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60 Multiple choice questions. Answer ALL questions in a separate answer-sheet provided.

1) The development of marketing programs that create interplay between consumers and businesses rather than simply sending messages to potential customers is: A) direct marketing B) interactive marketing C) viral marketing D) cross selling 2) Posting a firm's Web address on a shopping bag used to carry merchandise sold at a brickand-mortar store is a form of: A) brand reinforcement B) brand spiraling C) interactive marketing D) virtual marketing 3) The IT department can identify individuals who abandon the shopping cart just prior to checkout. An effective strategy for the marketing department would be to: A) send an e-mail to these individuals offering free shopping, a discount, or a simple reminder that they have items in the shopping basket B) turn the list of names over for a direct marketing campaign C) develop a viral marketing campaign with these individuals D) develop an interactive marketing campaign encouraging the individuals to generate customer reviews of the products placed in the shopping cart 4) Search engine optimization (SEO) is the process of: A) increasing the probability of a particular company's Web site emerging from a search B) maximizing paid search advertising C) finding the best words to maximize organic searches D) using a search engine as the front door to a company's Web site 5) Viral marketing is: A) the use of non-traditional media to promote a companies Web site B) a form of database marketing C) preparing a marketing message that is in some way passed on from one individual to another D) using a virus to spread a marketing message 6) The high usage of search engines to locate products, brands, and companies has led to changes in the Web design, primarily A) the use of Web analytics B) development of strong brand identity on the opening page of the Web site C) an increase in the number of payment options D) designing each page fully because individuals may be sent to any page on the Web page

7) The number of people, households, or businesses in a target market who are exposed to a media vehicle or message schedule at least once during a given time period is: A) reach B) frequency C) demographics D) impressions 8) Frequency is the: A) number of people, households, or businesses who are exposed to a media vehicle or message schedule at least once during a given time period B) number of people who place a particular brand into their evoked sets C) number of people who purchase the product D) average number of times an individual, household, or business in a target market is exposed to an advertisement during a specific time period 9) Multiplying a vehicle's rating times the number of insertions for an advertisement calculates the: A) cost per thousand (CPM) B) gross rating points (GRP) C) opportunities to see (OTS) D) reach and frequency 10) A company that advertises some all year round, but more during the holidays is using: A) a continuous campaign B) gross impressions C) a pulsating campaign D) a flighting campaign 11) Many advertisers doubt the three-exposure hypothesis primarily because of: A) the number of media now available to advertisers has increased substantially B) ad clutter C) the power of the Internet D) the synergistic effect of using multiple media in an advertising campaign 12) Effective frequency refers to the: A) number of times a target audience must be exposed to an ad for it to be effective B) percentage of the audience that must be exposed to an ad to achieve an objective C) percentage of the audience that has seen the ad a minimum of three times D) degree of selective attention given by the target audience relative to the objective 13) If the objective of an advertising campaign is to increase brand recognition, then the emphasis should be on: A) the visual presentation of the product and/or logo B) a high level of frequency C) using persuasive advertising D) using an emotional appeal

