are part of a retailing cooperative; who are part of a wholesaling cooperative

Merchants such as the Burlington Coat Factory sell brand-name merchandise at lower than regular prices.  As such, they are using a(n)

a.   off-price retailing strategy.

b.   markdown pricing strategy.

c.   everyday fair pricing strategy.

d.   everyday low pricing strategy.

e.   maintained markdown pricing strategy.



Consider the T.J. Maxx HomeGoods photo above.  This retailer uses a(n) __________ pricing practice.

a.   markdown

b.   maintained markup

c.   gross margin

d.   manufactured suggested retail

e.   off-price retail

Savings to the consumer at off-price retailers are reported as high as __________ off the prices of a traditional department store.

a.   50%

b.   60%

c.   70%

d.   80%

e.   90%

Three common forms of off-price retailers are

a.   warehouse clubs, factory outlet stores, and hypermarkets.

b.   warehouse clubs, factory outlets, and extreme value retailer.

c.   factory outlets, single-price retailers, online auction services.

d.   factory outlets, supercenters, hypermarkets.

e.   extreme value retailers, buying clubs, online auction services.

An off-price retailer that requires customers to purchase an annual membership card for the privilege of shopping at the store is referred to as a __________.

a.   outlet store

b.   single-price retailer

c.   hypermarket

d.   warehouse club

e.   supercenter

A(n) __________carries 4,000 to 8,000 items and usually stocks just one brand of appliance or food product.

a.   warehouse club

b.   single-price retailer

c.   extreme value retailer

d.   hypermarket

e.   supercenter

Sam’s Club and Costco are examples of __________.

a.   supercenters

b.   hypermarkets

c.   warehouse clubs

d.   single-price retailers

e.   outlet stores

A variation of off-price retailing includes __________.

a.   discount wholesalers

b.   outlet stores

c.   discount retailers

d.   supermarkets

e.   hypermarkets

Nordstrom Rack and the Gap Factory Store allow retailers to sell excess merchandise and still maintain an image of offering merchandise at full price in their primary stores.  These retailers are referred to as __________.

a.   extreme value retailers

b.   warehouse clubs

c.   discount houses

d.   outlet stores

e.   community shopping centers



Consider the Saks Fifth Avenue Off 5th photo above.  This retailer is an example of a(n) __________.

a.   hypermarket

b.   off-price store

c.   outlet store

d.   category killer

e.   warehouse club

Another name for an extreme value retailer is a(n) __________.

a.   specialty outlet

b.   single-price retailer

c.   hypermarket

d.   outlet store

e.   warehouse club

Dollar General and the Dollar Tree are examples of which type of retailer?

a.   warehouse club

b.   hypermarket

c.   outlet store

d.   everyday value retailer

e.   extreme value retailer

Off-price stores that attract customers who like a “corner store” environment rather than a large supercenter experience are referred to as __________.

a.   extreme value retailers

b.   hypermarkets

c.   warehouse clubs

d.   outlet stores

e.   everyday value retailers

Most stores today are in one of five settings that include all of the following EXCEPT:

a.   the regional shopping center.

b.   the strip mall.

c.   the uptown shopping center.

d.   the community shopping center.

e.   the power center.

Most stores today are near several others in one of five settings: the central business district, the community shopping center, the strip mall, the power center, or the __________.

a.   exurb value center

b.   urban megacenter

c.   suburban downtown

d.   regional shopping center

e.   rural micromall

Most stores today are near several others in one of five settings: the central business district, the community shopping center, the regional shopping center, the power center, or the __________.

a.   suburban downtown

b.   strip mall

c.   exurb value center

d.   rural micromall

e.   urban megacenter

Most stores today are near several others in one of five settings: the central business district, the regional shopping center, the community shopping center, the strip mall,or the __________.

a.   rural micromall

b.   urban megacenter

c.   power center

d.   exurb value center

e.   suburban downtown

The central business district refers to

a.   a suburban mall that contains up to 100 stores and draws customer from 5 to 10 miles away.

b.   the oldest retailing setting, located in a community’s downtown area.

c.   a retail location that typically has one primary store and about 20 to 40 smaller outlets, and serves a population base of about 100,000.

d.   a cluster of stores that serves people who are within a five- to ten-minute drive and serves a population base of under 30,000.

e.   a collection of large stores over 100,000 square feet that offers a mix of about 40 percent food products and 60 percent general merchandise items.

The oldest retail setting, usually located in the community's downtown area, is referred to as

a.   the central business district.

b.   main street.

c.   community anchor.

d.   uptown center.

e.   historical commerce district.

Consumers often view central business district shopping as less convenient because of the lack of parking, higher crime rates, and __________.

a.   out-dated stores

b.   a lack of ambiance

c.   fewer quality restaurants

d.   few public restrooms

e.   exposure to the weather

Regional shopping centers refer to a

a.   retail cluster in a downtown area.

b.   retail location that typically has one primary store and about 20 to 40 smaller outlets, and serves a population base of about 100,000.

c.   cluster of stores that serve people who are within a five- to ten-minute drive and serves a population base of under 30,000.

d.   group of 50 to 150 stores that typically attract customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores.

e.   retail cluster of stores in uptown areas.

A group of 50 to 150 stores that typically attract customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores is referred to as a __________.

a.   power center

b.   regional shopping center

c.   strip mall

d.   central business district

e.   urban megacenter

Many supermarkets have in-store restaurants where a customer can buy prepared meals to take home or eat there.  Supermarkets and restaurants that provide these kinds of meals are engaged in __________ competition.

a.   intertype

b.   institutional

c.   intermodal

d.   functional

e.   selective

Retailing that occurs outside a retail outlet, such as through direct marketing, direct selling, and automatic vending is referred to as __________.

a.   limited-line retailing

b.   nonstore retailing

c.   scrambled merchandising

d.   a hypermarket

e.   intertype competition

Which of the following is an example of nonstore retailing?

a.   hypermarkets

b.   supercenters

c.   shopping centers

d.   vending machines

e.   general merchandise stores

Vending machines are an example of __________.

a.   hypermarkets

b.   direct mail

c.   scrambled merchandising

d.   intertype competition

e.   nonstore retailing

Prices in vending machines tend to be higher because

a.   machines are placed in high demand/traffic areas.

b.   maintenance, operating, and leasing costs are high.

c.   only small unit volume items are sold.

d.   customary pricing requires certain coin and currency amounts regardless of the normal retailer markup.

e.   few people buy from vending machines.

About 30 percent of the products sold from vending machines are __________.

a.   candy and snacks

b.   personal items

c.   movies and videos

d.   cold beverages

e.   food

Which form of retailing is Best Buy now using in airports to distribute its mobile phone and computer accessories, digital cameras, flash drives, and other consumer electronics?

a.   vending machines

b.   salespeople with mobile carts

c.   mall-scale traditional retail stores

d.   salespeople wearing Best Buy uniforms with products in backpacks

e.   free-standing kiosks manned with knowledgeable sales personnel

The 6 million vending machines currently operating in the United States generate more than __________ in annual sales.

a.   $359 million

b.   $985 million

c.   $3.8 billion

d.   $19 billion

e.   $46 billion

Vending machines are popular with consumers; recent consumer satisfaction research indicates that __________ percent of consumers believe purchasing from a vending machine is equal to or superior to a store purchase.

a.   15

b.   27

c.   49

d.   63

e.   82

Vending machines are no longer limited by the need for cash.  In Japan, Korea, and the Philippines, consumers use mobile phones that transmit payments to vending machines via an infrared beam or a radio wave.  This is an example of how vending machines can provide which type of utility?

a.   time

b.   place

c.   possession

d.   product

e.   form

Direct-mail and catalog retailing are examples of __________.

a.   nonstore retailing

b.   intertype retailing

c.   online retailing

d.   print-media retailing

e.   dual retailing

An IKEA mail order catalog is an example of __________ retailing.

a.   intrusive

b.   intertype

c.   scrambled

d.   nonstore

e.   hypermarket

The average U.S. household now receives __________ direct-mail items or catalogs each week.

a.   18

b.   24

c.   32

d.   39

e.   47

The Direct Marketing Association estimates that direct-mail and catalog retailing creates __________ in sales.

a.   $100,000

b.   $14,000,000

c.   $190,000,000

d.   $22,000,000,000

e.   $669,000,000,000

Higher paper costs, increased postage rates, the growing interest in do-not-mail legislation, and concern for “green” mailings have resulted in

a.   a switch to online catalogs and direct customer e-mail advertisements.

b.   the use of thinner, lightweight paper products.

c.   a focus on  proven customers rather than on prospective customers.

d.   the banning of “junk” mail by a growing number of environmentally-concerned communities.

e.   a resurgence in non-automated telemarketing.

Usage of specialty catalogs, like those from firms like IKEA, Crate and Barrel, and L.L.Bean have been affected by all of the following factors except:

a.   influence of larger retailers as their marketing activities have increased the number and variety of products consumers purchase through direct mail and catalogs.

b.   higher paper costs, increase in postage rates, and the possibility of the U.S. Postal Service reducing delivery to five days a week.

c.   growing interest in do-not-mail legislation.

d.   concern for “green” mailings and catalogs.

e.   growing influence of television home shopping where consumers order over the telephone.

In the direct-mail and catalog retailing, the acronym PURLS stands for  __________.

a.   personalized URLs

b.   pre-sorted URLs

c.   pre-loaded URLs

d.   proactive URLs

e.   portable URLs

Multichannel Merchant magazine evaluates hundreds of entries to select the winners of the Multichannel Merchant Awards in 18 categories for companies that have excelled in

a.   designing the most effective direct-mail piece.

b.   designing the most creative catalog cover.

c.   implementing efficient direct-mail campaigns.

d.   integrating their direct-mail and catalog activities with other marketing activities.

e.   providing creative price promotions to channel members.

Jim Smith is an avid fly fisherman who lives in Deer Key, FL.  For his hobby, Jim needs large rubber rafts, hip waders, special fishing rods, reels, line, and an assortment of fishing tackle and lures.  There are no sporting goods stores in Deer Key, so Jim orders his fishing supplies from a L. L. Bean catalog.  His supplies are generally delivered to his home within 72 hours.  Jim is using a __________ to satisfy his fishing supply needs.

a.   home delivery retailer

b.   quick response retailer

c.   direct-mail marketer

d.   flexible response marketer

e.   regional marketer

The marketing managers at Omaha Steaks used airlines’ databases to mail a special offer to frequent flyers.  Eight weeks after shipping the steaks to the frequent flyers who responded to the offer, the company’s salespeople followed up by telephoning customers to ask for new orders.  This is an example of which types of nonstore retailing?

a.   direct selling and telemarketing

b.   direct-mail and telemarketing

c.   telemarketing and online retailing

d.   online retailing and direct-mail

e.   direct-mail and direct selling

Currently, the three largest television home shopping programs in the United States are

a.   QVC, HSN, and ShopNBC.

b.   Shop at Home, QVC, and HSN.

c.   Direct shopper, Shop at Home, and ShopNBC.

d.   Valuevision, Shop at Home, and QVC.

e.   Shop America, Direct shopper, and J.S. Global.

QVC is a television home shopping network.  It generates sales of more than $7 billion from its 60 million customers by

a.   restricting purchases only through its Mall of America studio.

b.   broadcasting live twelve hours a day 365 days a year.

c.   offering more than 1,150 products each week.

d.   offering overstocked items from retailers at a fraction of the original cost.

e.   running live podcasts and live streaming over the Internet

Which of the following statements regarding QVC is most accurate?

a.   QVC broadcasts 12 hours a day 365 days a year.

b.   QVC reaches approximately 195 million households in the U.S., U.K., Germany, Italy, and Japan.

c.   QVC never offers the same product two days in a row.

d.   QVC sells all its items by dropping the price to $1.00 regardless of the product value, if it is not sold in one day.

e.   QVC entices customers to “stay tuned” by offering free products to random callers.

In the past, television home shopping programs have attracted mostly

a.   20 to 30 year old men.

b.   30 to 40 year old women.

c.   40 to 50 year old men.

d.   40 to 60 year old women.

e.   50 to 60 year old men.

Several television shopping programs are developing online platforms, which may attract as many as 50 percent of all new customers, and interactive technology, that allows viewers to place orders

a.   without having to pay sales tax.

b.   without having to pay for shipping or handling.

c.   through online company websites.

d.   with a “double your money back guarantee” if the items are not delivered within 24 hours.

e.   with their remote control rather than the telephone.

 

Large shopping areas often contain two or three __________ stores, which are well-known national or regional stores such as Sears, Saks Fifth Avenue, and Bloomingdale’s.

a.   power centers

b.   mega centers

c.   anchor

d.   value

e.   outlet

The West Edmonton Mall in Alberta, Canada is a conglomerate of more than 800 stores, the world’s largest indoor amusement park, more than 100 restaurants, a movie complex, and two hotels.  This retail complex is an example of a(n) __________.

a.   regional shopping center

b.   urban microcenter

c.   megaplex

d.   hypermarket

e.   supercenter

Which of the following stores are most likely to be an anchor store at a regional shopping center?

a.   Old Navy, Abercrombie & Fitch, and Kay-Bee toy store

b.   Hickory Farms, a locally-owned jewelry store, and Radio Shack

c.   an antique store, Dollar General, and a bakery

d.   Sears, Macy’s, and JCPenney

e.   Hallmark shop, a sporting goods consignment store, and a Barnes & Noble bookstore

A retail location that typically has one primary store (usually a department store branch) with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to 20-minute drive is referred to as a(n) __________.

a.   power center

b.   regional shopping center

c.   community shopping center

d.   central business district

e.   urban megacenter

A community shopping center refers to a

a.   suburban mall containing up to 100 stores that draws customer from a 5-to 10-mile radius.

b.   cluster of stores in a downtown area.

c.   cluster of stores that serves people who are within a five- to ten-minute drive.

d.   collection of category killers usually located outside a major amusement park or attraction.

e.   retail location that typically has one primary store (usually a department store branch) with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to 20-minute drive.

A cluster of neighborhood stores that serves people within a 5-to 10-mile radius is referred to as a(n)

a.   suburban shopping mall.

b.   strip mall.

c.   mini-mart.

d.   hypermarket.

e.   central business district.

A strip mall refers to a

a.   suburban mall containing up to 100 stores that draws customer from a 5-to 10-mile radius.

b.   a cluster of stores in a downtown area.

c.   retail location that typically has one primary store (usually a department store branch) with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to 20-minute drive.

d.   cluster of neighborhood stores designed to serve people within a five- to ten- minute drive.

e.   collection of category killers usually located outside a major amusement park or attraction.

Not every suburban store is located in a shopping mall.  Many neighborhoods have clusters of stores, referred to as a strip mall, to serve people who are within a 5- to 10-minute drive.  Unlike the larger shopping centers, the composition of these stores is usually __________.

a.   unplanned

b.   national anchor stores

c.   privately-owned specialty stores

d.   fast food restaurants

e.   amusement and theme parks

A huge shopping strip with multiple anchor (or national) stores is referred to as a __________.

a.   central business district

b.   regional shopping center

c.   community shopping center

d.   strip mall

e.   power center

Large strip malls that often have two to five anchor stores, a supermarket, and are designed to bring shoppers on a weekly basis are referred to as

a.   suburban malls.

b.   warehouse malls.

c.   power centers.

d.   retail malls.

e.   cluster malls.

In the late 1950s, Pierre Martineau described __________ as “the way in which the store is defined in the shopper’s mind.”

a.   size

b.   location

c.   product mix

d.   image

e.   anchor store

Impressions of the corporation that operates the store, the category or type of store, the product categories in the store, the brands in each category, merchandise and service quality, and the marketing activities of the store all contribute to the store’s

a.   prices.

b.   image.

c.   emotional feelings.

d.   name.

e.   psychological attributes.

Texas-based Whole Foods supermarkets target people who want to eat healthy.  The stores use placards throughout, which tell shoppers about the farmers who grew and harvested the various products sold.  This use of signage to provide consumer information is a part of which element of the retailing mix?

a.   communication

b.   pricing

c.   merchandise

d.   goods and services factor

e.   location

Loblaws, a Canadian supermarket, features fruits and vegetables piled high on tables that have umbrellas.  The idea behind this arrangement was to give Loblaws “a market feel.”  In terms of the retailing mix, this tactic is related to __________.

a.   pricing

b.   goods and services factor

c.   communication

d.   merchandise

e.   location

Price ranges, store layouts, and breadth and depth of merchandise lines are considered to be __________ of a store’s image.

a.   functional qualities

b.   sociological qualities

c.   psychological attributes

d.   lifestyle attributes

e.   atmospheric elements

Intangibles such as a sense of belonging, excitement, style, or warmth are considered to be __________ of a store’s image.

a.   functional qualities

b.   sociological qualities

c.   psychological attributes

d.   antecedent attributes

e.   personality elements

Store layout, colors, lighting, and music are all considered part of a store’s retail

a.   image.

b.   psychological attributes.

c.   antecedent attributes.

d.   personality type.

e.   atmosphere.

The music played in the grocery store has a slow tempo to get shoppers to stay longer and hopefully put more items in their cart.  Music is part of the grocery store’s __________.

a.   atmosphere

b.   image

c.   psychological attributes

d.   personality type

e.   sociological profile

The use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store is referred to as

a.   functional qualities

b.   level of service

c.   shopper marketing

d.   lifestyle attributes

e.   psychographic elements

A management approach in which a manger is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category, is referred to as __________.

a.   capacity management

b.   product management

c.   retail inventory management

d.   category management

e.   automated inventory control

Managing the breadth and depth of merchandise available from many manufacturers requires retail buyers who are

a.   efficient and effective managers.

b.   familiar with the needs of the target market.

c.   experienced shoppers.

d.   familiar with retail inventory management.

e.   autocratic and intelligent.

The marketing metrics related to a retailer’s customers include all of the following EXCEPT:

a.   the number of customers per day or per hour.

b.   the average length of a store visit.

c.   the turnover of inventory.

d.   the average transaction size per customer.

e.   the number of transactions per customer.

The marketing metrics related to a retailer’s products or merchandise include all of the following EXCEPT:

a.   the cost of carrying inventory.

b.   the inventory turnover.

c.   the average number of items per transaction.

d.   the number of returns.

e.   the average length of a store visit.

The marketing metrics related to a retailer’s finances include all of the following EXCEPT:

a.   the markdown percentage.

b.   the average length of a store visit.

c.   the return on sales.

d.   the gross margin.

e.   the sales per employee.

A common financial indicator of how effectively retail space is used to generate revenue can be calculated by determining __________.

a.   net sales

b.   shareholders’ equity

c.   market share

d.   sales per square foot

e.   return on investment

An indicator of how effectively retail space is used to generate revenue is called __________.

a.   sales per square foot

b.   return in investment

c.   percentage of markup

d.   gross profit

e.   same-store sales growth

An indicator of how effectively retail space is used to generate revenue is called

a.   net sales.

b.   shareholders’ equity.

c.   market share.

d.   sales per square foot.

e.   return on investment.

Sales per square foot is calculated by

a.   dividing total sales by selling area in square feet.

b.   dividing profit margin by selling area in square feet.

c.   dividing gross profit by selling area in square feet.

d.   dividing return on investment by selling area in square feet.

e.   dividing net sales by selling area in square feet.

Boston Pizza wants to determine how effective their retail format is compared to other pizza establishments in the local area.  The calculation for this indicator is arrived at by determining the __________ for its store and comparing it against the same indicator for all of the other local pizza outlets.

a.   gross margin

b.   same-store sales growth

c.   sales per square foot

d.   net profit

e.   net present value

A financial indicator used to compare the increase in sales of stores that have been open for the same period of time is __________.

a.   return in investment

b.   percentage of markup

c.   gross profit

d.   sales per square foot

e.   same-store sales growth

An indicator used to compare the increase in sales of stores that have been open for the same period of time is called

a.   market share of each store.

b.   same-store sales growth.

c.   sales per square foot of each store.

d.   gross sales per store.

e.   net profit per store.

The calculation for same-store sales growth is

a.   total sales ÷ selling area in square feet.

b.   (store sales in year 3 ÷ store sales in year 1).

c.   [store sales in year 1 ÷ (store sales in year 2 – store sales in year 1)].

d.   [(store sales in year 2 – store sales in year 1) ÷ store sales in year 1].

e.   store 1 square feet ÷ store 2 square feet.



Which of the following stores shown in the Sales per Square Foot Marketing Dashboard above has the highest sales per square foot?

a.   Target

b.   Neiman Marcus

c.   Best Buy

d.   Tiffany

e.   Apple

Best Buy has approximately what amount of sales per square foot according to the Sales per Square Foot Marketing Dashboard above?

a.   $500

b.   $800

c.   $1,000

d.   $2,000

e.   $4,000

Apple has approximately what amount of sales per square foot according to the Sales per Square Foot Marketing Dashboard above?

a.   $500

b.   $800

c.   $1,000

d.   $3,100

e.   $5,600

Neiman Marcus has approximately what amount of sales per square foot according to the Sales per Square Foot Marketing Dashboard above?

a.   $500

b.   $800

c.   $1,000

d.   $2,000

e.   $4,000

According to the Same-Store Sales Growth Marketing Dashboard above, which retailer has the greatest same-store sales growth?

a.   Target

b.   Neiman Marcus

c.   Apple

d.   Best Buy

e.   Tiffany

The description of how new retail outlets enter the market is referred to as the __________.

a.   retail life cycle

b.   product life cycle

c.   wheel of retailing

d.   retail life matrix

e.   retail continuum

The wheel of retailing refers to

a.   the life cycle of most consumer products sold at retailers.

b.   the diffusion of types of retailers for a new product.

c.   the progression of retail locations an outlet goes through

d.   the description of how new retail outlets enter the market.

e.   the description of retail management philosophies.

Many fast food retailers, including McDonald’s and Burger King, have followed a predictable pattern of how new forms of retail outlets enter the marketplace.  McDonald’s has evolved from a relatively simple restaurant with low margins, low prices, limited product offerings, and low institutional status to a worldwide chain with higher margins, high status, and a diverse menu of products.  This evolution of McDonald’s restaurants is consistent with the

a.   slow to fast food restaurant evolutionary cycle.

b.   revolution of retailing.

c.   retail life cycle.

d.   fast food retail sequence.

e.   wheel of retailing.



According to Figure 16-9 above, “A” represents the stage in the wheel of retailing when a retail outlet starts with

a.   low prices, high margins, and high status.

b.   mixed prices, mixed margins, and mixed status.

c.   low prices, low margins, and low status.

d.     moderate prices, high margins, and high status.

e.   high prices, low margins, and mixed status.

Figure 16-9 above shows the wheel of retailing, which indicates that retail outlets typically go through changes with the passage of time.  What stage in the wheel of retailing does “B” represent?

a.   low prices, low margins, low status.

b.   higher prices, higher margins, and higher status.

c.   low prices, high margins, and high status.

d.   mixed prices, mixed margins, and mixed status.

e.   moderate prices, high margins, and high status.

According to Figure 16-9 above, where would you find the highest prices, margins, and status?

a.   “A”

b.   “B”

c.   “C”

d.   “D”

e.   “A” and “D”

Outlets such as the Checkers Drive-In Restaurant, typically enter the wheel of retailing as

a.   low status, low-margin stores.

b.   high status, high-margin stores.

c.   moderate status, low-margin stores.

d.   high price, high-margin stores.

e.   mixed price, mixed status stores.

Retail outlets, like products, experience the process of growth and decline, which is referred to as the

a.   retail life cycle.

b.   wheel of retailing.

c.   product life cycle.

d.   retail continuum.

e.   retail life matrix.

General merchandise wholesalers

a.   carry a broad assortment of merchandise and perform all channel functions.

b.   own the merchandise they sell but do not physically handle, stock, or deliver it.

c.   have a small warehouse from which they stock their trucks for distribution to retailers.

d.   work for several producers, carry noncompetitive, complementary merchandise in an exclusive territory, and use over-the-road transportation for all product deliveries.

e.   deal exclusively with small low-cost consumer products that are distributed to a select number of large retail chains.

Wholesalers that carry a broad assortment of merchandise and perform all channel functions are referred to as a __________.

a.   limited-line wholesaler

b.   drop shipper

c.   rack jobber

d.   specialty merchandise wholesaler

e.   general merchandise wholesaler

The wholesalers most prevalent in the hardware, drug, and clothing industries would be _________.

a.   specialty wholesaler

b.   full-line wholesaler

c.   cash and carry wholesaler

d.   limited-line wholesaler

e.   universal wholesaler

A wholesaler that carries a narrow range of products and performs all channel functions is referred to as a __________.

a.   general merchandise wholesaler

b.   truck jobber

c.   specialty merchandise wholesaler

d.   rack jobber

e.   drop shipper

Specialty merchandise wholesalers

a.   carry a broad assortment of merchandise and perform all channel functions.

b.   own the merchandise they sell but do not physically handle, stock, or deliver it.

c.   offer a relatively narrow range of products but has an extensive assortment within the product lines carried.

d.   work for several producers, carry noncompetitive, complementary merchandise in an exclusive territory, and use over-the-road transportation for all product deliveries.

e.   deal exclusively with small low-cost consumer goods that are distributed to a select number of large retail chains.

Which type of wholesaler offers a relatively narrow range of products but has an extensive assortment within the product lines carried?

a.   general merchandise wholesaler

b.   limited-service wholesaler

c.   cash and carry wholesaler

d.   specialty merchandise wholesaler

e.   drop shipper

The wholesalers that perform all channel functions and are found in the health foods, automotive parts, and seafood industries would be _________.

a.   specialty wholesalers

b.   full-line wholesalers

c.   limited-wholesalers

d.   universal wholesalers

e.   cash and carry wholesalers

Which of the following is a type of full-service merchant wholesaler?

a.   cash and carry wholesaler

b.   rack jobbers

c.   truck jobbers

d.   specialty merchandise wholesaler

e.   drop shippers

The four major types of limited-service merchant wholesalers are cash and carry wholesalers, drop shippers, truck jobbers, and __________.

a.   display vendors

b.   rack jobbers

c.   point of purchase wholesalers

d.   transport vendors

e.   container transport vendors

The four major types of limited-service merchant wholesalers are drop shippers, rack jobbers, truck jobbers, and __________.

a.   machine vendors

b.   credit line wholesalers

c.   transport vendors

d.   cash and carry wholesalers

e.   container transport vendors

The four major types of limited-service merchant wholesalers are rack jobbers, cash and carry wholesalers, truck jobbers, and _________.

a.   machine vendors

b.   credit line wholesalers

c.   drop shippers

d.   transport vendors

e.   container transport vendors

The four major types of limited-service merchant wholesalers are rack jobbers, cash and carry wholesalers, truck jobbers, and __________.

a.   machine vendors

b.   credit line wholesalers

c.   transport vendors

d.   container transport vendors

e.   desk jobbers

The four major types of limited-service merchant wholesalers are drop shippers, rack jobbers, cash and carry wholesalers, and __________.

a.   machine vendors

b.   credit line wholesalers

c.   transport vendors

d.   truck jobbers

e.   container transport vendors

Rack jobbers refer to wholesalers who

a.   furnish the shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers.

b.   own the merchandise they sell and have retailers store it in their warehouses.

c.   own the merchandise they sell but do not physically handle, stock, or deliver it.

d.   have a small warehouse from which they stock their trucks for distribution to retailers.

e.   work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.

A limited-service wholesaler that furnishes shelves that display merchandise in stores, performs all channel functions, and sells on consignment to retailers is referred to as a __________.

a.   stack loader

b.   rack jobber

c.   drop shipper

d.   desk jobber

e.   truck jobber

A limited-service wholesaler who performs all channel functions, and sells on consignment to retailers, which means they retain the title to the products displayed and bill retailers only for the merchandise sold is a _________.

a.   truck jobber

b.   transport vendor

c.   rack jobber

d.   cash and carry wholesaler

e.   drop shipper

Which type of wholesaler traditionally sells hosiery, toys, and health and beauty items?

a.   cash and carry wholesalers

b.   truck jobbers

c.   general merchandise wholesalers

d.   rack jobbers

e.   drop shippers

Cash and carry wholesalers refer to wholesalers who

a.   furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers.

b.   take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for merchandise.

c.   own the merchandise they sell but do not physically handle, stock, or deliver it.

d.   have a small warehouse from which they stock their trucks for distribution to retailers.

e.   work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.

