MKTG 350 Exam 3 Practice Test

According to the "5 Cs of Pricing" model, which of the following is NOT listed as a key factor influencing pricing decisions?

Communication

When a company like Costco sets its prices on clothing with a fixed rule of a 14% profit margin, what type of company objective is it primarily pursuing?

Profit-oriented

The "Demand curve" illustrates:

How many units are demanded at different prices.

If a 1 percent decrease in price results in a 1.1 percent increase in quantity demanded, the demand is considered:

Price elastic

For which of the following is demand likely to be least sensitive to price increases?

Prescription drugs

The change in the quantity of product A demanded in response to the percentage change in the price of product B is known as:

Cross-price elasticity

Which type of costs are unaffected by the volume of production, such as expenses for equipment and buildings?

Fixed Costs (FC)

Apple's strategy of releasing premium-priced products like the iPhone 15 Pro at a significantly higher starting price than many competitors is an example of:

Price skimming

"Place" in the marketing mix describes all activities necessary to:

Get the product to the right customer when the customer wants it.

The main goal of Just-In-Time (JIT) inventory systems is to:

Ship smaller quantities more frequently to ensure merchandise is available in the right quantities at the right locations at the right times.

A marketing channel that includes a wholesaler and a retailer between the manufacturer and the customer is classified as a:

Indirect Channel (Two Intermediaries)

A marketing channel where the product goes directly from the manufacturer to the customer is known as a:

Direct Channel

Conflict that arises between members at the same level of a marketing channel is called:

Horizontal Conflict

A disagreement between a manufacturer and a retailer is an example of:

Vertical Conflict

What distinguishes an Independent Marketing System from a Vertical Marketing System?

Each party attempts to satisfy its own goals and does not control the other party.

Apple directly managing manufacturing, warehousing, and Apple Stores is an example of which Vertical Marketing System?

Corporate Vertical Marketing System

When choosing retail partners, manufacturers must understand customer expectations by knowing:

Where their target customers expect to find the product.

Naked Juice distributing through supermarkets, convenience stores, and cafes is using:

Intensive distribution

What is considered the most important thing retailers do related to Product (one of the 6 Ps)?

Providing the right mix of merchandise and services.

Walmart's Great Value brand is an example of a:

Private-label brand (Store Brand)

Macy's pricing strategy of frequent sales with otherwise higher everyday prices is called:

High/Low Pricing strategy

Electronic shelf labels replacing paper price tags primarily change which of the 6 Ps?

Promotion

Using lighting, color, and music to influence shoppers is part of which additional P?

Presentation

Mastercard's experience center and signature scent focus on which additional P?

Presentation

A retailer operating only through a physical store with no online presence uses a:

Single Channel Strategy

The primary characteristic of an Omnichannel Strategy is:

Providing a seamless and integrated customer experience across all channels.

Sephora selling through stores, a website, and a mobile app exemplifies:

Omnichannel strategy

The main goal of Integrated Marketing Communications (IMC) is to:

Get the right message to the right audience through the right media.

Integrated Marketing Communications (IMC) aims to achieve:

Clarity, consistency, and maximum communication impact.

In the communication process, the transmitter:

Encodes the message.

The Dove Ad Controversy illustrates the challenge of:

Accurate encoding and decoding.

In the AIDA model, the first stage is:

Awareness

Asking consumers which fast-food brand comes to mind first measures:

Top-of-mind awareness

Moving a customer from "I LIKE" to "I WANT" occurs during which AIDA stage?

Desire

Encouraging consumers to write a review or refer a friend is an example of which AIDA outcome?

Behavioral changes

The "lagged effect" in marketing communications refers to:

A delayed response requiring multiple exposures.

Which IMC component is most visible and highly effective at creating awareness?

Advertising

A campaign encouraging people not to text and drive is focused on which AIDA stage?

Action

Advertising is defined as a:

Paid form of communication delivered through media about an organization, product, service, or idea designed to persuade the receiver.

A push strategy is primarily designed to:

Increase demand by focusing promotional efforts on wholesalers, retailers, and salespeople.

A pull strategy aims to:

Direct promotion to consumers to get them to demand the product, thus pulling it into the marketing channel.

Advertising that reminds consumers about a familiar product is called:

Reminder Advertising

A Unique Selling Proposition (USP) is:

A concise and compelling statement that differentiates a product and highlights its unique benefits.

An advertisement using facts and specifications to satisfy utilitarian needs uses which appeal?

Informational appeal

Weight Watchers Magazine is an example of:

Niche media

Pretesting is:

Assessments performed before an ad campaign is implemented to ensure it is working.

Tracking differs from post-testing because:

Tracking involves ongoing monitoring of key indicators during the campaign, while post-testing evaluates the campaign's impact after it has been implemented.

Public Relations is distinguished by generating:

Free media attention.

W Hotels partnering with Delta SkyMiles is an example of:

Cross-promotion

A Bounty ad emphasizing "2X more absorbent" and "USE LESS" uses which advertising appeal?

Informational appeal