Question Question 1 General Motors runs magazine advertisements that encourage the purchase of Cadillac automobiles. This is an example of _

Question 1

1. General Motors runs magazine advertisements that encourage the purchase of Cadillac automobiles. This is an example of _____ advertising.

   		pioneering
   		circumstantial
   		product
   		advocacy
   		comparative

4 points 

Question 2

1. In an advertisement for Planters peanuts and trail mix, a peanut wearing a monocle and a top hat and called Mr. Peanut represents the product quality. Mr. Peanut appears in all of the advertisements for Planters. This is an example of how a company can use a _____ executional style.

   		product symbol
   		lifestyle
   		spokesperson
   		fantasy
   		scientific evidence

4 points 

Question 3

1. The advertising response function helps marketers:

   		create ads that will be noticed by consumers each time the ad runs
   		use their advertising budgets wisely
   		calculate the break-even points for each product being advertised
   		determine the reach and frequency of specific media
   		select an executional appeal appropriate to the product being advertised

4 points 

Question 4

1. LeBlanc’s Pecan CompanyBetty and Orville LeBlanc recently opened LeBlanc’s Pecan Company retail store. In addition to shelled and unshelled pecans, the Texas store sells pecan pies, tortes, fruitcakes, fudge, pralines, chocolate pecan bark, to homemade pecan ice cream toppings, and jams and jellies. At this time, there are no other stores of this type in the Houston area. The LeBlancs are considering developing an advertising campaign for their store focusing on its wide assortment of pecan-related products. Orville LeBlanc has drawn up a list of communication tasks the advertising must accomplish. He used the DAGMAR approach to draw up this list. The new ads feature Betty LeBlanc talking to customers about the store’s products. The ads have been placed on a local cable system.Refer to LeBlanc’s Pecan Company. The new campaign for the store is designed to stimulate demand for the LeBlanc’s new store, given that the store is in the introductory stage of the product life cycle. The campaign would be considered:

   		pioneering
   		comparative
   		institutional
   		exclusive
   		open-ended

4 points 

Question 5

1. Procter & Gamble’s ads for Head & Shoulders Intensive Solutions system designed to treat the symptoms of dandruff and seborrhea emphasize the brand name and how effectively it heals the scalp. In addition, its ads demonstrates how easy it is to use the system, which looks complicated but isn’t. This is an example of _____ advertising.

   		comparative
   		differentiational
   		pioneering
   		institutional
   		competitive

4 points 

Question 6

1. Golden VideoWhen Golden Video opened ten years ago in Long Island’s Suffolk County, it competed with only one or two other video stores within a five-mile radius. Today, there are eight stores within that radius, including two Blockbusters, each a half-mile away in different directions.There is little doubt that independently owned video stores are having a tough time competing with chains like Blockbuster, but many are finding their own special ways of surviving. Part of the solution has been in supplementary merchandise and services such as sports cards and camcorder rentals, or renting and selling the X-rated titles shunned by many chains. Lower rental fees also are prevalent among independents, but the key to success in the mom-and-pop businesses appears to be personalized service. Golden Video provides services like holding videos for its customers upon request, recommending titles, and helping parents to choose G-rated movies that they can watch with their children. To add value, Golden Video also sells comic books, sports cards, candy, and video accessories and provides repairs for VCR and DVD players at the store. With friendly and value-added services, Golden Video has boosted business in spite of the stiff competition.Refer to Golden Video. Blockbuster Video grants individuals the right to open a Blockbuster store through the use of a contractual arrangement. This suggests that Blockbuster is a:

   		freestanding store
   		franchise
   		cooperative
   		licensed outlet
   		chain with one ownership

4 points 

Question 7

1. General Nutrition Center, Uniglobe Travel, and Wendy’s are all examples of _____ because the franchisee buys the right to use the franchisor’s approach to doing business.

   		product and trade name franchisors
   		redistributor franchisors
   		business format franchisors
   		licensed franchisors
   		relationship franchisors

4 points 

Question 8

1. Geoff Hudson wants to open a specialty store to sell sports memorabilia and is considering locating it in a regional shopping mall. Before opening his new store, he needs to understand:

   		parking in malls is usually inadequate
   		the leases required by mall owners are usually inexpensive
   		the mall atmosphere and that of neighboring stores will help attract shoppers
   		his store could be the mall anchor
   		there is usually a problem with store image because malls have no unified image, as a shopping center does

4 points 

Question 9

1. Toy Lab is a small retailer where children can design and assemble toys from bins of brightly colored parts. Each child starts in the “Dream It” section of the store by drawing a picture of his or her toy on a large piece of paper. Then, the child moves to the “Pick Your Pieces” area of the store to select the parts he or she needs to create the toy. Finally, the child moves to the “Build It” area to assemble the colored parts on large tables and put the final toy in a special box. Toy Lab is part of a recent trend in retailing, which the text calls:

   		nonstore retailing
   		m-commerce
   		convenience retailing
   		e-business
   		adding interactivity

4 points 

Question 10

1. Passport Furniture is a manufacturer of fine home furnishings. It offers to share the costs (up to 5 percent of the amount of products purchased by the retailer) of advertising with any retailer that carries its line of furniture. Retailers who took advantage of this offer would use:

   		specialty promotion
   		cooperative advertising
   		comparative advertising
   		shared advertising
   		advertising advocacy

4 points 

Question 11

1. Comcast Cable mailed 15,000 small business owners in and around Denver a CD called 100+ Essential Web Sites for Small Business Owners that lists and links the top Web sites on improving retail sales. All of the businesses are prospects for Comcast’s cable-based service. Comcast hopes that recipients of the CD will view this as just one of many useful services Comcast can provide them. This CD is an example of:

   		a direct buyer program
   		an introductory premium
   		a sampling
   		a pull product
   		a push product