Wholesalers who take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for merchandise are referred to as __________.

a.   rack jobbers

b.   truck jobbers

c.   transport vendors

d.   cash and carry wholesalers

e.   drop shippers

Cash and carry wholesalers

a.   handle bulky items like lumber, bricks, and telephone poles.

b.   handle perishable items like flowers, baked goods, and deli meats.

c.   handle office supplies, electrical supplies, hardware products, and groceries.

d.   are a kind of full-service wholesaler.

e.   lease vending machines to merchants and refill them as needed on a cash only basis.

Drop shippers

a.   own the merchandise they sell but do not physically handle, stock, or deliver it.

b.   perform all channel functions, and sell on consignment to retailers.

c.   take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for merchandise.

d.   have a small warehouse from which they stock their trucks for distribution to retailers.

e.   work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.

Wholesalers who own the merchandise they sell but do not physically handle, stock, or deliver it are referred to as __________.

a.   cash and carry wholesalers

b.   rack jobbers

c.   truck jobbers

d.   manufacturer’s representatives

e.   drop shippers

Wholesalers who simply solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer are referred to as __________.

a.   cash and carry wholesalers

b.   rack jobbers

c.   drop shippers

d.   truck jobbers

e.   manufacturer’s representatives

Coal, lumber, and chemicals, which are sold in extremely large quantities are traditionally sold by which type of wholesaler?

a.   cash and carry wholesalers

b.   rack jobbers

c.   truck jobbers

d.   general merchandise wholesalers

e.   drop shippers

Another name for a drop shipper is a __________.

a.   desk jobber

b.   drop runner

c.   transport vendor

d.   container transport vendor

e.   stock jobber

The term truck jobbers refers to wholesalers who

a.   furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers.

b.   store all the merchandise they sell in their trucks.

c.   own the merchandise they sell but do not physically handle, stock, or deliver it.

d.   have a small warehouse from which they stock their trucks for distribution to retailers.

e.   work for several producers, carry noncompetitive, complementary merchandise in an exclusive territory, and use over-the-road transportation for all product deliveries.

Wholesalers who have a small warehouse from which they stock their trucks for distribution to retailers are referred to as __________.

a.   cash and carry wholesalers

b.   truck jobbers

c.   rack jobbers

d.   drop shippers

e.   manufacturer’s representatives

Wholesalers who handle a limited assortment of fast-moving or perishable items that are sold for cash directly from trucks in their original packages are referred to as __________.

a.   rack jobbers

b.   drop shippers

c.   truck jobbers

d.   cash and carry wholesalers

e.   manufacturer’s representatives

Bakery items, dairy products, and meat that are sold for cash directly from trucks in their original packages are traditionally sold by which type of wholesaler?

a.   rack jobbers

b.   drop shippers

c.   cash and carry wholesalers

d.   truck jobbers

e.   general merchandise wholesalers

A __________ would be most likely to use truck jobbers to distribute its products.

a.   a clothing manufacturer

b.   manufacturer of electric generators

c.   a leather goods importer

d.   pharmaceutical company

e.   meat processing plant

Which of the following firms has made the wisest wholesaler choice for its product?

a.   Sam’s Coal Country uses a cash and carry wholesaler for its coal.

b.   Amy’s Amazing Appetizers uses a rack jobber for its frozen apricot aperitifs.

c.   Raisha’s Retros uses a rack jobber for its replica racecar radios.

d.   Shayna’s Superior Supplies uses a desk jobber for its staplers.

e.   Nova’s Novelties uses a truck jobber for its never-needs-a-battery night lights.

Which of the following firms has made the wisest wholesaler choice for its product?

a.   Sam’s Coal Country uses a drop shipper for its coal.

b.   Amy’s Amazing Appetizers uses a rack jobber for its frozen apricot aperitifs.

c.   Hannah’s Hardware uses a rack jobber for its hinges.

d.   Shayna’s Superior Supplies uses a desk jobber for its staplers.

e.   Nova’s Novelties uses a truck jobber for its never-needs-a-battery night lights.

Which of the following firms has made the wisest wholesaler choice for its product?

a.   Hannah’s Hardware uses a rack jobber for its hammers.

b.   Fiona’s Floral uses a truck jobber for its cut roses.

c.   Sam’s Coal Country uses a truck jobber for its subway cars.

d.   Shayna’s Superior Supplies uses a desk jobber for its staplers.

e.   Josh’s Jackhammers uses a rack jobber for its hard hats.

Which of the following statements describes the key difference between merchant wholesalers and agents and brokers?

a.   Merchant wholesalers don’t perform all channel functions and agents and brokers do.

b.   Agents and brokers only deal with consumer channels.

c.   Agents and brokers make their profits based on the sales of merchandise they own, while merchant wholesalers make profits based on fees paid for their services.

d.   Merchant wholesalers take title to merchandise and agents and brokers do not.

e.   Agents and brokers take title to merchandise and merchant wholesalers do not.

Another name for a manufacturer’s agent is _________.

a.   manufacturer’s desk jobber

b.   manufacturer’s transport vendor

c.   manufacturer’s representative

d.   manufacturer’s transport vendor

e.   manufacturer’s jobber

Manufacturer’s agents refer to agents who

a.   represent a single producer and carry all products in the producer’s lines.

b.   work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.

c.   take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for merchandise.

d.   own the merchandise they sell but do not physically handle, stock, or deliver it.

e.   furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers.

Manufacturer’s agents refer to agents who

a.   furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers.

b.   take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for merchandise.

c.   own the merchandise they sell but do not physically handle, stock, or deliver it.

d.   have a small warehouse from which they stock their trucks for distribution to retailers.

e.   work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.

Intermediaries that work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory are referred to as__________.

a.   selling agents

b.   line brokers

c.   distribution brokers

d.   manufacturer’s agents

e.   brokers

A regional bakery makes organic breads and muffins.  It feels the choice of distribution channel is critical to the product’s success, especially since it wants to have the product distributed nationally.  However, it will take some time before sales take off, and the bakery wants to make sure the marketing program is consistent everywhere.  It should use

a.   a manufacturer’s agent to sell to truck jobbers who in turn will deal with retailers.

b.   its own salesforce to sell directly to retailers.

c.   the services of a selling agent to sell to general merchandise wholesalers who will sell to retailers.

d.   a dual distribution system composed of both direct and indirect wholesalers.

e.   a rack jobber who will sell to a merchant wholesaler and who will in turn sell to retailers.

Selling agents refer to agents who

a.   furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers.

b.   represent a single producer and are responsible for the entire marketing function of that producer.

c.   work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.

d.   take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for the merchandise.

e.   sell primarily large bulky products.

Intermediaries that represent a single producer and are responsible for the entire marketing function of that producer are referred to as __________.

a.   brokers

b.   line brokers

c.   selling agents

d.   distribution brokers

e.   manufacturer’s agents

Intermediaries that represent a single producer and are responsible for designing promotional plans, setting prices, determining distribution policies, and making recommendations on product strategy are referred to as _________.

a.   brokers

b.   line brokers

c.   distribution brokers

d.   selling agents

e.   manufacturer’s agents

Carla’s Cards uses a __________ to sell and market the entire line of greeting cards.  They design promotional plans, set prices, determine distribution policies, and make recommendations to Carla on product strategy.

a.   manufacturer’s agent

b.   broker

c.   manufacturer’s branch office

d.   manufacturer’s sales office

e.   selling agent

Brokers are independent firms or individuals who

a.   represent a single producer and are responsible for the entire marketing function of that producer.

b.   work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.

c.   take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for the merchandise.

d.   own the merchandise they sell but do not physically handle, stock, or deliver it.

e.   bring buyers and sellers together to make sales.

Independent firms or individuals whose principal function is to bring buyers and sellers together to make sales are referred to as __________.

a.   manufacturer’s agents

b.   brokers

c.   selling agents

d.   manufacturer’s branches

e.   manufacturer’s sales offices

Originally, filters for Mr. Coffee electric-drip coffee makers were sold through appliance and mass merchandise stores.  If the company decided to sell the filters in grocery stores where customers purchased their coffee, what type of intermediaries would the company most likely hire?

a.   a full-line wholesaler

b.   drop shippers

c.   food brokers

d.   truck jobbers

e.   manufacturer’s representatives

A unique broker that acts in many ways like a manufacturer’s agent is a food broker, representing buyers and sellers in the grocery industry.  Food brokers differ from conventional brokers because they act on behalf of producers on a permanent basis and

a.   receive a commission for their services.

b.   are paid a flat fee for each time the shelves are stocked.

c.   are paid by both the buyer and seller separately depending upon the size of the order.

d.   are paid a commission by the buyer and a bonus by the seller.

e.   are paid a flat fee by both the buyer and seller, but receive a bonus based upon the percentage of increased sales by quarter.

Freightfinder.com is an Internet company that is called a “go-between.”  If a trucker needs to find a load for a particular trade lane, he or she can visit this site, list the price and available truck space, and find a company that needs a shipment moved.  Since the purpose of this website is to put buyer and sellers together so that a sale can be made, this website can be categorized as a__________.

a.   broker

b.   selling agent

c.   manufacturer’s representative

d.   manufacturer’s agent

e.   administrator

A business in Kansas City, Missouri, looking to rent office space should use a __________ to help it locate the most suitable space at the best possible rate.

a.   selling agent

b.   broker

c.   manufacturer’s representative

d.   manufacturer’s agent

e.   administrator

Wholly-owned extensions of the producer that perform wholesaling activities are referred to as

a.   general merchandise wholesalers.

b.   cash and carry wholesalers.

c.   agents and brokers.

d.   manufacturer’s branches and sales offices.

e.   merchant wholesalers.

Unlike merchant wholesalers, agents, and brokers, manufacturers’ branches and sales offices are __________ that perform wholesaling activities.

a.   independent distribution managers

b.   independent intermediary channels

c.   wholly-owned extensions of the producer

d.   wholly-owned extensions of the distributor

e.   wholly-owned extensions of the retailer

A manufacturer’s branch office

a.   carries a producer’s inventory and performs the functions of a full-service wholesaler.

b.   performs a sales function as an option to agents and brokers.

c.   works for several producers and carries noncompetitive, complementary merchandise in an exclusive territory.

d.   takes title to merchandise but sells only to buyers who call on them, pays cash for merchandise, and furnishes their own transportation for the merchandise.

e.   brings buyers and sellers together to make sales.

A manufacturer’s sales office

a.   works for several producers and carries noncompetitive, complementary merchandise in an exclusive territory.

b.   takes title to merchandise but sells only to buyers who call on them, pays cash for merchandise, and furnishes their own transportation for the merchandise.

c.   carries a producer’s inventory, performs the functions of a full-service wholesaler and is an alternative to a merchant wholesaler.

d.   does not carry inventory, typically performs a sales function, and is an alternative to agents and brokers.

e.   brings buyers and sellers together to make sales.

A channel intermediary that does not carry inventory, typically performs only a sales function, and is an alternative to agents and brokers is referred to as a __________.

a.   brokering agent

b.   cash and carry wholesalers

c.   manufacturer’s sales office

d.   manufacturer’s branch office

e.   merchant wholesalers

The Mall of America is an example of which type of setting for a store location?

a.   central business district

b.   regional shopping center

c.   community shopping center

d.   strip mall

e.   power center

Mall of America has verbalized its __________ strategy with the slogan, “A place for fun!”

a.   retail mix

b.   wheel of retailing

c.   retail life cycle

d.   distribution

e.   retail positioning

A significant difference between the Mall of America and other regional shopping centers is that

a.   all MOA employees are required to be multilingual because of the store’s international draw.

b.   MOA has twice as much space devoted to specialty stores than to anchor stores.

c.   retail store owners can live in attached condominiums, at reduced rates, so they don’t have to worry about getting to work in bad weather.

d.   employees can take classes on the premises offered through a local community college.

e.   employees get a 50% discount at all the food establishments.

 

Experts have observed that our marketplace is in the midst of an “age of engagement.”  What does “engagement” mean at Twitter?

a.   one-way communication

b.   multimedia communication

c.   free advertising

d.   Marketers are “loud.”

e.   The recipient takes some action.

Which of the following is a suggestion for ensuring the success of a Twitter-based integrated campaign?

a.   The message should not be serious.

b.   There should be several tweets each day.

c.   There should not be any links in the messages.

d.   The campaign should take place in real time.

e.   There should be an “engagement” letter.

Which of the following is the newest way to engage consumers?

a.   television advertising

b.   QR codes

c.   e-mail

d.   magazine advertising

e.   public service announcements

The __________ element of the marketing mix consists of communication tools, including advertising, personal selling, sales promotion, public relations, and direct marketing.

a.   product

b.   price

c.   place

d.   promotional

e.   advertising

The __________ includes advertising, personal selling, sales promotion, public relations, and direct marketing.

a.   promotional mix

b.   promotion channel

c.   communication message

d.   marketing matrix

e.   media mix

The promotional mix includes __________, personal selling, sales promotion, public relations, and direct marketing.

a.   publicity

b.   infomercials

c.   advertising

d.   risk-free trials

e.   word-of-mouth

The promotional mix includes advertising, __________, sales promotion, public relations, and direct marketing.

a.   publicity

b.   personal selling

c.   merchandising

d.   branding

e.   people

The promotional mix includes advertising, personal selling, __________, public relations, and direct marketing.

a.   publicity

b.   infomercials

c.   merchandising

d.   word-of-mouth

e.   sales promotion

The promotional mix includes advertising, personal selling, sales promotion, __________, and direct marketing.

a.   public relations

b.   infomercials

c.   merchandising

d.   word-of-mouth

e.   publicity

The promotional mix includes advertising, personal selling, sales promotion, public relations, and __________.

a.   public relations

b.   direct selling

c.   merchandising

d.   word-of-mouth

e.   direct marketing

Promotion represents the fourth element in the marketing mix.  The promotional element consists of communication tools, including sales promotion, public relations, personal selling, direct marketing, and __________.

a.   people

b.   advertising

c.   social media

d.   branding

e.   merchandising

Promotion represents the fourth element in the marketing mix.  The promotional element consists of communication tools, including advertising, public relations, sales promotion, direct marketing, and __________.

a.   people

b.   merchandising

c.   social media

d.   personal selling

e.   branding

Promotion represents the fourth element in the marketing mix.  The promotional element consists of communication tools, including advertising, personal selling, sales promotion, public relations, and __________.

a.   people

b.   merchandising

c.   direct marketing

d.   social media

e.   branding

The promotional mix refers to

a.   the three underlying appeals used that make promotions effective: (1) sex appeal, (2) humor appeal, and (3) fear appeal.

b.   the combination of both paid and non-paid marketing tools used to promote product interest.

c.   the set of promotional tools designed to motivate prospective buyers to purchase products and services: (1) awareness, (2) interest, (3) evaluation, (4) trial, and (5) adoption.

d.   the composition of the objectives of the promotion: (1) to inform, (2) to persuade, (3) to remind, and (4) to phase out.

e.   the combination of one or more communication tools used to: (1) inform prospective buyers about the benefits of the product, (2) persuade them to try it, and (3) remind them later about the benefits they enjoyed by using the product.

The combination of one or more communication tools used to: (1) inform prospective buyers about the benefits of the product, (2) persuade them to try it, and (3) remind them later about the benefits they enjoyed by using the product is referred to as the __________.

a.   promotion channel

b.   channel of communication

c.   marketing matrix

d.   promotional mix

e.   media mix

The __________ can be used to inform prospective buyers about the benefits of the product.

a.   promotional mix

b.   promotion channel

c.   communication channel

d.   marketing mix

e.   media mix

The promotional mix can be used to: (1) inform prospective buyers about the benefits of the product, (2) __________, and (3) remind them later about the benefits they enjoyed by using the product.

a.   explain how to use the product

b.   persuade them to try it

c.   inform customers of complementary offerings

d.   inform customers of pricing changes

e.   lure customers away from competitors’ products

The promotional mix can be used to: (1) inform prospective buyers about the benefits of the product, (2) persuade them to try it, and (3) __________.

a.   explain how to use the product

b.   inform customers of complementary offerings

c.   remind them later about the benefits they enjoyed by using the product

d.   inform customers of pricing changes

e.   lure customers away from competitors’ products

In a marketing context, the acronym IMC refers to __________.

a.   interactive media convergence

b.   internal marketing communications

c.   integrated marketing collaboration

d.   integrated marketing communications

e.   international marketing communications

The concept of designing marketing communications programs that coordinate all promotional activities—advertising, personal selling, sales promotion, public relations, and direct marketing—to provide a consistent message across all audiences is referred to as __________.

a.   the media mix

b.   the marketing matrix

c.   the promotional blend

d.   marketing by objectives (MBO)

e.   integrated marketing communications (IMC)

Integrated marketing communications is the concept of designing marketing communications programs that coordinate all promotional activities—advertising, personal selling, sales promotion, public relations, and direct marketing—to provide __________.

a.   retailers with cooperative media buys

b.   a consistent message across all audiences

c.   the firm with a feedback loop

d.   a marketing matrix

e.   a media mix useful to all types of companies

Integrated marketing communications (IMC) programs coordinate a variety of promotion alternatives to provide

a.   a promotional channel.

b.   a communications message.

c.   a consistent message across audiences.

d.   a media mix useful to all types of companies.

e.   a marketing matrix.

By taking consumer expectations into consideration, integrated marketing communications (IMC) is a key element in a company’s __________ strategy.

a.   generic business

b.   retail life cycle

c.   market segmentation

d.   sustainable development

e.   customer experience management

To promote its theme parks to groups, Disney uses advertising, direct marketing, Internet promotion, and sales promotions with other companies such as McDonald’s.  In other words, Disney uses IMC, which stands for

a.   integrated marketing cooperation.

b.   interactive media convergence.

c.   an infrastructure of market customization.

d.   integrated marketing communications.

e.   integrated media convergence.

Disney uses an integrated marketing communications program (IMC) to promote group travel to its theme parks because

a.   its strategy includes using all types of promotional activities that deliver a consistent message.

b.   it does not want to reach any member of its target audience more than once to conserve resources.

c.   IMC is less expensive than other forms of promotion such as public service announcements.

d.   if it didn’t, Disney would have to use indirect personal selling.

e.   it is more concerned about frequency of attendance than geographic reach.

Allegra is an antihistamine.  To create brand awareness, the company is offering people who request information about the product a seat cushion to use at their favorite sporting event.  Its television ad shows a woman half-heartedly watching a sporting event.  The voiceover asks if she is bored or congested.  In the next scene, the person is having a great time and is decongested after taking Allegra.  This use of the same promotional theme throughout a company’s marketing campaign is an example of how marketers use __________.

a.   the retailing mix

b.   integrated marketing communications (IMC)

c.   the branding mix

d.   coordinated channels of communication

e.   marketing by objectives (MBO)

The process of conveying a message to others that requires six elements—a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding—is referred to as __________.

a.   exchange

b.   dialogue

c.   communication

d.   advertising

e.   feedback

Communication is the process of conveying a message to others and it requires six elements.  These elements include: __________, a message, a channel of communication, a receiver, and the processes of encoding and decoding.

a.   a concept

b.   a brand

c.   a slogan

d.   a source

e.   an offer

Communication is the process of conveying a message to others and it requires six elements.  These elements include: a source, __________, a channel of communication, a receiver, and the processes of encoding and decoding.

a.   a message

b.   a concept

c.   a brand

d.   a slogan

e.   an offer

Communication is the process of conveying a message to others and it requires six elements.  These elements include: a source, a message, __________, a receiver, and the processes of encoding and decoding.

a.   a concept

b.   an offer

c.   a brand

d.   a slogan

e.   a channel of communication

Communication is the process of conveying a message to others and it requires six elements.  These elements include: a source, a message, a channel of communication, __________, and the processes of encoding and decoding.

a.   a concept

b.   a receiver

c.   an offer

d.   a brand

e.   a slogan

Communication is the process of conveying a message to others and it requires six elements.  These elements include: a source, a message, a channel of communication, a receiver, and __________.

a.   a concept

b.   an offer

c.   a slogan

d.   a brand

e.   the processes of encoding and decoding



Figure 17-1 above depicts the communication process, which consists of 10 key elements (“A” through “J”).  The position labeled “A” is referred to as __________.

a.   the message

b.   the receiver

c.   the source

d.   the field of experience

e.   feedback

Figure 17-1 above depicts the communication process, which consists of 10 key elements (“A” through “J”).  The position labeled “B” is referred to as __________.

a.   the source

b.   the message

c.   the receiver

d.   encoding

e.   feedback

Figure 17-1 above depicts the communication process, which consists of ten key elements (“A” through “J”).  The position labeled “C” is referred to as __________.

a.   the source

b.   the message

c.   the receiver

d.   the field of experience

e.   feedback

Figure 17-1 above depicts the communication process, which consists of ten key elements (“A” through “J”).  The position labeled “D” is referred to as __________.

a.   encoding

b.   the message

c.   decoding

d.   the field of experience

e.   feedback

Figure 17-1 above depicts the communication process, which consists of ten key elements (“A” through “J”).  The position labeled “E” is referred to as __________.

a.   the source

b.   the message

c.   the field of experience

d.   feedback

e.   the receiver

Figure 17-1 above depicts the communication process, which consists of ten key elements (“A” through “J”).  The position labeled “F” is referred to as __________.

a.   the response

b.   the message

c.   the feedback loop

d.   the field of experience

e.   feedback

Figure 17-1 above depicts the communication process, which consists of ten key elements (“A” through “J”).  The position labeled “G” is referred to as __________.

a.   noise

b.   the message

c.   the feedback loop

d.   the field of experience

e.   feedback

Figure 17-1 above depicts the communication process, which consists of ten key elements (“A” through “J”).  The position labeled “H” is referred to as _________.

a.   noise

b.   the message

c.   the receiver

d.   the field of experience

e.   feedback

17-1 above depicts the communication process, which consists of ten key elements (“A” through “J”). The position labeled “I” is referred to as _________.

a.   the response

b.   the source

c.   the message

d.   the receiver

e.   the field of experience

Figure 17-1 above depicts the communication process, which consists of ten key elements (“A” through “J”). The position labeled “J” is referred to as _________.

a.   the source

b.   the message

c.   the receiver

d.   the feedback loop

e.   the field of experience

A source refers to

a.   any paid form of advertising.

b.   consumers who read, hear, or see the message during the communications process.

c.   a company or person who has information to convey during the communications process.

d.   people with similar understanding and knowledge who are willing to share that knowledge with others.

e.   a group of individuals who are willing to receive information from others.

A company or person who has information to convey during the communication process is referred to as a(n) __________.

a.   encryptor

b.   message carrier

c.   originator

d.   receiver

e.   source

Procter & Gamble created an advertisement for its High Endurance men’s antiperspirant.  In terms of the communication process, the __________ of the information in the product’s advertisement is Procter & Gamble, its manufacturer.

a.   receiver

b.   source

c.   message

d.   decoder

e.   communication channel

In a marketing context, a message refers to

a.   product information regarding, benefits, price, and usage found on a product’s package.

b.   the slogan or tagline of a specific product.

c.   proprietary information linking a specific product to a promotional campaign.

d.   the information sent by a source to a receiver during the communication process.

e.   a television or radio commercial from the buyer to the seller.

The information sent by a source to a receiver during the communication process is referred to as ___________.

a.   an advertisement

b.   publicity

c.   a message

d.   feedback

e.   a missive

Procter & Gamble Co. created an advertisement for its Old Spice Red Zone antiperspirant.  In terms of the communication process, the __________ in the ad informed prospective customers that the antiperspirant offered more protection than the Old Spice High Endurance brand.

a.   lesson

b.   message

c.   memo

d.   source

e.   feedback

A channel of communication refers to

a.   the selection of either paid or non-paid forms of information dissemination.

b.   a similar understanding and knowledge that a sender and receiver apply to a message.

c.   an open-ended dialogue between the marketing department and the firm responsible for developing the IMC program.

d.   a social network–based forum that allows customers to communicate their likes, dislikes, suggestions, and concerns to an organization 24 hours a day, 365 days a year.

e.   the means (salesperson, advertising media, or public relations tools) of conveying a message to a receiver during the communication process.

The means (salesperson, advertising media, or public relations tools) of conveying a message to a receiver is referred to as a(n) __________.

a.   vehicle

b.   field of experience

c.   channel of communication

d.   direct feedback loop

e.   information highway

A message is conveyed by means of a(n) __________ such as a salesperson, advertising media, or public relations tools.

a.   vehicle

b.   channel of communication

c.   field of experience

d.   direct feedback loop

e.   information highway

The retail life cycle refers to

a.   the distinct stages a product goes through before it becomes obsolete.

b.   the process of growth and decline that retail outlets, like products, experience.

c.   the cycle of a customer’s buying behavior from awareness of a product to its ultimate purchase.

d.   the relationship between the tangible aspects of a product and the types of services that need to accompany it.

e.   the traditional management changes that take place as a retail outlet grows.

The four stages of the retail life cycle are

a.   introduction, growth, maturity, and decline.

b.   awareness, inquiry, alternative evaluation, and purchase.

c.   early growth, accelerated development, maturity, and decline.

d.   innovation, standardization, adaptation, and obsolescence.

e.   innovation, adaptation, imitation, and obsolescence.

According to the retail life cycle, __________ is the stage of emergence of a retail outlet, with a sharp departure from existing competition.

a.   decline

b.   maturity

c.   introduction

d.   early growth

e.   accelerated development

According to the retail life cycle, in which stage would market share rise gradually, although profits may be low because of start-up costs?

a.   decline

b.   maturity

c.   introduction

d.   accelerated development

e.   early growth

Which type of outlet is most likely in its early growth stage of the retail life cycle?

a.   single-price stores

b.   online retailers

c.   supermarkets

d.   warehouse clubs

e.   business-district retailers

Both market share and profit achieve their greatest growth rates during which stage of the retail life cycle?

a.   decline

b.   maturity

c.   introduction

d.   early growth

e.   accelerated development

During which stage of the retail life cycle do companies establish multiple outlets?

a.   decline

b.   maturity

c.   accelerated development

d.   introduction

e.   early growth

The key goal for retailers in the accelerated development phase of the retail life cycle is to

a.   recover start-up costs.

b.   establish a dominant position in the fight for market share.

c.   delay entering the decline stage of the retail life cycle.

d.   find ways of discouraging their customers from moving to low-margin, mass-volume outlets.

e.   establish a retail concept that is a sharp departure from existing competition.

Accelerated development in the retail life cycle is similar to which stage in the product life cycle?

a.   introduction

b.   maturity

c.   decline

d.   growth

e.   harvest

Which type of outlet is most likely in its accelerated development stage of the retail life cycle?

a.   single-price stores

b.   online retailers

c.   supermarkets

d.   business-district retailers

e.   convenience stores

The battle for market share is usually fought directly before the __________ stage, and some competitors drop out of the market.

a.   decline

b.   growth

c.   maturity

d.   harvest

e.   introduction phase

Discounting generally takes place during which stage of the retail life cycle?

a.   early growth

b.   accelerated development

c.   decline

d.   maturity

e.   early growth and maturity

Which type of outlet is most likely in its maturity stage of the retail life cycle?

a.   single-price stores

b.   value-retail centers

c.   online retailers

d.   business-district retailers

e.   convenience stores

Which type of outlet is most likely in its decline stage of the retail life cycle?

a.   single-price stores

b.   value-retail centers

c.   online retailers

d.   business-district retailers

e.   convenience stores



According to Figure 16-10 above, market share reaches its highest level during which stage of the retail life cycle?

a.   none

b.   “A”

c.   “B”

d.   “C”

e.   “D”

According to Figure 16-10 above, “A” represents which stage of the retail life cycle?

a.   introduction

b.   early growth

c.   accelerated development

d.   maturity

e.   decline

According to Figure 16-10 above, “B” represents which stage of the retail life cycle?

a.   introduction

b.   early growth

c.   accelerated development

d.   maturity

e.   decline

According to Figure 16-10 above, “C” represents which stage of the retail life cycle?

a.   introduction

b.   early growth

c.   accelerated development

d.   maturity

e.   decline

According to Figure 16-10 above, “D” represents which stage of the retail life cycle?

a.   introduction

b.   early growth

c.   accelerated development

d.   maturity

e.   decline

Multichannel retailers are retailers that

a.   sell different products through entirely different channels.

b.   sell through different channels under different brand names.

c.   utilize strategic and tactical wholesalers.

d.   utilize and integrate a combination of traditional store formats and nonstore formats.

e.   combine two channels for their offerings: one for products and the other for services.