14) If the objective of an advertising campaign is to increase brand recall, then the emphasis should be on: A) the characteristics of the target market B) a high level of frequency C) a high level of reach D) both a high level of frequency and a high level of reach 15) Television offers the following advantages, except: A) low cost B) quality creative opportunities C) high frequency potential D) high intrusion value 16) When a company ties a marketing program to a charity, it is called: A) social activity B) charity outreach C) pure altruism D) cause-related marketing 17) The other name for buzz marketing is: A) general marketing B) word-of-mouth C) consumers reviews D) sales drive programs 18) The primary advantage radio has that is not available in the other mass media outlets is: A) low cost per contact B) intimacy C) long exposure duration D) highly targeted market segmentation 19) To counter the short exposure time and to take advantage of traffic jams in major cities, a new outdoor advertising methodology that has grown in popularity is: A) LED billboards B) global positioning systems C) mobile billboards D) urban billboards 20) Of the following media, the one that requires the longest lead time from ad development to ad appearance is: A) the Internet B) magazines C) newspapers D) billboards 21) Advertising in newspapers offers each of the following advantages, except: A) high flexibility B) high credibility
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C) long life D) longer copy or messages 22) A Millward Brown study revealed that ad awareness was strongest when consumers were exposed to an ad on television and in a magazine. Awareness was much lower for those who were exposed only to the magazine ad or only to the television ad. This illustrates the concept of: A) guerilla marketing B) media multiplier effect C) media synergy effect D) media mix phenomena 23) An effective database contains: A) all transactions a customer has with a firm and interactions that resulted in purchases B) all transactions and all interactions a customer has with a firm C) transactions and interactions of customers that have a high lifetime value D) all transactions of customers 24) Two common forms of database coding are: A) data mining and CRM analysis B) lifetime value analysis and RFM analysis C) lifetime value analysis and CRM analysis D) geocoding and data mining 25) In determining lifetime value, customer acquisition costs are determined by: A) dividing advertising costs by the number of customer transactions B) dividing the total marketing and advertising costs by the number of new customers C) dividing the total marketing and advertising costs by the number of total customers D) dividing the total marketing and advertising costs by the number of customers in the database 26) In RFM analysis, F refers to the: A) number of purchases within a specific time period, normally 1 year B) total expenditures a customer makes with a firm and is usually expressed in terms of "per year" C) date of the last purchase D) number of days since the last purchase with the company 27) The primary advantage of segmenting customers by lifetime value is: A) the opportunity to develop a different marketing program for each segment B) knowing how much each segment is worth C) its ability to increase sales and profits D) the opportunity to develop personalized communications with each customer 28) A company uses lifetime value to segment their customers into five different segments. The marketing approach that should be used for the lowest segments is: A) offer them price incentives B) reward them for their patronage C) reward them for their patronage and encourage them to spend more money with the firm D) encourage them to increase their purchase level so they can move up to the next highest
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group 29) Frequent flier miles in airline travel are a form of: A) direct marketing B) permission marketing C) frequency program D) ride-along program 30) Typical objectives for frequency programs include all of the following, except: A) maintain sales, margins, or profits B) attract new customers C) increase loyalty of existing customers D) preempt or match a competitor's frequency program 31) In purchasing a direct mailing list, a response list consists of individuals who have: A) met a specific demographic profile B) responded to previous direct mail offers made by the company purchasing the list C) made purchases or responded to direct mail offers in the past D) responded to a direct mail offer within the last 30 days 32) The reasons many CRM programs failed include all of the following, except: A) programs were implemented before a solid customer strategy was created B) companies failed to conduct lifetime value and RFM analysis prior to implementing the CRM program C) they were technology driven instead of customer driven D) customers felt "stalked" rather than "wooed" 33) In purchasing a direct mailing list, a compiled list consists of individuals who have: A) met a specific demographic profile B) responded to previous direct mail offers made by the company purchasing the list C) made purchases or responded to direct mail offers in the past D) responded to a direct mail offer within the last 30 days 34) A card pack is: A) telemarketing to a stack of cards containing prospects B) direct-marketing materials placed in mail-order fulfillment packages C) direct marketing materials containing business reply cards in a plastic pack D) a form of ride-along program 35) The least popular form of direct marketing is: A) e-mail B) direct mail C) inbound telemarketing D) outbound telemarketing 36) A toy placed inside a box of cereal is an example of a(n): A) bonus pack B) in-package premium C) store premium D) self-liquidating premium
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37) The following statements about premiums are true, except: A) premiums of higher quality lead to better response rates B) premiums should add value to a product C) premiums should reinforce the brand's image D) premiums should build short-term profits 38) Cash returns on hard goods, such as appliances and electronics, are called: A) refunds B) rebates C) bounce-back coupons D) premiums 39) Of the following consumer promotions, the best for encouraging consumers to try a new product is: A) coupons B) sampling C) premiums D) contests or sweepstakes 40) The following are reasons to use a bonus pack, except: A) develop customer loyalty B) attract new users C) enhance brand parity D) encourage brand switching 41) The type of consumer that responds best to coupons and premiums is: A) promotion-prone consumers B) brand-loyal consumers C) brand-image consumers D) price-sensitive consumers 42) Which of these can be used by retailers to always have one brand on sale while others are off-deal? A) forward buying B) calendar promotions C) corporate sales programs D) trade allowances 43) When provided with an offer of a 10% discount to purchase 10,000 electronic calculators within the next 30 days, Target buys 30,000 instead to take advantage of the price discount. Target will offer the calculator to consumers at a discount during the special sale, but then have additional calculators to sell when the sale is over. This is an example of: A) an off-invoice allowance B) cross-dock or pedal run allowance C) forward buying D) diversion

