Marketing Final Exam Practice Questions! Trivia
- 1.
Advertisements that focus on selling a product or service and which take three forms: (1) pioneering (or informational); (2) competitive (or persuasive); and (3) reminder are referred to as
- A.
Product advertisements
- B.
Service advertisements
- C.
Persuasive advertisements
- D.
Institutional advertisements
- E.
Cooperative advertisements
Correct Answer
A. Product advertisementsExplanation
Product advertisements are a type of advertisement that focuses on selling a product or service. They can take three forms: pioneering (or informational), competitive (or persuasive), and reminder. Pioneering advertisements aim to inform and educate consumers about a new product or service. Competitive advertisements aim to persuade consumers that their product or service is better than competitors. Reminder advertisements aim to remind consumers about a product or service they may have forgotten about. Therefore, the correct answer is product advertisements.Rate this question:
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- 2.
The first decision in developing an advertising program is to
- A.
Set a budget
- B.
State its mission
- C.
Identify the target audience
- D.
Select the appeal
- E.
Select the media
Correct Answer
C. Identify the target audienceExplanation
In developing an advertising program, the first decision is to identify the target audience. This is because understanding who the target audience is will help determine the most effective strategies and messages to reach and engage them. By identifying the target audience, advertisers can tailor their advertising efforts to resonate with the specific needs, interests, and preferences of that audience, ultimately increasing the chances of a successful advertising campaign.Rate this question:
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- 3.
The number of different people or households exposed to an advertisement is referred to as
- A.
Scope
- B.
Share
- C.
Reach
- D.
CPM
- E.
Rating
Correct Answer
C. ReachExplanation
The term "reach" refers to the number of different individuals or households that are exposed to an advertisement. It measures the total audience size and indicates the potential size of the target market that the ad reaches. Reach is an important metric in advertising as it helps determine the overall effectiveness and potential impact of an ad campaign.Rate this question:
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- 4.
A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value is referred to as
- A.
A widget
- B.
A product
- C.
A service
- D.
An idea
- E.
Merchandise
Correct Answer
B. A productExplanation
A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value is referred to as a product.Rate this question:
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- 5.
Convenience products refer to
- A.
Items that consumers will make special efforts to seek out and buy.
- B.
Items for which consumers compare several alternatives on criteria such as price, quality, or style.
- C.
Products consumers purchase frequently, conveniently, and with a minimum of shopping effort.
- D.
Ancillary products used to make other products work more efficiently.
- E.
Low-cost items for which there are numerous substitutes and generic equivalents.
Correct Answer
C. Products consumers purchase frequently, conveniently, and with a minimum of shopping effort.Explanation
Convenience products are items that consumers purchase frequently and with ease, requiring minimal shopping effort. These products are often readily available and do not require much consideration or comparison with alternatives. They are low-cost items that consumers can easily find and purchase without much effort or time investment.Rate this question:
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- 6.
In the new-product process, product ideas that survive the business analysis proceed to the _________ stage.
- A.
Market testing
- B.
Screening and evaluation
- C.
Business analysis
- D.
Development
- E.
Commercialization
Correct Answer
D. DevelopmentExplanation
After product ideas have undergone business analysis, they move on to the development stage. This is the phase where the product concept is transformed into a tangible product prototype or design. Development involves activities such as engineering, manufacturing, and testing to ensure that the product meets the desired specifications and quality standards. Once the product is successfully developed, it can then proceed to the next stages of market testing, screening and evaluation, and ultimately, commercialization.Rate this question:
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- 7.
Test marketing involves offering a product for sale
- A.
To random sample of people in the tope ten major cities of the U.S.
- B.
In as broad of geographic region as possible.
- C.
To consumers that are representative of the target market.
- D.
On a limited basis in a defined area.
- E.
Only on certain days of the week and hours of the day.
Correct Answer
D. On a limited basis in a defined area.Explanation
Test marketing involves offering a product for sale on a limited basis in a defined area. This means that the product is not available everywhere and is only sold in specific locations or regions. This allows the company to gather feedback and evaluate the market potential of the product before a full-scale launch. By limiting the availability of the product, the company can control costs and assess the demand and acceptance of the product in a smaller market segment. This approach helps in minimizing risks and making informed decisions about the product's viability and potential success in the broader market.Rate this question:
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- 8.
Xerox pioneered the first portable fax machine. In 1980, the price was $12,700. Xerox was using a(n) _________ strategy to help recover the cost of its research and development.
- A.
Penetration pricing
- B.
Cost-plus pricing
- C.
Target ROI pricing
- D.
Above-market pricing
- E.
Skimming pricing
Correct Answer
E. Skimming pricingExplanation
Xerox was using a skimming pricing strategy to help recover the cost of its research and development. Skimming pricing involves setting a high initial price for a new product in order to maximize profits from the early adopters who are willing to pay a premium. This strategy allows the company to recoup its investment quickly before gradually lowering the price to attract a wider customer base. Given that the portable fax machine was a groundbreaking innovation at the time, it makes sense for Xerox to adopt this strategy to capitalize on the initial demand and generate significant revenue.Rate this question:
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- 9.