Retailers that utilize and integrate a combination of traditional store formats and nonstore formats are referred to as __________.

a.   multichannel retailers

b.   scrambled merchandisers

c.   mixed-brand retailers

d.   dual distribution retailers

e.   mixed-channel retailers

While it is possible for a multichannel retailer to somewhat cannibalize its catalog business with its online retailing, the positive tradeoff is

a.   there is greater product awareness.

b.   online retailing is a greater relationship-building medium.

c.   an online transaction costs about half as much to process as a catalog order.

d.   consumers make more impulse buys.

e.   online retailing can provide the consumer with a more tangible decision-making tool.

Retailers like Williams-Sonoma that sell products through retail stores, catalogs, and online are examples of __________.

a.   intertype competitors

b.   multichannel retailers

c.   vertically-integrated retailers

d.   scrambled merchandisers

e.   dual distributors

The complementary role of different communication and delivery channels is referred to as

a.   the cumulative effect.

b.   the primary effect.

c.   the cross-over effect.

d.   the complementary effect.

e.   the influence effect.

Retailers that integrate and leverage their stores, catalogs, and websites have seen

a.   a sizeable increase in yearly sales from individual customers.

b.   a small increase in yearly sales from aggregate target market segments.

c.   no difference in yearly sales from individual customers.

d.   a decrease in yearly sales from individual customers.

e.   a large decrease in yearly sales from individual customers.

Which of the following statements regarding managing the customer experience is most accurate?

a.   As more women enter the upper levels of industry, retailers are paying less attention to men and their shopping behavior.

b.   Men were typically viewed as infrequent “mission shoppers” but they are changing their behaviors.

c.   Men will shop for electronics but leave the majority of their clothing shopping to their wives.

d.   Making the retail environment a sparse one appeals to male shoppers who value efficiency.

e.   Men prefer to shop in a social environment so they avoid shopping alone at all costs.

A department store recently replaced its fabric-covered chairs with oversized leather couches.  This was most likely done to

a.   reduce the need to constantly reupholster.

b.   create a more natural environment.

c.   create a more masculine ambiance for male shoppers.

d.   make mothers shopping with small children less nervous.

e.   encourage customers to linger longer.

Independently owned firms that take title to the merchandise they handle are referred to as

a.   brokers.

b.   agencies.

c.   virtual retailers.

d.   merchant wholesalers.

e.   merchant retailers.

Merchant wholesalers are independently owned firms that __________ the merchandise they handle.

a.   take title to

b.   broker

c.   act as agents for

d.   break bulk and repackage

e.   do not deliver

Which type of wholesaler carries a broad assortment of merchandise and performs all channel functions?

a.   drop shipper

b.   limited-line wholesaler

c.   specialty merchandise wholesaler

d.   rack jobber

e.   general merchandise wholesaler

 

The means (salesperson, advertising media, or public relations tools) of conveying a message to a receiver during the communication process is referred to as the __________.

a.   channel of communication

b.   information corridor

c.   communications highway

d.   information pathway

e.   information channel

All of the following are channels of communication that convey a message from a source to a receiver EXCEPT:

a.   magazine

b.   news release

c.   salesperson

d.   chief marketing office (CMO)

e.   TV

L’Oréal created an advertisement for its Visible Lift makeup.  Glamour magazine, in which the ad for the L’Oréal Visible Lift makeup appeared, is an example of (a) __________.

a.   message

b.   noise

c.   feedback loop

d.   source

e.   channel of communication

The billboards that Sony uses to advertise its PlayStation 3 video game console are __________.

a.   channels of communication

b.   messages

c.   noise

d.   feedback loops

e.   sources

Consumers who read, hear, or see the message sent by a source during the communication process are referred to as __________.

a.   purchasers

b.   the target market

c.   receivers

d.   sources

e.   encoders

The term “receivers” refers to

a.   only those consumers who read, hear, or see a message about a product or service and then choose to buy it.

b.   consumers who read, hear, or see the message sent by a source during the communication process.

c.   a firm that obtains a basic message or theme from its advertising agency and translates that vision into a useable IMC campaign.

d.   promotional firms that select the best channels through which to convey advertising messages.

e.   customers who read, hear, or see the message sent by a source and misinterpret or reinterpret the message to fit their individual beliefs.

In the communication process, the 18- to 34-year-old men who see a NASCAR TV commercial advertising P&G’s Old Spice High Endurance antiperspirant are called __________.

a.   purchasers

b.   the target market

c.   wasted coverage

d.   receivers

e.   encoders

The process of having the sender transform an idea into a set of symbols during the communication process is referred to as __________.

a.   decoding

b.   encrypting

c.   message formation

d.   advertising

e.   encoding

In a brainstorming session for a new drug to lower cholesterol, the members of the marketing department agreed the benefits of the new drug could best be promoted by comparing the drug to those currently on the market.  In terms of the communication process, the transformation of this idea into an ad campaign is an example of __________.

a.   noise

b.   receiving

c.   encoding

d.   decoding

e.   messaging

When Procter & Gamble bought the Old Spice brand in 1990, it planned to transform the old, stagnating brand into a men’s “personal-care powerhouse.”  The ads that P&G developed shed the older-man image and now appeal to the 18 to 34 age group.  In terms of the communication process, P&G had to __________ its idea to create the message shown to the new target market.

a.   respond

b.   discuss

c.   decode

d.   encode

e.   feedback

Decoding refers to

a.   receiving a message within a common field of experience and breaking down that information into small useable units to better interpret its meaning.

b.   having a receiver take a set of symbols, the message, and transform them back to an idea.

c.   receiving a message that requires integration of new information to fully understand the intended meaning.

d.   having the sender transform an abstract idea into a set of symbols that can be universally understood.

e.   having a sender take a set of symbols, the message, and transform them back to an idea.

The process of having the receiver take a set of symbols, the message, and transforming them back to an idea during the communication process is referred to as __________.

a.   decoding

b.   encoding

c.   integrating

d.   back translation

e.   transformation

After watching a 30-second commercial from Jarrod’s fine jewelry, Mariah was certain the brooch she saw would look spectacular on her new evening dress.  In terms of the communication process, Mariah engaged in the task of __________.

a.   integrating

b.   sending

c.   decoding

d.   messaging

e.   encoding

After watching the 30-minute infomercial on Oxy-Clean, Sarah was certain the cleaning product would remove the grape juice stain from her white carpet.  In terms of the communication process, Sarah was  __________ the message from Oxy-Clean.

a.   integrating

b.   transforming

c.   translating

d.   decoding

e.   encoding

Errors in communication can occur in several ways: (1) the source may not adequately transform the abstract idea into an effective set of symbols, (2) __________, (3) the receiver may not properly transform the set of symbols into the correct abstract idea, or (4) feedback may be so delayed or distorted that it is of no use to the sender.

a.   a properly encoded message may be sent through the wrong channel and never make it to the receiver

b.   in an attempt to be creative, the encoder creates a message with too much noise

c.   the communications channel is not properly funded

d.   the message is considered too ordinary because there is too broad a field of experience

e.   there is no interest on the part of the receiver because the product itself is inadequate

Errors in communication can occur in several ways: (1) the source may not adequately transform the abstract idea into an effective set of symbols; (2) a properly encoded message may be sent through the wrong channel and never make it to the receiver; (3) the receiver may not properly transform the set of symbols into the correct abstract idea; or (4) __________.

a.   the communications channel is not properly developed

b.   there is no interest on the part of the receiver

c.   feedback may be so delayed or distorted that it is of no use to the sender

d.   the message is considered too ordinary because there is too much field of experience

e.   the encoder is inexperienced, resulting in too much noise

Errors in communication can occur in several ways: (1) the source may not adequately transform the abstract idea into an effective set of symbols; (2) a properly encoded message may be sent through the wrong channel and never make it to the receiver; (3) __________; or (4) feedback may be so delayed or distorted that it is of no use to the sender.

a.   in an attempt to be creative, the encoder creates a message with too much noise

b.   there is no interest on the part of the receiver because the product itself is inadequate

c.   the communications channel is not properly developed

d.   the message is considered too ordinary because there is too broad a field of experience

e.   the receiver may not properly transform the set of symbols into the correct abstract idea

Which of the following messages represents a potential communication error?

a.   “Once-in-a-lifetime offer!”

b.   “Buy one, get one free!”

c.   “Can’t read?  Let us help.  Free literacy classes.”

d.   “Great part-time job opportunity; transportation required.”

e.   “Two bottled waters for $3.00 or $1.75 apiece.”

A similar understanding and knowledge that the sender and receiver apply to the message so that it can be communicated effectively during the communication process is referred to as __________.

a.   common ground

b.   field of experience

c.   McLuhanism

d.   hermeneutics

e.   back translation

A field of experience refers to

a.   the unique set of terms, expressions, or jargon that carries a specific meaning within a specific field (i.e., the medical profession, legal profession, etc.).

b.   the designation given to different elements in the communications channel based upon their specific area of expertise (i.e., advertising, publicity, etc.).

c.   a similar understanding and knowledge between the manufacturer or service provider and department or firm handling its IMC campaign so there is no incorrect decoding of the sender’s message.

d.   a mutually shared understanding and knowledge between the manufacturer or service provider and department or firm handling its IMC campaign so there is no incorrect encoding of the sender’s message.

e.   a similar understanding and knowledge that the sender and receiver apply to the message so that it can be communicated effectively during the communication process.

For a message to be communicated effectively, the sender and receiver must have a mutually shared field of experience, which means a similar __________ they apply to the message.

a.   common ground

b.   national, regional, or ethnic origin

c.   understanding and knowledge

d.   feeling

e.   psychographics

When an English-speaker reads the KFC slogan “Finger-lickin’ good!,” he or she interprets this as an indication that the food tastes very good.  When this slogan was translated into Chinese, the Chinese-speaker interprets the same words as “eat your fingers off!”  The different interpretations of the ad are primarily due to differing __________.

a.   product consumption behaviors

b.   fields of experience

c.   channels of communication

d.   educational systems

e.   advertising appeals

Cardiac Science is a California-based company that makes defibrillators, heart monitors, and other medical equipment.  It is preparing to market its products in Greece.  The company’s marketing manager is responsible for the promotional campaign in Greece, and she wants to avoid any problems that might arise because her field of experience does not coincide with that of her Greek target audience.  Which of the following is the best example of a communications problem that might arise because her field of experience is different from that of her audience?

a.   The name of the product, when translated into Greek, has an unintentional meaning.

b.   Her target audience is strongly ethnocentric.

c.   The trade journals in which the company wants to run its ads do not accept ads from foreign companies.

d.   A Greek bureaucrat who is responsible for determining that the Cardiac Science products meet national standards has taken a personal dislike to her.

e.   The ads are in trade journals that Greek hospital administrators don’t read.

The marketing professor wanted to do everything possible to ensure that her students understood her lectures.  Accordingly, she used examples of marketing activities that most students were familiar with.  For example, the professor discussed the marketing exchanges between students and grocers, college bookstores, convenience stores, and clothiers.  The examples used by the professor were her attempt to __________ her message to encourage better understanding on the part of her students.

a.   create common ground for

b.   create noise in

c.   effectively decode

d.   develop a mutually shared field of experience with

e.   back translate

A _________ consists of a response and feedback.

a.   feedback loop

b.   consequence

c.   source reaction

d.   primary significance

e.   concept effect

In the feedback loop, the impact the message has on the receiver’s knowledge, attitude, or behaviors during the communications process is referred to as __________.

a.   feedback

b.   a field of experience

c.   noise

d.   a response

e.   a hierarchy of effects

In a feedback loop, a response refers to

a.   the number of times a consumer must hear a message before it can be accurately decoded.

b.   the impact the message had on the receiver’s knowledge, attitude, or behaviors during the communications process.

c.   the positive or negative feedback that a consumer expresses immediately after exposure to a company’s message.

d.   the impact, either positive or negative, that occurs when one consumer interprets a firm’s message through word of mouth to another potential consumer using his or her own words.

e.   the length of time required for a typical customer to associate a specific slogan, theme, melody, or logo with a specific product brand.

Ann recently saw an ad for Claritin, a medicine perfect for counteracting her allergy symptoms.  She immediately went to the store to purchase the product.  In terms of the communication process, the Claritin ad created a(n) __________.

a.   stimulus

b.   exposure

c.   field of experience

d.   subconscious impulse

e.   response

Melissa saw an ad promoting Vermont as a tourist destination and a great place to live.  The ad contained a postage-paid reply card that could be used to request more information.  In terms of the communication process, the mailing in of the postcard with a request for further information is an example of __________.

a.   a stimulus

b.   a field of experience

c.   a response

d.   noise

e.   a feedback loop

After a receiver responds to a message, the sender’s interpretation of the response indicating whether the message was decoded and understood as intended during the communications process is referred to as __________.

a.   encoding

b.   receiver response

c.   feedback

d.   noise

e.   message loop

In the feedback loop, feedback refers to

a.   the sender’s interpretation of the response that indicates whether the message was decoded and understood as intended.

b.   the impact the message had on the receiver’s knowledge, attitude, or behaviors during the communications process.

c.   a mutually shared understanding and knowledge the sender and receiver apply to a message so that it can be communicated effectively during the communication process a message loop.

d.   any unsolicited response from consumers or potential consumers regarding a company’s message.

e.   extraneous factors that can work against effective communication by distorting a message or the feedback received.

In the communication process, _________ ensure(s) that messages are decoded properly.

a.   responses

b.   replies

c.   feedback

d.   pretesting

e.   looping

In the communication process, noise refers to

a.   any unsolicited response from consumers or potential consumers regarding a company’s message.

b.   any communication with consumers who are not in the target audience.

c.   extraneous factors that can work against effective communication by distorting a message or the feedback received during the communication process.

d.   the use of colors, words, sounds, or images that make an otherwise simple message more complex.

e.   a unique set of terms, expressions, or jargon that carries a specific meaning within a specific field (i.e., the medical profession, legal profession, etc.).

In the communication process, printing mistakes that affect the meaning of a newspaper advertisement, or using words or pictures that fail to communicate the message clearly, are referred to as

a.   noise.

b.   clutter.

c.   feedback.

d.   distortions.

e.   annoyances.

Mary’s Cookies submitted an ad to the local newspaper with a coupon stating that a dozen cookies cost  $2.99.  The newspaper instead printed the price on the coupon as $29.99.  Consequently, no customers came in to buy cookies by using the coupon.  The factor working against effective communication between Mary and her target market in this case was most likely the result of __________.

a.   feedback disruption

b.   noise

c.   a decoding error

d.   a communication barrier

e.   message interference

The marketing manager from a heavy-equipment manufacturer in Dallas, Texas, was attending an international trade show in Japan.  There were many prospective customers from different countries who seemed interested in the firm’s product.  However, they had difficulty following the manager’s explanations of product features due to his heavy Texas drawl.  In this case, the accent would be considered __________.

a.   an encoding error

b.   a decoding error

c.   culture shock

d.   noise

e.   distortion

Each year, advertisers spend millions of dollars during the Super Bowl half-time show.  These marketers hope to reach the millions of sports enthusiasts tuned into the NFL’s greatest spectacle.  Unfortunately, during the half-time festivities, many viewers dash to the kitchen for a sandwich and a soda and do not see or hear the persuasive promotional messages of the advertisers.  The desire for food and drink is an example of __________, which inhibits effective communication.

a.   distraction

b.   diversion

c.   ineffective encoding

d.   information overload

e.   noise

Advertising, personal selling, sales promotion, public relations, and direct marketing are marketing communications alternatives that make up a firm’s __________.

a.   cooperative advertising

b.   marketing mix

c.   media strategy

d.   promotional mix

e.   communication source



To communicate with consumers, a company can use one or more of five promotion alternatives.  In Figure 17-2 above, the promotional element labeled “A” represents _________.

a.   advertising

b.   personal selling

c.   public relations

d.   sales promotion

e.   direct marketing

To communicate with consumers, a company can use one or more of five promotion alternatives.  In Figure 17-2 above, the promotional element labeled “B” represents _________.

a.   advertising

b.   personal selling

c.   public relations

d.   sales promotion

e.   direct marketing

To communicate with consumers, a company can use one or more of five promotion alternatives.  In Figure 17-2 above, the promotional element labeled “C” represents _________.

a.   advertising

b.   personal selling

c.   public relations

d.   sales promotion

e.   direct marketing

To communicate with consumers, a company can use one or more of five promotion alternatives.  In Figure 17-2 above, the promotional element labeled “D” represents _________.

a.   advertising

b.   personal selling

c.   public relations

d.   sales promotion

e.   direct marketing

To communicate with consumers, a company can use one or more of five promotion alternatives.  In Figure 17-2 above, the promotional element labeled “E” represents _________.

a.   advertising

b.   personal selling

c.   public relations

d.   sales promotion

e.   direct marketing

Advertising, sales promotion, and public relations are often said to use _________ because they are used with groups of prospective buyers.

a.   cooperative selling

b.   mass selling

c.   customized selling

d.   collection selling

e.   bulk selling

Which of the following would be LEAST LIKELY to be used for mass selling?

a.   advertising

b.   public relations

c.   sales promotion

d.   publicity

e.   personal selling

In a promotional sense, customized interaction refers to

a.   the creation of unique products based upon the needs and wants of individual consumers.

b.   the translation of a company’s message into multiple languages for use in advertising in different countries or regions.

c.   personal selling between a seller and a prospective buyer that can include face-to-face, telephone, and interactive electronic communication.

d.   the creation of different promotional campaigns based on gender, age, or ethnicity.

e.   the use of different images (such the covers of Sports Illustrated) to reach different product groupings.

Which of the following types of promotion uses customized interaction?

a.   advertising

b.   public relations

c.   sales promotion

d.   personal selling

e.   publicity

Which of the following types of promotion uses customized interaction?

a.   advertising

b.   direct marketing

c.   public relations

d.   sales promotion

e.   publicity

Advertising refers to

a.   any nonpersonal, indirectly paid presentation of an organization, service, or product.

b.   a short-term inducement of value offered to arouse interest in buying a product or service.

c.   methods used to identify a target market for a particular product or service.

d.   any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.

e.   any unpaid form of personal presentation of products and services.

A paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor is referred to as __________.

a.   sales promotion

b.   publicity

c.   advertising

d.   direct marketing

e.   mass communication

What is the nature of the “paid” aspect of advertising?

a.   Fees are paid for space or time.

b.   Fees are paid to salespeople as either salaries or commissions.

c.   Fees are paid to creative arts contributors but there is no direct payment to media.

d.   There is a wide range of fees paid depending upon the promotion selected.

e.   The primary costs are now associated with communication through mail, telephone, or the Internet.

Which of the following statements about advertising is most accurate?

a.   Advertising can communicate specific product benefits to prospective buyers.

b.   Advertising has limited control as to when and where an advertisement will be used.

c.   A key advantage of advertising is its ability to use customized interactions.

d.   Advertising can be a very effective “attention getter” especially for new products, but has little impact for repeat buys.

e.   Advertising is one of the least costly forms of promotion because it reaches a mass market.

Which of the following statements about advertising is most accurate?

a.   Advertising has limited control as to when and where an advertisement will be used.

b.   Advertising allows a firm to reach a mass market.

c.   A key advantage of advertising is its ability to use customized interactions.

d.   Advertising can be a very effective “attention getter” especially for new products, but has little impact for repeat buys.

e.   Advertising is one of the least costly forms of promotion because it reaches a pretested market.

Which of the following statements about advertising is most accurate?

a.   Advertisers have limited control as to when and where their advertisements will be placed.

b.   A key advantage of advertising is its ability to use customized interactions.

c.   Advertising can be a very effective “attention getter” especially for new products, but has little impact for repeat buys.

d.   Advertising is one of the least costly forms of promotion because it reaches a pretested market.

e.   Through advertising, a company can control what it wants to say, when they want to say it, and to some extent, to whom the message is sent.

Which of the following is an inherent strength of advertising?

a.   Advertising provides immediate feedback.

b.   Advertising can deliver complex information.

c.   Advertising can create messages quickly.

d.   Advertising is an efficient means for reaching large numbers of people.

e.   Advertising is often the most credible source of information for consumers.         

Which of the following is an inherent weakness of advertising?

a.   extremely high expense per exposure

b.   difficult to get media cooperation

c.   high absolute costs

d.   easily duplicated

e.   can easily lead to promotion wars

Which of the following is an inherent strength of publicity?

a.   It can receive immediate feedback.

b.   It can provide the target audience with complex information.

c.   It can prepare messages quickly.

d.   It is an efficient means for reaching large numbers of people.

e.   It is often the most credible source in the consumer’s mind.

Which of the following is an inherent weakness of publicity?

a.   high absolute costs

b.   difficult to receive good feedback

c.   easily duplicated

d.   a lack of user control over it

e.   can easily lead to promotion wars

The local radio station broadcast a story about a dry-cleaner that had requested coat donations.  The company offered to clean the coats and deliver them to people in need.  The various addresses of the dry-cleaner chain were also broadcast so that donations could be dropped off.  Since this featured business did not pay for this exposure, it benefited from __________.

a.   advertising

b.   direct marketing

c.   personal selling

d.   publicity

e.   sales promotion

A small film company is releasing a documentary about the efforts of a group dedicated to saving endangered species.  However, the firm has little resources to promote the film.  Which promotional element should it employ?

a.   Hire a salesperson to speak to environmental groups.

b.   Ask local radio and television stations to run a favorable story about the film.

c.   Advertise on billboards in each local market.

d.   Invite students to participate in a contest to win free tickets.

e.   Send postcards to all people within a 25-mile radius of a theater showing the movie

Imagine a small agrichemical laboratory with a very small marketing budget develops a seed that produces grass that grows two inches high and no higher.  Which promotional element should it use to communicate its discovery?

a.   advertising

b.   personal selling

c.   sales promotion

d.   publicity

e.   missionary sales

Although the lack of control means that it is rarely the main element of a promotional campaign, __________ is an important element of most promotional campaigns.

a.   publicity

b.   advertising

c.   personal selling

d.   sales promotion

e.   direct marketing

Research indicates that publicity followed by advertising with the same message

a.   undermines the credibility of the first message and therefore lessons its effect.

b.   increases the positive response to the message.

c.   increases the positive response to the message when it is delivered by a well-known spokesperson.

d.   is less effective than publicity followed by a sales promotion with a similar theme.

e.   is no more or less effective than when used alone.

A short-term inducement of value offered to arouse interest in buying a product or service is referred to as __________.

a.   customer incentive

b.   customer enticement

c.   free publicity

d.   sales promotion

e.   purchase incentive

Sales promotion refers to

a.   a short-term inducement of value offered to arouse interest in buying a product or service.

b.   a single-themed IMC campaign employing multiple advertising and personal selling strategies.

c.   individualized communications programs that are specifically designed with a single customer in mind because the item being sold is unique to that customer.

d.   a long-term inducement of value offered to build and sustain loyal customer relationships.

e.   a sequence of value inducements aimed at retaining channel members.

Coupons, rebates, samples, and sweepstakes are all examples of __________.

a.   endorsements

b.   sponsorships

c.   free publicity

d.   purchase aids

e.   sales promotions

All of the following are examples of sales promotion tools EXCEPT:

a.   samples

b.   sweepstakes

c.   BOGOs

d.   catalogs

e.   rebates

Sales promotions cannot be the sole basis for a promotional campaign because

a.   all sales promotions have legal time limit restrictions to prevent unfair trade practices.

b.   gains from the sales promotion are often temporary and sales drop off when it ends.

c.   sales promotions are too costly and soon become a financial liability.

d.   sales promotions are traditionally handled by outside firms and not the manufacturer, which often results in a significant loss of profit.

e.   consumers obtain an inflated impression of a product’s actual value or worth.

If used continuously, which of the following promotional elements will most likely lose its effectiveness?

a.   advertising

b.   personal selling

c.   sales promotion

d.   publicity

e.   direct marketing

Which of the following weaknesses is associated with sales promotions?

a.   They have high absolute costs.

b.   Messages differ between the sales promotion tools.

c.   It is difficult to get media cooperation.

d.   They can easily lead to promotion wars.

e.   Their effectiveness diminishes when used continuously.

When you redeem a 50-cents-off coupon for Crest toothpaste at your local supermarket, you are being influenced primarily by __________.

a.   advertising

b.   sales promotion

c.   public relations

d.   publicity

e.   personal selling

DLS Cosmetics is trying to create brand awareness by sending households free samples of its products as well as coupons.  These free samples and coupons are examples of __________.

a.   free advertising

b.   personal selling

c.   sales promotions

d.   free publicity

e.   direct sales

Procter & Gamble introduced Old Spice High Endurance antiperspirant, targeted to teen-aged boys who don’t watch much TV.  P&G did grassroots marketing, including handing out samples at skateboarding events and sponsoring a contest for high-school football player of the year.  P&G emphasized which promotional element in this example?

a.   sales promotion

b.   advertising

c.   personal selling

d.   public relations

e.   word-of-mouth

A food warehouse store got a very good buy on a brand of frozen orange juice and, rather than maintain it as extra inventory, needs to sell it quickly to consumers.  Which promotional element should be used?

a.   advertising

b.   personal selling

c.   publicity

d.   sales promotion

e.   direct marketing

A promotion alternative that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet is referred to as __________.

a.   personal selling

b.   sales promotion

c.   publicity

d.   advertising

e.   direct marketing

Direct marketing refers to

a.   individualized communications programs specifically designed with a single customer in mind because the item being sold is unique to that customer.

b.   a promotion alternative that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet.

c.   communication between a seller and a prospective buyer that can include face-to-face, telephone, and interactive electronic communication.

d.   a sales strategy whereby the exchange takes place at the time of engagement, such as selling produce at a local farmer’s market.

e.   a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services.

All of the following are examples of direct marketing tools EXCEPT:

a.   e-mail solicitations

b.   telephone solicitations

c.   Groupon

d.   catalogs

e.   direct response ads on TV

Which of the following is an inherent strength of direct marketing?

a.   Direct marketing can be adapted quickly to facilitate customer relationships.

b.   Direct marketing is often the most credible source in the consumer’s mind.

c.   Direct marketing can provide complex information.

d.   Direct marketing can quickly stimulate and maintain market share.

e.   Direct marketing is a low cost means of reaching the target market.

Which of the following is an inherent weakness of direct marketing?

a.   It is a low cost means of reaching the target market.

b.   Its messages may differ between direct mailings, confusing the target market.

c.   It is expensive and time consuming to develop and maintain a database.

d.   It is difficult to get media cooperation.

e.   It can lead to promotion wars.

