31. Which of the following promotion tools involves building up a positive coporte image and handling unfavorable stories and events A) sales promotion B) personal selling C) direct marketing D) public relations E) advertising 32 Which of the following is true of a joint ownership in inemational venures A) The domestic firm exports management services ther than products B) Whereas local firms like to reinvest eamings for growth, may of the partering US firms often prefer to take out these eanings. C) Whereas U.S. firms emphasiae the role of marketing, local investeors may nely on selling D) The domestic company sells its trademark and ptent for a foe or royalty E) The domestic company is in total possession and control of the basiness 33. Eagle Eye, Inc is introducing its new type of specialized camer the X2RL, based on its newly patented superior technology. The peofit margin at its listed price is twice that of its competisors. The company is applying A) marketing-skimming pricing B) market-penetration pricing C) value-added pricing D) reference peicing E) promotional allowances 34. According to the "Privacy Promise to American Consumers" peogram, DMA members need to comply with which of the following consumer privacy nules? A) agree to notify customers when any personal information is rented, sold, or exchanged with odhers B) offer to register all customers in the National Do Not Call Registry C) make sure that consumers are adhering to the Children's Online Privacy Protection Act D) educate consumers on the Can Spam legislation E include the advertising option icon to let consumers know why they are being targeted 35. Offering a coupon with a limit on the number of items per customer offers all the following, EXCEPT A) Reaching larger number of new customers B) Offering a higher discount per purchased product unit C) More easily done with database marketing D) Favoring loyal customers over non loyal ones E) There is no exception A) macroenviroement B) microenvironment C) technological cevironment D) demographic environmont E) political environment 21. A company sent a brained obscrver te watch and inteact with consmers in their natural environments in order to gn dogpr imights on consumer needs This is an example of A) viral markesing B) survey research C)ehogphic research D) experimental neseanch E) niche marketing 22 When facing a stream of coreet rumors reganding a failure of a key components of its major product, the firm should positively advertise its product so reverse the momentum of its falling atitade h should hire a public relations company which should explain that the rumors are false c should admit the prodact failure, apologize, and state its commitment for caref lesting in onder to minimize future falure d. should engage in direct mobile marketing which uses blogs to create the buzz which will enables the opinicn leaders to promote intensive distribution e should engage in selling through direct mail and personal selling and tap into a new market by raising its prodact price to indicate the prestige of its product. 23 Five characteristics are important in influencing an innovation's rate of adontion Which of the following is NOT cne of those characteristics? A) relative advantage B) compatibility C) consumability D) complexity E) communicability VMS consists of independent firms at different levels of production and 24. A distribution who join together through formal agreements to obtain more economies or sales impact than cach could achieve alone A) corporate B) contingency C) contractual D) communal E) conventional 25. Regarding Promotion: A) A marketer employing EDLP usually employs Sales promotions to achieve its goals 1. T F Because of its voluntary exchange characteristic, in amarket economy. must provide superior product offers to some market segment(s). 2. TF In contrast with Intuit, Google's new product development has been best characterized as a Systematic New Product developer. 3. T F A vertical marketing system is one in which the producer is always the dominant member of the channel. 4. T F A profit maximizing marketer, relying on break-even analysis, should apply its product price, the highest product price possible at which the firm would break-even. At this price, the lowest break-even quantity is obtained. as 5. T F Chick Fil A's growth strategy is best characterized as a market penetration. 6. T F Manufacturer agents earna higher profit margin than that of wholesale merchants in underdeveloped countries, the Logistics share in the gross national product is 7.T F higher. 8. T F In marketing channels it is possible to replace the wholesaler or the retailer but none of their functions 9. T F Marketing scholars advocate applying the affordable budget approach in advertising budget planning as superior to other budgeting approaches. They reason that firms which spend more than they can afford on advertising make their product unaffordable for its potential consumers. FOpinion leaders survey the majority of the customers, and adopt the overall 10. judgment of the consumer population. Thus, their following purchases represent the consumer consensus. 11. T F During recessions most firms tend to increase their advertising budgets in order to attract consumers who otherwise would reduce their purchases. 