MKTG Final Exam Flashcards Part 3

T/F? Traditional marketing media offer a mass media method of interacting with consumers, whereas social media offer more one-to-one ways to meet consumers.​
True
T/F? One of the implications of social media for marketers is that they must realize that they often do not control the content on social media sites
True
T/F? In social media, negative comments and complaints can illuminate unknown brand flaws.​
True
T/F? The benefits of social media can be easily measured.​
False
T/F? According to Charlene Li and Josh Bernoff of Forrester Research, inactives are people who read blogs, listen to podcasts, watch videos, and generally consume media.​
False
T/F? A publicly accessible Web page that serves as an interactive journal is called a tweet.​
False
T/F? Corporate blogs are easy to maintain because they do not require in-depth writing or monitoring of comments.​
False
T/F? LinkedIn is designed to be more multimedia-rich rather than information-rich.​
False
T/F? Marketers find social news sites useful for creating conversations around relevant issues.​
True
T/F? Social news sites combine the fun of social networking with the utility of location-based GPS technology.​
False
T/F? Review sites lack the scope for two-way interaction between the marketers and consumers.​
False
T/F? Mobile marketing is an effective tool for gaining insight into consumer behavior.​
True
T/F? A social media plan should be monitored after it has been implemented because social media campaigns can be fluid.​
True
_____ is a subset of e-commerce that involves the interaction and user contribution aspects of social online media to assist online buying and selling of products and services.
Social Commerce
Which of the following statements is true of social commerce?​
A. Marketers cannot customize their offerings as per the needs of specific groups of consumers.
B. ​It relies on user-generated content on Web sites to assist consumers with purchases.
C. With social media, the employees of a firm are often in control of the message, the medium, and the response.
D. It does not offer consumers the scope to make informed decisions on purchases and services.
B. ​It relies on user-generated content on Web sites to assist consumers with purchases.
Which of the following changes has been brought about in advertising because of the influence of social media?
A. The number of ways in which marketers can have direct and meaningful conversations with customers has reduced.
B. The focus of social media has unavoidably shifted to manufacturers.
C. The interaction between producer and consumer has become less about engaging and more about entertaining.
D. The audience is often in control of the message, the medium, the response, or all three.
D. The audience is often in control of the message, the medium, the response, or all three.
Which of the following statements is true of crowdsourcing?​
A. ​It describes how the input of many people can be leveraged to make decisions that used to be based on the input of only a few people.
B. It describes how the level of buzz created for a product can be used as a measurable parameter for determining the product’s effectiveness.
C. It describes the methods in which a consumer should use a product or service.
D. It describes the need for consumers to buy a product and their willingness to buy it.
A. ​It describes how the input of many people can be leveraged to make decisions that used to be based on the input of only a few people.
Wennel Inc., an animal welfare organization, uses its Facebook page to advertise its products to veterinarians, cat food providers, and care takers. In this case, which of the following statements is true of Wennel Inc.?
A. Wennel Inc. is involved in crowdsourcing.
B. Wennel Inc. is engaged in one-to-many communication rather than many-to-many communication.
C. Wennel Inc. controls the message, the medium, and the response
D. Wennel Inc. forges deeper relationships and builds brand loyalty through social media
D. Wennel Inc. forges deeper relationships and builds brand loyalty through social media
In an interactive space, earned media include:​
viral videos
The first action a marketing team should take when initiating a social media campaign is:​
to establish a listening platform.
Which of the following processes is used in social media monitoring?
A. Personal selling
B. Crowdsourcing
C. Sentiment analysis
D. Cold calling
C. Sentiment analysis
Kelly’s Kitchen, a restaurant, strives to improve its customer service and makes sure that its customers enjoy the food and ambience at the restaurant. The restaurant has a team that monitors and assesses customers’ opinions about the restaurant on popular food review sites. This scenario illustrates _____.​
​social media monitoring
Which of the following statements is true of advertising in social media?​
A. Social media are an unpaid form of marketing.
B. The effectiveness of social media can be easily measured.
C. Social media mostly focus on deepening relationships with customers.
D. Marketers believe that social media are not a worthwhile investment.
C. Social media mostly focus on deepening relationships with customers
Social media measurements are meaningless if:​
they are not tied to key performance indicators.
Buzz, a social media metric, is based on:​
posts and impressions, by social channel, by stage in the purchase channel, by season, and by time of day.