Which of the following is an inherent weakness of direct marketing?

a.   high absolute costs

b.   declining customer response

c.   differing messages between salespeople

d.   difficult to get media cooperation

e.   easily duplicated and can easily lead to promotion wars

Which of the following promotional elements requires expensive database management and often experiences declining response rates?

a.   advertising

b.   personal selling

c.   sales promotion

d.   publicity

e.   direct marketing

Like personal selling, __________ often consists of interactive communication.

a.   direct marketing

b.   advertising

c.   a sales promotion

d.   publicity

e.   a public service announcement

Like personal selling, __________ has the advantage of being customized to match the needs of specific target markets.  Messages can be developed and adapted quickly to facilitate one-to-one relationships with customers.

a.   advertising

b.   a sales promotion

c.   publicity

d.   direct marketing

e.   a public service announcement

The growing concern about __________ has led to a decline in direct marketing response rates among some customer groups.

a.   government regulation

b.   privacy

c.   landfill waste

d.   postal rates

e.   fraud

Direct marketing has the advantage of being __________ to match the needs of specific target markets.

a.   priced

b.   uniform

c.   customized

d.   engaged

e.   integrated

All of the following factors are used to BALANCE the use of the promotional mix elements EXCEPT:

a.   the channel of distribution.

b.   the product’s life cycle.

c.   the decision stage of the buyer.

d.   the different departments responsible for implementing the sales promotion strategy and tactics.

e.   the characteristics of the product.

Which of the following statements regarding the promotional mix is most accurate?

a.   For maximum impact, funding for promotions should be equally divided among the five elements of the promotional mix.

b.   The promotional mix can be influenced by the product’s life cycle, characteristics of the product, purchase decision stage of the buyer, and the channel of distribution.

c.   Regardless of which other elements are selected, advertising must be included in every promotional decision in order for an IMC campaign to be successful.

d.   Decisions regarding the promotional mix should be left to each manager in the marketing department who knows best what to do for his or her own specialty.

e.   It is not necessary to have a coordinated goal for an IMC campaign provided each department has a goal of its own.

According to recent research, _________ consumers are most likely to respond to mobile marketing programs.

a.   baby boomers

b.   baby busters

c.   baby boomlets

d.   Generation Y

e.   Generation X

Marketers can communicate best with Generation Y consumers by __________.

a.   using cable TV ads since this generation watches TV more than any other medium

b.   adding mobile media to their IMC campaigns

c.   placing ads on Sirius XM radio

d.   using the 24/7 approach

e.   using radio ads since this generation listens to radio more than any other medium

The practice of __________ is so common that researchers estimate a typical media day for Generation Y consumers is 31 hours.

a.   simultaneous media use

b.   media addiction

c.   extended multimedia ad campaigns

d.   the never sleeping Internet user

e.   the ability of telemarketers to call nonstop across time zones

Which promotional element is particularly important to business buyers?

a.   public relations

b.   publicity

c.   sales promotion

d.   rebates

e.   personal selling

Many promotional efforts are focused towards __________, who help coordinate promotional campaigns sponsored by the manufacturer and provide marketing advice and expertise.

a.   sales personnel

b.   ultimate consumers

c.   intermediaries

d.   repeat buyers

e.   nonprospects

All products go through a product life cycle of __________ stages: __________.

a.   two; new and improved

b.   two; growth and decline

c.   three; new, improved, and obsolete

d.   four; awareness, interest, involvement, and evaluation

e.   four; introduction, growth, maturity, and decline

 “To inform” is the promotional objective of which stage of the product life cycle?

a.   early growth

b.   growth

c.   accelerated development

d.   maturity

e.   introduction

 “To persuade” is the promotional objective of which stage of the product life cycle?

a.   early growth

b.   growth

c.   accelerated development

d.   maturity

e.   introduction

 “To remind” is the promotional objective of which stage of the product life cycle?

a.   early growth

b.   growth

c.   accelerated development

d.   maturity

e.   introduction

“To phase out” is the promotional objective of which stage of the product life cycle?

a.   decline

b.   growth

c.   decelerated development

d.   maturity

e.   introduction

The promotional objective of the introduction stage of the product life cycle is to __________ consumers in order to increase their level of awareness of the product offering.

a.   inform

b.   persuade

c.   compare

d.   remind

e.   sway

The promotional objective of the growth stage of the product life cycle is to __________ consumers.

a.   inform

b.   remind

c.   update

d.   persuade

e.   hark back

The promotional objective of the maturity stage of the product life cycle is to __________.

a.   inform

b.   persuade

c.   remind

d.   sway

e.   convince

Which promotional element would you most likely use during the growth stage of the product life cycle to solidify channels of distribution?

a.   advertising

b.   sales promotion

c.   publicity

d.   personal selling

e.   direct marketing

Persuading the consumer to buy the product rather than substitutes is the promotional objective during which stage of the product life cycle?

a.   introduction

b.   growth

c.   maturity

d.   accelerated development

e.   early growth

Reminding buyers of the product’s existence is the promotional objective during which stage of the product life cycle?

a.   introduction

b.   growth

c.   maturity

d.   accelerated development

e.   early growth

At which stage in the product life cycle are discounts and coupons offered to both consumers and intermediaries to maintain loyal buyers?

a.   introduction

b.   growth

c.   incubation

d.   maturity

e.   decline

An unsatisfied customer who switches brands is hard to replace.  Which stage of the product life cycle is focused on maintaining loyal buyers so that customers will not switch brands?

a.   introduction

b.   maturity

c.   growth

d.   incubation

e.   decline

The promotional objective of the decline stage of the product life cycle is to __________.

a.   inform

b.   persuade

c.   compare

d.   remind

e.   phase out

What stage of the product life cycle is a period when little money is spent in the promotional mix?

a.   decline

b.   maturity

c.   growth

d.   introduction

e.   incubation

Which stage of the product life cycle is usually a period of phase-out for the product, when little money is spent in the promotional mix?

a.   introduction

b.   growth

c.   maturity

d.   decline

e.   termination

There’s a new prescription drug on the market that helps reduce common allergy symptoms.  Ads for the medicine in magazines and in medical journals would be primarily used to

a.   remind customers that such a product exists.

b.   increase the level of customer awareness for the product.

c.   differentiate the product from all other allergy medications.

d.   support a product penetration pricing strategy.

e.   help in harvesting the product.

Albert Searchware is a type of search engine used at company websites to handle customer questions.  The firm is trying to determine what promotional strategy should be employed with its flagship product.  It has determined that search engine software is in the growth stage of its product life cycle.  Which of the following options should it employ?

a.   Devote 40 percent of the promotional budget to sales promotions that supply the public with demonstration CDs to prove the merits of Albert Searchware.

b.   Spend 30 percent of the budget in the effort to generate publicity for Albert Searchware.

c.   Use the majority of its promotional budget on advertising that focuses on brand differences.

d.   Use a  balanced budget and spend equally for each of the four promotional choices in an attempt to even out sales growth.

e.   Encourage its tech support staff to emphasize the superiority of Albert Searchware and its after-sale support.

The proper blend of elements in the promotional mix depends on the type of product.  The three specific characteristics to be considered are __________, risk, and ancillary services.

a.   complexity

b.   adaptability

c.   durability

d.   accessibility

e.   acceptability

The proper blend of elements in the promotional mix depends on the type of product.  The three specific characteristics to be considered are complexity, __________, and ancillary services.

a.   durability

b.   adaptability

c.   risk

d.   accessibility

e.   acceptability

The proper blend of elements in the promotional mix depends on the type of product.  The three specific characteristics to be considered are complexity, risk, and __________.

a.   size

b.   durability

c.   accessibility

d.   ancillary services

e.   acceptability

The proper blend of elements in the promotion mix depends on a product’s characteristics.  Personal selling would most likely be used to sell __________.

a.   dog dandruff shampoo

b.   an aircraft

c.   fresh produce

d.   a bottle of soda

e.   printer paper

With respect to a product’s characteristics, complexity refers to

a.   the degree of service or support required after the sale.

b.   the assessment of financial risk, social risk, and physical risk.

c.   the number of component parts used in the construction of the original products: the more parts, the more complex the product.

d.   the number of distinct product attributes in terms of color, size, form, and function.

e.   the technical sophistication of the product and the amount of understanding required to use it.    

A product characteristic known as __________ refers to the technical sophistication of the product and the amount of understanding required to use it.

a.   user friendliness

b.   risk

c.   complexity

d.   ancillary service

e.   accessibility

The Olympus Eye Trek is a device that provides “a high-quality personal TV experience.”  It resembles a pair of glasses and when worn makes the user think he or she is watching a 52-inch television.  An ad for the device contains both a telephone number that can be called and a website that can be visited for further information on how the product works.  This Olympus Eye Trek is most likely high in __________.

a.   user friendliness

b.   complexity

c.   risk

d.   synergy

e.   accessibility

A product characteristic known as __________ is relevant to promotional mix decisions and has financial, social, and physical components.

a.   risk

b.   complexity

c.   ancillary services

d.   empathy

e.   synergy

Which of the following statements describes a key difference between advertising and public relations?

a.   Public relations is more expensive on a cost-per-contact basis than advertising.

b.   Public relations is usually directly paid while advertising is usually indirectly paid.

c.   Advertising is usually directly paid while public relations is usually indirectly paid.

d.   Advertising provides an immediate feedback loop while public relations does not.

e.   Public relations always has a much greater reach than advertising.

When Sears places a multiple-page booklet in the local newspaper about its President’s Day sale, it is using which element of the promotional mix?

a.   advertising

b.   sales promotion

c.   publicity

d.   personal selling

e.   direct marketing

New Balance recently spent $13 million for time on television and space in selected magazines to promote its athletic shoes.  What form of marketing communication did it use?

a.   public relations

b.   personal selling

c.   publicity

d.   sales promotion

e.   advertising

The two-way flow of communication between a buyer and a seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision is referred to as

a.   sales promotion.

b.   personal selling.

c.   direct selling.

d.   advertising.

e.   public relations.

Personal selling refers to

a.   a seller-directed flow of communications, often in a face-to-face encounter, designed to promote a product with the purpose of making a sale.

b.   an individualized communications program specifically designed for a single customer because the item being sold is unique to that person.

c.   a mass selling approach that has been be tailored to meet the more select needs of a target market based on age, gender, ethnicity, or occupation.

d.   the two-way flow of communication between a buyer and a seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision.

e.   any spoken (rather than visual or print) attempt to promote a product for the purpose of making a sale.

Which of the following is an inherent strength of personal selling?

a.   Personal selling can provide the target audience with complex information.

b.   Personal selling has low seller involvement.

c.   Personal selling can prepare messages quickly.

d.   Personal selling is an efficient means for reaching large numbers of people.

e.   Personal selling is often the most credible source in the consumer’s mind.

Which of the following in an inherent weakness of personal selling?

a.   It is difficult to receive good feedback.

b.   It is difficult to get media cooperation.

c.   Messages may differ between salespeople.

d.   It can be easily duplicated.

e.   It can can easily lead to promotion wars.

Communication with consumers who are not in the target audience is referred to as __________.

a.   excess coverage

b.   wasted coverage

c.   exhaustive coverage

d.   squandered coverage

e.   dissipated coverage

Wasted coverage can be reduced by which of method of promotion?

a.   sales promotion

b.   public relations

c.   advertising

d.   public service announcements

e.   personal selling

Which promotional mix alternative has the advantage of allowing the seller to see and/or hear the potential buyer’s reaction to the message?

a.   advertising

b.   personal selling

c.   public relations

d.   sales promotion

e.   publicity

Which of these promotional elements has the inherent weakness of extremely high expense per exposure?

a.   advertising

b.   sales promotion

c.   publicity

d.   direct marketing

e.   personal selling

Which of the following statements describes a disadvantage associated with personal selling?

a.   Presentations often provide little opportunity for consumer feedback.

b.   Personal selling permits too much wasted coverage.

c.   There may be inconsistency in the presentation of the message from one salesperson to another.

d.   A salesperson cannot control to whom a presentation is made.

e.   Personal selling is subject to extensive federal, state, and company regulation.

Which of these promotional elements has the highest cost-per-contact or exposure?

a.   advertising

b.   personal selling

c.   sales promotion

d.   publicity

e.   public service announcements

When a company telephones people to ask them to contribute to the Police Benevolent Association (PBA), the calling company is using __________.

a.   advertising

b.   personal selling

c.   sales promotion

d.   public relations

e.   publicity

When a representative for Pampered Chef cooking utensils invites friends to her home and spends 30 minutes demonstrating the superiority of the Pampered Chef products, she is engaging in __________.

a.   missionary sales

b.   sales promotion

c.   public relations

d.   personal selling

e.   a public service announcement

Businesses vary as to the amount of security they require or can afford to access their computer files.  A company that sells a complete line of firewalls, from a no-frills version to one that uses complex retinal scans, would most likely employ which promotional element to effectively promote its product to businesses?

a.   personal selling

b.   advertising

c.   sales promotion

d.   public relations

e.   social media

Lenox China Co. would like to get its annual Christmas ornament series into Macy’s department stores.  Macy’s has a buyer in New York City who makes decisions on its giftware.  Which promotional element would be most appropriate for Lenox to use to reach the Macy’s buyer?

a.   advertising

b.   sales promotion

c.   personal selling

d.   public relations

e.   advertising and public relations

A form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services is referred to as __________.

a.   sales promotion

b.   publicity

c.   advertising

d.   public relations

e.   personal selling

Public relations refers to

a.   a seller-directed flow of communication, often in a face-to-face encounter, designed to promote a product with the purpose of making a sale.

b.   an individualized communications program specifically designed for a single customer because the item being sold is unique to that person.

c.   a mass selling approach that has been be tailored to meet the more select needs of a target market based on age, gender, ethnicity, or occupation.

d.   a form of communication that is intended to counteract any negative information or misinformation that has been fomented by competitors or disgruntled customers.

e.   a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services.

Press conferences and image management are tools used by a firm’s __________ department.

a.   advertising

b.   sales promotion

c.   direct marketing

d.   public relations

e.   personal selling

Publicity refers to

a.   a nonpersonal, indirectly paid presentation of an organization, product, or service.

b.   a short-term inducement of value offered to arouse interest in buying a product or service.

c.   methods used to get a nonpersonal, directly paid presentation of a company or its products.

d.   a paid form of nonpersonal communication about an organization, product, service, or idea, by an identified sponsor.

e.   a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services.

A nonpersonal, indirectly paid presentation of an organization, product, or service that can take the form of a news story, editorial, or product announcement is referred to as __________.

a.   direct sales

b.   publicity

c.   direct marketing

d.   a public service announcement

e.   personal selling

Which of the following statements describes a key difference between advertising and publicity?

a.   Publicity is more expensive on a cost-per-contact basis than advertising.

b.   Publicity is usually directly paid, and advertising is usually indirectly paid.

c.   Advertising is usually directly paid, and publicity is usually indirectly paid.

d.   Advertising provides an immediate feedback loop, and publicity does not.

e.   Publicity always has a much greater reach than advertising.

Travelers throughout the world have relied on Frommer’s guides such as Italy from $90 a Day.  These books outline out-of-the-way, inexpensive restaurants and hotel, giving invaluable _________ to these establishments.

a.   direct sales

b.   publicity

c.   direct marketing

d.   personnel selling

e.   public service announcements

A restaurant review published in the local newspaper is an example of __________.

a.   publicity

b.   sales promotion

c.   advertising

d.   direct marketing

e.   personal selling

 

With respect to a product for which a promotional mix is being developed, risk

a.   refers to the degree of service or support required after the sale.

b.   refers to the technical sophistication of the product and hence the amount of understanding required to use it.

c.   in a product means there should be less emphasis on personal selling.

d.   can be assessed in terms of financial, social, and physical aspects.

e.   is irrelevant.

In terms of product characteristics, the greater the risk, the greater the need for   __________ as a key element of the promotional mix.

a.   advertising

b.   personal selling

c.   sales promotion

d.   publicity

e.   public relations

With many industrial products and consumer purchases, ancillary services are an important consideration in selecting the promotional mix.  The role of __________ is important to establish the seller’s reputation.  However, __________ is essential for building buyer confidence and providing evidence of customer service.

a.   direct marketing; personal selling

b.   personal selling; direct marketing

c.   advertising; personal selling

d.   sales promotion; advertising

e.   public relations; direct marketing



In Figure 17-4 above, line “A” shows that __________, a tool of the promotion mix, is highest in importance during the purchase stage of the consumer purchase decision process.

a.   advertising

b.   public relations

c.   communication

d.   sales promotion

e.   personal selling

In Figure 17-4 above line “B” shows that __________, a tool of the promotion mix, is highest in importance during the purchase stage of the consumer purchase decision process.

a.   advertising

b.   public relations

c.   communication

d.   sales promotion

e.   personal selling

In Figure 17-4 above line “C” shows that __________, a tool of the promotion mix, is highest in importance during the prepurchase stage of the consumer purchase decision process.

a.   advertising

b.   public relations

c.   communication

d.   sales promotion

e.   personal selling

In Figure 17-4 above line “D” shows that __________, a tool of the promotion mix, is least important during the purchase stage of the consumer purchase decision process.

a.   advertising

b.   public relations

c.   communication

d.   sales promotion

e.   personal selling

In the prepurchase stage of the consumer purchase decision process,

a.   trade promotions are more effective than personal selling.

b.   publicity is the most effective promotion tool.

c.   advertising is more helpful than personal selling.

d.   personal selling is more effective than advertising.

e.   personal selling is the most effective way to communicate with potential buyers.

During the postpurchase stage of the consumer purchase decision process, marketers want to reduce postpurchase anxiety for their customers.  Which of the following would be most useful for accomplishing this objective?

a.   advertising only

b.   personal selling only

c.   sales promotion and advertising

d.   publicity and advertising

e.   advertising and personal selling



Channel “A” in Figure 17-5 above represents which type of promotional channel strategy?

a.   direct

b.   indirect

c.   push

d.   pull

e.   vertical

Channel “B” in Figure 17-5 above represents which type of promotional channel strategy?

a.   direct

b.   indirect

c.   push

d.   pull

e.   vertical

A push strategy is when a manufacturer

a.   advertises a great deal to its wholesalers, retailers, and ultimate consumers with the use of nationwide advertising campaigns.

b.   directs the promotional mix to channel members to gain their cooperation in ordering and stocking the product.

c.   forces a retailer to promote its products by placing national ads in local newspapers.

d.   directs its efforts in the form of advertising and sales promotions to ultimate consumers to encourage them to ask the retailer for the product.

e.   directs retailers to promote one product over another to help balance fluctuations in inventory.

When a manufacturer directs the promotional mix to channel members to gain their cooperation in ordering and stocking the product, it is using a(n) __________ strategy.

a.   push

b.   pull

c.   inertia

d.   exclusivity

e.   logistics

Chrysler Corporation provides support and incentives for its Chrysler and Jeep dealers.  Through a multilevel program, Chrysler provides incentives to reward dealers for meeting sales goals.  Dealers receive an incentive when they are near a goal, another when they reach a goal, and a larger incentive if they exceed sales projections.  All of these actions are intended to encourage Chrysler dealers to __________ the Chrysler products through the channel to consumers.

a.   dump

b.   pull

c.   unload

d.   no haggle

e.   push

Directing the promotional mix at ultimate consumers to encourage them to ask retailers for the product is referred to as a(n) __________.

a.   push strategy

b.   intense strategy

c.   inertia strategy

d.   exclusivity strategy

e.   pull strategy

A pull strategy is when a manufacturer

a.   advertises a great deal to its wholesalers, retailers, and ultimate consumers with the use of nationwide advertising campaigns.

b.   forces a retailer to promote its product by placing national brand ads in local newspapers.

c.   directs the promotional mix at ultimate consumers to encourage them to ask retailers for the product.

d.   directs the promotional mix toward channel members to gain their cooperation in ordering and stocking the product.

e.   directs retailers to promote one product over another to help balance fluctuations in inventory.

Pharmaceutical companies now spend more than $4 billion annually on __________ prescription drug advertising to complement traditional personal selling and free samples directed only at doctors.

a.   consumer integrated

b.   doctor cohort

c.   informational DVD

d.   direct-to-consumer

e.   customized on-line

The manufacturers of drugs encourage patients to learn more about the drugs and ask for them by name from the doctor.  The manufacturers of these drugs are using a(n) __________ promotional strategy.

a.   pull

b.   intense

c.   push

d.   inertia

e.   exclusive

Many prescription drugs such as Lipitor have national TV advertising campaigns to encourage patients to learn more about the drugs and ask for them by name from their doctors.  The manufacturers of these drugs are using a(n) __________ promotional strategy.

a.   intense

b.   pull

c.   push

d.   inertia

e.   exclusive



The promotion decision process is divided into three phases.  In Figure 17-6 above, “A” refers to the _________ phase.

a.   planning

b.   forecasting

c.   evaluation

d.   realization

e.   implementation

The promotion decision process is divided into three phases.  In Figure 17-6 above, “B” refers to the _________ phase.

a.   scheduling

b.   development

c.   implementation

d.   evaluation

e.   planning

The promotion decision process is divided into three phases.  In Figure 17-6 above, “C” refers to the _________ phase.

a.   planning

b.   implementation

c.   forecasting

d.   discharge

e.   evaluation

The actions a firm takes during the promotion decision process include __________, executing, and assessing the promotion program.

a.   pretesting

b.   developing

c.   stating the mission

d.   selecting the appeal

e.   selecting the media

The first decision in developing the promotion program is to __________.

a.   set the budget

b.   state the mission

c.   identify the target audience

d.   select the appeal

e.   select the media

During the planning phase of an IMC program, a firm will __________, specify the promotion objectives, set the budget, select the right promotional tools, design the promotion, and schedule the promotion.

a.   pretest the promotion

b.   identify the target audience

c.   state the mission

d.   identify possible advertising or promotional firms

e.   carry out the promotion

During the planning phase of an IMC program, a firm will identify the target audience, __________, set the budget, select the right promotional tools, design the promotion, and schedule the promotion.

a.   specify the promotion objectives

b.   pretest the promotion

c.   state the mission

d.   identify possible advertising or promotional firms

e.   carry out the promotion

During the planning phase of an IMC program, a firm will identify the target audience, specify the promotion objectives, set the budget, __________, design the promotion, and schedule the promotion.

a.   pretest the promotion

b.   state the mission

c.   identify possible advertising or promotional firms

d.   carry out the promotion

e.   select the right promotional tools

During the planning phase of an IMC program, a firm will identify the target audience, specify the promotion objectives, set the budget, select the right promotional tools, __________, and schedule the promotion.

a.   pretest the promotion

b.   design the promotion

c.   state the mission

d.   identify possible advertising or promotional firms

e.   carry out the promotion

During the implementation phase of an IMC program, a firm will __________ and carry out the promotion.

a.   posttest the promotion

b.   design the promotion

c.   state the mission

d.   identify possible advertising or promotional firms

e.   pretest the promotion

During the implementation phase of an IMC program, a firm will pretest the promotion and __________.

a.   posttest the promotion

b.   design the promotion

c.   state the mission

d.   carry out the promotion

e.   identify possible advertising or promotional firms

During the evaluation phase of an IMC program, a firm will __________ and make needed changes.

a.   posttest the promotion

b.   design the promotion

c.   state the mission

e.   carry out the promotion

d.   identify possible advertising or promotional firms

During the planning phase of the promotion program, marketers focus on the “four Ws,” which include all of the following, in question form, EXCEPT:

a.   “What are (a) the promotion objectives? (b) the amounts of money that can be budgeted for the promotion program? and (c) the kinds of copy to use?”

b.   “Why is the promotion being done?”

c.   “When should the promotion be run?”

d.   “Who is the target audience?”

e.   “Where should the promotions be run?”

The _________ is defined as the group of prospective buyers toward which a promotion program is directed.

a.   directed audience

b.   intended audience

c.   promotion audience

d.   selling audience

e.   target audience        

The group of prospective buyers toward which a promotion program is directed is referred to as a

a.   target audience.

b.   target selection.

c.   selected audience.

d.   prospective audience.

e.   media audience.

Promotional programs are specifically directed toward a group of prospective buyers, or a(n) __________.

a.   source

b.   diffuser

c.   encoder

d.   target audience

e.   particular media

For a promotional campaign, the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action is referred to as _________.

a.   the purchase continuum

b.   the hierarchy of effects

c.   the product life cycle

d.   the consumer purchasing scale

e.   Maslow’s hierarchy

For a promotional campaign, hierarchy of effects refers to the stages a prospective buyer goes through, which include:

a.   awareness, interest, evaluation, trial, and rejection.

b.   interest, adoption, and brand loyalty.

c.   cognitive, affective, and behavioral.

d.   awareness, interest, evaluation, trial, and adoption.

e.   see an ad, try the product, and buy the product.

A prospective buyer goes through a sequence of stages from initial awareness of a product to eventual action (either trial or adoption of the product).  The stages include awareness, interest, evaluation, trial, and adoption, and are referred to as _________.

a.   the hierarchy of effects

b.   Maslow’s hierarchy

c.   the purchase continuum

d.   the consumer-product cycle

e.   the consumer purchasing hierarchy

The first stage in the hierarchy of effects is __________.

a.   interest

b.   awareness

c.   adoption

d.   trial

e.   evaluation

The second stage in the hierarchy of effects is __________.

a.   interest

b.   awareness

c.   adoption

d.   trial

e.   evaluation

The fourth stage in the hierarchy of effects is __________.

a.   interest

b.   awareness

c.   adoption

d.   trial

e.   evaluation

The fifth stage in the hierarchy of effects is __________.

a.   interest

b.   awareness

c.   adoption

d.   trial

e.   evaluation

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.   interest

e.   trial

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.

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.   evaluation

c.   awareness

d.   interest

e.   trial

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.

Ann’s young son suffers from allergies and complains about his watery eyes and drowsiness.  Ann felt bad because she thought there was nothing she could do to help him.  When Ann saw the ad for a new drug that counters these symptoms in Martha Stewart Living magazine, she vowed 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.

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

Carrying out the promotion program can be expensive and time consuming.  One researcher estimates that “an organization with sales between $200 million and $500 million will need __________ years” to successfully implement an IMC program.

a.   two

b.   three

c.   four

d.   five

e.   ten

An important factor in developing successful IMC programs is to create a process that facilitates their design and use.  A tool used to evaluate a company’s current process is the IMC

a.   audit.

b.   sensitivity analysis.

c.   what-if analysis.

d.   perceptual map.

e.   pretest.

Which of the following statements about executing and evaluating the promotion program is most accurate?

a.   Although there are five elements in the promotional mix, the only element that really benefits from an IMC audit is advertising.

b.   Most IMC programs have no difficulty creating a pretest, but posttests are much more difficult to construct since a number of unknown elements must be measured.

c.   To fully benefit from IMC programs, companies must create and maintain a test-result database that allows comparisons of the relative impact of the promotional tools and their execution options in varying situations.

d.   The ideal IMC program does not need any evaluation if it is executed according to plan.

e.   The most effective IMC audits are external.  Internal audits tend to bias the results in the favor of the marketing staff’s expectations.

All of the following are forms of direct marketing EXCEPT:

a.   catalogs

b.   in-store free samples

c.   telemarketing

d.   paid searches

e.   direct mail

Direct marketing currently accounts for about _________ of the total U.S. gross domestic product.

a.   8 percent

b.   10 percent

c.   16 percent

d.   20 percent

e.   23 percent



Which of the following forms of direct marketing has the lowest response rate according to Figure 17-8 above?

a.   direct mail

b.   e-mail

c.   paid search

d.   telemarketing

e.   advertising

Which of the following forms of direct marketing has the highest response rate according to Figure 17-8 above?

a.   direct mail

b.   e-mail

c.   paid search

d.   telemarketing

e.   advertising

Which of the following forms of direct marketing has the lowest business usage rate according to Figure 17-8 above?

a.   direct mail

b.   e-mail

c.   telemarketing

d.   paid search

e.   advertising

Which of the following forms of direct marketing has the highest business usage rate according to Figure 17-8 above?

a.   e-mail

b.   direct mail

c.   paid search

d.   telemarketing

e.   advertising

According to Figure 17-8 above, approximately what percentage of businesses use e-mail as a direct marketing tool?

a.   less than 10 percent

b.   35 percent

c.   50 percent

d.   70 percent

e.   over 90 percent

Customers report many benefits of direct marketing, including the following: (1) they don’t have to go to a store; (2) they can usually shop 24 hours a day; (3) buying direct saves time and money; (4) they avoid hassles with salespeople; (5) it’s fun and entertaining; (6) __________ and (7) many customers believe direct marketing provides great customer service.

a.   there is more privacy than in-store shopping

b.   there are fewer product returns

c.   there are usually better product warranties

d.   there are a greater number of additional incentives from sellers to retain customer loyalty

e.   products are generally bundled with other products to offer buyers greater value

Which of the following statements regarding direct marketing is most accurate?

a.   Direct marketing now allows customers to shop up to 12 hours a day.

b.   Although direct marketing usually saves customers time, it does not usually save customers money.

c.   Although direct marketing can save consumers time and money, the process is labor intensive and not very much fun.

d.   Many customers believe direct marketing provides great customer service.

e.   Direct customers feel that their privacy is more likely to be compromised with direct marketing than with other methods.

