Final Exam >> Introduction to Marketing

Final Exam >> Introduction to Marketing

1. Professor Kahn demonstrated the use of a Value Map. According to the Fair Value framework and to the lecture, what should companies try to do?

• Offer better than fair value on all three bundles.
• Offer fair value on all three bundles.
• Offer fair value on two bundles and offer better than fair value on the other bundle.

2. In the STP framework, what does “STP” stand for?

• Segmentation; targeting; pricing
• Sizing; tabulating; positioning
• Segmentation; targeting; positioning
• Sizing; targeting; pricing

3. The Gillette Sensitive portfolio (pictured below) “combines outstanding shaving performance and comfort to address the significant unmet need of 70% of men who say they have sensitive skin.” What is the point of difference in this positioning statement?

• Outstanding shaving performance and comfort
• Men with sensitive skin
• Other razors

4.In Nike’s brand mantra “Authentic Athletic Performance,” which of the three words is the emotional modifier?

• Performance
• Authentic
• Athletic

5. Disney, started by brothers Roy and Walt Disney, is one of the world’s most famous mass media corporations. What type of name is Disney?

• Surname
• Invented
• Blended
• Metaphor

6. In Professor Kahn’s lectures, she discussed the two axes of color. What were the two axes?

• Arousal & Affect
• Familiarity & Excitement
• Brightness & Warmth

7. Which color is most preferred by men and is known to curb appetite?

• Blue
• Green
• Black
• White

8. A lot of designer clothing companies will send free clothes to celebrities with hopes that the celebrities will wear their clothing in public and attract more customers to the brand. What mode of endorsement are these clothing companies trying to achieve?

• Co-present mode
• Implicit mode
• Explicit mode
• Imperative mode

9. The image below, which displays Nivea’s packaging since 1963, is an example of the ____________, which is when companies use tiny little tweaks to make sure their packaging and brand stay modern.

• Butterfly effect
• Just-noticeable difference
• Consumer packaged goods modernization theory

10. Due to massive customer heterogeneity, Professor Fader would say there’s more opportunity to “move the needle” via ___________ than ___________.

• Acquisition; development
• Retention; development
• Development; acquisition
• Retention; acquisition

11. Tesco and Harrahs rose to prominence in their industries by exploiting which “crack in product centricity”?

• Commoditization
• Innovation
• Customer-level tracking
• Globalization

12. In a customer-centric approach, which customers should you be most concerned with?

• The customers who are most engaged with your products/services
• The customers that have historically been most valuable
• The customers with the greatest degree of social influence
• The customers that are likely to be most valuable

13. When Joe was working in finance, he bought all of his suits at Macy’s, a department store. Once Macy’s finds out about Joe’s plans to return to business school, what customer-centric approach would Professor Fader recommend that Macy’s takes with Joe?

• Send a thank-you note to Joe to thank him for shopping at Macy’s for so many years
• Show Joe that he’s still important to them by extending a store discount to him that will apply during his time as a student
• Invite Joe into a VIP customer loyalty program once he graduates from school
• Give him incentives to refer his friends to Macy’s

14. Customer centricity requires zooming in on your important customers. As you do so, which of the following strategies do you want to focus on?

• Try to turn all of the less valuable customers into highly valuable ones
• Try to treat all of your customers equally well
• Drop the least valuable customers, so you can focus your resources on your most valuable customers
• Keep the less valuable customers because they provide stability and robustness to your customer mix

15. Sometimes at the hair salon, the receptionist will ask if you also want to get a manicure while you’re there. What is this an example of?

• Customer needs assessment
• Cross-selling
• Up-selling
• Customer referral program

16. In a product-centric company, rewards would be measured on metrics like all of the following EXCEPT:

• Percentage of revenue from products less than two years old
• Number of new products
• Share of wallet
• Market share

17. In a customer-centric company, sales bias is on the side of the ____________ in a transaction.

• Buyer
• Seller
• Broker
• Ultimate consumer

18. The thought process for a ________-centric company is “How many possible uses of this product?” The thought process for a ________-centric company is “What combination of products is best for this customer?”

• Product; product
• Product; customer
• Customer; customer
• Customer; product

19. Which of the following is NOT an example of basic analytics for pricing decisions?

• Margin/Contribution Analysis
• Incremental Expenditures Analysis
• Economic Value to the Customer
• Break-Even Analysis

20. Gloria owns a 100-acre property that needs to be mowed every week. Christopher mows the property for her at the cost of $20 per acre. John wants to mow Gloria’s lawn instead. According to Professor Raju’s analysis of Economic Value to the Customer, what price should John charge to persuade Gloria to hire him instead of Christopher? in switching her landscaper?

• More than $2000
• Exactly $2100
• Less than $2000
• Exactly $2000

21. John decides to charge a flat fee of $2000 for mowing any sized property. According to Professor Raju’s analysis of Economic Value to the Customer, who would be willing to pay more for John’s services than Christopher’s?