_____, a social media metric, refers to media mentions, influences of bloggers reached, influences of customers reached, and second-degree reach based on social graphs.​
​Influence
According to Charlene Li and Josh Bernoff of Forrester Research, which of following categories of social media users posts comments, ratings, and reviews of products and services on blogs and forums?​
A. Critics
B. Spectators
C. Joiners
D. Inactives
A. Critics
Monette has posted over 100 book reviews on discussion forums. She also frequently reviews products and services and posts her reviews on local restaurants on review sites. As a social media user, Monette would best be characterized as a _____.​
Critic
According to Charlene Li and Josh Bernoff of Forrester Research, _____ are those who maintain a social networking profile and visit other sites.​
joiners
According to Charlene Li and Josh Bernoff of Forrester Research, _____ are those who read blogs, listen to podcasts, watch videos, and generally consume media
Spectators
Bethany follows several blogs every day and uses YouTube frequently to watch latest videos. She does not have her own Web site, and she almost never posts any comments on the sites she visits. She just enjoys reading and watching the content on popular sites. In this case, Bethany would be best characterized as a _____.​
spectator
_____ are independent and not associated with the marketing efforts of any particular company or brand.​
​Noncorporate blogs
Frank, a restaurant chain’s social media manager, wants to conduct an online contest to promote his restaurant. He conducts the contest on a social networking site that allows people to post only 140-character-long updates. In this context, Frank is using -_____ to conduct the contest.​
a microblog
Marla, a 55-year-old woman, wants to stay in touch with her son, who is away at college. She also hopes to connect with some of her high school friends. In this case, which of the following is Marla most likely to use for this purpose?​
A. SoundCloud
B. YouTube
C. Facebook
D. Flickr
C. Facebook
Magnira Corp. is an organization that manufactures clothing for women. It uses Facebook to promote its products. Given this information, which of the following is true of Magnira Corp.?​
A. It should not disclose the prices of its products and services to public.
B. Its pages are subject to search engine indexing
C. It is restricted from communicating directly with fans and interested stakeholders due to risks of hacking.
D. Its pages are considered individual profiles
B. Its pages are subject to search engine indexing
Twitpic, Flickr, and Photobucket are all examples of:
media sharing sites
A popular production house wants to release a teaser of one of its upcoming movies to create a buzz among public. Given this information, which of the following would be the best platform to be used by the production house?​
A. StumbleUpon
B. Photobucket
C. YouTube
D. Imgur
C. YouTube
Social bookmarking sites differ from social news sites in that:​
the objective of their users is to collect, save, and share interesting and valuable links.
Which of the following treats location-based micronetworking as a game?​
A. Facebook
B. Twitter
C. WordPress
D. FourSquare
D. FourSquare
_____ are Web sites that allow consumers to post, read, rate, and comment on opinions regarding all kinds of products and services.​
Review sites
Identify a true statement about online gaming.​
A. Massive multiplayer online games are called virtual worlds
B. It restricts marketers from engaging with customers
C. Many mobile games use mobile ads to generate revenue for the gamemakers.
D. Fantasy games are most appropriate for marketing than social and real-world-like games.
C. Many mobile games use mobile ads to generate revenue for the gamemakers.
Much of the growth in social media sites can be attributed to:
new platforms like tablets and smartphones.
Short message service (SMS) is different from multimedia messaging service (MMS) in that:​
SMS does not allow the attachment of images, videos, and ringtones to text messages, while MMS does.
Which of the following is included in the second stage of creating an effective social media plan?​
A. ​Listening to customers
B. Building relationships and awareness
C. Defining strategies
D. Identifying the target audience
B. Building relationships and awareness
Which of the following actions is performed during the final stage of an effective social media plan?