The result of offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction is referred to as __________.

a.   direct orders

b.   lead generation

c.   traffic generation

d.   indirect orders

e.   prospect bid

Direct orders refer to

a.   direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet.

b.   products that are shipped directly to the place of purchase rather than being stored or distributed through intermediaries.

c.   the result of offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction.

d.   the outcome of an offer designed to motivate people to visit a business.

e.   the result of an offer designed to generate interest in a product or service and a request for additional information.

The result of an offer designed to generate interest in a product or service and a request for additional information is referred to as _________.

a.   direct orders

b.   lead generation

c.   traffic generation

d.   indirect orders

e.   prospecting

Lead generation refers to

a.   the result of offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction.

b.   direct telephone communication only with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet.

c.   products that are shipped directly to the point of purchase rather than being stored or distributed through intermediaries.

d.   the outcome of an offer designed to motivate people to visit a business.

e.   the result of a direct marketing offer designed to generate interest in a product or service, and a request for additional information.

A paid advertisement for the Texas Department of Economic Development—Tourism Division invited readers of a magazine to mail in a postage-paid reply card that was included with the ad, visit the state’s website, or use a toll-free number to request more information about vacation destinations in Texas.  The primary purpose of this ad was  __________.

a.   direct order fulfillment

b.   to make a public service announcement

c.   indirect order generation

d.   lead generation

e.   digital communication

The outcome of a direct marketing offer designed to motivate people to visit a business is referred to as _________.

a.   direct order consignment

b.   lead generation

c.   traffic generation

d.   indirect order fulfillment

e.   first-mover advantage

Traffic generation is

a.   the outcome of an offer designed to motivate people to visit a business.

b.   the result of offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction.

c.   direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet.

d.   the result of a direct marketing offer designed to generate interest in a product or service, and a request for additional information.

e.   an increase in the amount of foot traffic in a retail establishment that coincides with a new advertising campaign.

Pauline received a postcard from a local antique mall.  The card invited her to attend an invitation-only open house at the mall and receive a 10 percent discount on her first purchase that day.  She went to the antique mall the next day to consider buying an antique lamp.  With respect to Pauline, the postcard from the antique mall was a form of direct marketing used to  __________.

a.   generate direct orders

b.   generate leads

c.   create awareness

d.   generate traffic

e.   create a new image

The result of organizations’ efforts to create profiles of customers so that direct marketing tools, such as e-mail and catalogs, can be directed at specific customers are referred to as

a.   databases.

b.   direct order fulfillments.

c.   lead generations.

d.   first-mover advantages.

e.   direct order consignments.

When the number of catalogs being sent to individual carrier routes is small, a database

a.   can add special incentives such as product samples.

b.   can add names to qualify for U.S. postal discounts.

c.   is less effective since the customer base is too small to segment.

d.   is more effective since the customer base does not have to be segmented.

e.   can generate generic catalogs to use instead of targeted ones.

Amazon.com, a successful online retailer, manages an extensive database that includes customers’ names and their tastes in books, among other products.  This information is used to determine which products are suggested to each customer.  This is an example of how Amazon.com uses

a.   advertising.

b.   sales promotion.

c.   direct marketing.

d.   publicity.

e.   personal selling.

Direct marketing faces several challenges and opportunities in global markets.  Several countries, such as Italy and Denmark, have requirements for mandatory “opt-in”—that is,

a.   global marketers must pay a special fee beyond the regular postage for the privilege of using a country’s postal system.

b.   global marketers wishing to use direct marketing must have all mailings approved by their respective trade commissions for appropriateness of content.

c.   global marketers have to purchase special “catalog” postage at a cost higher than what is charged for the same weight of mail sent from one individual to another.

d.   consumers have to pay a special fee to the government to defray the costs of mail carriers having to handle larger volumes of mail from catalogues.

e.  potential customers must give permission to include their name on a list for direct marketing solicitations.

Factors such as differences in payment methods (credit and credit cards), the need for improved reliability and security in regards to the mail system, and government regulations make it especially difficult for __________ in the global market.

a.   direct marketing

b.   advertising

c.   personal selling

d.   sales promotion

e.   publicity

Consumers are often concerned that some marketing efforts are invading their privacy.  While this is a legitimate concern to consumers, the explanation by many marketers is that

a.   if you voluntarily put information into a system, then anyone has the right to access it.

b.   current legislation makes all financial transactions part of the Freedom of Information Act.

c.   marketing provides a customer service; if consumers don’t want to participate, they can avoid shopping where the practice of data sharing takes place.

d.   the collection of data from businesses where customers have shopped allows marketers to satisfy their customers’ needs more effectively by customizing programs specifically for them.

e.   this is a reflection of current times and electronic communication; failure to use these methods will essentially put a company out of business and ultimately everyone will suffer.

The European Union passed a consumer privacy law, called the _________, after several years of discussion with the Federation of European Direct Marketing and the U.K.’s Direct Marketing Association.

a.   Personal Identity Law

b.   Intellectual Property Act

c.   Data Protection Directive

d.   Credit Protection Act

e.   Shared Information Act

The National Do-Not-Call Registry was created to give Americans a tool for maintaining their privacy on home telephone lines.  More than __________ of all households registered.

a.   95 percent

b.   90 percent

c.   80 percent

d.   70 percent

e.   60 percent

Proponents of Do-Not-Track regulations suggest that website owners who use cookies to collect information about consumers’ shopping habits should only do so

a.   with new customers.

b.   with the consumers’ consent.

c.   with repeat customers.

d.   when new products are being offered.

e.   when competitors use cookies.

The European Union passed a law called the E-Privacy Directive to

a.   provide explicit laws for website owners.

b.   protect intellectual property.

c.   increase credit availability.

d.   reduce the cost of postage.

e.   allow more consumers access to the Internet.

The new integrated marketing communications approach for Mountain Dew utilizes

a.   iconic television advertising.

b.   traditional promotion tools and new social media.

c.   traditional promotion tools only.

d.   new social media only.

e.   word-of-mouth advertising only.

Throughout the past 50 years, the Mountain Dew experience has had three dimensions: a do-it-yourself ethic, an operating-outside-the-mainstream perspective, and __________.

a.   global citizenship style

b.   a remain-true-to-yourself attitude

c.   a bring-it-on attitude

d.   an aggressive personal philosophy

e.   a just-do-it mantra

The general concept of the Mountain Dew Dewmocracy campaigns is to:

a.   reduce advertising costs.

b.   attract serious athletes.

c.   use Mountain Dew’s expertise with traditional media.

d.   reposition Mountain Dew as an energy drink.

e.   harness the passion of Mountain Dew’s loyal customers.

The first Mountain Dew Dewmocracy campaign asked consumers to choose the next Dew’s flavor, color, name, and graphics.  How many people participated in the process that resulted in Voltage being introduced to the market?

a.   100,000,000

b.   10,000,000

c.   1,000,000

d.   100,000

e.   10,000

Mountain Dew’s Dewmocracy 2 campaign featured a seven-stage process.  Stage One involved

a.   designing a label for the can.

b.   a truck stop tour with samples of new flavors.

c.   fans organizing into “flavor nations.”

d.   color selection.

e.   naming the product.

In the seventh stage of the Dewmocracy 2 campaign, three flavors were introduced in stores so consumers could vote for their favorite.  The winner, which was then added to Mountain Dew’s product line, was __________.

a.   Supernova

b.   Typhoon

c.   Distortion

d.   White Out

e.   Voltage

The Mountain Dew Dewmocracy 2 campaign was an integrated marketing communications campaign that used many media alternatives.  Mountain Dew managers believe that the approach “uniquely situates Mountain Dew in the consumer landscape as __________.”

a.   a luxury brand

b.   a low-cost substitute

c.   a brand for the people, by the people

d.   a category killer

e.   a hillbilly beverage

 

The next big change coming to television is

a.   OTV or online TV.

b.   digital video recorders (DVRs).

c.   more cable programming.

d.   90-second commercials.

e.   flat screens.

Advertisers are excited about online TV because

a.   ads look better on computer screens.

b.   it will offer target audiences who are engaged in the programming.

c.   there will be more advertising space available.

d.   its utilizes new technology.

e.   measuring effectiveness will be easier.

Any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor is referred to as __________.

a.   publicity

b.   sales promotion

c.   advertising

d.   personal selling

e.   direct marketing

Advertising refers to

a.   any non-paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.

b.   any paid form of personal communication about an organization, product, service, or idea by an identified sponsor.

c.   any non-paid form of personal communication about an organization, product, service, or idea by an unidentified sponsor.

d.   any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.

e.   any paid form of nonpersonal communication about an organization, product, service, or idea by an unidentified sponsor.

Advertisements basically consist of two types: __________ and __________.

a.   re-purchase; postpurchase

b.   promotional; reinforcement

c.   promotional; informative

d.   product; service

e.   product; institutional

Product advertisements refer to advertisements that focus on

a.   a product class rather than on an individual brand.

b.   building goodwill or an image for an organization.

c.   counteracting negative opinions.

d.   selling a product or service.

e.   clarifying misconceptions.

Advertisements that focus on selling a product or service and take three forms—pioneering (or informational), competitive (or persuasive), and reminder—are referred to as

a.   product advertisements.

b.   service advertisements.

c.   persuasive advertisements.

d.   institutional advertisements.

e.   cooperative advertisements.

Product advertisements focus on selling __________.

a.   an idea or a concept

b.   an emotion or a feeling

c.   a sense of well-being

d.   goodwill

e.   a product or service

The three primary types of product advertisements are __________.

a.   pioneering, institutional, and informational

b.   humor, sex, and fear

c.   pioneering, competitive, and reminder

d.   competitive, subliminal, and institutional

e.   cognitive, affective, and behavioral

The three primary types of product advertisements are __________, competitive, and reminder.

a.   goodwill

b.   industrial

c.   persuasive

d.   pioneering

e.   subliminal

The three primary types of product advertisements are pioneering, __________, and reminder.

a.   informational

b.   competitive

c.   industrial

d.   institutional

e.   subliminal

The three primary types of product advertisements are pioneering, competitive, and __________.

a.   informational

b.   industrial

c.   reminder

d.   persuasive

e.   subliminal

A pioneering (or informational) ad

a.   reinforces previous knowledge of a product.

b.   assures current users they made the right choice.

c.   promotes a specific brand’s features and benefits.

d.   tells people what a product is, what it can do, and where it can be found.

e.   shows one brand’s strengths relative to those of competitors.

Another name for pioneering advertising is __________ advertising.

a.   differentiation

b.   persuasive

c.   prospecting

d.   awareness

e.   informational

Pioneering advertisements would MOST likely be used during which stage of the product life cycle?

a.   introductory

b.   decline

c.   mature

d.   harvest

e.   growth

The primary purpose of a pioneering product advertisement is to

a.   tell people what the company is, what it can do, and where it is located.

b.   tell people what a product is, what it can do, and where it can be found.

c.   show one brand’s strengths relative to those of competitors.

d.   reinforce previous knowledge of a product.

e.   build goodwill or an image for an organization rather than promote a specific product or service.

The key objective of a pioneering ad is to

a.   promote a specific brand’s features and benefits.

b.   show one brand’s strengths relative to those of competitors.

c.   inform the target market.

d.   reinforce previous knowledge of a product.

e.   promote the advantages of one product class over another.

Informational ads, particularly those with specific information, have been found to be interesting, convincing, and

a.   inexpensive.

b.   humorous.

c.   expensive.

d.   effective.

e.   competitive.



In the Campbell’s Kettle Soup ad above, Campbell’s is introducing its new Kettle Style soups.  What type of product advertisement is this ad?

a.   reminder

b.   pioneering

c.   reinforcement

d.   comparative

e.   competitive

Verizon’s ad for its new IN calling and messaging service informs the target market about what the service is and what it can do.  It is an example of a(n) __________ ad.

a.   reminder product

b.   reminder institutional

c.   competitive product

d.   informational institutional

e.   pioneering product

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.

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.   awareness

d.   interest

e.   trial

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.

CoolMax is a fabric made by DuPont.  It is 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.   diffusion

c.   innovation

d.   evaluation

e.   interest

In the hierarchy of effects, the consumer’s repeated purchase and use of the product or brand is referred to as the _________ stage.

a.   evaluation

b.   adoption

c.   awareness

d.   interest

e.   trial

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.

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.

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.

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.   appealing.

c.   measurable.

d.   repeatable.

e.   creative.

Which of the following companies had the largest promotional expenditures (advertising + all other promotions) according to Figure 17-7 in the textbook?

a.   General Motors

b.   AT&T

c.   Johnson & Johnson

d.   Procter & Gamble (P&G)

e.   Walmart

All of the following are methods described in the textbook that firms use to set their promotion budgets EXCEPT:

a.   objective and task.

b.   number (#) of unit of sales.

c.   competitive parity.

d.   percentage ( percent) of sales.

e.   all-you-can-afford.

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.

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

In which sales budgeting approach is the amount of money spent based on past or anticipated sales?

a.   competitive parity

b.   all-you-can-afford

c.   objective and task

d.   percentage of sales

e.   relative scale

A major fallacy of __________ budgeting is that by tying a promotion budget to sales, a company may reduce the amount it spends on promotion when it actually needs to spend more.

a.   competitive parity

b.   all-you-can-afford

c.   objective and task

d.   linear forecast

e.   percentage of sales

Imagine you have overheard the owner of a medium-sized manufacturing company saying, “We had a good year, and I think next year will be even better.  I’m going to raise this year’s promotion budget 4.5 percent based on last year’s gross sales.  That will let me do more advertising than the 3.5 percent I budgeted last year.”  From this information, the manufacturer is using __________ budgeting.

a.   percentage of sales

b.   competitive parity

c.   all-you-can-afford

d.   objective and task

e.   linear forecast

Managers often use the promotion-to-sales ratio on their marketing dashboard to assess how effective the integrated marketing communications program expenditures are at generating _________.

a.   sales

b.   the media mix

c.   the marketing matrix

d.   the promotional blend

e.   marketing by objectives (MBO)

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 program 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.

The best way to assess the effectiveness of all promotion expenditures during the past year is to compute a __________.

a.   break-even point

b.   promotion-to-sales ratio

c.   ROI

d.   promotion-to-expenses ratio

e.   advertising-to-sales-promotion ratio

The formula to calculate a promotion-to-sales ratio is: Total promotion expenditures divided by

a.   Total revenue.

b.   Marginal revenue.

c.   Average revenue.

d.   Net sales.

e.   Total sales.

A marketing manager at Ford computed the promotion-to-sales ratio for Ford, GM, and the auto industry itself.  She found that Ford’s ratio was 2.8 percent, GM’s ratio was 4.5 percent, and the auto industry average was 3.2 percent.  She then realized

a.   she had better find a new job as she had been responsible for these results.

b.   she needed to explain these numbers to her boss, especially in relation to the industry.

c.   GM shortly would be taking market share from Ford.

d.   she spent her promotional dollars effectively.

e.   she wasn’t the marketer she thought she was.

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.

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

Another name for competitive parity budgeting is __________ budgeting.

a.   linear forecast

b.   all-you-can-afford

c.   share of market

d.   comparative

e.   matched media

Another name for competitive parity budgeting is __________ budgeting.

a.   linear forecast

b.   all-you-can-afford

c.   comparative

d.   matched media

e.   matching competitors

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.

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.

Which method of promotion budgeting would most likely be used by small businesses?

a.   all-you-can-afford budgeting

b.   percentage of sales budgeting

c.   competitive parity budgeting

d.   objective and task budgeting

e.   linear forecast budgeting

Imagine a small retailer saying, “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 small retailer using?

a.   percentage of sales budgeting

b.   competitive parity budgeting

c.   objective and task budgeting

d.   all-you-can-afford budgeting

e.   linear forecast budgeting

Allocating funds to promotion whereby the company (1) determines its promotion objectives, (2) outlines the tasks to accomplish these objectives, and (3) 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.   objective and task budgeting.

e.   linear forecast budgeting.

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.

Which of the following is the best approach to promotion budgeting?

a.   objective and task budgeting

b.   percentage of sales budgeting

c.   competitive parity budgeting

d.   all-you-can-afford budgeting

e.   linear forecast budgeting

Which of the following steps in the objective and task approach to promotion budgeting must be done correctly in order for any of the others to have the proper effect?

a.   accurately estimate costs of tasks

b.   identify appropriate promotion objectives

c.   accurately identify each promotion budget cost item that constitutes each separate promotion task

d.   perform the promotion tasks as intended

e.   accurately estimate what tasks will accomplish each promotion objective

Which form of promotion budgeting most closely relates to the marketing concept?

a.   percentage of sales budgeting

b.   competitive parity budgeting

c.   all-you-can-afford budgeting

d.   objective and task budgeting

e.   linear forecast budgeting

The Olympics have become a very visible example of a comprehensive integrated communication program.  For organizers, primary importance is placed on

a.   advertising and personal selling.

b.   personal selling and public relations.

c.   public relations and publicity.

d.   sales promotion and direct marketing.

e.   direct marketing and personal selling.

The design of the promotion will play a primary role in determining the message that is communicated to the audience.  Successful designs are often the result of

a.   accurately estimating costs of tasks.

b.   identifying appropriate objectives.

c.   accurately estimating what task will accomplish each objective.

d.   obtaining insights regarding consumers’ interests and behavior.

e.   obtaining insights regarding task performance.

Once the design of each of the promotional program elements is complete, it is important to determine the most effective timing of their use.  The _________ describes the order in which each promotional tool is introduced and the frequency of its use during a campaign.

a.   perceptual map

b.   efficiency matrix

c.   sensitivity analysis

d.   promotion to sales ratio

e.   promotion schedule

 

TransWave International is a small company that has developed a system that uses the Internet and patented electronic sensors as an early-warning device for pipeline leaks.  Pipeline safety is becoming a big issue in the U.S. as more natural gas lines are located near population centers.  The timing is right for this company to be extremely successful, but it must use __________ advertising so oil companies will know of its product’s existence.

a.   reminder

b.   competitive

c.   pioneering

d.   institutional

e.   objective

Advertising that promotes a specific brand’s features and benefits is referred to as __________ advertising.

a.   competitive

b.   institutional

c.   differentiation

d.   pioneering

e.   reminder

A competitive (or persuasive) ad

a.   reinforces previous knowledge of a product.

b.   assures current users they made the right choice.

c.   promotes a specific brand’s features and benefits.

d.   tells people what a product is, what it can do, and where it can be found.

e.   shows one brand’s strengths relative to those of competitors.

The key objective of competitive advertising is to

a.   tell people what a product is, what it can do, and where it can be found.

b.   show one brand’s strengths relative to those of competitors.

c.   reinforce previous knowledge of a product.

d.   promote the advantages of one product class over another.

e.   persuade the target market to select the firm’s brand rather than that of a competitor.

The primary purpose of a competitive advertisement is to

a.   tell people what a product is, what it can do, and where it can be found.

b.   assure current users they made the right choice.

c.   reinforce previous knowledge of a product.

d.   promote a specific brand’s features and benefits.

e.   promote the advantages of one product class over another.

When Cadillac uses advertising to promote specific features of its Escalade hybrid, it is using which type of product advertisement?

a.   reminder

b.   competitive

c.   pioneering

d.   institutional

e.   differentiation

Competitive advertisements that show the relative strength of one brand over another are referred to as __________ advertisements.

a.   advocacy

b.   competitive

c.   reminder

d.   comparative

e.   differentiation

A comparative ad

a.   reinforces previous knowledge of a product.

b.   assures current users they made the right choice.

c.   promotes a specific brand’s features and benefits.

d.   tells people what a product is, what it can do, and where it can be found.

e.   shows one brand’s strengths relative to those of competitors.

Which of the following statements about comparative advertising is MOST accurate?

a.   Comparative advertisements now constitute over 90% of all television ads.

b.   Comparative advertisements attract more consumer attention for the advertiser’s brand.

c.   Comparative advertisements can decrease the perceived quality of the advertiser’s brand.

d.   Comparative advertisements have been banned by the Federal Trade Commission.

e.   Comparative advertisements can, and often do, cause more harm than good.

Which of the following statements about comparative advertising is true?

a.   Comparative advertisements now constitute over 90% of all television ads.

b.   Comparative advertisements attract less consumer attention for the advertiser’s brand.

c.   Comparative advertisements need market research to provide legal support for their claims.

d.   Comparative advertisements have been banned by the Federal Trade Commission.

e.   Comparative advertisements can, and often do, cause more harm than good.

Which of the following statements about comparative advertising is MOST accurate?

a.   Comparative advertisements increase the perceived quality of the advertiser’s brand.

b.   Comparative advertisements now constitute over 90% of all television ads.

c.   Comparative advertisements attract less consumer attention in the advertiser’s brand.

d.   Comparative advertisements have been banned by the Federal Trade Commission.

e.   Comparative advertisements can, and often do, cause more harm than good.



What type of product advertisement is the 1&1 ad shown above?

a.   reminder

b.   pioneering

c.   reinforcement

d.   comparative

e.   advocacy

Studies indicate that comparative ads attract more attention and increase the perceived quality of the advertiser’s brand although their impact may vary by product type, message content, and audience __________.

a.   gender

b.   education

c.   income

d.   ethnicity

e.   occupation

An ad for Citrucel fiber supplement claimed that in a blind taste test consumers preferred the taste of Citrucel to Metamucil 2 to 1.  This is ad is an example of __________ advertising.

a.   reinforcement

b.   comparative

c.   persuasive

d.   informative

e.   reminder

An ad for Allegra allergy medicine highlights the competitive advantage of Allegra over its primary competitors Benadryl, Tylenol, and Chlor-Trimeton.  This is ad is an example of __________ advertising.

a.   reinforcement

b.   persuasive

c.   comparative

d.   informative

e.   reminder

Advertisements that reinforce previous knowledge of a product are referred to as __________ advertisements.

a.   advocacy

b.   comparative

c.   persuasive

d.   informative

e.   reminder

A reminder ad

a.   reinforces previous knowledge of a product.

b.   assures current users they made the right choice.

c.   promotes a specific brand’s features and benefits.

d.   tells people what a product is, what it can do, and where it can be found.

e.   shows one brand’s strengths relative to those of competitors.



What type of product advertisement is the Red Bull ad above?

a.   pioneering

b.   reminder

c.   reinforcement

d.   comparative

e.   competitive

The purpose of a reminder advertisement is to

a.   promote a specific brand’s features and benefits.

b.   tell people what a product is, what it can do, and where it can be found.

c.   state the position of a company on an issue.

d.   reinforce previous knowledge of a product.

e.   promote the advantages of one product class over another.

Reminder advertisements are especially effective for products in which stage of their product life cycle?

a.   introductory

b.   harvest

c.   mature

d.   growth

e.   decline



The M&Ms ad shown above is an example of which type of advertising?

a.   reminder

b.   competitive

c.   pioneering

d.   institutional

e.   differentiation

An ad for Campbell’s soup reads, “We haven’t changed that great taste your family’s always loved.”  This is an example of __________ advertising.

a.   advocacy

b.   comparative

c.   persuasive

d.   informative

e.   reminder

An FTD ad shows a woman holding a very large vase of flowers.  The background is red and the only text in the ad is “Mother’s Day.”  What type of ad is this?

a.   special occasion

b.   subliminal

c.   reminder

d.   pioneering

e.   comparative

Reinforcement ads are reminder ads that

a.   assure current users they made the correct choice in choosing the product.

b.   reinforce previous knowledge of a product.

c.   repeat ad campaigns that have been used before in order to remind consumers of how good the ads were.

d.   reaffirm a company’s position on an issue of importance or interest.

e.   reassure the company it has made the right choice in advertising the product.

A reinforcement ad

a.   reinforces previous knowledge of a product.

b.   assures current users they made the right choice.

c.   promotes a specific brand’s features and benefits.

d.   tells people what a product is, what it can do, and where it can be found.

e.   shows one brand’s strengths relative to those of competitors.

Advertisements designed to build goodwill or an image for an organization rather than promote a specific product or service are referred to as __________ advertisements.

a.   product

b.   public service

c.   institutional

d.   reminder

e.   repositioning

The objective of institutional advertisements is to __________ rather than promote a specific product or service.

a.   generate support for nonprofit organizations

b.   increase frequency of purchases of new products

c.   tout the competitive advantages of one industry over another

d.   build goodwill or an image for an organization

e.   promote alternative uses for a product class

__________ advertising is often used to support the public relations plan or counter adverse publicity.

a.   Institutional

b.   Reminder

c.   Competitive

d.   Pioneering

e.   Objective

There are four commonly-used forms of institutional advertising: __________, pioneering, competitive, and reminder.

a.   sustainable

b.   persuasive

c.   philanthropic

d.   informational

e.   advocacy

There are four commonly used forms of institutional advertising: advocacy, __________, competitive, and reminder.

a.   differentiation

b.   pioneering

c.   persuasive

d.   philanthropic

e.   informational

There are four commonly used forms of institutional advertising: advocacy, pioneering, __________, and reminder.

a.   differentiation

b.   philanthropic

c.   persuasive

d.   competitive

e.   informational

There are four commonly used forms of institutional advertising: advocacy, pioneering, competitive, and __________.

a.   sustainable

b.   philanthropic

c.   reminder

d.   persuasive

e.   informational

The purpose of an advocacy advertisement is to

a.   promote a specific brand's features and benefits.

b.   tell people what a company is, what it can do, and where it is located.

c.   state the position of a company on an issue.

d.   reinforce previous knowledge of a product.

e.   promote the advantages of one product class over another.



When Chevron places ads like the one shown above, it conveys its position of supporting renewable energy despite the public perception of  its role in the energy shortage.  Which type of advertising is Chevron using?

a.   reminder

b.   competitive

c.   pioneering

d.   advocacy

e.   objective

When the Lorillard Tobacco Company places ads discouraging teenagers from smoking, the firm is using which type of advertising?

a.   pioneering

b.   competitive

c.   reminder

d.   comparative

e.   advocacy

Advertisements that state the position of a company on an issue, such as the ads sponsored by the Miller Brewing Company encouraging the responsible use of alcohol, are __________ advertisements.

a.   advocacy

b.   pioneering

c.   competitive

d.   reminder

e.   political

The purpose of pioneering institutional advertisements is to

a.   promote a specific brand’s features and benefits.

b.   inform people what a company is, what it can do, and where it is located.

c.   state the position of a company on an issue.

d.   reinforce previous knowledge of a product.

e.   promote the advantages of one product class over another.

An advertisement that informs people what a company is, what it can do, and where it is located is referred to as a(n)

a.   competitive institutional advertisement.

b.   competitive product advertisement.

c.   reminder institutional advertisement.

d.   advocacy institutional advertisement.

e.   pioneering institutional advertisement.

Recent Bayer ads stating, “We cure more headaches than you think,” are intended to inform consumers that the company produces many products in addition to aspirin.  What type of ad is this?

a.   pioneering institutional advertisement

b.   competitive institutional advertisement

c.   advocacy institutional advertisement

d.   reminder institutional advertisement

e.   subliminal institutional advertisement

When Philip Morris changed its name to Altria, it ran __________institutional ads to inform consumers.

a.   competitive

b.   advocacy

c.   pioneering

d.   reminder

e.   stakeholder

An ad for an international consulting firm was intended to communicate the company’s philosophy—that you can be big and nimble at the same time—rather than sell any one particular service the company provides.  The ad is an example of __________ institutional advertising.

a.   competitive

b.   pioneering

c.   advocacy

d.   reminder

e.   political

The purpose of competitive institutional advertisements is to

a.   promote a specific brand’s features and benefits.

b.   tell people what a company is, what it can do, and where it is located..

c.   state the position of a company on an issue.

d.   reinforce previous knowledge of a product.

e.   promote the advantages of one product class over another.