• Alan, who has a 200-acre property
• Carol, who lives in an area where property taxes are lower
• Betsy, who owns a mower
• Don, who has a 50-acre property

22. Which of the following is NOT a product that has predominantly digital attributes?

• A pair of socks you have purchased before
• A printer cartridge
• A new pair of running shoes
• A book

23. Horizontal Conflict is when there is conflict between _____ while Vertical Conflict is when there is conflict between _____.

• Manufacturer and Retailer / Retailer and Customer
• Retailers / Manufacturer and Retailer
• Retailers / Manufacturer and Customer
• Manufacturer and Retailer / Retailers

24. Which of the following is a non-digital attribute?

• Length of a book
• The fit of a pair of shoes
• Price
• Delivery time

25. According to Professor’s Bell lecture, changing which of the following had the greatest impact on operating profits?

• Fixed costs
• Volume
• Variable costs
• Price

26. Which of the following best represents the idea of price elasticity?

• If I drop volumes by 10%, by how much does the price adjust?
• If I raise the price by 1%, by how much does demand drop?
• If I drop the price by 1%, by how much does demand drop?
• If I raise volumes by 10%, by how much does the price adjust?

27. Which of the following is NOT one of the four inputs to the pricing process?

• Willingness to pay
• Marginal revenue
• Marginal cost
• Distributor margins
• Competitive pressures

28. Which of the following is not one of the 7Ms?

• Measurement
• Market
• Motivation
• Media strategy
• Mission
• Message content
• Message design
• Money

29. Toys “R” Us is the name of a major retailer that sells toys and other kids products. What type of name is Toys “R” Us?

• Blended
• Descriptive
• Arbitrary
• Metaphor
• Surname
• Altered
• Invented

30. Under the Elaboration Likelihood Model, a firm should only use central routing in their marketing messaging if customers have:

• The motivation to elaborate but NO ability to elaborate.
• The ability to elaborate but NO motivation to elaborate.
• The motivation to elaborate and the ability to elaborate.
• NO motivation to elaborate and NO ability to elaborate.

31. The tagline for Disneyland is “The Happiest Place on Earth.” What type of tagline is this?

• Descriptive
• Clever
• Superlative
• Provocative
• Imperative

32. In relation to the Elaboration Likelihood Model, Professor Kahn discussed the peripheral cues that people use to accept or reject messages. Which of the following is NOT one of the peripheral cues that she mentioned?

• Classic conditioning
• Consistency
• Logic
• Liking
• Social Proof
• Scarcity
• Authority
• Reciprocity

33. If a company has used a celebrity endorsement in an “imperative mode,” what message is the celebrity conveying?

• “I use this product.”
• “Everyone uses this product.”
• “I endorse this product.”
• “You should use this product.”

34. In her lecture, Professor Kahn discussed how difficult it was for Oldsmobile to reposition its automobiles among younger consumers. Perhaps they could have tried to evolve the Oldsmobile brand more gradually. All of the following are ways to evolve brands more gradually except for:

• Update the brand name to reflect evolving identities.
• Announcements: explaining to your customers that the brand will now be focusing on a different customer segment.
• Slogans, which are easier to change than names.
• Symbols: updating symbols can provide updates without changing meanings..
• New products, which can be true to the core identity but add modern, innovative elements.

35. How do you calculate Price Elasticity?

• By dividing the percentage of  Change in Demand by the percentage of Change in Price
• By dividing the percentage of Change in Price by absolute manufacturing costs
• By dividing the percentage of Change in Price by the percentage of Change in Demand
• By dividing the percentage of Change in Demand by gross profits

36. What are customer-centric companies required to do?

• Be willing and able to change their organizational design, performance metrics and incentive structures to focus on creating long-run customer value
• Be willing and able to change their performance metrics and incentive structures to focus on creating long-run customer value. Changing organizational design is not necessary.
• No significant organizational changes are necessary: they just have to adopt a customer-centric approach.
• Be willing and able to change their organizational design and performance metrics to focus on creating long-run customer value. Changing incentive structures is not necessary.

37. What do the acronyms of the AIDA Model stand for?

• Attention, Interest, Desire, Action
• Analysis, Implementation, Design, Achievement
• Attention, Interest, Design, Action
• Action, Imagination, Design, Attention

38. What is the definition of the Endowment Effect?

• Buyers compare the current price with a reference price
• A sense of ownership increases a customer’s willingness to pay
• Consumers react to prices in percentage terms as opposed to absolutes
• Consumers are more likely to purchase a product priced at $19.99 than $20

39. Understanding the process of perception is critical to understanding branding because:

• Perceptions affect subsequent behavior
• Similarity bias means people assume that things that look alike must have the same quality
• All answers are correct
• Brand names change people’s perceptions of products regardless of the quality of the product
• The proximity bias means that people assume that things that are close to each other must belong together
• No answers are correct

40. Which of the following factors does NOT reduce price sensitivity?

• When the user cannot differentiate between differences in quality
• Separation between the buyer and the payer
• Ease of comparison
• Separation in time between the point of purchase and the time of payment