A. Setting objectives that can be specifically accomplished through social media
B. Examining trends and best practices in the industry
C. Listening to customers and understanding their expectations
D. Making changes to the implemented campaign based on consumer response
D. Making changes to the implemented campaign based on consumer response
T/F? To the consumer, price is the cost of something.​
False
T/F? Profit maximization means striving for profits that are satisfactory to the stockholders and management—in other words, a level of profits consistent with the level of risk an organization faces.​
False
T/F? Status quo pricing is a pricing objective that maintains existing prices or meets the competition’s prices.​
True
T/F? The greater the number of different uses for a product, the more inelastic demand tends to be.​
False
T/F? Dynamic pricing is most useful when the capacity of a product or service cannot be fixed well in advance
False
T/F? While break-even pricing is relatively simple, markup pricing uses more complicated concepts of cost.​
False
T/F? As products enter the growth stage of the product life cycle, prices generally begin to stabilize.​
True
T/F? Prices always steadily decline for a product in the decline stage of the product life cycle.​
False
T/F? During the maturity stage of product life cycle, distribution channels become a significant cost factor.​
True
T/F? Price matching is one of the ways to counter a competitor’s prices.​
True
T/F? When retailers stock exclusive versions of products that have similar specifications to ones carried in other stores but have different model or serial numbers, it facilitates price matching.​
False
T/F? An effective distribution network can sometimes overcome other minor flaws in the marketing mix.​
True
T/F? Adequate distribution for a new product can often be attained by offering a small profit margin to distributors.​
False
T/F? Extranets enable buyers to quickly and easily compare products and prices, putting them in a better bargaining position.​
True
T/F? Price is often used as a promotional tool to increase consumer interest.​
True
T/F? lack of price matching contributes to a low price image.​
False
T/F? Manufacturers find that their large customers such as department stores often make specific pricing demands that the suppliers must agree to.​
True
T/F? According to garment makers, the demands of large customers are nearly wiping out profits for all but the very large suppliers.​
True
T/F? Unlike a firm that launches a new item resembling several others already on the market, a firm that introduces a totally new product with no close substitutes will have no pricing freedom.​
False
T/F? Predatory pricing is illegal under the Sherman Act and the Federal Trade Commission Act
True
T/F? A rebate is a discount to wholesalers and retailers for performing channel functions.​
False
T/F? Psychological pricing is marketing two or more products in a single package for a special price.​
False
T/F? For businesses, consumer penalties are part of doing business in a highly competitive marketplace.​
True
At a local supermarket, Linda saw a box of plant fertilizer that was retailed at $25 but was marked down to $20.99. Given this information, $20.99 is the:​
price
To consumers, value is based upon:​
their perceived satisfaction.
At Fournotts, a retail corporation, Riya saw a box of collector’s edition comic books. Each book was priced at $28.50, but a customer who bought five of the books was required to pay only $19.99 for each book. Riya bought one book and her friend bought five books. In this case, Fournotts’ revenue from this purchase is _____.
$128.45
Consumers are more likely to perceive the value of a product to be less than its cost if:​
​in consumers’ minds, the product’s price is set too high.
For convenience, pricing objectives can be divided into three categories, which are:​
profit oriented, sales oriented, and status quo.
Profit-oriented pricing objectives include:
target return on investment
Diffusion Research Company specializes in conducting market research for various firms. When it receives proposal for a new research, its management first estimates the cost of conducting the research and delivering the final research report. The management, then, attempts to reduce the costs through efficient operations. It also tries to maximize revenue by satisfying its customers’ requirements.In this case, Diffusion Research Company uses a _____ pricing objective.​
profit-oriented
To increase the popularity of its new range of smartphones, GizmoPro Inc., a mobile phone manufacturer, offered several other products for free to customers who bought the smartphones. However, the management of GizmoPro Inc. soon found this to be an unsustainable practice. The company then decided to offer discounts on the products instead of giving them for free. These actions of the management of GizmoPro Inc. are aimed at:​
profit maximization.
Fresnas Designs Inc. is a company known for its quality interior decorations, customized service, and affordable prices. Given the high demand in the market for its service, the management of Fresnas Designs Inc. could price its products higher, but it prefers to price its products such that it will earn a reasonable revenue. In this case, the management of Fresnas Designs Inc. bases its pricing policy on:​
earning satisfactory profits
Return on investment (ROI) for a firm:​
measures management’s overall effectiveness in generating profits with the available assets.
Britney,a teenager, startsher own business of selling cupcakes to coffee shops and restaurants. She strives to increaseeither the market share in terms of the revenue generated or the number of cupcakes sold. This is an example of _____.​
sales-oriented pricing objective
Stone Restaurant, a newly opened restaurant, was unable to attract a lot of customers. Since the owner of the restaurant had to pay the loan amount that he had taken to start the restaurant, he decided to implement a strategy that would help him attract more customers. He offered about 20 percent discount on all the dishes on the menu on weekends. This strategy, he thought, would help him earn enough to be able to make the loan payment. In this case, the owner’s pricing objective can be classified as:​
sales maximization.
