An internal management philosophy under which a company customizes its product and service offering based on data generated through interactions between customers and the company is termed _____.

a. preference-centric

b. profit-centric

c. family-centric

d. customer-centric

Answer: d. customer-centric

Unlike push money, trade allowance

a. seldom helps in sales promotion.

b. gives lower return on investment than push money.

c. involves offering customers coupons and rebates.

d. involves offering price reductions.

Answer: d. involves offering price reductions.

Which of the following is true of trade sales promotions carried out at business meetings and conventions?

a. Brands sponsor such events by offering coupons and rebates.

b. The cost per contact is much higher than in direct consumer sales.

c. Companies can test the market response to new products.

d. These events involve loyalty marketing programs.

Answer: c. Companies can test the market response to new products.

In a marketing environment, which of the following statements is true of a crisis management?

a. It involves responding to negative event placement.

b. It involves offering seminars on money management.

c. Managing publicity in a crisis situation is easy.

d. Spending large money on advertisements prevents crisis.

Answer: a. It involves responding to negative event placement.

_____ is the effort to capture media attention—for example, through articles or editorials in publications or through human-interest stories on radio or television programs.

a. Crisis management

b. Publicity

c. Audience selection

d. Flexibility

Answer: b. Publicity

Unlike newspaper advertising, in magazine advertising

a. the cost per contact is usually high.

b. the color capabilities are low.

c. the pass-along rate is low.

d. the advertiser commitment is short.

Answer: a. the cost per contact is usually high.

Which of the following advertising objectives correctly uses the Defining Advertising Goals for Measured Advertising Results approach?

a. Fuel On Inc. aims to achieve a 10 percent increase in the sales of its sports drinks among teenagers within 12 months.

b. Puddings and Desserts Inc. aims to boost the sales of its packaged confectionery division.

c. Krunch Cookies wants to entertain its customers with a humorous ad featuring children enjoying its products.

d. Décor Arts aims to use 10 ecofriendly methods to convey the message of keeping the environment clean.

Answer: a. Fuel On Inc. aims to achieve a 10 percent increase in the sales of its sports drinks among teenagers within 12 months.

Which of the following statements is true of advertising campaigns?

a. It can focus on more than one advertising appeal.

b. It circumvents the need for post-advertising evaluation.

c. It is the last stage of an advertising process.

d. It allows advertising for an indefinite period of time.

Answer: a. It can focus on more than one advertising appeal.

A(n) _____is a series of related ads focusing on a common theme, slogan, and set of advertising appeals.

a. media mix

b. unique selling proposition

c. advertising campaign

d. advertising protocol

Answer: c. advertising campaign

Which of the following is a difference between institutional advertising and product advertising?

a. Product advertising is an effective strategy for expressing views on controversial issues, whereas institutional advertising is effective in managing a crisis.

b. Product advertising is used to change negative consumer attitudes toward existing brands, whereas institutional advertising is used stimulate primary demand for new commodities.

c. Product advertising promotes the benefits of a specific good or service, whereas institutional advertising asks an audience to maintain a favorable attitude toward the advertiser.

d. Product advertising focuses on reinforcing positive attitudes toward a brand, whereas the goal of institution advertising is to create demand for a specific commodity.

Answer: c. Product advertising promotes the benefits of a specific good or service, whereas institutional advertising asks an audience to maintain a favorable attitude toward the advertiser.

Which of the following is true of the growth phase of the product life cycle?

a. Marketers provide in-depth information about products.

b. Firms use competitive or brand advertising.

c. Marketers create primary demand for a new product.

d. Pioneering advertisement is appropriate.

Answer: b. Firms use competitive or brand advertising.

_____ is typically used to safeguard against negative consumer attitudes and enhance a company's credibility among consumers who already favor its position.

a. Advocacy advertising

b. Pioneering advertising

c. Competitive advertising

d. Comparative advertising

Answer: a. Advocacy advertising

Unlike new brands with a small market share, brands with a large market share

a. need to penetrate consumers' perceptual defenses about a product choice.

b. can easily change consumers' deeply rooted values and attitudes.

c. only need to remind customers of their products rather than capture their attention.

d. spend proportionately more for advertising and sales promotion than new brands.

Answer: c. only need to remind customers of their products rather than capture their attention.

Which of the following statements is true about the effects of advertising on consumers?

a. Advertising cannot instill brand loyalty among customers.

b. Humorous ads are ineffective at shaping attitudes of customers.

c. Advertising reinforces positive attitudes toward brands.

d. Advertising can change consumers' deeply rooted values and attitudes

Answer: c. Advertising reinforces positive attitudes toward brands.

Which of the following best defines cost per contact?

a. It is the cost of promoting a product to one retailer.

b. It is the cost of publishing one advertisement in a newspaper.

c. It is the cost of promoting a product using a single promotional element.

d. It is the cost of reaching one member of the target market.

Answer: d. It is the cost of reaching one member of the target market.

Statements like: "Call now!" and "For a limited time only!" would be common during which stage of the AIDA model?

a. Action

b. Interest

c. Attention

d. Desire

Answer: a. Action

When competition is intense, typically during the growth stage of the product life cycle, it would be most appropriate to use which type of promotion?

a. Connection

b. Informative

c. Reminder

d. Persuasive

Answer: d. Persuasive

Which of the following is the objective of informative promotion?

a. To form relationships with potential customers through social media platforms

b. To stimulate interest in a new product

c. To keep the product and brand name in the public's mind

d. To stimulate a purchase or an action

Answer: b. To stimulate interest in a new product

Which of the following scenarios illustrates a marketer acting as a receiver?

a. A product developer conducts a survey among social media users before developing a new software application for them.

b. A salesperson listening as a customer explains the problems encountered with a recent purchase.

c. A public relations officer sends out a press release about his company's new line of microprocessors.

d. A customer service representative sends an e-mail to a client informing him about the scheduled delivery time of his purchased items.

Answer: b. A salesperson listening as a customer explains the problems encountered with a recent purchase.

Which of the following is a difference between business products and consumer products?

a. Business products are promoted mainly through advertising or social media, whereas consumer products are promoted and sold by a company representative.

b. Business products are well suited to mass promotion, whereas consumer products are well suited to methods such as personal selling.

c. Business products require the creation of brand familiarity during promotion, whereas consumer products do not require the creation of brand familiarity during promotion.

d. Business products are often custom-tailored to the buyer's exact specifications, whereas consumer products are not.

Answer: d. Business products are often custom-tailored to the buyer's exact specifications, whereas consumer products are not.