America’s dairy farmers and milk processors use their “Got Milk?” campaign to increase demand for milk relative to other beverages.  This campaign is an example of a __________ campaign.

a.   competitive institutional

b.   competitive product

c.   advocacy

d.   pioneering product

e.   pioneering institutional



The “Got Milk?” ad shown above is an example of which type of advertising?

a.   reminder institutional

b.   competitive institutional

c.   pioneering institutional

d.   product advocacy

e.   product differentiation

The Florida Department of Citrus developed the “To Your Health” campaign to show the benefits of orange juice.  The goal of these ads is to increase demand for orange juice as compared to  other beverages.  This is an example of a __________ advertisement.

a.   competitive product

b.   product advocacy

c.   competitive institutional

d.   pioneering product

e.   pioneering institutional

The Beef Council promotes a series of ads in which the tag line is “Beef—it’s what’s for dinner.”  The purpose of these ads is to encourage the audience to eat more beef.  This type of ad is a(n) _____________.

a.   reminder institutional ad

b.   pioneering institutional ad

c.   product institutional ad

d.   competitive institutional ad

e.   advocacy ad

The purpose of  reminder institutional advertisements is to

a.   promote a specific brand’s features and benefits.

b.   tell people what a company is, what it can do, and where it is located.

c.   state the position of a company on an issue.

d.   bring the company’s name to the attention of the target market again.

e.   promote the advantages of one product class over another.



The U.S. Army ad shown above is an example of a(n) __________ advertisement.

a.   reminder institutional

b.   competitive institutional

c.   pioneering institutional

d.   advocacy

e.   subliminal institutional

An ad for Mercedes Benz cars showed a heart-shaped box of chocolates with one of the chocolates topped with the well-recognized Mercedes logo.  There was no mention of the company name or sign of a product in the ad.  This ad was an example of __________ advertising.

a.   competitive institutional

b.   competitive product

c.   advocacy

d.   pioneering product

e.   reminder institutional

The first decision in developing an advertising program is to

a.   set the budget.

b.   state its mission.

c.   identify the target audience.

d.   select the appeal.

e.   select the media.

When developing the advertising program, specifying __________ helps advertisers with other choices in the process such as selecting media and evaluating a campaign.

a.   product or service features

b.   time constraints

c.   pricing constraints

d.   target audiences

e.   advertising objectives

When developing the advertising program, specifying the advertising objectives helps advertisers with other choices in the process such as selecting media and __________.

a.   identifying the target audience

b.   evaluating a campaign

c.   designing the advertising

d.   pretesting the advertising

e.   scheduling the advertising program

In 1990, a 30-second ad during the Super Bowl cost $700,000.  By 2011, the cost had soared to $3 million for a 30-second spot.  The MOST LIKELY reason for the escalating cost is that

a.   the number of TV viewers for the Super Bowl is growing.

b.   the ads are much more elaborate.

c.   the NFL knows advertisers will pay more.

d.   the ad agencies have dramatically increased their fees.

e.   the companies that create Super Bowl ads do not have to run any other ads all year long.

Pepsi’s Super Bowl ads generated a __________ increase in its Facebook “likes.”

a.   7%

b.   37%

c.   67%

d.   97%

e.   100%

During a visit to superbowl-ads.com, you will find

a.   the worst Super Bowl TV ads ever made.

b.   a rating of advertising agencies that produced ads for recent Super Bowls.

c.   the ads that ran during the last 14 Super Bowls.

d.   a look at how Super Bowl TV ads are made.

e.   ads that never aired during a Super Bowl.

An advertising message usually focuses on the  __________that is/are important to a prospective buyer in making trial and adoption decisions.

a.   emotional aspects

b.   price

c.   psychological aspects

d.   financial risks

e.   key benefits of the product

Most advertising messages are made up of two elements, which are

a.   expository and persuasional.

b.   informational and persuasional.

c.   informational and creative.

d.   functional and persuasional.

e.   creative and expository.

Information and persuasive content are commonly combined to form

a.   sex, fear, and humor appeals.

b.   guilt, financial risk, and self-esteem appeals.

c.   sex, fear, and self-worth appeals.

d.   demographic, psychographic, and lifestyle appeals.

e.   gender, ethnicity, and reference group appeals.

The type of appeal used to suggest to the consumer that he or she can avoid some negative experience through the purchase and use of a product or service, a change in behavior, or a reduction in the use of a product is referred to as a(n) _________.

a.   authoritarian appeal

b.   coercive appeal

c.   family appeal

d.   guilt appeal

e.   fear appeal

Which of the following is an important guideline provided in the text for using a fear appeal?

a.   Make sure the advertisement is still appropriate for viewing by children.

b.   Make the appeal so strong that it appears humorous.

c.   Don't make the appeal so strong that consumers want to “tune out” the advertisement.

d.   Avoid any reference to death or dying.

e.   Make sure to emphasize that the outcome rests in the viewers’ hands.



The World Wide Fund for Nature ad shown above is an example of which type of appeal?

a.   reminder

b.   fear

c.   sex

d.   advocacy

e.   guilt

A testimonial ad for a carbon monoxide detector features parents who are discussing the dangers of CO2 poisoning.  In the ad, the homeowners tell the target audience how purchasing and using the advertised product can avert disaster.  Such advertisements use _________.

a.   compassionate appeals

b.   guilt appeals

c.   family appeals

d.   fear appeals

e.   coercive appeals

Life insurance companies like Prudential attempt to appeal to a person’s sense of “Don’t wait until it’s too late.”  The purpose of these ads is to convince an individual that his or her loved ones won’t be able to provide for themselves once he/she is dead. Because of the consequences of dying without insurance are so grim, the insurance company urges viewers to act before it’s too late.   This is an example of a _________.

a.   fear appeal

b.   rhetorical appeal

c.   life cycle appeal

d.   humorous appeal

e.   security appeal

A political ad that incorporates a fear appeal would MOST likely be expressed as

a.   religious repercussions after death.

b.   disenfranchisement from mainstream society.

c.   a lack of patriotic responsibility.

d.   a lack of self-respect or self-worth.

e.   warnings against the rise of other unpopular ideologies.

When the office of National Drug Control Policy ran an ad with the headline, “Marijuana Harmless?  Didn’t see merging truck.” it was using which type of ad appeal?

a.   humor

b.   fear

c.   sex

d.   nostalgic

e.   guilt

An ad for Conseco Insurance asks the question, “How long will you wait to start planning for long-term care?”  The ad shows an elderly women being assisted by a nurse as she tries to win money on a game show.  The idea that she will not have the care she needs because she failed to plan her finances for the future when she was younger is an example of a __________.

a.   rhetorical appeal

b.   baby boomer appeal

c.   humorous appeal

d.   fear appeal

e.   security appeal

The type of appeal used to suggest to the audience that the product will increase the attractiveness of the user is referred to as a(n) _________.

a.   authoritarian appeal

b.   coercive appeal

c.   family appeal

d.   fear appeal

e.   sex appeal

Which of the following statements describes a potential problem with using sex appeals in advertising?

a.   What men find sexy, most women do not.

b.   What women find sexy, most men do not.

c.   Sex in advertising typically appeals to only younger audiences.

d.   An ad using sex appeal does not always lead to changes in recall, recognition, or purchase intent.

e.   Sex in advertising alienates a large segment of the conservative right.

While many commercials that use sex appeals gain the attention of the audience, they

a.   do not always lead to changes in consumers’ recall, recognition, or purchase intent.

b.   contain no information to help consumers.

c.   do not appeal to either men or women.

d.   wear out quickly, boring the consumer.

e.   don’t appeal to the Generation Y target audience.



The Candie’s ad shown above is an example of which type of appeal?

a.   reminder

b.   fear

c.   sex

d.   advocacy

e.   guilt

When Bebe, a contemporary women’s clothing store, uses evocative imagery in its advertising, it is using which type of advertising appeal?

a.   reminder

b.   fear

c.   sex

d.   guilt

e.   self-esteem

An ad for Hydrozycut, an advanced weight loss formula by GNC, shows a beautiful woman who claims that she lost “an incredible 23 pounds.”  This ad is using a(n) __________.

a.   rhetorical appeal

b.   sex appeal

c.   humorous appeal

d.   appeal to self-esteem

e.   fear appeal

Frequency refers to

a.   the number of different advertisements, sales promotions, or publicity events in an IMC campaign for a product or service.

b.   the total number of times an advertisement is aired on television or radio.

c.   the average number of times a firm airs an advertisement.

d.   the number of times an advertisement can be shown before it begins to lose its effectiveness.

e.   the average number of times a person in the target audience is exposed to an advertisement.

The average number of times a person in the target audience is exposed to an advertisement is referred to as __________.

a.   the exposure rate

b.   GRPs

c.   frequency

d.   the hit rate

e.   CPM

Because consumers often do not pay close attention to advertising messages, advertisers want to reach the same audience more than once.  The average number of times a person in the target audience is exposed to a message or advertisement is referred to as

a.   frequency.

b.   CPM.

c.   reach.

d.   rating.

e.   gross rating points.

The owners of a small toy store with a limited advertising budget were very concerned about spending their advertising dollars wisely.  One of their primary advertising goals was to expose customers in a limited market area to their advertising messages as often as possible.  The owners of the toy store were concerned with

a.   reach.

b.   frequency.

c.   gross rating points.

d.   cost per thousand.

e.   ratings.

Gross rating points (GRPs) are determined by the formula

a.   reach multiplied by frequency.

b.   reach multiplied by rating.

c.   rating multiplied by frequency.

d.   cost divided by reach.

e.   cost divided by frequency.

With respect to advertising, CPM is defined as

a.   the cost of one medium relative to the costs of other media (e.g. direct mail versus television, radio, or outdoor), each of which is divided by the multiple of their respective reach and frequency.

b.   the reach multiplied by frequency divided by the cost of reaching 1,000 individuals or households.

c.   the cost of reaching 1,000 individuals or households with the advertising message in a given medium.

d.   the cost per minute of television or radio airtime.

e.   the number of consumers exposed to an advertising message, in thousands.

The cost of reaching 1,000 individuals or households with the advertising message in a given medium is referred to as

a.   GRP

b.   CPA

c.   TMP

d.   CPM

e.   M

One of the most common measures in advertising is

a.   cost per thousand impressions.

b.   cost per thousand occurrences.

c.   cost per thousand incidences.

d.   cost per million impressions

e.   cost per thousand frequencies.

One of the most common measures in advertising is cost per thousand impressions (CPM). The CPM is calculated as follows:

a.   CPM = Advertising cost ($) ÷ Impressions generated (in 100s).

b.   CPM = Total revenue ($) ÷ Impressions generated in 1,000s).

c.   CPM = Total profit ($) ÷ Impressions generated (in 1,000s).

d.   CPM = Advertising cost ($) ÷ Impressions generated (in 1,000s).

e.   CPM = Advertising cost ($) ÷ Impressions generated (in 1,000,000s).

If you ordered a TV commercial to run on a local TV station that could reach 500,000 households for a cost of $1,000, what would your CPM be?

a.   $5.00

b.   $4.00

c.   $3.00

d.   $2.00

e.   $1.00



According to the CPM Marketing Dashboard above, the CPM for Bloomberg Businessweek would be approximately

a.   $11.

b.   $27.

c.   $119.

d.   $155.

e.   $224.

According to the CPM Marketing Dashboard above, the CPM for USA Today would be approximately

a.   $19.

b.   $30.

c.   $57.

d.   $88.

e.   $119.

According to the CPM Marketing Dashboard above, the CPM for the Super Bowl would be approximately

a.   $11.

b.   $27.

c.   $119.

d.   $155.

e.   $224.

Suppose the following information: The cost of a full-page color ad in the U.S. national edition of The Wall Street Journal (newspaper) is $312,286 and its U.S. audience size is 1,613,062. The cost of a full-page color ad in the U.S. national edition Sports Illustrated (magazine) is $238,000 and has an audience size of 3,150,000.  The cost of a 30-second ad on the most recent Super Bowl (television) is $3,250,000 and has an audience size of 112,500,000.  Using this information, which of the following is the most appropriate metric to use to determine which medium would provide the most efficient use of your limited resources?

a.   reach

b.   frequency

c.   CPM

d.   rating

e.   GRP

Suppose the following: The cost of a full-page color ad in the U.S. national edition of The Wall Street Journal (newspaper) is $312,286 and its U.S. audience size is 1,613,062.  The cost of a full-page color ad in the U.S. national edition of USA Today (newspaper) is $207,720 and its U.S. audience size is 1,778,934.  The cost of a full-page color ad in the U.S. national edition Bloomberg Businessweek (magazine) is $156,900 and has an audience size of 980,000.  The cost of a full-page color ad in the U.S. national edition Sports Illustrated (magazine) is $238,000 and has an audience size of 3,150,000.  The cost of a 30-second ad on the most recent Super Bowl (television) is $3,250,000 and has an audience size of 112,500,000.  Using this information, which has the LOWEST CPM of the five alternatives?

a.   The Wall Street Journal

b.   USA Today

c.   Bloomberg Businessweek

d.   Sports Illustrated

e.   Super Bowl

Suppose the following: The cost of a full-page color ad in the U.S. national edition of The Wall Street Journal (newspaper) is $312,286 and its U.S. audience size is 1,613,062.  The cost of a full-page color ad in the U.S. national edition of USA Today (newspaper) is $207,720 and its U.S. audience size is 1,778,934.  The cost of a full-page color ad in the U.S. national edition Bloomberg Businessweek (magazine) is $156,900 and has an audience size of 980,000.  The cost of a full-page color ad in the U.S. national edition Sports Illustrated (magazine) is $238,000 and has an audience size of 3,150,000.  The cost of a 30-second ad on the most recent Super Bowl (television) is $3,250,000 and has an audience size of 112,500,000.  Using this information, which has the HIGHEST CPM of the five alternatives?

a.   The Wall Street Journal

b.   USA Today

c.   Bloomberg Businessweek

d.   Sports Illustrated

e.   Super Bowl

One of the advantages associated with television as an advertising medium is that it

a.   has a short exposure time.

b.   can reach extremely large audiences.

c.   is a low-cost medium.

d.   has an unlimited amount of advertising time available.

e.   can be used to convey complex messages.

One of the advantages associated with television as an advertising medium is that it

a.   has a short exposure time.

b.   is a low-cost medium.

c.   as an unlimited amount of advertising time available.

d.   can be used to convey complex messages.

e.   can use pictures, print, sound, and motion.

One of the advantages associated with television as an advertising medium is that it

a.   is a low-cost medium.

b.   has a short exposure time.

c.   can target specific audiences.

d.   has an unlimited amount of advertising time available.

e.   can be used to convey complex messages.

All of the following statements are true about the changing aspects of television as an advertising medium EXCEPT:

a.   a growing number  of households have game consoles or DVRs.

b.   many households have dropped their cable or satellite subscriptions and view limited programming on alternative options such as YouTube, Hulu, Netflix, and other Internet or streamed video services.

c.   industry experts also predict that more than 100 million 3-D televisions will be sold by 2014.

d.   DVR manufacturers have removed the “skip” button on their remotes to limit ad-zapping in response to advertiser complaints.

e.   there are also many opportunities for out-of-home TV viewing as televisions are in many bars, hotels, offices, airports, and on college campuses.

One of the disadvantages associated with television as an advertising medium is that it

a.   has a short exposure time.

b.   cannot target specific audiences.

c.   must use print for effect.

d.   has an unlimited amount of advertising time available.

e.   is not effective for conveying simple messages.

One of the disadvantages associated with television as an advertising medium is that it

a.   cannot target specific audiences.

b.   is very expensive to prepare and run ads.

c.   must use print for effect.

d.   has an unlimited amount of advertising time available.

e.   is not effective for conveying simple messages.

One of the disadvantages associated with television as an advertising medium is that it

a.   requires a long exposure time.

b.   cannot target specific audiences.

c.   must use print for effect.

d.   cannot be used to convey complex messages.

e.   has an unlimited amount of advertising time available.

Many companies are now opting for commercial time on live events rather than programs that consumers might

a.   avoid because there are too many commercial interruptions.

b.   watch while multitasking.

c.   watch later on a DVR.

d.   believe are commercial-free.

e.   have seen previously.

When people outside the target market for the product see a firm’s advertisement, it is referred to as __________.

a.   wasted coverage

b.   media divergence

c.   dual exposure

d.   over-exposure

e.   advertising spill-over

One way TV advertising can reduce wasted coverage is to

a.   identify the target market it wishes to address within the first three seconds of the commercial so the message can be ignored by non-targeted viewers.

b.   run shorter ads in a greater number of geographical areas.

c.   identify specific times of day or night when the target audience would be more likely to tune in.

d.   develop more creative ads so that more people will choose to see them.

e.   run the ads on less expensive, narrowly focused, specialized cable and satellite channels.

Program-length (30-minute) advertisements that take an educational approach to communication with potential customers are referred to as __________.

a.   advertorials

b.   infomercials

c.   advermercials

d.   edutainment ads

e.   extended advertising messages

Infomercials refer to

a.   public service announcements used to notify local citizens of impending danger due to weather or other natural disasters.

b.   a form of advertisement whose sole purpose is to entertain.

c.   program-length (30-minute) advertisements that take an educational approach to communication with potential customers.

d.   direct-response TV and radio ads that air during the late night or weekend mornings.

e.   educationally-formatted programming that consumers order privately by using the “On Demand” button on their cable TV remote and DVR set-up box.

of the advantages associated with radio as an advertising medium is that it

a.   can target specific audiences.

b.   has a long exposure time.

c.   has a perishable message.

d.   has an unlimited amount of advertising time available.

e.   is relatively simple to convey complex messages.

One of the advantages associated with radio as an advertising medium is that it

a.   has a long exposure time.

b.   has a perishable message.

c.   has an unlimited amount of advertising time available.

d.   allows ads to be placed quickly.

e.   is relatively simple to convey complex messages.

One of the advantages associated with radio as an advertising medium is that it

a.   has a long exposure time.

b.   can target general audiences.

c.   has an unlimited amount of advertising time available.

d.   is relatively simple to convey complex messages.

e.   uses humor, sound, and intimacy effectively.

A western clothing retail store marketing vice president is developing an advertising budget using the objective and task method.  She has the objective of clearing slow-moving merchandise from her shelves and is trying to choose between radio and newspaper ads.  Which of the following is an advantage of radio relative to newspapers as a medium for achieving the objective?

a.   better reach

b.   more effective visuals

c.   ads can be saved by consumers

d.   better segmentation capability

e.   more effective in conveying complex information

One of the disadvantages associated with radio as an advertising medium is that it

a.   has a long exposure time.

b.   cannot target specific audiences.

c.   has a perishable message.

d.   cannot use humor, sound, and intimacy effectively.

e.   has an unlimited amount of advertising time available.

One of the disadvantages associated with radio as an advertising medium is that it

a.   has a short exposure time.

b.   cannot target specific audiences.

c.   cannot use humor, sound, and intimacy effectively.

d.   has a very limited amount of advertising time available.

e.   is easy to convey complex messages.

One of the disadvantages associated with radio as an advertising medium is that it

a.   has a long exposure time.

b.   can target specific audiences.

c.   uses humor, sound, and intimacy effectively.

d.   has an unlimited amount of advertising time available.

e.   is difficult to convey complex messages.

All of the following statements are true about magazines EXCEPT:

a.   the magazine with the highest circulation is AARP The Magazine.

b.   consumer interests can be difficult to translate into a magazine theme, resulting in many magazine failures each year.

c.   national publications publish regional and even metro editions to reduce wasted coverage.

d.   most magazines are dropping their print formats to offer only online versions that can be viewed on iPads and other tablet devices and smartphones.

e.   Time magazine publishes both geographic and demographic editions in the U.S.

One advantage of using magazines as an advertising medium is

a.   the ability to target specific audiences.

b.   the relatively short time it takes to place an ad.

c.   the extremely low cost.

d.   the opportunity to compete with other magazine features.

e.   the simplicity of the message.

One advantage of using magazines as an advertising medium is

a.   the relatively short time it takes to place an ad.

b.   high-quality color is available if needed or desired.

c.   the cost of placing a magazine ad is extremely low.

d.   the ease of translating consumer interests into a successful publication.

e.   there is little need or benefit to incorporate four-color graphics.

Which of the following is an advantage of using magazines as an advertising medium?

a.   a magazine ad has a long life

b.   it takes a relatively short time to place the ad

c.   the cost of placing a magazine ad is extremely low

d.   it is easy to translate consumer interests into a successful publication

e.   there is little need or benefit to incorporate four-color graphics

One advantage of using magazines as an advertising medium is

a.   the cost of placing a magazine ad is extremely low.

b.   it takes a relatively short time to place the ad.

c.   the ads can be clipped and saved.

d.   the ease of translating consumer interests into a successful publication.

e.   there is little need or benefit to incorporate four-color graphics.

One advantage of using magazines as an advertising medium is

a.   it takes a relatively short time to place the ad.

b.   there is little need or benefit to incorporate four-color graphics.

c.   there is little noise in the communications process.

d.   many are available as digital versions of their print counterparts.

e.   the cost of placing a magazine ad is extremely low.

One disadvantage of using magazines as an advertising medium is

a.   the inability to target specific audiences.

b.   the long lead-time needed to place an ad.

c.   the extremely low cost.

d.   the trend to create sex or humor appeals often dilutes the effectiveness of the message.

e.   the lack of noise associated with their use in the communication channel.

One disadvantage of using magazines as an advertising medium is

a.   the inability to target specific audiences.

b.   the short lead-time needed to place an ad.

c.   the relatively high cost.

d.   the lack of noise associated with the use of magazines in the communication channel.

e.   the trend to create sex or humor appeals often dilutes the effectiveness of the message.

One disadvantage of using magazines as an advertising medium is

a.   the inability to target specific audiences.

b.   the short lead-time needed to place an ad.

c.   the lack of noise associated with the use of magazines in the communication channel.

d.   the infrequent nature of their publication.

e.   there is little opportunity to tie in magazine advertisements with rest of an ad campaign.

Recent studies comparing advertising in different media suggest that magazine advertising

a.   takes a relatively short time to read.

b.   incorporates four-color graphics too frequently.

c.   usually has little competition with other media features.

d.   is quickly replacing television advertising.

e.   is perceived to be more trustworthy, inspirational, and engaging than other media.

Trice Jewelers is a high-end independent jeweler located in Milwaukee.  It specializes in custom jewelry and has been in business for decades.  Which medium would be the best for Trice to use to reach potential customers with colorful long-lasting images and remind them that Trice is the source for all their gift-giving needs?

a.   prime time national television

b.   magazines targeted toward wealthy residents of Milwaukee

c.   radio stations that target millennials

d.   flyers sent to all the Milwaukee zip codes

e.   Milwaukee regional newspapers

All of the following statements are true about newspapers EXCEPT:

a.   many newspapers are adding complementary digital versions that can be viewed on tablet devices and smartphones.

b.   newspapers are generally limited to ads that call for an immediate customer response.

c.   readers of news-oriented content are moving toward free websites and mobile services.

d.   most newspapers have recently experienced a surge in both circulation and advertising revenue.

e.   newspapers are an important local medium with excellent reach potential.

One advantage of using newspapers as an advertising medium is

a.   their ability to cover local markets.

b.   the long lead time for placing an ad.

c.   the long life span.

d.   the relatively high cost.

e.   competition for reader attention with other features in the newspaper.

One advantage of using newspapers as an advertising medium is

a.   the ability to cover national markets.

b.   the short lead time for placing an ad.

c.   excellent color graphics.

d.   minimum distraction from other features.

e.   the extended life span.

One advantage of using newspapers as an advertising medium is

a.   their long life span.

b.   the excellent use of color graphics.

c.   ads can be clipped and saved.

d.   quick consumer response.

e.   limited distraction from other features.

One advantage of using newspapers as an advertising medium is their

a.   ability to cover national markets.

b.   excellent use of color graphics.

c.   quick consumer response.

d.   relatively high cost.

e.   limited distraction from other features.

One disadvantage of using newspapers as an advertising medium is

a.   their inability to cover local markets.

b.   readers damage the newspaper when clipping its ads.

c.   their short life span.

d.   the high cost of ads.

e.   their quick consumer response.

One disadvantage of using newspapers as an advertising medium is their __________.

a.   relatively poor color reproduction

b.   inability to cover local markets

c.   long lead time for placing an ad

d.   relatively high cost

e.   lack of noise during the communication process

One disadvantage of using newspapers as an advertising medium is their

a.   inability to cover local markets.

b.   long lead time for placing an ad.

c.   long life span.

d.   relatively high cost.

e.   competition for reader attention with other features in the newspaper.   

National advertising campaigns rarely include newspapers unless in conjunction with local distributors of their products.  Exceptions to this would be national daily print versions of __________.

a.   The National Enquirer and The National Review

b.   The Wall Street Journal and USA Today

c.   The Trader and The National Enquirer

d.   The New York Times and the Washington Post

e.   The Christian Science Monitor and The Huffington Post

The Wall Street Journal and USA Today each have a national distribution of more than

a.   500,000 readers.

b.   1 million readers.

c.   2 million readers.

d.   5 million readers.

e.   10 million readers.

Which of the following is a trend that influences newspapers today?

a.   Newspapers are enjoying increasing circulation.

b.   Newspapers are increasing the number of printed pages.

c.   There is a growth in new types of news organizations.

d.   More cities are increasing the number of newspapers that are available.

e.   Cheaper newsstand prices have rekindled an interest in newspapers.

Which of the following is a trend that influences newspapers today?

a.   There is a growth in online newspapers.

b.   Newspapers are enjoying increasing circulation.

c.   Newspapers are increasing the number of printed pages.

d.   More cities are increasing the number of newspapers that are available.

e.   Cheaper newsstand prices have rekindled an interest in newspapers.

One advantage of using the yellow pages as an advertising medium is

a.   the short life span.

b.   they are used more than 150 billion times annually.

c.   the print pages are quicker and easier to use than the Internet.

d.   they are more mobile than other information sources.

e.   they are available 24/7/365.

One advantage of using the yellow pages as an advertising medium is

a.   there is no competition.

b.   the print pages are quicker and easier to use than the Internet.

c.   they are more mobile than other information sources.

d.   they have excellent coverage of geographic segments.

e.   there are no delivery costs.

One advantage of using the yellow pages as an advertising medium is

a.   there is no competition.

b.   the print pages are quicker and easier to use than the Internet.

c.   they have a long life span.

d.   they are more mobile than other information sources.

e.   there are no delivery costs.

One disadvantage of using the yellow pages as an advertising medium is

a.   the proliferation of directories in many cities.

b.   they have extensive accountability and ROI metrics.

c.   the ads are perishable.

d.   few households with telephones have them.

e.   advertisers must create extensive databases for delivery.

One disadvantage of using the yellow pages as an advertising medium is

a.   there is no similar competition.

b.   they are difficult to keep up to date.

c.   the ads are perishable.

d.   few households with telephones have them.

e.   advertisers must create extensive databases for delivery.

One disadvantage of using the yellow pages as an advertising medium is

a.   there is no similar competition.

b.   they are facing increasing public concern about the environmental impact of their paper-based print versions.

c.   the ads are perishable.

d.   few households with telephones have them.

e.   advertisers must create extensive databases for delivery .

Yellow pages publishers are facing increasing public concern about

a.   the competition among directories.

b.   the lack of online yellow pages.

c.   the difficulty of keeping the ads up-to-date.

d.   privacy.

e.   the environmental impact of the directories.