Unlike a firm that strives for market share, a firm with the objective of maximizing sales:​
ignores profits, competition, and the marketing environment as long as sales are rising
Identify a true statement about status quo pricing.​
A. It leads to optimal pricing of a product.
B. It requires serious planning and is difficult to implement.
C. It gives great importance to the demand and costs of a product.
D. It can lead to a pricing disaster.
D. It can lead to a pricing disaster.
At a price of $2,000 per unit, the demand for Ranger 60 mountain bikes from Cloyd’s Inc. is 300 units, which is same as the number of bikes manufactured every year. If the marketing managers at Cloyd’s Inc. decide to sell each bike at a price lower than $2,000 per unit, _____.​
a shortage of bikes will be created
_____ is the quantity of a product that will be offered to the market by a supplier at various prices for a specified period.​
​Supply
Inelastic demand is a situation in which:​
an increase or a decrease in price does not significantly affect the demand for a product.
Which of the following happens if demand is elastic?
A. As price goes up, consumer demand changes.
B. The competition between organizations reduces
C. There is no substitute for a product in such case.
D. Purchasing power of the consumer decreases.
A. As price goes up, consumer demand changes.
When there are many substitutes available for a particular product, consumers:​
can easily switch from one product to another.
Demand for a product will be inelastic if:
​its price is so low that it is an inconsequential part of an individual’s budget
Dynamic pricing is used to:​
adjust prices over time to maximize a company’s revenues
The managers at Click-to-Door, a giant e-commerce Web site, closely monitor its rival online retailers to analyze the prices at which they offer certain goods and how the consumers respond to the changes in prices. They use the results of this analysis to constantly change the priceson their Web site to maximize sales as well as profits. In this case, which of the following models of pricing does Click-to-Door follow?​
A. Comparative pricing
B. Dynamic pricing
C. Capacitive pricing
D. Dependent pricing
B. Dynamic pricing
Identify a true statement about yield management systems.​
A. They determine the availability of product substitutes in industries that are experiencing rapid change.
B. They use a software that employs techniques such as discounting early purchases and limiting early sales at these discounted prices.
C. They predict necessary service levels required to achieve revenue goals
D. They determine whether it is financially more feasible to buy a new product or repair a broken one.
B. They use a software that employs techniques such as discounting early purchases and limiting early sales at these discounted prices
Which of the following statements is true about yield management systems (YMS)?​
A. They are used to eliminate the problem of simultaneous production and consumption from services.
B. They are can be used only in service industries
C. They are complex pricing systems used to establish price equilibrium.
D. They are used to make profitable use of the unused capacity of perishable goods
D. They are used to make profitable use of the unused capacity of perishable goods
A cost that changes with the level of output is called a(n) _____.​
variable cost
_____ does not change as output is increased or decreased.​
Fixed cost
_____ is a method of determining what sales volume must be reached before total revenue equals total costs.​
Break-even analysis
Which of the following is a limitation of break-even analysis?​
A. It does not give an estimate of how much profit can be earned once the break-even point is obtained
B. It does not give weightage to the cost of labor that is incurred during production.
C. It is applicable only when the demand for a product is elastic
D. It is hard to determine which costs are fixed and which costs are variable
D. It is hard to determine which costs are fixed and which costs are variable
Which of the following is true of simple break-even analysis?
A. It ignores the selling price of a product.
B. It does not give weightage to the cost of labor that is incurred during production.
C. It is applicable only when the demand for a product is elastic.
D.​ It ignores the demand for a product.
D.​ It ignores the demand for a product.
Which of the following is true of products in the introductory stage of their life cycle?​
A. Their prices will rise dramatically as they move into the specialty goods category.
B. They experience price increases that are cost initiated.
C. Their prices are usually set high
D. They experience an elastic demand in the core of the market.
C. Their prices are usually set high
Adequate distribution for a new product can often be attained by:​
offering a larger-than-usual profit margin to distributors.
Which of the following statements is true about shopping bots?
A. The broad-based type of shopping bot searches for prices for only one type of product such as consumer electronics (CNET) or travel-related services (Kayak).
​B. They create opportunities for prestige pricing.
C. ​They search the Web for the best price for a product.
D. The niche-oriented shopping bot searches a wide range of product categories such as Google Shopping or Nextag.
C. ​They search the Web for the best price for a product.
Shopping bots theoretically give pricing power to:​
consumers
Unlike niche-oriented shopping bots, broad-based shopping bots:​
operate using a Yellow Pages type of model.
