JMU COB 300D McMillen Final Exam Study Guide (FALL 2025)

When considering GMROI in retailing, what result would be the most beneficial to the retail store conducing the study when considering their following data:

Peanut butter has a GMROI of 100%

Peanut butter has a GMROI of $100

Almond butter has a GMROI of 200%

Almond butter has a GMROI of $200

Cashew butter has a GMROI of $300

b.) Stock more Almond butter due to a GMROI of 200%

Odd-even pricing is most closely related to

e.) Customers' perceptions of price

From our examples in class, what typically provides power to a wholesaler in a channel?

b.) High sales

Items for which the consumer compares several alternatives on several criteria such as price, quality, or style and may move from store to store are referred to as ____________

d.) Shopping products

What type of print ad would be most effective at reaching a specific generational cohort?

d.) Reminder product

Calculate % mark ups based upon selling price given the following information:

Manufacturer Selling Price = $50

Wholesaler $ Mark up = 10

Retailer $ Mark up = 60

Manufacturer Cost = $25

What is the % markup taken by the retailer?

c.) 50%

how to solve:

1.) Add wholesaler markup to manufacturer price

→ 50 + 10 = 60

2.) Add retailer markup to find final selling price

→ 60 + 60 = 120

3.) Divide retailer markup by final selling price

→ 60 / 120 = 0.50

4.) Convert to percent

→ 50% ✅

The catalyst for transition from the production era into the sales era was due to:

d.) An oversupply of goods in the market

Which promotional technique, when used by companies, provides for the full 100% benefit to the company (i.e. they gain 100% of the benefit from the promotion in the form of increased sales) yet they only incur approximately 22% of the cost of to run the promotional campaign?

e.) Rebates

could be a.) not entirely sure

Major federal legislation passed to stem the problem of price discrimination in the United States was the

d.) Clayton Act

Promotion within the cash cow cell of the matrix would be?

d.) The most mixed and varied (companies will try almost any promotional technique) than in any other cell with the goal being to maintain market share

Which of the following statements describes a market penetration approach?

e.) Kline's ice cream now offers take home pints of ice cream in addition to their eat on site ice cream cones

could be a.) not entirely sure

In advertising, what comparison tool is useful to decide the costs between different types of ad campaigns using different forms of advertising?

c.) CPM

Utilizing a single marketing mix to reach a uniform (everyone in the market is viewed as the same) target market defines what targeting strategy?

c.) Undifferentiated

If Toyota has fixed costs of $100,000,000 for the manufacturer of its Prius and sells the car for $20,000 with 10% of the sales price taken away by the independent dealer, what is the breakeven point for the Toyota Prius?

c.) 5,556 cars

how to solve:

1.) Find dealer cut: 20,000 × 10% = 2,000

2.) Find Toyota's revenue per unit: 20,000 − 2,000 = 18,000

3.) Use breakeven formula: Breakeven = Fixed Costs / Revenue per Unit

4.) Plug in values: 100,000,000 / 18,000 = 5,555.55

You can't have 0.55 of a car, therefore the answer is c.) 5,556 cars

Which ad type would be MOST effective when displayed to the general population (not necessarily to a specific generation) but could trigger legal actions against the company that has displayed the ad?

c.) Comparative product

When a marketing researcher uses a collection of sales reports, customer letters, financial statements, and surveys from different departments within her firm, she is using

b.) Internal secondary data

A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can

c.) Increase sales and profitability

When P&G (Proctor and Gamble) 'started losing sales' to its own, newest version of 'Tide EVO' laundry detergent, they were dealing with the marketing phenomenon of

e.) Cannibalism

A different market segment usually requires a different marketing action that in turn means greater costs. If increased revenues don't offset extra costs of this action, a marketer should _________ to reduce the number of marketing actions.

a.) Combine segments

A company may choose a skimming strategy in the introduction stage of their new product in order to help recover costs of development and/or to

d.) Capitalize on the price insensitivity of early buyers

The old adage "birds of a feather flock together" relates to which type of segmentation approach used mainly by retailers and based upon where people reside by zip code?

e.) PRIZM

A marketing strategy is how a marketing goal is to be achieved. Two factors that usually characterize a marketing strategy and must be included in any strategy are

d.) A specified target market and a marketing program to reach it

'A rising tide floats all boats' refers to which cell in the BCG GROWTH SHARE matrix, the same cell under which competition will typically increase and differentiation must take place?