One advantage of using the Internet as an advertising medium is

a.   it is similar to print advertising since it offers a visual message.

b.   there is no need to segment markets.

c.   messages are automatically translated into multiple languages.

d.   initial encoding is easily outsourced.

e.   it is relatively simple to run national online campaign across multiple sites.

One advantage of using the Internet as an advertising medium is

a.   there is no need to segment markets.

b.   it has video and audio capabilities similar to television.

c.   initial encoding is easily outsourced.

d.   online ads almost always result in a “click,” an action that leads to the purchasing of a product.

e.   messages are automatically translated into multiple languages.

One advantage of using the Internet as an advertising medium is

a.   there is no need to segment markets.

b.   messages are automatically translated into multiple languages.

c.   Internet advertising can use rich media to create interactive ads.

d.   initial encoding is easily outsourced.

e.   online ads almost always result in a “click,” an action that leads to the purchasing of a product.

One advantage of using the Internet as an advertising medium is

a.   there is no need to segment markets.

b.   messages are automatically translated into multiple languages.

c.   initial encoding is easily outsourced.

d.   online ads almost always result in a “click,” an action that leads to the purchasing of a product.

e.   it can use animation to capture attention.

One advantage of using the Internet as an advertising medium is

a.   there is no need to segment markets.

b.   messages are automatically translated into multiple languages.

c.   initial encoding is easily outsourced.

d.   there are a variety of online advertising options.

e.   online ads almost always result in a “click,” an action that leads to the purchasing of a product.

One disadvantage of using the Internet as an advertising medium is

a.   as a relatively new medium, it has attracted limited use.

b.   it is difficult to translate messages that can be used in social media networks like Facebook and Twitter.

c.   the medium is new so standards for various formats are still evolving.

d.   it often creates more traffic than a firm can actually handle.

e.   pay-per-click search ads on Google are expensive and ineffective.

One disadvantage of using the Internet as an advertising medium is

a.   as a relatively new medium, it has attracted limited use.

b.   pay-per-click search ads on Google are expensive and ineffective.

c.   it is difficult to translate messages that can be used in social media networks like Facebook and Twitter.

d.   it often creates more traffic than a firm can actually handle.

e.   animation can require a long download time.

One disadvantage of using the Internet as an advertising medium is

a.   as a relatively new medium, it has attracted limited use.

b.   the click-through rate has been declining because consumers are developing “banner blindness.”

c.   pay-per-click search ads on Google are expensive and ineffective.

d.   it is difficult to translate messages that can be used in social media networks like Facebook and Twitter.

e.   it often creates more traffic than a firm can actually handle.

Interactive ads that have drop-down menus, built-in games, or search engines to engage viewers are referred to as __________.

a.   rich media

b.   banner ads

c.   interactive media

d.   pay-per-click ads

e.   infotainment ads

There are a variety of online advertising options.  The most popular are:

a.   free search, classifieds, interactives, and interstitials.

b.   free search, banner ads, spamming, and video.

c.   wikis, RSS feeds, interstitials, and cookies.

d.   paid search, banner ads, classified ads, and video.

e.   pop-ups, paid search, streaming video, and spamming.

The fastest growing form of Internet advertising is __________.

a.   interstitials

b.   rich media

c.   paid search

d.   spam

e.   wikis



According to Figure 18-4 above, which firm has the largest share of the Internet search market?

a.   Ask

b.   AOL

c.   Microsoft

d.   Yahoo!

e.   Google

Two of the largest portals for Internet advertising are _________ and __________.

a.   Google; AOL

b.   Google; Tubenet

c.   Google; MSN

d.   Google; Yahoo!

e.   Google; Bing

Experts estimate that consumers conduct approximately __________searches each month.

a.   17 billion

b.   23 billion

c.   39 billion

d.   68 billion

e.   92 billion

Which of the following statements about online advertising is MOST accurate?

a.   It is easier to measure the impact of online advertising than other media.

b.   Although annoying, click fraud and webtipping are not causing real financial damage.

c.   Although popular with the younger generation, few Baby Boomers order online.

d.   Standards for the various formats used online are still evolving.

e.   One way online companies benefit is through employing PTR in order to increase site traffic.

The deceptive clicking of ads solely to increase the amount advertisers must pay is referred to as

a.   deceptive advertising.

b.   click fraud.

c.   webtipping.

d.   click-theft.

e.   clickbotting.

A form of click fraud is called “PTR,” which is an acronym for

a.   Paid-to-Read.

b.   Ping-to-Read.

c.   Profit-to-Read.

d.   Place-to-Read

e.   Priced-to-Read.

Software programs called _________, are a form of click fraud where the software is used to produce automatic clicks on ads.

a.   click spiders

b.   clickbots

c.   click bangers

d.   click hammers

e.   click tippers

Click fraud can occur when legitimate website visitors click on ads without any intention of looking at the site to keep them free.  This practice is called _________.

a.   click hamming

b.   click banging

c.   clickbotting

d.   webtipping

e.   webcrawling

The most common form of outdoor advertising is/are __________.

a.   transit

b.   point-of-purchase displays

c.   billboards

d.   kiosks

e.   in-store signage

Which of the following statements regarding billboards is MOST accurate?

a.   Billboards are a good supplemental reinforcement for well-known products.

b.   Billboards are well-suited for pioneering product advertising.

c.   Contrary to popular belief, billboards are not driving hazards since they help keep drivers alert.

d.   Billboards are often too expensive for small local firms and are better suited for national campaigns.

e.   Billboards are more effective in rural areas than in metropolitan areas.

One advantage of using billboards as an advertising medium is

a.   it is environmentally friendly.

b.   it is relatively low-cost.

c.   it has universal appeal.

d.   it is  particularly suited to national campaigns.

e.   it is especially suited for pioneering product advertisements.

One advantage of using billboards as an advertising medium is

a.   it is environmentally friendly.

b.   it has universal appeal.

c.   it is  particularly suited to national campaigns.

d.   it has good reach and frequency.

e.   it is especially suited for persuasive advertisements.

One advantage of using billboards as an advertising medium is

a.   it is environmentally friendly.

b.   it has universal appeal.

c.   it is  particularly suited to national campaigns.

d.   it is especially suited for persuasive advertisements.

e.   it has high visibility.   

Which of the following statements regarding billboards is MOST accurate?

a.   Billboards offer opportunities for lengthy advertising copy.

b.   Billboards are not a good supplemental reinforcement for well-known products.

c.   Billboards are well-suited for pioneering advertising.

d.   Billboard sites depend on traffic patterns and sight lines.

e.   Billboards are often too expensive for small local firms and are better suited for national campaigns.

Messages on the interior and exterior of buses, subway cars, and taxis are referred to as

a.   transportation messages.

b.   public service announcements.

c.   transit advertising.

d.   public advertising.

e.   transport advertising.

Which of the following statements regarding transit advertising is MOST accurate?

a.   Transit advertising is well-suited for pioneering advertising.

b.   Heavy travel times, when audiences are the largest,  are not conducive to reading transit advertising copy.

c.   Selectivity in transit advertising is unavailable to advertisers who want to buy space by neighborhood or bus route.

d.   Transit advertising is creating safety hazards as people are busy reading the copy and not paying attention to the own well-being.

e.   Transit advertising is highly selective of target audience when used on regular transit routes.

Buses in some cities are often completely painted as an ad for a particular product.  The entire bus may be purple, orange, or lime green with the message painted on screens that cover the windows as well as the body of the bus.  These ads are examples of __________.

a.   transit advertising

b.   mobile advertising

c.   motorized billboards

d.   mobile signage

e.   transportation advertising

The type of appeal used to imply either directly or subtly that the product is more fun or more exciting than competitors’ offerings is referred to as a(n) _________.

a.   authoritarian appeal

b.   coercive appeal

c.   family appeal

d.   humorous appeal

e.   sex appeal

Geico ads that feature cavemen, a gecko, or a stack of money with eyes are using which type of advertising appeal?

a.   reminder

b.   fear

c.   humor

d.   sex

e.   cognitive

While many commercials that use humorous appeals gain the attention of the audience, they

a.   are effective across cultures when used in a global campaign.

b.   contain no information to help consumers.

c.   do not appeal to either men or women.

d.   wear out quickly, boring the consumer.

e.   don’t appeal to the Generation Y target audience.



The Geico ad shown  above is an example of which type of appeal?

a.   reminder

b.   fear

c.   sex

d.   cognitive

e.   humor

According to the American Cancer Society, 57,000 Americans a year die from colon cancer.  Regular screening is recommended after age 50.    Because colonoscopies are dreaded by many, the American Cancer Society created an ad campaign featuring “Mr. Polyp Man” to lightheartedly encourage people to get tested for colon cancer. The red-suited character looks  like a harmless, animated M&M.  This is an example of a _________ appeal.

a.   humorous

b.   cognitive

c.   rhetorical

d.   fear

e.   sex

The use of Charles Barkley in Nike commercials rather than unknown actors is an example of a very popular form of advertising today—the use of __________.

a.   a reference group appeal

b.   snob appeals

c.   a peer spokesperson

d.   a sex appeal

e.   a celebrity spokesperson

The use of deceased celebrities such as John Wayne or Fred Astaire in commercials

a.   creates a humorous appeal.

b.   avoids the possibility of a spokesperson’s image changing.

c.   creates a fear appeal.

d.   creates a product ambiance that limits its appeal to older consumers.

e.   targets the Gen Y consumer.

Olympic swimmer Michael Phelps lost an endorsement contract with Kellogg’s after he

a.   filled his kitchen with Post cereal products.

b.   changed his mind about appearing in ads.

c.   received negative public attention.

d.   gained too much weight.

e.   lost a race.

Although Nutri-System and Jenny Craig diet plans often use celebrity spokespersons successfully, the companies also run a risk, especially if the celebrity

a.   is an actress who hasn’t appeared in any movies or television shows for the past five years.

b.   is a sports figure whose team doesn’t win that season.

c.   has a messy divorce or creates a newsworthy “scene.”

d.   regains all his/her lost weight.

e.   wins an award and doesn’t thank the company for the weight-loss contribution.

High-quality TV commercials typically cost about $323,000 to produce a __________ ad

a.   30-second

b.   45-second

c.   60-second

d.   90-second

e.   120-second

All of the following are shortcomings of advertising EXCEPT:

a.   compensating actors is very expensive.

b.   shooting commercials in several locations for global campaigns has increased.

c.   replacing actors with computer-generated animation is ineffective since the actors are better able to translate a copywriter’s message into fear, sex, or humorous appeal ads

d.   designing quality artwork, layout, and production for advertisements is time consuming.

e.   translating the copywriter’s ideas into an actual advertisement is a complex process.

The means by which an advertising message is communicated to the target audience is through

a.   advertising media.

b.   reach and frequency.

c.   a source.

d.   CPM.

e.   celebrity spokespeople.

The decision on media selection is related to the target audience, the type of product, the nature of the message, campaign objectives, available budget, and __________.

a.   the capabilities of the advertising agency

b.   audience preferences

c.   the costs of alternative media

d.   media spending by competitors

e.   available air time



According to Figure 18-2A above, which of the following media alternatives has the largest amount of advertising expenditures?

a.   newspapers

b.   television

c.   direct mail

d.   Internet

e.   magazines

According to Figure 18-2A above, which of the following media alternatives has the least amount of advertising expenditures?

a.   newspapers

b.   radio

c.   magazines

d.   outdoor

e.   television



With respect to Figure 18-2B above, “C” represents which media alternative that has the LARGEST amount of advertising expenditures (or “slice” of the pie chart)?

a.   newspapers

b.   radio

c.   direct mail

d.   magazine

e.   television

With respect to Figure 18-2B above, “B” represents which media alternative that has the SECOND LARGEST amount of advertising expenditures (or “slice” of the pie chart)?

a.   direct mail

b.   newspapers

c.   radio

d.   magazines

e.   television

With respect to Figure 18-2B above, __________ spending accounts for 15% of all advertising expenditures?

a.   Internet

b.   television

c.   direct mail

d.   newspaper

e.   magazine

With respect to Figure 18-2B above, __________ spending accounts for 12% of all advertising expenditures?

a.   newspaper

b.   television

c.   Internet

d.   direct mail

e.   magazine

With respect to Figure 18-2B above, the pie “slice” labeled “D,” or __________, has 8% of the total advertising expenditures.

a.   newspapers

b.   radio

c.   television

d.   direct mail

e.   magazines

With respect to Figure 18-2B above, the pie “slice” labeled “E,” or __________, has 9% of the total advertising expenditures.

a.   newspapers

b.   radio

c.   television

d.   direct mail

e.   magazines

Advertisers use a mix of media forms and vehicles to maximize the exposure of the message to the target audience while at the same time minimizing

a.   reach.

b.   frequency.

c.   costs.

d.   ratings.

e.   cost per share point.

The number of different people or households exposed to an advertisement is referred to as

a.   scope.

b.   share.

c.   CPM.

d.   rating.

e.   reach.

The owners of a small bookstore want to run an ad in their local newspaper. Their objective is to create awareness for the bookstore among the town’s consumers.  Which of the following measures should be used to compare the number of different people or households exposed to the advertisement?

a.   reach

b.   rating

c.   GRPs

d.   CPM

e.   frequency

The percentage of households in a market that are tuned to a particular television show or radio station is referred to as __________.

a.   gross rating points

b.   CPM

c.   reach

d.   rating

e.   share points

In television or radio advertising, a rating refers to

a.   the number of different people or households exposed to an advertisement.

b.   the average number of times a person in the target audience is exposed to a message or advertisement.

c.   the percentage of households in a market that are tuned to a particular television or radio station.

d.   a commonly used reference number an advertiser calculates (reach multiplied by frequency) to determine whether it has achieved its advertising objectives.

e.   the percentage points of market share a firm garners for its advertisements relative to its competitors.      

A local television station reported that one-fifth of the television households in its market were watching a special prime time movie on its TV channel during the 8:00 p.m. to 10:00 p.m. time period during the November “sweeps” period.  What would be the movie’s rating?

a.   10

b.   20

c.   30

d.   40

e.   50

 

Orlando uses a wireless system to receive advertising for flat-screen monitors mounted in its 240 buses.  These ads are examples of __________.

a.   mobile advertising

b.   place-based billboards

c.   mobile signage

d.   transit advertising

e.   transportation advertising

As traditional media have become more expensive and cluttered, advertisers have been attracted to a variety of nontraditional advertising options called place-based media or _________.

a.   out-of-home advertising

b.   invasive placements

c.   electronic advertising

d.   product placements

e.   cooperative advertising

As traditional media have become more expensive and cluttered, advertisers have been attracted to a variety of nontraditional advertising options—in airports, doctors’ offices, health clubs, or theaters, which are referred to as __________.

a.   remote media

b.   electronic advertising

c.   product placements

d.   cooperative advertising

e.   place-based media

Several hospitals placed signs on the inside door of ladies’ bathroom stalls encouraging women to seek help if they are being abused.  The signs included information and contact numbers for immediate help.  This is an example of __________.

a.   remote media

b.   social network advertising

c.   place-based media

d.   advocacy advertising

e.   cooperative advertising

There are three key factors when choosing among place-based media options for an advertising campaign: (1) __________; (2) the product’s attributes; (3) and cost.

a.   the perceived risk

b.   the sustainability of the message

c.   the reputation of the prospective media firm

d.   the media habits of the target audience

e.   the length of time required to get the message across

There are three key factors when choosing among place-based media options for an advertising campaign: (1) the media habits of the target audience; (2) the product’s attributes; and (3) __________.

a.   cost.

b.   the perceived risk.

c.   the reputation of the prospective media firm.

d.   the length of time required to get the message across.

e.   the sustainability of the message.

In terms of scheduling advertising, buyer turnover refers to

a.   the amount of time between repeat purchases for a given product.

b.   how often new buyers enter the market to buy a product.

c.   the amount of time for a buyer to enter and exit a product’s life cycle.

d.   how often a consumer will try competitive brands before becoming a brand loyal customer of the firm’s product.

e.   the ratio of repeat purchases to the number of buyers for an offering.

In terms of scheduling advertising, purchase frequency refers to

a.   the number of times a buyer tries a product before becoming a brand loyal customer of the firm’s product.

b.   the number of times a buyer purchases a product during its life cycle.

c.   how often a consumer will try competitive brands before becoming a brand loyal customer of the firm’s product.

d.   how frequently a product is purchased over a particular time period.

e.   the idea that the more frequently the product is purchased, the less advertising repetition is required.

In terms of scheduling advertising, the speed with which buyers fail to recall a brand if advertising is not seen is referred to as

a.   buyer turnover.

b.   the frequency rate.

c.   brand awareness rate.

d.   forgetting rate.

e.   recall dissipation rate.

The three approaches to setting advertising schedules are

a.   flexible, seasonal, and continuous.

b.   spontaneous, continuous, and intermittent.

c.   continuous, flighting, and pulse.

d.   daytime, primetime, and off-peak.

e.   sporadic, intermittent, and infrequent.  

A basic approach to scheduling when seasonal factors are unimportant and advertising is run at a constant or steady schedule through the year is referred to as a

a.   continuous schedule.

b.   flighting schedule.

c.   pulse schedule.

d.   relentless schedule.

e.   unceasing schedule.

Continuous scheduling would most likely be used for advertising _________.

a.   fishing rods

b.   bathing suits

c.   gardening supplies

d.   bathroom cleaners

e.   children’s toys

Periods of advertising scheduled between periods of no advertising to reflect seasonal demand, represent the __________ schedule of advertising.

a.   steady

b.   flighting

c.   dripping

d.   pulsing

e.   burst

Flighting schedules would most likely be used for advertising __________.

a.   snowboards

b.   automobiles

c.   bottled water

d.   toothpaste

e.   bathroom cleaners

A flighting schedule combined with a steady schedule because of increases in demand, heavy periods of promotion, or introduction of a new product is referred to as a __________.

a.   continuous schedule

b.   phased schedule

c.   pulse schedule

d.   turnover schedule

e.   intermittent schedule

Pulse scheduling would most likely be used for advertising __________.

a.   bathroom cleaner

b.   breakfast cereal

c.   socks

d.   motor oil

e.   long-stemmed roses

Some studies show that __________ are superior to other advertising strategies.

a.   flighting schedules

b.   continuous schedules

c.   opportunistic schedules

d.   pulsing schedules

e.   intermittent schedules

Tests conducted before an advertisement is placed in any medium to determine whether the advertisement communicates the intended message or to select among alternative versions of the advertisement are referred to as __________.

a.   posttests

b.   pretests

c.   test screenings

d.   aided recall testing

e.   sales tests

Pretests refer to

a.   tests conducted before an advertisement is placed in various media to determine which medium best reaches its intended target market.

b.   tests conducted among company personnel to determine which advertising campaign most closely matches the firm's goals and objectives.

c.   tests conducted with an advertisement for a product to prospective consumers under realistic purchase conditions to see if they will buy.

d.   tests conducted before an advertisement is placed in any medium to determine whether the advertisement communicates the intended message or to select among alternative versions of the advertisement.

e.   sample ad campaigns that are submitted by competing advertising agencies prior to receiving a formal contract for that account.

Because advertising is expensive, marketers want to be certain the advertisements they run communicate the intended message to the target audience.  In order to accomplish this communication goal, marketers conduct __________ before advertisements are placed in a medium.

a.   pretests

b.   double blind tests

c.   efficacy trials

d.   aided recall tests

e.   sales tests

In a(n) __________ test, the test ad is placed in a collection with several other ads and stories, and consumers are asked to read through the collection.  Afterward, subjects are asked for their impressions of the ads on several evaluative scales.

a.   pretest

b.   range test

c.   group test

d.   portfolio test

e.   assortment test.       

Showing ad copy to a panel of consumers and having them rate how they liked it, how much it drew their attention, and how attractive they thought it was, takes place during __________.

a.   focus groups

b.   portfolio tests

c.   jury tests

d.   theater tests

e.   performance tests

A test where consumers are invited to view new television shows or movies that also include test commercials is called the _________.

a.   sales test

b.   jury test

c.   theater test

d.   attitude test

e.   portfolio test

The most sophisticated form of pretest is the __________.

a.   portfolio test

b.   sales test

c.   attitude test

d.   theater test

e.   jury test



According to Figure 18-5 above, “A” is the definition for which type of advertising agency?

a.   a full-service agency

b.   a limited-service agency

c.   an in-house agency

d.   a multi-media agency

e.   a social media agency

According to Figure 18-5 above, “B” is the definition for which type of advertising agency?

a.   a full-service agency

b.   a limited-service agency

c.   an in-house agency

d.   a multi-media agency

e.   a social media agency

According to Figure 18-5 above, “C” is the definition for which type of advertising agency?

a.   a full-service agency

b.   a limited-service agency

c.   a multi-media agency

d.   an in-house agency

e.   a social media agency

A(n) ___________ is an advertising agency that provides the most complete range of services, including market research, media selection, copy development, artwork, and production.

a.   limited-service agency

b.   full spectrum agency

c.   multi-service agency

d.   in-house agency

e.   full-service agency

A full-service advertising agency refers to

a.   an advertising agency that not only provides a complete range of services, including market research, media selection, copy development, artwork, and production, but also has input into actual product design.

b.   an advertising agency that specializes in one aspect of the advertising process such as developing advertising copy or providing social media services.

c.   an advertising agency that provides the most complete range of services, including market research, media selection, copy development, artwork, and production.

d.   firms that are large enough to carry their own in-house advertising staff to provide  all advertising services the company needs.

e.   an organization that sets a firm’s advertising objectives, designs the market research, recommends media selection, suggests copy development and artwork, and then allows the firm to implement the recommendations in order to save the firm money.

An advertising agency that assists clients by both developing and placing advertisements may receive payment according to an incentive plan based on performance.  These plans typically pay for agency costs and a 5 to 10 percent profit, plus bonuses if specific goals are met.  This type of agency is referred to as a(n) _________.

a.   full-service agency

b.   in-house agency

c.   modified-service agency

d.   promotional firm

e.   limited-service agency

Advertising agencies that specialize in one aspect of the advertising process such as providing creative services to develop advertising copy, buying previously unpurchased media space, or providing Internet services are referred to as __________.

a.   full-service agencies

b.   in-house agencies

c.   modified-service agencies

d.   promotional firms

e.   limited-service agencies

A limited-service agency refers to

a.   an advertising agency that not only provides a complete range of services, including market research, media selection, copy development, artwork, and production, it has input into actual product design.

b.   an advertising agency that specializes in one aspect of the advertising process such as developing advertising copy or providing social media services.

c.   an advertising agency that provides the most complete range of services, including market research, media selection, copy development, artwork, and production.

d.   firms that are large enough to carry their own in-house advertising staff to provide  all advertising services the company needs.

e.   one that sets a firm’s advertising objectives, designs the market research, recommends media selection, suggests copy development and artwork, and then allows the firm to implement the recommendations in order to save the firm money.

An advertising agency that deals in creative work and is compensated by a contractual agreement for the services performed is referred to as _________.

a.   full-service agencies

b.   in-house agencies

c.   modified-service agencies

d.   limited-service agencies

e.   promotional firms

When a company uses a(n) _________, it is using its own advertising staff to provide the advertising services needed by the company.

a.   intra-firm agency

b.   promotion department

c.   in-house agency

d.   full-service agency

e.   limited-service agency

The company’s own advertising staff, which may provide full services or a limited range of services, is referred to as a(n) __________.

a.   intra-firm agency

b.   in-house agency

c.   full-service agency

d.   limited-service agency

e.   promotion department

Tests conducted after an advertisement has been shown to the target audience to determine whether an ad accomplished its intended purpose, are referred to as __________.

a.   jury testing

b.   tracking tests

c.   exposure testing

d.   posttests

e.   pretests

All of the following are examples of posttests EXCEPT:

a.   inquiry test

b.   sales test

c.   attitude test

d.   unaided recall test

e.   jury test

There are five common approaches to posttests: __________, unaided recall, attitude tests, inquiry tests, and sales tests.

a.   aided recall

b.   jury tests

c.   tracking testing

d.   performance tests

e.   comparison tests

There are five common approaches to posttests: aided recall, __________, attitude tests, inquiry tests, and sales tests.

a.   exposure tests

b.   performance tests

c.   unaided recall

d.   jury tests

e.   comparison tests

There are five common approaches to posttests: aided recall, unaided recall, __________, inquiry tests, and sales tests.

a.   exposure tests

b.   attitude tests

c.   performance tests

d.   jury tests

e.   comparison tests

There are five common approaches to posttests: aided recall, unaided recall, attitude tests, __________, and sales tests.

a.   exposure tests

b.   inquiry tests

c.   performance tests

d.   jury tests

e.   comparison tests



The Starch test shown above is an example of a(n)

a.   sales test

b.   unaided recall test

c.   aided recall test

d.   inquiry test

e.   concept test

The Starch test is a(n) __________ to determine the percentage of those who (1) remember seeing a specific magazine ad (noted), (2) saw or read any part of the ad identifying the product or brand (seen-associated), (3) read any part of the ad’s copy (read some), and (4) read at least half of the ad (read most).

a.   aided recall test

b.   attitude test

c.   prompted response test

d.   inquiry test

e.   concept test

The Starch test uses a(n) __________ to determine the percentages of those who remember seeing a specific magazine ad, who saw or read any part of the ad identifying the product or brand, who read any part of the ad’s copy, and who read at least half of the ad.

a.   attitude test

b.   prompted response test

c.   inquiry test

d.   concept test

e.   aided recall test

The Starch test uses aided recall to determine the percentage of those who: (1) __________, (2) saw or read any part of the ad identifying the product or brand, (3) read any part of the ad’s copy, and (4) read at least half of the ad.

a.   felt the ad was vague or ambiguous

b.   felt elements of the ad were inappropriate

c.   could summarize the key ad points in their own words

d.   remember seeing a specific magazine ad

e.   remembered having seen the ad before and had already tried the product

The Starch test used aided recall to determine the percentage of those (1) __________, (2) who saw or read any part of the ad identifying the product or brand, (3) who read any part of the ad’s copy, and (4) who read at least half of the ad.

a.   who remember seeing a specific magazine ad

b.   who felt the ad was vague or ambiguous

c.   who felt elements of the ad were inappropriate

d.   who could summarize the key ad points in their own words

e.   who remembered having seen the ad before and had already tried the product

The Starch test uses aided recall to determine the percentage of those who: (1) remember seeing a specific magazine ad, (2) _________, (3) read any part of the ad, and (4) read at least half of the ad.

a.   felt the ad was vague or ambiguous

b.   felt elements of the ad were inappropriate

c.   could summarize the key ad points in their own words

d.   saw or read any part of the ad identifying the product or brand

e.   remembered having seen the ad before and had already tried the product

The Starch test uses aided recall to determine the percentage of those who: (1) remember seeing a specific magazine ad; (2) __________; (3) who read any part of the ad’s copy; and (4) who read at least half of the ad.

a.   who felt the ad was vague or ambiguous

b.   who felt elements of the ad were inappropriate

c.   who saw or read any part of the ad identifying the product or brand

d.   who could summarize the key ad points in their own words

e.   who remembered having seen the ad before and had already tried the product

researcher asked Kelly, as a subscriber to Fitness magazine, which ads she remembered seeing in the most recent issue.  Then Kelly was asked questions about the content and appearance of the ads she remembered.  The researcher was using __________ to test the effectiveness of ads in the magazine.

a.   inquiry testing

b.   concept testing

c.   portfolio testing

d.   aided recall

e.   unaided recall

Which of the following statements about inquiry tests is MOST accurate?

a.   With inquiry tests, a question such as, “What ads do you remember seeing yesterday?” is asked of respondents without any other prompting to determine whether they saw or heard advertising messages.

b.   With inquiry tests, additional product information, product samples, or premiums are offered to an ad’s readers or viewers, and ads generating the most inquiries are presumed to be the most effective.

c.   Inquiry tests involve studies such as controlled experiments and consumer purchase tests.

d.   In an inquiry test, respondents are asked questions to measure changes in their attitudes after an advertising campaign, such as whether they had a more favorable attitude toward the product advertised.

e.   In an inquiry test, respondents are first shown an ad and then asked whether their previous exposure to it was through reading, viewing, or listening.