12 T F Likert scale is used as a scale measuring degree of agreement with stated sentences regarding product attributes in attitude measurement studies 13. T F A breakdown of the firm's product mix into product lines is generally arbitrary and comes to allow better product management 14. T F Using value-based pricing, a marketer would not design a product and marketing program before setting the price. 15. T F The basic dilemma a marketer faces in international marketing is whether to standardize the product and its communication or to customize any or both. 16. T F Developing an isolated Fixer Upper and turning it into a distinguished mansion makes sense when the real estate developer can purchase the fixer upper at a very low price 17 to final consumers for their personal, non business use A) Sole sourcing B) Retailing C) Manufacturing D) Supplying E) Segmentation includes all the activities involved in selling products or services directly 18. The number of employees per wholesale establishment falls in which category/? A) 0-20 B) 20-40 C) 50-70 D) 70-90 E) None of the above 19. All the following are correct regarding the study of the field of consumer behavior as a focal integrated topic, EXCEPT A) The study was initiated by Franco Nicosia B) Its initiation was motivated by the pervasive use of the Internet and emerging of social networks. C) It is founded on borrowed findings from the basic Social Science disciplines. D) It is associated with the founding of ajournal called the Journal of Consumer Research E) It was critical in developing the Marketing Concept. 20. Dan has been directed to study the forces close to a company that affect its ability to serve its customers, such as the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. In this instance, Dan has been directed to study the of the company 12 T F Likert scale is used as a scale measuring degree of agreement with stated sentences regarding product attributes in attitude measurement studies 13. T F A breakdown of the firm's product mix into product lines is generally arbitrary and comes to allow better product management 14. T F Using value-based pricing, a marketer would not design a product and marketing program before setting the price. 15. T F The basic dilemma a marketer faces in international marketing is whether to standardize the product and its communication or to customize any or both. 16. T F Developing an isolated Fixer Upper and turning it into a distinguished mansion makes sense when the real estate developer can purchase the fixer upper at a very low price 17 to final consumers for their personal, non business use. A) Sole sourcing B) Retailing C) Manufacturing D) Supplying E) Segmentation includes all the activities involved in selling products or services directly 18. The number of employees per wholesale establishment falls in which category? A) 0-20 B) 20-40 C) 50-70 D) 70-90 E) None of the above 19. All the following are correct regarding the study of the field of consumer behavior as a focal integrated topic, EXCEPT A) The study was initiated by Franco Nicosia B) Its initiation was motivated by the pervasive use of the Internet and emerging of social networks. C) It is founded on borrowed findings from the basic Social Science disciplines D) It is associated with the founding of ajournal called the Journal of Consumer Research E) It was critical in developing the Marketing Concept. 20. Dan has been directed to study the forces close to a company that affect its ability to serve its customers, such as the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. In this instance, Dan has been directed to study the of the company 41. For which of the following products would the intensive distribution strategy most likely be used? A) high-end cameras B) luxury cars C) lawn mowers D) soft drinks E) furniture 42. The customers of Parry's Hair Salon have noticed that the quality of a haircut depends on who provides it as well as when, where, and how the service is provided. Which of the following characteristics of service is evident in this instance? A) service intangibility B) service inseparability C) service perishability D) service variability E) service distinction Which of the following Historical technological changes affected marketing. 43. statement is False? A) The development of Ford Model T led to a reduction in the importance of the mom and pop store and to the development of the supermarket B) The development of the Intemet led to change the promotion from broadcastingg to narrow casting C) The development of the train led to a rise in the power of the wholesalers and to the development of the department stores. D) The increase in the ability to develop individual consumer databases has increased the power of the manufacturer in the channel, E) The development of radio and television technology has shifled the promotion focus from Pull to Push and has led to an increase in the brand equity of national brands 44. Using the AIDA model, an effective marketing message should get attention, hold and obtain action. interest, A) create differences B) enhance doubts C) double interest levels D) arouse desire E) minimize dismay 45. Which of the following best explains why companies are adopting the team selling approach to service large, complex accounts? A) Products have become too complicated for one salesperson to handlea large company's needs