Which of the following is an impact of the Internet on consumers’ shopping behavior?​
A. The Internet auction business is likely to disappear in the future.
B. Consumer reviews on the Internet about various products tend to be equal in quality.
C. Business-to-business auctions are likely to be the dominant form of Internet auction in the future.
D. Extranets are programs that search the Internet for the best price for a particular product.
C. Business-to-business auctions are likely to be the dominant form of Internet auction in the future.
During off-season, the Rues Hotel offers a 25 percent reduction on its rooms to attract guests. Given this information, which of the following is illustrated in this scenario?​
A. The power of yield management systems
B. The advantage of markup pricing
C. The relationship between price and quality
D. The use of price as a promotional tool
D. The use of price as a promotional tool
Which of the following is true of price-quality relationships?​
A. Consumers perceive lowerpriced goods to be more long lasting than higherpriced goods.
B. Consumers believe that higher priced goods are manufactured with better quality of ingredients
C. Consumers lack information about the quality of lowerpriced goods due to poor advertising.
D. Consumer demands for higherpriced goods remain unchanged even if their quality declines.
B. Consumers believe that higher priced goods are manufactured with better quality of ingredients
The marketing manager of Rues Golf Club finds that the club can increase its market share and become the industry leader if it slashes membership prices by 50 percent during the first quarter of the year. However, the club cannot achieve its target return on investment if its slashes its membership prices during a quarter. This conflict illustrates:​
​the need for trade-offs in pricing objectives
_____ is sometimes called a “market-plus” approach to pricing because it denotes a high price relative to the prices of competing products.​
Price skimming
A price skimming strategy is most often used for a new product when
the product is perceived by the target market as having unique advantages.
_____ is a pricing policy whereby a firm charges a relatively low price for a product when it is first rolled out as a way to reach the mass market.​
Penetration pricing
Which of the following statements is true of unfair trade practice acts?​
A. They prohibit any firm from selling to two or more different buyers
B. Unfair trade practice lawsprevent oligopoly leaders from joining together and fixing prices at the highest rates that a market will allow.
C. They establish penalties for companies that engage in predatory pricing.
D. State enforcement of unfair trade practice laws has been lax partly because low prices benefit local consumers.
D. State enforcement of unfair trade practice laws has been lax partly because low prices benefit local consumers.
Firms that indulge in price fixing
​decide how much to charge for a product.
Univ Airlines and Mirago Airlines are two competing airlines. They make an agreement to charge customers a certain price for airfreight. This leads to the filing of several lawsuits against them by other airlines. In this case, Univ Airlines and Mirago Airlines can be charged under _____.​
the Sherman Act
_____ is the selling to two or more different buyers, within a reasonably short time, of commodities (not services) of like grade and quality at different prices where the result would be to substantially lessen competition.​
Price discrimination
Ava Lawnmowers Inc. is a company that manufactures and sells lawn mowers. Since it faces stiff competition in the market, it sells its products at different prices depending on the number of lawn movers purchased by the consumers.In this scenario, the company indulges in _____.​
price discrimination
When Lofonift Inc. introduced its flagship product, an MP3 player, it captured the MP3 player market by offering its product at the lowest price in the market. This gradually forced many of its competitors out of business. Once its competitors were out of business, Lofonift Inc. raised its prices. In this scenario, Lofonift Inc. most likely indulged in _____.​
predatory pricing
_____ is a price reduction offered to buyers buying in multiple units or above a specified dollar amount.​
quantity discount
A _____ is a price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a bill.​
cash discount
In _____,the seller pays all or part of the actual freight charges and does not pass them on to the buyer.​
​freight absorption pricing
_____ is a price tactic that charges freight costs from a given point, regardless of the city from which the goods are shipped.​
Basing-point pricing
99-Center Inc. is a retail store where all its merchandise is priced at 99 cents. This retailer uses a _____.​
single-price tactic
_____ is a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities.​
Flexible pricing
Which of the following statements is true of price lines?​
A. Buyers cannot be offered a wide variety of merchandise at each established price.
B. Price lines enable a seller to reach several market segments.
C. ​Firms have to carry a larger total inventory than it could without price lines.
D. Price lines are advantageous when costs rise continually
B. Price lines enable a seller to reach several market segments
_____ is a price tactic that tries to get consumers into a store through false or misleading price advertising and then uses high-pressure selling to persuade consumers to buy more expensive merchandise.​
Bait pricing
Unlike even-numbered prices, odd-numbered prices:​
connote a bargain.