d.) Star

The allocation of most of the money generated from a Cash cow should be placed into which of the following positions? Select the best option for overall corporate growth and success!

e.) Into existing question marks and stars

How a customer interacts with a product can be considered what type of segmentation variable?

b.) Behavioristic

The Consumer Buying Decision process has five stages, what is the forth stage called, titled or named

e.) Purchase

When marketers at Benz Chocolate Company tried to determine demand for their product, they found that at $1.00 per jar, consumers wanted 2,000 jars and at $3.00 per jar, they wanted 6,000 jars, at $5.00 a jar they wanted 12,000 jars and at $9.00 a jar they wanted 2,000 jars. What can Benz conclude, if anything, from this information?

e.) Benz chocolate is a prestige good

Bekka makes a special trip to purchase her favorite thumb print cookies from the Giant Eagle grocery store. She makes this purchase to the exclusion of all other cookie options. What type of consumer good are these cookies to Bekka?

e.) Specialty

When a manufacturer is attempting to hold demand steady in the face of a short term rise in costs, what pricing strategy could they implement?

e.) Demand backward pricing

When HP first introduced its line of graphing calculators, it set the initial price at $299. Six months later, the price was reduced and changed to $199 and then reduced again after 2 years to $150. The pricing strategy used by HP over this full 2 year time period is called

d.) Price skimming

The classifications of innovator, early majority, laggards and such are all based upon

b.) When they begin using a new product

Under known circumstances and normal product identification, which answer most accurately describes the branding approach from the Kellogg's company?

a.) Multiproduct and multibranding approach

Mary Anderson operates a wedding preparation service that will aid brides-to-be in planning their weddings by providing needed equipment, supplies, and services. To maintain a quality image and a standardized offering Mary provides extensive training for each of her employees. What unique aspect of services is Mary trying to address?

d.) Inconsistency

Which of the following statements about price elasticity of demand most accurate?

c.) The more substitutes a product has, the more likely it is to be price elastic.

Forever Quilting is a small company that makes quilting kits priced at $120. The costs of the materials that go into each kit are $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising, and $4,500 for the monthly salary of its owner. Forever Quilting's unit variable cost for its kits is

a.) $50

All of the following factors affect pricing decisions except which one?

b.) Branding strategies

A big Mac is more expensive at the McDonalds in Manhattan than in Harrisonburg due to which pricing occurrence?

c.) Zone Pricing

Which of these is a pricing objective?

b.) Market share

What is one of the desired outcomes of backward vertical integration?

e.) Securing a scarce raw material

Of the following examples, which approach best represents MIXED branding?

d.) General Electric manufacturers both its own brand of GE dishwasher and another dishwasher branded with the KENMORE name.

Test marketing involves offering a product for sale

b.) On a limited basis in a defined area

When a manufacturer acquires a company that provides one of their many raw material suppliers in a buyout or takeover, it is typically called

d.) Backward vertical integration

When Billy goes to the grocery store and he already 'knows' in his mind which brands of gum he would buy then Billy is most likely accessing his ______ which are brand choices already established in his brain without the need for additional information.

d.) Evoked set

Which form of inter-modal transport would be implemented when given the following information:

Walmart in the USA has placed an order for Halloween costumes with their suppliers in Taiwan. This order was placed in early April for in store USA sales to begin during mid-September.

a.) Truck - Boat - Rail - Truck

From the list below, which type of ad tends to be the most effective?

e.) Product comparative

In retailing, if a retailer like Kroger loses sales of grocery items to Amazon and as a result, they decide to start selling hunting equipment in their stores to offset the loss of grocery sales, this is considered an example of

a.) Scrambled merchandising

The 5 elements of a print ad typically consist of the following?

d.) Picture, Headline, Sub headline, Body copy and signature

When running a sales promotion campaign, what type of products are being promoted when the sales promotion campaign yields the following results: Demand levels are flat and stable BEFORE the sales promotion runs, but then demand increases while the sales promotion is running but return to normal pre-existing stable levels once the promotion ends.

e.) Convenience products

What type of shopping center would have retailers like Home Depot, Best Buy and Lowes serving as it's anchor stores?

c.) Power

What is the known outcome or result of using the demand backward pricing strategy?

e.) Product downsizing