4 points 

Question 12

1. For which of the following products would its producer be more likely to choose personal selling rather than advertising or sales promotion to market it?

   		rosebushes
   		washing machine/dryer combo
   		snack food
   		cooking pot
   		romance novel

4 points 

Question 13

1. Why are many marketers shortening the time in which a coupon can be redeemed?

   		to track response rates
   		to increase introductory sales
   		to create a greater sense of urgency to redeem the coupon
   		to respond to claims that coupons adversely affect consumer behavior
   		to limit the use of on-pack coupons

4 points 

Question 14

1. As a manufacturer of ready-to-drink iced tea, Nestea sells a highly standardized product to consumers all over the United States. You would expect Nestea to rely on _____ to promote its product.

   		public relations
   		personal selling
   		advertising and sales promotion
   		publicity and direct marketing
   		product innovation

4 points 

Question 15

1. All salespeople who work for Lennox Industries are paid a percentage of their individual sales, and there is no guaranteed minimum pay. Lennox uses a(n) _____ plan.

   		combination pay
   		salary plus drawing account
   		hourly wage
   		straight commission
   		bonus

4 points 

Question 16

1. Channel conflict:

   		always has an adverse effect on the members of the channel
   		is not caused by ideological differences because such differences would prevent the members from ever operating as a channel
   		is often caused by an inability of some channel members to keep up with the changing times
   		can appear as either internal or external
   		does not occur when multiple distribution channels are used

4 points 

Question 17

1. Marketing channels perform all of the following logistical activities EXCEPT:

   		sorting
   		storing
   		grading
   		risk taking
   		assorting products into homogeneous or heterogeneous collections

4 points 

Question 18

1. The growers of Vidalia onions have determined that their chief priority for choosing a transportation mode within the United States is transit time. However, this must be tempered by practical cost considerations. In light of these considerations, Vidalia onion growers should use _____ to ship their onions.

   		railroads
   		motor carriers (trucks)
   		airplanes
   		water transportation
   		pipelines

4 points 

Question 19

1. Transactional channel functions include all of the following activities EXCEPT:

   		contacting buyers
   		promoting the products to be sold
   		taking the risks associated with product inventories
   		negotiating the sale
   		physical distribution and sorting

4 points 

Question 20

1. Husqvarna Viking manufactures sewing machines. The company carefully screens its dealers to ensure a quality dealer image and service ability. Only a few dealers are chosen in any single geographic area. This is an example of _____ distribution.

   		dual
   		intensive
   		exclusive
   		selective
   		controlled

4 points 

Question 21

1. To provide more delivery service to the consumer market, UPS created UPS stores. According to the AIDA model, to create attention for this more convenient and less expensive way to mail packages through UPS, its marketing department should have relied on which element of the promotional mix?

   		public relations
   		sales promotion
   		event sponsorship
   		personal selling
   		direct marketing

4 points 

Question 22

1. The various Survivor shows have been promoted through personal appearances by show participants, Web sites, and merchandise with the Survivor logo as well as print and broadcast advertising. To make sure that all of the promotional messages are coordinated, CBS (the network on which the show is broadcast) should use the:

   		integrated marketing communications approach
   		integrated communications management approach
   		AIDA concept
   		interpersonal and mass communications approach
   		coordinated market management approach

4 points 

Question 23

1. AmtrakAmtrak is taking the gloves off in advertisements and belittling its major competition, which is the airline shuttles. Amtrak’s new name for its Metroliner is The Smart Shuttle. Gone are ads that were inner-directed and sold the Metroliner on its leisurely pace. In their place are ads showing rapid shots of the sleek train and business executives conducting no-nonsense meetings “eyeball-to-eyeball.” The campaign, which includes television, radio, print, billboards, and posters in commuter railroad cars, targets business travelers, who, Amtrak says, incorrectly believe the train takes far longer than the airplane to travel between two cities. One television spot opens with a shot of airplanes stacked up in a tarmac traffic jam. Another shows a business traveler lumbering into the airport during a snowstorm. The announcer says, “Schedule a meeting. Take the shuttle. Then cross your fingers.” The poor soul looks up at the departure board and sees a row of “Canceled” signs. The announcer continues, “Schedule a meeting. Take the Metroliner. Then cross your legs.”Refer to Amtrak. Television, radio, print, and out-of-home media represent the _____ in the communication process used by Amtrak.

   		feedback loop
   		channel
   		encoder
   		receiver
   		communicator

4 points 

Question 24

1. Which of the following statements about the AIDA model is true?

   		The AIDA model explains why public relations is the most important element in the promotional mix.
   		Advertising is most effective at the purchase stage of the AIDA model.
   		Certain promotional tools are more effective at certain stages of the AIDA model.
   		Sales promotion is not helpful during the attention stage of the AIDA model.
   		The promotional mix should not be influenced by the AIDA model.

4 points 

Question 25

1. Entrepreneur Krissa Fernandes has developed flour made from ground almonds that she sells under the Platinum Nut brand for use in baking. Everyone who has baked with the new flour loves it, but she is having trouble getting potential consumers to the desire stage of the AIDA concept. Which of the following elements of the promotional mix would be most likely to move people to look for the product and buy it?

   		flyers placed under windshield wipers at crafts festivals
   		an article in local newspaper about entrepreneurs
   		increasing the number of stores carrying Platinum Nut
   		a $2-off coupon for a 5-pound bag of almond flour
   		a classified ad

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