Proctor and Gamble repositioned its Old Spice antiperspirant brand from a deodorant your grandfather might use to a strong, hip antiperspirant through commercials that showed the target market of 18 to 30 year old men advocating its use and through a money-back guarantee. P&G used this repositioning strategy with its Old Spice brand antiperspirant to
- A.
React to a competitor's position
- B.
Reach a new market
- C.
Catch a rising trend
- D.
Change the value offered
- E.
Diversify its product portfolio
Correct Answer
B. Reach a new marketExplanation
Proctor and Gamble repositioned its Old Spice antiperspirant brand from a deodorant your grandfather might use to a strong, hip antiperspirant through commercials that showed the target market of 18 to 30 year old men advocating its use and through a money-back guarantee. By doing so, P&G aimed to reach a new market. This strategy allowed them to target a younger demographic and expand their customer base beyond the older generation. The commercials and money-back guarantee helped to attract the attention and trust of the new market segment, ultimately enabling P&G to successfully reach and appeal to this previously untapped market.Rate this question:
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- 10.
When consumers consider all types of household cleaners, they are considering the ___________ of household cleaners. When consumers limit their choice of household cleaners to only those that come in spray bottles, they are considering a __________ of household cleaners.
- A.
Product class; product brand
- B.
Product group; product brand
- C.
Product line; product mix
- D.
Product mix; product line
- E.
Product class; product form
Correct Answer
E. Product class; product formExplanation
When consumers consider all types of household cleaners, they are considering the variety or range of household cleaners available in the market, which is referred to as the "product class." On the other hand, when consumers limit their choice to only household cleaners that come in spray bottles, they are considering a specific type or form of household cleaners, which is referred to as the "product form."Rate this question:
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- 11.
The price equation formula is final price equals list price minus incentives and allowances plus
- A.
Profits
- B.
Commissions
- C.
Trade-ins
- D.
Extra fees
- E.
Taxes
Correct Answer
D. Extra feesExplanation
The given formula for the price equation states that the final price is determined by subtracting incentives and allowances from the list price and then adding profits, commissions, trade-ins, extra fees, and taxes. Therefore, "extra fees" is a valid component of the formula and should be included in the calculation of the final price.Rate this question:
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- 12.
The ratio of perceived benefits to ___________ is referred to as value.
- A.
Price
- B.
Prestige
- C.
Perceived quality
- D.
Profits
- E.
Perceived cost
Correct Answer
A. PriceExplanation
The ratio of perceived benefits to price is referred to as value. This means that value is determined by the perceived benefits a consumer receives from a product or service in relation to its price. If the perceived benefits outweigh the price, then the value is considered high. On the other hand, if the price outweighs the perceived benefits, then the value is considered low. Therefore, price plays a crucial role in determining the value of a product or service.Rate this question:
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- 13.
Creative marketers engage in value-pricing, which is the practice of simultaneously increasing product and service benefits and
- A.
Increasing costs
- B.
Increasing price
- C.
Advertising more
- D.
Decreasing costs
- E.
Mainting or decreasing price
Correct Answer
E. Mainting or decreasing priceExplanation
Creative marketers engage in value-pricing, which means they focus on increasing the perceived value of their products or services while maintaining or decreasing the price. By doing so, they aim to attract customers by offering a better value proposition compared to their competitors. This strategy allows them to differentiate themselves in the market and potentially increase market share. By maintaining or decreasing the price, they also ensure that their offerings remain affordable and accessible to a wider range of customers, further enhancing their competitiveness.Rate this question:
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- 14.
The competitive market situation in which the few sellers are sensitive to one another's prices is referred to as
- A.
Pure monopoly
- B.
Oligopoly
- C.
Monopolistic competition
- D.
Pure competition
- E.
Oligopolistic competition
Correct Answer
B. OligopolyExplanation
An oligopoly is a market structure where there are a few sellers who dominate the market and are aware of each other's prices. In this situation, the actions of one seller can have a significant impact on the others. This leads to interdependence among the sellers and a high level of competition. Therefore, the given answer "oligopoly" accurately describes the competitive market situation where few sellers are sensitive to each other's prices.Rate this question:
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- 15.
Which of the following is a cost-oriented pricing method?
- A.
Standar markup pricing
- B.
Loss leader pricing
- C.
At-, above-, or below-market pricing
- D.
Price lining
- E.
Penetration pricing
Correct Answer
A. Standar markup pricingExplanation
Standard markup pricing is a cost-oriented pricing method because it involves adding a predetermined percentage or amount to the cost of a product to determine its selling price. This method ensures that the selling price covers the cost of production and includes a profit margin. It is commonly used in retail and wholesale businesses to determine the price at which products should be sold to customers.Rate this question:
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- 16.
Using __________, many retailers deliberately sell products below their normal pries (and sometimes below cost) to attract attention and induce additional store traffic.
- A.
Customary pricing
- B.
Below-marketing pricing
- C.
