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Question 1 Which of the following presents the CLEAREST case for the failure of a product? A. price >perceived value>variable cost. B. price>variable cost>perceived value C. perceived value >price>variable cost. D. price=perceived value=variable cost E. none of the above Question 2 Internet sites are typically assessed by monitoring: A. hits. B. clickthroughs. C. unique hits. D. time spent per hit. E. all of the above Question 3 Trade promotions may seek to: A. increase stocking levels. B. increase sales levels. C. build relationships. D. any/all of the above E. none of the above Question 4 Loyalty programs work best when: A. they support and are consistent with the brand's value proposition. B. they add value to the product or service. C. lifetime customer value is high. D. all of the above E. none of the above Question 5 Customer satisfaction is a function of: A. pre-purchase expectations. B. post-purchase performance. C. how well the product is perceived to perform relative to its expected performance. D. all of the above E. none of the above Question 6 The MOST common objective of a consumer promotion is to: A. build customer loyalty. B. generate more short-term sales. C. introduce new products. D. support JIT programs. E. replace expensive advertising programs. Question 7 Customer satisfaction is a function of: A. perception. B. manufacturing processes. C. quality control. D. monopoly power. E. price. Question 8 The peripheral/low involvement/feeling route involves all of the following strategic advertising objectives EXCEPT: A. awareness. B. evaluation. C. intention. D. comprehension. E. arousal. Question 9 CRM programs are PRIMARILY concerned with creating: A. short-term profits. B. satisfaction. C. large market shares. D. immediate sales. E. all of the above Question 10 Mass customization may be accomplished through the use of: A. collaborative customizers. B. adaptive customizers. C. cosmetic customizers. D. transparent customizers. E. all of the above Question 11 The data in a CIF may come form: A. direct customer contact. B. distribution networks. C. warranty registration data. D. loyalty programs. E. all of the above Question 12 The MOST important factor to be monitored regarding existing/potential channels is: A. effort. B. profitability. C. support programs. D. quality level. E. personnel Question 13 Which of the following accounts for the largest percentage of marketing communications expenditures for consumer products? A. the internet B. print advertising C. television D. radio E. literature, coupons, POP Question 14 A CRM program may be assessed by measuring: A. customer acquisition costs. B. customer retention rates. C. customer profitability. D. customer conversion rates. E. any, or all, of the above Question 15 Customer promotions include: A. product-based promotions. B. place-based promotions. C. price-based promotions. D. premiums. E. all of the above Question 16 B to B product/services sales accounts for about ______________ percent of total direct marketing sales. A. 75 B. 25 C. 50 D. 35 E. 10 Question 17 The basic attributes of the product or service is the: A. augmented product. B. core product. C. expected product. D. intangible product. E. perceived product. Question 18 Cost has become the traditional basis for pricing because: A. of its simplicity. B. no firm can survive selling below cost. C. the data required is readily available. D. all of the above E. none of the above Question 19 All of the following statements about contractual/legal provisions are true EXCEPT: A. Such provisions guarantee coordination and control. B. These agreements are useful for setting expectations. C. These agreements are useful for delineating roles. D. Contracts assume that all conditions can be foreseen and specified clearly. E. It is assumed that specified behavior will be adhered to. Question 20 Channel members are likely to have significant bargaining power with the product manager if: A. the channel accounts for a large portion of total sales. B. the product is not well differentiated. C. the channel has low switching costs. D. the channel poses a real threat of backward integration. E. any/all of the above Question 21 The core of a CRM program is: A. computerization. B. a customer database. C. a customer segment. D. customer service. E. a proprietary process. Question 22 The product manager: A. should view the retailer as a needed ally. B. is successful only if retailers are successful. C. seeks to discourage the practice of forward buying. D. relies upon retailers for support and redemption. E. all of the above Question 23 It is generally believed that advertising: A. builds brand loyalty. B. decreased price sensitivity. C. is an investment. D. enhances consumer information E. all of the above Question 24 A CIF entry includes: A. customer identification. B. descriptors, purchase history, contact history, response information, customer value. C. time. D. all of the above E. none of the above Question 