44) Manufacturers use each of the following arguments against paying slotting fees, except: A) they are a form of extortion B) the fees favor new companies C) manufacturers are forced to pay millions of dollars that could be used for advertising, sales promotions, and other marketing efforts D) the fees favor large manufacturers over small manufacturers 45) At a trade show, the most difficult buyer group for manufacturers to identify would be which group, because they don't want to be identified yet they are a very important group in terms of ability to make purchase decisions? A) solution seekers B) buying teams C) power buyers D) reinforcement seekers 46) Developing alternative media programs requires: A) strategic product placement and brand entertainment B) an investment in online advertising C) a large advertising budget D) creativity and imagination 47) In terms of buzz marketing, the most risky strategy is to use: A) consumers who truly like a brand and tell others B) consumers who like a brand and are sponsored by a company to tell others C) company employees to create a blog on the company's Web site about a brand and then invite consumers to participate D) company or agency employees posing as customers of the company telling others about the brand 48) Product placements and branded entertainment work because the primary goal is to: A) increase brand awareness and liking B) stimulate sales C) build brand power D) spur viewers to some type of action 49) An advantage to cinema advertising is: A) the ads are being shown to a captive audience B) there is very little clutter C) the ads promote products that relate to the movie D) movie goers pay more attention to the ads since they are waiting for the movie to start 50) Point-of-purchase displays work toward which activity? A) pull-demand strategy B) brand parity C) impulse buys D) reciprocation

51) An effective way of measuring the impact of point-of-purchase displays is to use: A) day-after redemption rates B) Internet focus groups C) point-of-sale (POS) cash register data D) behavioral observation studies 52) Of the internal stakeholders, the group that is the most critical to the success of a firm would be: A) shareholders B) employees C) the labor union D) customers 53) Cause-related marketing is based on the idea that : A) it enhances brand parity B) has a direct impact on sales and profits C) consumers are more likely to make purchases from companies that support a good cause D) social responsibility is a critical part of every company's operation 54) In terms of the public relations aspect of cause-related marketing, for companies to benefit the company should: A) make sure the public is always aware of any cause-related marketing they support B) spend some money to publicize causes, but the amount should not be significant C) not publicise causes because the public will think any effort to do so is shameless selfaggrandisement D) spend approximately 25 percent of whatever is given to a cause on publicizing the cause 55) In making the decision on how much emphasis a company should put on green marketing, managers should ask all of the following initial questions, except: A) will the company's current target market be alienated by adopting a green marketing approach B) how much profit will a green marketing approach generate for the company C) what percentage of the company's customer base fits into the green marketing segments D) can the brand or company be differentiated from the competition along green lines 56) When Tang noted in company commercials that the product was the official drink of NASA during the first moon landing, the proactive prevention strategy approach being used was: A) impression management B) crisis management C) enhancement D) entitling 57) Accepting blame for an event, offering an apology, or forcefully refuting the charges is: A) impression management B) crisis management C) an entitling D) an enhancement
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58) An apology strategy to manage a negative publicity situation should include each of the following elements, except: A) an expression of guilt B) a statement recognizing the inappropriate behavior C) acceptance of sanctions because of wrong behavior D) a statement about behaviors of the competition 59) Each of the following is an impression management technique, except: A) expression of innocence B) excuses C) justification D) entitlings 60) Sponsorships can be used to accomplish each of the following objectives, except: A) enhance a company's image B) increase a firm's visibility C) increase sales D) differentiate a company from its competitors

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