Loss-leader pricing
- D.
Prestige pricing
- E.
Penetration pricing
Correct Answer
C. Loss-leader pricingExplanation
Loss-leader pricing is a strategy used by retailers to sell products at a lower price than their normal prices, and sometimes even below cost, in order to attract attention and encourage more people to visit their store. This tactic aims to entice customers with the discounted item, with the hope that they will also purchase other products at regular prices, ultimately increasing overall sales and store traffic.Rate this question:
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- 17.
A flexible-price policy refers to
- A.
Setting the price of a line or products at a number of different specific pricing points.
- B.
Setting of prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item.
- C.
Setting different prices for products and services depending on individual buyers and purchase situations.
- D.
Deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well.
- E.
Adding a fixed percentage to the cost of all items in a specific product class.
Correct Answer
C. Setting different prices for products and services depending on individual buyers and purchase situations.Explanation
A flexible-price policy refers to setting different prices for products and services depending on individual buyers and purchase situations. This means that the company adjusts the prices based on factors such as customer preferences, demand, competition, and market conditions. By doing so, the company can maximize its profits and cater to the unique needs and willingness to pay of different customers. This approach allows for pricing strategies that are more targeted and adaptable, ultimately leading to better customer satisfaction and profitability.Rate this question:
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- 18.
Product-line pricing refers to
- A.
Setting the price of a line of products at a number of different specific pricing points.
- B.
Setting of prices for all items in a product line to cover the total cost and product a profit for the complete line, not necessarily for each of item.
- C.
Deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well.
- D.
Adding a fixed percentage to the costs of all items in a specific product class.
- E.
The marketing of two or more products in a single package.
Correct Answer
B. Setting of prices for all items in a product line to cover the total cost and product a profit for the complete line, not necessarily for each of item.Explanation
Product-line pricing refers to setting the price of a line of products at a number of different specific pricing points. This means that the prices of all items in a product line are strategically set to cover the total cost and generate a profit for the entire line, rather than focusing on each individual item. This allows for flexibility in pricing based on factors such as product features, target market, and competition. By setting different pricing points, businesses can cater to different customer segments and maximize profitability across the product line.Rate this question:
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- 19.
Intermediaries who perform a variety of distribution functions, including selling, maintaining inventories, extending credit, and so on are referred to as __________.
- A.
Dealers
- B.
Brokers
- C.
Retailers
- D.
Wholesalers
- E.
Distributors
Correct Answer
D. WholesalersExplanation
Wholesalers are intermediaries who play a crucial role in the distribution process. They perform various functions such as selling products to retailers, maintaining inventories, extending credit to buyers, and ensuring efficient delivery of goods. Unlike retailers who sell directly to consumers, wholesalers typically operate in the business-to-business (B2B) market, supplying goods to retailers or other businesses. Therefore, the correct answer is "wholesalers."Rate this question:
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- 20.
Creating product assortments from several sources to serve customers would be an example of a ___________ function.
- A.
Transactional
- B.
Logistical
- C.
Facilitating
- D.
Selling
- E.
Risk taking
Correct Answer
B. LogisticalExplanation
Creating product assortments from several sources to serve customers would be an example of a logistical function. This is because the logistical function involves the management and coordination of the movement of goods and materials from multiple sources to the customers. In this case, the process of creating product assortments involves sourcing products from different suppliers or sources and then organizing and delivering them to the customers efficiently.Rate this question:
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- 21.
Mail order selling, catalog sales, and telemarketing, are all examples of
- A.
Indirect channels
- B.
Direct marketing channels
- C.
Multi-marketing channels
- D.
Personal selling
- E.
Direct channels
Correct Answer
B. Direct marketing channelsExplanation
Direct marketing channels refer to the method of selling products or services directly to the customers without involving any intermediaries. In the case of mail order selling, catalog sales, and telemarketing, the companies directly reach out to the customers and promote their products or services. This allows them to have direct control over the marketing and sales process, enabling them to build a direct relationship with their customers. Hence, these examples fall under the category of direct marketing channels.Rate this question:
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- 22.
Vertical conflict refers to conflict that occurs between
- A.
Two members in the same level of a marketing channel
- B.
Two different levels in a marketing channel
- C.
Members of upper management who make the marketing channel decisions and lower management who must implement these decisions.
- D.
A firm's and its customers' goals.
- E.
Two products of the same product vying for the same distribution channel members.
Correct Answer
B. Two different levels in a marketing channelExplanation
Vertical conflict refers to conflict that occurs between two different levels in a marketing channel. This means that the conflict arises between members of the channel who are at different levels of the distribution process. These levels can include manufacturers, wholesalers, retailers, and other intermediaries involved in getting the product from the producer to the end consumer. Vertical conflict often arises due to disagreements over pricing, distribution territories, promotional efforts, or other aspects of the channel. Resolving vertical conflict requires effective communication, negotiation, and coordination between the different levels of the marketing channel.Rate this question:
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Nov 16, 2023Quiz Edited by
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May 04, 2015Quiz Created by
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