25 A high price can: A. reduce the quantity demanded. B. project a quality image. C. generate profits based on margin. D. increase the quantity demanded. E. any of the above Question 26 The MOST common type of "deal" used for grocery products is based on: A. features. B. price cuts. C. display. D. store coupons. E. manufacturer coupons Question 27 The practice of charging different prices to segments according to differences in the willingness/ability to pay is called: A. price sensitivity. B. price elasticity. C. price discrimination. D. demand elasticity. E. selective demand. Question 28 Outsourcing has been justified on the basis of: A. cost savings. B. enhanced use of employee time and company capital. C. increased productivity. D. enhanced technology. E. any/all of the above Question 29 In recent years, the balance of power in consumer product channels has increasingly favored: A. large manufacturers. B. large retailers. C. large wholesalers. D. large agents. E. large representatives Question 30 Sales promotion is likely to be emphasized if: A. the marketing budget is small. B. the product is a low-involvement, routine purchase. C. the goal is to induce short-term brand switching. D. all of the above E. none of the above Question 23 It is generally believed that advertising: A. builds brand loyalty. B. decreased price sensitivity. C. is an investment. D. enhances consumer information E. all of the above Question 24 A CIF entry includes: A. customer identification. B. descriptors, purchase history, contact history, response information, customer value. C. time. D. all of the above E. none of the above Question 25 A high price can: A. reduce the quantity demanded. B. project a quality image. C. generate profits based on margin. D. increase the quantity demanded. E. any of the above Question 26 The MOST common type of "deal" used for grocery products is based on: A. features. B. price cuts. C. display. D. store coupons. E. manufacturer coupons. Question 27 The practice of charging different prices to segments according to differences in the willingness/ability to pay is called: A. price sensitivity. B. price elasticity. C. price discrimination. D. demand elasticity. E. selective demand. Question 28 Outsourcing has been justified on the basis of: A. cost savings. B. enhanced use of employee time and company capital. C. increased productivity. D. enhanced technology. E. any/all of the above Question 29 In recent years, the balance of power in consumer product channels has increasingly favored: A. large manufacturers. B. large retailers. C. large wholesalers. D. large agents. E. large representatives Question 30 Sales promotion is likely to be emphasized if: A. the marketing budget is small. B. the product is a low-involvement, routine purchase. C. the goal is to induce short-term brand switching. D. all of the above E. none of the above Question 31 Price variations, or ________________, often exist WITHIN a targeted segment. A. price variation B. price bands C. price discrimination D. price elastics E. price segments. Question 32 In deciding which customers to keep or "fire", the marketer should consider: A. current profitability. B. future profitability. C. similarity of a customer to other, currently profitable customers. D. all of the above E. none of the above Question 33 Which of the following approaches to budgeting for advertising is MOST logical? A. percent of sales B. objective and task C. competitive parity D. affordable E. experimentation Question 34 Product managers can blunt the threat of a "power retailer" by: A. building/protecting the brand name. B. customizing products and promotions. C. investing in technology. D. cutting costs. E. any/all of the above Question 35 The choice between direct and indirect channels may be impacted by: A. the likelihood of future competition from a channel member. B. the locus of customer loyalty. C. the impact f information technology. D. all of the above E. none of the above Question 36 Channel arrangements should cover: A. service expectations. B. delivery expectations. C. return/allowance policy. D. degree of exclusivity. E. all of the above Question 37 Which of the following forms of promotion is aimed at generating immediate sales results? A. sales promotion B. television advertising C. print advertising D. radio advertising E. all of the above Question 38 According to __________________ theory, channel members--and the consumer will act in their own self-interest. A. ego B. sociological C. agency D. psychological E. relativity Question 39 Perhaps the best source of information for aid in improving customer loyalty can be gained from: A. the firm's most loyal customers. B. trade association data. C. customers who defected. D. competitor's customers. E. industry averages. Question 40 The possible channels that allow the consumer to have some contact with a company are called: A. contactpoints. B. sparkpoints. C. servicepoints. D. touchpoints. E. sales outlets.
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