Which of the following statements about sales tests is MOST accurate?

a.   With sales tests, additional product information, product samples, or premiums are offered to an ad’s readers or viewers, and ads generating the cost inquiries are presumed to be the most effective.

b.   With sales tests, a question such as, “What ads do you remember seeing yesterday?” is asked of respondents without any other prompting to determine whether they saw or heard advertising messages.

c.   Sales tests involve studies such as controlled experiments and consumer purchase tests to measure actual purchases.

d.   In a sales test, respondents are asked questions to measure changes in their attitudes after an advertising campaign, such as whether they had a more favorable attitude toward the product advertised.

e.   In a sales test, respondents are first shown an ad and then asked whether their previous exposure to it was through reading, viewing, or listening.

Posttests that involve studies such as controlled experiments (e.g., using radio ads in one market and newspaper ads in another and comparing the results) and consumer purchase tests (measuring retail sales that result from a given advertising campaign) are examples of

a.   aided recall.

b.   unaided recall.

c.   attitude tests.

d.   sales tests.

e.   inquiry tests.

Sales promotion has become a key element of the promotional mix, which now accounts for  __________ in annual expenditures.

a.   $92 million

b.   $255 million

c.   $5 billion

d.   $25 billion

e.   $71 billion

Consumer-oriented sales promotions refer to

a.   sales tools used to support a company’s advertising and personal selling directed to ultimate consumers.

b.   promotions where charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products.

c.   methods used to get a nonpersonal, indirectly paid presentation of a company or its products.

d.   advertisements that show actual consumers using the product.

e.   sales promotions that supplement advertising and personal selling but are directed to wholesalers, retailers, or distributors.

Sales promotions used to support a company’s advertising and personal selling directed to ultimate consumers are referred to as __________.

a.   trade-oriented sales promotions

b.   manufacturers’ promotions

c.   channel promotions

d.   consumer-oriented sales promotions

e.   public service promotions

Directed to ultimate consumers, consumer-oriented sales promotions are sales tools used to support a company’s __________ and __________.

a.   advertising; public relations

b.   advertising; personal selling

c.   personal selling; public relations

d.   personal selling; direct marketing

e.   advertising; direct marketing

When preparing to go shopping after the Christmas holidays, Christy actively scans the ads in the local newspaper for coupons and contests.  While in the store, Christy also looks for free samples of new products and products she hasn’t purchased previously.  The coupons, contests, and free samples are all examples of __________.

a.   advertising

b.   publicity

c.   sales promotions

d.   personal selling

e.   direct marketing

Sales promotions that usually offer a discounted price to the consumer, which encourages trial of the product, are commonly referred to as __________.

a.   deals

b.   testers

c.   samples

d.   coupons

e.   premiums

For marketers, the primary objective of coupons is to __________.

a.   increase foot traffic in supermarkets

b.   encourage repeat purchases

c.   stimulate demand

d.   retaliate against competitor’s actions

e.   minimize brand-switching

All of the following statements are true about coupons EXCEPT:

a.   consumers delay product purchases as they wait for coupons.

b.   studies suggest that market share decreases slightly during the period immediately before coupons are distributed.

c.   Groupon, LivingSocial, and other daily couponing services is expected to explode by 2015.

d.   online coupons are growing but only account for a small percentage of total coupon redemptions.

e.   most are distributed as freestanding inserts in newspapers.

Valpak is a firm that sends consumers a package of __________ to stimulate selective demand (encourage the trial) of various products by offering them a discounted price.

a.   deals

b.   rebates

c.   samples

d.   premiums

e.   coupons

A mother handed her college-aged son a piece of paper and said, “By redeeming this you will receive 25 cents off your next purchase of Birds Eye lima beans.”  Birds Eye is using a __________ to stimulate demand for its lima beans.

a.   coupon

b.   rebate

c.   sample

d.   deal

e.   premium

Short-term price reductions commonly used to increase trial among potential customers or to retaliate against a competitor’s actions is commonly referred to as a _________.

a.   coupon

b.   deal

c.   sample

d.   premium

e.   product placement

The sign at the entrance to the men’s store reads, “Buy one shirt, get a second shirt of equal or lower value for only one dollar.”  Which type of sales promotion is the men’s store is using?

a.   a contest

b.   a premium

c.   a deal

d.   a rebate

e.   a sample

During Super Bowl weekend, Pepsi introduces a new brand of soft drink.  On that same weekend, Coca-Cola offers a  buy one, get one free promotion to make Pepsi’s new product introduction more difficult.  Which type of sales promotion is Coca-Cola using?

a.   a deal

b.   a contest

c.   a premium

d.   a rebate

e.   a sample

A promotional tool often used with consumers which consists of merchandise offered free or at a significant savings over its retail price is referred to as a

a.   deal.

b.   rebate.

c.   sample.

d.   premium.

e.   coupon.

McDonald’s offered eight collectable toys related to the FIFA World Cup for free with the purchase of a Happy Meal.  These FIFA collectibles are an example of a __________.

a.   deal

b.   rebate

c.   coupon

d.   sample

e.   premium

The radio commercial said, “Send three proofs of purchase and $3 for postage and handling to receive your monogrammed T-shirt.”  This ad was offering customers a __________.

a.   sample

b.   deal

c.   premium

d.   rebate

e.   coupon

A print ad for Allegra allergy medication offers a free purple seat cushion to all who request additional information about the drug.  This seat cushion is an example of a __________.

a.   sample

b.   deal

c.   rebate

d.   premium

e.   coupon

With the purchase of a Happy Meal, McDonald’s offered free, collectable toys that portrayed the movie characters in Rio.  These toys are an example of a __________.

a.   deal

b.   premium

c.   rebate

d.   coupon

e.   sample

When Milk-Bone dog biscuits offered a ball toy for $8.99 and two proofs of purchase, it was using a __________.

a.   deal

b.   rebate

c.   coupon

d.   sample

e.   premium

A sales promotion in which the consumer is invited to apply their skill or analytical or creative thinking to try to win a price is commonly referred to as a _________.

a.   contest

b.   challenge

c.   competition

d.   sweepstakes

e.   public relations campaign

For marketers, the primary objective of a contest is to

a.   demonstrate product use.

b.   retaliate against competitors’ actions.

c.   encourage present customers to buy more and minimize brand-switching behavior.

d.   encourage new product trial.

e.   increase consumer purchases and build business inventory.

The “Crash the Super Bowl” sales promotion sponsored by PepsiCo, where people submit a 30-second TV ad for a $1 million prize, is an example of a __________.

a.   deal

b.   sweepstakes

c.   sponsor-generated content

d.   contest

e.   loyalty program

During the Pillsbury Bake Off, thousands of people across the country compete to create the best new recipe using the sponsor’s products.  Not only does the company benefit from publicity surrounding the event and the great recipes that it can use later to increase product usage, but also there is an increase in product sales as contenders buy items to practice their new recipes.  This is an example of a very successful __________.

a.   challenge

b.   contest

c.   sweepstakes

d.   competition

e.   public relations campaign

 “Inspired by Threads—A Fashion Challenge” is a __________ run each year by Threads magazine, which is targeted toward professional clothiers and seamstresses.  Readers are encouraged to design and sew a garment and send the entry into Threads to compete with others for prizes such as sewing machines and cash.

a.   premium

b.   sweepstakes

c.   contest

d.   deal

e.   end-run sample

A popular NPR radio show encourages listeners to solve a puzzle each week.  If they have the correct answer and send it in to the show and theirs is chosen, they win a prize.  This is an example of a __________.

a.   premium

b.   sweepstakes

c.   deal

d.   contest

e.   trade promotion

Sales promotions that require participants to submit some kind of entry form but are purely games of chance requiring no analytical or creative effort by the consumer are referred to as

a.   premiums.

b.   rebates.

c.   deals.

d.   contests.

e.   sweepstakes.

For marketers, the primary objective of a sweepstakes is to

a.   generate store traffic.

b.   retaliate against competitors’ actions.

c.   encourage present customers to buy more and minimize brand-switching behavior.

d.   build goodwill.

e.   encourage retailer support.

A discount on each case of goods ordered during a specific period of time is referred to as a

a.   functional allowance.

b.   merchandise allowance.

c.   case allowance.

d.   finance allowance.

e.   manufacturer’s inducement.

A variation of the case allowance is the __________ approach, whereby retailers receive some amount of the product free based on the amount ordered, such as 1 case free for every 10 cases ordered.

a.   complementary

b.   harmonizing

c.   balancing

d.   free goods

e.   paired

A trade promotion that involves paying retailers for financing costs or financial losses associated with consumer sales promotions is referred to as a __________.

a.   finance allowance

b.   promotional allowance

c.   merchandise allowance

d.   case allowance

e.   failure fee

A trade promotion where the manufacturer gives a retailer a case allowance price for products in their warehouse, which prevents shelf stock from running down during the promotional period is referred to as a __________.

a.   level stock protection program

b.   floor stock protection program

c.   ceiling stock protection program

d.   ground stock protection program

e.   hedge stock protection program

A trade promotion which compensates retailers that transport orders from the manufacturer’s warehouse is referred to as a _________.

a.   carry allowance

b.   haulage allowance

c.   finance allowance

d.   case allowance

e.   freight allowance

Advertising programs in which a manufacturer pays a percentage of a retailer’s local advertising expense for advertising the manufacturer's products are referred to as

a.   trade promotion programs.

b.   consumer promotion programs.

c.   cooperative advertising programs.

d.   cause-related marketing programs

e.   shared-responsibility programs.

Cooperative advertising refers to

a.   advertising programs by which a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer's products.

b.   advertising programs by which a manufacturer pays for national ad distribution and the retailer pays for local advertising expense.

c.   advertising for all stores located in strip malls or other shared facilities financed as a part of their leasing fees.

d.   advertising paid for by multiple independent firms to promote a product class rather than an individual product or firm.

e.   advertising paid for by several unrelated firms to promote a worthy cause such as cancer research.

While reading the newspaper, Belinda noticed an advertisement containing a coupon from Bayer that is redeemable only at Target stores.  This ad is an example of

a.   cooperative advertising.

b.   co-branding.

c.   a finance allowance.

d.   a merchandise allowance.

e.   specialty advertising.

A hardware store owner placed an advertisement for Sylvania LED light bulbs in the local newspaper.  Sylvania provided the storeowner with several high-quality, camera-ready sample advertisements and  also paid 50 percent of the cost to place the ad in the paper.  Sylvania was using __________ to promote its products.

a.   strategic channel partnership

b.   cooperative advertising

c.   retail publicity

d.   reseller consumer promotion

e.   manufacturer incentive advertising

Publicity tools refer to

a.   methods of tying charitable contributions of a firm directly to the customer revenues produced through the promotion of one of its products.

b.   methods used to get a nonpersonal, directly paid presentation of a company or its products.

c.   short-term inducements of value offered to arouse interest in buying a product or service.

d.   methods of obtaining nonpersonal presentation of an organization, product, or service without direct cost.

e.   free space or time donated by the media.

Methods for obtaining nonpersonal presentation of an organization, product, or service without direct cost, such as news releases, news conferences, and public service announcements, are referred to as

a.   promotional tools.

b.   free advertising.

c.   public promotions.

d.   market-oriented promotions.

e.   publicity tools.

All of the following are publicity tools EXCEPT:

a.   high-visibility individuals.

b.   PSAs.

c.   news releases.

d.   contests.

e.   news conferences.

In planning and obtaining publicity, a frequently used tool is the __________, which is an announcement regarding changes in the company or the product line.

a.   trade announcement

b.   news release

c.   infomercial

d.   news conference

e.   public trade announcement

The objective of a __________ is to inform a newspaper, radio station, or other medium of an idea for a story.

a.   infomercial

b.   news flash

c.   news release

d.   news broadcast

e.   news summary

A printed or an e-mailed announcement sent to members of the business media from German pharmaceutical giant Bayer stating that it is looking for a buyer for its household insecticide business as part of its restructuring program is an example of which type of publicity tool?

a.   news release

b.   public trade announcement

c.   lobbying

d.   news conference

e.   event management

An announcement that German pharmaceutical giant Bayer is looking for a buyer for its household insecticide business as part of its restructuring program is an example of which type of publicity tool?

a.   lobbying

b.   events management

c.   disclosure statement

d.   news release

e.   public service announcement

A common publicity tool is the __________, where representatives of the media are all invited to an informational meeting and advance materials regarding the content are sent out in advance.

a.   infomercial

b.   news release

c.   news conference

d.   news flash

e.   news huddle

A news conference is a(n)

a.   announcement regarding changes in a company or product line.

b.   free space or time in a newspaper or on a broadcast medium.

c.   publicity tool that utilizes high-visibility individuals in lobbying activities.

d.   meeting of top news executives to decide advertising policy.

e.   an informational meeting to which representatives of the media are invited.

News conferences would most likely be used during which stage of a product’s life cycle?

a.   introductory

b.   harvest

c.   mature

d.   growth

e.   decline

When Stephen Elop, President, Microsoft Business Division, launched Office 2010 at an event in New York, representatives of the media were invited to attend.  The company announced the worldwide availability of Microsoft Office 2010, as well as Microsoft Visio 2010 and Microsoft Project 2010, for business customers worldwide.  This is an example of a ___________.

a.   news release

b.   news conference

c.   promotional giveaway

d.   PSA

e.   co-operative advertising

A publicity tool that is heavily relied on by nonprofit organizations, and which involves free space or time donated by the media, is referred to as a __________.

a.   public service announcement

b.   cooperative advertisement

c.   cause-related publicity

d.   news conference

e.   news release

During the 2010 winter immunization campaign, the Centers for Disease Control and Prevention used the media to encourage all Americans to get vaccinated against the seasonal flu virus.  This is an example of a __________, where the media donated free space and air time.

a.   news release

b.   news conference

c.   public service announcement

d.   cooperative advertising

e.   limited-service advertising

The increasing effort by advertising agencies, trade associations, and marketing associations to impose standards upon themselves that reflect the values of society is referred to as

a.   legislation.

b.   self-regulation.

c.   business practice.

d.   business ethics.

e.   government regulation.

Public watchdog groups are critical of ad campaigns for some video games that use sex appeals and glamorize violence.  How should an ad agency respond to these critics if it wishes to avoid the enactment of additional laws limiting its creativity?

a.   Express strong support for First Amendment freedom and stand its ground.

b.   Develop an infomercial for its product that is relevant, useful to its customer, and entertaining.

c.   Produce a public service announcement in support of its current, successful approach.

d.   Take advantage of the publicity and run the ads in question more frequently.

e.   Take steps toward self-regulation, imposing standards on its promotional activities that reflect the values of society.

When Google chose a new model for its advertising, it decided to

a.   show advertisements that were the exact opposite of a consumer’s profile to give the ads a higher awareness rate.

b.   randomize the time periods between ads and banners rather than use a steady schedule in order to keep the ads more noticeable.

c.   customize all advertisements to reflect customers’ preferences for color, music, and fonts based on information obtained from cookies.

d.   create a “quality score” to predict how effective an ad would be based on factors such as click-through rates, advertiser history, and keyword performance.

e.   create an “ad-option” page for consumers to create their own consumer profile— blocking out products and services they don’t want and selecting the products and services they do.

Google’s first search engine was called “__________.”

a.   Pack rat

b.   Back-Rub

c.   Rub-down

d.   Black eye

e.   elgoog

Google’s mission is

a.   to receive 20 billion inquiries each day.

b.   to be the first company to generate $100 billion in revenues every year.

c.   to be the most socially responsible company on earth.

d.   to obtain corporate sustainability by the year 2015.

e.   to organize the world’s information and make it universally accessible and useful.

Much of Google’s success is based on the ten guidelines of its corporate philosophy.  Guideline 1 states, “Focus on the __________ and all else will follow.”

a.   prize

b.   bottom line

c.   user

d.   seller

e.   brand

Much of Google’s success is based on the ten guidelines of its corporate philosophy.  Guideline 2 states, “It’s best to do __________ really, really well.”

a.   one thing

b.   everything

c.   whatever you love

d.   what you are afraid of

e.   your job

Much of Google’s success is based on the ten guidelines of its corporate philosophy.  Guideline 3 states, “Fast is better than __________.”

a.   last

b.   perfect

c.   slow

d.   accurate

e.   pretty fast

Much of Google’s success is based on the ten guidelines of its corporate philosophy.  Guideline 5 states, “You don’t need to __________ to need an answer.”

a.   be an Einstein

b.   ask a question

c.   be in need

d.   be at your desk

e.   be at your computer

Much of Google’s success is based on the ten guidelines of its corporate philosophy.  Guideline 6 states, “You can make money without __________.”

a.   an MBA

b.   doing evil

c.   compromising ethics

d.   cheating the other guy

e.   working 24/7

Much of Google’s success is based on the ten guidelines of its corporate philosophy.  Guideline 7 states, “There’s always more __________ out there.”

a.   information

b.   competition

c.   opportunity

d.   money to be made

e.   customers to serve

Much of Google’s success is based on the ten guidelines of its corporate philosophy.  Guideline 8 states, “The need for information _________.”

a.   is the next frontier

b.   is the power behind change

c.   is insatiable

d.   separates the winners from the losers

e.   crosses all borders

Much of Google’s success is based on the ten guidelines of its corporate philosophy.  Guideline 9 states, “You can be serious without __________.”

a.   having an attitude

b.   a PhD

c.   an MBA

d.   a suit

e.   losing your sense of humor

Much of Google’s success is based on the ten guidelines of its corporate philosophy.  Guideline 10 states, “__________ just isn’t good enough.”

a.   Second

b.   Satisfying customers

c.   Making money

d.   Beating Microsoft

e.   Great

Google generates revenue by offering __________ opportunities next to search results or on specific web pages.

a.   online advertising

b.   online sales promotion

c.   online banking

d.   online publicizing

e.   online public relations

Advantages of online advertising such as those offered through Google are that it is __________ and allows immediate assessment of its __________.

a.   objective; measurability

b.   measurable; effectiveness

c.   unbiased; impartiality

d.   detached; measurability

e.   independent; traceability

The online advertising market has grown from its initial focus on simple text ads to a much larger set of options.  There are five key categories of online advertising.  They are: search, __________, classified, referral, and e-mail.

a.   show

b.   track

c.   monitor

d.   explain

e.   display

Google is the dominant provider of online search requests and receives more than __________ of the search advertising revenue.

a.   30 percent

b.   40 percent

c.   50 percent

d.   60 percent

e.   70 percent   

Several improvements in technology and business practice tools contributed to Google’s success.  Google developed its patented __________ algorithm that evaluates the entire link structure of the Internet and uses the link structure to determine which pages are most important.

a.   PageLeaf

b.   PageFolio

c.   PageRank

d.   PageCall

e.   PageTag

Google developed two business practice tools __________ and __________ to (1) help advertisers create ads and (2) help content providers generate advertising revenue.

a.   AdWords; AdSense

b.   AdPage; AdSense

c.   AdLeaf; AdCall

d.   AdFolio; AdSummon

e.   AdRank; AdTag

To help advertisers place ads based on their search-engine results, Google developed an online tool called __________.

a.   AdPage

b.   AdLeaf

c.   AdRank

d.   AdWords

e.   AdRank

In the traditional advertising model, advertisers were charged using a __________ approach  Google transformed the traditional model to a model called __________ where an advertiser pays only when somebody actually clicks on the ad and is delivered to their website.

a.   cost per thousand occurrences; cost-per-clack

b.   cost per thousand incidences; cost-per-snap

c.   cost per thousand impressions; cost-per-click

d.   cost per thousand recurrences; cost-per-lead

e.   cost per thousand frequencies; cost-per-hit

Google’s __________ program was designed for website owners as a tool for placing ads next to their web page content rather than next to search results.

a.   AdPage

b.   AdLeaf

c.   AdWords

d.   AdRank

e.   AdSense

One of the tools Google is using to pursue its goal of increasing its display advertising business is called __________.

a.   AdPage

b.   AdSense

c.   AdRank

d.   AdWords

e.   AdSnap

Google purchased _________, an advertising exchange where websites put space up for auction and ad agencies bid to place ads for their clients.

a.   YouTube

b.   ClickBot

c.   eBay

d.   DoubleHit

e.   DoubleClick

The California Pistachio Growers Association has an ongoing ad campaign in which it encourages people to think of pistachios when they think of good times and good friends.  The ads ask readers to log onto www.pistachios.org to register to win 100 pounds of pistachios for a year plus a trip to California.  The association is using a __________ to measure the effectiveness of its ads.

a.   lottery

b.   contest

c.   premium

d.   sweepstakes

e.   deal

Bernina, a sewing machine manufacturer, has an ongoing ad campaign in which it encourages sewers to stop in to their local Bernina dealer to register to win a new sewing machine.  No purchase is necessary.  Bernina is using a __________ to measure the effectiveness of its ads.

a.   sweepstakes

b.   lottery

c.   contest

d.   premium

e.   deal

Sales promotions where the consumer is offered the product free or at a greatly reduced price are referred to as

a.   deals.

b.   rebates.

c.   samples.

d.   premiums

e.   discounts.

Sampling is an appropriate strategy for which type of products?

a.   products that are classified as shopping goods

b.   new products

c.   commodity products like salt, sugar, and baking soda

d.   products that are perishable

e.   products that are classified as specialty goods

Taco Bell introduced its new low-fat Border Lights fare by giving away 8 million free tacos and burritos in one day.  In this example, Taco Bell used a sales promotion technique called

a.   a self-liquidating premium.

b.   a special deal.

c.   a rebate.

d.   sampling.

e.   product placement.

When Allyn went to get his newspaper, he found the paper in a plastic bag along with a packet containing one dose of Alka-Seltzer Heartburn Relief medication.  In this example, which type of sales promotion is Alka-Seltzer using?

a.   a sample

b.   a deal

c.   a premium

d.   a point-of-purchase display

e.   a introductory offer

Michael Angelo’s Pepperoni Mini Calzones are easy-to-prepare snacks, but the manufacturer believes customers are not buying the product as predicted because they are unfamiliar with calzones.  The manufacturer is interested in employing a sales promotion technique that will communicate the ease of preparation and encourage customers to try the product.  Which method would it MOST LIKELY employ?

a.   Advertise on television showing a mother preparing the snack in less than 60 seconds in the microwave.

b.   Provide a premium to build customer goodwill by receiving reduced price merchandise.

c.   Create a sign with the simple preparation steps for display on grocers’ freezer doors where the product is shelved..

d.   Use a rebate to encourage customers to purchase the snack and increase customer confidence in the product.

e.   Use a demonstrator hired by the company to prepare the snack in a grocery store and offer cooked, bite-sized portions of the snack to shoppers.

A sales promotion designed to encourage and reward repeat purchases by acknowledging each purchase made by a consumer and offering a premium as purchases accumulate is referred to as

a.   a merchandise deal.

b.   product enhancement.

c.   a loyalty program.

d.   retail positioning.

e.   experiential decoding.

The most popular loyalty programs today are __________ reward programs.

a.   fast food

b.   airline travel

c.   hotel accommodations

d.   credit card

e.   grocery store items

A Taste of Greece, a restaurant chain that is known for its Extra Juicy Gyro sandwich, wants to encourage repeat purchases and create long-term customers.  Which sales promotion should it employ?

a.   a trading stamp program that allows buyers to earn free food after making ten purchases

b.   a two-for-the-price-of-one deal that is only offered on New Year’s Eve

c.   a coupon for a free soft drink with a Gyro purchase

d.   a game with food prizes

e.   free Extra Juicy Gyro samples at local fairs and concerts 

A sales promotion prominently displayed in a store aisle is called a(n) __________ display.

a.   seasonal

b.   automated

c.   interactive

d.   point-of-purchase

e.   product sampling

For marketers, the primary objective of a point-of-purchase display is to

a.   eliminate the need for any special pricing promotion.

b.   retaliate against competitors’ actions.

c.   encourage present customers to buy more; minimize brand-switching behavior.

d.   build business inventory.

e.   increase product trial and provide in-store support for other promotions.

A Nabisco display in the grocery store is designed to maximize the consumer’s attention to lunch box and after-school snacks and to provide storage for the products.  It is placed in a high-traffic area of the store.  This type of sales promotion is referred to as __________.

a.   a sample

b.   a freestanding insert

c.   a point-of-purchase display

d.   a premium

e.   a deal

Some studies estimate that __________ of a consumer’s buying decisions are made in the store.

a.   20%

b.   33%

c.   40%

d.   60%

e.   75%

Apple recently offered consumers a __________ of $100 when they purchased a computer and a printer.

a.   premium

b.   deal

c.   coupon

d.   rebate

e.   student incentive

The consumer sales promotion that involves the use of a brand-name product in a movie, television show, video, or a commercial for another product is referred to as __________.

a.   co-branding

b.   subliminal tie-in

c.   product placement

d.   partnership promotion

e.   product parallelism

Product placement refers to

a.   the consumer promotion that involves the use of a brand-name product in a movie, television show, video, or a commercial for another product.

b.   the relative value of a product’s physical location based on line-of-sight positioning on a retailer’s shelf.

c.   the placement of a brand-name product on retailers’ shelves or in showrooms based on the slotting fee paid by the manufacturer.

d.   the use of a brand-name product in a move, television show, or commercial without the manufacturer’s knowledge or permission, and without compensation.

e.   a variable fee paid by producers of movies, television products, or commercials to a manufacturer for the rights to use a product as a prop in one of their creative scenes.

After the release of the movie E.T., sales of Hershey’s Reese’s Pieces soared while Mars, the makers of M&M’s, regretted not permitting its product to be used in the film.  This is an example of _________.

a.   product continuity

b.   subsidized advertising

c.   subliminal direction

d.   reverse product placement

e.   product placement

In the film Runaway Bride, Julia Roberts boarded a FedEx truck.  Another actor gave voice to FedEx’s service guarantee, saying she will arrive “by 10 a.m. the next business day.”  This is an example of _________.

a.   product placement

b.   product continuity

c.   a deal

d.   subliminal advertising

e.   reverse product placement

7-Eleven rebranded 11 of its American stores and one Canadian store as “Kwik-E-Marts,” selling some real-life versions of products seen in episodes of The Simpsons, such as Buzz Cola and Krusty-O’s cereal.  This form of promotion is referred to as _________.

a.   a product placement

b.   product continuity

c.   a reverse product placement

d.   trade-oriented sales promotion

e.   subliminal advertising

Three common trade-oriented sales approaches are targeted uniquely to wholesalers, retailers, and distributers include: (1) allowances and discounts, (2) __________, and (3) training of distributor’s salesforce.

a.   reminder advertising

b.   cooperative advertising

c.   pioneering advertising

d.   competitive advertising

e.   comparative advertising

Trade promotions refer to

a.   promotions where charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products.

b.   methods used to get a nonpersonal, indirectly paid presentation of a company products.

c.   advertisements that show actual consumers using the product in a barter or countertrade situation.

d.   sales tools used to support a company’s advertising and personal selling directed to wholesalers, distributors, or retailers.

e.   sales promotions that are directed to ultimate consumers and are used to support advertising and personal selling.

Sales tools used to support a company’s advertising and personal selling directed to wholesalers, distributors, or retailers are referred to as

a.   trade-oriented sales promotions.

b.   consumer-oriented  promotions.

c.   reseller-oriented promotions.

d.   wholesaler-oriented promotions.

e.   retailer-oriented promotions.

A(n) __________ reimburses a retailer for extra in-store support or special featuring of a brand.

a.   organizational allowance

b.   case allowance

c.   finance allowance

d.   manufacturer’s inducement

e.   merchandise allowance

The reimbursement a retailer gives for extra in-store support or special featuring of a brand is referred to as a(n) __________.

a.   organizational allowance

b.   merchandise allowance

c.   case allowance

d.   finance allowance

e.   manufacturer’s inducement

 
Powered by