A direct channel is one where the product or service remains under the control of the company from production to customer. *

True

False

An example of noise in the communication process is a consumer who is listening to an advertisement on the radio while driving, and had to lower the sound volume when his phone rang, missing the rest of the ad. *

True

False

KIA introduced Picanto at a very low price; this is an example of market-penetration pricing. *

True

False

After acquiring knowledge about the new MacAir, Karim is convinced about the product. His conviction is the last step in the buyer readiness stage. *

True

False

The goal of advertising is to change the way buyers think or feel about the brand. *

True

False

One of the main reasons for Amazon’s success was that it was working closely with other firms in a larger value delivery network. *

True

False

One of the hardest decisions in the introduction stage is to set the price of a new product. *

True

False

Unilever produces a large number of Dove soaps, which are then bought by intermediaries such as Spinneys who buys them in large quantities and sells them to final customers. *

True

False

Gillette sells low priced razor sticks and makes money on the replacement blades cartridges. This is an example of optional pricing. *

True

False

Pepsi has long fielded comparative ads that take direct aim at rival Coca-Cola. *

True

False

In creating customer value, it is more important for a company to build relationships with downstream channel partners than with upstream supplier partners. *

True

False

The live chat icon found on many commercial websites allows an interactive chat between the customer and the company. This is a part of the personal communication channel. *

True

False

Pepsi coordinates the efforts of thousands of suppliers, bottlers, retailers and advertising agencies to create customer value and establish the brand’s positioning. *

True

False

Nadine, a Public Relations specialist for a regional chain of pharmacies, regularly contacts members of the local and statewide Media with information about community events and charity fundraisers sponsored by her company. This is an example of the press relations function of PR. *

True

False

The set of symbols that the new Master's nuts advertisement tried to transmit are considered as the decoding element in the communication process. *

True

False

Advertising is a new concept that can’t be traced back to the very beginnings of recorded history. *

True

False

Sohat water has two different packages: plastic and glass. The glass bottle is more expensive. This is an example of product form pricing strategy. *

True

False

“Heinz Ketchup is slow good” is an example of two-sided argument. *

True

False

More than any other department, PR has always been responsible for creating relevant marketing content that draws consumers to a brand rather than pushing messages out. *

True

False

The most important objective of reminder advertising is telling the market about a new product. *

True

False

Malik’s bookshop offers special reduced price on all items for students. This is an example of occasion pricing. *

True

False

In segmented pricing, customers in lower price tiers should be treated as second-class. *

True

False

Companies are not obliged to have a consistent, clear brand image throughout their communication elements. *

True

False

Black Friday is a special event that happens on the last Friday of November where all companies’ products are set on a massive sale. This is an example of customer-segmented pricing. *

True

False

If customers cannot judge the quality of a product, price becomes an important quality signal. *

True

False