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| 1.
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After watching the 30-minute infomercial on Oxy-Clean, Mariah was certain the cleaning product would remove the grape juice stain from her white carpet. In terms of the communication process, Mariah has engaged in: |
| | A) | lead generation. |
| | B) | receiving. |
| | C) | decoding. |
| | D) | messaging |
| | E) | encoding. |
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| 2.
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Welch Foods, Inc. ran an ad promoting its new Welch's fruit juice cocktails in Ladies' Home Journal magazine. The ad contained a coupon for $1.00 off the purchase price of two half-gallon containers of the drink. In terms of the communication process, the ad itself is: |
| | A) | a decoding device. |
| | B) | a channel of communication. |
| | C) | a receiver. |
| | D) | the message. |
| | E) | feedback. |
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| 3.
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Which of the following occurrences might be construed as noise? |
| | A) | The secretary interrupts the sales presentation just as the salesperson was ready to ask the buyer about her color preference. |
| | B) | The radio commercial gives the wrong address for the advertiser's store. |
| | C) | The salesperson tells the buyer that the software he is selling contains smart tags, and the customer does not understand. |
| | D) | Mack does not see the ad for the new Route 66 club because he is more interested in the news article on the opposite page. |
| | E) | All of the above could be construed as noise. |
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| 4.
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When Mike Clark and Jack Curry rate current movies for USA Today newspaper using a possible one to four star rating, it is an example of: |
| | A) | direct selling. |
| | B) | publicity. |
| | C) | advertising. |
| | D) | direct marketing. |
| | E) | personal selling. |
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| 5.
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An Associated Press wire story that employees of the Coca-Cola Company were bilked out of $200 million in overtime wages is an example of: |
| | A) | an inappropriate field of experience. |
| | B) | an article with little credibility. |
| | C) | a disadvantage associated with publicity. |
| | D) | how the hierarchy of effects affects consumer perception. |
| | E) | empathetic decoding. |
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| 6.
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Personal selling is: |
| | A) | a nonpersonal, indirectly paid presentation of an organization, service, or product. |
| | B) | a short-term inducement of value offered to arouse interest in buying a good or service. |
| | C) | the preferred method for placing nonpersonal promotions for a company and/or its products. |
| | D) | a paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor. |
| | E) | the two-way flow of communication between a buyer and a seller, designed to influence a person's or group's purchase decision. |
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| 7.
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Which of the following statements about sales promotion is true? |
| | A) | Sales promotion is the only promotional element that is not regulated by a federal agency. |
| | B) | A marketer that only uses sales promotions to create customer awareness of its products would be just as effective as one who used all the elements of the marketing mix. |
| | C) | Sales promotions are offered to both intermediaries and ultimate consumers. |
| | D) | To be most effective, sales promotions should be conducted continuously. |
| | E) | Sales promotions are considered strategic in nature because they have such a long-term effect on sales. |
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| 8.
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A small film company is releasing a documentary based on the war exploits of a group of Marines in Afghanistan. The company believes the credibility of its film is critical to its financial success. Which promotional element should it employ? |
| | A) | Invite military personnel to speak to local school children. |
| | B) | Use publicity. |
| | C) | Give away free medals to all movie attendees. |
| | D) | Use direct sales. |
| | E) | Send postcards to all people within a 25-mile radius of a theater showing the movie. |
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| 9.
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When considering promotions, there are three types of product characteristics that should receive special attention. They are risk, complexity, and: |
| | A) | tangibles. |
| | B) | quality. |
| | C) | price. |
| | D) | ancillary services. |
| | E) | demand. |
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| 10.
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With regard to a product for which a promotional mix is being developed, complexity: |
| | A) | refers to the degree of service or support required after the sale. |
| | B) | can be assessed in terms of financial risk, social risk, and physical risk. |
| | C) | refers to the technical sophistication of the product and hence the amount of understanding required to use it. |
| | D) | in a product means that there should be less emphasis on personal selling. |
| | E) | is irrelevant. |
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| 11.
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Like many consumer products manufacturers, Frito-Lay gives its resellers discounts to encourage them to carry and promote its products. When doing so, Frito-Lay uses a __________ strategy. |
| | A) | intensity |
| | B) | push |
| | C) | flexible |
| | D) | exclusive |
| | E) | pull |
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| 12.
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CoolMax Alta is a fabric made by Dupont. It is used in the manufacture of exercise clothes because it keeps the user "cool and dry." Ads for the fabric in the consumer magazine, Fitness, are most likely part of Dupont's __________ strategy. |
| | A) | gravity |
| | B) | distribution |
| | C) | push |
| | D) | inertia |
| | E) | pull |
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| 13.
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The second step in the hierarchy of effects in which the consumer has an increased desire to learn about the product is: |
| | A) | awareness |
| | B) | interest |
| | C) | evaluation |
| | D) | trial |
| | E) | adoption |
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| 14.
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The first step in the hierarchy of effects in which the consumer learns to recognize the product or brand name is: |
| | A) | trial. |
| | B) | evaluation. |
| | C) | interest. |
| | D) | awareness. |
| | E) | adoption. |
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| 15.
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Ann's father is undergoing chemotherapy treatment and complains about how tired he is. Ann feels bad because she thought there was nothing she could do to help him. When Ann saw the ad for Procrit, a drug that counters the energy draining effects of chemotherapy, in Ladies Home Journal magazine, she vowed to ask his doctor about this product on his next visit. At which stage in the hierarchy of effects is Ann? |
| | A) | She is the trial stage and will move to the interest stage soon. |
| | B) | She has moved quickly from the awareness stage to the interest stage. |
| | C) | She was in the consumer development stage and will more than likely move to the transition stage. |
| | D) | She is in the evaluation stage and will move to the interest stage soon. |
| | E) | She is in the interest stage first and them moved quickly to the diffusion stage. |
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| 16.
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Which of the following is the BEST example of a good objective for an advertising promotion? |
| | A) | to have 300 teenage boys request additional information within a month of running the ad |
| | B) | to have enough people respond to the ad so that our costs are covered |
| | C) | to have 50 homeowners buy our product at full price from each dealer in our national network |
| | D) | to have 100 school teachers respond in some way to our ad within 2 weeks of running it |
| | E) | to have people like our product enough to think about buying it |
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| 17.
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Which method of setting a promotion budget is based on the fallacy that sales cause promotion? |
| | A) | objective and task budgeting |
| | B) | all-you can-afford budgeting |
| | C) | competitive parity budgeting |
| | D) | salesforce composite budgeting |
| | E) | percentage of sales budgeting |
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| 18.
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Competitive parity budgeting is a budgeting method: |
| | A) | that allocates funds to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold. |
| | B) | that matches the competitor's absolute level of spending or the proportion per point of market share. |
| | C) | that allocates funds to promotion only after all other budget items are covered. |
| | D) | whereby the company determines its promotion objectives, outlines the tasks to accomplish these objectives, and determines the promotion cost of performing these tasks. |
| | E) | that allocates funds to promotion based on the greatest percentage of possible available revenue. |
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| 19.
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___________ is the outcome of an offer designed to motivate people to visit a business. |
| | A) | Direct order consignment |
| | B) | Lead generation |
| | C) | Traffic generation |
| | D) | Indirect order fulfillment |
| | E) | Follower generation. |
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| 20.
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Which direct marketing medium leads in terms of expenditures, sales, and employment? |
| | A) | direct mail and catalogs |
| | B) | telephone |
| | C) | television |
| | D) | online |
| | E) | advertising |
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